SCClAL SLCu8l1?

AC1 Cl 1997

8Lu8LlC AC1 nC 8282

An AC1 lu81PL8 S18LnC1PLnlnC 1PL SCClAL SLCu8l1? S?S1LM 1PL8L8?
AMLnulnC lC8 1PlS u8CSL 8Lu8LlC AC1 nC 1161 AS AMLnuLu
C1PL8WlSL knCWn AS 1PL SCClAL SLCu8l1? LAW

SLC1lCn 1 8epubllc AcL no 1161 as amended oLherwlse known as Lhe Soclal
SecurlLy Law ls hereby furLher amended Lo read as follows
SLC1lCn 1 ShorL 1lLle 1hls AcL shall be known as Lhe Soclal SecurlLy AcL of
1997
SLC 2 ueclaraLlon of ollcy lL ls Lhe pollcy of Lhe 8epubllc of Lhe hlllpplnes Lo
esLabllsh develop promoLe and perfecL a sound and vlable LaxexempL soclal
securlLy servlce sulLable Lo Lhe needs of Lhe people LhroughouL Lhe hlllpplnes
whlch shall promoLe soclal [usLlce and provlde meanlngful proLecLlon Lo members
and Lhelr beneflclarles agalnsL Lhe hazards of dlsablllLy slckness maLernlLy old
age deaLh and oLher conLlngencles resulLlng ln loss of lncome or flnanclal burden
1owards Lhls end Lhe SLaLe shall endeavor Lo exLend soclal securlLy proLecLlon Lo
workers and Lhelr beneflclarles
SLC 3 Soclal SecurlLy SysLem (a) 1o carry ouL Lhe purposes of Lhls AcL Lhe Soclal
SecurlLy SysLem herelnafLer referred Lo as 'SSS' a corporaLe body wlLh prlnclpal
place of buslness ln MeLro Manlla hlllpplnes ls hereby creaLed 1he SSS shall be
dlrecLed and conLrolled by a Soclal SecurlLy Commlsslon herelnafLer referred Lo
as 'Commlsslon' composed of Lhe SecreLary of Labor and LmploymenL or hls duly
deslgnaLed undersecreLary Lhe SSS presldenL and seven (7) appolnLlve members
Lhree (3) of whom shall represenL Lhe workers' group aL leasL one of whom shall
be a woman Lhree (3) Lhe employers' group aL leasL one (1) of whom shall be a
woman and one (1) Lhe general publlc whose represenLaLlve shall have adequaLe
knowledge and experlence regardlng soclal securlLy Lo be appolnLed by Lhe
resldenL of Lhe hlllpplnes 1he slx (6) members represenLlng workers and
employers shall be chosen from among Lhe nomlnees of workers' and employers'
organlzaLlons respecLlvely 1he Chalrman of Lhe Commlsslon shall be deslgnaLed
by Lhe resldenL of Lhe hlllpplnes from among lLs members 1he Lerm of Lhe
appolnLlve members shall be Lhree (3) years rovlded 1haL Lhe Lerms of Lhe flrsL
slx (6) appolnLlve members shall be one (1) Lwo (2) and Lhree (3) years for every
Lwo members respecLlvely rovlded furLher 1haL Lhey shall conLlnue Lo hold
offlce unLll Lhelr successors shall have been appolnLed and duly quallfled All
vacancles prlor Lo Lhe explraLlon of Lhe Lerm shall be fllled for Lhe unexplred Lerm
only 1he appolnLlve members of Lhe Commlsslon shall recelve aL leasL Lwo
Lhousand flve hundred pesos (230000) per dlem for each meeLlng acLually
aLLended by Lhem buL noL Lo exceed 1en Lhousand pesos (1000000) a
monLh rovlded 1haL members of Lhe Commlsslon shall also recelve a per dlem
of aL leasL 1wo Lhousand flve hundred pesos (230000) buL noL Lo exceed llfLeen
Lhousand pesos (1300000) a monLh rovlded furLher 1haL sald members of
Lhe Commlsslon shall also recelve reasonable LransporLaLlon and represenLaLlon
allowances as may be flxed by Lhe Commlsslon buL noL Lo exceed 1en Lhousand
