SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE

INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law
PRELIMINARY CONSIDERATIONS

1. Constitutionality
a. SSS Law
i. Roman Catholic Archbishop of Manila v. Social Security Commission, G.R. No. L-150045, January 20, 1961. Jel
The inclusion of religious organizations within the coverage of the Social Security Law would not impair their right to disseminate religious information. Their monthly contributions, together with
the employees' contributions, are intended for the protection of said employees against the hazards of disability, sickness, old age and death, This is in line with the constitutional mandate to
promote social justice to insure the wellbeing and economic security of all the people.
ii. Philippine Blooming Mills Co., Inc., et.al., v. Social Security System, G.R. No. L-21223, 31 August 1966. Sanj
Membership in the Social Security System is not the result of a bilateral, consensual agreement where the rights and obligations of the parties are defined by and subject to their will. Republic
Act 1161 requires compulsory coverage of employers and employees under the system. It is actually a legal imposition on said employers and employees, designed to provide security to the
working men. Membership in the Social Security System is, therefore, in compliance with a lawful exercise of the police power of the State, to which the principle of nonimpairment of the
obligation of contract is not a proper defense.
b. ECSIF
i. Raro v. Employees Compensation Commission, G.R. No. 58445, 27 April 1989. Ceba
the concepts of presumption of compensability and aggravation and substituted a system based on social security principles. The present system is also administered by social insurance
agenciesthe Government Service Insurance System and Social Security Systemunder the Employees Compensation Commission. The intent was to restore a sensible equilibrium
between the employers obligation to pay workmens compensation and the employees right to receive reparation for work-connected death or disability.
2. Nature of Funds
a. SSS Contributions Not taxes
i. CMC Estate, Inc. v. SSS, G.R. No. L-26298, 28 September 1984 Mel
The SSS Law is not part of the taxation system. The taxing power of the State is exercised for the purpose of raising revenues. However, under our Social Security Law, the emphasis is more on the promotion of
the general welfare. The Act is not part of our Internal Revenue Code nor are the contributions and premiums therein dealt with and provided for, collectible by the Bureau of Internal Revenue. The funds contributed
to the System belong to the members who will receive benefits, as a matter of right, whenever the hazards provided by the law occur.

b. SSS Benefits Not Part of Estate

i. SSS V. Davac, G.R. No. L-21642, 30 June 1966. Sherwin
The benefit receivable under the Social Security Act is in the nature of a special privilege or an arrangement secured by the law pursuant to the policy of the State to provide social security to working men. The
amount received by the members cannot be considered property earned by him. It is not his conjugal property.

c. Presumption of compensability under ECSIF

i. Dabatian v. GSIS, G.R. No. 47294, 8 April 1987. Jel
Under the present law, in order for the employee to be entitled to sickness or death benefits, the sickness or death resulting therefrom must be, or must have resulted from either a) any illness definitely accepted as
an occupational disease listed by the Commission, or b) any illness caused by employment subject to proof that the risk of contracting the same is increased by working conditions.

3. Totalization
a. Gamogamo v. PNOC, G.R. No. 141707, 7 May 2002. Sanj

I. POLICY OBJECTIVE

S.S.S. G.S.I.S. ECSIF

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 1
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*
To establish, develop, promote, and perfect a sound and viable tax-
exempt social security system which shall promote social justice and
provide meaningful protection to members and their beneficiaries
against the hazards of disability, sickness, maternity, old age, death,
and other contingencies resulting in loss of income or financial burden.
2
II. DEFINITIONS
S.S.S.
A. EMPLOYER Any person, natural or juridical, domestic or
foreign, who carries on in the Philippine 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. 8(c)
Exempt Employer
a. Government and any of its political subdivisions,
branches and instrumentalities, including
corporations owned and controlled by the
Government.
b. Self-employed person who is both employee and
employer at the same time. 8(c)
Cases:
1. Investment Planning Corp. v. SSS, G.R. No. L-19124, 18
November 1967.
An employer-employee relationship when the employer controls or spent more profitably in lucrative appointments in the private sector. In
has reserved the right to control the employee not only as to the result
of the work to be done but also as to the means and methods by which
the same is to be accomplished.
*** Held: The work of petitioner's agents or registered
representatives more nearly approximates that of an
independent contractor than that of an employee. The latter is
paid for the labor he performs, that is, for the acts of which
such labor consists; the former is paid for the result thereof.
There is nothing in the contract between petitioner and its
registered representatives which would indicate that the latter
are under the control of the former in respect of the means
and methods they employ in the performance of their work.
*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION
Judge Joeven D. Dellosa
DLSU College of Law
To promote and develop a tax-exempt employees compensation
program whereby employees and their dependents, in the event of
work-connected disability or death, may promptly secure adequate
income benefit and medical related benefits. 166
G.S.I.S. ECSIF
EMPLOYER EMPLOYER
1. National government, its political subdivisions, branches, Any person, natural or juridical, employing the services of the employee.
agencies or instrumentalities; 167(f)
2. Government-owned or controlled corporations, financial
institutions with original charters;
3. Constitutional commissions; and
4. Judiciary. 2(c)
Cases:
1. GSIS v. Civil Service Commission and Matilde S. Belo, G.R.
Nos. 98395 and 102449, 19 June 1995. Ceba
Retirement benefits given to government employees in effect reward
them for giving the best years of their lives to the service of their
country. This is especially true with those in government service
occupying positions of leadership or positions requiring management
skills because the years they devote to government service could be
exchange for their selfless dedication to government service, they enjoy
security of tenure and are ensured of a reasonable amount of support
after they leave the government. The basis for the provision of
retirement benefits is, therefore, service to government. While a
government insurance system rationalizes the management of funds
necessary to keep this system of retirement support afloat and is partly
dependent on contributions made by the thousands of members of the
system, the fact that these contributions are minimal when compared to
the amount of retirement benefits actually received shows that such
contributions, while necessary, are not absolutely determinative in
drawing up criteria for those who would qualify as recipients of the
retirement benefit system.
2
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

