Handouts on Social Legislation
Concurring with legitimate, legitimated or legally
a. Social Security System
b. Government Service Insurance System
c. Limited Portability Law
SOCIAL SECURITY SYSTEM (R.A. 1161, AS
AMENDED BYR.A. NO. 8282)
ENACTMENT OF SSS LAW: A VALID EXERCISE OF POLICE
POWER
The SSS Law was enacted pursuant to the policy of the
Republic of the Philippines to develop, establish
gradually and perfect a social security system which shall
be suitable to the needs of the people throughout the
Philippines and shall provide protection to the employee
against the hazards of disability, sickness, old age, and
death. Such enactment is a legitimate exercise of police
power. It affords protection to labor, especially to
working women and minors, and in full accord with the
constitutional provisions on the promotion of social
justice to insure the well-being and economic security of
all the people (Roman Catholic Archbishop of Manila v.
Social Security Commission, G.R. No. L-15045, January
20, 1991)
DEPENDENTS UNDER THE SSS LAW
1. The legal spouse entitled by law to receive support
from the member;
2. The legitimate, legitimated or legally adopted and
illegitimate child who is unmarried, not gainfully
employed and has not reached 21 years of age or if 21
years of age, he is congenitally incapacitated or while still
a minor, he has been permanently incapable of self-
support, physically and mentally.
3. The parent who is receiving regular support from the
member (R.A. No. 8282, Sec. 8, par (e))
CONTRIBUTIONS
The amount paid to SSS by and on behalf of the members
in accordance with the R.A. 8282. Regular courts do not
have jurisdiction over the matter of SSS contributions. As
between the parties, Art. 224(a)(4) of the Labor Code is
applicable. (AMECOS Innovations, Inc. and Antonio
Mateo v. Eliza Lopez, G.R. No. 178055, July 2, 2014)
PRIMARY BENEFICIARIES
1. The dependent spouse until he/she remarries; and
2. the dependent legitimate, legitimated, or legally
adopted and illegitimate children.
RULES ON DEPENDENT ILLEGITIMATE CHILDREN
1.
adopted children – shall be entitled to 50% of the share
of the legitimate, legitimated, or legally adopted
children.
2. With no legitimate, legitimated or legally adopted
child – shall be entitled to 100% of the benefits. (R.A. No.
8282, Sec. 8 per (k)).
A wife who is already separated de facto from her
husband cannot be said to be “dependent for support”
upon the husband, absent any showing to the contrary.
Conversely, if it is proved that the husband and wife were
still living together at the time of his death, it would be
safe to presume that she was dependent on the husband
for support, unless it is shown that she is capable of
providing for herself (SSS v. Aguas, et.al. G.R. No. 165546,
February 27, 2006).
SECONDARY BENEFICIARIES
1. In the absence of the primary beneficiaries, the
dependent parents; or
2. in the absence of all the foregoing, any other person
designated by the covered employee (R.A. No. 8282, Sec.
8 par (k))
CONTINGENCY
Refers to the retirement, death, disability, injury or
sickness and maternity of the member.
COVERAGE
1. Compulsory
a. Employees
i. all private sector employees, whether permanent,
temporary, or provisional, who are not over 60 years of
age;
ii. Household helper who is not over 60 years of age with
a monthly income of not less than one thousand pesos
and has rendered at least one month of service;
iii. A Filipino seafarer, upon signing of the standard
employment contract and actual deployment by the
manning agency and the foreign principal, who are
considered as the employers;
iv. All employees of a foreign government, international
organization, or the wholly owned instrumentality which
entered into an agreement with the Philippine
government for the inclusion of such employees in SSS.
b. Employers
i. any person who carried on in the Philippines any trade,
business, industry, undertaking, and uses the service of
another person, except in the Government;
ii. a social civic, professional, charitable, and other non-
profit organization which hire the services of employees
are considered “employers”;
iii. any foreign government, international organization,
or the wholly owned instrumentality which entered into
an agreement with the SSS for the coverage of its Filipino
employees;
iv. a household employer who engages and controls the
services of a domestic worker.
2. Voluntary
a. Non-working spouse, who is legally married to a
member who has at least one posted contribution, who
devotes full time to managing the household and family
affairs and has never been a member of SSS;
b. Overseas-based Filipinos (OFW) being recruited in the
Philippines by foreign-based employers for employment
abroad, or having a source of income in a foreign
country, or residing permanently in a foreign country.
EFFECTIVE DATE OF COVERAGE
1. Compulsory Coverage
a. Employer – on first day he hires the first employee
b. Employee – on the first day of his employment
Self-employed – on the month and year of first monthly
contribution provided that it is not earlier than the
declared start of business.
d. Domestic Worker – upon rendering at least 1 month of
service.
