THE SOCIAL SECURITY ACT OF 1997  Self-employed persons, including, but

REPUBLIC ACT NO. 1161 not limited to following:

o Self-employed professionals;
The Social Security Law was enacted pursuant o Partners and single proprietors
to the policy of the State to establish, develop of businesses;
and promote a sound and viable tax-exempt o Actors, actresses, directors,
social security system suitable to the needs of scriptwriters, and news
the people throughout the Philippines and correspondents;
provide meaningful protection to members. It is o Professional athletes, coaches,
in full accord with the constitutional provisions trainers, and jockeys; and
on the “promotion of social justice to insure the o Individual farmers and
well-being and economic security of all the fishermen
people.”
I.B. EFFECTIVE DATE OF COVERAGE
The law provides employers to have 2 distinct a) Employers – on the first day of
obligations: operation
 To make a timely report of its b) Employees – on the first day of his
employees for coverage; and employment
 To make timely remittance of premiums c) Self-employed – upon his registration
with the SSS
CONSTRUCTION OF THE SOCIAL SECURITY LAW
The provisions of the law are to be liberally I.C. VOLUNTARY COVERAGE
construed in favor of those seeking its benefits.  Spouses who devote full time to
managing the household and family
THE SOCIAL SECURITY SYSTEM (SSS) affairs
The SSS is the implementing arm of the Social  Filipinos recruited for overseas
Security Act. It is a corporate body directed and employment by foreign-based
controlled by the Social Security Commission. employers

I. COVERAGE NOTE: Securing an SSS number does not

It used to be that, the coverage of the Social automatically make a person an SSS member.
Security Law is predicated on the existence of A member of SSS cannot withdraw his
an employer-employee relationship. This is no membership.
longer true because the policy now is to
encourage even the self-employed to become I.D. EMPLOYEES NOT COVERED
SSS members.  Purely casual employees;
 Employees serving on an alien vessel,
I.A. COMPULSORY COVERAGE when such vessel is outside of the
Coverage in the SSS is compulsory upon: Philippines;
 All employees not over 60 years of age  Employees of the Philippine
 All employers engaged in business in Government or any of its
the Philippines, including religious, instrumentalities and agencies;
charitable or non-profit institutions  Employees of foreign government,
 Domestic helpers subject to the international organization, and their
Kasambahay Law wholly-owned instrumentality;
 Aliens employed in the Philippines

