Special Laws Agra Subjects

REPUBLIC OF THE PHILIPPINES
CONGRESS OF THE PHILIPPINES

METRO MANILA
REPUBLIC ACT NO. 9994
AN ACT GRANTING ADDITIONAL BENEFITS AND PRIVILEGES TO SENIOR CITIZENS, FURTHER AMENDING REPUBLIC ACT
NO. 7432, AS AMENDED, OTHERWISE KNOWN AS AN ACT TO MAXIMIZE THE CONTRIBUTION OF SENIOR CITIZENS TO
NATION BUILDING, GRANT BENEFITS AND SPECIAL PRIVILEGES AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Title. This Act Shall be known as the Expanded Senior Citizens Act of 2010.
Sec. 2. Section 1 of Republic Act No. 7432, as amended by Republic Act No. 9257, otherwise known as the Expanded Senior Citizens
Act of 2003, is hereby further amended to read as follows:
SECTION 1. Declaration of Policies and Objectives. As provided in the Constitution of the Republic of the Philippines, it is the
declared policy of the State to promote a just and dynamic social order that will ensure the prosperity and independence of the nation
and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of
living and an improved quality of life. In the Declaration of Principles and State Policies in Article II, Sections 10 and 11, it is further
declared that the State shall provide social justice in all phases of national development and that the State values the dignity of every
human person and guarantees full respect for human rights.
Article XIII, Section 11 of the Constitution provides that the State shall adopt an integrated and comprehensive approach to health
development which shall endeavor to make essential goods, health and other social services available to all the people at affordable
cost. There shall be priority for the needs of the underprivileged, sick, elderly, disabled, women and children. Article XV, Section 4 of
the Constitution Further declares that it is the duty of the family to take care of its elderly members while the State may design
programs of social security for them.
Consistent with these constitutional principles, this Act shall serve the following objectives:
(a) To recognize the rights of senior citizens to take their proper place in society and make it a concern of the family, community, and
government;
(b) To give full support to the improvement of the total well-being of the elderly and their full participation in society, considering that
senior citizens are integral part of Philippine society;
(c) To motivate and encourage the senior citizens to contribute to nation building;
(d) To encourage their families and the communities they live with to reaffirm the valued Filipino tradition of caring for the senior
citizens;
(e) To provide a comprehensive health care and rehabilitation system for disabled senior citizens to foster their capacity to attain a
more meaningful and productive ageing; and
(f) To recognize the important role of the private sector in the improvement of the welfare of senior citizens and to actively seek their
partnership.
In accordance with these objectives, this Act shall:
(1) establish mechanisms whereby the contributions of the senior citizens are maximized;
(2) adopt measures whereby our senior citizens are assisted and appreciated by the community as a whole;
(3) establish a program beneficial to the senior citizens, their families and the rest of the community they serve: and
(4) establish community-based health and rehabilitation programs for senior citizens in every political unit of society.
Sec. 3. Section 2 of Republic Act No. 7432, as amended by Republic Act No. 9257, otherwise known as the Expanded Senior Citizens
SEC. 2. Definition of terms. For purposes of this Act, these terms are defined as follows:
(a) Senior citizen or elderly refers to any resident citizen of the Philippines at least sixty (60) years old;
(b) Geriatrics refer to the branch of medical science devoted to the study of the biological and physical changes and the diseases of
old age;
(c) Lodging establishment refers to a building, edifice, structure, apartment or house including tourist inn, apartelle, motorist hotel, and
pension house engaged in catering, leasing or providing facilities to transients, tourists or travelers;
(d) Medical Services refer to hospital services, professional services of physicians and other health care professionals and diagnostics
and laboratory tests that the necessary for the diagnosis or treatment of an illness or injury;
(e) Dental services to oral examination, cleaning, permanent and temporary filling, extractions and gum treatments, restoration,
replacement or repositioning of teeth, or alteration of the alveolar or periodontium process of the maxilla and the mandible that are
necessary for the diagnosis or treatment of an illness or injury;
(f) Nearest surviving relative refers to the legal spouse who survives the deceased senior citizen: Provided, That where no spouse
survives the decedent, this shall be limited to relatives in the following order of degree of kinship: children, parents, siblings,
grandparents, grandchildren, uncles and aunts;
(g) Home health care service refers to health or supportive care provided to the senior citizen patient at home by licensed health care
professionals to include, but not limited to, physicians, nurses, midwives, physical therapist and caregivers; and
(h) Indigent senior citizen, refers to any elderly who is frail, sickly or with disability, and without pension or permanent source of
income, compensation or financial assistance from his/her relatives to support his/her basic needs, as determined by the Department of
Social Welfare and development (DSWD) in consultation with the National Coordinating and Monitoring Board.
Sec. 4 Section 4 of Republic Act No. 7432, as amended by Republic Act No. 9257, otherwise known as the Expanded Senior Citizens
SEC. 4. Privileges for the Senior Citizens.
The senior citizens shall be entitled to the following:
(a) the grant of twenty percent (20%) discount and exemption from the value -added tax (VAT), if applicable, on the sale of the
following goods and services from all establishments, for the exclusive use and enjoyment or availment of the senior citizen
(1) on the purchase of medicines, including the purchase of influenza and pnuemococcal vaccines, and such other essential medical
supplies, accessories and equipment to be determined by the Department of Health (DOH).
The DOH shall establish guidelines and mechanism of compulsory rebates in the sharing of burden of discounts among retailers,
manufacturers and distributors, taking into consideration their respective margins;
(2) on the professional fees of attending physician/s in all private hospitals, medical facilities, outpatient clinics and home health care
services;
(3) on the professional fees of licensed professional health providing home health care services as endorsed by private hospitals or
employed through home health care employment agencies;
(4) on medical and dental services, diagnostic and laboratory fees in all private hospitals, medical facilities, outpatient clinics, and
home health care services, in accordance with the rules and regulations to be issued by the DOH, in coordination with the Philippine
Health Insurance Corporation (PhilHealth);
(5) in actual fare for land transportation travel in public utility buses (PUBs), public utility jeepneys (PUJs), taxis, Asian utility vehicles
(AUVs), shuttle services and public railways, including Light Rail Transit (LRT), Mass Rail Transit (MRT), and Philippine National
Railways (PNR);
(6) in actual transportation fare for domestic air transport services and sea shipping vessels and the like, based on the actual fare and
advanced booking;
(7) on the utilization of services in hotels and similar lodging establishments, restaurants and recreation centers;
(8) on admission fees charged by theaters, cinema houses and concert halls, circuses, leisure and amusement; and
(9) on funeral and burial services for the death of senior citizens;
(b) exemption from the payment of individual income taxes of senior citizens who are considered to be minimum wage earners in
accordance with Republic Act No. 9504;
(c) the grant of a minimum of five percent (5%) discount relative to the monthly utilization of water and electricity supplied by the public
utilities: Provided, That the individual meters for the foregoing utilities are registered in the name of the senior citizen residing
therein: Provided, further, That the monthly consumption does not exceed one hundred kilowatt hours (100 kWh) of electricity and thirty
cubic meters (30 m3) of water: Provided, furthermore, That the privilege is granted per household regardless of the number of senior
citizens residing therein;
(d) exemption from training fees for socioeconomic programs;
(e) free medical and dental services, diagnostic and laboratory fees such as, but not limited to, x-rays, computerized tomography scans
and blood tests, in all government facilities, subject to the guidelines to be issued by the DOH in coordination with the PhilHealth;
(f) the DOH shall administer free vaccination against the influenza virus and pneumococcal disease for indigent senior citizen patients;
(g) educational assistance to senior citizens to pursue pot secondary, tertiary, post tertiary, vocational and technical education, as well
as short-term courses for retooling in both public and private schools through provision of scholarships, grants, financial aids, subsides
and other incentives to qualified senior citizens, including support for books, learning materials, and uniform allowances, to the extent
feasible: Provided, That senior citizens shall meet minimum admission requirements;
(h) to the extent practicable and feasible, the continuance of the same benefits and privileges given by the Government Service
Insurance System (GSIS), the Social Security System (SSS) and the PAG-IBIG, as the case may be, as are enjoyed by those in actual
service;
(i) retirement benefits of retirees from both the government and the private sector shall be regularly reviewed to ensure their continuing
responsiveness and sustainability, and to the extent practicable and feasible, shall be upgraded to be at par with the current scale
enjoyed by those in actual service;
(j) to the extent possible, the government may grant special discounts in special programs for senior citizens on purchase of basic
commodities, subject to the guidelines to be issued for the purpose by the Department of Trade and Industry (DTI) and the Department
of Agriculture (DA);
(k) provision of express lanes for senior citizens in all commercial and government establishments; in the absence thereof, priority shall
be given to them; and
(l) death benefit assistance of a minimum of Two thousand pesos (Php2, 000.00) shall be given to the nearest surviving relative of a
deceased senior citizen which amount shall be subject to adjustments due to inflation in accordance with the guidelines to be issued by
the DSWD.cralaw
In the availment of the privileges mentioned above, the senior citizen, or his/her duly authorized representative, may submit as proof of
his/her entitled thereto any of the following:
(1) an identification card issued by the Office of the Senior Citizen Affairs (OSCA) of the place where the senior citizen resides:
Provided, That the identification card issued by the particular OSCA shall be honored nationwide;
(2) the passport of the senior citizen concerned; and
(3) other documents that establish that the senior citizen is a citizen of the Republic and is at least sixty (60) years of age as further
provided in the implementing rules and regulations.
In the purchase of goods and services which are on promotional discount, the senior citizen can avail of the promotional discount or
the discount provided herein, whichever is higher.cralaw
The establishment may claim the discounts granted under subsections (a) and (c) of this section as tax deduction based on the cost of
the goods sold or services rendered: Provided, That the cost of the discount shall be allowed as deduction from gross income for the
same taxable year that the discount is granted: Provided, further, That the total amount of the claimed tax deduction net of VAT, if
applicable, shall be included in their gross sales receipts for tax purposes and shall be subject to proper documentation and to the
provisions of the National Internal Revenue Code (NICR), as amended.
Sec. 5. Section 5 of the same Act, as amended, is hereby further amended to read as follows:
SEC. 5. Government Assistance. The government shall provide the following:
(a) Employment
Senior citizens who have the capacity and desire to work, or be re-employed, shall be provided information and matching services to
enable them to be productive members of society. Terms of employment shall conform with the provisions of the Labor Code, as
amended, and other laws, rules and regulations.
Private entities that will employ senior citizens as employees, upon the effectivity of this Act, shall be entitled to an additional deduction
from their gross income, equivalent to fifteen percent (15%) of the total amount paid as salaries and wages to senior citizens, subject to
the provision of Section 34 of the NIRC, as amended: Provided, however, That such employment shall continue for a period of at least
six (6) months: Provided, further, That the annual income of the senior citizen does not exceed the latest poverty threshold as
determined by the National Statistical Coordination Board (NSCB) of the National Economic and Development Authority (NEDA) for that
year.
The Department of Labor and Employment (DOLE), in coordination with other government agencies such as, but not limited to, the
Technology and Livelihood Resource Center (TLRC) and the Department of Trade and Industry (DTI), shall assess, design and
implement training programs that will provide skills and welfare or livelihood support for senior citizens.
(b) Education
The Department of Education (DepED), the Technical Education and Skills Development Authority (TESDA) and the Commission on
Higher Education (CHED), in consultation with nongovernmental organizations (NGOs) and peoples organizations (POs) for senior
citizens, shall institute programs that will ensure access to formal and nonformal education.
(c) Health
The DOH, in coordination with local government units (LGUs), NGOs and POs for senior citizens, shall institute a national health
program and shall provide an integrated health service for senior citizens. It shall train community-based health workers among senior
citizens and health personnel to specialize in the geriatric care and health problems of senior citizens.
The national health program for senior citizens shall, among others, be harmonized with the National Prevention of Blindness Program
of the DOH.
Throughout the country, there shall be established a senior citizens ward in every government hospital. This geriatric wa rd shall be
for the exclusive use of senior citizens who are in need of hospital confinement by reason of their health conditions. However, when
urgency of public necessity purposes so require, such geriatric ward may be used for emergency purposes, after which, such senior
citizens ward shall be reverted to its nature as geriatric ward.
(d) Social Services
At least fifty percent (50%) discount shall be granted on the consumption of electricity, water, and telephone by the senior citizens
center and residential care/group homes that are government-run or non-stock, non-profit domestic corporation organized and operated
primarily for the purpose of promoting the well-being of abandoned, neglected, unattached, or homeless senior citizens, subject to the
guidelines formulated by the DSWD.
(1) self and social enhancement services which provide senior citizens opportunities for socializing, organizing, creative expression,
and self-improvement;
(2) after care and follow-up services for citizens who are discharged from the homes or institutions for the aged, especially those who
have problems of reintegration with family and community, wherein both the senior citizens and their families are provided with
counseling;
(3) neighborhood support services wherein the community or family members provide caregiving services to their frail, sick, or
bedridden senior citizens; and
(4) substitute family care in the form of residential care or group homes for the abandoned, neglected, unattached or homeless
senior citizens and those incapable of self-care.
(e) Housing
The national government shall include in its national shelter program the special housing needs of senior citizens, such as
establishment of housing units for the elderly.
(f) Access to Public Transport
The Department of Transportation and Communications (DOTC) shall develop a program to assist senior citizens to fully gain access
to public transport facilities.
(g) Incentive for Foster Care
The government shall provide incentives to individuals or nongovernmental institution caring for or establishing homes, residential
communities or retirement villages solely for, senior citizens, as follows:
(1) realty tax holiday for the first five (5) years starting from the first year of operation; and
(2) priority in the construction or maintenance of provincial or municipal roads leading to the aforesaid home, residential community or
retirement village.
(h) Additional Government Assistance
(1) Social Pension
Indigent senior citizens shall be entitled to a monthly stipend amounting to Five hundred pesos (Php500.00) to augment the daily
subsistence and other medical needs of senior citizens, subject to a review every two (2) years by Congress, in consultation with the
DSWD.
(2) Mandatory PhilHealth Coverage
All indigent senior citizens shall be covered by the national health insurance program of PhilHealth. The LGUs where the indigent
senior citizens resides shall allocate the necessary funds to ensure the enrollment of their indigent senior citizens in accordance with
the pertinent laws and regulations.
(3) Social Safety Nets
Social safety assistance intended to cushion the effects of economics shocks, disasters and calamities shall be available for senior
citizens. The social safety assistance which shall include, but not limited to, food, medicines, and financial assistance for domicile
repair, shall be sourced from the disaster/calamity funds of LGUs where the senior citizens reside, subject to the guidelimes to be
issued by the DSWD.
Sec. 6. Section 6 of the same Act, as amended, is heeby further amended to read as follows:
SEC. 6. The Office for Senior Citizens Affairs (OSCA). There shall be established in all cities and municipalities an OSCA to be
headed by a senior citizen who shall be appointed by the mayor for a term of three (3) years without reappointment but without
prejudice to an extension if exigency so requires. Said appointee shall be chosen from a list of three (3) nominees as recommended by
a general assembly of senior citizens organizations in the city or municipality.
The head of the OSCA shall be appointed to serve the interest of senior citizens and shall not be removed or replaced except for
reasons of death permanent disability or ineffective performance of his duties to the detriment of fellow senior citizens.
The head of the OSCA shall be entitled to receive an honorarium of an amount at least equivalent to Salary Grade 10 to be approved
by the LGU concerned.
The head of the OSCA shall be assisted by the City Social Welfare and Development officer or by the Municipal Social Welfare and
Development Officer, in coordination with the Social Welfare and Development Office.
The Office of the Mayor shall exercise supervision over the OSCA relative to their plans, activities and programs for senior citizens.
The OSCA shall work together and establish linkages with accredited NGOs Pos and the barangays in their respective areas.
The OSCA shall have the following functions:
(a) To plan, implement and monitor yearly work programs in pursuance of the objectives of this Act;
(b) To draw up a list of available and required services which can be provided by the senior citizens;
(c) To maintain and regularly update on a quarterly basis the list of senior citizens and to issue national individual identification cards,
free of charge, which shall be valid anywhere in the country;
(d) To serve as a general information and liason center for senior citizens;
(e) To monitor compliance of the provisions of this Act particularly the grant of special discounts and privileges to senior citizens;
(f) To report to the mayor, any individual, establishments, business entity, institutions or agency found violating any provision of this
Act; and
(g) To assist the senior citizens in filing complaints or charges against any individual, establishments, business entity, institution, or
agency refusing to comply with the privileges under this Act before the Department of Justice (DOJ), the Provincial Prosecutors Office,
the regional or the municipal trial court, the municipal trial court in cities, or the municipal circuit trial court.
SEC. 10. Penalties. Any person who refuses to honor the senior citizen card issued by this the government or violates any provision
of this Act shall suffer the following penalties:
(a) For the first violation, imprisonment of not less than two (2) years but not more than six (6) years and a fine of not less than Fifty
thousand pesos (Php50,000.00) but not exceeding One hundred thousand pesos (Php100,000.00);
(b) For any subsequent violation, imprisonment of not less than two (2) years but not more than six (6) years and a fine of not less than
One Hundred thousand pesos (Php100,000.00) but not exceeding Two hundred thousand pesos (Php200,000.00); and
(c) Any person who abuses the privileges granted herein shall be punished with imprisonment of not less than six (6) months and a
fine of not less than Fifty thousand pesos (Php50,000.00) but not more than One hundred thousand pesos (Php100,000.00).
If the offender is a corporation, partnership, organization or any similar entity, the officials thereof directly involved such as the
president, general manager, managing partner, or such other officer charged with the management of the business affairs shall be
liable therefor.
If the offender is an alien or a foreigner, he/she shall be deported immediately after service of sentence.
Upon filing of an appropriate complaint, and after due notice and hearing, the proper authorities may also cause the cancellation or
revocation of the business permit, permit to operate, franchise and other similar privileges granted to any person, establishment or
business entity that fails to abide by the provisions of this Act.
SEC. 11. Monitoring and Coordinating Mechanism. A National Coordinating and Monitoring Board shall be established which shall be
composed of the following:
(a) Chairperson the Secretary of the DSWD or an authorized representative;
(b) Vice Chairperson the Secretary of the Department of the Interior and Local Government (DILG) or an authorized representative;
and
(c) Members:
(1) the Secretary of the DOJ or an authorized representative;
(2) the Secretary of the DOH or an authorized representative;
(3) the Secretary of the DTI or an authorized representative; and
(4) representatives from five (5) NGOs for senior citizens which are duly accredited by the DSWD and have service primarily for senior
citizens. Representatives of NGOs shall serve a period of tree (3) years.
The Board may call on other government agencies, NGOs and Pos to serve as resource persons as the need arises. Resource person
have no right to vote in the National Coordinating and Monitoring Board.
Sec. 9. Implementing Rules and Regulations. Within sixty (60) days from theeffectivity of this Act, the Secretary of the DSWD shall
formulate and adopt amendments to the existing rules and regulations implementing Republic Act No. 7432, as amended by Republic
Act No. 9257, to carry out the objectives of this Act, in consultation with the Department of Finance, the Department of Tourism, the
Housing and Urban Development Coordinating Council (HUDCC), the DOLE, the DOJ, the DILG, the DTI, the DOH, the DOTC, the
NEDA, the DepED, the TESDA, the CHED, and five (5) NGOs or POs for the senior citizens duly accredited by the DSWD. The
guidelines pursuant to Section 4(a)(i) shall be established by the DOH within sixty (60) days upon the effectivity of this Act.
Sec. 10. Appropriations. The Necessary appropriations for the operation and maintenance of the OSCA shall be appropriated and
approved by the LGUs concerned. For national government agencies, the requirements to implement the provisions of this Act shall be
included in their respective budgets: Provided, That the funds to be used for the national health program and for the vaccination of
senior citizens in the first year of the DOH and thereafter, as a line item under the under the DOH budget in the subsequent General
Appropriations Act (GAA): Provided, further, That the monthly social pension for indigent senior citizens in the first year of
implementation shall be added to the regular appropriations of the DSWD budget in the subsequent GAA.
Sec. 11. Repealing Clause. All law, executive orders, rules and regulations or any part hereof inconsistent herewith are deemed
repealed or modified accordingly.
Sec. 12. Separability Clause. If any part or provision of this Act shall be declared unconstitutional and invalid, such 18 declaration
shall not invalidate other parts thereof which shall remain in full force and effect.
Sec. 13. Effectivity. This Act shall take effect fifteen (15) days its complete publication n the Official Gazette or in at least two (2)
newspapers of general circulation, whichever comes earlier
REPUBLIC ACT No. 10022
AN ACT AMENDING REPUBLIC ACT NO. 8042, OTHERWISE KNOWN AS THE MIGRANT WORKERS AND OVERSEAS
FILIPINOS ACT OF 1995, AS AMENDED, FURTHER IMPROVING THE STANDARD OF PROTECTION AND PROMOTION OF THE
WELFARE OF MIGRANT WORKERS, THEIR FAMILIES AND OVERSEAS FILIPINOS IN DISTRESS, AND FOR OTHER
PURPOSES
Section 1. Paragraphs (a), (e), (g) and (h) of Section 2 of Republic Act. No. 8042, as amended, otherwise known as the Migrant
Workers and Overseas Filipinos Act of 1995, is hereby amended to read as follows:
(a) In the pursuit of an independent foreign policy and while considering national sovereignty, territorial integrity, national interest and
the right to self-determination paramount in its relations with other states, the State shall, at all times, uphold the dignity of its citizens
whether in country or overseas, in general, and Filipino migrant workers, in particular, continuously monitor international conventions,
adopt/be signatory to and ratify those that guarantee protection to our migrant workers, and endeavor to enter into bilateral agreements
with countries hosting overseas Filipino workers.
(e) Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any person by reason of
poverty. In this regard, it is imperative that an effective mechanism be instituted to ensure that the rights and interest of distressed
overseas Filipinos, in general, and Filipino migrant workers, in particular, whether regular/documented or irregular/undocumented, are
adequately protected and safeguarded.
(g) The State recognizes that the most effective tool for empowerment is the possession of skills by migrant workers. The government
shall provide them free and accessible skills development and enhancement programs. Pursuant to this and as soon as practicable, the
government shall deploy and/or allow the deployment only of skilled Filipino workers.
(h) The State recognizes non-governmental organizations, trade unions, workers associations, stakeholders and their similar entities
duly recognized as legitimate, are partners of the State in the protection of Filipino migrant workers and in the promotion of their
welfare. The State shall cooperate with them in a spirit of trust and mutual respect. The significant contribution of recruitment and
manning agencies shall from part this partnership.
Section 2. Section 3, paragraph (a) of Republic Act No. 8042, as amended, is hereby amended to read as follows:
(a) Overseas Filipino worker refers to a person who is to be engaged, is engaged or has been engaged in a remunerated activity in a
state of which he or she is not a citizen or on board a vessel navigating the foreign seas other than a government ship used for miliatry
or non-commercial purposes or on an installation located offshore or on the high seas; to be used interchangeably with migrant worker.
Section 3. Section 4 of Republic Act No. 8042, as amended, is hereby amended to rerad as follows:
SEC. 4. Deployment of Migrant Workers. The State shall allow the deployment of overseas Filipino workers only in countries where
the rights of Filipino migrant workers are protected. The government recognizes any of the following as a guarantee on the part of the
receiving country for the protection of the rights of overseas Filipino workers:
(a) It has existing labor and social laws protecting the rights of workers, including migrant workers;
(b) It is a signatory to and/or a ratifier of multilateral conventions, declarations or resolutions relating to the protection of workers,
including migrant workers; and
(c) It has concluded a bilateral agreement or arrangement with the government on the protection of the rights of overseas Filipino
Workers:
Provided, That the receiving country is taking positive, concrete measures to protect the rights of migrant workers in furtherance of any
of the guarantees under subparagraphs (a), (b) and (c) hereof.
In the absence of a clear showing that any of the aforementioned guarantees exists in the country of destination of the migrant
workers, no permit for deployment shall be issued by the Philippine Overseas Employment Administration (POEA).
The members of the POEA Governing Board who actually voted in favor of an order allowing the deployment of migrant workers
without any of the aforementioned guarantees shall suffer the penalties of removal or dismissal from service with disqualification to hold
any appointive public office for five (5) years, Further, the government official or employee responsible for the issuance of the permit or
for allowing the deployment of migrant workers in violation of this section and in direct contravention of an order by the POEA
Governing Board prohibiting deployment shall be meted the same penalties in this section.
For this purpose, the Department of Foreign Affairs, through its foreign posts, shall issue a certification to the POEA, specifying therein
the pertinent provisions of the receiving countrys labor/social law, or the convention/declaration/resolution, or the bilateral
agreement/arrangement which protect the rights of migrant workers.
The State shall also allow the deployment of overseas Filipino workers to vessels navigating the foreign seas or to installations located
offshore or on high seas whose owners/employers are compliant with international laws and standards that protect the rights of migrant
workers.
The State shall likewise allow the deployment of overseas Filipino workers to companies and contractors with international operations:
Provided, That they are compliant with standards, conditions and requirements, as embodied in the employment contracts prescribed
by the POEA and in accordance with internationally-accepted standards.
Section 4. Section 5 of Republic Act No. 8042, as amended, is hereby amended to read as follows:
SEC. 5. Termination or Ban on Deployment. Notwithstanding the provisions of Section 4 hereof, in pursuit of the national interest or
when public welfare so requires, the POEA Governing Board, after consultation with the Department of Foreign Affairs, may, at any
time, terminate or impose a ban on the deployment of migrant workers.
SEC. 6. Definition. For purposes of this Act, illegal recruitment shall mean any act of canvassing, enlisting, contracting, transporting,
utilizing, hiring, or procuring workers and includes referring, contract services, promising or advertising for employment abroad, whether
for profit or not, when undertaken by non-licensee or non-holder of authority contemplated under Article 13(f) of Presidential Decree No.
442, as amended, otherwise known as the Labor Code of the Philippines: Provided, That any such non-licensee or non-holder who, in
any manner, offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged. It shall likewise
include the following acts, whether committed by any person, whether a non-licensee, non-holder, licensee or holder of authority:
(a) To charge or accept directly or indirectly any amount greater than that specified in the schedule of allowable fees prescribed by the
Secretary of Labor and Employment, or to make a worker pay or acknowledge any amount greater than that actually received by him as
a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to recruitment or employment;
(c) To give any false notice, testimony, information or document or commit any act of misrepresentation for the purpose of securing a
license or authority under the Labor Code, or for the purpose of documenting hired workers with the POEA, which include the act of
reprocessing workers through a job order that pertains to nonexistent work, work different from the actual overseas work, or work with a
different employer whether registered or not with the POEA;
(d) To include or attempt to induce a worker already employed to quit his employment in order to offer him another unless the transfer
is designed to liberate a worker from oppressive terms and conditions of employment;
(e) To influence or attempt to influence any person or entity not to employ any worker who has not applied for employment through his
agency or who has formed, joined or supported, or has contacted or is supported by any union or workers organization;
(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dignity of the Republic of
the Philippines;
(h) To fail to submit reports on the status of employment, placement vacancies, remittance of foreign exchange earnings, separation
from jobs, departures and such other matters or information as may be required by the Secretary of Labor and Employment;
(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified by the Department of Labor and
Employment from the time of actual signing thereof by the parties up to and including the period of the expiration of the same without
the approval of the Department of Labor and Employment;
(j) For an officer or agent of a recruitment or placement agency to become an officer or member of the Board of any corporation
engaged in travel agency or to be engaged directly or indirectly in the management of travel agency;
(k) To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations, or for any
other reasons, other than those authorized under the Labor Code and its implementing rules and regulations;
(l) Failure to actually deploy a contracted worker without valid reason as determined by the Department of Labor and Employment;
(m) Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of
deployment, in cases where the deployment does not actually take place without the workers fault. Illegal recruitment when committed
by a syndicate or in large scale shall be considered an offense involving economic sabotage; and
(n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.
Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more persons conspiring or
confederating with one another. It is deemed committed in large scale if committed against three (3) or more persons individually or as
a group.
In addition to the acts enumerated above, it shall also be unlawful for any person or entity to commit the following prohibited acts:
(1) Grant a loan to an overseas Filipino worker with interest exceeding eight percent (8%) per annum, which will be used for payment
of legal and allowable placement fees and make the migrant worker issue, either personally or through a guarantor or accommodation
party, postdated checks in relation to the said loan;
(2) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to avail of a loan only from
specifically designated institutions, entities or persons;
(3) Refuse to condone or renegotiate a loan incurred by an overseas Filipino worker after the latters employment contract has been
prematurely terminated through no fault of his or her own;
(4) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to undergo health examinations
only from specifically designated medical clinics, institutions, entities or persons, except in the case of a seafarer whose medical
examination cost is shouldered by the principal/shipowner;
(5) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to undergo training, seminar,
instruction or schooling of any kind only from specifically designated institutions, entities or persons, except fpr recommendatory
trainings mandated by principals/shipowners where the latter shoulder the cost of such trainings;
(6) For a suspended recruitment/manning agency to engage in any kind of recruitment activity including the processing of pending
workers applications; and
(7) For a recruitment/manning agency or a foreign principal/employer to pass on the overseas Filipino worker or deduct from his or her
salary the payment of the cost of insurance fees, premium or other insurance related charges, as provided under the compulsory
workers insurance coverage.
The persons criminally liable for the above offenses are the principals, accomplices and accessories. In case of juridical persons, the
officers having ownership, control, management or direction of their business who are responsible for the commission of the offense
and the responsible employees/agents thereof shall be liable.
In the filing of cases for illegal recruitment or any of the prohibited acts under this section, the Secretary of Labor and Employment, the
POEA Administrator or their duly authorized representatives, or any aggrieved person may initiate the corresponding criminal action
with the appropriate office. For this purpose, the affidavits and testimonies of operatives or personnel from the Department of Labor and
Employment, POEA and other law enforcement agencies who witnessed the acts constituting the offense shall be sufficient to
prosecute the accused.
In the prosecution of offenses punishable under this section, the public prosecutors of the Department of Justice shall collaborate with
the anti-illegal recruitment branch of the POEA and, in certain cases, allow the POEA lawyers to take the lead in the prosecution. The
POEA lawyers who act as prosecutors in such cases shall be entitled to receive additional allowances as may be determined by the
POEA Administrator.
The filing of an offense punishable under this Act shall be without prejudice to the filing of cases punishable under other existing laws,
rules or regulations.
SEC. 7. Penalties.
(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not less than twelve (12) years and one (1)
day but not more than twenty (20) years and a fine of not less than One million pesos (P1,000,000.00) nor more than Two million pesos
(P2,000,000.00).
(b) The penalty of life imprisonment and a fine of not less than Two million pesos (P2,000,000.00) nor more than Five million pesos
(P5,000,000.00) shall be imposed if illegal recruitment constitutes economic sabotage as defined therein.
Provided, however, That the maximum penalty shall be imposed if the person illegally recruited is less than eighteen (18) years of age
or committed by a non-licensee or non-holder of authority.
(c) Any person found guilty of any of the prohibited acts shall suffer the penalty of imprisonment of not less than six (6) years and one
(1) day but not more than twelve (12) years and a fine of not less than Five hundred thousand pesos (P500,000.00) nor more than One
million pesos (P1,000,000.00).
If the offender is an alien, he or she shall, in addition to the penalties herein prescribed, be deported without further proceedings.
In every case, conviction shall cause and carry the automatic revocation of the license or registration of the recruitment/m anning
agency, lending institutions, training school or medical clinic.
SEC. 10. Money Claims. Notwithstanding any provision of law to the contrary, the Labor Arbiters of the National Labor Relations
Commission (NLRC) shall have the original and exclusive jurisdiction to hear and decide, within ninety (90) calendar days after the filing
of the complaint, the claims arising out of an employer-employee relationship or by virtue of any law or contract involving Filipino
workers for overseas deployment including claims for actual, moral, exemplary and other forms of damage. Consistent with this
mandate, the NLRC shall endeavor to update and keep abreast with the developments in the global services industry.
The liability of the principal/employer and the recruitment/placement agency for any and all claims under this section shall be joint and
several. This provision shall be incorporated in the contract for overseas employment and shall be a condition precedent for its
approval. The performance bond to de filed by the recruitment/placement agency, as provided by law, shall be answerable for all
money claims or damages that may be awarded to the workers. If the recruitment/placement agency is a juridical being, the corporate
officers and directors and partners as the case may be, shall themselves be jointly and solidarily liable with the corporation or
partnership for the aforesaid claims and damages.
Such liabilities shall continue during the entire period or duration of the employment contract and shall not be affected by any
substitution, amendment or modification made locally or in a foreign country of the said contract.
Any compromise/amicable settlement or voluntary agreement on money claims inclusive of damages under this section shall be paid
within thirty (30) days from approval of the settlement by the appropriate authority.
In case of termination of overseas employment without just, valid or authorized cause as defined by law or contract, or any
unauthorized deductions from the migrant workers salary, the worker shall be entitled to the full reimbursement if his placement fee and