The fact that for certain specified causes the relationship may
be terminated by (e.g. failure to meet the annual quota of
sales, inability to make any sales production during a six-
month period, conduct detrimental to petitioner, etc.) does not
mean that such control exists, for the causes of termination
thus specified have no relation to the means and methods of
work that are ordinarily required of or imposed upon
employees.

2. SSS v. CA and Manila Cosmos Aerated Water Factory, Inc.,

G.R. No. 55764, 16 Feb. 1982 Sherwin

In determining the existence of employer-employee

relationship the following elements are generally considered,
namely: (1) the selection and engagement of the employee;
(2) the payment of wages; (3) the power of dismissal; and (4)
the power to control the employees conductalthough the
latter is the most important element

3. Manila Golf and Country Club v. IAC, G.R. No. 64948, 7

September 1994. Jel

Said Courts holding that upon the facts, there exists (or
existed) a relationship of employer and employee between
petitioner and private respondent is, however, another matter.
The Court does not agree that said facts necessarily or
logically point to such a relationship, and to the exclusion of
any form of arrangements, other than of employment, that
would make the respondents services available to the
members and guests of the petitioner. As long as it is, the list
made in the appealed decision detailing the various matters of
conduct, dress, language, etc. covered by the petitioners
regulations, does not, in the mind of the Court, so
circumscribe the actions or judgment of the caddies
concerned as to leave them little or no freedom of choice
whatsoever in the manner of carrying out their services. In the
very nature of things, caddies must submit to some
supervision of their conduct while enjoying the privilege of
pursuing their occupation within the premises and grounds of
whatever club they do their work in. For all that is made to
appear, they work for the club to which they attach
themselves on sufferance but, on the other hand, also without
having to observe any working hours, free to leave anytime

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 3
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

they please, to stay away for as long as they like. It is not

pretended that if found remiss in the observance of said rules,
any discipline may be meted them beyond barring them from
the premises which, it may be supposed, the Club may do in
any case even absent any breach of the rules, and without
violating any right to work on their part. All these
considerations clash frontally with the concept of employment.

4. Republic of the Philippines, rep. by Social Security

Commission and SSS v. Asiapro Cooperative, G.R. No.
172101, 23 Nov. 2007. Sanj

SSC has jurisdiction over the petition-complaint filed before it by

petitioner SSS as it involved an issue of whether or not a worker is
entitled to compulsory coverage under the SSS Law.
B. Employee B. Employee B. Employee

1. Any person who performs services for an employer 1. Any person receiving compensation while in the service of an 1. Any person compulsorily covered by the GSIS, including the
which either or both mental and physical efforts are employer as defined herein, whether by election or members of the Armed Forces of the Philippines;
used and who receives compensation for such appointment, irrespective of status of appointment; 2. Any person employed as casual, emergency, temporary,
services, where there is an employer-employee 2. Barangay officials; and substitute or contractual, and
relationship. 8(d) 3. Sanggunian officials. 2(d) 3. Any person compulsorily covered by the SSS. 167(g)
2. Self-employed person who is both employee and
employer at the same time. 8(d)

C. Dependent C. Dependent C. Dependent

1. SPOUSE 1. SPOUSE
Legal spouse Legitimate spouse 1. SPOUSE
Entitled by law to receive support from the member Dependent for support upon the member or Legitimate spouse
8 (e.1) pensioner 2(f) Living with the employee 167 (i)