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  Temporary employees, if excluded by
regulation of the Social Security
Commission (SSC)
II. BENEFITS
II.A. MATERNITY LEAVE BENEFIT
The maternity leave benefit is equivalent to
100% of the average daily salary credit
Procedure for availment:
a) The employee should notify her
employer of her pregnancy and the
probable date of her childbirth which
notice shall be transmitted to the SSS;
b) The employer shall advance the
payment within 30 days from the filing
of the maternity leave application; and
c) The SSS shall reimburse the employed
the amount paid upon receipt of
satisfactory proof of such payment and
legality thereof
Note: It can be availed of only for the first 4
deliveries or miscarriage. It cannot be availed of
simultaneously with sickness benefit.
II.B. SICKNESS BENEFIT
Sickness benefit is not payment or
reimbursement for hospitalization, medical
treatment or medicine. Rather they are daily
cash allowances to help carry through the
employee and his family during his
confinement. Sickness benefit is equivalent to
90% of the average daily salary credit payable
for each day of compensable confinement,
begins on the first day of sickness.
May be availed by an SSS member who:
a) has paid at least 3 monthly
contributions in the 12-month period
immediately preceding the semester of
sickness
b) was confined for more than 3 days in a
hospital or elsewhere with the approval
of the SSS; and
c) has exhausted the company sick leave
with pay, if any
Procedure for availment
a) The employee should notify his
employer of the fact of his sickness or
injury within 5 calendar days after the
start of his confinement
b) The employer shall advance the
sickness allowances and pay the
employee every regular payday
c) The SSS shall reimburse the amount
paid by the employer upon satisfactory
proof of payment and legality thereof
II.C. PERMANENT TOTAL DISABILITY
BENEFITS
Permanent total disability means disablement
to do the same or similar kind of work that the
SSS member was trained for and accustomed to
perform because of:
a) Complete loss of sight of both eyes;
b) Loss of two limbs at or above the ankle
or wrists;
c) Permanent complete paralysis of two
limbs;
d) Brain injury resulting in incurable
imbecility ot insanity; and
e) Such cases as determined and approved
by the SSS
Monthly Pension – available if the SSS member
has paid at least 36 monthly contributions prior
to the semester of disability.
Lump sum benefit – available if the SSS
member’s contribution is less than 36 monthly
contributions.
Effects of death of a permanently and totally
disabled pensioner:
 The primary beneficiaries as of the date
of the disability shall be entitled to
receive his monthly pension
 If he has no primary beneficiaries and
dies within sixty (60) months from the
start of his monthly pension, the
secondary beneficiaries shall be entitled
to a lump sum benefit
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II.D. Permanent Partial Disability Benefits
Permanent partial disability is a situation where
the employee is unable to continue with his
former work because of complete and
permanent loss of use of som anatomical part
of his body.
Percentage of the lump sum benefit – available
if the permanent partial disability occurs before
36 monthly contributions have been paid prior
to the semester of disability
Monthly pension – available if the permanent
partial disability occurs after 36 contributions
NOTE: Partial disability pension ceases upon
retirement or death.
II.E. RETIREMENT BENFITS
Retirement benefits under the Social Security
Act can be availed by the SSS member if he has:
a) reached the age of 60 or the
compulsory retirement age of 65 years;
b) already retired from service or ceased
to be self-employed;
Monthly pensions for as long as he lives –
available if the member has paid at least 120
monthly contributions prior to the semester of
his retirement
Lump sum benefit equal to the total
contributions paid by him and on his behalf – if
the member who retired at the age of 60 years
old has not paid at least 120 monthly
contributions prior to the semester of his
retirement
Effects if the retired member dies:
 His primary beneficiaries as of the date
of his retirement shall be entitled to
receive the monthly pension;
 If he has no beneficiaries and he dies
within 60 months from the start of his
monthly pension, his secondary
beneficiary shall be entitled to a lump
sum benefit equivalent to the total
monthly pensions corresponding to the
balance of the five-year guaranteed
period, excluding the dependents’
pension.
II.F. DEATH BENEFITS
II.G. FUNERAL BENEFITS
Funeral benefit is granted to help defray the
cost of funeral expenses of a member who dies,
including death of a permanently totally
disabled member or retiree. Funeral benefit is
Php 12,000.00 payable in cash or in kind.
III. BENEFICIARIES
III.A. PRIMARY BENEFICIARIES
a) The dependent spouse, until he or she
remarries; and
b) The dependent legitimate, legitimated
or legally adopted, and illegitimate
children
NOTE: The existence of both
legitimate/legitimated/legally adopted and
illegitimate children entitles the illegitimate
children to 50% of the share of the
legitimate/legitimated/legally adopted children.
In the absence of such, the illegitimate children
will be entitled to 100% of the benefits.
III.B. SECONDARY BENEFICIARIES
a) The dependent parents; or
b) Any other person designated by the
member as his secondary beneficiary
III.C. DEPENDENTS
a) The legal spouse entitled by law to
receive support from the member;
b) The legitimate, legitimated, legally
adopted, and illegitimate child who:
i. is unmarried; and
ii. has not reached 21 years of
age; or
iii. if over 21 years of age, he is
genitally incapacitated or while
still a minor has been
permanently incapacitated and
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 incapable of self-support,
physically or mentally;
c) The parent who is receiving regular
support from the member.

DEPENDENTS’ PENSION
This is granted to dependents in case of death,
permanent total disability or retirement of an
SSS member. The dependents’ pension is
equivalent to 10% of the monthly pension or
Php 250.00.