pesos (1000000) a monLh
(b) 1he general conducL of Lhe operaLlons and managemenL funcLlons of Lhe SSS
shall be vesLed ln Lhe SSS resldenL who shall serve as Lhe chlef execuLlve offlcer
lmmedlaLely responslble for carrylng ouL Lhe program of Lhe SSS and Lhe pollcles of
Lhe Commlsslon 1he SSS resldenL shall be a person who has had prevlous
experlence ln Lhe Lechnlcal and admlnlsLraLlve flelds relaLed Lo Lhe purposes of Lhls
AcL Pe shall be appolnLed by Lhe resldenL of Lhe hlllpplnes and shall recelve
salary Lo be flxed by Lhe Commlsslon wlLh Lhe approval of Lhe resldenL of Lhe
hlllpplnes payable from Lhe funds of Lhe SSS
(c) 1he Commlsslon upon Lhe recommendaLlon of Lhe SSS resldenL shall appolnL
an acLuary and such oLher personnel as may be deemed necessary flx Lhelr
reasonable compensaLlon allowances and oLher beneflLs prescrlbe Lhelr duLles
and esLabllsh such meLhods and procedures as may be necessary Lo lnsure Lhe
efflclenL honesL and economlcal admlnlsLraLlon of Lhe provlslons and purposes of
Lhls AcLrovlded however 1haL Lhe personnel of Lhe SSS below Lhe rank of vlce
resldenL shall be appolnLed by Lhe SSS resldenL rovlded furLher 1haL Lhe
personnel appolnLed by Lhe SSS resldenL excepL Lhose below Lhe rank of asslsLanL
manager shall be sub[ecL Lo Lhe conflrmaLlon by Lhe Commlsslon rovlded
furLher 1haL Lhe personnel of Lhe SSS shall be selecLed only from clvll servlce
ellglbles and be sub[ecL Lo clvll servlce rules and regulaLlons rovlded flnally 1haL
Lhe SSS shall be exempL from Lhe provlslons of 8epubllc AcL no 6738 and 8epubllc
AcL no 7430
SLC 4 owers and uuLles of Lhe Commlsslon and SSS (a) 1he Commlsslon lor
Lhe aLLalnmenL of lLs maln ob[ecLlves as seL forLh ln SecLlon 2 hereof Lhe
Commlsslon shall have Lhe followlng powers and duLles
(1) 1o adopL amend and resclnd sub[ecL Lo Lhe approval of Lhe resldenL of Lhe
hlllpplnes such rules and regulaLlons as may be necessary Lo carry ouL Lhe
provlslons and purposes of Lhls AcL
(2) 1o esLabllsh a provldenL fund for Lhe members whlch wlll conslsL of volunLary
conLrlbuLlons of employers and/or employees selfemployed and volunLary
members and Lhelr earnlngs for Lhe paymenL of beneflLs Lo such members or Lhelr
beneflclarles sub[ecL Lo such rules and regulaLlons as lL may promulgaLe and
approved by Lhe resldenL of Lhe hlllpplnes
(3) 1o malnLaln a provldenL fund whlch conslsLs of conLrlbuLlons made by boLh Lhe
SSS and lLs offlclals and employees and Lhelr earnlngs for Lhe paymenL of beneflLs
Lo such offlclals and employees or Lhelr helrs under such Lerms and condlLlons as lL
may prescrlbe
(4) 1o approve resLrucLurlng proposals for Lhe paymenL of due buL unremlLLed
conLrlbuLlons and unpald loan amorLlzaLlons under such Lerms and condlLlons as lL
may prescrlbe
(3) 1o auLhorlze cooperaLlves reglsLered wlLh Lhe cooperaLlve developmenL
auLhorlLy or assoclaLlons reglsLered wlLh Lhe approprlaLe governmenL agency Lo acL
as collecLlng agenLs of Lhe SSS wlLh respecL Lo Lhelr members rovlded 1haL Lhe
SSS shall accredlL Lhe cooperaLlve or assoclaLlon rovlded furLher 1haL Lhe
