THE SOCIAL SECURITY ACT OF 1997

Republic Act NO. 1161

(as amended by Republic Act Nos. 1792, 2658, 3839, 4482, 4857,
Presidential Decree Nos. 24, 177, 347, 735, 1202, 1636,
Executive Order Nos. 28, 102, Republic Acts Nos. 7322 and 8282)

Introduction

Republic Act No. 1161, otherwise known as the Social Security Act of 1954 was
approved on July 18, 1954, but it was not implemented until September 1, 1957. It has
undergone several amendments throughout the years.

The Social Security Law was enacted pursuant to the policy of the State to
establish, develop and promote a sound and viable tax-exempt social security system
suitable to the needs of the people throughout the Philippines and provide meaningful
protection to members and their beneficiaries against the hazards of disability, sickness,
maternity, old age and death, and other contingencies resulting in loss of income or
financial burden.

The enactment of the Social Security Law is a legitimate exercise of police power.
It is in full accord with the constitutional provisions on the “promotion of social justice to
insure the well-being and economic security of the people”.

The Social Security System is not a law of succession. It is not the heirs of the
employee but the designated beneficiaries who are to receive the social security benefits.
It is only when the beneficiary is the estate, or when there is no designated beneficiary or
if the designation of beneficiary is void, that the Social Security System is required to pay
the employee’s heirs.

The Social Security Law is not part of the taxation system because it is not intended
for raising revenues but for the promotion of the general welfare.

The Philippine Social Security System is a state-run, social insurance program in

the Philippines to workers in the private, professional, and informal sectors.

MANDATE

To manage a sound and viable social security system which shall promote social
justice and provide meaningful protection to members and their families against the
hazards of disability, sickness, maternity, old age, death and other contingencies resulting
in loss of income or financial burden.

I. COVERAGE OF THE SSS LAW

COMPULSORY COVERAGE

A. Employers

1. An Employer who engaged the use of services of employees in his business,

trade or industry. Note that a social, civic, or professional or nonprofit
bodies are considered as employers.

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 2. Foreign government, instrumentalities who have entered into an
administrative agreement with the SSS for the coverage of its Filipino
Employees.

Effective date of coverage: Upon the first day of operation or first day of hiring,
provided that he shall report to SSS the employee within 30 days from
employment.

B. Employees

1. A private employee, whether permanent, temporary or probationary who

is not over 60

2. A domestic worker or Kasambahay who has rendered at least 1 month of

service

3. A Filipino Seafarer upon entering into a contract of employment with a

manning agency and foreign ship shall be considered its employers

4. An employee in foreign government or its instrumentalities having an

administrative agreement with SSS for coverage of Filipino employees

5. The parent, spouses and children below 21 years old of an Owner a sole
proprietorship.

Effective date of coverage: Upon first day of employment.

C. Self-Employed who earns at least per month and not over 60 years old.

VOLUNTARY COVERAGE

A. Separated Members those who are members who are separated from
service or are unemployed but wish to continue to pay the contributions.

Effective date of coverage: On the month he or she resumes payment.

B. Overseas Filipino Workers

Effective date of coverage: On first payment of contribution in case of initial
coverage.

C. Non-Working Spouses of SSS Members

The following are to be considered:

1. Legally married to a currently employed and actively paying SSS members

2. Devotes full time the management of the household and family affairs

3. Approval by the working spouse

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 4. Never have been an SSS member

5. Contributions shall be based on 50% of the last posted MSC of the working
spouses but not less than 1K

Effective date of coverage: On first payment of contribution.

EXCLUDED FROM COVERAGE

A. Employer
Government and any of its political subdivisions, branches or any of its
instrumentalities including corporations owned or controlled by the
government with original charters.

B. Employees

1. Employment purely Casual and not for the purpose of occupation or

business of the employer.

2. Service performed on or in connection with an Alien vessel by an employee

when vessel is outside the PH

3. Services performed under the employ of the PH Government

4. Services performed under the employ of a Foreign government if there is no

administrative agreement;

5. Those which may be excluded by Regulation of the Social Security

Commission.

BENEFICIARIES

A. Primary Beneficiaries

1. Dependent Spouse until he or she remarries;

2. Dependent legitimate, legitimated, legally adopted and illegitimate children

who are not over 21 years.

NOTE: The dependent illegitimate children shall be entitled to 50% of the share
legitimate children but in their absence it shall be 100%.

B. Secondary Beneficiaries

1. Dependent Parents in absence of the primary beneficiaries;

2. Any other person designated by the member in absence of all the foregoing
primary beneficiaries and dependent parents

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II. COVERAGE OF THE SSS LAW

A. SICKNESS BENEFIT
It is a daily cash allowance given to a member who is unable to work due to
sickness or injury.

The member must have been unable to work due to

the sickness or injury for at least four (4) days

QUALIFICATIONS Has paid at least 3 monthly contributions within

the 12 month period immediately preceding the
semester of the sickness or injury

When all the company sick leave with pay for the
current year has been used up

That the employer has been notified (or if in the

case of voluntary, separated or self-employed
members, the SSS)

Daily cash allowance to be given not more than 120

days per calendar year, unused portions cannot be
NATURE AND TYPES OF carried over to the next calendar year.
BENEFITS
Cannot be awarded if the sickness benefit has
been awarded for the same illness for more than
240 days, which shall be considered as a disability
claim.

AMOUNT AND 90% of the Average Daily Salary Credit x Days of

COMPUTATION Sickness

Advanced by the employer every regular payday

PAYMENT PROCEDURE and SSS shall reimburse upon proof and payment
and its legality.

If voluntary, self-employed or separated member

SSS pays directly

For hospital confinement – 1 year from the last day

PRESCRIPTIVE PERIODS of confinement. For home confinement – 1 year
from the start of illness. Failure to file within the
prescriptive period results to denial of claim.