2. CHILD 2. CHILD 2. CHILD

Legitimate, legitimated, or legally adopted; and
illegitimate child
Unmarried
Not gainfully employed
Not reached twenty-one years of age, or if over
twenty-one of age, is congenitally or while still a
minor has been permanently incapacitated and
incapable of self-support, physically or mentally
8(e.2)
Legitimate, legitimated, legally adopted child,
including the illegitimate child,
Unmarried
Not gainfully employed AND
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. 2(f)
Legitimate, legitimated or legally adopted or
acknowledged natural child,
Unmarried
Not gainfully employed, AND
not over twenty-one (21) years of age or over
twenty-one (21) years of age provided he is
incapacitated and incapable of self-support due to a
physical or mental defect which is congenital or
acquired during minority. 167 (i)

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 4
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

3. PARENT
3. PARENT 3. PARENT Wholly dependent upon him for regular support.
receiving regular support from member. 8(e.3) Dependent upon the member for support. 2(f) 167 (i)
A. BENEFICIARIES A. BENEFICIARIES A. BENEFICIARIES

1. PRIMARY 1. PRIMARY 1. PRIMARY

a. Dependent spouse until remarriage a. Legal dependent spouse until he/she remarries, a. Dependent spouse until he/she remarries
b. Dependent legitimate, legitimated, or legally and b. Dependent children
adopted, and illegitimate children. 8(k) b. Dependent children c. Dependent acknowledged natural child (when there
are no other qualified and eligible for monthly
2. SECONDARY income benefit) 167(j)
In the absence of (a) and (b), the dependent 2. SECONDARY
parents. 8(k) a. dependent parents, and 2. SECONDARY
b. legitimate descendants, subject to the restrictions a. Dependent parents
3. OTHERS on dependent children. 2(h) b. Illegitimate children and legitimate descendants,
Absent primary and secondary beneficiaries, any subject to the restrictions imposed on dependent
other person designated by the member as his/her Cases: children. 167(j)
secondary beneficiary. 8(k) 1. Berdin vda. De Consuegra v. GSIS, G.R. No. L-
Cases: 28093, 30 January 1971. Ceba
1. Sta. Rita v. CA, 21 August 1995 Ceba
The GSIS offers two separate and distinct systems of benefits to its
The Standard Contract of Employment to be entered into between
members one is the life insurance and the other is the retirement
foreign shipowners and Filipino seafarers is the instrument by which the
insurance. These two distinct systems of benefits are paid out from two
former express their assent to the inclusion of the latter in the coverage
distinct and separate funds that are maintained by the GSIS.
of the Social Security Act. In other words, the extension of the coverage
of the Social Security System to Filipino seafarers arises by virtue of the
assent given in the contract of employment signed by employer and In the case of the proceeds of a life insurance, the same are paid to
seafarer; that same contract binds petitioner Sta. Rita or B. Sta. Rita whoever is named the beneficiary in the life insurance policy. As in the
Company, who is solidarily liable with the foreign shipowners/employers. case of a life insurance provided for in the Insurance Act (Act 2427, as
It may be noted that foreign shipowners and manning agencies had amended), the beneficiary in a life insurance under the GSIS may not
generally expressed their conformity to the inclusion of Filipino seafarers necessarily be a heir of the insured. The insured in a life insurance may
within the coverage of the Social Security Act even prior to the signing designate any person as beneficiary unless disqualified to be so under
of the DOLE-SSS Memorandum of Agreement. the provisions of the Civil Code.4 And in the absence of any beneficiary
named in the life insurance policy, the proceeds of the insurance will go
2. Dycaico v. SSS, G.R. No. 161357, 30 November to the estate of the insured.
2005. Mel

A statute based on reasonable classification does not violate the
constitutional guaranty of the equal protection clause of the law. The
classification in Rep. Act No. 8282 with respect to entitlement to
benefits, to be valid and reasonable, must satisfy the following
Retirement insurance is primarily intended for the benefit of the
employee to provide for his old age, or incapacity, after rendering
service in the government for a required number of years. If the
employee reaches the age of retirement, he gets the retirement benefits

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 5
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

requirements: (1) it must rest on substantial distinctions; (2) it must be even to the exclusion of the beneficiary or beneficiaries named in his
germane to the purpose of the law; (3) it must not be limited to existing application for retirement insurance. The beneficiary of the retirement
conditions only; and (4) it must apply equally to all members of the same insurance can only claim the proceeds of the retirement insurance if the
class. employee dies before retirement. If the employee failed or overlooked to
state the beneficiary of his retirement insurance, the retirement benefits
The legislative history of Rep. Act No. 8282 does not bear out the will accrue to his estate and will be given to his legal heirs in accordance
purpose of Congress in inserting the proviso as of the date of his with law, as in the case of a life insurance if no beneficiary is named in
retirement to qualify the term primary beneficiaries in Section 12-B(d) the insurance policy.
thereof. To the Courts mind, however, it reflects congressional concern
with the possibility of relationships entered after retirement for the
purpose of obtaining benefits. In particular, the proviso was apparently
intended to prevent sham marriages or those contracted by persons
solely to enable one spouse to claim benefits upon the anticipated death
of the other spouse. This concern is concededly valid. However,
classifying dependent spouses and determining their entitlement
to survivors pension based on whether the marriage was
contracted before or after the retirement of the other spouse,
regardless of the duration of the said marriage, bears no relation to
the achievement of the policy objective of the law.