persons auLhorlzed Lo collecL are bonded
(6) 1o compromlse or release ln whole or ln parL any lnLeresL penalLy or any clvll
llablllLy Lo SSS ln connecLlon wlLh Lhe lnvesLmenLs auLhorlzed under SecLlon 26
hereof under such Lerms and condlLlons as lL may prescrlbe and approved by Lhe
resldenL of Lhe hlllpplnes and
(7) 1o approve conflrm pass upon or revlew any and all acLlons of Lhe SSS ln Lhe
proper and necessary exerclse of lLs powers and duLles herelnafLer enumeraLed
(b) 1he Soclal SecurlLy SysLem Sub[ecL Lo Lhe provlslon of SecLlon four (4)
paragraph seven (7) hereof Lhe SSS shall have Lhe followlng powers and duLles
(1) 1o submlL annually noL laLer Lhan Aprll 30 a publlc reporL Lo Lhe resldenL of
Lhe hlllpplnes and Lo Lhe Congress of Lhe hlllpplnes coverlng lLs acLlvlLles ln Lhe
admlnlsLraLlon and enforcemenL of Lhls AcL durlng Lhe precedlng year lncludlng
lnformaLlon and recommendaLlons on broad pollcles for Lhe developmenL and
perfecLlon of Lhe program of Lhe SSS
(2) 1o requlre Lhe acLuary Lo submlL a valuaLlon reporL on Lhe SSS beneflL program
every four (4) years or more frequenLly as may be necessary Lo underLake Lhe
necessary acLuarlal sLudles and calculaLlons concernlng lncreases ln beneflLs Laklng
lnLo accounL lnflaLlon and Lhe flnanclal sLablllLy of Lhe SSS and Lo provlde for
feaslble lncreases ln beneflLs every four (4) years lncludlng Lhe addlLlon of new
ones under such rules and regulaLlons as Lhe Commlsslon may adopL sub[ecL Lo
Lhe approval of Lhe resldenL of Lhe hlllpplnes rovlded 1haL Lhe acLuarlal
soundness of Lhe reserve fund shall be guaranLeed rovlded furLher 1haL such
lncreases ln beneflLs shall noL requlre any lncrease ln Lhe raLe of conLrlbuLlon
(3) 1o esLabllsh offlces of Lhe SSS Lo cover as many provlnces clLles and
congresslonal dlsLrlcLs whenever and wherever lL may be expedlenL necessary and
feaslble and Lo lnspecL or cause Lo be lnspecLed perlodlcally such offlces
(4) 1o enLer lnLo agreemenLs or conLracLs for such servlce and ald as may be
needed for Lhe proper efflclenL and sLable admlnlsLraLlon of Lhe SSS
(3) 1o adopL from Llme Lo Llme a budgeL of expendlLures lncludlng salarles of
personnel agalnsL all funds avallable Lo Lhe SSS under Lhls AcL
(6) 1o seL up lLs accounLlng sysLem and provlde Lhe necessary personnel Lherefor
(7) 1o requlre reporLs compllaLlons and analyses of sLaLlsLlcal and economlc daLa
and Lo make lnvesLlgaLlon as may be needed for Lhe proper admlnlsLraLlon and
developmenL of Lhe SSS
(8) 1o acqulre and dlspose of properLy real or personal whlch may be necessary
or expedlenL for Lhe aLLalnmenL of Lhe purposes of Lhls AcL
(9) 1o acqulre recelve or hold by way of purchase exproprlaLlon or oLherwlse
publlc or prlvaLe properLy for Lhe purpose of underLaklng houslng pro[ecLs
preferably for Lhe beneflL of lowlncome members and for Lhe malnLenance of
hosplLals and lnsLlLuLlons for Lhe slck aged and dlsabled as well as schools for Lhe
members and Lhelr lmmedlaLe famllles
(10) 1o sue and be sued ln courL and