2. Voluntary Coverage
a. OFW – upon first payment of contribution based on
the payment deadline for OFWs, which may be earlier
than the date of registration;
b. Non-working spouse – on the applicable month and
year of the first payment of contribution
c. Separated Member – on the month he/she resumed
payment of contribution.
WITHDRAWAL OF MEMBERSHIP
A member cannot withdraw his membership with the SSS
since membership with the same is for life. However, a
member who was separated from employment or
ceased to be self-employed or OFW has the option to
continue paying SSS contributions as a voluntary
member to maintain the right to full benefits provided by
the SSS.
BENEFITS
1. Monthly pension
2. Maternity leave benefits
3. Retirement benefits
4. Sickness benefits
5. Salary Loan
6. Permanent disability benefits
7. Dependent’s pension
8. Death benefits
9. Funeral benefits
MONTHLY PENSION
Monthly pension shall be the highest of the ff:
1. P300 plus 20% of average monthly salary credit plus
2% of average monthly salary credit for each credited
year of service in excess of 10 years;
2. 40% of monthly salary credit; or
3. P1,000
The monthly pension shall in no case be paid for an
aggregate amount of less than 60 months.
MINIMUM PENSION
1. P1,200 – for members with at least 10 years of credited
service
2. P2,400 – for members with at least 20 years of credited
service
DEPENDENT’S PENSION
1. Equivalent to 10% of monthly pension or P250,
whichever is higher;
2. Payable on account of death, permanent total
disability or retirement;
3. Payable to each dependent child conceived on or
before the date of the contingency but not exceeding 5,
beginning with the youngest and without substitution,
with preference on legitimate child.
The monthly pension and dependent’s pension shall be
suspended upon the reemployment or resumption of
self-employment or the recovery of the disabled
member from his permanent total disability or his failure
to present himself for examination at least once a year
upon notice by the SSS.
RETIREMENT BENEFITS
It is a cash benefit paid either in monthly pension or as a
lump sum to a member who can no longer work due to
old age
Requirements:
1. A member who has paid at least 120 monthly
contributions prior to the semester of retirement shall be
entitled to monthly pension as long as he lives, provided
that:
a. he has reached the age of 60 years and is already
separated from employment or has ceased to be self-
employed; or
b. He has reached the age of 65 years; or
c. He is a surface or underground mineworker whose
date of actual reinstatement is not earlier than April 27,
2016; or
d. A total disability pensioner who has recovered from
disability and is at least 60 years old.
Member has the option to receive his first 18 monthly
pensions in lump sum at a preferential rate of interest as
determined by the SSS.
2. A covered member who is sixty (60) years old but was
not able to contribute at least 120 monthly contributions
prior to the semester of his retirement shall still be
entitled to a lump sum benefit equal to the total
contributions paid by him and on his behalf, provided, he
is separated from employment and is not continuing
payment of contributions to the SSS on his own.
SUSPENSION OF MONTHLY PENSION
The monthly pension shall be suspended upon the re-
employment or resumption of self-employment or a
retired employee who is less than 65 years of age.
DEATH BENEFITS
Upon death of member
1. His primary beneficiaries as of the date of his
retirement shall be entitled to receive the monthly
pension;
2. If he has no primary beneficiaries and he dies within
sixty (60) months from the start of his monthly pension,
his secondary beneficiaries shall be entitled to a lump
sum benefit equivalent to the total monthly pensions
corresponding to the balance of the five-year guaranteed
period, excluding the dependents' pension.
In order for the beneficiary of an employee to be entitled
to death benefits under the SSS, the cause of death of the
employee must be a sickness listed as an occupational
disease by ECC; or any other illness caused by
employment subject to proof that the risk of contracting
the same is increased by the working conditions (Banez
v. SSS, G.R. No. 189574, July 18, 2014)
DISABILITY BENEFITS
Adopting the World Health Organization’s definition of
disability as any restriction or lack of ability to perform
an activity in the manner or within the range considered
normal for a human being, the SSS redesigned the
granting of disability to its members with the objective of
Improving the delivery of services without compromising
the need to ensure that the appropriate disability benefit
is paid to deserving members.
SALIENT FEATURES OF THE NEW DISABILITY PROGRAM
1. Use of the new Manual on Medical Benefits (Disability,
Sickness and Maternity), which is a compilation of 3
medical benefits granted by SSS to its members. It adopts
the International Classification of Diseases and Related
Health Program codes (ICD-10) and includes the most
recent medical management of illness/injuries and their
corresponding ratings. It has been validated
internationally and locally by the different medical
societies.
2. The evaluation of guidelines of illness/injuries also
consider the current physical state of the member, thus,
allowing several claims to be evaluated first based on
supporting documents.