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B. MATERNITY BENEFIT
It is a daily cash allowance given to a member who is unable to work due to
childbirth or miscarriage.

Member must have paid at least 3 monthly

contributions within the 12 month period
immediately preceding the semester of childbirth
or miscarriage

QUALIFICATIONS Employer or SSS has been notified.

Process of notification: As soon as she

becomes pregnant has to inform ER or SSS
and 60d from conception accomplish SSS
Form MAT-1 and Proof of Pregnancy to ER

ER must submit both form and proof to SSS

Failure to observe rule may result to denial

of the claim.

Daily cash allowance to be given for 60 days for

NATURE AND TYPES OF normal delivery or miscarriage and 78 days for
BENEFITS Caesarian section delivery.

Awarded only to the first four (4) deliveries or

miscarriages of the member, cannot be availed at
the same time with the sickness benefit.

100% of the Average Daily Salary Credit:

• x 60 for normal delivery or miscarriage; or

• x 78 for Caesarian section delivery.

AMOUNT AND
COMPUTATION NOTE: A female SSS member is covered whether
married or unmarried

Payment of Damages to SSS

1. If EE gives birth or miscarriage without

required contribution having been
remitted by ER

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 2. ER fails to notify the SSS

Advanced in full within 30 days from the date of

filing of maternity leave application and SSS shall
PAYMENT PROCEDURE immediately reimburse ER upon proof and legality
of payment

If not employed, SSS pays directly.

Republic Act 11210: 105-day Expanded Maternity Leave Law of 2019

Grant of Maternity Leave:

a. one hundred and five (105) days maternity leave with full pay; and
b. option to extend for an additional thirty (30) days without pay
c. additional fifteen (15) days maternity leave with full pay, if worker
qualifies as a solo parent (under R.A. No. 8972)

*In case of miscarriage or emergency termination of pregnancy, maternity

leave of 60 days shall be granted.

Who can avail?

1. All covered female workers in government and the private sector,
including those in the informal economy, regardless of civil status or the
legitimacy of her child
2. Any Pregnant female workers in the public sector (NGAs, LGUs, GOCCs,
SUCs) regardless if the delivery was normal or caesarian
3. Any pregnant female worker in the private sector, regardless of whether
she gave birth via caesarian section or natural delivery
4. all female workers in the government and female members of the SSS,
regardless of the civil status
5. a female worker in the government service and in the private sector even
if she has a pending administrative case

Benefits for a female SSS member:

 who has paid at least 3 monthly contributions in the 12-month period

immediately preceding the semester of her childbirth, miscarriage, or
emergency termination of pregnancy shall be paid her daily maternity
benefit (must receive their full pay) which shall be computed based on
her average monthly salary credit for 105 days (caesarian or normal)
Conditions:
1. that the female worker shall have notified her employer of her
pregnancy and the probable date of her childbirth, which notice

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 shall be transmitted to the SSS in accordance with the rules and
regulations it may provide;
2. that the full payment shall be advanced by the employer within 30
days from the filing of the maternity leave application;
3. that payment of daily maternity benefits shall be a bar to the
recovery of sickness provided under RA No. 1161, as amended,
for the same period for which daily maternity benefits have
been received;
4. that the SSS shall immediately reimburse the employer upon receipt
of satisfactory and legal proof of such payment; and
5. that if a female worker should give birth or suffer miscarriage or
emergency termination of pregnancy without the required
contributions having been remitted for her employer to the SSS, or
without the latter having been previously notified by the employer of
the time of the pregnancy, the employer shall pay to the SSS
damages equivalent to the benefits which said female member
would otherwise have been entitled to.

OPTION TO EXTEND ADDITIONAL 30 DAYS WITHOUT PAY

 the employer shall be given due notice, in writing, at least 45 days before
the end of her maternity leave
 no prior notice shall be necessary in the event of a medical emergency
bur subsequent notice shall be given to the head of the agency

Employers shall be responsible for payment of the salary differential between the
actual cash benefits received from the SSS by the covered female workers and their
average weekly or regular wages, for the entire duration of the maternity leave
(with exceptions).

ALLOCATION OF MATERNITY LEAVE CREDITS

Any female worker entitled to maternity leave benefits as provided herein may,
at her option, allocate up to 7 days of said benefits to the child’s father (whether
or not the same is married to the female worker)
Provided:
 in the death, absence, or incapacity of the former, the benefit may
be allocated to an alternate caregiver who may be a relative
within the 4th degree of consanguinity or the current partner of
the female worker sharing the same household (upon the election
of the mother taking into account the best interest of the child);
 written notice thereof is provided to the employers of the female
worker and alternate caregiver;
 this benefit is over and above that which is provided under RA
8187 (Paternity Leave Act);
 in the event the beneficiary female worker dies or is permanently
incapacitated, the balance of her maternity leave benefits shall
accrue to the father of the child or to a qualified caregiver.

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 In case of childbirth miscarriage, or emergency termination of pregnancy after
the termination of an employee’s service,

 maternity leave with full pay shall be granted if it occurs not more than
15 calendar days after the termination of an employee’s service.
 provided:
that such period is not applicable when the employment of the pregnant
woman worker has been terminated without just cause, in which case
the employer will pay her full amount equivalent to her salary for 105
days for childbirth and 60 days for miscarriage or emergency
termination of pregnancy based on her full pay, in addition to the other
applicable daily cash maternity benefits that she should have received
had her employment not been illegally terminated

Enjoyment of maternity leave cannot be deferred but should be availed of

either before or after the actual period of delivery in a continuous and
uninterrupted manner, not exceeding 105 days, as the case may be.

