It is the policy of the State to establish, develop, promote, and perfect a sound

and viable tax-exempt social security system suitable to the needs of the people
throughout the Philippines which shall promote social justice and provide
meaningful protection to the members and their beneficiaries against hazards of
disability, sickness, maternity, old age, death and other contingencies resulting
in loss of income or financial burden. Towards this end, the State shall
endeavour to extend social security protection to workers and their
beneficiaries.
Section 2 of the Social Security Law (Republic Act No. 1161), as
amended by the Social Security Act of 1997 (Republic Act No. 8282),
The Social Security Act of 1997
RA 1161
(As amended by RA Nos, 1792, 2658,3839,4482, 4857,
PD Nos. 21, 177,347,735,1202, 1636,
Executive Orders Nos. 28. 102,
RA Nos. 7322 and 8282)
Sherylle Ong
VALIDITY
Legitimate exercise of police power
CONSTRUCTION
Liberally construed in favor of those seeking its
benefits
Not a law on Succession
Not the heirs of the EE
But the designated beneficiaries who are
entitled to receive the social security benefits

when the beneficiary is the estate, or
When there is no designated beneficiary , or
If the designation of the beneficiary is void

SSS is required to
pay the EEs heirs

Not part of the taxation system
It is not intended for raising revenues
But for the promotion of general welfare

Private Funds
Funds contributed are not public funds
Funds belong to members
Funds are merely held in trust by the Government

Roman Catholic Archbishop of Manila vs SSS
The inclusion of religious organizations under the
coverage of Social Security law does not violate the
constitutional prohibition against the application of
public funds for the use, benefit or support of any
priest who may be employed by the church
Compulsory Coverage Voluntary Coverage
All ERs engaged in business in the
Philippines, including religious, charitable
or non-profit institutions;
All EEs not over 60 years of age;
Domestic helpers receiving
P1,000/month;
Aliens employed in the Phil.;
Self- employed persons as may be
determined by the Commission including
but not limited to the following (Sec 9-A):
Self employed professionals
Partners and single proprietors
Actors and actresses directors,
scriptwriters and news
correspondents
Professional athletes, coaches,
trainers, and jockeys
Individual farmers and
fishermen
Spouses who devote full time to
managing the household and family affairs,
unless they are also engaged in other
vocation or employment which is subject
to mandatory coverage, may be covered
by the SSS on a voluntary basis.

Filipinos recruited by foreign based
employers for employment abroad may be
covered by the SSS on a voluntary basis

Employees separated from employment
may continue to pay contributions to
maintain his right to full benefits (Sec. 11)

Self-employed with no income (11-A)
COVERAGE
BY AGREEMENT:
Any foreign government, international
organization, or their wholly-owned
instrumentality employing workers in the
Philippines, may enter into an agreement with
the Philippine government for the inclusion of
such employees in the SSS except those
already covered by their respective civil
service retirement systems (Sec.8 (j (4).
Effective Date of
Coverage

Employer: It shall take effect on the first day of
his operation

Employee: On the day of his employment

Self-employed: It shall take effect upon his
registration with SSS
Employees not covered
by the SSS Law:
Purely casual EEs;
EEs serving on an alien vessel, when such vessel is
outside of the Philippines;
EEs of the Phil. Government or any of its
instrumentalities and agencies
EEs of foreign government, international
organization, and their wholly-owned
instrumentality;
Temporary EE, if excluded by regulation of the SSC

Obligations of ER
a) To make timely report of its employees for
coverage; and
b) To make timely remittance of the premiums:



Effect of non-reporting on non-remittance by the ER
EE
It shall not prejudice the right of the
covered EE to social security benefits
SSS will still pay the EEs corresponding
benefits

ER
Liable for damages equivalent to the benefits
the EE or his heir is entitled to receive
Criminally liable
3% monthly penalty from the date the
contribution falls due
Penalty is punitive in character
Good faith is not a defense
Obligations of ER
Lantaco vs Llamas

The ER is duty-bound to remit the contributions without the
need of any demand. Demand on the part of the EE before
the ER remits these contributions to the SSS is not a
condition precedent for such remittance. The SSS can collect
such contributions in the same manner as taxes are made
collectible under the National Internal Revenue Code:






Demand is not a condition precedent
Primacy of regular employment over
self-employment
Member is both an EE and Self-employed
He shall pay: contributions under both status






If combined contributions > maximum contributions
then, the excess shall be refunded accordingly to the
member.
The excess contributions to be refunded shall come from
the self-employed contributions
Contributions of
the Self-Employed

pays both the ERs and EEs contribution

Interruption of
business or
professional
income
Not required to pay contributions for that
month
Allowed to continue paying contributions
Retroactive payment of contributions is not
allowed






Obligation of ER and the EE to pay
contributions arising from that
employment ceases at the end of the
month of separation

Separation of
Employment
Social Security Benefits


a)Maternity leave benefits;
b)Sickness benefit;
c)Permanent disability benefits;
d)Retirement benefits;
e)Death benefits;
f) Funeral benefits;
who can avail
The maternity leave benefit is available to female SSS members who:
a.) has paid at least 3 monthly contribution
in the 12-month period immediately preceding the semester of her childbirth,
abortion or miscarriage
b.) gives birth or suffers miscarriage/abortion;
Amount of
Benefit
100% of Average Daily Salary Credit
Normal Delivery: 60 days
Caesarian Delivery: 78 days
Procedure:
1) EE should notify her ER:
pregnancy
probable date of her childbirth
-notice shall be transmitted to the SSS
2) ER shall advance payment
within 30 days from filing of maternity leave application
3) SSS shall reimburse the ER
the amount paid
upon receipt of satisfactory proof of such payment and legality thereof.
Limitations
-available only for the first 4 deliveries or miscarriage
-cannot be availed of simultaneously with sickness benefit
A daily cash allowance granted to a female member
who is unable to work due to childbirth or
miscarriage.
A daily cash allowance paid for the number of days a
member is unable to work due to sickness or injury.
not payment or reimbursement for hospitalization, medical treatment or medicine
who can avail The sickness benefit is available to an SSS member who:
a.) has paid at least 3 monthly contribution
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.
Amount of Benefit 90% of Average Daily Salary Credit
payable for each day of confinement or fraction thereof.
-compensable confinement begins on first day of sickness
A daily cash allowance paid for the number of days a
member is unable to work due to sickness or injury.
P
r
o
c
e
d
u
r
e
:

1)EE should notify ER of the fact of his sickness or injury
-within 5 days after the start of his
confinement
-after 5 days: confinement deemed to have started not earlier than the 5th day immediately preceding
the date of notification
-unemployed/self-employed SSS member : directly notify SSS within 5 days after the start thereof
-notice not necessary: (XPT from notification)
if the EE was confined in a hosp or
if EE became sick or was injured while working or within the premises of the ER
2) ER shall advance the sickness allowance and pay the EE every regular payday;
3) SSS shall reimburse ER
the amount paid by the ER
upon receipt of satisfactory proof of such payment and legality thereof.
-notice to SSS by ER: within 5 days from receipt of notification from EE
-after 5 days fr notice by EE: (ER delays notice to SSS)
ER shall be reimbursed only for each day of confinement
starting from the 10th calendar day immediately preceding the date of notification to the SSS
-SSS shall reimburse the ER only for the confinement within 1 yr period immediately the date of the
claim for reimbursement
XPT: confinement in hospital
in which case the claim for benefit or reimbursement must be filed within 1 year from the last day of
confinement
-SSS must reimburse within 2 months from claim of reimbursement
if ER does not receive the reimbursement within 1 month from prescribed 2 month period,
then reimbursement shall earn simple interest of 1% per month
A cash benefit granted either as a monthly pension or a
lumpsum amount to a member who becomes
permanently disabled, either partially or totally.
Permanent Total Disability - 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
c) permanent complete paralysis of two limbs;
d) brain injury resulting in incurable imbecility or insanity; and
e) such cases as determined and approved by the SSS
who can avail Monthly Pension Lump Sum Benefit
>=36 monthly contributions <36 monthly contributions
has paid at least 36 monthly contributions
prior to the semester of disability
contribution is less than 36
monthly contributions
Amount of Benefit Highest of the following amts: Which ever is higher:
1 1
sum of the ff: monthly pension x no. paid
contributions P300
20% of Ave. Mo. Sal. Credit 2
2% of AMSC for each credited year of service
in excess of 10 yrs
monthly pension x 12
2
40% of the AMSC
3
P1,000
p
e
n
s
i
o
n

s
h
a
l
l

b
e

s
u
s
p
e
n
d
e
d
:

Monthly Pension Lump Sum Benefit
1) re-employment or resumption of self-
employment
If re-employed or has resumed
self-employment
2) recovery -shall be again subject to
compulsory coverage 3) failure to undergo examination at least
once a year upon notice by the SSS -shall be considered a new
member
Effect of Death of a Permanently and totally disabled pensioner:
a) if the P/T disabled person pensioner dies,
the primary beneficiaries
as of date of the disability
shall be entitled to receive his monthly pension
b) if the P/T disabled person has no primary beneficiary and
he dies within 60 months from the start of his monthly pension,
the secondary beneificiary shall be entitled to a lump sum benefit
*lump sum benefit
mo. pension corresponding to the balance of the 5 year guaranteed period
excluding dependents pension
Permanent Partial Disability - is a situation where the EE is unable to
continue with his former work because of complete and permanent
loss of use of the following anatomical part of his body:
one little finger 3 mos one big toe 6 one ear 10
one ring finger 5 loss of hearing in one ear 10
one middle finger 6
one index finger 8
one thumb 10
one hand 39 one foot 31 both ears 20 Loss of sight of one eye 25
one arm 50 one leg 46 loss of hearing of both ears 50
Monthly Pension Percentage of Lump Sum Benefit
if PPD occurs after 36 monthly contribution have
been paid prior to the semester of disability
if PPD occurs before 36 monthly contributions have been paid
prior to the semester of disability
*monthly pension benefit for PPD will be given in lump sum
if it is payable in less than 12 months
*Partial Disablity pension ceases upon:
retirement or
death
A cash benefit granted either as a monthly
pension or a lumpsum amount to a member
who can no longer work due to old age.
w
h
o

c
a
n

a
v
a
i
l

The retirement benefit under the Social Security can can be availed of by the SSS member if he has:
a) reached the age of 60 years or the compulsory retirement age of 65 years; and
b) already retired from service or ceased to be self-employed
Monthly pension for as long as he lives Lump sum benefit
available if the member has paid at least 120 monthly
contributions prior to the semester of his retirement
has not paid at least 120 monthly contributions prior to
the semester of retirement
A
m
o
u
n
t

o
f

B
e
n
e
f
i
t

higher of either: equal to the total contributions paid by him on his behalf
a) monthly pension computed at the earliest time he could
have retire had he been separated from employment or
ceased to be self-employed plus all adjustments thereto; or
b) monthly pension computed at the time he actually retires
*member has the option:
to receive his first 18 monthly pensions in lump sum
discounted at a preferential rate of interest to be
determined by the SSS
it shall be suspended upon
retirement or resumption of self-employment of a retired
member who is less than 65 years old
A cash benefit granted to the
beneficiaries of a deceased
Lump sum amount computed as follows:
member has paid 36
monthly contributions prior
to the semester of death
member has not paid 36
monthly contributions
* 36 x monthly pension whichever is higher:
1) monthly pension x no.
of monthly contributions
paid or
2) 12 x monthly pension
A funeral grant equivalent to Twelve
thousand pesos (P12, 000.00) shall be paid,
in cash or in kind, to help defray the cost of
funeral expenses upon the death of a
member, including permanently totally
disabled member or retiree.
Granted to dependents in case of death,
permanent total disability or retirement of
an SSS member
Equivalent to 10% of monthly pension or
P250.00, whichever is higher
Payable to each dependent child conceived
on or before date of contingency
But not exceeding 5 beginning with the
youngest and without substitution
26
a) The dependent spouse until he or she remarries,
b) the dependent legitimate, legitimated or legally
adopted and illegitimate children

PROVIDED that the dependent illegitimate
children shall be entitled to 50% of the share of
the legitimate, legitimated or legally adopted
children.
PRIMARY BENEFICIARIES
27
PROVIDED FURTHER in the absence of the
legitimated, legally adopted or legitimate children,
illegitimate children shall be entitled to 100% of
the benefits.
IN THEIR ABSENCE, the dependent parents who
shall be the secondary beneficiaries.
IN THE ABSENCE OF ALL of the foregoing, any
person designated by the covered employee as
secondary beneficiary.
PRIMARY BENEFICIARIES
28
a) The dependent parents; or
b) Any other person designated by the member as
his secondary beneficiary.