If it were the intention of Congress to prevent sham marriages or those

entered in contemplation of imminent death, then it should have
prescribed a definite duration-of-relationship or durational period of
relationship as one of the requirements for entitlement to survivors
pension.

The classification of dependent spouses on the basis of whether

their respective marriages to the SSS member were contracted
prior to or after the latters retirement for the purpose of
entitlement to survivors pension does not rest on real and
substantial distinctions. It is arbitrary and discriminatory. It is too
sweeping because the proviso as of the date of his retirement, which
effectively disqualifies the dependent spouses whose respective
marriages to the retired SSS member were contracted after the latters
retirement as primary beneficiaries, unfairly lumps all these marriages
as sham relationships or were contracted solely for the purpose of
acquiring benefits accruing upon the death of the other spouse. The
proviso thus unduly prejudices the rights of the legal surviving spouse,
like the petitioner, and defeats the avowed policy of the law to provide
meaningful protection to members and their beneficiaries against the
hazards of disability, sickness, maternity, old age, death, and other
contingencies resulting in loss of income or financial burden.

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 6
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

3. Signey v. SSS, G.R. No. 173582, 28 January 2008.

Sherwin

Whoever claims entitlement to the benefits provided by law should

establish his or her right thereto by substantial evidence. Since
petitioner is disqualified to be a beneficiary and because the
deceased has no legitimate child, it follows that the dependent
illegitimate minor children of the deceased shall be entitled to the
death benefits as primary beneficiaries. The SSS Law is clear that
for a minor child to qualify as a dependent, the only requirements
are that he/she must be below 21 years of age, not married nor
gainfully employed.

4. Bartolome v. SSS, 740 SCRA 78 Jel

The term parents in the phrase dependent parents in the

aforequoted Article 167(j) of the Labor Code is used and ought to be
taken in its general sense and cannot be unduly limited to legitimate
parents as what the ECC did. The phrase dependent parents
should, therefore, include all parents, whether legitimate or
illegitimate and whether by nature or by adoption. When the law
does not distinguish, one should not distinguish. Plainly, dependent
parents are parents, whether legitimate or illegitimate, biological or
by adoption, who are in need of support or assistance.

5. SSS v. De Los Santos, 563 SCRA 693. Sanj

Death Benefits; Although a husband and wife are obliged to support

each other, whether one is actually dependent for support upon the
other cannot be presumed from the fact of marriage alone; A wife
who left her family until her husband died and lived with other men,
was not dependent upon her husband for support, financial or
otherwise, during the entire period.

III. COVERAGE

S.S.S. G.S.I.S. ECSIF

A. COMPULSORY A. COMPULSORY A. COMPULSORY
1. All employees not over sixty (60) years of age and 1. All employees receiving compensation who have not reached 1. All employees and their employees not over sixty (60) years

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 7
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

their employers. 9 the compulsory retirement age, irrespective of employment of age,

2. Domestic helpers monthly income not less that
One Thousand Pesos (Php1,000.00) 9*
3. Self-employed persons as may be determined by
the Commission, but not limited to: (a) self-
employed professionals; (b) partners and single
proprietors of businesses; (c) actors and actresses,
directors, scriptwriters and news correspondents
who do not fall within the definition of the term
employee under Sec. 8(d); (d) Professional
athletes, coaches, trainers, and jockeys; and (e)
individual farmers and fishermen. 9-A
status, and
2. Members of the judiciary and constitutional commissions
(qualified for life insurance only) 3
Except members of the Armed Forces of the Philippines and the
Philippine National Police, subject to the condition that they must first
settle their financial obligation with the GSIS, and contractuals who have
no employer and employee relationship with the agencies they serve.
2. Employee who is over sixty (60) years of age and paying
contributions to qualify for the retirement or life insurance
benefit administered by the SSS or GSIS.
FOREIGN EMPLOYMENT
ECC shall ensure adequate coverage of Filipinos employees employed
abroad. 169

EXCLUDED EMPLOYMENT
1. Employment purely casual and not for the purpose of
occupation or business of the employer;
2. Services performed on or in connection with an alien vessel
by an employee if he is employed when such vessel is outside
the Philippines;
3. Service performed in the employ of the Philippine government
or instrumentality or agency thereof;
4. Service performed in the employ of a foreign government or
international organization, or their wholly-owned
instrumentalities; and
5. Services performed by temporary and other employees which
may be excluded by SSS regulation. Employees of bona fide
independent contractors shall not be deemed employees of
the employer engaging the services of said contractors. 8(j)

B. VOLUNTARY
1. Filipinos recruited by foreign-based employers for
employment abroad; 9(c)
2. Employee under compulsory coverage who is separated from
employment may continue to pay total contributions to
maintain his right to full benefit. 11
3. Self-employed who realizes no income in any given month
may be allowed to continue paying contributions. 11-A
4. Spouses who devote full time managing household and family
affairs, unless they are also engaged in other vocation or
employment (which is the subject of mandatory coverage).
9(b)

C. OTHERS

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 8
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

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.