Maternity leave shall be granted to female workers in every instance of

pregnancy, miscarriage or emergency termination of pregnancy,
regardless of frequency.

C. RETIREMENT BENEFIT
It is a cash benefit in the form of either a monthly pension or a lump sum amount
for members who are unable to work due to old age.

a. 60 year-olds for separated or ceased to be

self-employed and has paid at least 120MC
prior to the semester of the retirement
QUALIFICATIONS

b. 65 year-olds whether employed or

unemployed who has paid at least 120MC
prior to the SEM of RET

c. Underground minors who are 55YO worked

at least 5Y who has paid at least 120MC
prior to the SEM of the RET

1. Monthly pension – which is a lifetime cash

NATURE AND TYPES OF benefit for those who paid at least 120MC prior
BENEFITS to the SEM of RET

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 2. Lump sum amount – for those member who
has not paid at least 120MC prior to the SEM of
RET

MONTHLY PENSION

Depends on the number of MCs as well as CYS and

AMOUNT AND number of dependent children not exceeding 5.
COMPUTATION

The monthly pension shall be the highest of either:

1. P300 + 20% of Average Monthly Salary

Credit + 2% of Average MSC for every year
in excess of ten years of CYS.

2. 40% of the Ave. MSC

3. P1,200 if CYS is (10-20) and P2,400 if CYS is

(20) and be paid not less than 60

LUMP SUM
It is equal to the total contributions paid by the
member and by the employer including the interest.

If under monthly pension they have the option to

receive the first 18MCs in lump sum and it shall be
monthly pension from 19th month and every
PAYMENT PROCEDURE month thereafter.

Entitled to 13th month pension

Note that if the partial permanent disability it can

be paid by a lump sum if less than 12 months.

Primary beneficiaries shall be entitled to the

IN CASE OF DEATH OF 100% of the MP
MEMBER

Secondary beneficiaries, if death was within 60m

from start of pension and no primary beneficiaries:
• 5Y Lump Sum equivalent to the total
monthly pensions.

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 If conceived on or before date of RET they shall
receive 10% of the member’s MP or P250
(whichever is higher) however:
DEPENDENT’S PENSION
• Only 5 from the youngest, preference as to
legitimate, legitimated or adopted.

• Stops at the age of 21, or when employed,

or dies.

• Unless incapacitated due to mental defect

acquired during minority.

D. DISABILITY BENEFIT
It is a cash benefit in the form of either a monthly pension or a lump sum amount
for a member who is unable to work due to a disability.

Member suffers from partial or total disability.

QUALIFICATIONS
Monthly`

Has paid at least 1MC prior to the semester of

contingency

1. Monthly pension – cash benefit paid at least

36MC prior to the SEM of disability

NATURE AND TYPES OF NOTE: Only for life if member suffers from
BENEFITS permanent total disability (PTD) and shall be
suspended if:

a. Re-employment or resumes self-

employment

b. Recovers from the PTD

c. Fails to present self for examination for at

least 1 year upon SSS notice.

2. Lump sum – for those have not paid at least

36MC prior to the SEM of the disability.

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 MONTHLY PENSION

Amount based on number of paid MCs as well as the

years of membership.

Lowest is P1,000 for less than 10 CYS

AMOUNT AND
COMPUTATION P1,200 for those at least 10 CYS

P2,400 for those at least 20 CYS

LUMP SUM (Whichever is higher)

For PTD

1. Monthly pension x no. of MCs; or

2. Monthly pension x 12

For PPD
Either of the two calculations for PTD then
multiplied by the percentage of the disability,
whichever is higher.

PAYMENT PROCEDURE Entitled to supplemental allowance of P500

PRESCRIPTIVE PERIODS 10 years from the occurrence of disability

Primary beneficiaries shall be entitled to the

100% of the MP

IN CASE OF DEATH OF
MEMBER Secondary beneficiaries, if death was within 60m
from start of pension and no primary beneficiaries:

• 5Y Lump Sum equivalent to the total

monthly pensions.

However, if the disability was partial then pension

shall end upon the death of the member

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 If conceived on or before date of contingency of a
totally disable pensioner, they shall receive 10% of
the member’s MP or P250 (whichever is higher)
however:
DEPENDENT’S PENSION
• Only 5 from the youngest, preference as to
legitimate, legitimated or adopted.

• Stops at the age of 21, or when employed, or

dies.

• Unless incapacitated due to mental defect

acquired during minority.

NOTE: The minor children of a partially disable

pensioner are not entitled to the dependent’s
pension.

E. DEATH AND FUNERAL BENEFIT

It is a cash benefit given in the form of either a monthly pension or a lump sum
amount for the beneficiaries of a deceased member.

Monthly pension – only to the primary

beneficiaries of a deceased member who has paid
QUALIFICATIONS at least 36MC prior to the semester of death.

Lump sum – which can be both awarded to

secondary and primary

beneficiaries if the deceased members had paid less

than 36MC prior to SEM of death.

Entitled either to monthly or lump sum amount

NATURE AND TYPES OF depending if deceased member has paid at least
BENEFITS 36MC prior to the SEM of death.

NOTE: If the member had paid no contribution at

all, only funeral benefit shall be given.