the deductions made with interest at twelve percent (12%) per annum, plus his salaries for the unexpired portion of his employment
contract or for three (3) months for every year of the unexpired term, whichever is less.
In case of a final and executory judgement against a foreign employer/principal, it shall be automatically disqualified, without further
proceedings, from participating in the Philippine Overseas Employment Program and from recruiting and hiring Filipino workers until
and unless it fully satisfies the judgement award.
Noncompliance with the mandatory periods for resolutions of case provided under this section shall subject the responsible officials to
any or all of the following penalties:
(a) The salary of any such official who fails to render his decision or resolution within the prescribed period shall be, or caused to be,
withheld until the said official complies therewith;
(b) Suspension for not more than ninety (90) days; or
(c) Dismissal from the service with disqualification to hold any appointive public office for five (5) years.
Provided, however, That the penalties herein provided shall be without prejudice to any liability which any such official may have
incured under other existing laws or rules and regulations as a consequence of violating the provisions of this paragraph.
Section 8. The first paragraph of Section 13 of Republic Act No. 8042, as amended is hereby amended to read as follows:
SEC. 13. Free Legal Assistance; Preferential Entitlement Under the Witness Protection Program. A mechanism for free legal
assistance for victims of illegal recruitment shall be established in the anti-illegal recruitment branch of the POEA including its regional
offices. Such mechanism shall include coordination and cooperation with the Department of Justice, the Integrated Bar of the
Philippines, and other non-governmental organizations and volunteer groups.
SEC. 16. Mandatory Repatriation of Underage Migrant Workers. Upon discovery or being informed of the presence of migrant
workers whose ages fall below the minimum age requirement for overseas deployment, the responsible officers in the foreign service
shall without delay repatriate said workers and advise the Department of Foreign Affairs through the fastest means of communication
available of such discovery and other relevant information. The license of a recruitment/manning agency which recruited or deployed an
underage migrant worker shall be automatically revoked and shall be imposed a fine of not less than Five hundred thousand pesos
(Php 500,000.00) but not more than One million pesos (Php 1,000,000.00). All fees pertinent to the processing of papers or documents
in the recruitment or deployment shall be refunded in full by the responsible recruitment/manning agency, without need of notice, to the
underage migrant worker or to his parents or guardian. The refund shall be independent of and in addition to the indemnification for the
damages sustained by the underage migrant worker. The refund shall be paid within thirty (30) days from the date of the mandatory
repatriation as provided for in this Act.
SEC. 17. Establishment of National Reintegration Center for Overseas Filipino Workers. -A national reintegration center for overseas
Filipino workers (NRCO) is hereby created in the Department of Labor and Employment for returning Filipino migrant workers which
shall provide a mechanism for their reintegration into the Philippine society, serve as a promotion house for their local employment, and
tap their skills and potentials for national development.
The Department of Labor and Employment, the Overseas Workers Welfare Administration (OWWA), and the Philippine Overseas
Employment Administration (POEA) shall, within ninety (90) days from the effectivity of this Act, formulate a program that would
motivate migrant workers to plan for productive options such as entry into highly technical jobs or undertakings, livelihood and
entrepreneurial development, better wage employment, and investment of savings.
For this purpose, the Technical Education and Skills Development Authority (TESDA), the Technology Livelihood Resource Center
(TLRC), and other government agencies involved in training and livelihood development shall give priority to returnees who had been
employed as domestic helpers and entertainers.
Section 11. Section 18 of Republic Act No. 8042, as amended is hereby amended to read as follows:
SEC. 18. Functions of the National Reintegration Center for Overseas Filipino Workers. -The Center shall provide the following
services:
(a) Develop and support programs and projects for livelihood, entrepreneurship, savings, investments and financial literacy for
returning Filipino migrant workers and their families in coordination with relevant stakeholders, service providers and international
organizations;
(b) Coordinate with appropriate stakeholders, service providers and relevant international organizations for the promotion,
development and the full utilization of overseas Filipino worker returnees and their potentials;
(c) Institute, in cooperation with other government agencies concerned, a computer-based information system on returning Filipino
migrant workers shall be accessible to all local recruitment agencies and employers, both public and private;
(d) Proved a periodic study and assessment of job opportunities for returning Filipino migrant workers;
(e) Develop and implement other appropriate programs to promote the welfare of returning Filipino migrant workers;
(f) Maintain an internet-based communication system for on-line registration and interaction with clients, and maintain and upgrade
computer-based service capabilities of the NRCO;
(g) Develop capacity-building programs for returning overseas Filipino workers and their families, implementers, service providers, and
stakeholders; and
(h) Conduct research for policy recommendations and program development.
Section 12. The second paragraph of Section 19 of Republic Act No. 8042, as amended, is hereby amended to read as follows:
The establishment and operations of the Center shall be a joint undertaking of the various government agencies. The Center shall be
open for twenty-four (24) hours daily including Saturdays, Sundays and holidays, and shall be staffed by Foreign Service personnel,
service attaches or officers who represent other Philippine government agencies abroad and, if available, individual volunteers
and bona fide non-government organizations from the host countries. In countries categorized as highly problematic by the Department
of Foreign Affairs and the Department of Labor and Employment and where there is a concentration of Filipino migrant workers, the
government must provide a Sharia or human rights lawyer, a psychologist and a social worker for the Center. In addition to these
personnel, the government must also hire within the receiving country, in such number as may be needed by the post, public relation
officers or case officers who are conversant, orally and in writing, with the local language, laws, customs and practices. The Labor
Attache shall coordinate the operation of the Center and shall keep the Chief of Mission informed and updated on all matters affecting
it.
SEC. 20. Establishment of a Shared Government Information System for Migration. An interagency committee composed of the
Department of Foreign Affairs and its attached agency, the Commission on Filipinos Overseas, the Department of Labor and
Employment and its attached concerned agencies, the Department of Tourism, the Department of Justice the Bureau of Immigration,
the National Bureau of Investigation, the Department of the Interior and Local Government, the National Telecommunications
Commission, the Commission on Information and Communications Technology, the National Computer Center, the National Statistical
and Coordination Board, the National Statistics Office and other government agencies concerned with overseas employment shall be
established to implement a shared government information system for migration. The interagency committee shall initially make
available to itself the information contained in existing data bases/files. The second phase shall involve linkaging of computer facilities
on order to allow free-flow data exchanges and sharing among concerned agencies.
The inter-agency committee shall be co-chaired by the Department of Foreign Affairs and the Department of Labor and Employment.
TheNationalComputerCentershall provide the necessary technical assistance and shall set the appropriate information and
communications technology standards to facilitate the sharing of information among the member agencies.
The inter-agency committee shall meet regularly to ensure the immediate and full implementation of this section and shall explore the
possibility setting up a central storage facility for the data on migration. The progress of the implementation of this section shall be
include in the report to Congress of the Department of Foreign Affairs and the Department of Labor and Employment under Section 33.
The inter-agency committee shall convene to identify existing data bases which shall be declassified and shared among member
agencies. These shared data bases shall initially include, but not be limited to, the following information:
(a) Masterlists of Filipino migrant workers/overseas Filipino classified according to occupation/job category, civil status, by
country/state of destination including visa classification;
(b) Inventory of pending legal cases involving Filipino migrant workers and other Filipino nationals, including those serving prison
terms;
(c) Masterlists of departing/arriving Filipinos;
(d) Statistical profile on Filipino migrant workers/overseas Filipinos/tourists;
(e) Blacklisted foreigners/undesirable aliens;
(f) Basic data on legal systems, immigration policies, marriage laws and civil and criminal codes in receiving countries particularly
those with large numbers of Filipinos;
(g) List of Labor and other human rights instruments where receiving countries are signatories;
(h) A tracking system of past and present gender disaggregated cases involving male and female migrant workers, including minors;
and
(i) Listing of overseas posts which may render assistance to overseas Filipinos, in general, and migrant workers, in particular.
Section 14. Subparagraph (b.1) of paragraph (b) of Section 23 of Republic Act No. 8042, as amended, is hereby amended to read as
follows:
(b.1) Philippine Overseas Employment Administration. The Administration shall regulate private sector participation in the recruitment
and overseas placement of workers by setting up a licensing and registration system. It shall also formulate and implement, in
coordination with appropriate entities concerned, when necessary, a system for promoting and monitoring the overseas employment of
Filipino workers taking into consideration their welfare and the domestic manpower requirements. It shall be responsible for the
regulation and management of overseas employment from the pre-employment stage, securing the best possible employment terms
and conditions for overseas Filipino workers, and taking into consideration the needs of vulnerable sectors and the peculiarities of sea-
based and land-based workers. In appropriate cases, the Administration shall allow the lifting of suspension of erring
recruitment/manning agencies upon the payment of fine of Fifty thousand pesos (P50,000.00) for every month of suspension.
in addition to its powers and functions, the Administration shall inform migrant workers not only of their rights as workers but also of
their rights as human beings, instruct and guide the workers how to assert their rights and provide the available mechanism to redress
violation of their rights. It shall also be responsible for the implementation, in partnership with other law-enforcement agencies, of an
intensified program against illegal recruitment activities. For this purpose, the POEA shall provide comprehensive Pre-Employment
Orientation Seminars (PEOS) that will discuss topics such as prevention of illegal recruitment and gender-sensitivity.
The Administration shall not engage in the recruitment and placement of overseas workers except on a government-to-government
arrangement only.
In the recruitment and placement of workers to service the requirements for trained and competent Filipino workers of foreign
governments and their instrumentalities, and such other employers as public interests may require, the Administration shall deploy only
to countries where the Philippine has conclude bilateral labor agreements or arrangements: Provided, That such countries shall
guarantee to protect the rights of Filipino migrant workers; and Provided, further, That such countries shall observe and/or comply with
the international laws and standards for migrant workers.
Section 15. Sub-paragraph (b.2) of Paragraph (b) of Section 23 of Republic Act No. 8042, as amended, is hereby amended to read as
follows:
(b.2) Overseas Workers Welfare Administration. The Welfare officer of in his absence, the coordinating officer shall provide the
Filipino migrant worker and his family all the assistance they may need in the enforcement of contractual obligations by agencies or
entities and/or by their principals. In the performance of this function, he shall make representation and may call on the agencies or
entities concerned to conferences or conciliation meetings for the purpose of settling the compliance or problems brought to his
attention. The OWWA shall likewise formulate and implement welfare programs for overseas Filipino workers and their families while
they are abroad and upon their return. It shall ensure the awareness by the overseas Filipino workers and their families of these
programs and other related governmental programs.
In the repatriation of workers to be undertaken by OWWA, the latter shall be authorized to pay repatriation-related expenses, such as
fines or penalties, subject to such guidelines as the OWWA Board of Trustees may prescribe.
Section 16. Under Section 23 of Republic Act No. 8042, as amended, add new paragraphs (c) and (d) with their corresponding
subparagraphs to read as follows:
(c) Department of Health. The Department of Health (DOH) shall regulate the activities and operations of all clinics which conduct
medical, physical, optical, dental, psychological and other similar examinations, hereinafter referred to as health examinations, on
Filipino migrant workers as requirement for their overseas employment. Pursuant to this, the DOH shall ensure that:
(c.1) The fees for the health examinations are regulated, regularly monitored and duly published to ensure that the said fees are
reasonable and not exorbitant;
(c.2) The Filipino migrant worker shall only be required to undergo health examinations when there is reasonable certainty that he or
she will be hired and deployed to the jobsite and only those health examinations which are absolutely necessary for the type of job
applied for or those specifically required by the foreign employer shall be conducted;
(c.3) No group or groups of medical clinics shall have a monopoly of exclusively conducting health examinations on migrant workers
for certain receiving countries;
(c.4) Every Filipino migrant worker shall have the freedom to choose any of the DOH-accredited or DOH-operated clinics that will
conduct his/her health examinations and that his or her rights as a patient are respected. The decking practice, which requires an
overseas Filipino worker to go first to an office for registration and then farmed out to a medical clinic located elsewhere, shall not be
allowed;
(c.5) Within a period of three (3) years from the effectively of this Act, all DOH regional and/or provincial hospitals shall establish and
operate clinics that can be serve the health examination requirements of Filipino migrant workers to provide them easy access to such
clinics all over the country and lessen their transportation and lodging expenses and
(c.6) All DOH-accredited medical clinics, including the DOH-operated clinics, conducting health examinations for Filipino migrant
workers shall observe the same standard operating procedures and shall comply with internationally-accepted standards in their
operations to conform with the requirements of receiving countries or of foreign employers/principals.
Any Foreign employer who does not honor the results of valid health examinations conducted by a DOH-accredited or DOH-operated
clinic shall be temporarily disqualified from the participating in the overseas employment program, pursuant to POEA rules and
regulations.
In case an overseas Filipino worker is found to be not medically fit upon his/her immediate arrival in the country of destination, the
medical clinic that conducted the health examination/s of such overseas Filipino worker shall pay for his or her repatriation back to the
Philippines and the cost of deployment of such worker.
Any government official or employee who violates any provision of this subsection shall be removed or dismissed from service with
disqualification to hold any appointive public office for five(5) years. Such penalty is without prejudice to any other liability which he or
she may have incurred under existing laws, rules or regulations.
(d) Local Government Units. In the fight against illegal recruitment, the local government units (LGUs), in partnership with the POEA,
other concerned government agencies, and non-government organizations advocating the rights and welfare of overseas Filipino
workers, shall take a proactive stance by being primarily responsible for the dissemination of information to their constituents on all
aspects of overseas employment. To carry out this task, the following shall be undertaken by the LGUs:
(d.1) Provide a venue for the POEA, other concerned government agencies and non-government organizations to conduct PEOS to
their constituents on a regular basis;
(d.2) Establish overseas Filipino worker help desk or kiosk in their localities with the objective of providing current information to their
constituents on all the processes aspects of overseas employment. Such desk or kiosk shall, as be linked to the database of all
concerned government agencies, particularly the POEA for its updated lists of overseas job orders and licensed recruitment agencies in
good standing.
Section 17. Subparagraph ( c ) of Section of Republic Act No. 8042, as amended, is hereby amended to read as follows:
( c ) To tap the assistance of reputable law firms, the Integrated Bar of the Philippines, other bar associations and other government
legal experts on overseas Filipino worker laws to complement the governments efforts to provide legal assistance to our migrant
workers;
SEC. 25. Legal Assistance Fund. There is herby established a legal assistance fund for migrant workers, hereinafter referred to as
the Legal Assistance Fund, in the amount of one hundred million pesos (P100,000,000.00) to be constituted from the following sources.
Fifty million pesos (50,000,000.00) from the Contingency Fund of the President;
Thirty million pesos (30,000,000.00) from the Contingency Fund of the President Social Fund;
Twenty million pesos (20,000,000.00) from the Welfare Fund for Overseas Workers established under Letter of Instructions No. 537 as
amended by Presidential Decree Nos. 1694 and 1809; and
An amount appropriated in the annual General Appropriations Act (GAA) which shall not be less than Thirty million pesos
(30,000,000.00) per year: Provided, that the balance of the Legal Assistance Fund (LAF) including the amount appropriated for the year
shall not be less than One hundred million pesos (P100,000,000.00) : Provided, further, That the fund shall be treated as a special fund
in the National Treasury and its balance, including the amount appropriated in the GAA, which shall form part of the Fund, shall not
revert to the General Fund.
Any balances of existing funds which have been set aside by the government specifically as legal assistance or defense fund to help
migrant workers shall upon effectivity of this Act, be turned over to, and form part of, the Fund created under this Act.
SEC. 26. Uses of the Legal Assistance Fund. The Legal Assistance Fund created under the preceding section shall be used
exclusively6 to provide legal services to migrant workers and overseas Filipinos in distress in accordance with the guidelines, criteria
and procedures promulgated in accordance with Section 24 ( a ) herof. The expenditures to be charged against the Fund shall include
the fees for the foreign lawyers to be hired by the Legal Assistant for Migrant Workers Affairs to represent migrant workers facing
charges or in filing cases against erring or abusive employers abroad, bail bonds to secure the temporary releases and other litigation
expenses: Provided, That at the end of every year, the Department of Foreign Affairs shall include in its report to Congress, as provided
for under Section 33 of this Act, the status of the Legal Assistance Fund, including the expenditures from the said fund duly audited by
the Commission on Audit (COA): Provided, further, That the hiring of foreign legal counsels, when circumstances warrant urgent action,
shall be exempt from the coverage of Republic Act No. 9184 or the Government Procurement Act.
SEC. 32. POEA, OWWA and other Boards; Additional Memberships. Notwithstanding any provision of law to the contrary, the
respective Boards of the POEA and the OWWA shall, in addition to their present composition, have three (3) members each who shall
come from the women, sea-based and land-based sectors respectively, to be selected and nominated openly by the general
membership of the sector being represented.
The selection and nomination of the additional members from the women, sea-based and land-based sectors shall be governed by the
following guidelines:
(a) The POEA and the OWWA shall launch a massive information campaign on the selection of nominees and provide for a system of
consultative sessions for the certified leaders or representatives of the concerned sectors, at least three (3) times, within ninety (90)
days before the boards shall be convened, for purposes of selection. The process shall be open, democratic and transparent;
(b) Only non-government organizations that protect and promote the rights and welfare of overseas Filipino workers, duly registered
with the appropriate Philippine government agency and in good standing as such, and in existence for at least three (3) years prior to
the nomination shall be qualified to nominate a representative for each sector to the Board;
(c) The nominee must be at least twenty-five (25) years of age, able to read and write, and a migrant worker at the time of his or her
nomination or was a migrant worker with at least three (3) years experience as such; and
(d) A final list of all the nominees selected by the OWWA/POEA governing boards, which shall consist of three(3) names for each
sector to be represented, shall be submitted to the President and published in a newspaper of general circulation;
Within thirty (30) days from the submission of the list, the President shall select and appoint from the list, the representatives to the
POEA/OWWA governing boards.
The additional members shall have a term of three (3) years and shall be eligible for reappointment for another three (3) years. In case
of vacancy, the President shall in accordance with the provisions of this Act, appoint a replacement who shall serve the unexpired term
of his or her predecessor.
Any executive issuances or orders issued that contravene the provisions of this section shall have no force and effect.
All other government agencies and government-owned or controlled corporations which require at least one (1) representative from the
overseas workers sector to their respective boards shall follow all the applicable provisions of this section.
Section 21. The first and last paragraph of Section 33 of Republic Act No. 8042, as amended, is hereby amended to read as follows:
SEC. 33. Report to Congress. In order to inform the Philippine Congress on the implementation of the policy enunciated in Section 4
hereof, the Department of Foreign Affairs and the Department of Labor and Employment shall submit separately to the said body a
semi-annual report of Philippine foreign posts located in countries hosting Filipino migrant workers. The mid-year report covering the
period January to June shall be submitted not later than October 31 of the same year while the year-end report covering the period July
to December shall be submitted not later than May 31 of the following year. The report shall include, but shall not limited to, the
following information:
Any officer of the government who fails to submit the report as stated in this section shall be subject to an administrative penalty of
dismissal from the service with disqualification to hold any appointive public office for five (5) years.
SEC. 35. Exemption from Travel Tax Documentary Stamp and Airport Fee. All laws to the contrary notwithstanding, the migrant
workers shall be exempt from the payment of travel tax and airport-fee upon proper showing of proof entitlement by the POEA.
The remittances of all overseas Filipino workers, upon showing of the same proof of entitlement by the overseas Filipino workers
beneficiary or recipient, shall be exempt from the payment of documentary stamp tax.
Section 23. A new Section 37-A. of Replublic Act No. 8042, as amended, is hereby added to read as follows:
SEC. 37-A. Compulsory Insurance Coverage for Agency-Hired Workers. In addition to the performance bond to be filed by the
recruitment/manning agency under Section 10, each migrant worker deployed by a recruitment/manning agency shall be covered by a
compulsory insurance policy which shall be secured at no cost to the said worker. Such insurance policy shall be effective for the
duration of the migrant workers employment and shall cover, at the minimum:
(a) Accidental death, with at least Fifteen thousandUnited Statesdollars (US$10,000.00) survivors benefit payable to the migrant
workers beneficiaries;
(c) Permanent total disablement, with at least Seven thousand five hundredUnited Statesdollars (US$7,500.00) disability benefit
payable to the migrant worker. The following disabilities shall be deemed permanent: total, complete loss of sight of both eyes; loss of
two(2) limbs at or above the ankles or wrists; permanent complete paralysis of two (2) limbs; brain injury resulting to incurable imbecility
or insanity;
(d) Repatriation cost of the worker when his/her employment is terminated without any valid cause, including the transport of his or her
personal belongings. In case of death, the insurance provider shall arrange and pay for the repatriation or return of the workers
remains. The insurance provider shall also render any assistance necessary in the transport including, but not limited to, locating a local
licensed funeral home, mortuary or direct disposition facility to prepare the body for transport, completing all documentation, obtaining
legal clearances, procuring consular services, providing necessary casket or air transport container, as well as transporting the remains
including retrieval from site of death and delivery to the receiving funeral home;
(e) Subsistence allowance benefit, with at least One hundredUnited Statesdollars (US$100.00) Per month for a maximum of six (6)
months for a migrant worker who is involved in a case or litigation for the protection of his/her rights in the receiving country;
(f) Money claims arising from employers liability which may be awarded or given to the worker in a judgment or settlement of his or her
case in the NLRC. The insurance coverage for money claims shall be equivalent to at least three (3) months for every year of the
migrant workers employment contract;
In addition to the above coverage, the insurance policy shall also include:
(g) Compassionate visit. When a migrant worker is hospitalized and has been confined for at least seven (7) consecutive days, he shall
be entitled to a compassionate visit by one (1) family member or a requested individual. The insurance company shall pay for the
transportation cost of the family member or requested individual to the major airport closest to the place of hospitalization of the worker.
It is, however, the responsibility of the family member or requested individual to meet all visa and travel document requirements;
(h) Medical evacuation. When an adequate medical facility is not available proximate to the migrant worker, as determined by the
insurance companys physician and/or a consulting physician, evacuation under appropriate medical supervision by the mode of
transport necessary shall be undertaken by the insurance provider; and
(i) Medical repatriation. When medically necessary as determined by the attending physician, repatriation under medical supervision to
the migrant workers residence shall be undertaken by the insurance provider at such time that the migrant worker is medically cleared
for travel by commercial carrier. If the period to receive medical clearance to travel exceeds fourteen (14) days from the date of
discharge from the hospital, an alternative appropriate mode of transportation, such as air ambulance, may be arranged. Medical and
non-medical escorts may be provided when necessary.
Only reputable private insurance companies duly registered with the Insurance Commission (IC), which are in existence and
operational for at least Five hundred million pesos (P500,000,000.00) to be determined by the IC, and with a current year certificate of
authority shall be qualified to provide for the workers insurance coverage. Insurance companies who have directors, partners, officers,
employees or agents with relatives, within the fourth civil degree of consanguinity or affinity, who work or have interest in any of the
licensed recruitment/manning agencies or in any of the government agencies involved in the overseas employment program shall be
disqualified from providing this workers insurance coverage.
The recruitment/manning agency shall have the right to choose from any of the qualified insurance providers the company that will
insure the migrant worker it will deploy. After procuring such insurance policy, the recruitment/manning agency shall provide an
authenticated copy thereof to the migrant worker. It shall then submit the certificate of insurance coverage of the migrant worker to
POEA as a requirement for the issuance of an Overseas Employment Certificate (OEC) to the migrant worker. In the case of seafarers
who are insured under policies issued by foreign insurance companies, the POEA shall accept certificates or other proofs of cover from
recruitment/manning agencies: Provided, That the minimum coverage under sub-paragraphs (a) to (i) are included therein.
Any person having a claim upon the policy issued pursuant to subparagraphs (a), (b), (c), (d) and (e) of this section shall present to the
insurance company concerned a written notice of claim together with pertinent supporting documents. The insurance company shall
forthwith ascertain the truth and extent of the claim and make payment within ten (10) days from the filing of the notice of claim.
Any claim arising from accidental death, natural death or disablement under this section shall be paid by the insurance company
without any contest and without the necessity of providing fault or negligence of any kind on the part of the insured migrant
worker: Provided, That the following documents, duly authenticated by the Philippine foreign posts, shall be sufficient evidence to
substantiate the claim:
(1) Death Certificate In case of natural or accidental death;
(2) Police or Accident Report In case of accidental death; and
(3) Medical Certificate In case of permanent disablement;
For repatriation under subparagraph (d) hereof, a certification which states the reason/s for the termination of the migrant workers
employment and the need for his or her repatriation shall be issued by the Philippine foreign post or the Philippine Overseas Labor
Office (POLO) located in the receiving country.
For subsistence allowance benefit under subparagraph (e), the concerned labor attach or, in his absence, the embassy or consular
official shall issue a certification which states the name of the case, the names of the parties and the nature of the cause of action of the
migrant worker.
For the payment of money claims under subparagraph (f), the following rules shall govern:
(1) After a decision has become final and executor or a settlement/compromise agreement has been reached between the parties at
the NLRC, an order shall be released mandating the respondent recruitment/manning agency to pay the amount adjudged or agreed
upon within thirty (30) days;
(2) The recruitment/manning agency shall then immediately file a notice of claim with its insurance provider for the amount of liability
insured, attaching therewith a copy of the decision or compromise agreement;
(3) Within ten (10) days from the filing of notice of claim, the insurance company shall make payment to the recruitment/manning
agency the amount adjudged or agreed upon, or the amount of liability insured, whichever is lower. After receiving the insurance
payment, the recruitment/manning agency shall immediately pay the migrant workers claim in full, taking into account that in case the
amount of insurance coverage is insufficient to satisfy the amount adjudged or agreed upon, it is liable to pay the balance thereof;
(4) In case the insurance company fails to make payment within ten (10) days from the filing of the claim, the recruitment/ manning
agency shall pay the amount adjudged or agreed upon within the remaining days of the thirty (30)-day period, as provided in the first
subparagraph hereof;
(5) If the workers claim was not settled within the aforesaid thirty (30)-day period, the recruitment/manning agencys performance bond
or escrow deposit shall be forthwith garnished to satisfy the migrant workers claim;
(6) The provision of compulsory workers insurance under this section shall not affect the joint and solidary liability of the foreign
employer and the recruitment/manning agency under Section 10;
(7) Lawyers for the insurance companies, unless the latter is impleaded, shall be prohibited to appear before the NLRC in money
claims cases under this section.
Any question or dispute in the enforcement of any insurance policy issued under this section shall be brought before the IC for
mediation or adjudication.
In case it is shown by substantial evidence before the POEA that the migrant worker who was deployed by a licensed
recruitment/manning agency has paid for the premium or the cost of the insurance coverage or that the said insurance coverage was
used as basis by the recruitment/manning agency to claim any additional fee from the migrant worker, the said licensed
recruitment/manning agency shall lose its license and all its directors, partners, proprietors, officers and employees shall be perpetually
disqualified from engaging in the business of recruitment of overseas workers. Such penalty is without prejudice to any other liability
which such persons may have incurred under existing laws, rules or regulations.
For migrant workers recruited by the POEA on a government-to-government arrangement, the POEA shall establish a foreign
employers guarantee fund which shall be answerable to the workers monetary claims arising from breach of contractual obligations.
For migrant workers classified as rehires, name hires or direct hires, they may opt to be covered by this insurance coverage by
requesting their foreign employers to pay for the cost of the insurance coverage or they may pay for the premium themselves. To
protect the rights of these workers, the POEA shall provide them adequate legal assistance, including conciliation and mediation
services, whether at home or abroad.
At the end of every year, the Department of Labor and Employment and the IC shall jointly make an assessment of the performance of
all insurance providers, based upon the report of the NLRC and the POEA on their respective interactions and experiences with the
insurance companies, and they shall have the authority to ban or blacklist such insurance companies which are known to be evasive or
not responsive to the legitimate claims of migrant workers. The Department of Labor and Employment shall include such assessment in
its year-end report to Congress.
For purposes of this section, the Department of Labor and Employment, IC, NLRC and the POEA, in consultation with the
recruitment/manning agencies and legitimate non-government organizations advocating the rights and welfare of overseas Filipino
workers, shall formulate the necessary implementing rules and regulations.
The foregoing provisions on compulsory insurance coverage shall be subject to automatic review through the Congressional Oversight
Committee immediately after three (3) years from the effectivity of this Act in order to determine its efficacy in favor of the covered
overseas Filipino workers and the compliance by recruitment/manning agencies and insurance companies, without prejudice to an
earlier review if necessary and warranted for the purpose of modifying, amending and/or repealing these subject provisions.
Section 24. A new Section 37-B of Republic Act No. 8042, as amended, is hereby added to read as follows:
Sec. 37-B. Congressional Oversight Committee. There is hereby created a Joint Congressional Oversight Committee composed of
five (5) Senators and five (5) Representatives to be appointed by the Senate President and the Speaker of the House of
Representatives, respectively. The Oversight Committee shall be co-chaired by the chairpersons of the Senate Committee on Labor
and Employment and the House of Representatives Committee on Overseas Workers Affairs. The Oversight Committee shall have the
following duties and functions:
(a) To set the guidelines and overall framework to monitor and ensure the proper implementation of Republic Act No. 8042, as
amended, as well as all programs, projects and activities related to overseas employment;
(b) To ensure transparency and require the submission of reports from concerned government agencies on the conduct of programs,
projects and policies relating to the implementation of Republic Act No. 8042, as amended;
(c) To approve the budget for the programs of the Oversight Committee and all disbursements therefrom, including compensation of all
personnel;
(d) To submit periodic reports to the President of the Philippines and Congress on the implementation of the provisions of Republic Act
No. 8042, as amended;
(e) To determine weaknesses in the law and recommend the necessary remedial legislation or executive measures; and
(f) To perform such other duties, functions and responsibilities as may be necessary to attain its objectives.
The Oversight Committee shall adopt its internal rules of procedure, conduct hearings and receive testimonies, reports, and technical
advice, invite or summon by subpoena ad testificandum any public official or private citizen to testify before it, or require any person by
subpoena duces tecum documents or other materials as it may require consistent with the provisions of Republic Act No. 8042, as
amended.
The Oversight Committee shall organize its staff and technical panel, and appoint such personnel, whether on secondment from the
Senate and the House of Representatives or on temporary, contractual, or on consultancy, and determine their compensation subject to
applicable civil service laws, rules and regulations with a view to ensuring a competent and efficient secretariat.
The members of the Oversight Committee shall not receive additional compensation, allowances or emoluments for services rendered
thereto except traveling, extraordinary and other necessary expenses to attain its goals and objectives.
The Oversight Committee shall exist for a period of ten (10) years from the effectivity of this Act and may be extended by a joint
concurrent resolution.
Section 25. Implementing Rules and Regulations. The departments and agencies charged with carrying out the provisions of this Act,
except as otherwise provided herein, in consultation with the Senate Committee on Labor and Employment and the House of
Representatives Committee on Overseas Workers Affairs, shall, within sixty (60) days after the effectivity of this Act, formulate the
necessary rules and regulations for its effective implementation.
Section 26. Funding. The departments, agencies, instrumentalities, bureaus, offices and government-owned and controlled
corporations charged with carrying out the provisions of this Act shall include in their respective programs the implementation of this
Act, the funding of which shall be included in the General Appropriations Act. The Congressional Oversight Committee on Overseas
Workers Affairs shall have the sum of Twenty-five million pesos (P25,000,000.00), half of which shall be charged against the current
appropriations of the Senate while the other half shall be charged against the current appropriations of the House of Representatives, to
carry out its powers and functions for its initial operations and for fiscal years wherein the General Appropriations Act is reenacted and
no provision for its continued operation is included in such Act. Thereafter, such amount necessary for its continued operations shall be
included in the annual General Appropriations Act.
Section 27. Separability Clause. If, for any reason, may portion of this Act is declared unconstitutional or invalid, the same shall not
affect the validity of the other provisions not affected thereby.
Section 28. Repealing Clause. All laws, decrees, executive orders, issuances, rules and regulations or parts thereof inconsistent with
the provisions of this Act are hereby repealed or modified accordingly.
Section 29. Effectivity. This Act shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general
circulation.
Approved,
REPUBLIC ACT NO. 9442 April 30, 2007

