THE SOCIAL SECURITY

ACT OF 1997

sickness, maternity, old age and

death, and other contingencies
resulting in loss of income or
financial burden.

DEVELOPMENT OF THE LAW

JULY 18, 1954
REPUBLIC ACT NO. 1161
SOCIAL SECURITY ACT OF
1954 WAS APPROVED.
SEPTEMBER 1, 1957
R.A NO. 1161 WAS
IMPLEMENTED

VALIDITY
Promotions of social justice to
insure
the
well-being
and
economic security of all the
people.

CONSTRUCTION
To be liberally construed in favor
of those seeking its benefits.

(AMENDMENTS)

REPUBLIC ACT NO. 1792

REPUBLIC ACT NO. 2658
REPUBLIC ACT NO. 3839
REPUBLIC ACT NO. 4482

Other laws promulgated to increase the

amount of SSS benefits:
RA NO. 4857; PD NOS. 24, 177,
347, 735, 1202, 1636; EO NOS.
28, 102; RA NOS. 7322 AND
8282

Is Social Security System a. . .

LAW ON SUCCESSION? No.
PART OF THE TAXATION SYSTEM?
No.
PUBLIC FUNDS? No.

COMPULSORY COVERAGE
All employers engaged in
business in the Philippines,

RATIONALE
To establish, develop and
promote a sound and viable taxexempt social security system
suitable to the needs of the people
throughout the Philippines and
provide meaningful protection to
members and their beneficiaries
against the hazards of disability,

including religious, charitable or

non-profit institutions
All employees not over sixty (60)
years of age
Domestic helpers receiving PHP
1,000.00/month

 Aliens employed in the

Philippines
Self-employed persons,
including, but not limited to the
following:

MEMBERSHIP
Securing an SSS number does
not automatically make a person
an SSS member.
SSS Membership is a lifetime
membership.

- Self-employed professionals
- Partners and single proprietors
of businesses

EMPLOYEES NOT COVERED

BY THE SSS LAW

- Actors, actresses, directors,

scriptwriters, and news correspondents

a) Purely casual employees

- Professional athletes, coaches,

trainers, and jockeys

b) Employees serving on an alien

vessel, when such vessel is
outside of the Philippines

- Individual farmers and

fishermen

EFFECTIVE DATE OF
COVERAGE
a) For employers first day of
operation
b) For employees first day of
employment
c) For self-employed upon
registration with the SSS

c) Employees of the Philippine

Government or any of its
instrumentalities and agencies
d) Employees of foreign
government, international
organization, and their whollyowned instrumentality
e) Temporary employees, if
excluded by regulation of the
SSC

OBLIGATIONS OF EMPLOYER
Report and Remit

VOLUNTARY COVERAGE
a) Spouses who devote full time to
managing the household and
family affairs;
b) Filipinos recruited for overseas
employment by foreign-based
employers

NON-REPORTING OR NONREMITTANCE
Employers are liable and the
employees are not.

EFFECT OF FAILURE TO MAKE

TIMELY REMITTANCE OF
CONTRIBUTIONS
3% monthly penalty (civil liability)
Fine and/or imprisonment
(criminal liability)
Good faith not a defense
Demand is not a condition
precedent for remittance of
contributions

D. Retirement benefits;
E. Death benefits;
F. Funeral benefit

A. MATERNITY
The maternity benefit is a daily
cash allowance granted to a
female member who was unable
to work due to childbirth or
miscarriage.
QUALIFIED TO AVAIL IF SHE HAS:

TIMELY REMITTANCE OF
CONTRIBUTIONS
In accordance with the prescribed
schedule of payment which is
according to the 10th digit of the
Employer's ID Number.

CONTRIBUTIONS OF THE
SELF-EMPLOYED/ VOLUNTARY
Pays both the employers and
employees contributions (11% of
the monthly salary credit not
exceeding P16,000)

THE SOCIAL SECURITY

BENEFITS
A. Maternity leave benefits;
B. Sickness benefit;
C. Disability benefits;

(1) at least three monthly contributions

within the 12-month period immediately
preceding the semester of contingency;
and
(2) given the required notification of her
pregnancy, including the probable date
of childbirth, to her employer or the SSS
in the case of self-employed and
voluntary members.