D. EFFECTIVE DATE OF COVERAGE

1. Employer first day of his operation
2. Employee first day of employment
*
SEC. 30, R.A. 10361. Social and Other Benefits. A domestic worker
who has rendered at least one (1) month of service shall be covered by
the Social Security System (SSS), the Philippine Health Insurance
Corporation (PhilHealth), and the Home Development Mutual Fund or
Pag-IBIG, and shall be entitled to all the benefits in accordance with the D. EFFECTIVE DATE OF COVERAGE
pertinent provisions provided by law. 1. Employer first day of his operation
2. Employee first day of employment
Premium payments or contributions shall be shouldered by the
employer. However, if the domestic worker is receiving a wage of Five
thousand pesos (P5,000.00) and above per month, the domestic worker
shall pay the proportionate share in the premium payments or
contributions, as provided by law.

IV. EFFECT OF SEPARATION FROM EMPLOYMENT OR INTERRUPTION OF BUSINESS INCOME

S.S.S. G.S.I.S. ECSIF

COMPULSORILY COVERED AND SEPARATED FROM A member separated from the service shall continue to be a member,
EMPLOYMENT and shall be entitled to whatever benefits he has qualified to in the event
1. Employer contribution on his account and employee of any contingency compensable under this Act.
contribution shall cease at the end of the month of separation.
2. Employee credited with all contributions paid on his behalf
and entitled to benefits according to SSS Law.
3. Employee may continue to pay the total contributions to
maintain his right to full benefits. 11

SELF-EMPLOYED REALIZES NO INCOME IN ANY GIVEN MONTH

1. Shall not be required to pay contributions for that month.
2. May be allowed to continue paying contributions same as
separated employee. 11A

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 9
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

IV. FUNDING

S.S.S. G.S.I.S. ECSIF

1. Employers contribution. 19 1. Employers contribution. 6 1. Employers Contribution pays entirety of contribution
2. Employees contribution. 18 2. Members contribution. 5 2. Employee no contribution. 183(c)
3. Benefits prescribed in this Act shall not be diminished and to 3. Government guarantees the fulfillment of the obligation of
guarantee that, the Government accepts general GSIS members. 8 Any contract or device for the deductions of any portion thereof from the
responsibility for the solvency of the SSS. 21 wages or salaries of the employees shall be null and void. 183(c)
Cases:
1. Lledo v. Lledo, A.M. No. P-95-1167, 9 February 2010 Sherwin

It should be remembered that the GSIS laws are in the nature of

social legislation, to be liberally construed in favor of the government
employees. The money subject of the instant request consists of
personal contributions made by the employee, premiums paid in
anticipation of benefits expected upon retirement. The occurrence of a
contingency, i.e., his dismissal from the service prior to reaching
retirement age, should not deprive him of the money that belongs to
him from the outset. To allow forfeiture of these personal contributions
in favor of the GSIS would condone undue enrichment.

V. REPORTING REQUIREMENTS

S.S.S. G.S.I.S. ECSIF

Employer shall immediately report to the SSS the following Employer shall report to the GSIS the following, including subsequent
information on all his employees compulsorily covered: changes therein, if any:
1. Name 1. Names of all its emplotees,
2. Age 2. Their corresponding employment status,
3. Civil status 3. Positions,
4. Occupation 4. Salaries, and
5. Salary 5. Such other pertinent information. 6
6. Dependents. 24(a)

Case:
1. Machuca Tile Co. v. SSC, G.R. No. L-24883, 31 October
1969 Mel

Section 24(a) of the Social Security Act requires the timely report of
employees' names and personal data for coverage under the

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 10
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

System, under penalty of being liable for damages equivalent to

the benefits the employee or his heirs would have been entitled to
receive from the System had his name been reported on time by
the employer. It is obvious that the Act attaches greater importance
to this requirement and obligation of the employer than that of
timely remittance of the premiums. For failure to make such
report in fact excludes the employee from the System's
coverage and the Act therefore shifts to the erring employer
the responsibility of paying the social security benefits "to
which the employee or his heirs would have been entitled had his
name been reported on time by the employer to the
System.; Where the employer has, however, timely and properly
reported the employee's name for coverage but has failed or
refused to pay or remit the premiums, such failure or refusal, by
express provision of the Act in Section 22(b) "shall not prejudice
the right of the covered employee to the benefits of the coverage."
The Act, in such cases as above stated, exacts the lesser liability
of payment of the delinquent premiums with a 3% monthly penalty.