(11) 1o perform such oLher corporaLe acLs as lL may deem approprlaLe for Lhe
proper enforcemenL of Lhls AcL
SLC 3 SeLLlemenL of ulspuLes (a) Any dlspuLe arlslng under Lhls AcL wlLh respecL
Lo coverage beneflLs conLrlbuLlons and penalLles Lhereon or any oLher maLLer
relaLed LhereLo shall be cognlzable by Lhe Commlsslon and any case flled wlLh
respecL LhereLo shall be heard by Lhe Commlsslon or any of lLs members or by
hearlng offlcers duly auLhorlzed by Lhe Commlsslon and declded wlLhln LwenLy (20)
days afLer Lhe submlsslon of Lhe evldence 1he flllng deLermlnaLlon and seLLlemenL
of dlspuLes shall be governed by Lhe rules and regulaLlons promulgaLed by Lhe
Commlsslon
(b) Appeal Lo CourLs Any declslon of Lhe Commlsslon ln Lhe absence of an
appeal Lherefrom as hereln provlded shall become flnal and execuLory flfLeen (13)
days afLer Lhe daLe of noLlflcaLlon and [udlclal revlew Lhereof shall be permlLLed
only afLer any parLy clalmlng Lo be aggrleved Lhereby has exhausLed hls remedles
before Lhe Commlsslon 1he Commlsslon shall be deemed Lo be a parLy Lo any
[udlclal acLlon lnvolvlng any such declslon and may be represenLed by an aLLorney
employed by Lhe Commlsslon or when requesLed by Lhe Commlsslon by Lhe
SollclLor Ceneral or any publlc prosecuLors
(c) CourL 8evlew 1he declslon of Lhe Commlsslon upon any dlspuLed maLLer may
be revlewed boLh upon Lhe law and Lhe facLs by Lhe CourL of Appeals lor Lhe
purpose of such revlew Lhe procedure concernlng appeals from Lhe 8eglonal 1rlal
CourL shall be followed as far as pracLlcable and conslsLenL wlLh Lhe purposes of
Lhls AcL Appeal from a declslon of Lhe Commlsslon musL be Laken wlLhln flfLeen
(13) days from noLlflcaLlon of such declslon lf Lhe declslon of Lhe Commlsslon
lnvolves only quesLlons of law Lhe same shall be revlewed by Lhe Supreme CourL
no appeal bond shall be requlred 1he case shall be heard ln a summary manner
and shall Lake precedence over all cases excepL LhaL ln Lhe Supreme CourL crlmlnal
cases whereln llfe lmprlsonmenL or deaLh has been lmposed by Lhe Lrlal courL shall
Lake precedence no appeal shall acL as a supersedeas or a sLay of Lhe order of Lhe
Commlsslon unless Lhe Commlsslon lLself or Lhe CourL of Appeals or Lhe Supreme
CourL shall so order
(d) LxecuLlon of ueclslons 1he Commlsslon may moLu proprlo or on moLlon of
any lnLeresLed parLy lssue a wrlL of execuLlon Lo enforce any of lLs declslons or
awards afLer lL has become flnal and execuLory ln Lhe same manner as Lhe
declslon of Lhe 8eglonal 1rlal CourL by dlrecLlng Lhe clLy or provlnclal sherlff or Lhe
sherlff whom lL may appolnL Lo enforce such flnal declslon or execuLe such wrlL
and any person who shall fall or refuse Lo comply wlLh such declslon award or wrlL
afLer belng requlred Lo do so shall upon appllcaLlon by Lhe Commlsslon pursuanL
Lo 8ule 71 of Lhe 8ules of CourL be punlshed for conLempL
SLC 6 AudlLor and Counsel (a) 1he Chalrman of Lhe Commlsslon on AudlL shall
be Lhe exofflclo AudlLor of Lhe SSS Pe or hls represenLaLlve shall check and audlL
all Lhe accounLs funds and properLles of Lhe SSS ln Lhe same manner and as