B. SICKNESS
The sickness benefit is a daily
cash allowance paid for the
number of days a member is
unable to work due to sickness or
injury.
AVAILABLE TO A MEMBER WHO
HAS:
(1) contributed for at least three months
within the 12-month period immediately
preceding the semester of sickness;

(2) has been confined either in the

hospital or at home for at least four
days;

2. Upon recovery of the disabled

member from his permanent total
disability; or

(3) has used up all company sick leaves

with pay for the current year; and

3. By failure to undergo examination at

least once a year upon notice by the
SSS.

(4) has notified his employer or the SSS

in the case of self-employed and
voluntary members.

C. PERMANENT TOTAL DISABILITY

BENEFITS
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 or insanity; and
E. Such cases as determined and
approved by the SSS.

THE PERMANENT TOTAL

DISABILITY BENEFITS:
A. Monthly pension- available if the
SSS member has paid at least thirty-six
(36) monthly contributions prior to the
semester of disability;
NOTE: The monthly pension and
dependents pension shall be
suspended:
1. Upon the re-employment or
resumption of self-employment;

B. Lump sum benefit- contribution is

less than thirty six (36) monthly
contributions.
NOTE: it is equivalent to the monthly
pension times the number of monthly
contributions paid to the SSS or (12)
times the monthly pension, whichever is
higher.
If the member who has received the
lump sum benefit is re-employed or has
resumed self-employment he shall again
be subject to compulsory coverage and
shall be considered a new member.
Effect of death of a permanently and
totally
disabled pensioner:
(a) If the permanently and totally
disabled pensioner dies, the
primary beneficiaries as of the
date of the disability shall be
entitled to receive his monthly
pension;
(b) If permanently and totally
disabled pensioner has no
primary beneficiaries and he dies
w/n (60) months from the start of
his monthly pension, the
secondary beneficiaries shall be
entitled to a lump sum benefit.

NOTE: The Lump sum benefit is

equivalent to the TOTAL monthly
pensions corresponding to the balance
of the five-year guaranteed period
excluding the defendants pension.

PERMANENT PARTIAL DISABILITY

BENEFITS
Is a situation where the employee 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 thumb
finger

One index
One middle finger

One ring finger

finger

One little
One big toe

One hand

One arm
One foot

One leg

One ear
Both ears

Hearing of one ear

Both ears
Sight of one eye

The permanent partial disability

benefits are as follows:
(a) 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;
(b) Monthly pension available if
the permanent partial disability occurs

after (36) contributions, payable in

accordance with the following schedule
NOTE: The monthly pension benefit for
permanent partial disability will be given
in lump sum if it is payable in less than
12 months. The partial disability pension
ceases upon retirement or death.
Complete and
Permanent Loss
of the Use of:

Number of
Months

Loss of One little finger

3 months

Loss of One ring finger

5 months

Loss of One middle finger 6 months

Loss of One big toe

6 months

Loss of One index finger

8 months

Loss of One thumb

10 months

Loss of One ear

10 months

Loss of Hearing of one ear 10 months

Loss of Both ears

20 months

Loss of Sight of one eye

25 months

Loss of One foot

31 months

Loss of One hand

39 months

Loss of One leg

49 months

Loss of One arm

50 months

Loss of Hearing of
both ears

50 months

D. RETIREMENT BENEFITS
The retirement benefit under the Social
Security Act 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;
(b) already retired from service or
ceased to be self-employed.
The retirement benefits are as
follows:
(a) Monthly pension for as long as he
lives - available if the member has paid at
least one hundred twenty (120) monthly
contributions prior to the semester of his
retirement;
NOTE: The monthly pension of a
member who retires after the age of 60
is the higher of either:
a. the monthly pension computed
at the earliest time he could have retired
had he been separated from employment
or ceased to be self-employed plus all
adjustments thereto; or
b. the monthly pension computed
at the time when he actually retires.
(b) 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:
1. If the retired SSS member dies,
his primary beneficiaries as of the date of

his retirement shall be entitled to receive

the monthly pension.
2. If he has no primary
beneficiaries and he dies within (60)
months from the start of his monthly
pension, his secondary beneficiaries
shall be entitled to a lump sum benefit
equivalent to the total monthly pensions
corresponding to the balance of the fiveyear guaranteed period, excluding the
dependents pension.