VI. EFFECT OF NON-REMITTANCE

S.S.S. G.S.I.S. ECSIF

Failure or refusal of the employer to pay or remit the contributions shall Failure or refusal of the employer topay or remit the contribution herein
not prejudice the right to the employee to the benefits of the coverage. shall not prejudice the right of the employee of his dependents to the
22(b) benefits. 196(b)

Case:
1. Machuca Tile Co. v. SSC, G.R. No. L-24883, 31 October
1969 Sherwin

Section 22(a) of the Social Security Act requires the employer to

make a timely remittance of the premium contributions of both
employer and employee, under pain of being subject to payment of
a 3% monthly penalty. The posthumous remittance of the deceased
employee's premiums served but to extinguish employers liability
therefor and to free it from the imposition of the 3% monthly penalty
from the date the contribution falls due until actually paid. These
accrued premiums are legally due to the System as the contribution
of both employer and employee under Sections 18 and 19 of the Act
and the death of the employee did not extinguish employer's liability

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 11
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

to remit the same. There is no justification, consequently, for

employer's claim that the System should be held in estoppel for
having retained the premiums that were paid only by employer after
the employee's death and that the System should be liable for the
payment of the death benefits.

2. Gabionza v. CA, G.R. No. 140311, 30 March 2001 Jel

A reading of Sec 28, par. (e), RA 1611, shows that it penalizes,

among others, the failure or refusal of a compulsorily-covered
employer from remitting compulsory contributions to the SSS.
Neither time nor duration of the offense charged is a material
ingredient of the offense. In fact, the penalty imposed for this
violation is constant at six (6) years and one (1) day to twelve (12)
years, regardless of the number of infractions.

3. Kua v. Sacupayo, 736 SCRA 401. Sanj

The elements of criminal liability under Section 22(a) are: 1. The

employer fails to register its employees with the SSS; 2. The
employer fails to deduct monthly contributions from the salaries
and/or wages of its employees; and 3. Having deducted the SSS
contributions and/or loan payments to SSS, the employer fails to
remit these to the SSS.

VII. BENEFITS

S.S.S. G.S.I.S. ECSIF

1. Monthly pension 12 1. Separation 11& 12 f
2. Dependents pension 12-A 2. Retirement 13
3. Retirement 12-B 3. Disability 15
4. Death 13 a. Permanent Total
5. Permanent Disability 13-A b. Permanent Partial
6. Funeral 13-B c. Temporary Total
7. Sickness 14 d. Non-scheduled disability
8. Maternity (limited to first four deliveries or miscarriage) 14-A 4. Survivorship 20-22
5. Life Insurance 24-27
ALL TAX-EXEMPT 6. Funeral 27

Judiciary and Constitutional Commissions are entitled to life insurance

only.

All tax-exempt.

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 12
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

Cases:
1. GSIS v. Baradero and GSIS v. CSC and Matilde Belo, G.R.
No. 98395 and 102449, 19 June 1995. Ceba

The distinctions between salary and per diem made hereinabove

were in fact adverted to in our original decision dated October 28,
1994. In explaining the allowance of service rendered on a per
diem basis in the case of Inocencio vs. Ferrer of the Social Security
System, we noted with approval the Government Service Insurance
System's explanation that the per diem service which was credited
for purposes of retirement was Commissioner Ferrer's full time
service as Hearing Officer not his per diem service for attendance at
Board Meetings. Even then, we indirectly noted the difference
between per diem paid as compensation for services rendered on a
full time basis and per diem as allowance for incidental expenses.
Respondent Belo asserts, with reason, that the per diems paid to
her, while reckoned on the basis of attendance in Board Meetings,
were for her full time services as Vice Governor of the Province of
Capiz. In fact, the same service, albeit still on a holdover basis, was
eventually paid with a fixed salary.

the phrase "per diem" is used under the Government Service

Insurance Law, a per diem is a daily allowance given for each day an
officer or employee of government is away from his home
base. 8 This is its traditional meaning: its usual signification is as a
reimbursement for extra expenses incurred by the public official in
the performance of his duties. 9 Under this definition the per
diem intended to cover the cost of lodging and subsistence of
officers and employees when the latter are on duty outside of their
permanent station. 10

On the other hand, a per diem could rightfully be considered a

compensation or remuneration attached to an office. 11 Under the
circumstances obtaining in the case of respondent Belo the per
diems received by her during the period that she acted in holdover
capacity obviously were in the nature of compensation or
remuneration for her services as Vice Governor of the Province of
Capiz, rather than as a reimbursement for incidental expenses
incurred while away from her home base

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 13
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

2. Rabor v. CSC, G.R. No. 111812, 31 May 1995. Mel

The extension of service of government retirees who have reached

sixty-five years of age is an area that is covered by both P.D. 1146
and the Administrative Code of 1987.