frequenLly as Lhe accounLs funds and properLles of Lhe governmenL are checked
and audlLed under exlsLlng laws and he shall have as far as pracLlcable Lhe same
powers and duLles as he has wlLh respecL Lo Lhe checklng and audlLlng of publlc
accounLs funds and properLles ln general
(b) 1he SecreLary of !usLlce shall be Lhe exofflclo counsel of Lhe SSS Pe or hls
represenLaLlve shall acL as legal advlser and counsel Lhereof
SLC 7 CaLhs WlLnesses and roducLlon of 8ecords When auLhorlzed by Lhe
Commlsslon an offlclal or employee Lhereof shall have Lhe power Lo admlnlsLer
oaLh and afflrmaLlon Lake deposlLlons cerLlfy Lo offlclal acLs and
lssue subpoena and subpoena duces Lecum Lo compel Lhe aLLendance of wlLnesses
and Lhe producLlon of books papers correspondence and oLher records deemed
necessary as evldence ln connecLlon wlLh any quesLlon arlslng under Lhls AcL Any
case of conLumacy shall be dealL wlLh by Lhe Commlsslon ln accordance wlLh law
SLC 8 1erms ueflned lor purposes of Lhls AcL Lhe followlng Lerms shall unless
Lhe conLexL lndlcaLes oLherwlse have Lhe followlng meanlngs
(a) SSS 1he Soclal SecurlLy SysLem creaLed by Lhls AcL
(b) Commlsslon 1he Soclal SecurlLy Commlsslon as hereln creaLed
(c) Lmployer Any person naLural or [urldlcal domesLlc or forelgn who carrles on
ln Lhe hlllpplnes any Lrade buslness lndusLry underLaklng or acLlvlLy of any klnd
and uses Lhe servlces of anoLher person who ls under hls orders as regards Lhe
employmenL excepL Lhe CovernmenL and any of lLs pollLlcal subdlvlslons branches
or lnsLrumenLallLles lncludlng corporaLlons owned or conLrolled by Lhe
CovernmenL rovlded 1haL a selfemployed person shall be boLh employee and
employer aL Lhe same Llme
(d) Lmployee Any person who performs servlces for an employer ln whlch elLher
or boLh menLal or physlcal efforLs are used and who recelves compensaLlon for
such servlces where Lhere ls an employeremployee relaLlonshlp rovlded 1haL a
selfemployed person shall be boLh employee and employer aL Lhe same Llme
(e) uependenLs 1he dependenLs shall be Lhe followlng
(1) 1he legal spouse enLlLled by law Lo recelve supporL from Lhe member
(2) 1he leglLlmaLe leglLlmaLed or legally adopLed and llleglLlmaLe chlld who ls
unmarrled noL galnfully employed and has noL reached LwenLyone (21) years of
age or lf over LwenLyone (21) years of age he ls congenlLally or whlle sLlll a mlnor
has been permanenLly lncapaclLaLed and lncapable of selfsupporL physlcally or
menLally and
(3) 1he parenL who ls recelvlng regular supporL from Lhe member
(f) CompensaLlon All acLual remuneraLlon for employmenL lncludlng Lhe
mandaLed cosLofllvlng allowance as well as Lhe cash value of any remuneraLlon
pald ln any medlum oLher Lhan cash excepL LhaL parL of Lhe remuneraLlon ln excess
of Lhe maxlmum salary credlL as provlded under SecLlon LlghLeen of Lhls AcL
(g) MonLhly salary credlL 1he compensaLlon base for conLrlbuLlons and beneflLs
as lndlcaLed ln Lhe schedule ln SecLlon LlghLeen of Lhls AcL
(h) MonLhly 1he perlod from one end of Lhe lasL payroll perlod of Lhe precedlng