Funeral Benefit is a variable amount given from

P20K to P40K depending on the amount of MCs
and Creditable Years of Service (CYS)

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 MONTHLY PENSION

Depends on the number of MCs as well as CYS and

number of dependent children not exceeding 5.
The monthly pension shall be the highest of either:

1. P300 + 20% of Average Monthly Salary

Credit + 2% of Average MSC for every year
AMOUNT AND in excess of ten years of CYS.
COMPUTATION
2. 40% of the Ave. MSC

3. P1,000 if CYS is less than 10 CYS; P1,200 if

CYS is (10-20) and P2,400 if CYS is (20) and
be paid not less than 60m

LUMP SUM
If only secondary beneficiaries are present upon
member’s death payment shall be in LUMP SUM

1. If member paid at least 36MC prior to SEM of

death it shall be [36 x MP]

2. If less than 36MC prior to SEM of death,

whichever is higher between:

i. 12 x MP
ii. MP x No. of MCs

PAYMENT PROCEDURE Entitled to 13th month pension

If conceived on or before date of death they shall

receive 10% of the member’s MP or P250
(whichever is higher) however:
DEPENDENT’S PENSION
• Only 5 from the youngest, preference as to
legitimate, legitimated or adopted.

• Stops at the age of 21, or when employed, or

dies.

• Unless incapacitated due to mental defect

acquired during minority.

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Obligations of employer under the Social Security Law

Employers have two (2) distinct obligations under the Social Security Law,
namely:

(a) To make a timely report of its employees for coverage, and

(b) To make timely remittance of premiums.

Effect of non-reporting or non-remittance

If the employer fails to report the employee for SSS coverage or fails to remit the
premium contributions, such failure or refusal, by express provision of Section 22 (b) of
the Social Security Act, shall not prejudice the right of the covered employee to social
security benefits. In short, the employee would still be entitled to the social security
benefits.

Therefore, if an employee dies, becomes disabled, gets sick or reaches the

retirement age without him being reported for coverage or without the premium
contributions being remitted, the SSS will still pay the employee corresponding benefits,
but the SSS will hold the employer liable for damages equivalent to the benefits the
employee or his heirs are entitled to receive. Moreover, the employer will be held
criminally liable for such violation.

Effect of failure to make timely remittance of contributions

Failure to make a timely remittance of the premium contributions will hold the
employer liable to 3% monthly penalty from the date the contribution falls due until paid.
The 3% prescribed penalty for failure to remit premium contributions is intended to
ensure that the employer complies with its obligation to remit premium contribution.
Furthermore, the employer will be held criminally liable for such violation.

Demand is not a condition precedent for remittance of premium contributions

The employer is duty-bound to remit the contributions without need of any

demand from the employee. It is the legal obligation of every employer to remit within
the first seven (7) days of the month the contributions of the employee and the employer
to the SSS failing in which invites the imposition of three percent (3%). With this mandate
of the law, demand on the part of the employee before the employer remits those
contributions to the SSS is not a condition precedent for such remittance. The Social
Security System can collect such contributions in the same manner as taxes are made
collectible under the National Internal Revenue Code.

The Social Security System (SSS) and the Social Security Commission (SSC)

The SSS is the implementing arm of the Social Security Act. It is a corporate body
directed and controlled by the Social Security Commission. It has a personality separate
and distinct from the Government. The System’s own organic act specially provides that
it can sue and be sued in Court.

The SSC is co-equal in rank with the Regional Trial Courts. Therefore, the Regional
Trial Court cannot issue writs of Injunction, Certiorari and Prohibition against the SSC. It
performs administrative as well as quasi-judicial functions. It may sue and be sued in the
Regional Trial Courts only on matters connected with its administrative functions, but

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not on matters connected with its quasi-judicial functions. It has jurisdiction over
disputes arising under the Social Security Act with respect to coverage, entitlement of
benefits, collection and settlement of contributions and penalties thereon, or any other
matter related thereto.

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 THE GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997
PRESIDENTIAL DECREE No. 1146
(as amended by REPUBLIC ACT No. 8291)

MANDATE
The Government Service Insurance system was created by the Commonwealth Act No.
186 and Republic Act No. 8291. GSIS is a social insurance institution that provides a
defined benefit scheme under the law. It insures its members against the occurrence of
certain contingencies in exchange for their monthly premium contributions.

GSIS members are entitled to an array of social security benefits, such as life insurance
benefits, separation or retirement benefits, and disability benefits.

GSIS is also the administrator of the General Insurance Fund by virtue of RA 656
(Property Insurance Law). It provides insurance coverage to government assets and
properties that have government insurable interests.

COVERAGE OF THE GOVERNMENT SERVICE INSURANCE SYSTEM

The GSIS covers government employees, irrespective of employment status, who are
employed with:
A. The national government, its political subdivisions, branches, agencies or
instrumentalities;
B. Government-owned or controlled corporations;
C. Government financial institutions with original charters;
D. Constitutional Commission; and
E. The judiciary.

COMPULSORY MEMBERSHIP
Membership with the GSIS is compulsory upon:
A. All government personnel who are receiving fixed monthly compensation
and have not reached the mandatory retirement age of 65 years old,
whether elective or appointive;
B. Elective Officials who will be more than 65 years old at the end of his
term(including the period of his re-election without interruption);
C. Officials appointed by the President who remain in office after reaching
the age of 65;
D. Contractal or casual employees who receive fixed monthly
compensation and render the required number of working hours for the
month;
NOT SUBJECT TO COMPULSORY COVERAGE
Employees excluded from compulsory coverage of the GSIS:
A. Uniformed personnel of the AFP, PNP, BJMP or BFP;
B. Baranggay and Sanggunian Officials who are not receiving fixed monthly
compensation;
C. Contractual Employees who are not receiving fixed monthly
compensation;and
D. Employees who do not have monthly regular hours of work and are not
receiving fixed monthly compensation

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CLASSES OF MEMBERSHIP
AS TO TYPE:
A. REGULAR MEMBERS – Employees of the republic of the Philippines
whether national or local, legislative bodies, or in GOCCs with original
charters in GFI except uniformed personnel of PNP, AFP, BJMP or BFP.
B. SPECIAL MEMBERS – They are those of the constitutional commissioners,
members of the judiciary and those of equivalent rank who are required to
pay to the GSIS contributions.
AS TO STATUS:
A. ACTIVE MEMBERS – They are those still in the government service
together with their government agency and are required to pay monthly
contributions
B. INACTIVE MEMBERS – They are those who were separated from
government service either because of retirement, dismissal, resignation or
retrenchment.
EFFECT OF SEPARATION – Shall continue to be a member and shall be entitled to
whatever benefits he has qualified to in the event of contingency compensable
under the GSIS Law.