QUALIFIED PERSON FOR DISABILITY BENEFIT UNDER
THE NEW PROGRAM
A member who suffers partial or total permanent
disability, with at least 1 monthly contribution paid to the
SSS prior to the semester of contingency, is qualified,
The disabled member shall again be subject to
compulsory coverage and considered a new member if:
1. He has received a lump sum benefits;
2. is re-employed or has resumed self-employment not
earlier than 1 year from the date of his disability.
INJURIES DEEMED AS PERMANENT TOTAL DISABILITIES
1. Complete loss of sight of both eyes;
2. Loss of 2 limbs at or above the ankle or wrists;
3. Permanent complete paralysis of 2 limbs;
4. Brain injury resulting to incurable imbecility or
insanity;
5. Such cases as determined and approved by the SSS.
The illness which caused the death of a member must be
work-related. The claimant should prove that the illness
was caused by employment and the risk of contracting
the disease is increased by the working conditions. The
new principle is a system based on social security
principle; thus, the introduction of “proof increased risk”
(Esmarialino v. ECC, G.R. No. 192352, July 23, 2014)
INJURIES DEEMED AS PERMANENT PARTIAL DISABILITY
see SSS Guidebook, 2017 p. 62
BENEFITS
1. In case the permanent disabled member dies, it would
be given the same treatment as a retiree dying.
2. For permanent partial disability, the pension is not
lifetime (i.e. loss of thumb entitled the member to only
10 months of pension, while loss of arm is 50 months)
a. it shall be paid in lump sum if the period is less than 12
months
b. For multiple partial disabilities, they shall be additive
when related to deteriorating – the percentage shall be
equal to the number of months the partial disability is
entitled to divided by 75 months. (i.e. loss of sight in one
eye – 25/75; loss of arm – 50/75; if both occur due to
same cause, then 25/75 = 50/75 = 100%, hence, treated
as if it were permanent total disability)
3. Aside from disability benefit, a supplemental
allowance of P500 is paid to the total or partial disability
pensioner to meet the extra needs arising from disability
4. Total disability pensioner is entitled to 13th month
pension payable every December and in case of partial
disability pensioner, a 13th month pension shall be paid,
provided that the pension duration is at least 12 months.
5. As of January 1, 2017, all total disability pensioners are
also entitled to an additional P1,000 benefit on top of
their computed basic monthly pension.
FUNERAL BENEFITS
The funeral grant is the amount given to whomever pays
the burial expenses of the deceased member of the
pensioner
SICKNESS BENEFITS
It is a daily cash allowance paid for the number of days a
member is unable to work due to sickness or injury.
Requirements:
A member is qualified to avail of this benefit if:
1. he is unable to work due to sickness or injury and
confined either in a hospital or at a home for at least 4
days;
2. he has paid at least 3 months of contributions within
the 12-month period immediately before the semester
of sickness or injury;
3. He has used up all current company sick leaves with
pay;
4. he has notified the employer, or directly the SSS, if
separated from employment, voluntary member or self-
employed regarding his/her sickness or injury.
SALARY LOAN
It is a loan privilege granted by SSS to eligible members
to meet their short-term needs.
NON-TRANSFERABILTY OF BENEFITS
General Rule: The SSS shall promptly pay the benefits
provided to persons entitled thereto in accordance with
this Act.
BENEFITS UNDER SSS LAW NOT PART OF THE ESTATE OF
THE MEMBER
the benefits due under the SSS Law do not form part of
the estate of the covererd employee. Besides, persons
other than the heirs of the deceased employee may be
the entitled to the said benefits.
GOVERNMENT SERVICE INSURANCE SYSTEM (R.A.
NO. 8291)
COVERAGE
All government personnel, whether elective or
appointive, irrespective of status of appointment,
provided they are receiving fixed monthly compensation
and have not reached the mandatory retirement age of
65 years, are compulsory covered as member of GSIS and
shall be required to pay contributions.
EXCEPTIONS TO THE COMPULSORY COVERAGE
1. Members of the PNP, subject to the condition that
they must settle first their financial obligation with the
GSIS.
2. Members of the AFP, subject to the condition that they
must settle first their financial obligation with the GSIS.
3. Contractual who have no employer-employee
relationship with the agencies they serve.
4. Uniformed personnel of the BJMP
5. Uniformed personnel of BFP
6. Baranggay and Sanggunian officials who are not
receiving fixed monthly compensation.
7. Employees who do not have monthly regular hours of
work and are not receiving fixed monthly compensation.
All members of the GSIS shall have life insurance,
retirement, and all other social security protections such
as disability, survivorship, separation, and
unemployment benefits.
Exception: Members of the Judiciary and Constitutional
Commissions shall have life insurance only.
EFFECTIVITY OF MEMBERSHIP
The effective date of membership shall be the date of the
member’s assumption to duty on his original
appointment or election to public service.