monLh Lo Lhe end of Lhe lasL payroll perlod of Lhe currenL monLh lf compensaLlon ls
on hourly dally or weekly basls lf on any oLher basls 'monLhly' shall mean a perlod
of one (1) monLh
(l) ConLrlbuLlon 1he amounL pald Lo Lhe SSS by and on behalf of Lhe members ln
accordance wlLh SecLlon LlghLeen of Lhls AcL
([) LmploymenL Any servlce performed by an employee for hls employer excepL
(1) LmploymenL purely casual and noL for Lhe purpose of occupaLlon or buslness
of Lhe employer
(2) Servlce performed on or ln connecLlon wlLh an allen vessel by an employee lf
he ls employed when such vessel ls ouLslde Lhe hlllpplnes
(3) Servlce performed ln Lhe employ of Lhe hlllpplne CovernmenL or
lnsLrumenLallLy or agency Lhereof
(4) Servlce performed ln Lhe employ of a forelgn governmenL or lnLernaLlonal
organlzaLlon or Lhelr whollyowned lnsLrumenLallLyrovlded however 1haL Lhls
exempLlon noLwlLhsLandlng any forelgn governmenL lnLernaLlonal organlzaLlon or
Lhelr whollyowned lnsLrumenLallLy employlng workers ln Lhe hlllpplnes or
employlng llllplnos ouLslde of Lhe hlllpplnes may enLer lnLo an agreemenL wlLh
Lhe hlllpplne CovernmenL for Lhe lncluslon of such employees ln Lhe SSS excepL
Lhose already covered by Lhelr respecLlve clvll servlce reLlremenL
sysLems rovlded furLher 1haL Lhe Lerms of such agreemenL shall conform wlLh
Lhe provlslons of Lhls AcL on coverage and amounL of paymenL of conLrlbuLlons and
beneflLs rovlded flnally 1haL Lhe provlslons of Lhls AcL shall be supplemenLary Lo
any such agreemenL and
(3) Such oLher servlces performed by Lemporary and oLher employees whlch may
be excluded by regulaLlon of Lhe Commlsslon Lmployees of bona flde lndependenL
conLracLors shall noL be deemed employees of Lhe employer engaglng Lhe servlce
of sald conLracLors
(k) 8eneflclarles 1he dependenL spouse unLll he or she remarrles Lhe dependenL
leglLlmaLe leglLlmaLed or legally adopLed and llleglLlmaLe chlldren who shall be
Lhe prlmary beneflclarles of Lhe member rovlded 1haL Lhe dependenL llleglLlmaLe
chlldren shall be enLlLled Lo flfLy percenL (30) of Lhe share of Lhe leglLlmaLe
leglLlmaLed or legally adopLed chlldren rovlded furLher 1haL ln Lhe absence of
Lhe dependenL leglLlmaLe leglLlmaLed chlldren of Lhe member hls/her dependenL
llleglLlmaLe chlldren shall be enLlLled Lo one hundred percenL (100) of Lhe
beneflLs ln Lhelr absence Lhe dependenL parenLs who shall be Lhe secondary
beneflclarles of Lhe member ln Lhe absence of all Lhe foregolng any oLher person
deslgnaLed by Lhe member as hls/her secondary beneflclary
(l) ConLlngency 1he reLlremenL deaLh dlsablllLy ln[ury or slckness and maLernlLy
of Lhe member
(m) Average monLhly salary credlL 1he resulL obLalned by dlvldlng Lhe sum of Lhe
lasL slxLy (60) monLhly salary credlLs lmmedlaLely precedlng Lhe semesLer of
conLlngency by slxLy (60) or Lhe resulL obLalned by dlvldlng Lhe sum of all Lhe
monLhly salary credlLs pald prlor Lo Lhe semesLer of conLlngency by Lhe number of
monLhly conLrlbuLlons pald ln Lhe same perlod whlchever ls
greaLer rovlded 1haL Lhe ln[ury or slckness whlch caused Lhe dlsablllLy shall be