BENEFICIARIES
1. Primary Beneficiaries:
a. Legal dependent spouse
b. Legal dependent children

2. Secondary Beneficiaries
a. Dependent Parents
b. Dependent descendants subject to restriction to dependent children

DEPENDENTS
1. Legitimate spouse dependent on the member for support;
2. Legitimate, Legitimated, legally adopted or illegitimate children who:
a. Are not gainfully employed(those who earn equal to minimum
compensation of a government employee;
b. Are not over the age of majority; or
c. If over the age of majority, is unable for self-support due to mental or
physical defect acquired before the age of majority.
3. Dependent Parents

BENEFITS UNDER THE GSIS LAW) ( LSSUD FR)

1. Life Insurance Benefits
2. Retirement Benefits
3. Separation Benefits
4. Unemployment Benefits
5. Disability Benefits
6. Survivorship Benefits
7. Funeral Benefits

1. LIFE INSURANCE BENEFITS

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Under the GSIS, at the onset it started with the Life Endowment Policy, but since August
1, 2003 it is now the Enhanced Life Policy.

COMPUSLORY LIFE INSURANCE COMPULSORY LIFE INSURANCE

BENEFITS UNDER THE BENEFITS UNDER THE
LIFE ENDOWMENT POLICY (LEP) ENHANCED LIFE POLICY (ELP)
Covers members prior to August 1, 2003 Covers members since August 1, 2003

Has maturity benefits No longer has maturity, but is a renewable

year term life insurance

Consists of Consists of
1. Maturity Benefits 1. Death Benefit
2. Cash Surrender Value (payable to 2. Termination Value (earned by the
member if separated from service before policy in percentage of premiums actually
maturity) paid.
3. Death Benefit 3. Cash Dividends
4. Additional Death Benefit
5. Cash Dividends

2. RETIREMENT BENEFITS
It is a monthly pension calculated from the years of service as well as the average monthly
compensation for the last three years.
ELIGIBLITY

1. A member has rendered at least 15 years of service;

2. Is at least 60 years of age at the time of retirement; and
3. He is not receiving a monthly pension from PTD.

RETIREMENT BENEFITS OPTIONS

1. Lump Sum equivalent to 60 months of Basic Monthly Pension payable at the time
of retirement and after the expiration of the 5 years covered by the lump sum, member
shall be covered by an Old Age Pension Benefit equal to Basic Monthly Pension payable
for life. (Lump Sum for five years and then Old Age Pension)
2. Cash Payment equivalent to 18 Months of Basic Monthly Pension and Monthly
Pension for Life payable immediately (Cash Payment and Immediate Pension)

NOTE: Under RA 8291, the change for retirement benefits is not allowed.
The Retiree dies during the processing of retirement benefits
LUMP SUM Legal heirs or beneficiaries shall be
entitled to the five-year lump sum note
however that their Survivorship Benefits
shall be granted after the 5 year
coverage but it must be filed (referring to
the survivorship claim) within 4 year
prescriptive period

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 IMMEDIATE PENSION OPTION Legal heirs are entitled to 18 months of
basic monthly pension and accrued
pension if any, and that Survivorship
Benefits is paid.

IF OPTION WAS NOT INDICATED Then the option for immediate pension
shall be considered.

NOTE: The proceeds shall be distributed in accordance with the law on succession.

Q. What if the member is re-employed? He or she shall be considered as a new

entrant meaning that his or her payments before that were benefited shall be excluded
in the computation.

Q. When shall the period of pension commence? If the member chose the immediate
pension option, pension shall commence on the first day of the month following the
retirement.

REQUIREMENT OF RENEWAL

Note:
that every GSIS retiree pensioner must comply with ARAS or the Annual
Renewal of Active Status for Old Age and Survivor Benefits, this is required every year,
if the member or beneficiaries fails to renew the following shall be the effects:

1. Pension shall be suspended

2. Non-entitlement to cash gifts
3. Non-entitlement to pension increases.

3. SEPARATION BENEFITS

It is the benefit given to a GSIS member who has been separated from service, note that
the GSIS Law considers the length of service in the benefit calculation.

At least 3 years but less than 15 years
of service
Entitled to 100% Average Monthly
Compensation for every year of service
but not less than P12,000 payable upon
age of 60 or if separated is already at least
age of 60 (note here that there is no
pension).

At least 15 years of service Cash payment equivalent to 18 times the

BASIC MONTHLY PENSION plus Old Age
Pension which is Monthly Pension equal
to basic monthly pension payable for life
(note the similarity to Immediate Pension
option under Retirement Benefits).

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4. UNEMPLOYMENT BENEFITS
Unemployment benefits consists of 50% of average monthly compensation, a member
who rendered at least 15 years of service will be entitled to separation benefits
instead.

1. Recipient must be a Permanent employee at the time of separation;

2. His separation was Involuntary due to abolition of office or position resulting from
reorganization; and
3. He has been paying contribution at least 1 year prior to separation

5. DISABILITY BENEFITS
The term disability refers to any loss or impairment of the normal functions of the
physical and or mental faculty of a member, which reduces or eliminates his or her
capacity to continue with his/her current gainful occupation or engage in any other
gainful occupation.
PERMANENT TOTAL PERMANENT PARTIAL TEMPORARY TOTAL
DISABILITY DISABILITY DISABILITY

Disability due to injury or
disease causing complete,
irreversible, and
permanent incapacity that
will permanently disable a
member to work or to
engage in any gainful
occupation resulting to loss
of income.
Arises due to the complete
and permanent loss of the
use of certain body parts
resulting to the disability
to work for a limited
period of time
Accrues or arises when the
impaired physical and or
mental faculties can be
rehabilitated and or
restored to their normal
function, but such
disability shall result in
temporary incapacity to
work or to engage in any
gainful occupation.