AN ACT AMENDING REPUBLIC ACT NO. 7277, OTHERWISE KNOWN AS THE "MAGNA CARTA FOR DISABLED PERSONS,
AND FOR OTHER PURPOSES"
SECTION 1. A new chapter, to be denominated as "Chapter 8. Other Privileges and Incentives" is hereby added to Title Two of
Republic Act No. 7277, otherwise known as the "Magna Carta for Disabled Persons", with new Sections 32 and 33, to read as follows:
"CHAPTER 8. Other Privileges and Incentives
"SEC. 32. Persons with disability shall be entitled to the following:
(a) At least twenty percent (20%) discount from all establishments relative to the utilization of all services in hotels and similar
lodging establishments; restaurants and recreation centers for the exclusive use or enjoyment of persons with disability;
(b) A minimum of twenty percent (20%) discount on admission fees charged by the theaters, cinema houses, concert halls,
circuses, carnivals and other similar places of culture, leisure and amusement for the exclusive use or enjoyment of persons
with disability;
(c) At least twenty percent (20%) discount for the purchase of medicines in all drugstores for the exclusive use or enjoyment of
persons with disability;
(d) At least twenty percent (20%) discount on medical and dental services including diagnostic and laboratory fees such as,
but not limited to x-rays, computerized tomography scans and blood tests, in all government facilities, subject to guidelines to
be issued by the Department of Health (DOH), in coordination with the Philippine Health Insurance Corporation
(PHILHEALTH);
(e) At least twenty percent (20%) discount on medical and dental services including diagnostic and laboratory fees, and
professional fees of attending doctors in all private hospitals and medical facilities, in accordance with the rules and
regulations to be issued by the DOH, in coordination with the PHILHEALTH;
(f) At least twenty percent (20%) discount on fare for domestic air and sea travel for the exclusive use or enjoyment of persons
with disability;
(g) At least twenty percent (20%) discount in public railways, skyways and bus fare for the exclusive use and enjoyment of
persons with disability;
(h) Educational assistance to persons with disability, for them to pursue primary, secondary, tertiary, post tertiary, as well as
vocational or technical education, In both public and private schools, through the provision of scholarships, grants, financial
aids, subsidies and other incentives to qualified persons with disability, including support for books, learning materials, and
uniform allowance to the extent feasible: provided, that persons with disability shall meet minimum admission requirements;
(i) To the extent practicable and feasible, the continuance of the same benefits and privileges given by the Government
Service Insurance System (GSIS), Social Security System (SSS), and PAG-IBIG, as the case may be, as are enjoyed by
those in actual service;
(j) To the extent possible, the government may grant special discounts in special programs for persons with disability on
purchase of basic commodities, subject to guidelines to be issued for the purpose by the Department of Trade and Industry
(DTI) and the Department of Agriculture (DA); and
(k) Provision of express lanes for persons with disability in all commercial and government establishments; in the absence
thereof, priority shall be given to them.
The abovementioned privileges are available only to persons with disability who are Filipino citizens upon submission of any of
the following as proof of his/her entitlement thereto:
(I) An identification card issued by the city or municipal mayor the barangay captain of the place where the person
with disability resides;
(II) The passport of the persons with disability concerned; or
(III) Transportation discount fare Identification Card (ID) issued by the National Council for the Welfare of Disabled
Persons (NCWDP).
The privileges may not be claimed if the persons with disability claims a higher discount as may be granted by the commercial
establishment and/or under other existing laws or in combination with other discount program/s.
The establishments may claim the discounts granted in sub-sections (a), (b), (c), (e), (f) and (g) as tax deductions based on
the net cost of the goods sold or services rendered: provided, however, That the cost of the discount shall be allowed as
deduction from gross income for the same taxable year that the discount is granted: provided, further, That the total amount of
the claimed tax deduction net of value-added tax if applicable, shall be Included in their gross sales receipts for tax purposes
and shall be subject to proper documentation and to the provisions of the National Internal Revenue Code (NIRC), as
amended."
"SEC. 33. Incentives. - Those caring for and living with a person with disability shall be granted the following incentives;
(a) persons with disability shall be treated as dependents under Section 35(A) of the National Internal Revenue Code, as
amended and as such, individual taxpayers caring for them shall be accorded the privileges granted by the code Insofar as
having dependents under the same section are concerned; and
(b) Individuals or nongovernmental institutions establishing homes, residential communities or retirement villages solely to suit
the needs and requirements of persons with disability shall be accorded the following:
(i) Realty tax holiday for the first five years of operation; and
(ii) Priority in the building and/or maintenance of provincial or municipal roads leading to the aforesaid home
residential community or retirement village."
SEC. 2. Republic Act No. 7277 is hereby amended by inserting a new title, chapter and section after Section 38 to be denominated as
Title 4, chapters 1 and 2 and Sections 39, 40, 41 and 42 to read as follows:
"Title Four
Prohibitions on Verbal, Non-verbal Ridicule and VilificationAgainst Persons with Disability
"CHAPTER 1. Deliverance from Public Ridicule.
"SEC. 39. Public Ridicule . - For purposes of this Chapter, public ridicule shall be defined as an act of making fun or
contemptuous initiating or making mockery of persons with disability whether in writing or in words, or in action due to their
impairment/s.
"SEC. 40. No individual, group or community shall execute any of these acts of ridicule against persons with disability in any
time and place which could intimidate or result in loss of self-esteem of the latter.
"CHAPTER 2. Deliverance from Vilification
"SEC. 41. Vilification. - For purposes of this chapter, vilification shall be defined as:
(a) the utterance of slanderous and abusive statements against a person with disability; and/or
(b) An activity in public which incites hatred towards serious contempt for, or severe ridicule of persons with disability."
"SEC. 42. Any individual, group or community is hereby prohibited from vilifying any person with disability which could result
into loss of self-esteem of the latter."
SEC. 3. Section 46 of Republic Act No. 7277 is hereby amended to read as follows:
"SEC. 46. Penal Clause. -
(a) Any person who violates any provision of this Act shall suffer the following penalties:
(1) For the first violation, a fine of not less than Fifty thousand pesos (P50,000.00) but not exceeding One hundred
thousand pesos (P100,000.00) or imprisonment of not less than six months but not more than two years, or both at
the discretion of the court; and
(2) For any subsequent violation, a fine of not less than One hundred thousand pesos (P100,000.00) but not
exceeding Two hundred thousand pesos (P200,000.00) or imprisonment for not less than two years but not more
than six years, or both at the discretion of the court.
(b) Any person who abuses the privileges granted herein shall be punished with imprisonment of not less than six months or a
fine of not less than Five thousand pesos (P5,000.00), but not more than Fifty thousand pesos (P50,000.00), or both, at the
discretion of the court.
(c) If the violator is a corporation organization or any similar entity, the officials thereof directly involved shall be liable
therefore.
(d) If the violator is an alien or a foreigner, he shall be deported immediately after service of sentence without further
deportation proceedings.
Upon filing of an appropriate complaint, and after notice and hearing the proper authorities may also cause the cancellation or
revocation of the business permit, permit to operate, franchise and other similar privileges granted to any business entity that
fails to abide by the provisions of this Act."
Sec. 4. The title of Republic Act No. 7277 is hereby amended to read as the "Magna Carta for Persons with Disability", and all
references on the said law to "disabled persons" shall likewise be amended to read as "persons with disability".
SEC. 5. The Department of Social Welfare and Development, the National Council for the Welfare of Disabled Persons, and the Bureau
of Internal Revenue, in consultation with the concerned Senate and House committees and other agencies, organizations,
establishments shall formulate an agencies, organizations, establishments shall formulate an implementing rules and regulations
pertinent to the provisions of this Act within six months after the effectivity of this Act.
SEC. 6. This Act shall take effect fifteen (15) days after its publication in any two newspapers of general circulation.
Approved,
This Act which is a consolidation of Senate Bill No. 2580 and House Bill No. 1214 was finally passed by the Senate and the House of
Representatives on February 8, 2007 and February 7, 2007, respectively.
Approved: April 30, 2007
AN ACT GRANTING PATERNITY LEAVE OF SEVEN (7) DAYS WITH FULLPAY TO ALL MARRIED MALE EMPLOYEES IN THE
PRIVATE AND PUBLIC SECTORS FOR THE FIRST FOUR (4) DELIVERIES OF THE LEGITIMATESPOUSE WITH WHOM HE IS
COHABITING AND FOR OTHER PURPOSES.
SECTION 1. Short Title. - This Act shall be known as the "Paternity Leave Act of 1996".
SECTION 2. Notwithstanding any law, rules and regulations to the contrary, every married male employee in the private and public
sectors shall be entitled to a paternity leave of seven (7) days with full pay for the first four (4) deliveries of the legitimate spouse with
whom he is cohabiting. The male employee applying for paternity leave shall notify his employer of the pregnancy of his legitimate
spouse and the expected date of such delivery.
For purposes, of this Act, delivery shall include childbirth or any miscarriage.
SECTION 3. Definition of Term. - For purposes of this Act, Paternity Leave refers to the benefits granted to a married male
employee allowing him not to report for work for seven (7)
days but continues to earn the compensation therefor, on the condition that his spouse has delivered a child or suffered a miscarriage
for purposes of enabling him to effectively lend
support to his wife in her period of recovery and/or in the nursing of the newly-born child.
SECTION 4. The Secretary of Labor and Employment, the Chairman of the Civil Service Commission and the Secretary of Health
shall, within thirty (30) days from the effectivity of
this Act, issue such rules and regulations necessary for the proper implementation of the provisions hereof.
SECTION 5. Any person, corporation, trust, firm, partnership, association or entity found violating this Act or the rules
and regulations promulgated thereunder shall be punished by a fine not exceeding Twenty-five thousand pesos (P25,000) or
imprisonment of not less than thirty (30)days nor more than six (6) months.
If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the penalty of imprisonment
shall be imposed on the entity's responsible officers, including, but not limited to, the president, vice-president, chief executive officer,
general manager, managing director or partner directly responsible therefor.
SECTION 6. Nondiminution Clause. - Nothing in this Act shall be construed to reduce any existing benefits of any form granted
under existing laws, decrees, executive orders, or any
contract agreement or policy between employer and employee.
SECTION 7. Repealing Clause. - All laws, ordinances, rules, regulations, issuances, or parts thereof which are inconsistent with
this Act are hereby repealed or modified accordingly.
SECTION 8. Effectivity. - This Act shall take effect (15) days from its publication in the Official Gazette or in at least two (2)
newspapers of national circulation.
Republic Act No. 1161 June 18, 1954
AN ACT TO CREATE A SOCIAL SECURITY SYSTEM PROVIDING SICKNESS, UNEMPLOYMENT, RETIREMENT, DISABILITY
AND DEATH BENEFITS FOR EMPLOYEES
SECTION 1. Short Title. This Act shall be known as the "Social Security Law" (As amended by Sec. 1, P.D. No. 24, S-1972)."
Section 2. Declaration of Policy. It is the policy of the Republic of the Philippines to establish, develop, promote and perfect a
sound and viable tax-exempt social security service suitable to the needs of the people throughout the Philippines which shall provide
to covered employees and their families protection against the hazards of disability, sickness, old age and death, with a view to
promoting their well-being in the spirit of social justice. (As amended by Sec. 1, R.A. 1792 and Sec. 2, P.D. No. 24, S-1972)
A. Administration
SECTION 3. Social Security System. (a) To carry out the purposes of this Act, the Social Security System with principal place of
business in Metro Manila, Philippines is hereby created. The SSS shall be directed and controlled by a Social Security Commission
composed of the Secretary of Labor and Employment, the SSS Administrator and seven appointive members: three of whom shall
represent the labor group, one of whom shall be a woman; three, the management group, one of whom shall be a woman; and, one,
the general public, to be appointed by the President of the Philippines. The Chairman of the Commission shall be designated by the
President from among its members. The term of the appointive members shall be three years: Provided, That the terms of the first six
appointive members shall be one, two and three years for every two members, respectively.
All vacancies, except through the expiration of the term, shall be filled for the unexpired term only. The apppointive members of the
Commission shall receive one thousand five hundred pesos per diem for each meeting actually attended by them: Provided, That no
compensation shall be paid for more than eight meetings a month. Members of the Commission who hear cases pending before the
Commission, shall also receive a per diem of one thousand five hundred pesos. (As amended by Sec. 2, R.A. 1792, Sec. 1, R.A. 2658,
Sec. 1, R.A. 4857; Sec. 3, P.D. No. 24, S-1972; Sec. 1, P.D. No. 347, S-1973; Sec. 1, P.D. 735, S-1975; Sec. 1, P.D. No. 1202, S-
1977; Sec. 1, E.O. No. 102, S-1986; and R.A. 7688)
(b) The general conduct of the operations and management functions of the SSS shall be vested in the Administrator who shall serve
as the chief executive officer immediately responsible for carrying out the program of the SSS and the policies of the Commission. The
administrator shall be a person who has had previous experience in technical and administrative fields related to the purposes of this
Act. He shall be appointed by the President of the Philippines and shall receive a salary to be fixed by the Commission with the
approval of the President, payable from the funds of the SSS. (As amended by Sec. 1, R.A. 2658; Sec. 3, P.D. No. 24, S-1972; and
Sec. 1, P.D. No. 735, S- 1975)
(c) The Commission, upon the recommendation of the Administrator shall appoint an actuary, and such other personnel as may be
deemed necessary; fix their compensation; prescribe their duties and establish such methods and procedures as may insure the
efficient, honest and economical administration of the provisions and purposes of this Act. Provided, however, That the personnel of the
SSS shall be selected only from civil service eligibles certified by the commissioner of civil service and be subject to civil service rules
and regulations. (As amended by Sec. 1, R.A. 2658 and Sec. 1, P.D. No. 735, S-1975)
Section 4. Powers and Duties of the Commission. For the attainment of its main objectives as set forth in section two hereof, the
Commission shall have the following powers and duties:
(a) To adopt, amend and rescind, subject to the approval of the President, such rules and regulations as may be necessary to
carry out the provisions and purposes of this Act.
(b) To submit annually not later than March 31, 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. (As amended by Sec. 2, P.D. No. 735, S-1975)
(c) To require the Actuary to submit a valuation report on the SSS benefit program every five 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 and the addition of new ones under such rules
and regulations as the Commission may adopt subject to the approval of the President: President, That the actuarial
soundness of the reserve fund shall be guaranteed: Provided, further, That such increases in benefits shall not require any
increase in the rate of contribution. (As amended by Sec. 1, P.D. No. 1636, S-1979 and Sec. 2, E.O. No. 102, S-1986)
(d) To establish branches of the System whenever and wherever it may be expedient or necessary, and to inspect or cause to
be inspected periodically such branches.
(e) To enter into agreements or contracts for such service and aid, as may be needed for the proper, efficient and stable
administration of the System.
(f) To adopt from time to time a budget of expenditures including salaries of personnel, against all funds available to the
System under this Act. (As amended by Sec. 3, R.A. 1792)
(g) To set up its accounting system and provide the necessary personnel therefor. (As amended by Sec. 3, R.A. 1792)
(h) 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.
(i) To acquire property, real or personal, which may be necessary or expedient for the attainment of the purposes of this Act.
(j) 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-salaried employees and for the maintenance of hospitals and
institutions for the sick, aged and infirm employees and immediate members of their families. (As amended by Sec. 2, R.A.
2658 and Sec. 2., P.D. No. 735, S-1975)
(k) To sue and be sued in court.
(l) To perform such other acts as it may deem appropriate for the proper enforcement of this Act.
Section 5. Settlement of Disputes. (a) Any dispute arising under this Act with respect to coverage, benefits, contributions and
penalties thereon or any other matter related thereto, shall be cognizable by the Commission, and any case filed with respect thereto
shall be heard by the Commission, or any of its members, or by hearing officers duly authorized by the Commission and decided within
twenty days after the submission of the evidence. The filing, determination and settlement of disputes shall be governed by the rules
and regulations promulgated by the Commission. (As amended by Sec. 3, R.A. 2658; Sec. 2, R.A. 4857; and Sec. 3, P.D. No. 735, S-
1975)
(b) Appeal to Courts. Any decision of the Commission, in the absence of an appeal therefrom as herein provided, shall become final
fifteen days after the date of notification, and judicial review thereof shall be permitted only after any party claiming to be aggrieved
thereby has exhausted his remedies before the Commission. The Commission shall be deemed to be a party to any judicial action
involving any such decision, and may be represented by an attorney employed by the Commission, or when requested by the
Commission, by the Solicitor General or any fiscal.
(c) Court Review. The decision of the Commission upon any disputed matter may be received both upon the law and the facts by the
Court of Appeals. For the purpose of such review the procedure concerning appeals from the Court of First Instance shall be followed
as far as practicable and consistent with the purposes of this Act. Appeal from a decision of the Commission must be taken within
fifteen days from notification of such decision. If the decision of the Commission involves only questions of law, the same shall be
reviewed by the Supreme Court. No appeal bond shall be required. The case shall be heard in a summary manner, and shall take
precedence over all cases, except that in the Supreme Court, criminal cases wherein life imprisonment or death has been imposed by
the trial court shall take precedence. No appeal shall act as a supersedeas or a stay of the order of the Commission, unless the
Commission itself, or the Court of Appeals or the Supreme Court, shall so order.
(d) Execution of decisions Any decision or award of the Commission after the same has become final and executory shall be
enforced and executed in the same manner as decisions of Courts of First Instance and the Commission shall have the power to issue
to the City or provincial sheriff or the sheriff whom it may appoint such writs of execution as may be necessary for the enforcement of
such decision or award and any person who shall fail or refuse to comply with such decision, award, or writ, after being required to do
so shall, upon application by the Commission, be punished by the proper court for contempt. (As amended by Sec. 4, P.D. No. 24, S-
1972)
Section 6. Auditor and Counsel. (a) The Commissioner on Auditor shall be the ex-officio Auditor of the SSS. He or his
representative shall check and audit all the accounts, funds and properties of the SSS in the same manner and as frequently as the
accounts, funds and properties of the government are checked and audited under existing laws; and he shall have, as far as
practicable, the same powers and duties as he has with respect to the checking and auditing of public accounts, funds and properties in
general.
(b) The Secretary of Justice shall be the ex-officio counsel of the SSS. He or his representative shall act as legal adviser and counsel
thereof. (As amended by Sec. 4, P.D. No. 735, S-1975)
Section 7. Oaths, Witnesses, and Production of Records. When authorized by the Commission, an official or employee thereof
shall have the power to administer oath and affirmation, take depositions, certify to official acts, and issue subpoena and subpoena
duces tecum to compel the attendance of witnesses and the production of books, papers, correspondence and other records deemed
necessary as evidence in connection with any question arising under this Act. Any case of contumacy shall be dealt with in accordance
with the provisions of section five hundred eighty of the Administrative Code.
B. Definitions
SECTION 8. Terms Defined. For the purposes of this Act, the following terms shall, unless the context indicates otherwise, have the
following meanings:
(a) SSS The Social Security System created by this Act. (As amended by Sec. 2, P.D. No. 1636, S-1979)
(b) Commission The Social Security Commission as herein created.
(c) Employer Any person, natural or juridical, domestic or foreign, who carries on in the Philippines any trade, business,
industry, undertaking, or activity of any kind and uses the services of another person who is under his orders as regards the
employment, except the Government and any of its political subdivisions, branches or instrumentalities, including corporations
owned or controlled by the Government: Provided, That a self-employed professional shall be both employee and employer at
the same time. (As amended by Sec. 2, P.D. No. 1636, S-1979)
(d) Employee Any person who performs services for an employer in which either or both mental and physical efforts are
used and who receives compensation for such services, where there is an employer-employee relationship: Provided, That a
self-employed professional shall be both employee and employer at the same time. (As amended by Sec. 4, R.A. 2658 and
Sec. 2, P.D. No. 1636, S-1979)
(e) Dependent The legitimate, legitimated or legally adopted child who is unmarried, not gainfully employed, and not over
twenty-one years of age, or over twenty-one years of age, provided that he is congenitally incapacitated and incapable of self-
support, physically or mentally; the legitimate spouse dependent for support upon the employee; and the legitimate parents
wholly dependent upon the covered employee for regular support. (As amended by Sec. 4, R.A. 2658; Sec. 3, R.A. 4857; and
Sec. 5, P.D. No. 735, S-1975)
(f) Compensation All actual remuneration for employment, including the mandated cost of living allowance, as well as the
cash value of any remuneration paid in any medium other than cash except that part of the remuneration in excess of three
thousand pesos received during the month. (As amended by Sec. 4, R.A. 1792; Sec. 4 R.A. 2658; Sec. 5, P.D. No. 24, S-
1972; and Sec. 3, E.O. No. 102, S-1986)
(g) Monthly salary credit The compensation base for contributions and benefits as indicated in the schedule in section
eighteen of this Act. (As amended by Sec. 4, R.A. 2658 and Sec. 5 P.D. No. 24, S-1972)
(h) Monthly The period from one end of the last payroll period of the preceding month to the end of the last payroll period of
the current month if compensation is on hourly, daily or weekly basis; if on any other basis, "monthly" shall mean a period of
one month.
(i) Contribution The amount paid to the SSS by the employee and by his employer in accordance with section eighteen of
this Act. (As amended by Sec. 5, P.D. No. 24, S-1972)
(j) Employment. Any service performed by an employee for his employer, except
1. Agricultural labor when performed by a share or leasehold tenant or worker who is not paid any regular daily wage
or base pay and who does not work for an uninterrupted period of at least six months in a year; (As amended by Sec.
4, R.A. 2658)
2. Domestic service in a private home;
3. Employment purely casual and not for the purposes of occupation or business of the employer;
4. Service performed by an individual in the employ of his son, daughter, or spouse, and service performed by a child
under the age of twenty-one years in the employ of his parents;
5. Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel is
outside the Philippines;
6. Service performed in the employ of the Philippine Government or an instrumentality or agency thereof;
7. Service performed in the employ of a foreign government or international organization, or their wholly-owned
instrumentality: Provided, however, That his exemption notwithstanding, any foreign government, international
organization, or their wholly-owned instrumentality employing workers in the Philippines or employing Filipinos
outside of 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: Provided,
further, That the terms of such agreement shall conform with the provisions of this Act on coverage and amount of
payment of contributions and benefits: Provided, finally, That the provisions of this Act shall be supplementary to any
such agreement. (As amended by Sec. 1, R.A. 3839; Sec. 3, RA 4857; and Sec. 5, P.D. No. 735, S-1975)
8. Such other services performed by temporary employees who may be excluded by regulation of the Commission.
Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the
services of said contractors. (As amended by Sec. 5, P.D. No. 735, S-1975)
(k) Beneficiaries The dependent spouse until he remarries and dependent children, who shall be the primary beneficiaries.
In their absence, the dependent parents and, subject to the restrictions imposed on dependent children, the legitimate
descendents and illegitimate children who shall be the secondary beneficiaries. In the absence of any of the foregoing, any
other person designated by the covered employee as secondary beneficiary. (As amended by Sec. 4, R.A. 2658; Sec. 3, R.A.
4857; Sec. 1, P.D. No. 177, S-1973; and Sec. 5, P.D. No. 735, S-1975)
(l) Contingency The retirement, death, permanent disability, injury or sickness of the covered employee. (As amended by
Sec. 5, P.D. No. 735, S-1975)
(m) Average monthly salary credit The result obtained by dividing the sum of the monthly salary credits in the sixty-month
period immediately preceding the semester of contingency by the number of months of coverage in the same period, or the
result obtained by dividing the sum of all the monthly salary credits paid prior to the semester of contingency by the number of
calendar months of coverage in the same period, whichever is greater: except where the month of contingency falls within
eighteen months from the month of coverage, in which case it is the result obtained by dividing the sum of all monthly salary
credits paid prior to the month of contingency by the total number of calendar months of coverage in the same period:
Provided, That the injury or sickness which caused the disability shall be deemed as the permanent disability for the purpose
of computing the average monthly salary credit. (As amended by Sec. 3, R.A. 4857 and Sec. 5, P.D. No. 735, S-1975)
(n) Average daily salary credit The result obtained by dividing the sum of the six highest monthly salary credits in the
twelve-month period immediately preceding the semester of contingency by one hundred eighty. (As amended by Sec. 3, R.A.
4857; Sec. 5, P.D. No. 735, S-1975; and Sec. 3, E.O. No. 102, S-1986)
(o) Semester A period of two consecutive quarters ending in the quarter of contingency. (As amended by Sec. 5, P.D. No.
735, S-1975)
(p) Quarter A period of three consecutive calendar months ending on the last day of March, June, September and
December. (As amended by Sec. 3, R.A. 4857)
(q) Replacement ratio The sum of twenty per cent and the quotient obtained by dividing three hundred by the sum of three
hundred forty and the average monthly salary credit. (As amended by Sec. 2, P.D. No. 1636, S-1979)
(r) Credited years of service For a member covered prior to January 1975, nineteen hundred seventy five minus the
calendar year of coverage plus the number of calendar years in which six or more contributions have been paid from January
1975 up to the calendar year containing the semester prior to the contingency. For a member covered in or after January
1975, the number of calendar years in which six or more contributions have been paid from the year of coverage up to the
calendar year containing the semester prior to the contingency. (As amended by Sec. 2, P.D. No. 1636, S-1979)
C. Scope of the System
SECTION 9. Compulsory coverage. (a) Coverage in the SSS shall be compulsory upon all employees not over sixty years of age
and their employers: Provided, That any benefit already earned by employees under private benefit plans existing at the time of the
approval of this Act shall not be discontinued, reduced or otherwise impaired: Provided, further, That private plans which are existing
and in force at the time of compulsory coverage shall be integrated with the plan of the SSS in such a way where the employer's
contribution to his private plan is more that that required of him in this Act he shall pay to the SSS only the contribution required of him
and he shall continue his contribution to such private plan less his contribution to the SSS so that the employer's total contribution to his
private benefit plan and to the Social Security System shall be the same as his contribution to his private benefit plan before the
compulsory coverage: Provided, further, That any changes, adjustments, modifications, eliminations or improvements in the benefits to
be available under the remaining private plan, which may be necessary to adopt by reason of the reduced contribution thereto as a
result of the integration, shall be subject to agreements between the employers and employees concerned: Provided, further, That the
private benefit plan which the employer shall continue for his employees shall remain under the employer's management and control
unless there is an existing agreement to the contrary: Provided, finally, That nothing in this Act shall be construed as a limitation on the
right of employers and employees to agree on and adopt benefits which are over and above those provided under this Act. (As
amended by Sec. 5, R.A. 1972; Sec. 5, R.A. 2658; and Sec. 2, R.A. 3839)
(b) Filipinos recruited in the Philippines by foreign-based employers for employment abroad may be covered by the SSS on a voluntary
basis. (As amended by Sec. 2, P.D. No. 177, S-1973 and Sec. 6, P.D. No. 735, S-1975)
Section 9-A. Compulsory Coverage of the Self-employed. Coverage in the SSS shall also be compulsory upon all self-employed
persons earning P1,800 or more per annum: Provided, That the effectivity of coverage of certain groups of self-employed shall be
determined by the Commission under such rules and regulations it may prescribe: Provided, further, That the effectivity of the coverage
of the following self-employed persons shall be in accordance with section ten (b) hereof:
1. All self-employed professionals licensed by the Professional Regulations Commission or those licensed to practice law.
2. Partners and single proprietors of businesses.

3. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the term
"employee" in section eight (d) of this Act.
4. Professionals athletes, coaches, trainers licensed by the Games and Amusement Board as well as jockeys and trainers
licensed by the Philippine Racing Commission.
Unless otherwise specified herein, all provisions of the SSS Law applicable to covered employees shall also be applicable to the
covered self-employed persons. (As amended by Sec. 3, P.D. No. 1636, S-1979)
Section 10. Effective Date of Coverage. Compulsory coverage of the employer shall take effect on the first day of his operation
and that of the employee on the day of his employment: Provided, That the compulsory coverage of self-employed persons referred to
in paragraphs (1) to (4) shall take effect on the first day of January following the calendar year they started the practice of their
profession or business operations but in no case earlier than January 1, 1980. (As amended by Sec. 6, R.A. 1972; Sec. 6, R.A. 2658;
and Sec. 4, P.D. No. 1636, S-1979)
Section 11. Effect of Separation from Employment. When an employee under compulsory coverage is separated from
employment, his employer's contribution on his account and his obligation to pay contributions arising from that employment shall
cease at the end of the month of separation, but said employee shall be credited with all contributions paid on his behalf and entitled to
benefits according to the provisions of this Act. He may, however, continue to pay the total contributions to maintain his right to full
benefit. (As amended by Sec. 4, R.A. 4857 and Sec. 7, P.D. No. 735, S-1975)
Section 11-A. Effect of Interruption of Business or Professional Income. If the self-employed realizes no net professional or
business income in any calendar year, he shall not be required to pay contributions for the succeeding year. He may, however, be
allowed to continue paying contributions under the same rules and regulations applicable to separated covered employees. (As
amended by Sec. 5, P.D. No. 1636, S-1979)
D. Benefits
SECTION 12. Monthly Pension. (a) The monthly pension shall be the sum of the following:
The average monthly salary credit multiplied by the replacement ratio; and
One and a half per cent of the average monthly salary credit for each credited year of service in excess of ten years.
(b) The monthly pension shall in no case be less than two hundred pesos nor paid in an aggregate amount of less than sixty times the
monthly pension except to a secondary beneficiary: Provided, That the monthly pension of surviving pensioners as of December 31,
1986 shall be increased by twenty per cent. (As amended by Sec. 7, R.A. 1792; Sec. 7, R.A. 2658; Sec. 5, R.A. 4857; Sec. 6, P.D. No.
24, S-1972; Sec. 3, P.D. No. 177, S-1973; Sec. 8, P.D. No. 735, S-1975; Sec. 2, P.D. No. 1202, S-1977; Sec. 6, P.D. No. 1636, S-
1979; Sec. 1, E.O. No. 28, S-1986; and Sec. 4, E.O. No. 102, S-1986)
Section 12-A. Dependents' Pension. The dependents' pension shall be equivalent to ten per cent of the monthly pension for each
dependent child but not exceeding five, beginning with the youngest and without substitution. (As amended by Sec. 3, P.D. No. 1202,
S-1977)
Section 12-B. Retirement Benefits. (a) A covered employee who has paid at least one hundred twenty monthly contributions prior
to the semester of retirement; and who (1) has reached the age of sixty years and is not receiving monthly compensation of at least
three hundred pesos or (2) has reached the age of sixty-five years, shall be entitled for as long as he lives to the monthly pension:
Provided, That his dependents born before his retirement of a marriage subsisting when he was fifty-seven years old shall be entitled to
the dependents' pension. (As amended by Sec. 4, P.D. No. 1202, S-1977)
(b) A covered member who is sixty years old at retirement and who does not qualify for pension benefits under paragraph (a) above,
shall be entitled to a lump sum benefit equal to the total contributions paid by him and on his behalf: Provided, That he is separated
from employment and is not continuing payment of contributions to the SSS on his own.
(c) The monthly pension shall be reduced upon the re-employment of a retired employee who is less than sixty-five years old by an
amount equivalent to one-half his earnings over three hundred pesos. He shall again be subject to section eighteen and his employer to
section nineteen of this Act. (As amended by Sec. 7, R.A. 1792; Sec. 7, R.A. 2658; Sec. 6, P.D. No. 24, S-1972; Sec. 3, P.D. No. 177,
S-1973; Sec. 8, P.D. No. 735; S-1975; Sec. 4, P.D. No. 1202, S-1977; and Sec. 7, P.D. No. 1636, S-1979)
(d) Upon the death of the retired employee pensioner, his primary beneficiaries as of the date of his retirement shall be entitled to eighty
per cent of the monthly pension and his dependents to the dependents' pension: Provided, That if he has no primary beneficiaries and
he dies within sixty months from the start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit
equivalent to the bigger of (1) twenty times the monthly pension or (2) the difference of sixty times the monthly pension and the total
monthly pensions paid by the SSS excluding the dependents' pension. (As amended by Sec. 7, P.D. No. 1636, S-1979 and E.O. No.
102, S-1986)
Section 13. Death Benefits. Upon the covered employee's death, his primary beneficiaries shall be entitled to the monthly pension
and his dependents to the dependents' pension: Provided, That he has paid at least thirty-six monthly contributions prior to the
semester of death: Provided, further, That if the foregoing condition is not satisfied his primary beneficiaries shall be entitled to a lump
sum benefit equivalent to thirty-five times the monthly pension: Provided, further, That if he has no primary beneficiaries, his secondary
beneficiaries shall be entitled to a lump sum benefit equivalent to twenty times the monthly pension: Provided, however, That the
minimum death benefit shall not be less than the total contributions paid by him and his employer on his behalf nor less than one
thousand pesos: Provided, finally, That the beneficiaries of the covered employee who dies without having paid at least three monthly
contributions shall be entitled to the minimum benefit. (As amended by Sec. 5, P.D. No. 1202, S-1977 and Sec. 8, P.D. No. 1636, S-
1979)
Section 13-A. Permanent disability benefits. (a) Upon the covered employee's permanent total disability, if such disability occurs
after he had paid at least thirty-six monthly contributions prior to the semester of disability, he shall be entitled to the monthly pension
and his dependents to the dependents' Pension: Provided, That if the disability occurs before he has paid thirty-six monthly
contributions prior to the semester of disability, he shall be entitled to a lump sum benefit equivalent to thirty-five times the monthly
pension: Provided, further, That the minimum disability benefit shall not be less than the total contributions paid by him and his
employer on his behalf nor less than one thousand pesos: Provided, further, That a covered employee who becomes permanently
totally disabled without having paid at least three monthly contributions shall be entitled to the minimum benefit: Provided, finally, That a
member who (1) received a lump sum benefit and (2) is re-employed not earlier than one year from date of his disability shall again be
subject to compulsory coverage and considered a new member. (As amended by Sec. 6, P.D. No. 1202, S-1977)
(b) The monthly pension shall be reduced upon his re-employment by an amount equivalent to one-half of his earnings over three
hundred pesos. The monthly pension and dependents' pension shall be suspended upon his recovery from the permanent total
disability, or his failure to present himself for examination at least once a year upon notice by the SSS. (As amended by Sec. 6, P.D.
No. 1202, S-1977 and Sec. 9, P.D. No. 1636, S-1979)
(c) Upon the death of the permanent total disability pensioner, his primary beneficiaries as of the date of disability shall be entitled to
eighty per cent of the monthly pension and his dependents to the dependents' pension: Provided, That if he has no primary
beneficiaries and he dies within sixty months from the start of his monthly pension, his secondary beneficiaries shall be entitled to a
lump sum benefit equivalent to the bigger of (1) twenty times the monthly pension or (2) the difference of sixty times the monthly
pension and the total monthly pensions paid by the SSS excluding the dependents' pension. (As amended by Sec. 9, P.D. No. 1636, S-
1979 and Sec. 6, E.O. No. 102, S-1986)
(d) The following disabilities shall be deemed permanent total:
1. Complete loss of sight of both eyes;
2. Loss of two limbs at or above the ankle or wrists;
3. Permanent complete paralysis of two limbs;
4. Brain injury resulting to incurable imbecility or insanity; and,
5. Such cases as determined and approved by the SSS.
(As amended by Sec. 9, P.D. No. 1636, S-1979)
(e) If the disability is permanent partial, and such disability occurs before thirty-six monthly contributions have been paid prior to the
semester of disability, the benefit shall be such percentage of the lump sum benefit described in the preceding paragraph with due
regard to the degree of disability as the Commission may determine. (As amended by Sec. 9, P.D. No. 1636, S-1979)
(f) If the disability is permanent partial and such disability occurs after thirty-six monthly contributions have been paid prior to the
semester of disability, the benefit shall be the monthly pension for permanent total disability payable not longer than the period
designated in the following schedule:
Complete and permanent Number of