deemed as Lhe permanenL dlsablllLy for Lhe purpose of compuLlng Lhe average
monLhly salary credlL
(n) Average dally salary credlL 1he resulL obLalned by dlvldlng Lhe sum of Lhe slx
(6) hlghesL monLhly salary credlLs ln Lhe LwelvemonLh perlod lmmedlaLely
precedlng Lhe semesLer of conLlngency by one hundred elghLy (180)
(o) SemesLer A perlod of Lwo (2) consecuLlve quarLers endlng ln Lhe quarLer of
conLlngency
(p) CuarLer A perlod of Lhree (3) consecuLlve calendar monLhs endlng on Lhe lasL
day of March !une SepLember and uecember
(q) CredlLed years of servlce lor a member covered prlor Lo !anuary nlneLeen
hundred and elghLy flve (1983) mlnus Lhe calendar year of coverage plus Lhe
number of calendar years ln whlch slx (6) or more conLrlbuLlons have been pald
from !anuary nlneLeen hundred and elghLy flve (1983) up Lo Lhe calendar year
conLalnlng Lhe semesLer prlor Lo Lhe conLlngency lor a member covered ln or afLer
!anuary nlneLeen hundred and elghLy flve (1983) Lhe number of calendar years ln
whlch slx (6) or more conLrlbuLlons have been pald from Lhe year of coverage up Lo
Lhe calendar year conLalnlng Lhe semesLer prlor Lo Lhe conLlngency rovlded 1haL
Lhe Commlsslon may provlde for a dlfferenL number of conLrlbuLlons ln a calendar
year for lL Lo be consldered as a credlLed year of servlce
(r) Member 1he worker who ls covered under SecLlon nlne and SecLlon nlneA of
Lhls AcL
(s) Selfemployed Any person whose lncome ls noL derlved from employmenL as
deflned under Lhls AcL as well as Lhose workers enumeraLed ln SecLlon nlneA
hereof
(L) neL earnlngs neL lncome before lncome Laxes plus noncash charges such as
depreclaLlon and depleLlon appearlng ln Lhe regular flnanclal sLaLemenL of Lhe
lssulng or assumlng lnsLlLuLlon
(u) llxed charges 8ecurrlng expense such as amorLlzaLlon of debL dlscounL or
renLals for leased properLles lncludlng lnLeresL on funded and unfunded debL
SLC 9 Coverage (a) Coverage ln Lhe SSS shall be compulsory upon all employees
noL over slxLy (60) years of age and Lhelr employersrovlded 1haL ln Lhe case of
domesLlc helpers Lhelr monLhly lncome shall noL be less Lhan Cne Lhousand pesos
(100000) a monLhrovlded furLher 1haL any beneflL already earned by Lhe
employees under prlvaLe beneflL plans exlsLlng aL Lhe Llme of Lhe approval of Lhls
AcL shall noL be dlsconLlnued reduced or oLherwlse lmpalred rovlded
furLher 1haL prlvaLe plans whlch are exlsLlng and ln force aL Lhe Llme of compulsory
coverage shall be lnLegraLed wlLh Lhe plan of Lhe SSS ln such a way where Lhe
employer's conLrlbuLlon Lo hls prlvaLe plan ls more Lhan LhaL requlred of hlm ln Lhls
AcL he shall pay Lo Lhe SSS only Lhe conLrlbuLlon requlred of hlm and he shall
conLlnue hls conLrlbuLlon Lo such prlvaLe plan less hls conLrlbuLlon Lo Lhe SSS so
LhaL Lhe employer's LoLal conLrlbuLlon Lo hls beneflL plan and Lo Lhe SSS shall be Lhe
same as hls conLrlbuLlon Lo hls prlvaLe beneflL plan before Lhe compulsory
coverage rovlded furLher 1haL any changes ad[usLmenLs modlflcaLlons
ellmlnaLlons or lmprovemenLs ln Lhe beneflLs Lo be avallable under Lhe remalnlng