SECONDARY BENEFICIARIES
29
a) The legal spouse entitled by law to
receive support from the member
b) The legitimate, legitimated or legally
adopted and illegitimate child who
is unmarried,
not gainfully employed and
has not reached 21 years of age or
if 21 years of age, he is congenitally
incapacitated or while still a minor has been
permanently incapacitated and incapable of
self- support, physically and mentally and
c) The parent who is receiving regular
support from the member
DEPENDENTS:
SOCIAL SECURTIY SYSTEM
SSS
-SSS is the implementing arm of the Social Security Act
-directed and controlled by the Social Security
Commission
(a) To submit annually not later than April 30, a public report to the
President of the Philippines covering its activities in the administration and
enforcement of this Act during the preceding year including information
and recommendations on broad policies for the development and
perfection of the program of the SSS.
(b) To require the actuary to submit a valuation report on the SSS benefit
program every four years, or more frequently as may be necessary, and to
undertake the necessary actuarial studies and calculations concerning
increases in benefits and the financial stability of the SSS and to provide for
the feasible increases in benefits every 4 years, including the addition f new
ones under such rules and regulations as the Commission may adopt
subject to the approval of the President;
(c) To establish offices of the SSS to cover as many provinces, cities and
congressional districts, whenever and wherever it may be expedient,
necessary and feasible, and to inspect or cause to be inspected periodically
such offices;
SSS exercises the following powers and duties:
(d) To enter into agreements or contracts for such service and aid, as may be needed for
the proper, efficient and stable administration of the SSS.
(e) To adopt from time to time a budget of expenditures including salaries of personnel,
against all funds available to the SS under this Social Security act.
(f) To set up its accounting system and provide the necessary personnel therefor.
(g) To require reports, compilations and analyses of statistical and economic data and to
make investigations as may be needed for the proper administration and development
of the System.
(h) To acquire property, real or personal, which may be necessary or expedient for the
attainment of the purposes of the Social Security Act.
(i) To acquire, receive, or hold, by way of purchase, expropriation or otherwise, public or
private property for the purpose of undertaking housing projects preferably for the
benefit of low-income members and for the maintenance of hospitals and institutions
for the sick, aged and infirm employees and immediate members of their families.
(j) To sue and be sued in court.
(k) To perform such other acts as it may deem appropriate for the proper enforcement
of the Social Security Act..

SSS exercises the following powers and duties:
SOCIAL SECURTIY SYSTEM
SSS
-SSS is the implementing arm of the Social Security Act
-directed and controlled by the Social Security
Commission
SOCIAL SECURITY COMMISSION
SSC
Secretary of Labor and Employment or his duly
designated undersecretary;
SSS President and ; and
7 members to be appointed by the President of the
Philippines:
3, representing the workers group, at least 1
of whom shall be a woman;
3, representing the ERs group, at least 1 of
whom shall be a woman
1, representing the general public who should
have adequate knowledge and experience regarding
social security.