 Any finger  Temporary paralysis

 Complete loss of sight  Any toe
for both eyes  One arm, hand, foot, leg
 Loss of two limbs at or  One or both ears
above the ankle or  Hearing of one or both
wrists  Sight of one eye
 Permanent or  Such other cases
complete paralysis of
two limbs;
 Brain injury resulting
to imbecility or
insanity
 Such other cases
approved by GSIS

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Disability or Injury Not Covered
Any disability or injury or as a result of the following shall not be compensable:
1. Grave misconduct (GPGDW)
2. Participation in riots
3. Gross and inexcusable negligence
4. Under the influence of drugs or alcohol
5. Willful intentional to injure or kill himself or another

Suspension of Benefit
Any applicable disability benefit shall be suspended when he or she is:
1. Re-employed; (RRFR)
2. Recovers from his or her disability as determined by GSIS
3. Fails to present himself for medical examination when required by GSIS
4. Is receiving any other pension either from GSIS or another local or foreign institution
or organization.

Computation and entitlement to disability benefits

PERMANENT TOTAL PERMANENT PARTIAL TEMPORARY TOTAL

DISABILITY DISABILITY DISABILITY

COMPUTATION OF BENEFIT

Entitled to monthly income
benefits for life equivalent
to the basic monthly
pension effective from the
date of the disability.
Period of entitlement shall
be determined but shall not
exceed 12 months and shall
cover that leave of
absences without pay
during period of
entitlement.
Period shall not exceed 120
days in one calendar year,
but it can be extended by
GSIS but not to exceed a
total of 240 days.
• 75% of daily salary

CONDITIONS FOR ENTITLEMENT

1. He or she is in the service at the time of disability; or

2. If separated from the service, has paid at least 36 Monthly Contributions within the
5 Year period immediately preceding his/her disability; or has paid at least 180MCs
prior to the disability provided:

a. He/she gainfully employed prior to the commencement of the disability

resulting to the loss of income, evidenced by proof;
b. Not a registered member of any social insurance institution ; and
c. Not receiving any other pension either from GSIS or any local or foreign
institution or organization.

If the member was unable This may be extended by

to pay at least 180MCs but the GSIS to 240 days
has at least 3 years of

21
 service, entitled to cash subject to medical
payment equivalent to evaluation.
100% of AMC per year of
service not less than P12K.
Forfeiture of Disability Benefits

Any member enjoying disability benefits shall automatically forfeit his right to
continued enjoyment thereof if he or she deliberately refuses or fails to:

1. Have self medically treated by a physician when required by GSIS;

2. Take the prescribed medications;
3. Have himself/herself confined in a hospital without justifiable reason when required
by the GSIS; or
4. Avail himself of rehabilitation facilities as recommended by GSIS
5. Observe such precautionary and or preventive measures as prescribed by a physician
or required to prevent the aggravation or continuance of disability.

6. SURVIVORSHIP BENEFITS
When a member or pension dies the beneficiaries shall be entitled to the following
survivorship benefits:

A. Survivorship Pension consisting of :

a. Basic survivorship pension which is 50% of the BASIC MONTHLY
PENSION; and

b. Dependent children’s pension which is equivalent to 10% of BASIC

MONTHLY PENSION for each child not exceeding 50% of the BASIC
MONTHLY PENSION

B. Cash Payment equivalent to 18 months of BASIC MONTHLY PENSION

C. Cash Payment equivalent to 100% of AMC for every year of service with paid
contributions but not less than P12, 000.

SURVIVORSHIP BENEFITS OF MEMBERS IN ACTIVE SERVICE

If at time of death, has rendered at Primary beneficiaries, if none, the

least 15 years of service
secondary and if none, the legal heirs shall
be entitled to the cash payment equivalent
to the 18 months of BASIC MONTHLY
PENSION(inclusive of Survivorship
Pension)

If less than 15 years of creditable Cash payment equivalent to 100% of AMC

service for every year of creditable service
(inclusive of Survivorship Pension)

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SURVIVORSHIP BENEFITS OF INACTIVE MEMBERS
If at time of death, has rendered at least Survivorship pension only
15 years of service

At least 3 years but less than 15 years Cash payment equivalent to 100% of AMC
but less than 60 for every year of creditable service but not
less than P12K

If at least 60 If received his separation benefit the

beneficiaries or heirs shall not be entitled
to the survivorship benefits.

But if the member has not received such,

then the cash payment shall follow (upper
box).

PAYMENT OF SURVIVORSHIP BENEFITS

1. If dependent spouse, only survivor shall receive the survivorship pension.

2. If only dependent children entitle to the dependent children’s pension counted from
the youngest not exceeding 5.
3. If both (1) and (2) survives entitled to (1) and (2) applies respectively.
4. Death of any dependent shall not entitle others to the forfeited share.
5. In absence of natural guardian, guardian de facto may file a Petition for Guardianship
to be able to claim the survivorship benefits on behalf of the dependent children
6. If pensioner dies within the 5-year period after receiving the five year lump sum, the
survivorship pension shall still be paid after the five year period but the claim for such
must be filed before end of the 4 year prescriptive period.

