Social Security Act of 1997

(RA 8282) 3. OTHERS

As to DEATH BENEFITS, if no beneficiary qualifies under the Act, benefits shall be
Who are covered: paid to Legal Heirs in accordance with Law of Succession
1. EMPLOYER – any person, natural or judicial, domestic or foreign who carries on in
the Philippines any trade, business, industry undertaking or activity of any kind and BENEFITS
uses the services of another person who is under his orders as regards employment 1. Monthly Pension
8(c) 2. Dependents Pension
*EXEMPT EMPLOYER: government and any of its political subdivisions, branches and 3. Retirement
instrumentality, including GOCCs, i.e., those under GSIS 4. Death
2. EMPLOYEE – any person who performs services for an employer who receives 5. Permanent Disability
compensation for such 6. Funeral
services, where there is an employer-employee relationship 7. Sickness
3. SELF-EMPLOYED – considered both employer and employee 8. Maternity (ONLY 1ST FOUR DELIVERIES OR MISCARRIAGES)
9. Loan Grant
DEPENDENTS
1. Legal spouse entitled for support; COVERAGE
2. Child, whether legitimate, legitimated, legally adopted or illegitimate; 1. COMPULSORY
3. Parents dependent for support a. All employees not over sixty (60) years of age and their employers; compulsory
coverage of the employer shall take effect on the first day of his operation and that
CONDITIONS FOR CHILD TO BE CONSIDERED DEPENDENT of the employee on the day of his employment
1. Unmarried; b. Self-employed persons as may be determined by the Commission under such
2. Not gainfully employed; rules and regulations as it may prescribe, including, but limited to: all self-employed
3. Has not reached 21 years of age; OR 3. Not over age of majority; OR professionals; partners and single-proprietors of business; actors and actresses,
4. Incapable of supporting himself either physically or mentally prior to 21 years of directors, scriptwriters and news correspondents not employees; professional
age or athletes, coaches, trainers and jockeys, and individual farmers and fishermen; upon
age of majority, as the case may be their registration with the SSS
c. Domestic helpers sixty years of age and below with a monthly income of not less
BENEFICIARIES than P1,000 on the date of their employment
1. PRIMARY d. Individual farmers and fishermen under SSS rules and regulations
a. Dependent Spouse until remarriage AND
b. Dependent Legitimate or Legitimated or Legally Adopted and Illegitimate B. VOLUNTARY
ChildreN a. Filipinos recruited by foreign-based employers for employment abroad
b. Employee separated from employment to maintain his right to full benefits
2. SECONDARY c. Self-employed who realizes no income for a certain month
a. Dependent Parents d. Spouses who devote full time to managing household and family affairs unless
b. Absent primary and secondary beneficiaries, any other person designated by specifically mandatorily covered
member as secondary beneficiary
*By Arrangement: Any foreign government, international organization or wholly
owned instrumentality employing workers in the Philippines or employing Filipinos
outside the Philippines may enter agreement with Philippines for inclusion of such
employees in SSS EXCEPT those already covered by their respective civil service
retirement System
Report immediately to SSS the names, ages, civil status, occupations, salaries and
dependents of all his covered employees
B. Self-employed:
Report to SSS within 30 days from the first day of his operation, his name, age, civil
status, occupation, average monthly net income and his dependents

EXCEPTIONS FROM COVERAGE FUNDING

1. Employment purely casual and not for purpose occupation, or business employer 1. Employer’s contributions
2. Service performed on or in connection with alien vessel, if employed when such 2. Employee’s/member’s contributions
vessel is outside of Philippines
3. Employees of Philippine government or instrumentality or agency thereof EXEMPTION FROM TAX/LEGAL PROCESS/LIEN
4. Service performed in the employ of a foreign government, or international Property, assets, and revenues of SSS and GSIS are all exempt from taxes, and all
organizations, or wholly owned instrumentality employing workers in the benefits paid by SSS or GSIS shall likewise be exempt from taxes, assessments, fees,
Philippines or employing Filipinos outside of the Philippines charges, and duties of all kind
5. Services performed by temporary employees and other employees excluded by DISPUTE SETTLEMENT
SSS regulation; Dispute arising from:
employees of bona fide independent contractors shall not be deemed employees of 1. Coverage
the employer engaging the services of an independent contractor 2. Benefits
3. Contributions
COMPENSATION 4. Penalties
All actual renumeration for employment, including the mandated cost-of-living 5. Any matters related thereto
allowance, as well as the cash value of any renumeration paid in any medium other
than cash except that part of the renumeration in excess of the maximum salary Jurisdiction: Social Security Commission
credit When decision made: Mandatory period of 20 days from submission of evidence
Appeal:
BASIS OF CLAIM CA – questions of law and facts
Non-work connected disability, sickness, maternity, death and old age and other SC – questions of law only
contingencies resulting in loss of income or financial burden (sec. 2)
PRESCRIPTIVE PERIOD
EFFECTS OF SEPARATION FROM EMPLOYMENT 10 years from accrual of right of action
1. Employer’s contribution on his account ceases
2. Employee’s obligation to contribute also ceases at the end of the month of
separation
3. Employee shall be credited with all contributions paid on his behalf and entitled
to benefits according to the provisions of this Act