The limitation of permissible extensions of service after an employee

has reached sixty-five (65) years of age has no reasonable
relationship or is not germane to the foregoing provisions of the
present Civil Service Law. The physiological and psychological
processes associated with ageing in human beings are in fact related
to the efficiency and quality of the service that may be expected from
individual persons.

3. Profeta v. Drilon, G.R. No. 104139, 22 Dec. 1992. Sherwin

To a public servant, a pension is not a gratuity but rather a form of

deferred compensation for services performed and his right to it
commences to vest upon his entry into the retirement system and
becomes an enforceable obligation in court upon fulfillment of all
conditions under which it is to be paid. Similarly, retirement benefits
receivable by public employees are valuable parts of the
consideration for entrance into and continuation in public office or
employment. They serve a public purpose and a primary objective in
establishing them is to induce competent persons to enter and
remain in public employment and render faithful and efficient service
while so employed.

4. Santiago v. COA, G.R. No. 92284, 12 July 1991. Jel

An honorarium is defined as something given not as a matter of

obligation but in appreciation for services rendered, a voluntary
donation in consideration of services which admit of no compensation
in money. The additional compensation given to the petitioner was in
the nature of a salary because it was received by him as a matter of
right in recompense for services rendered by him as Acting Assistant
General Manager for Finance and Administration. In fact, even
Chairman Domingo referred to it in his letter dated July 14, 1988, as
the petitioners salary differential.

5. GSIS v. Montesclaros, G.R. No. 146494, 14 July 2004. Ceba

In addition to retirement and disability benefits, PD 1146 also provides

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 14
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

for benefits to survivors of deceased government employees and

pensioners. Under PD 1146, the dependent spouse is one of the
beneficiaries of survivorship benefits. A widows right to receive
pension following the demise of her husband is also part of the
husbands contractual compensation.

6. Gamogamo v. PNOC Shipping and Transport Corporation,

G.R. No. 141707, 7 May 2002. Sanj

Totalization of service credits is only resorted to when the retiree does

not qualify for benefits in either or both of the Systems.

VIII. BASIS OF CLAIM

S.S.S. G.S.I.S. ECSIF

Disability, sickness, maternity, death, old age, and other contingencies Upon occurrence of contingency Work connected disability or death. 166
resulting in loss of income or financial burden. 2 BUT GSIS is exempt from liability of permanent disability is due to the No basis of claim when occasioned by the employees:
following: a. Intoxication
Cases: a. Grave misconduct b. Willful intention to injure or kill oneself or another
1. Buenaobra v. SSS, G.R. No. 147745, 9 April 2003. b. Habitual intoxication c. Notorious negligence
c. Willful intent to kill oneself or another. 15 d. As otherwise provided by law. 172

Cases:
1. Iloilo Dock and Engg. Co. v. WCC, G.R. No. L-26341, 27
November 1968.
2. Belarmino v. ECC, G.R. No. 90104, 11 May 1990.
3. Hinoguin v. ECC, G.R. No. 8430, 17 April 1989.
4. GSIS v. CA and F. Alegre, G.R. No. 126524, 20 April 1999.
5. Valeriano v. ECC and GSIS, G.R. No. 136200, 8 June 2000.
6. Alano v. ECC, G.R. No. L-48594, 16 March 1988
7. Lazo v. ECC, G.R. No. 78617, 18 June 1990
8. Enao v. ECC. 135 SCRA 660.
9. Davao Gulf Lumber v. Del Rosario, G.R. No. L-15978, 29
December 1960.
10. Meez v. ECC, G.R. No. L-48488, 25 April 1980.
11. Orate v. CA, G.R. No. 132761, 26 March 2003.
12. NFD International Manning Agents v. Illescas, G.R. No.
183054, 29 September 2010.
13. Vda. De Inguillo v. ECC, G.R. No. 51543, 6 June 1989.
14. Quisora v. Denholm Crew Management, G.R. No. 185412, 16
November 2011

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 15
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

15. GSIS v. Calumpiano, 26 November 2014.

16. GSIS v. Jum Angel, 654 SCRA 142.

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 16
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*

Judge Joeven D. Dellosa

DLSU College of Law

IX. PRESCRIPTIVE PERIOD OF CLAIMS

S.S.S. G.S.I.S. ECSIF

Action against the employer may be commenced within twenty (20) All claims for benefits shall prescribe after four (4) years from the date of Three (3) years from the time the cause of action accrued. 201
years from the time the delinquency is known or the assessment is contingency. 28
made by the SSS, or from the time the benefit accrues. 22b
Except life and retirement benefits. 28

Case:
1. GSIS v. Cuanang, G.R. No. 158846, 3 June 2004
If a death which occurred almost four and one half years after retirement
was held to be within the coverage of the death benefits under PD 626,
with more reason should a death which occurred within one year after
retirement be considered as covered under the same law.