loss of use of Months
One thumb 10
One index finger 8
One middle finger 6
One right finger 5
One little finger 3
One big toe 6
One hand 39
One arm 50
One foot 31
One leg 46
One ear 10
Both ears 20
Hearing of one ear 10
Hearing of both ears 20
Sight of one eye 25

(As amended by Sec. 10, P.D. No. 735, S-1975 and Sec. 9, P.D. No. 1636, S-1979)
(g) The percentage degree of disability, which is equivalent to the ratio that the designated number of months of compensability bears
to seventy-five, 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 per cent, in
which case the employee shall be deemed as permanently totally disabled. (As amended by Sec. 9, P.D. No. 1636, S-1979)
Section 13-B. Funeral Benefit. A funeral grant of two thousand pesos shall be paid to help defray the cost of funeral expenses
upon the death of a covered member, permanently totally disabled employee or retiree. (As amended by Sec. 11, P.D. No. 735, S-
1975; Sec. 2, E.O. No. 28, S-1986; and Sec. 7, E.O. No. 102, S-1986)
Section 14. Sickness Benefit. (a) A covered employee who has paid at least three monthly contributions in the twelve-month period
immediately preceding the semester of sickness and is confined for more than three days in a hospital or elsewhere with the
Commission's approval, shall, for each day of compensable confinement or fraction thereof, be paid by his employer, or the SSS, if
such person is unemployed, an allowance equivalent to ninety per cent of his average daily salary credit, subject to the following
conditions: (As amended by Sec. 3, E.O. No. 28, S-1986)
(1) In no case shall the total amount of such daily allowance be less than seven pesos and fifty centavos nor exceed seventy-
five pesos nor paid longer than one hundred twenty days in one calendar year; nor shall any unused portion of the one
hundred twenty days of sickness benefit granted under this section be carried forward and added to the total number of
compensable days allowable in the subsequent year; (As amended by Sec. 3, E.O. No. 28, S-1986 and Sec. 8, E.O. No. 102,
S-1986)
(2) No employee shall be paid any sickness benefit for more than two hundred forty days on account of the same confinement;
and
(3) The employee shall notify his employer of the fact of his sickness or injury within five calendar days after the start of his
confinement unless such confinement is in a hospital or the employee became sick or was injured while working or within the
premises of the employer in which case notification to the employer is not necessary: Provided, That if the member is
unemployed he shall directly notify the SSS of his confinement within five calendar days after the start thereof unless such
confinement is in a hospital in which case notification is also not necessary: Provided, further, That in cases where notification
is necessary, the confinement shall be deemed to have started not earlier than the fifth day immediately preceding the date of
notification. (As amended by Sec. 9, R.A. 2658; Sec. 7, R.A. 4857; Sec. 8, P.D. No. 24, S-1972; Sec. 12, P.D. No. 735, S-
1975; and Sec. 10, P.D. No. 1636, S-1979)
(b) The compensable confinement shall begin on the first day of sickness, and the payment of such allowances shall be promptly made
by the employer every regular payday or on the fifteenth and last day of each month, and similarly in the case of direct payment by the
SSS, for as long as such allowances are due and payable: Provided, That such allowance shall begin only after all sick leaves of
absence with full pay to the credit of the employee shall have been exhausted. (As amended by Sec. 9, R.A. 2658; Sec. 7, R.A. 4857;
Sec. 8, P.D. No. 24, S-1972; Sec. 5, P.D. No. 177, S-1973; and Sec. 14, P.D. No. 735, S-1975)
(c) One hundred per cent of the daily benefits provided in the preceding paragraph shall be reimbursed by the SSS to said employer
upon receipt of satisfactory proof of such payment and legality thereof: Provided, That the employer has notified the SSS of the
confinement within five calendar days after receipt of the notification from the employee: Provided, further, That if the notification to the
SSS is made by the employer beyond five calendar days after receipt of the notification from the employee, said employer shall be
reimbursed only for each day of confinement starting from the tenth calendar day immediately preceding the date of notification to the
SSS: Provided, finally, That the SSS shall reimburse the employer or pay the unemployed member only for confinement within the one
year period immediately preceding the date the claim for benefit or reimbursement is received by the SSS, except confinement in a
hospital in which case the claim for benefit or reimbursement must be filed within one year from the last day of confinement. (As
amended by Sec. 9, R.A. 2658; Sec. 1, R.A. 4482; Sec. 7, R.A. 4857; and Sec. 8, P.D. No. 24, S-1972)
(d) Where the employee has given the required notification but the employer fails to notify the SSS of the confinement or to file the
claim for reimbursement within the period prescribed in this section resulting in the reduction of the benefit or denial of the claim such
employer shall have no right to recover the corresponding daily allowance he advanced to the employee as required in this section. (As
amended by Sec. 8, P.D. No. 24, S-1972 and Sec. 12, P.D. No. 735, S-1972)
(e) The claim of reimbursement shall be adjudicated by the SSS within a period of two months from receipt thereof; Provided, That
should no payment be received by the employer within one month after the period prescribed herein for adjudication the reimbursement
shall thereafter earn simple interest of one per cent per month until paid. (As amended by Sec. 8, P.D. No. 24, S-1972)
(f) The provisions regarding the notification required of the covered employee and the employer as well as the period within which the
claim for benefit or reimbursement may be filed shall apply to all claims filed with the SSS beginning January 1, 1973. (As amended by
Sec. 8, P.D. No. 24, S-1972)
Section 14-A. Maternity Leave Benefit. A covered female employee who has paid at least three monthly maternity contributions in
the twelve-month period preceding the semester of her childbirth, abortion, or miscarriage and who is currently employed shall be paid
a daily maternity benefit equivalent to one hundred per cent of her present basic salary, allowances and other benefits or the cash
equivalents of such benefits for sixty days subject to the following conditions:
(a) That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth which notice
shall be transmitted to the SSS in accordance with the rules and regulations it may provide;
(b) That the payment shall be advanced by the employer in two equal installments within thirty days from the filing of the
maternity leave application;
(c) That in case of caesarian delivery, the employees shall be paid the daily maternity benefit for seventy-eight days;
(d) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act for the
same compensable period of sixty days for the same childbirth, abortion, or miscarriage;
(e) That the maternity benefits provided under this section shall be paid only for the first four deliveries after March 13, 1973;
(f) That the SSS shall immediately reimburse the employer of one hundred per cent of the amount of maternity benefits
advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof; and
(g) That if an employee should give birth or suffer abortion or miscarriage without the required contributions having been
remitted for her by her employer to the SSS, or without the latter having been previously notified by the employer of time of the
pregnancy, the employer shall pay to the SSS damages equivalent to the benefits which said employee would otherwise have
been entitled to, and the SSS shall in turn pay such amount to the employee concerned. (As amended by Sec. 7, P.D. No.
1202, S-1977; Sec. 11, P.D. No. 1636, S-1979; and R.A. 7322)
Section 15. Non-transferability of Benefits. The SSS shall pay the benefits provided for in this Act to such persons as may be
entitled thereto in accordance with the provisions of this Act: Provided, That the beneficiary who is a national of a foreign country which
does not extend benefits to a Filipino beneficiary residing in the Philippines, or which is not recognized by the Philippines, shall not be
entitled to receive any benefit under this Act: Provided, further, That notwithstanding the foregoing, where the best interest of the SSS
will be served, the Commission may direct payments without regard to nationality or country of residence: Provided, further, That if the
recipient is a minor or a person incapable of administering his own affairs, the Commission shall appoint a representative under such
terms and conditions as it may deem proper: Provided, further, That such appointment shall not be necessary in case the recipient is
under the custody of or living with the parents or spouse of the employee in which case the benefits shall be paid to such parents or
spouse, as representative payee of the recipient. Such benefits are not transferrable and no power of attorney or other document
executed by those entitled thereto, in favor of any agent, attorney, or any other person for the collection thereof on their behalf shall be
recognized, except when they are physically unable to collect personally such benefits: Provided, further, That in case of death benefits,
if no beneficiary qualifies under this Act, said benefits shall be paid to the legal heirs in accordance with the law of succession:
Provided, finally, That notwithstanding any law to the contrary, the payment of benefits under this Act shall bar the recovery of similar
benefits under Title II of Book IV of the Labor Code of the Philippines, as amended, during the period of such payment for the same
contingency, and conversely. (As amended by Sec. 10, R.A. 2658; Sec. 4, R.A. 3839; Sec. 8, R.A. 4857; Sec. 8-A, P.D. No. 24, S-
1972; and Sec. 13, P.D. No. 735, S-1975)
Section 16. Exemption from Tax, Legal Process and Lien. All laws to the contrary notwithstanding the SSS and all its assets and
properties, all contributions collected and all accruals thereto and income or investment earnings therefrom as well as all supplies,
equipment, papers or documents which may be required in connection with the operation or execution of this Act shall be exempt from
any tax, assessment, fee, charge, or customs or import duty; and all benefit payments made by the SSS shall likewise be exempt from
all kinds of taxes, fees or charges, and shall not be liable to attachments, garnishments, levy or seizure by or under any legal or
equitable process whatsoever, either before or after receipt by the person or persons entitled thereto, except to pay any debt of the
covered employee to the SSS. No tax measure hereafter enacted shall apply to the SSS, unless it expressly revokes the declared
policy of the State in section two hereof granting tax-exemption to the SSS. Any tax assessment against, and still unpaid by the SSS
shall be null and void. (As amended by Sec. 9, P.D. No. 24, S-1972 and Sec. 14, P.D. No. 735, S-1975)
Section 17. Fee of Agents, Attorneys, etc. No agent, attorney or other person in charge of the preparation, filing or pursuing any
claim for benefit under this Act shall demand or charge for his services any fee, and any stipulation to the contrary shall be null and
void. The retention or deduction of any amount from any benefit granted under this Act for the payment of fees for such services is
prohibited: Provided, however, That any member of the Philippine Bar who appears as counsel in any case heard by the Social Security
Commission shall be entitled to attorney's fees not exceeding ten per cent of the benefits awarded by the Commission, which fees shall
not be payable before the actual payment of the benefits, and any stipulation to the contrary shall be null and void.
Any violation of the provisions of this Section shall be punished by a fine of not less than five hundred pesos nor more than five
thousand pesos, or imprisonment for not less than six months nor more than one year, or both, at the discretion of the court. (As
amended by Sec. 4, P.D. No. 347, S-1973 and Sec. 8, P.D. No. 1202, S-1977)
E. Sources of Funds Employment Records and Reports
SECTION 18. Employee's Contribution. (a) Beginning as of the last day of the calendar month when an employee's compulsory
coverage takes effect and every month thereafter during his employment, the employer shall deduct and withhold from such employee's
monthly salary, wage, compensation or earnings, the employee's contribution in an amount corresponding to his salary, wage,
compensation or earnings during the month in accordance with the following schedule effective on January 1, 1987:
Salary Bracket Range of Monthly Salary Monthly Contribution

Number Compensation Credit Employer Employee Total
I P 1 - 149.99 P 125.00 P 6.40 P 4.10 P 10.50
II 150 - 199.99 175 9 5.7 14.7
III 200 - 249.99 225 11.4 7.5 18.9
IV 250 - 349.99 300 15.2 10 25.2
V 350 - 499.99 425 21.6 14.1 35.7
VI 500 - 699.99 600 30.4 20 50.4
VII 700 - 899.99 800 40.5 26.7 67.2
VIII 900 - 1099.99 1,000.00 50.7 33.3 84
IX 1100 - 1399.99 1,250.00 63.3 41.7 105
X 1400 - 1749.99 1,500.00 76 50 126
XI 1750 - 2249.99 2,000.00 101.3 66.7 168
XII 2250 - 2749.99 2,500.00 126.7 83.3 210
XIII 2750 - OVER 3,000.00 152 100 252
The tabulated schedule for the monthly contribution of the self-employed and voluntary members effective January 1, 1987 shall be as
follows:
Salary Range of Monthly Salary Monthly