E. DEATH BENEFITS
The death benefits of a member of the
SSS consist of a lump sum amount
computed as follows:
(a) Thirty-six (36) times the
monthly pension -if the member has
paid at least (36) monthly contributions
prior to the semester of death;
(b) Monthly pension times the
number of
monthly contributions paid
or twelve (12) times the monthly
pensions, whichever is higher if the
member has not paid the (36) monthly
contributions.

F. FUNERAL BENEFITS
This 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.
The funeral benefit is Twelve
(P12,000.00) Thousand Pesos
payable in cash or in kind.

 Has not reached 21 years of

age; or
If over 21 years of age, he is
congenitally incapacitated or
while still a minor has been
permanently incapacitated and
incapable of self-support,
physically or mentally;

THE PRIMARY BENEFICIARIES

1. The dependent spouse, until he
or she remarries; and
2. The dependent legitimate,
legitimated, or legally adopted
and illegitimate children
The existence of legitimate, legitimated,
or legally adopted and illegitimate
children entitles the illegitimate children
to 50% of the share of the former,
which, if absent would grant the latter
100% of the benefits.

Brothers and sisters may not be

designated as beneficiaries
except in default, not only of
surviving spouse and children but
also of legitimate parents of
employee. (Merced v. Vda. De
Merced, 19 scra 423)

THE SECONDARY
BENEFICIARIES

3. The parent who is receiving

regular support from the member.
The dependents pension
Granted to dependents in case of
death, permanent total disability
or retirement of an SSS member.
Sec 12-A

THE SOCIAL SECURITY

SYSTEM

Implementing arm of the Social

Security Act and is a corporate
body directed and controlled by
the Social Security Commission.

Powers and Duties

The Social Security System may

sue and be sued

1. The dependent parents; or

2. Any other person designated by
the member as his secondary
beneficiaries.

THE DEPENDENTS
1. The legal spouse entitled by law
to receive support from the
member;
2. The legitimate, legitimated,
legally adopted, and illegitimate
child who:
Is unmarried; and

THE SOCIAL SECURITY

COMMISSION
Composition:
1. Secretary of Labor and
Employment or his duly
designated undersecretary;
2. SSS President; and

3. 7 members to be appointed by
the President of the Philippines,
to wit:
o 3, representing the workers
group, at least one of whom
shall be a woman;
o 3, representing the
employees group, at least
one of whom shall be a
woman; and
o 1, representing the general
public who should have
adequate knowledge and
experience regarding social
security

THE SOCIAL SECURITY

COMMISSION
The SSC is co-equal in rank with
the RTC, therefor the latter
cannot issue writs of injunction,
certiorari or prohibition against
the former.
It may sue and be sued only on
matters connected with its
administrative function.
Quasi-judicial functions
SSC has jurisdiction over
disputes arising under the Social
Security Act.
Hearings are not strictly governed
by the technical rules of
procedure that are applied to
judicial trials.
SSC has jurisdiction for claim of
damages

Appeal from decisions of the SSC

Decisions of the SSC are
appealable to the Court of
Appeals (Rules 43 of the Rules of
Court) by filing a verified petition
for review 15 days from notice of
judgment.
Permitted only when party
claiming to be aggrieved has
exhausted his remedies before
the Commission.

JDAL 211: Agrarian Reform and

Social Legislation (Tuesday, 5-7 pm)
Atty. Edgar P. Borje

Reporters:
Notarte, Norbert
Pamittan, Agatha
Pluma, Michael John
Rasuman, Aya