REPORTING REQUIREMENTS
A. Employer:
Republic Act No. 11199 amending Republic Act No. 8282. principals of sea-based OFWs, pay the required SSS contributions, in which case
these land-based OFWs shall no longer be considered in the same manner as self-
The new law on Social Security System provides some new provisions particularly employed person in the Act. Instead, they shall be considered as compulsorily
the following: covered employees with employer and employee shares in the contributions that
shall be provided for in the bilateral labor agreements and their implementing
1.In the new SS Law, Section 8, (j) (1) of R.A. No. 11199, the term Employment now administrative agreements: Provided, That, in countries which already extend social
includes as an exception those with no employer-employee relationship to wit: security coverage to OFWs, the DFA through the Philippine embassies and the DOLE
“(j) Employment- Any service performed by an employee for his employer except: shall negotiate further agreements to serve the best interests of the OFWs.
(1) Services where there is no employer-employee relationship in accordance with
existing labor laws, rules, regulations and jurisprudence”.
The DFA, the DOLE, and the SSS shall ensure compulsory coverage of the OFWs
Significance: This new provision sets the record straight that when there is no
through bilateral social security and labor agreements and other measures for
employer-employee relationship, the member could declare himself as a voluntary
enforcement.
member. Also, the provision in the old law, including in the exception (a)
employment which is purely casual and not for the purpose of occupation or
business of employer and (b) service performed on or in connection with an alien Upon the termination of their employment overseas, OFWs may continue to pay
vessel by an employee if he is employed when such vessel is outside the Philippines contributions on a voluntary basis to maintain their rights to full benefits.
is now deleted.
2. SECTION 9-B adding Overseas Filipino Workers to Compulsory Coverage. The new
Filipino permanent migrants, including Filipino immigrants, permanent residents
law provides:
and naturalized citizens of their host countries may be covered by the SSS on a
voluntary basis”.
“Coverage in the SSS shall be compulsory upon all sea-based and land-based OFWs
as defined under Republic Act No. 8042, otherwise known as the Migrant Workers
Significance: In the old SSS Law, there was no provision requiring OFWs to be
and Overseas Filipinos Act of 1995, as amended by Republic Act No. 10022:
covered compulsorily in the SSS. There is a difference between sea-based OFW and
Provided, That, they are not over sixty (60) years of age.
land-based OFW.
All benefit provisions under this Act shall apply to all covered OFWs. The benefits
For sea-based OFWs, the manning agency which is considered as an agent of the
include, among others, retirement, death, disability, funeral, sickness and maternity.
principal employer of said OFWs will be considered as if the employer of the sea-
Manning agencies are agents of their principals and are considered as employers of
based OFWs for the purpose of paying for the contributions of the sea-based OFWs.
sea-based OFWs.
This is to ensure that said OFWs will be covered by SSS and can avail of its benefits
For purposes of the implementation of this Act, any law to the contrary
to further their welfare.
notwithstanding manning agencies are jointly and severally or solidarily liable with
their principals with respect to the civil liabilities incurred for any violation of this
Act. For land-based OFWs, they are considered as self-employed persons and shall pay
their contributions voluntarily.
The persons having directs control, management or direction of the manning
agencies shall be held criminally liable for any act or omission penalized under this The Department of Foreign Affairs (DFA) and the Department of Labor and
Act notwithstanding Section 28(f) hereof Employment (DOLE) and all its agencies will be helping SSS in its mandate to ensure
Land-based OFWs are compulsory members of the SSS and considered in the same the social security of OFWs and as such the DFA and DOLE is mandated to negotiate
manner as self-employed persons under such rules and regulations that the bilateral agreements with countries where the primary consideration is to ensure
Commission shall prescribe”. that OFWs will have social security either secured abroad or locally, in the
“The Department of Foreign Affairs (DFA), the Department of Labor and Philippines, but bearing in mind that those offered abroad should be equivalent or
Employment (DOLE) and all its agencies involved in deploying OFWs for employment more than what is given in the Philippines.
abroad are mandated to negotiate bilateral labor agreement with the OFWs’ host
countries to ensure that the employers of the land-based OFWs, similar to the
3. SECTION 14-B which provides for Unemployment Insurance or Involuntary
Separation Benefits. The new law provides for another benefit that can be availed of
a member to wit:

“A member who is not over sixty (60) years of age who has paid at least thirty-six
(36) months contributions twelve (12) months of which should be in the eighteen-
month period immediately preceding the involuntary unemployment or separation
shall be paid benefits in the form of monthly cash payments equivalent to fifty
percent (50%) of the average monthly salary credit for a maximum of two (2)
months: Provided, That an employee who is involuntarily unemployed can only
claim unemployment benefits once every three (3) years: Provided, further, That in
case of concurrence of two or more compensable contingencies, only the highest
benefit shall be paid, subject to the rules and regulations that the Commission may
prescribe”.

Significance: Those who were recently unemployed, involuntarily or separated from

work, can avail of this unemployment insurance or involuntary separation benefits
provided that the qualifications have been met. In summary:
1. The member is not over sixty (60) years of age; and
2. Has paid at least thirty-six (36) months contributions twelve (12) months of
which should be in the eighteen-month period immediately preceding the
involuntary unemployment or separation.
It must be noted that it can only be availed of once every three (3) years provided
that the abovementioned qualifications have been met.

This is very helpful for those who find themselves suddenly and involuntarily
unemployed in order for them to still afford the basic needs.