EFFECT OF SEPARATION FROM SERVICE
The member shall continue to be a member and entitled
to whatever benefits he has qualified to in the event of
any contingency compensable under the act. This is
without prejudice to the application of the Limited
Portability Act (R.A. 7699)
DEPENDENTS
1. The legitimate spouse dependent for support upon the
member or pensioner;
2. The legitimate, legitimated or legally adopted and
illegitimate child who is unmarried, not gainfully
employed and has not over the age of majority or is over
the age of majority but incapacitated and incapable of
self-support due to mental or physical defect acquired
prior to age of majority;
3. The parent who is receiving regular support from the
member.
PRIMARY BENEFICIARY
Includes the legal dependent spouse until he/she
remarries and the dependent children.
SECONDARY BENEFICIARY
Includes the dependent parent and, subject to the
restrictions on the dependent children, the legitimate
descendants.
COMPENSATION
Is the basic pay or salary received by an employee,
pursuant to his election/appointment, excluding per
diems, bonuses, overtime pay, honoraria, allowances
and any other emoluments received in addition to the
basic pay which are not integrated into the basic pay
under existing laws.
CONTINGENCY
1. Retirement
2. Death
3. Disability
4. Injury or Sickness
5. Maternity of the member
DISABILITY
Is any loss or impairment of the normal functions of the
physical and/or mental faculty of a member, which
reduces or eliminates his/her capacity to continue with
his/her current gainful occupation.
TOTAL DISABILITY
Is the complete incapacity to continue with present
employment or engage in any gainful occupation due to
the loss or impairment of the normal functions of the
physical and/or mental faculties of the member.
PERMANENT TOTAL DISABILITY
accrues or arises when recovery from the impairment or
disability is medically remote.
TEMPORARY TOTAL DISABILITY
accrues or arises when impaired physical and/or mental
faculties can be rehabilitated and/or restored to their
normal functions.
PERMANENT PARTIAL DISABILITY
accrues or arises upon the irrevocable loss or impairment
of certain portion/s of the physical faculties, despite
which the member is able to pursue a gainful occupation.
BENEFITS
1. Monthly pensions (see R.A. No. 8291 Sec. 9(b))
2. Separation Benefits (see R.A. No. 8291 Sec. 11)
3. Unemployment or Involuntary Separation Benefits
(see R.A. No. 8291 Sec. 12)
4. Retirement Benefits (see R.A. No. 8291 Sec.13; see
GSIS v. CSC G.R. Nos. 98395-102449, June 19, 1995; GSIS
v. De Leon G.R. No. 186560, November 17, 2010)
5. Permanent Disability (Total and Partial – see see R.A.
No. 8291 Secs. 15-17)
6. Temporary Disability (see R.A. No. 8291 Sec. 18)
7. Survivorship Benefits (see R.A. No. 8291 Sec. 20)
8. Funeral Benefits (see R.A. No. 8291 Sec. 23)
9. Life Insurance Benefits (see R.A. No. 8291 Sec. 26)
10. Loan Grant (see R.A. No. 8291 Sec. 36)
LIMITED PORTABILITY LAW (R.A. NO. 7699)
R.A. No. 7699 institutes a scheme for totalization and
portability of social security benefits. A covered worker
who transfers employment from one sector to another
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 for the purpose of old-age, disability,
survivorship, and other benefits in case the covered
member does not qualify for such benefits on either or
both Systems without totalization: Provided, however,
that overlapping periods of membership shall be
credited only once for totalization.
COVERAGE
All worker/members of SSS or GSIS
1. who transfer from one sector to another;
2. who wish to retain their membership in both system.
CONTRIBUTIONS
refer to that paid by the employer or worker either to the
SSS or GSIS on account of the worker’s membership.
TOTALIZATION
Refers to the process of adding up the periods of
creditable services or contributions under each of the
Systems, for purposes of eligibility and computation of
benefits.

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

CREDITABLE SERVICES
For the public sector, the following shall be considered
creditable services:
1. all previous services rendered by an official/employee
pursuant to an appointment whether permanent,
provisional or temporary;
2. all previous services rendered by an official/employee
pursuant to a duly approved appointment to a position
in the Civil Service with compensation of salary;
3. The period during which an official/ employee was on
authorized sick leave of absence without pay not
exceeding one year;
4. the period during which an official or employee was
out of the service as a result of illegal termination of his
service as finally decided by the proper authorities;
5. all previous services with compensation or salary
rendered by elective officials.

BENEFITS
1. Old-age benefit;
2. Disability benefit;
3. Survivorship benefit;
4. Sickness benefit;
5. Medicare benefit;
6. Such other benefits common to both systems that may
be availed of through totalization.

TOTALIZATION SHALL APPLY IN THE FOLLOWING

INSTANCES:
1. If a worker is not qualified for any benefits from both
Systems;
2. If a worker in the public sector is not qualified for any
benefits in the GSIS;
3. If a worker in the private sector is not qualified for any
benefits in the SSS.

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