CONDITIONS FOR ENTITLEMENT

The primary and secondary beneficiaries, except the dependent children, shall be
entitled to the applicable survivorship benefits subject to following conditions:

1. Not engaged in any gainful occupation (no longer dependent)

2. The surviving spouse and the deceased members were living together as husband and
wife;
3. Not self-employed or gainfully engaged
4. May be self-employed but income is less than the minimum compensation
5. Not receiving any other pension from GSIS or another local or foreign institution or
organization
6. In case of dependent spouse, the payment of basic survivorship pension shall
discontinue when he or she remarries, cohabits, or engages in common law relationship.

7. FUNERAL BENEFITS
This is intended to defray the expenses incident to the burial and funeral of the
deceased member, pensioner or retiree.

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To Whom Payable, in order

1. Legitimate Spouse;
2. Legitimate child who spent for the funeral services; or
3. Any other person who can show incontrovertible proof that he shouldered the funeral
expenses.

CONDITIONS FOR ENTITLEMENT

1. An active member; or
2. A member who has been separated from the service with more than 15 years of
creditable service but entitled to future separation or retirement benefits.
3. Old age or disability pensioner
4. A retiree who at the time of his retirement is at least 60 years of age and with at least
20 years of service but opts to retire under RA 1616
5. A member who retired under RA 1616 prior to June 24, 1997 with at least twenty
years of service regardless of age.

PRESCRIPTIVE PERIOD TO CLAIM GSIS BENEFITS

It shall be four years from the date of contingency except under life insurance and
retirement.

QUASI-JUDICIAL FUNCTION OF GSIS

The GSIS Board of Trustees (Board), under Section 30 of Republic Act No. 8291 (RA No.
8291), is given quasi-judicial authority to settle disputes arising under the GSIS Charter
and other laws administered by the System.

The GSIS Board of Trustees has the power, under Rule V, Section 26.2 of the Revised
Implementing Rules and Regulations (RIRR) of RA 8291, to exercise appellate authority
over Decisions/Resolutions of the Committee on Claims (CoC), which is mandated to
evaluate and resolve all issues and complaints arising from any dispute in the settlement
of claims.
Note: No Petition shall be docketed without first being evaluated and resolved by the CoC.
WHERE TO FILE:
An appeal or motion for reconsideration shall be filed with the Office of the Corporate
Secretary (OCS) within the period and manner herein provided.
PROCEDURAL REQUIREMENTS IN FILING AN APPEAL OR RECONSIDERATION
Upon receipt of the CoC Decision/Resolution or Board Decision, a Petitioner who intends
to file an appeal or motion for reconsideration, as the case may be, must comply with the
following procedural requirements:

A. For APPEAL:
1. File a Petition, which must be typewritten or in printed form, essentially
containing:
i. The full name, address, and legal capacity of the petitioner;
ii. The full name and address of the respondent;
iii. The date when the petitioner received the CoC Decision/Resolution to
establish the timeliness of the appeal;

24
 iv. A clear and concise statement of the cause or causes of action; and
v. The relief sought.

2. The Petition must be properly verified. For purposes of this PPG, a ‘verified
Petition’ is defined as a Petition that is accompanied with an attached
‘verification’ or a notarized affidavit which states that the Petitioner has fully
read the Petition and that the allegations therein are true and correct based
on his/her personal knowledge or on authentic records.

3. The Petitioner shall serve the respondent or opposing party, CoC, with a copy
of the Petition and its supporting documents with proof of service thereof.

4. The Petitioner must pay filing fees in the amount of Two Hundred Pesos (Php
200.00) payable to the GSIS.

B. For MOTION FOR RECONSIDERATION

1. File a Motion for Reconsideration, which must be typewritten or in printed

form, containing at least:

i. the date of the Board Decision; and

ii. the date when the petitioner received the Board Decision.

MODES OF DATE OF FILLING

An Appeal may be filed only in the manner stated below and its date of receipt shall be
reckoned as follows:

A. If filing is done personally, the date of filing shall be the actual date of receipt of
the appeal by the OCS.
B. If filing is done by registered mail, the date of filing shall be the date of mailing as
evidenced by the registry receipt.
C. If filing is done through ordinary mail, the date of filing shall be the date stamped
on the envelope when the mail was received by the Philippine Post Office.
D. If filing is done through private courier service, the date of filing shall be the
actual date of receipt of the appeal by the OCS.

PERIOD OF APPEAL

A Petitioner may appeal the CoC Decision/Resolution by filing a verified Petition with
the OCS and furnishing copies thereof to the CoC within sixty (60) calendar days from
receipt of the Decision/Resolution of the CoC.

WHEN MOTION FOR EXTENSION OF TIME TO FILE AN APPEAL IS FILED

25
A written request for extension of time to file the petition may be filed with the OCS
personally, through registered mail, ordinary mail, private courier service, or through e-
mail, only before the expiration of the sixty (60)-day period to file an appeal.

A. If a timely motion for extension is filed, it shall be granted but in no case shall it
exceed thirty (30) calendar days.

B. The thirty (30)-day extension for filing a petition starts at the end of the sixty
(60)-day period for filing an appeal.

C. Once the thirty (30)-day extension is granted, no further extension shall be

allowed.

26
 PORTABILITY LAW

Republic Act No. 7699: An Act Instituting Limited Portability Scheme in the Social
Security System by Totalizing the Worker’s Compensable Services in Each of the
Systems

Section 1. It is the declared policy of the State to institute a scheme for totalization and
portability of social security benefits with the view of establishing within a reasonable
period a unitary social security system.

Purpose: This law was enacted to enable to those from the private sector who transfer to
the government service or from the government sector to the private sector to combine their
years of service and contributions which have been credited with the SSS or GSIS, as the case
may be, to satisfy the required number of years of serve for entitlement to the benefits under
the applicable laws.