Bracket compensation Credit Contribution
Number
I P 1 - 149.99 P 125.00 P 10.00
II 150 - 199.99 175 14
III 200 - 249.99 225 18
IV 250 - 349.99 300 24
V 350 - 499.99 425 34
VI 500 - 699.99 600 48
VII 700 - 899.99 800 64
VIII 900 - 1,099.99 1,000.00 80
IX 1,100 - 1,399.99 1,250.00 100
X 1,400 - 1,749.99 1,500.00 120
XI 1,750 - 2,249.99 2,000.00 160
XII 2,250 - 2,749.99 2,500.00 200
XIII 2,750 - OVER 3,000.00 240
The maximum covered earnings or compensation of all SSS members shall be limited to three thousand pesos per month as provided
in the foregoing schedules unless otherwise provided by the Social Security Commission through rules and regulations taking into
consideration actual calculations and rate of benefits. (As amended by Sec. 10, R.A. 1792; Sec. 11, R.A. 2658; Sec. 10, P.D. No. 24, S-
1972; and Sec. 9, P.D. No. 1202, S-1986)
(b) Every employer shall issue a receipt for all contributions deducted from the employee's compensation or shall indicate such
deductions on the employee's pay envelopes. (As amended by Sec. 12, P.D. No. 1636, S-1979)
Section 19. Employer's Contributions. (a) Beginning as of the last day of the month when an employee's compulsory coverage
takes effect and every month thereafter during his employment, his employer shall pay, with respect to such covered employee, the
employer's contribution in accordance with the schedule indicated in section eighteen of this Act. Notwithstanding any contract to the
contrary, an employer shall not deduct, directly or indirectly, from the compensation of his employees covered by the SSS or otherwise
recover from them the employer's contributions with respect to such employees.
(b) The remittance of such contributions by the employer shall be supported by a quarterly collection list to be submitted to the SSS at
the end of each calendar quarter indicating the correct ID number of the employer, the correct names and SS numbers of the
employees and the total contributions paid for their account during the quarter. (As amended by Sec. 13, P.D. No. 1636, S-1979)
Section 19-A. Contributions of the Self-employed. The contributions to the SSS of the self-employed shall be determined in
accordance with section eighteen of this Act: Provided, That the average monthly net earnings declared by the self-employed at the
time of his registration with the SSS shall be considered as his monthly compensation and he shall pay both the employer and
employee contributions.
Net earnings as understood under this section shall be the net income from his business or profession as reflected in the income tax
return for the immediately preceding year, excluding rental income, dividend, interest investments and the like or all types of incomes
which are not derived from his business registered with the SSS or from the practice of his profession.
The average monthly net earnings declared by the self-employed member at the time of his registration shall remain the basis of his
monthly salary credit, unless he makes, at the start of the year, another declaration of his average monthly net earnings based on his
income tax returns for the immediately preceding year, in which case such latest declaration becomes the new basis of his monthly
salary credit. (As amended by Sec. 14, P.D. No. 1636, S-1979)
Section 20. Government Contribution. As the contribution of the Government to the operation of the System, the Congress shall
annually appropriate out of any funds in the National Treasury not otherwise appropriated, the necessary sum or sums to meet the
estimated expenses of the System for each ensuing year. In addition to this contribution, the Congress shall appropriate from time to
time such sum or sums as may be needed to assure the maintenance of an adequate working balance of the funds of the System as
disclosed by suitable periodic actuarial studies to be made of the operations of the System.
Section 21. Government Guarantee. The benefits prescribed in this Act shall not be diminished and to guarantee said benefits the
Government of the Republic of the Philippines accepts general responsibility for the solvency of the System. (As amended by Sec. 13,
R.A. 1792)
Section 22. Remittance of Contributions. (a) The contribution imposed in the preceding section shall be remitted to the SSS within
the first seven days of each calendar month following the month for which they are applicable or within such time as the Commission
may prescribe. Every employer required to deduct and to remit such contributions shall be liable for their payment and if any
contribution is not paid to the SSS as herein prescribed, he shall pay besides the contribution a penalty thereon of three per cent per
month from the date the contribution falls due until paid. If deemed expedient and advisable by the Commission, the collection and
remittance of contributions shall be made quarterly or semi-annually in advance, the contributions payable by the employees to be
advanced by their respective employers: Provided, That upon separation of an employee, any contribution so paid in advance but not
due shall be credited or refunded to his employer. (As amended by Sec. 12, P.D. No. 24, S-1972)
(b) The contributions payable under this Act in cases where an employer refuses or neglects to pay the same shall be collected by the
SSS in the same manner as taxes are made collectible under the National Internal Revenue Code, as amended. Failure or refusal of
the employer to pay or remit the contributions herein prescribed shall not prejudice the right of the covered employee to the benefits of
the coverage.
The right to institute the necessary action against the employer may be commenced within twenty years from the time the delinquency
is known or the assessment is made by the SSS, or from the time the benefit accrues, as the case may be. (As amended by Sec. 15,
P.D. No. 1636, S-1979)
(c) Should any person, natural or juridical, default in any payment of contributions, the Commission may also collect the same in either
of the following ways:
(1) By an action in court, which shall hear and dispose of the case in preference to any other civil action, or
(2) By issuing a warrant to the Sheriff of any province or city commanding him to levy upon and sell any real and personal
property of the debtor. The Sheriff's sale by virtue of said warrant shall be governed by the same procedure prescribed for
executions against property upon judgments by a court of record.
(d) The last complete record of monthly contributions paid by the employer or the average of the monthly contributions paid during the
past three years as of the date of filing of the action for collection shall be presumed to be the monthly contributions payable by and due
from the employer to the SSS for each of the unpaid month, unless contradicted and overcome by other evidence: Provided, That the
SSS shall not be barred from determining and collecting the true and correct contributions due the SSS even after full payment
pursuant to this paragraph, nor shall the employer be relieved of his liability under section twenty-eight of this Act. (As amended by Sec.
12, P.D. No. 24, S-1972 and Sec. 11, P.D. No. 1202, S-1977)
(e) For purposes of this Section, any employer who is delinquent or has not remitted all the monthly contributions due and payable may
within six months from the issuance of this Executive Order remit said contributions to the SSS and submit the corresponding collection
lists herefore without incurring the prescribed three per cent penalty. In case the employer fails to remit to the SSS the said
contributions within the six months grace period, the penalty of three per cent shall be imposed from the time the contributions first
became due as provided in paragraph (a) of this section. (As amended by Sec. 12, P.D. No. 24, S-1972; Sec. 6, P.D. No. 177, S-1973;
and Sec. 4, E.O. No. 28, S-1986)
Section 22-A. Remittance of Contributions of Self-employed. Self-employed members shall remit their monthly contributions
quarterly on such dates and schedules, as the Commission may specify through rules and regulations.
The penalty of three per cent per month for late payments provided for in paragraph (a) of section twenty-two of this Act and the
manner of collection of contributions specified in paragraphs (b), (c) and (d) of section twenty-two of this Act are also applicable to the
collection of penalties and contributions of the covered self-employed. (As amended by Sec. 16, P.D. No. 1636, S-1979)
Section 23. Method of Collection and Payment. The SSS shall require a complete and proper collection and payment of
contributions and proper identification of the employer and the employee. Payment may be made in cash, checks, stamp, coupons,
tickets, or other reasonable devices that the Commission may adopt. (As amended by Sec. 15, P.D. No. 735, S-1975)
Section 24. Employment Records and Reports. (a) Each employer shall immediately report to the SSS the names, ages, civil
status, occupations, salaries and dependents of all his employees who are subject to compulsory coverage: Provided, That if an
employee subject to compulsory coverage should die or become sick or disabled or reach the age of sixty without the SSS having
previously received any report or written communication about him from his employer or a contribution paid in his name by his
employer, the said employer shall pay to the SSS the damages equivalent to the benefits to which said employee would have been
entitled had his name been reported on time by the employer to the SSS, except that in case of pension benefits, the employer shall be
liable to pay the SSS damages equivalent to five year's monthly pension; including dependents' pension: Provided, further, That if the
contingency occurs within thirty days from the date of employment, the employer shall be relieved of his liability for damages. (As
amended by Sec. 15, R.A. 1792; Sec. 9, R.A. 4857; Sec. 13, P.D. No. 24, S-1972; Sec. 16, P.D. No. 735, S-1975; and Sec. 12, P.D.
No. 1202, S-1977)
(b) Should the employer misrepresent the true date of employment of his employees or remit to the SSS contributions which are less
than those required in this Act, resulting in a reduction of benefits, the employer shall pay to the SSS damages to the extent of such
reduction. (As amended by Sec. 13, P.D. No. 24, S-1972; Sec. 16, P.D. No. 735, S-1975; and Sec. 17, P.D. No. 1636, S-1979)
In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof, the employer shall also be liable for the payment of
the corresponding unremitted contributions and penalties thereon. (As amended by Sec. 17, P.D. No. 1636, S-1979)
(c) The records and reports duly accomplished and submitted to the SSS by the employee or the employer, as the case may be, shall
be kept confidential by the SSS except in compliance with a subpoena duces tecum issued by the Courts, shall not be divulged without
the consent of the Administrator or any official of the SSS duly authorized by him, shall be presumed correct as to the data and other
matters stated therein, unless the necessary corrections to such records and reports have been properly made by the parties
concerned before the right to the benefit being claimed accrues, and shall be made the basis for the adjudication of the claim. If as a
result of such adjudication the SSS in good faith pays a monthly pension to a beneficiary who is inferior in right to another beneficiary or
with whom another beneficiary is entitled to share, such payments shall discharge the SSS from liability, unless and until such other
beneficiary notifies the SSS of his claim prior to the payments. (As amended by Sec. 13, P.D. No. 24, S-1972 and Sec. 16, P.D. No.
735, S-1975)
(d) Every employer shall keep true and accurate work records for such period and containing such information as the Commission may
prescribe, in addition to an "Annual Register of New and Separated Employees" which shall be secured from the SSS wherein the
employer shall enter on the first day of employment or on the effective date of separation, the names of the persons employed or
separated from employment, their SSS numbers, and such other data that the Commission may require and said annual register shall
be submitted to the SSS in the month of January of each year. Such records shall be open for inspection by the SSS or its authorized
representatives quarterly or as often as the SSS may require.
The SSS may also require each employer to submit, with respect to the persons in his employ, reports needed for the effective
administration of this Act. (As amended by Sec. 13, P.D. No. 24, S-1972)
(e) Effective July 1, 1973, each employer shall require as a condition to employment, the presentation of a registration number secured
by the prospective employee from the SSS in accordance with such procedure as the SSS may adopt: Provided, That in case of
employees who have earlier been assigned registration numbers by virtue of a previous employment, such numbers originally assigned
to them should be used for purposes of this section: Provided, further, That the issuance of such registration numbers by the SSS shall
not exempt the employer from complying with the provisions of paragraph (a) of this section. (As amended by Sec. 13, P.D. No. 24, S-
1972)
(f) Notwithstanding any law to the contrary, microfilm copies of original SSS records and reports, duly certified by the official custodian
thereof, shall have evidentiary value as the originals and be admissible as evidence in all legal proceedings. (As amended by Sec. 16,
P.D. No. 735, S-1975)
Section 24-A. Report and Registration of the Self-employed. Each covered self-employed person shall, within thirty days from
the effective date of coverage, report to the SSS his name, age, civil status, and occupation, average monthly net income and his
dependents: Provided, That if after said period of thirty days, he should die or become sick, or disabled or reach the age of sixty without
the SSS having previously received such report, the SSS shall not pay him the corresponding benefit. (As amended by Sec. 18, P.D.
No. 1636, S-1979)
F. Funds of the System
Section 25. Deposit and Disbursements. All moneys paid to or collected by the SSS every year under this Act, and all accruals
thereto shall be deposited, administered and disbursed in the same manner and under the same conditions and requirements as
provided by law for other public special funds: Provided, That not more than twelve per cent of the total yearly contributions plus three
per cent of other revenues shall be disbursed for salaries and wages, purchases of office equipment and materials, operational
expenses and the maintenance of regional offices of the SSS: Provided, further, That if the expenses in any year are less than the
maximum amount permissible, the difference shall not be availed of as additional expenses in the following years. (As amended by
Sec. 16, R.A. 2658; Sec. 5, R.A. 3839; Sec. 10, R.A. 4857; Sec. 13-A, P.D. No. 24, S-1972; Sec. 17, P.D. No. 735, S-1975; and Sec.
10, E.O. No. 102, S-1986)
Section 26. Investment of Reserve Funds. All revenues of the SSS that are not needed to meet the current administrative and
operational expenses incidental to the carrying out of this Act shall be accumulated in a fund to be known as the 'Reserve Fund'. Such
portions of the Reserve Fund as are not needed to meet the current benefit obligations thereof shall be invested to earn an average
annual income of at least nine per cent and shall be known as the 'Investment Reserve Fund' which shall be invested in any or all of the
following: (As amended by Sec. 14, P.D. No. 24, S-1972; Sec. 19, P.D. No. 1636, S-1979; and Sec. 11, E.O. No. 102, S-1986)
(a) In interest-bearing bonds or securities of the Government of the Philippines, or bonds or securities for the payment of the
interest and principal to which the faith and credit of the Republic of the Philippines is pledged.
(b) In interest-bearing deposits or securities in any domestic bank doing business in the Philippines: Provided, That such
deposits shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank,
whichever is smaller: Provided, further, That said bank shall first have been designated as the depository for this purpose by
the Monetary Board of the Bangko Sentral ng Pilipinas: Provided, finally, That such investment in deposits or securities shall
be equitably distributed to all designated banks. (As amended by Sec. 14, P.D. No. 24, S-1972)
(c) In loans or interest-bearing advances to the National Government for the construction of permanent toll bridges, toll roads
or government office buildings in accordance with actuarial considerations and the conditions prescribed by law in such cases:
Provided, That the tolls shall be collected by the SSS for a reasonable fee. (As amended by Sec. 14, P.D. No. 24, S-1972)
(d) In direct housing loans to covered employees and group housing projects giving priority to the low-income groups, up to a
maximum of ninety per cent of the appraised value of the properties to be mortgaged by the borrowers and in loans for the
construction and the maintenance of hospitals and institutions for the sick, aged and infirmed members and their families,
referred to in section 4 (j) of this Act: Provided, That such investment shall not exceed thirty per cent of the Investment
Reserve Fund. (As amended by Sec. 15, R.A. 2658; Sec. 14, P.D. No. 24, S-1972; Sec. 18, P.D. No. 735, S-1975; and Sec.
11, E.O. No. 102, S-1986)
(e) In short and medium term loans to covered employees such as salary, educational, calamity and emergency loans:
Provided, That not more than ten per cent of the Investment Reserve Fund at any time shall be invested for this purpose. (As
amended by Sec. 15, R.A. 2658; Sec. 14, P.D. No. 24, S-1972; and Sec. 11, E.O. No. 102, S-1986)
(f) In other income earning projects and investments secured by first mortgages on real estate collaterals which, in the
determination of the Commission, shall redound to the benefit of the SSS, its members, as well as the public welfare:
Provided, That any such investment shall be made with due diligence and prudence to earn the highest possible interest
consistent with safety. (As amended by Sec. 17, R.A. 1792; Sec. 11, R.A. 4857; and Sec. 14, P.D. No. 24, S-1972)
(g) As part of its investment operations, the SSS shall act as insurer of all or part of its interests on SSS properties mortgaged
to the SSS, or lives of mortgagors whose properties are mortgaged to the SSS. For this purpose, the SSS shall establish a
separate account to be known as the "Mortgagors' Insurance Account." All amounts received by the SSS in connection with
the aforesaid insurance operations shall be placed in the Mortgagors' Insurance Account. The assets and liabilities of the
Mortgagors' Insurance Account shall at all times be clearly identifiable and distinguishable from the assets and liabilities in all
other accounts of the SSS. Notwithstanding any provision of law to the contrary, the assets held in the Mortgagors' Insurance
Account shall not be chargeable with the liabilities arising out of any other business the SSS may conduct but shall be held
and applied exclusively for the benefit of the owners or beneficiaries of the insurance contracts issued by the SSS under this
paragraph.
(h) The SSS may insure any of its interests or part thereof with any private company or reinsurer. The Insurer Commission or
its authorized representatives shall make an examination into the financial condition and methods of transacting business of
the SSS at least once in two years, but such examination shall be limited to the insurance operation of the SSS as authorized
under this section and shall not embrace the other operations of the SSS; and the report of said examination shall be
submitted to the Commission and a copy thereof shall be furnished the office of the President of the Philippines within a
reasonable time after the close of the examination: Provided, That for each examination, the SSS shall pay to the Insurance
Commission an amount equal to the actual expenses of the Insurance Commission in the conduct of the examination including
the salaries of the examiners and of the actuary of the Insurance Commission who have been assigned to make such
examination for the actual time spent in said examination: Provided, further, That the general law on insurance promulgated
thereunder shall have suppletory application insofar as it is not in conflict with the SS Law and its rules and regulations. (As
amended by Sec. 14, P.D. No. 24, S-1972; Sec. 1, P.D. No. 65; Sec. 7, P.D. No. 177, S-1973; and Sec. 18, P.D. No. 735, S-
1975)
(i) In bonds, debentures or other evidences of indebtedness of any solvent corporation or institution created or existing under
the laws of the Philippines: Provided, That the issuing, assuming or guaranteeing entity or its predecessors shall not have
defaulted in the payment of interest on any of its securities and that during each of any three including the last two of the five
fiscal years next preceding the date of acquisition by the SSS of such bonds, debentures, or other evidences of indebtedness,
the net earnings of the issuing, assuming or guaranteeing institution available for its fixed charges, as hereinafter defined, shall
have been not less than one and one-quarter times the total of its fixed charges for such year: Provided, further, That such
investment shall not exceed 10 per cent of the Investment Reserve Fund.
As used in this section, the term 'net earnings available for fixed charges' shall mean net income after deducting operating and
maintenance expenses, taxes other than income taxes, depreciation and depletion; but excluding extraordinary non-recurring
items of income or expense appearing in the regular financial statement of the issuing, assuming or guaranteeing institution.
The Term 'fixed charges' shall include interest on funded and unfunded debt, amortization of debt discount and rentals for
leased properties. (As amended by Sec. 12, E.O. No. 102, S-1986)
(j) In preferred stocks of any solvent corporation or institution created or existing under the laws of the Philippines: Provided,
That the issuing, assuming, or guaranteeing entity or its predecessors has paid regular dividends upon its preferred or
guaranteed stocks for a period of at least three years next preceding the date of investment in such preferred or guaranteed
stocks: Provided, further, That if the stocks are guaranteed, the amount of stocks so guaranteed is not in excess of fifty
percentum of the amount of the preferred or common stocks, as the case may be, of the issuing corporations: Provided,
furthermore, That if the corporation or institution has not paid dividends upon its preferred stocks, the corporation or institution
has sufficient retained earnings to declare dividends for at least two years on such preferred stock: Provided, finally, That such
investment shall not exceed 10 per cent of the Investment Reserve Fund. (As amended by Sec. 12, E.O. No. 102, S-1986)
(k) In common stocks of any solvent corporation or institution created or existing under the laws of the Philippines listed in the
stock exchange with proven track record of profitability and payment of dividends over the last three years: Provided, That
such investment shall not exceed ten per cent of the Investment Reserve Fund. (As amended by Sec. 12, E.O. No. 102, S-
1986)
Section 27. Records and Reports. The administrator shall keep and cause to be keep records of operations, of the funds of the
System and of disbursements thereof and all accounts of payments made out of said funds. During the month of January of each year,
the Administrator shall prepare for submission to the President and to the Congress of the Philippines a report of operations of the
System during the preceding year including statistical data on the number of persons covered and benefited, their occupations and
employment status, the duration and amount of benefits paid, the finances of the System at the close of the said year, and
recommendations. He shall also cause to be published in two newspapers of general circulation in the Philippines a synopsis of the
annual report, showing in particular the status of the finances of the System and the benefits administered.
Section 28. Penal Clause. (a) Whoever, for the purpose of causing any payment to be made under this Act, or under an agreement
thereunder, where none is authorized to be paid, shall make or cause to be made any false statement or representation as to any
compensation paid or received or whoever makes or causes to be made any false statement of a material fact in any claim for any
benefit payable under this Act, or application for loan with the SSS, or whoever makes or causes to be made any false statement,
representation, affidavit, or document in connection with such claim or loan, shall suffer the penalties provided for in Art. one hundred
seventy-two of the Revised Penal Code. (As amended by Sec. 15, P.D. No. 24, S-1972; Sec. 8, P.D. No. 177, S-1973; and Sec. 5, P.D.
No. 347, S-1973)
(b) Whoever shall obtain or receive any money or check under this Act or any agreement thereunder, without being entitled thereto with
intent to defraud any covered employee, employer or the SSS, shall be fined not less than five hundred pesos nor more than five
thousand pesos and imprisoned for not less than six months nor more than one year. (As amended by Sec. 15, P.D. No. 24, S-1972)
(c) Whoever buys, sells, offers for sale, uses, transfers, takes or gives in exchange, or pledges or gives in pledge, except as authorized
in this Act or in regulations made pursuant thereto, any stamp, coupon, ticket, book or other device, prescribed pursuant to section
twenty-three hereof by the Commission for the collection or payment of contributions required herein, shall be fined not less than five
hundred pesos nor more than five thousand pesos, or imprisoned for not less than six months nor more than one year, or both, at the
(d) Whoever, with intent to defraud, alters, forges, makes or counterfeits any stamp, coupon, ticket, book or other device prescribed by
the Commission for the collection or payment of any contribution required herein, or uses, sells, lends, or has in his possession any
such altered, forged, or counterfeited materials or makes, uses, sells, or has in his possession any such altered, forged material in
imitation of the material used in the manufacture of such stamp, coupon, ticket, book, or other device, shall be fined not less than one
thousand pesos nor more than ten thousand pesos or imprisoned for not less than one year nor more than five years, or both, at the
(e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations promulgated by the Commission,
shall be punished by a fine of not less than five hundred pesos nor more than five thousand pesos, imprisonment for not less than six
months nor more than one year, or both, at the discretion of the court: Provided, That where the violation consists in failure or refusal to
register employees or himself, in case of the covered self-employed or to deduct contributions from employee's compensation and remit
the same to the SSS, the penalty shall be a fine of not less than five hundred pesos nor more than five thousand pesos and
imprisonment for not less than six months nor more than one year. (As amended by Sec. 19, R.A. 1792; Sec. 16, R.A. 2658, Sec. 8,
P.D. No. 177, S-1973; and Sec. 20, P.D. No. 1636, S-1979)
(f) If the act or omission penalized by this Act be committed by an association, partnership, corporation or any other institution, its
managing head, directors or partners shall be liable to the penalties provided in this Act for the offense.
(g) Any employee of the System who receives or keeps funds or property belonging, payable or deliverable to the System and who
shall appropriate the same, or shall take or misappropriate or shall consent, or through abandonment or negligence shall permit any
other person to take such property or funds, wholly or partially, or shall otherwise be guilty of misappropriation of such funds or
property, shall suffer the penalties provided in Art. two hundred seventeen of the Revised Penal Code. (As amended by Sec. 16, R.A.
2658)
(h) Any employer who after deducting the monthly contributions or loan amortizations from his employee's compensation; fails to remit
the said deductions to the SSS within thirty days from the date they became due shall be presumed to have misappropriated such
contributions or loan amortizations and shall suffer the penalties provided in Art. three hundred fifteen of the Revised Penal Code. (As
amended by Sec. 15, P.D. No. 24, S-1972)
(i) Criminal action arising from a violation of the provisions of this Act may be commenced by the SSS or the employee concerned
either under this Act or in appropriate cases under the Revised Penal Code: Provided, That such criminal action may be filed by the
SSS in the city or municipality where the SSS provincial or regional office is located if the violation was committed within its territorial
jurisdiction or in Metro Manila, at the option of the SSS. (As amended by Sec. 15, P.D. No. 24, S-1972; Sec. 19, P.D. No. 735, S-1975;
and Sec. 13, P.D. No. 1202, S-1977)
Section 29. Government Aid. The establishment of the Social Security System shall not disqualify the covered employees and
employers from receiving such government assistance, financial or otherwise, as may be provided.
Section 30. Separability Clause. In the event any provision of this Act or the application of such provision to any person or
circumstance is declared invalid, the remainder of this Act or the application of said provision to other persons or circumstances shall
not be affected by such declaration.
Section 31. Saving Clause. The Assembly hereby reserves the right to amend, alter, or repeal any provision of this Act, and no
person shall be or shall be deemed to be vested with any property or other right by virtue of the enactment or operation of this Act. (As
amended by Sec. 21, R.A. 1792 and Sec. 20, P.D. No. 735, S-1975)
Section 32. Effectivity. This Act shall take effect upon its approval.
Approved: June 18, 19541awphil@alf

AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS AMENDED, EXPANDING AND INCREASING THE COVERAGE AND
BENEFITS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM, INSTITUTING REFORMS THEREIN AND FOR OTHER
PURPOSES
SECTION 1. Presidential Decree No. 1146, as amended, otherwise known as the "Revised Government Service Insurance Act of
1977", is hereby further amended to read as follows:
"SECTION 1. Title. The short title of this Act shall be: 'The Government Service Insurance System Act of 1997.'
"A. DEFINITIONS
"SECTION 2. Definition of Terms. Unless the context otherwise indicates, the following terms shall mean:
"(a) GSIS The Government Service Insurance System created by Commonwealth Act No. 186;
"(b) Board The Board of Trustees of the Government Service Insurance System;
"(c) Employer The national government, its political subdivisions, branches, agencies or instrumentalities, including government-
owned or controlled corporations, and financial institutions with original charters, the constitutional commissions and the judiciary;
"(d) Employee or Member Any person, receiving compensation while in the service of an employer as defined herein, whether by
election or appointment, irrespective of status of appointment, including barangay and sanggunian officials;
"(e) Active Member A member who is not separated from the service;
"(f) Dependents Dependents shall be the following: (a) the legitimate spouse dependent for support upon the member or pensioner;
(b) the legitimate, legitimated, legally adopted child, including the illegitimate child, who is unmarried, not gainfully employed, not over
the age of majority, or is over the age of majority but incapacitated and incapable of self-support due to a mental or physical defect
acquired prior to age of majority; and (c) the parents dependent upon the member for support;
"(g) Primary beneficiaries The legal dependent spouse until he/she
remarries and the dependent children;
"(h) Secondary beneficiaries The dependent parents and, subject to the restrictions on dependent children, the legitimate
descendants;
"(i) Compensation The basic pay or salary received by an employee, pursuant to his election/appointment, excluding per diems,
bonuses, overtime pay, honoraria, allowances and any other emoluments received in addition to the basic pay which are not integrated
into the basic pay under existing laws;
"(j) Contribution The amount payable to the GSIS by the member and the employer in accordance with Section 5 of this Act;
"(k) Current Daily Compensation The actual daily compensation or the actual monthly compensation divided by the number of
working days in the month of contingency but not to exceed twenty-two (22) days;
"(l) Average Monthly Compensation (AMC) The quotient arrived at after dividing the aggregate compensation received by the
member during his last thirty-six (36) months of service preceding his separation/retirement/disability/death by thirty-six (36), or by the
number of months he received such compensation if he has less than thirty-six (36) months of service: Provided, That the average
monthly compensation shall in no case exceed the amount and rate as may be respectively set by the Board under the rules and
regulations implementing this Act as determined by the actuary of the GSIS: Provided, further, That initially the average monthly
compensation shall not exceed Ten thousand pesos (P10,000.00), and premium shall be nine percent (9%) and twelve percent (12%)
for employee and employer covering the AMC limit and below; and two percent (2%) and twelve percent (12%) for employee and
employer covering the compensation above the AMC limit;
"(m) Revalued average monthly compensation An amount equal to one hundred seventy percent (170%) of the first One thousand
pesos (P1,000) of the average monthly compensation plus one hundred percent (100%) of the average monthly compensation in
excess of One thousand pesos (P1,000);
"(n) Lump sum The basic monthly pension multiplied by sixty (60);
"(o) Pensioner Any person receiving old-age or permanent total disability pension or any person who has received the lump sum
excluding one receiving survivorship pension benefits as defined in Section 20 of this Act;
"(p) Gainful Occupation Any productive activity that provided the member with income at least equal to the minimum compensation
of government employees;
"(q) Disability Any loss or impairment of the normal functions of the physical and/or mental faculty of a member which reduces or
eliminates his/her capacity to continue with his/her current gainful occupation or engage in any other gainful occupation;
"(r) Total Disability Complete incapacity to continue with his present employment or engage in any gainful occupation due to the loss
or impairment of the normal functions of the physical and/or mental faculties of the member;
"(s) Permanent Total Disability Accrues or arises when recovery from the impairment mentioned in Section 2(Q) is medically remote;
"(t) Temporary Total Disability Accrues or arises when the impaired physical and/or mental faculties can be rehabilitated and/or
restored to their normal functions;
"(u) Permanent Partial Disability Accrues or arises upon the irrevocable loss or impairment of certain portion/s of the physical
faculties, despite which the member is able to pursue a gainful occupation.
"B. MEMBERSHIP IN THE GSIS
"SECTION 3. Compulsory Membership. Membership in the GSIS shall be compulsory for all employees receiving compensation who
have not reached the compulsory retirement age, irrespective of employment status, except members of the Armed Forces of the
Philippines and the Philippine National Police, subject to the condition that they must settle first their financial obligation with the GSIS,
and contractuals who have no employer and employee relationship with the agencies they serve.
"Except for the members of the judiciary and constitutional commissions who shall have life insurance only, all members of the GSIS
shall have life insurance, retirement, and all other social security protection such as disability, survivorship, separation, and
unemployment benefits.
"SECTION 4. Effect of Separation from the Service. A member separated from the service shall continue to be a member, and shall
be entitled to whatever benefits he has qualified to in the event of any contingency compensable under this Act.
"C. SOURCES OF FUNDS
"SECTION 5. Contributions. (a) It shall be mandatory for the member and the employer to pay the monthly contributions specified in
the following schedule:
"Monthly Compensation Percentage of Monthly
Compensation Payable by
Member Employer
I. Maximum Average
Monthly Compensation
(AMC) Limit and Below 9.0% 12.0%
II. Over the Maximum AMC Limit
III.
Up to the Maximum AMC Limit 9.0% 12.0%
In Excess of the AMC Limit 2.0% 12.0%
"Members of the judiciary and constitutional commissioners shall pay three percent (3%) of their monthly compensation as personal
share, and their employers a corresponding three percent (3%) share for their life insurance coverage.
"(b) The employer shall include in its annual appropriation the necessary amounts for its share of the contributions indicated above, plus
any additional premiums that may be required on account of the hazards or risks of its employees' occupation.
"(c) It shall be mandatory and compulsory for all employers to include the payment of contributions in their annual appropriations. Penal
sanctions shall be imposed upon employers who fail to include the payment of contributions in their annual appropriations or otherwise
fail to remit the accurate/exact amount of contributions on time, or delay the remittance of premium contributions to the GSIS. The
heads of offices and agencies shall be administratively liable for non-remittance or delayed remittance of premium contributions to the
GSIS.
"SECTION 6. Collection and Remittance of Contributions. (a) The employer shall report to the GSIS the names of all its employees,
their corresponding employment status, positions, salaries and such other pertinent information, including subsequent changes therein,
if any, as may be required by the GSIS; the employer shall deduct each month from the monthly salary or compensation of each
employee the contribution payable by him in accordance with the schedule prescribed in the rules and regulations implementing this
Act.
"(b) Each employer shall remit directly to the GSIS the employees' and employers' contributions within the first ten (10) days of the
calendar month following the month to which the contributions apply. The remittance by the employer of the contributions to the GSIS
shall take priority over and above the payment of any and all obligations, except salaries and wages of its employees.
"SECTION 7. Interests on Delayed Remittances. Agencies which delay the remittance of any and all monies due the GSIS shall be
charged interests as may be prescribed by the Board but not less than two percent (2%) simple interest per month. Such interest shall
be paid by the employers concerned.
"SECTION 8. Government Guarantee. The government of the Republic of the Philippines hereby guarantees the fulfillment of the
obligations of the GSIS to its members as and when they fall due.
"D. BENEFITS
"SECTION 9. Computation of the Basic Monthly Pension. (a) the basic monthly pension is equal to:
"1) thirty-seven and one-half percent (37.5%) of the revalued average monthly compensation; plus
"2) two and one-half percent (2.5%) of said revalued average monthly compensation for each year of service in excess of fifteen (15)
years: Provided, That the basic monthly pension shall not exceed ninety percent (90%) of the average monthly compensation.
"(b) The basic monthly pension may be adjusted upon the recommendation of the President and General Manager of the GSIS and
approved by the President of the Philippines in accordance with the rules and regulations prescribed by the GSIS: Provided, however,
That the basic monthly pension shall not be less than One thousand and three hundred pesos (P1,300.00): Provided, further, That the
basic monthly pension for those who have rendered at least twenty (20) years of service after the effectivity of this Act shall not be less
than Two thousand four hundred pesos (P2,400.00) a month.
"SECTION 10. Computation of Service. (a) The computation of service for the purpose of determining the amount of benefits
payable under this Act shall be from the date of original appointment/election, including periods of service at different times under one
or more employers, those performed overseas under the authority of the Republic of the Philippines, and those that may be prescribed
by the GSIS in coordination with the Civil Service Commission.
"(b) All service credited for retirement, resignation or separation for which corresponding benefits have been awarded under this Act or
other laws shall be excluded in the computation of service in case of reinstatement in the service of an employer and subsequent
retirement or separation which is compensable under this Act.
"For the purpose of this section the term service shall include full time service with compensation: Provided, That part time and other
services with compensation may be included under such rules and regulations as may be prescribed by the GSIS.
"SEPARATION BENEFITS
"SECTION 11. Separation Benefits. The separation benefit shall consist of: (a) a cash payment equivalent to one hundred percent
(100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve thousand pesos
(P12,000) payable upon reaching sixty (60) years of age or upon separation, whichever comes later: Provided, That the member
resigns or separates from the service after he has rendered at least three (3) years of service but less than fifteen (15) years; or
"(b) A cash payment equivalent to eighteen (18) times his basic monthly pension payable at the time of resignation or separation, plus
an old-age pension benefit equal to the basic monthly pension payable monthly for life upon reaching the age of sixty (60): Provided,
That the member resigns or separates from the service after he has rendered at least fifteen (15) years of service and is below sixty
(60) years of age at the time of resignation or separation.
"SECTION 12. Unemployment or Involuntary Separation Benefits. Unemployment benefits in the form of monthly cash payments
equivalent to fifty percent (50%) of the average monthly compensation shall be paid to a permanent employee who is involuntarily
separated from the service due to the abolition of his office or position usually resulting from reorganization: Provided, That he has been
paying integrated contributions for at least one (1) year prior to separation. Unemployment benefits shall be paid in accordance with the
following schedule:
"Contributions Made Benefit Duration
1 year but less than 3 years 2 months
3 or more years but less than 6 years 3 months
"The first payment shall be equivalent to two (2) monthly benefits. A seven-day (7) waiting period shall be imposed on succeeding
monthly payments.
"All accumulated unemployment benefits paid to the employee during his entire membership with the GSIS shall be deducted from
voluntary separation benefits.
"The GSIS shall prescribe the detailed guidelines in the operationalization of this section in the rules and regulations implementing this
Act.
"RETIREMENT BENEFITS
"SECTION 13. Retirement Benefits. (a) Retirement benefit shall be:
"(1) the lump sum payment as defined in this Act payable at the time of retirement plus an old-age pension benefit equal to the basic
monthly pension payable monthly for life, starting upon expiration of the five-year (5) guaranteed period covered by the lump sum; or
"(2) cash payment equivalent to eighteen (18) months of his basic monthly pension plus monthly pension for life payable immed iately
with no five-year (5) guarantee.
"(b) Unless the service is extended by appropriate authorities, retirement shall be compulsory for an employee at sixty-five (65) years of
age with at least fifteen (15) years of service: Provided, That if he has less than fifteen (15) years of service, he may be allowed to
continue in the service in accordance with existing civil service rules and regulations.
"SECTION 13-A. Conditions for Entitlement. A member who retires from the service shall be entitled to the retirement benefits in
paragraph (a) of Section 13 hereof: Provided, That:
(1) he has rendered at least fifteen (15) years of service;
(2) he is at least sixty (60) years of age at the time of retirement; and
(3) he is not receiving a monthly pension benefit from permanent total disability.
"SECTION 14. Periodic Pension Adjustment. The monthly pension of all pensioners including all those receiving survivorship
pension benefits shall be periodically adjusted as may be recommended by the GSIS' actuary and approved by the Board in
accordance with the rules and regulations prescribed by the GSIS.
"PERMANENT DISABILITY BENEFITS
"SECTION 15. General Conditions for Entitlement. A member who suffers permanent disability for reasons not due to his grave
misconduct, notorious negligence, habitual intoxication, or willful intention to kill himself or another, shall be entitled to the benefits
provided for under Sections 16 and 17 immediately following, subject to the corresponding conditions therefor.
"SECTION 16. Permanent Total Disability Benefits. (a) If the permanent disability is total, he shall receive a monthly income benefit
for life equal to the basic monthly pension effective from the date of disability: Provided, That:
(1) he is in the service at the time of disability; or
(2) if separated from the service, he has paid at least thirty-six (36) monthly contributions within the five (5) year period immediately
preceding his disability, or has paid a total of at least one hundred eighty (180) monthly contributions, prior to his disability:
Provided, further, That if at the time of disability, he was in the service and has paid a total of at least one hundred eighty
(180) monthly contributions, in addition to the monthly income benefit, he shall receive a cash payment equivalent to
eighteen (18) times his basic monthly pension: Provided, finally, That a member cannot enjoy the monthly income benefit
for permanent disability and the old-age retirement simultaneously.
"(b) If a member who suffers permanent total disability does not satisfy conditions (1) and (2) in paragraph (a) of this section but has
rendered at least three (3) years service at the time of his disability, he shall be advanced the cash payment equivalent to one hundred
percent (100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve Thousand
pesos (P12,000) which should have been his separation benefit.
"(c) Unless the member has reached the minimum retirement age, disability benefit shall be suspended when:
"(1) he is reemployed or
"(2) he recovers from disability as determined by the GSIS, whose decision shall be final and binding; or
"(3) he fails to present himself for medical examination when required by the GSIS.
"(d) The following disabilities shall be deemed total and permanent:
"(1) complete loss of sight of both eyes;
"(2) loss of two (2) limbs at or above the ankle or wrist;
"(3) permanent complete paralysis of two(2) limbs;
"(4) brain injury resulting in incurable imbecility or insanity; and
"(5) such other cases as may be determined by the GSIS.
"SECTION 17. Permanent Partial Disability Benefits. (a) If the disability is partial, he shall receive a cash payment in accordance with
a schedule of disabilities to be prescribed by the GSIS: Provided, That he satisfies either conditions (1) or (2) of Section 16(a);
"(b) The following disabilities shall be deemed permanent and partial:
"(1) complete and permanent loss of the use of:
(i) any finger
(ii) any toe