Held: In the instant case, the wife of the respondent died a year after her
retirement. Clearly, the period between her retirement and demise was
less than one year. Indeed, if a death which occurred almost four and
one half years after retirement was held to be within the coverage of the
death benefits under PD 626, as in the Manuzon case, with more
reason should a death which occurred within one year after retirement
be considered as covered under the same law. A claim for benefit for
such death cannot be defeated by the mere fact of separation from
service.

X. EXCLUSIVENESS OF BENEFITS

S.S.S. G.S.I.S. ECSIF

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. 155
Liability of the ECSIF shall be exclusive and in place of all other
liabilities of the employer to the employee, his dependents or anyone
otherwise entitled to receive damages on their behalf. The payment of
compensation shall not bar the recovery of benefits provided under:
a. Section 699 of the Revised Administrative Code
b. R.A. No. 1161 (SSS Law, not R.A. 8282)
c. C.A. 186, as amended
d. R.A. 610 as amended by R.A. 4864, as amended.
e. Other laws whose benefits are administered by the System, or
by other agencies of the government. 173

XI. DISPUTE SETTLEMENT AND PRESCRIPTIVE PERIOD OF ACTION; EFFECTS OF SOCIAL SECURITY CONDONATION ACT

S.S.S. G.S.I.S. ECSIF

*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION 17
 SALIENT FEATURES OF THE SOCIAL SECURITY LAW, GOVERNMENT SERVICE INSURANCE SYSTEM ACT, EMPLOYMENT COMPENSATION AND STATE
INSURANCE FUND, AND LIMITED PORTABILITY SCHEME IN THE SOCIAL SECURITY INSURANCE SYSTEMS*
Disputes involving the following 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 the mandatory period
of twenty (20) days after the submission of the evidence:
1. Coverage
2. Benefits
3. Contributions
4. Penalties
5. Any other related matters. 5(a)
Decisions of the Commission shall be final and executory fifteen (15)
days after the date of notification, absent an appeal.
Execution of Decisions
Commission, motu proprio or on motion of any interested party, may
issue a writ of execution to enforce any of its decisions or awards, after
it has become final and executory. 5(d)
Appeals
Decisions of the Commission may be appealed to:
1. The Court of Appeals - on law and fact
2. Supreme Court on law only. 5(c)
Case:
1. Mendoza v. People, G.R. No. 183891, 19 October 2011.
By paying outside of the availment period, the petitioner
effectively placed himself outside the benevolent sphere of
RA No. 9903. This is how the law is written: it condones
employers and only those employers with unpaid SSS
contributions or with pending cases who pay within the six (6)-
month period following the laws date of effectivity. Dura lex,
sed lex.
*Adapted from Prof. Domingo P. Disini, Jr.s STATUTORY AND CASE MATERIALS ON SOCIAL LEGISLATION
Judge Joeven D. Dellosa
DLSU College of Law
The Government Service Insurance System shall have original and The SSS or GSIS shall have original and exclusive jurisdiction to settle
exclusive jurisdiction to settle any disputes arising under this Act and any dispute with respect to the following, subject to appeal to the
any other laws administered by the GSIS. The Board may designate any Commission:
member of the Board, or official of the GSIS who is a lawyer, to act as 1. Coverage
hearing officer to receive evidence, make findings of fact and submit 2. Entitlement to benefits
recommendations. 30 3. Collection
4. Payment of contributions
5. Penalties
6. Other related matter. 180
Execution of Decisions
When no appeal is perfected and there is no order to stay by the Board,
the Court of Appeals or by the Supreme Court, any decision or award of Execution of Decisions
the Board shall be enforced and executed in the same manner as Decisions, orders, or resolutions of the Commission shall become final
decisions of the RTC. 32 and executory if no appeal is taken within ten (10) days from receipt
thereof. 182(a)
Appeals
1. From any decision or award of the Board shall be governed Decisions, orders, or resolutions of the Commission which have become
by Rules 43 and 45 of the 1997 Rules of Civil Procedure final and executory shall be enforces and executed in the same manner
2. Appeal shall not stay the execution of the order or award as decisions of the Regional Trial Court
unless ordered by the Board, by the Court of Appeals or by
the Supreme Court Appeals
3. Appeal shall likewise be without prejudice to the special civil Decisions, orders, or resolutions of the Commission may be reviewed
action of certiorari when proper. 31 on certiorari by the Supreme Court on questions of law.
18