Composition:
Chairman of the SSC: designated by the President
of the Philippines from among its members
(6)Shall be chosen from among
the nominees of workers and
employees organizations
Term of appointive members: 3 years.
Vacancies, prior to the expiration of term, shall be
filled for the unexpired term only
SOCIAL SECURITY COMMISSION
SSC
Administrative
functions
Quasi-judicial
functions
Co equal rank with the RTC;
RTC cannot issue writs of Injunction Certiorari and
Prohibition against SSC;
It may be sue and be sued in the RTC only
on matters connected with its administrative
functions, but not on matters connected
with its quasi-judicial functions
SOCIAL SECURITY COMMISSION
SSC
Administrative functions
(1) To adopt, amend and rescind, subject to the approval of the President of the
Philippines, such rules and regulations as may be necessary to carry out the provisions
and purposes of this Act;
(2) To establish a provident fund for the members which will consist of voluntary
contributions of employers and/or employees, self-employed and voluntary members
and their earnings, for the payment of benefits to such members or their beneficiaries,
subject to such rules and regulations as it may promulgate and approved by the
President of the Philippines;
(3) To maintain a Provident Fund which consists of contributions made by both the SSS
and its officials and employees and their earnings, for the payment of benefits to such
officials and employees or their heirs under such terms and conditions as it may
prescribe;
SOCIAL SECURITY COMMISSION
SSC
Administrative functions
(4) To approve restructuring proposals for the payment of due but unremitted
contributions and unpaid loan amortizations under such terms and conditions as it may
prescribe;
(5) To authorize cooperatives registered with the cooperative development authority or
associations registered with the appropriate government agency to act as collecting
agents of the SSS with respect to their members: Provided, That the SSS shall accredit
the cooperative or association: Provided, further, That the persons authorized to collect
are bonded;
(6) To compromise or release, in whole or in part, any interest, penalty or any civil
liability to SSS in connection with the investments authorized under Section 26, hereof,
under such terms and conditions as it may prescribe and approved by the President of
the Philippines; and
(7) To approve, confirm, pass upon or review any and all actions of the SSS in the proper
and necessary exercise of its powers and duties hereinafter enumerated

SOCIAL SECURITY COMMISSION
SSC
SSC has jurisdiction over disputes arising under the Social Security Act with respect to
Quasi-judicial functions
Coverage,
Entitlement of benefits,
Collection and Settlement of contributions and penalties, or
Any other matter related thereto.

SSC also has jurisdiction over claims for damages
SSC can order motu proprio the remittance of unpaid premium contributions discovered in the
of the proceedings before it.
Appeal from
decisions of SSC
Appealable to CA under Rule 43
By filing a verified petition for review
Within 15 days from notice of judgment.
Judicial review: permitted only after any party claiming to be aggrieved thereby has exhausted
his remedies before the Commission
litmus test and distinction between Permanent
Total Disability and Permanent Partial Disability
[W]hile permanent total
disability invariably results
in an employees loss of
work or inability to perform
his usual work,
permanent partial disability, on the
other hand, occurs when an
employee loses the use of any
particular anatomical part of his body
which disables him to continue with
his former work.
Stated otherwise, the test of whether or not an employee suffers from permanent total
disability is a showing of the capacity of the employee to continue performing his work
notwithstanding the disability he incurred. Thus, if by reason of the injury or sickness
he sustained, the employee is unable to perform his customary job for more than 120
days and he does not come within the coverage of Rule X of the Amended Rules on
Employees Compensability (which, in a more detailed manner, describes what
constitutes temporary total disability), then the said employee undoubtedly suffers from
permanent total disability regardless of whether or not he loses the use of any part of
his body.

Vicente vs. Employees Compensation Commission
disability should be understood less on its medical
significance than on the loss of earning capacity.
Permanent total disability means
-disablement of an employee to earn wages in the same kind of work, or
work of similar nature that he was trained for or accustomed to
perform, or any kind of work which a person of his mentality and
attainment could do. It does not mean absolute helplessness.

-Moreover, a persons disability may not manifest fully at one precise
moment in time but rather over a period of time. It is possible that an
injury which at first was considered to be temporary may later on
become permanent or one who suffers a partial disability becomes
totally and permanently disabled from the same cause.


(g) The percentage degree of disability which is equivalent to the ratio that the
designated number of months of compensability bears to seventy-five (75), rounded to
the next higher integer, shall not be additive for distinct, separate and unrelated
permanent partial disabilities, but shall be additive for deteriorating and related
permanent partial disabilities to a maximum of one hundred percent (100%), in which
case, the member shall be deemed as permanently totally disabled.
Percentage of Disability = designated number of months of compensability
75
one little finger 3 mos one big toe 6 one ear 10
one ring finger 5 loss of hearing in one ear 10
one middle finger 6
one index finger 8
one thumb 10
one hand 39 one foot 31 both ears 20 Loss of sight of one eye 25
one arm 50 one leg 46 loss of hearing of both ears 50
One arm 50
Loss of sight one eye 25
75

permanently totally disabled
Thank You
End