TOTALIZATION

It refers to the process of adding up the periods of creditable services or contributions

under each of the systems, SSS or GSIS for the purpose of eligibility and computation of
benefits.

PORTABILITY

It refers to the transfer of funds for the account and benefit of a worker who transfers
from one system to the other.

Coverage:

All workers-members of the GSIS and SSS who transfer from the public sector to the
private sector or vice versa or who wish to retain their members in both Systems.

Creditability and Totalizations of Contributions and Benefits:

A covered worker who transfers employment from one sector to another sector or is
employed in both sectors shall have his creditable services or contributions in both
Systems credited to his service or contribution record in each of the Systems and
shall be totalized.

This is for the purposes of old - age, disability, survivorship, and other benefits in case the
covered member does not qualify for such benefits in either or both Systems without
totalization, provided, however, that overlapping periods of membership shall be
credited only once for purposes of totalization.

27
Limited Portability of Funds:

The processes involved in the prompt payment of money benefits to eligible members are
the joint responsibility of the GSIS and the SSS. The System or Systems are responsible
for the payment of money benefits due to a covered worker and shall release the same
within 15 working days from receipt subject to submission of required documents and
records in the System or Systems.

Totalization of Contributions and Benefits; How Processed

Contributions All contributions paid to both systems

shall be considered in processing of
benefits which he can claim from either or
both Systems. Provided however, that the
amount of benefits to be paid by one
System shall be in proportion to the
number of contributions actually remitted
to that System. The term contributions
refer to the contributions paid by member
or employer to either the GSIS or the SSS
on account of his membership.

Creditable services or periods of All creditable services or periods of

contribution contributions continuously or in
aggregate of a worker under either of the
sectors shall be added up and considered
for purposes of eligibility and
computation of Benefits.

Creditable Services

The following insofar as the public sector is concerned are the following:

1. All previous services rendered by an official or employee pursuant to an appointment

whether permanent, provisional or temporary;

2. All previous services rendered pursuant to a duly approved appointment to a position

in the CS with compensation or salary

3. Period which was on authorized leave of absence without pay not exceed one year

4. Period one was out of service as result of illegal termination of his services as finally
decided by the proper authorities.

5. All previous services with compensation or salary rendered by elective officials.

28
Periods of Contributions

For the private sector, it refers to the period during which a person renders services for
an employer with compensation or salary, and during which contributions were paid to
the SSS. A self-employed person is considered as employee and employer at the same
time.

BENEFITS

All services or contributions paid by a member personally and those that were paid by
the employers to either System shall be considered in the computation of benefits which
may be claimed from either or both Systems. However, the amount of benefits paid by
one System shall be in proportion to the services rendered or periods of contributions
made to that System

Benefits refer to the following

1. Old age benefit
2. Disability benefit
3. Survivorship Benefit
4. Sickness Benefit
5. Medicare Benefit, provided that the member shall claim said benefit from the System
where he was last a member, and
6. Such other benefits common to both Systems that may be availed of through
totalization.

Totalization, When Applicable

1. If a worker is Not qualified for any benefits from both Systems; or
2. If a worker in the Public sector is not qualified for any benefits from the GSIS;
3. If a worker in the Private sector is not qualified for any benefits from the SSS.

For purposes of computation of benefits, totalization applies in all cases so that the
contributions made by the worker-member in both systems shall provided
maximum benefits which otherwise will not be available. In no case shall the
contribution be lost or be considered forfeited.

Cayo G. Gamogamo vs. PNOC Shipping and Transport Corp.

[G.R. No. 141707. May 7, 2002]

Supreme Court held that the TOTALIZATION of service credits is only resorted to
when the retiree does not qualify for benefits in either or both of the systems. In
case the employee is qualified to receive benefits granted by the GSIS or the
SSS, as the case may be, he cannot avail of the benefits under R.A. 7699.

GSIS CASE NO. 006-12

In the matter of: Appeal from COC Res. No. 65-2011 Denying Retirement Benefits under
portability law

Thus, it is very clear that the law itself provides for a condition which will
ultimately qualify a member for totalization, in that, totalization may be had only

29
 when the covered member does not qualify for benefits under either or both the
GSIS or the SSS. The right to avail of the totalization is thus not absolute. If a
member qualifies for benefits under either the GSIS or the SSS, the member
cannot avail of totalization under the Portability Law.

Q. What if the worker is still not qualified after totalization?

A. The member will get whatever benefits correspond to his/her contributions in either
or both Systems. [Section 4, Rule 4, IRR of RA 7699]

Q. What if the worker is qualified for benefits in both systems?

A. Totalization shall not apply. [Section 4, Rule 4, IRR of RA 7699]
Processing of Totalization
It is the joint responsibility of the GSIS and SSS for the processing of the totalization of
creditable services or periods of contributions and computations of benefits provided
under RAR 7699.

Effect of Overlapping Periods of Creditable Services

It shall be credited only once. This refers to the periods during which a worker
simultaneously contributes to both Systems.

2005 Bar Question:

How are the portability provisions of RA 7699 beneficial or advantageous to SSS and GSIS
members in their creditable employment services in the private sector or the government
as the case may be?

Answer: Portability provisions of R.A. No. 7699 shall benefit a covered worker whose
creditable services or contributions in both systems credited to his service or
contribution record in each of the system and shall be totalized for purposes of old-age,
disability, survivorship and other benefits. (Sec. 3)

The "portability" provisions of R.A. 7699 allow the transfer of funds for the account and
benefit of the worker who transfers from one system to another. This is advantageous to
the SSS and GSIS members for purposes of death, disability or retirement benefits. In the
event the employees transfer from the private sector to the public sector, or vice‐versa,
their creditable employment services and contributions are carried over and transferred
as well.

30