(iii) one arm
(iv) one hand
(v) one foot
(vi) one leg
(vii) one or both ears
(viii) hearing of one or both ears
(ix) sight of one eye
"(2) such other cases as may be determined by the GSIS.
"TEMPORARY DISABILITY BENEFITS
"SECTION 18. Temporary Total Disability Benefit. (a) A member who suffers temporary total disability for reasons not due to any of
the conditions enumerated in Section 15 hereof shall be entitled to seventy-five percent (75%) of his current daily compensation for
each day or fraction thereof of temporary disability benefit not exceeding one hundred twenty (120) days in one calendar year after
exhausting all his sick leave credits and collective bargaining agreement sick leave benefits, if any, but not earlier than the fourth day of
his temporary total disability: Provided, That:
"(1) he is in the service at the time of his disability; or
"(2) if separated, he has rendered at least three (3) years of service and has paid at least six (6) monthly contributions in the twelve-
month period immediately preceding his disability.
Provided, however, That a member cannot enjoy the temporary total disability benefit and sick leave pay simultaneously: Provided,
further, That if the disability requires more extensive treatment that lasts beyond one hundred twenty (120) days, the payment of the
temporary total disability benefit may be extended by the GSIS but not to exceed a total of two hundred forty (240) days.
"(b) The temporary total disability benefit shall in no case be less than Seventy pesos (P70.00) a day.
"(c) The notices required of the member and the employer, the mode of payment, and the other requirements for entitlement to
temporary total disability benefits shall be provided in the rules and regulations to be prescribed by the GSIS.
"SECTION 19. Non-scheduled Disability. For injuries or illnesses resulting in a disability not listed in the schedule of partial/total
disability, as provided herein, the GSIS shall determine the nature of the disability and the corresponding benefits therefor.
"SURVIVORSHIP BENEFITS
"SECTION 20. Survivorship Benefits. When a member or pensioner dies, the beneficiaries shall be entitled to survivorship benefits
provided in Sections 21 and 22 hereunder subject to the conditions therein provided for. The survivorship pension shall consist of:
(1) the basic survivorship pension which is fifty percent (50%) of the basic monthly pension; and
(2) the dependent children's pension not exceeding fifty percent (50%) of the basic monthly pension.
(3)
"SECTION 21. Death of a Member. (a) Upon the death of a member, the primary beneficiaries shall be entitled to:
(1) survivorship pension: Provided, That the deceased:
(i) was in the service at the time of his death; or
(ii) if separated from the service, has at least three (3) years of service at the time of his death and has paid thirty-six (36)
monthly contributions within the five-year period immediately preceding his death; or has paid a total of at least one hundred eighty
(180) monthly contributions prior to his death; or
(2) the survivorship pension plus a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for
every year of service: Provided, That the deceased was in the service at the time of his death with at least three (3) years of service; or
(3) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid
contributions, but not less than Twelve thousand pesos (P12,000.00): Provided, That the deceased has rendered at least three (3)
years of service prior to his death but does not qualify for the benefits under the item (1) or (2) of this paragraph.
(b) The survivorship pension shall be paid as follows:
(1) when the dependent spouse is the only survivor, he/she shall receive the basic survivorship pension for life or until
he/she remarries;
(2) when only dependent children are the survivors, they shall be entitled to the basic survivorship pension for as long
as they are qualified, plus the dependent children's pension equivalent to ten percent (10%) of the basic monthly pension for
every dependent child not exceeding five (5), counted from the youngest and without substitution;
(3) when the survivors are the dependent spouse and the dependent children, the dependent spouse shall receive
the basic survivorship pension for life or until he/she remarries, and the dependent children shall receive the dependent
children's pension mentioned in the immediately preceding paragraph (2) hereof.
(c) In the absence of primary beneficiaries, the secondary beneficiaries shall be entitled to:
(1) the cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year
of service he paid contributions, but not less than Twelve thousand pesos (P12,000): Provided, That the member is in the
service at the time of his death and has at least three (3) years of service; or
(2) in the absence of secondary beneficiaries, the benefits under this paragraph shall be paid to his legal heirs.
(d) For purposes of the survivorship benefits, legitimate children shall include legally adopted and legitimate children.
"SECTION 22. Death of a Pensioner. Upon the death of an old-age pensioner or a member receiving the monthly income benefit for
permanent disability, the qualified beneficiaries shall be entitled to the survivorship pension defined in Section 20 of this Act, subject to
the provisions of paragraph (b) of Section 21 hereof. When the pensioner dies within the period covered by the lump sum, the
survivorship pension shall be paid only after the expiration of the said period.
"FUNERAL BENEFITS
"SECTION 23. Funeral Benefit. The amount of funeral benefit shall be determined and specified by the GSIS in the rules and
regulations but shall not be less than Twelve thousand pesos (P12,000.00): Provided, That it shall be increased to at least Eighteen
thousand pesos (P18,000.00) after five (5) years and shall be paid upon the death of:
(a) an active member as defined under Section 2(e) of this Act; or
(b) a member who has been separated from the service, but who may be entitled to future benefit pursuant to Section 4 of this Act; or
(c) a pensioner, as defined in Section 2(o) of this Act; or
(d) a retiree who at the time of his retirement was of pensionable age under this Act but who opted to retire under Republic Act No.
1616.
"LIFE INSURANCE BENEFITS
"SECTION 24. Compulsory Life Insurance. All employees except for Members of the Armed Forces of the Philippines (AFP) and the
Philippine National Police (PNP) shall, under such terms and conditions as may be promulgated by the GSIS, be compulsorily covered
with life insurance, which shall automatically take effect as follows:
(1) for those employed after the effectivity of this Act, their insurance shall take effect on the date of their employment;
(2) for those whose insurance will mature after the effectivity of this Act, their insurance shall be deemed renewed on the day following
the maturity or expiry date of their insurance;
(3) for those without any life insurance as of the effectivity of this Act, their insurance shall take effect following said effectivity.
"SECTION 25. Dividends. An annual dividend may be granted to all members of the GSIS whose life insurance is in force for at least
one (1) year in accordance with a dividend allocation formula to be determined by the GSIS.
"SECTION 26. Optional Insurance. Subject to the rules and regulations prescribed by the GSIS, a member may apply for insurance
and/or pre-need coverage embracing life, health, hospitalization, education, memorial plans, and such other plans as may be designed
by the GSIS, for himself and/or his dependents. Any employer may likewise apply for group insurance coverage for its employees. The
payment of the premiums/installments for optional insurance and pre-need products may be made by the insured or his employer
and/or any person acceptable to the GSIS.
"SECTION 27. Reinsurance. The GSIS may reinsure any of its interests or part thereof with any private company or reinsurer
whether domestic or foreign: Provided, That the GSIS shall submit an annual report on its reinsurance operations to the Insurance
Commission.
"E. ADJUDICATION OF CLAIMS AND DISPUTES
"SECTION 28. Prescription. Claims for benefits under this Act except for life and retirement shall prescribe after four (4) years from
the date of contingency.
"SECTION 29. Facility of Payment. The GSIS shall prescribe rules and regulations to facilitate payment of benefit, proceeds, and
claims under this Act and any other laws administered by the GSIS. Payments made by the GSIS prior to its receipt of an adverse
claim, to a beneficiary or claimant subsequently found not entitled thereto, shall not bar the legal and eligible recipient to his right to
demand the payment of benefits, proceeds, and claims from the GSIS, who shall, however, have a right to institute the appropriate
action in a court of law against the ineligible recipient.
"SECTION 30. Settlement of Disputes. The GSIS shall have original and exclusive jurisdiction to settle any dispute arising under this
Act and any other laws administered by the GSIS.
The Board may designate any member of the Board, or official of the GSIS who is a lawyer, to act as hearing officer to receive
evidence, make findings of fact and submit recommendations thereon. The hearing officer shall submit his findings and
recommendations, together with all the documentary and testimonial evidence to the Board within thirty (30) working days from the time
the parties have closed their respective evidence and filed their last pleading. The Board shall decide the case within thirty (30) days
from the receipt of the hearing officer's findings and recommendations. The cases heard directly by the Board shall be decided within
thirty (30) working days from the time they are submitted by the parties for decision.
"SECTION 31. Appeals. Appeals from any decision or award of the Board shall be governed by Rules 43 and 45 of the 1997 Rules
of Civil Procedure adopted by the Supreme Court on April 8, 1997 which will take effect on July 1, 1997: Provided, That pending cases
and those filed prior to July 1, 1997 shall be governed by the applicable rules of procedure: Provided, further, That the appeal shall take
precedence over all other cases except criminal cases when the penalty of life imprisonment or death or reclusion perpetua is
imposable.
The appeal shall not stay the execution of the order or award unless ordered by the Board, by the Court of Appeals or by the Supreme
Court and the appeal shall be without prejudice to the special civil action of certiorari when proper.
"SECTION 32. Execution of Decision. When no appeal is perfected and there is no order to stay by the Board, by the Court of
Appeals or by the Supreme Court, any decision or award of the Board shall be enforced and executed in the same manner as decisions
of the Regional Trial Court. For this purpose, the Board shall have the power to issue to the city or provincial sheriff or its appointed
sheriff such writs of execution as may be necessary for the enforcement of such decision or award, and any person who shall fail or
refuse to comply with such decision, award, writ or process after being required to do so, shall, upon application by the GSIS, be
punished for contempt.
"SECTION 33. Oaths, Witnesses, and Production of Records. When authorized by the Board, an official or employee of the GSIS
shall have the power to administer oath and affirmation, take depositions, certify to official acts, and issue subpoena ad testificandum
and subpoena duces tecum to compel the attendance of witnesses and the production of books, papers, correspondences, and other
records deemed necessary as evidence in connection with any question arising under this Act. Any case of contumacy shall be dealt
with in accordance with the provisions of Section 580 of the Revised Administrative Code.
"F. FUNDS OF THE GSIS
"SECTION 34. Funds. All contributions payable under Section 5 of this Act together with the earnings and accruals thereon shall
constitute the GSIS Social Insurance Fund. The said Fund shall be used to finance the benefits administered by the GSIS under this
Act. In addition, the GSIS shall administer the optional insurance fund for the insurance coverage described in Section 26 hereof, the
employees' Compensation Insurance Fund created under P.D. 626, as amended, the General Insurance Fund created under Act No.
656, as amended, and such other special funds existing or that may be created for special groups or persons rendering services to the
government. The GSIS shall maintain the required reserves to guarantee the fulfillment of its obligations under this Act.
"The funds of the GSIS shall not be used for purposes other than what are provided for under this Act. Moreover, no portion of the
funds of the GSIS or income thereof shall accrue to the General Fund of the national government and its political subdivisions,
instrumentalities and other agencies including government-owned and controlled corporations except as may be allowed under this Act.
"SECTION 35. Deposits and Disbursements. All revenues collected and all accruals thereto shall be deposited, administered and
disbursed in accordance with the law. A maximum expense loading of twelve percent (12%) of the yearly revenues from all sources
may be disbursed for administrative and operational expenses except as may be otherwise approved by the President of the
Philippines on the basis of actuarial and management studies.
"SECTION 36. Investment of Funds. The funds of the GSIS which are not needed to meet the current obligations may be invested
under such terms and conditions and rules and regulations as may be prescribed by the Board: Provided, That investments shall satisfy
the requirements of liquidity, safety/security and yield in order to ensure the actuarial solvency of the funds of the GSIS: Provided,
further, That the GSIS shall submit an annual report on all investments made to both Houses of Congress of the Philippines, to wit:
(a) in interest-bearing bonds or securities or other evidence of indebtedness of the Government of the Philippines;
(b) In interest-bearing deposits or securities in any domestic bank doing business in the Philippines: Provided, That in the case of such
deposits, these shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank,
whichever is smaller: Provided, further, That said bank has prior designation as a depository for the purpose by the Monetary Board of
the Central Monetary Authority;
(c) in direct housing loans to members and group housing projects secured by first mortgage, giving priority to the low income groups
and in short-and-medium-term loans to members such as salary, policy, educational, emergency, stock purchase plan and other similar
loans: Provided, That no less than forty percent (40%) of the investable fund of the GSIS Social Insurance Fund shall be invested for
these purposes;
(d) in bonds, securities, promissory notes or other evidence of indebtedness of educational or medical institutions to finance the
construction, improvement and maintenance of schools and hospitals;
(e) in real estate property including shares of stocks involving real estate property and investments secured by first mortgages on real
estate or other collaterals acceptable to the GSIS: Provided, That such investments shall, in the determination of the Board, redound to
the benefit of the GSIS, its members, as well as the general public;
(f) In debt instruments and other securities traded in the secondary markets;
(g) In loans to, or in bonds, debentures, promissory notes or other evidence of indebtedness of any solvent corporation creat ed or
existing under the laws of the Philippines;
(h) In common and preferred stocks of any solvent corporation or financial institution created or existing under the laws of the
Philippines listed in the stock exchange with proven track record or profitability over the last three (3) years and payment of dividends at
least once over the same period;
(i) In domestic mutual funds including investments related to the operations of mutual funds; and
(j) In foreign mutual funds and in foreign currency deposits or foreign currency-denominated debts, non-speculative equities and other
financial instruments or other assets issued in accordance with existing laws of the countries where such financial instruments are
issued: Provided, That these instruments or assets are listed in bourses of the respective countries where these instruments or assets
are issued: Provided, further, That the issuing company has proven track record of profitability over the last three (3) years and
payment of dividends at least once over the same period.
"SECTION 37. Records and Reports. The GSIS shall keep and cause to keep such records as may be necessary for the purpose of
making actuarial studies, calculations and valuations of the funds of the GSIS including such data needed in the computation of rates of
disability, mortality, morbidity, separation and retirement among the members and any other information useful for the adjustment of the
benefits of the members. The GSIS shall maintain appropriate books of accounts to record its assets, liabilities, income, expenses,
receipts and disbursements of funds and other financial transactions and operations.
"SECTION 38. Examination and Valuation of the Funds. The GSIS shall make a periodic actuarial examination and valuation of its
funds in accordance with accepted actuarial principles.
"SECTION 39. Exemption from Tax, Legal Process and Lien. It is hereby declared to be the policy of the State that the actuarial
solvency of the funds of the GSIS shall be preserved and maintained at all times and that contribution rates necessary to sustain the
benefits under this Act shall be kept as low as possible in order not to burden the members of the GSIS and their employers. Taxes
imposed on the GSIS tend to impair the actuarial solvency of its funds and increase the contribution rate necessary to sustain the
benefits of this Act. Accordingly, notwithstanding any laws to the contrary, the GSIS, its assets, revenues including all accruals thereto,
and benefits paid, shall be exempt from all taxes, assessments, fees, charges or duties of all kinds. These exemptions shall continue
unless expressly and specifically revoked and any assessment against the GSIS as of the approval of this Act are hereby considered
paid. Consequently, all laws, ordinances, regulations, issuances, opinions or jurisprudence contrary to or in derogation of this provision
are hereby deemed repealed, superseded and rendered ineffective and without legal force and effect.
"Moreover, these exemptions shall not be affected by subsequent laws to the contrary unless this section is expressly, specifically and
categorically revoked or repealed by law and a provision is enacted to substitute or replace the exemption referred to herein as an
essential factor to maintain or protect the solvency of the fund, notwithstanding and independently of the guaranty of the national
government to secure such solvency or liability.
"The funds and/or the properties referred to herein as well as the benefits, sums or monies corresponding to the benefits under this Act
shall be exempt from attachment, garnishment, execution, levy or other processes issued by the courts, quasi-judicial agencies or
administrative bodies including Commission on Audit (COA) disallowances and from all financial obligations of the members, including
his pecuniary accountability arising from or caused or occasioned by his exercise or performance of his official functions or duties, or
incurred relative to or in connection with his position or work except when his monetary liability, contractual or otherwise, is in favor of
the GSIS.
"G. ADMINISTRATION
"SECTION 40. Implementing Body. The Government Service Insurance System as created under Commonwealth Act No. 186 shall
implement the provisions of this Act.
"SECTION 41. Powers and Functions of the GSIS. The GSIS shall exercise the following powers and functions:
(a) to formulate, adopt, amend and/or rescind such rules and regulations as may be necessary to carry out the provisions and purposes
of this Act, as well as the effective exercise of the powers and functions, and the discharge of duties and responsibilities of the GSIS, its
officers and employees;
(b) to adopt or approve the annual and supplemental budget of receipts and expenditures including salaries and allowances of the
GSIS personnel; to authorize such capital and operating expenditures and disbursements of the GSIS as may be necessary and proper
for the effective management and operation of the GSIS;
(c) to invest the funds of the GSIS, directly or indirectly, in accordance with the provisions of this Act;
(d) to acquire, utilize or dispose of, in any manner recognized by law, real or personal property in the Philippines or elsewhere
necessary to carry out the purposes of this Act;
(e) to conduct continuing actuarial and statistical studies and valuations to determine the financial condition of the GSIS and taking into
consideration such studies and valuations and the limitations herein provided, re-adjust the benefits, contributions, premium rates,
interest rates or the allocation or re-allocation of the funds to the contingencies covered;
(f) to have the power of succession;
(g) to sue and be sued;
(h) to enter into, make, perform and carry out contracts of every kind and description with any person, firm or association or corporation,
domestic or foreign;
(i) to carry on any other lawful business whatsoever in pursuance of, or in connection with the provisions of this Act;
(j) to have one or more offices in and outside of the Philippines, and to conduct its business and exercise its powers throughout and in
any part of the Republic of the Philippines and/or in any or all foreign countries, states and territories: Provided, That the GSIS shall
maintain a branch office in every province where there exists a minimum of fifteen thousand (15,000) membership;
(k) to borrow funds from any source, private or government, foreign or domestic, only as an incident in the securitization of housing
mortgages of the GSIS and on account of its receivables from any government or private entity;
(l) to invest, own or otherwise participate in equity in any establishment, firm or entity;
(m) to approve appointments in the GSIS except appointments to positions which are policy determining, primarily confidential or highly
technical in nature according to the Civil Service rules and regulations: Provided, That all positions in the GSIS shall be governed by a
compensation and position classification system and qualifications standards approved by the GSIS Board of Trustees based on a
comprehensive job analysis and audit of actual duties and responsibilities: Provided, further, That the compensation plan shall be
comparable with the prevailing compensation plans in the private sector and shall be subject to the periodic review by the Board no
more than once every four (4) years without prejudice to yearly merit reviews or increases based on productivity and profitability;
(n) to design and adopt an Early Retirement Incentive Plan (ERIP) and/or financial assistance for the purpose of retirement for its own
personnel;
(o) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits extended to
members or other persons, whether natural or juridical;
(p) to enter into agreement with the Social Security System or any other entity, enterprise, corporation or partnership for the benefit of
members transferring from one system to another subject to the provision of Republic Act No. 7699, otherwise known as the Portability
Law;
(q) to be able to float proper instrument to liquefy long-term maturity by pooling funds for short-term secondary market;
(r) to submit annually, not later than June 30, a public report to the President of the Philippines and the Congress of the Philippines
regarding 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 programs of the GSIS;
(s) to maintain a provident fund, which consists of contributions made by both the GSIS 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;
(t) to approve and adopt guidelines affecting investments, insurance coverage of government properties, settlement of claims,
disposition of acquired assets, privatization or expansion of subsidiaries, development of housing projects, increased benefit and loan
packages to members, and the enforcement of the provisions of this Act;
(u) any provision of law to the contrary notwithstanding, to authorize the payment of extra remuneration to the officials and employees
directly involved in the collection and/or remittance of contributions, loan repayments, and other monies due to the GSIS at such rates
and under such conditions as it may adopt. Provided, That the best interest of the GSIS shall be observed thereby;
(v) to determine, fix and impose interest upon unpaid premiums due from employers and employees;
(w) to ensure the collection or recovery of all indebtedness, liabilities and/or accountabilities, including unpaid premiums or contributions
in favor of the GSIS arising from any cause or source whatsoever, due from all obligors, whether public or private. The Board shall
demand payment or settlement of the obligations referred to herein within thirty (30) days from the date the obligation becomes due,
and in the event of failure or refusal of the obligor or debtor to comply with the demand, to initiate or institute the necessary or proper
actions or suits, criminal, civil or administrative or otherwise, before the courts, tribunals, commissions, boards, or bodies of proper
jurisdiction within thirty (30) days reckoned from the expiry date of the period fixed in the demand within which to pay or settle the
account;
(x) to design and implement programs that will promote and mobilize savings and provide additional resources for social security
expansion and at the same time afford individual members appropriate returns on their savings/investments. The programs shall be so
designed as to spur socio-economic take-off and maintain continued growth; and
(y) to exercise such powers and perform such other acts as may be necessary, useful, incidental or auxiliary to carry out the provisions
of this Act, or to attain the purposes and objectives of this Act.
"SECTION 42. The Board of Trustees; Its Composition; Tenure and Compensation. The corporate powers and functions of the GSIS
shall be vested in and exercised by the Board of Trustees composed of the President and General Manager of the GSIS and eight (8)
other members to be appointed by the President of the Philippines, one (1) of whom shall be either the President of the Philippine
Public School Teachers Association (PPSTA) or the President of the Philippine Association of School Superintendents (PASS), another
two (2) shall represent the leading organizations or associations of government employees/retirees, another four (4) from the banking,
finance, investment, and insurance sectors, and one (1) recognized member of the legal profession who at the time of appointment is
also a member of the GSIS. The Trustees shall elect from among themselves a Chairman while the President and General Manager of
the GSIS shall automatically be the vice-chairman.
The Trustees, except the President and General Manager who shall cease as trustee upon his separation, shall hold office for six (6)
years without reappointment, or until their successors are duly appointed and qualified. Vacancy, other than through the expiration of
the term, shall be filled for the unexpired term only. The members of the Board shall be entitled to a per diem of Two thousand five
hundred pesos (P2,500) for each board meeting actually attended by them, but not to exceed Ten thousand pesos (P10,000) a month
and reasonable transportation and representation allowances as may be fixed by the Board.
"SECTION 43. Powers and Functions of the Board of Trustees. The Board of Trustees shall have the following powers and
functions:
"(a) to formulate the policies, guidelines and programs to effectively carry out the purposes of this Act;
"(b) to promulgate such rules and regulations as may be necessary or proper for the effective exercise of the powers and functions as
well as the discharge of the duties and responsibilities of the GSIS, its officers and employees;
"(c) upon the recommendation of the President and General Manager, to approve the annual and supplemental budget of receipts and
expenditures of the GSIS, and to authorize such operating and capital expenditures and disbursements of the GSIS as may be
necessary or proper for the effective management, operation and administration of the GSIS;
"(d) upon the recommendation of the President and General Manager, to approve the GSIS' organizational and administrative
structures and staffing pattern, and to establish, fix, review, revise and adjust the appropriate compensation package for the officers
and employees of the GSIS with reasonable allowances, incentives, bonuses, privileges and other benefits as may be necessary or
proper for the effective management, operation and administration of the GSIS, which shall be exempt from Republic Act No. 6758,
otherwise known as the Salary Standardization Law and Republic Act No. 7430, otherwise known as the Attrition Law;
"(e) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits extended to its
members or other persons, whether natural or juridical;
"(f) the provision of any law to the contrary notwithstanding, to compromise or release, in whole or in part, any claim or settle liability to
the GSIS, regardless of the amount involved, under such terms and conditions as it may impose for the best interest of the GSIS;
"(g) to approve and adopt guidelines affecting investments, insurance coverage of government properties, settlement of claims,
disposition of acquired assets, development of housing projects, increased benefit and loan packages to members, and the
enforcement of the provisions of this Act;
"(h) to determine, fix and impose interest upon unpaid or unremitted premiums and/or contributions; and
"(i) to do and perform any and all acts necessary, proper or incidental to the attainment of the purposes and objectives of this Act.
"SECTION 44. Appointment, Qualifications, and Compensation of the President and General Manager and of Other Personnel. The
President and General Manager of the GSIS shall be its Chief Executive Officer and shall be appointed by the President of the
Philippines. He shall be a person with management and investments expertise necessary for the effective performance of his duties
and functions under this Act.
"The GSIS President and General Manager shall be assisted by one or more executive vice-presidents, senior vice-presidents, vice-
presidents and managers in addition to the usual supervisory and rank and file positions who shall be appointed and removed by the
President and General Manager with the approval of the Board, in accordance with the existing Civil Service rules and regulations.
"SECTION 45. Powers and Duties of the President and General Manager. The President and General Manager of the GSIS shall
among others, execute and administer the policies and resolutions approved by the board and direct and supervise the administration
and operations of the GSIS. The President and General Manager, subject to the approval of the Board, shall appoint the personnel of
the GSIS, remove, suspend or otherwise discipline them for cause, in accordance with existing Civil Service rules and regulations, and
prescribe their duties and qualifications to the end that only competent persons may be employed.
"SECTION 46. Auditor. (a) The Chairman of the Commission on Audit shall be the ex officio auditor of the GSIS. For this purpose, he
may appoint a representative who shall be the Auditor of the GSIS, and the necessary personnel to assist said representative in the
performance of his duties.
"(b) The Chairman of the Commission on Audit or his authorized representative, shall submit to the Board soon after the close of each
calendar year, an audited statement showing the financial condition and progress of the GSIS for the calendar year just ended.
"SECTION 47. Legal Counsel. The Government Corporate Counsel shall be the legal adviser and consultant of the GSIS, but the
GSIS may assign to the Office of the Government Corporate Counsel (OGCC) cases for legal action or trial, issues for legal opinions,
preparation and review of contracts/agreements and others, as the GSIS may decide or determine from time to time: Provided,
however, That the present legal services group in the GSIS shall serve as its in-house legal counsel.
"The GSIS may, subject to approval by the proper court, deputize any personnel of the legal service group to act as special sheriff in
the enforcement of writs and processes issued by the court, quasi-judicial agencies or administrative bodies in cases involving the
GSIS.
"SECTION 48. Powers of the Insurance Commission. The Insurance Commissioner or his authorized representatives shall make an
examination of the financial condition and methods of transacting business of the GSIS at least once every three (3) years and the
report of said examination shall be submitted to the Board of Trustees and copies thereof be furnished the Office of the President of the
Philippines and the two Houses of the Congress of the Philippines within five (5) days after the close of examination: Provided,
however, That for each examination the GSIS shall pay the office of the Insurance Commissioner an amount equal to the actual
expenses incurred by the said office in the conduct of the examination, including the salaries of the examiners and of the ac tuary of
such examination for the actual time spent.
"H. GENERAL PROVISIONS
"SECTION 49. Dispensation of Social Insurance Benefits. (a) The GSIS shall pay the retirement benefits to the employee on his last
day of service in the government: Provided, That all requirements are submitted to the GSIS within a reasonable period prior to the
effective date of the retirement;
"(b) The GSIS shall discontinue the processing and adjudication of retirement claims under R.A. No. 1616 except refund of ret irement
premium and R.A. No. 910. Instead, all agencies concerned shall process and pay the gratuities of their employees. The Board shall
adopt the proper rules and procedures for the implementation of this provision.
"SECTION 50. Development and disposition of Acquired Assets. The GSIS shall have the right to develop and dispose of its
acquired assets obtained in the ordinary course of its business. To add value to, improve profitability on, and/or enhance the
marketability of an acquired asset, the GSIS may further develop/renovate the same either with its own capital or through a joint venture
arrangement with private companies or individuals.
"The GSIS may sell its acquired assets in accordance with existing Commission on Audit (COA) rules and regulations for an amount not
lower than the current market value of the property. For this purpose, the GSIS shall conduct an annual appraisal of its property or
acquired assets to determine its current market value. All notices of sale shall be published in newspapers of general circulation.
"No injunction or restraining order issued by any court, commission, tribunal or office shall bar, impede or delay the sale and disposition
by the GSIS of its acquired assets except on questions of ownership and national or public interest.
"SECTION 51. Government Assistance to the GSIS. The GSIS may call upon any employer for such assistance as may be
necessary in the discharge of its duties and functions.
"L. PENAL PROVISIONS
"SECTION 52. Penalty. (a) Any person found to have participated directly or indirectly in the commission of fraud, collusion,
falsification, or misrepresentation in any transaction with the GSIS whether for him or for some other persons, shall suffer the penalties
provided for in Article 172 of the Revised Penal Code.
"(b) Whoever shall obtain or receive any money or check invoking any provision of this Act or any agreement thereunder, without being
entitled thereto with the intent to defraud any member, any employer, the GSIS, or any third party, shall be punished by a fine of not
less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) or by imprisonment of not less than six
(6) years and one (1) day to twelve (12) years, or both, at the discretion of the court.
"(c) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations adopted by the GSIS shall be
punished by a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or by
imprisonment of not less than six (6) years and one (1) day to twelve (12) years, or both, at the discretion of the court.
"(d) The treasurer, finance officer, cashier, disbursing officer, budget officer or other official or employee who fails to include in the
annual budget the amount corresponding to the employer and employee contributions, or who fails or refuses or delays by more than
thirty (30) days from the time such amount becomes due and demandable, or to deduct the monthly contributions of the employee shall,
upon conviction by final judgment, suffer the penalties of imprisonment from six (6) months and one (1) day to six (6) years, and a fine
of not less than Three thousand pesos (P3,000.00) but not more than Six thousand pesos (P6,000.00), and in addition shall suffer
absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government.
"(e) Any employee or member who receives or keeps fund or property belonging, payable or deliverable to the GSIS and appropriates
the same, or takes or misappropriates or uses the same to any purpose other than that authorized by this Act, or permits another
person to take, misappropriate or use said fund or property by expressly consenting thereto, or through abandonment or negligence, or
is otherwise guilty of the misappropriation of said fund or property, in whole or in part, shall suffer the penalties provided in Article 217 of
the Revised Penal Code, and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing
any profession or calling licensed by the government.
"(f) Any employee, who after deducting the monthly contribution or loan amortization from a member's compensation, fails to remit the
same to the GSIS within thirty (30) days from the date they should have been remitted under Section 6(a) shall be presumed to have
misappropriated such contribution or loan amortization and shall suffer the penalties provided in Article 315 of the Revised Penal Code,
and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling
licensed by the government.
"(g) The heads of the offices of the national government, its political subdivisions, branches, agencies and instrumentalities, including
government-owned or controlled corporations and government financial institutions, and the personnel of such offices who are involved
in the collection of premium contributions, loan amortization and other accounts due the GSIS who shall fail, refuse or delay the
payment, turnover, remittance or delivery of such accounts to the GSIS within thirty (30) days from the time that the same shall have
been due and demandable shall, upon conviction by final judgment, suffer the penalties of imprisonment of not less than one (1) year
nor more than five (5) years and a fine of not less than Ten thousand pesos (P10,000.00) nor more than Twenty thousand pesos
(P20,000.00), and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any
profession or calling licensed by the government.
"(h) The officers and/or personnel referred to in paragraph (g) of this section shall be liable not only criminally but also civilly to the GSIS
or to the employee or member concerned in the form of damages, including surcharges and interests.
"(i) For the charges or complaints referred to in paragraph (g) of this Section, the liabilities therein set forth shall be construed as waiver
of the State of its immunity from suit, hence, the above-mentioned officials and/or personnel may not invoke the defense of non-
suability of the State.
"(j) Failure of the Members of the GSIS Board, including the chairman and the vice-chairman, to comply with the provisions of
paragraph (w) of Section 41 hereof, shall subject them to imprisonment of not less than six (6) months nor more than one (1) year or a
fine of not less than Five thousand pesos (P5,000.00) nor more than Ten thousand pesos (P10,000.00) without prejudice to any civil or
administrative liability which may also arise therefrom.
"Criminal actions arising from violations of the provisions of this Act may be commenced by the GSIS or by the aggrieved member,
either under this Act or, in appropriate cases, under the Revised Penal Code.
"SECTION 53. Implementing Rules and Regulations. The implementing rules and regulations to carry out the provisions of this Act
shall be adopted and promulgated by the GSIS not later than ninety (90) days after the approval of this Act.
"SECTION 54. Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges, Functions and Activities. Nothing in this Act shall
be construed to repeal, amend or limit any provision of existing laws. Presidential Decrees and Letters of Instructions, not otherwise
specifically inconsistent with the provisions of this Act.
"SECTION 55. Exclusiveness of Benefits. Whenever other laws provide similar benefits for the same contingencies covered by this
Act, the member who qualifies to the benefits shall have the option to choose which benefits will be paid to him. However, if the benefits
provided by the law chosen are less than the benefits provided under this Act, the GSIS shall pay only the difference.
"SECTION 56. Appropriations. The amount necessary to carry out the provisions of this Act shall be included in the respective
budgets of the agencies in the national government obligation program of the year following its enactment into law and thereafter."
SECTION 2. Separability Clause. Should any provision of this Act or any part thereof be declared invalid, the other provisions, so far
as they are separable from the invalid ones, shall remain in force and effect.
SECTION 3. Repealing Clause. All laws and any other law or parts of law specifically inconsistent herewith are hereby repealed or
modified accordingly: Provided, That the rights under existing laws, rules and regulations vested upon or acquired by an employee who
is already in the service as of the effectivity of this Act shall remain in force and effect: Provided, further, That subsequent to the
effectivity of this Act, a new employee or an employee who has previously retired or separated and is reemployed in the service shall be
covered by the provisions of this Act.
SECTION 4. Effectivity. This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two (2)
newspapers of general circulation.
Approved: May 30, 1997
Published in Malaya, The Philippine Star, Philippine Daily Inquirer, and the Manila Bulletin on June 9, 1997. July 28, 1997.
Published in the Official Gazette, Vol. 93 No. 29 page 4360 on July 21, 1997.

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REPUBLIC OF THE PHILIPPINES

CONGRESS OF THE PHILIPPINES

REPUBLIC ACT NO. 9994

In accordance with these objectives, this Act shall:

SEC. 4. Privileges for the Senior Citizens.

The senior citizens shall be entitled to the following:

(d) exemption from training fees for socioeconomic programs;

(2) the passport of the senior citizen concerned; and

SEC. 5. Government Assistance. The government shall provide the following:

(d) Social Services

(f) Access to Public Transport

(g) Incentive for Foster Care

(h) Additional Government Assistance

(1) Social Pension

(2) Mandatory PhilHealth Coverage

(3) Social Safety Nets

The OSCA shall have the following functions:

(a) Chairperson the Secretary of the DSWD or an authorized representative;

(1) the Secretary of the DOJ or an authorized representative;

(2) the Secretary of the DOH or an authorized representative;

(3) the Secretary of the DTI or an authorized representative; and

REPUBLIC ACT No. 10022

(n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.

(b) Suspension for not more than ninety (90) days; or

(h) Conduct research for policy recommendations and program development.

(d) Statistical profile on Filipino migrant workers/overseas Filipinos/tourists;

(e) Blacklisted foreigners/undesirable aliens;

(1) Death Certificate In case of natural or accidental death;

(2) Police or Accident Report In case of accidental death; and

(3) Medical Certificate In case of permanent disablement;

REPUBLIC ACT NO. 9442 April 30, 2007

"CHAPTER 8. Other Privileges and Incentives

"SEC. 32. Persons with disability shall be entitled to the following:

(II) The passport of the persons with disability concerned; or

Prohibitions on Verbal, Non-verbal Ridicule and VilificationAgainst Persons with Disability

"CHAPTER 1. Deliverance from Public Ridicule.

"CHAPTER 2. Deliverance from Vilification

"SEC. 46. Penal Clause. -

Approved: April 30, 2007

REPUBLIC ACT NO. 8187

Republic Act No. 1161 June 18, 1954

(k) To sue and be sued in court.

(b) Commission The Social Security Commission as herein created.

2. Domestic service in a private home;

C. Scope of the System

2. Partners and single proprietors of businesses.

(d) The following disabilities shall be deemed permanent total:

1. Complete loss of sight of both eyes;

2. Loss of two limbs at or above the ankle or wrists;

3. Permanent complete paralysis of two limbs;

4. Brain injury resulting to incurable imbecility or insanity; and,

5. Such cases as determined and approved by the SSS.

(As amended by Sec. 9, P.D. No. 1636, S-1979)

Complete and permanent Number of

One index finger 8

One middle finger 6

One right finger 5

One little finger 3