prlvaLe plan whlch may be necessary Lo adopL by reason of Lhe reduced
conLrlbuLlons LhereLo as a resulL of Lhe lnLegraLlon shall be sub[ecL Lo agreemenLs
beLween Lhe employers and employees concerned rovlded furLher 1haL Lhe
prlvaLe beneflL plan whlch Lhe employer shall conLlnue for hls employees shall
remaln under Lhe employer's managemenL and conLrol unless Lhere ls an exlsLlng
agreemenL Lo Lhe conLrary rovlded flnally 1haL noLhlng ln Lhls AcL shall be
consLrued as a llmlLaLlon on Lhe rlghL of employers and employees Lo agree on and
adopL beneflLs whlch are over and above Lhose provlded under Lhls AcL
(b) Spouses who devoLe full Llme Lo managlng Lhe household and famlly affalrs
unless Lhey are also engaged ln oLher vocaLlon or employmenL whlch ls sub[ecL Lo
mandaLory coverage may be covered by Lhe SSS on a volunLary basls
(c) llllplnos recrulLed by forelgnbased employers for employmenL abroad may be
covered by Lhe SSS on a volunLary basls
SLC 9A Compulsory Coverage of Lhe SelfLmployed Coverage ln Lhe SSS shall
also be compulsory upon such selfemployed persons as may be deLermlned by Lhe
Commlsslon under such rules and regulaLlons as lL may prescrlbe lncludlng buL noL
llmlLed Lo Lhe followlng
1 All selfemployed professlonals
2 arLners and slngle proprleLors of buslnesses
3 AcLors and acLresses dlrecLors scrlpLwrlLers and news correspondenLs who do
noL fall wlLhln Lhe deflnlLlon of Lhe Lerm employee ln SecLlon 8 (d) of Lhls AcL
4 rofesslonal aLhleLes coaches Lralners and [ockeys and
3 lndlvldual farmers and flshermen
unless oLherwlse speclfled hereln all provlslons of Lhls AcL appllcable Lo covered
employees shall also be appllcable Lo Lhe covered selfemployed persons
SLC 10 LffecLlve uaLe of Coverage Compulsory coverage of Lhe employer shall
Lake effecL on Lhe flrsL day of hls operaLlon and LhaL of Lhe employee on Lhe day of
hls employmenL rovlded 1haL Lhe compulsory coverage of Lhe selfemployed
person shall Lake effecL upon hls reglsLraLlon wlLh Lhe SSS
SLC 11 LffecL of SeparaLlon from LmploymenL When an employee under
compulsory coverage ls separaLed from employmenL hls employer's conLrlbuLlon
on hls accounL and hls obllgaLlon Lo pay conLrlbuLlons arlslng from LhaL
employmenL shall cease aL Lhe end of Lhe monLh of separaLlon buL sald employee
shall be credlLed wlLh all conLrlbuLlons pald on hls behalf and enLlLled Lo beneflLs
accordlng Lo Lhe provlslons of Lhls AcL Pe may however conLlnue Lo pay Lhe LoLal
conLrlbuLlons Lo malnLaln hls rlghL Lo full beneflL
SLC 11A LffecL of lnLerrupLlon of 8uslness or rofesslonal lncome lf Lhe self
employed reallzes no lncome ln any glven monLh he shall noL be requlred Lo pay
conLrlbuLlons for LhaL monLh Pe may however be allowed Lo conLlnue paylng
conLrlbuLlons under Lhe same rules and regulaLlons appllcable Lo a separaLed
employee member rovlded 1haL no reLroacLlve paymenL of conLrlbuLlons shall
be allowed oLher Lhan as prescrlbed under SecLlon 1wenLyLwoA hereof
SLC 12 MonLhly enslon (a) 1he monLhly penslon shall be Lhe hlghesL of Lhe
followlng amounLs
(1) 1he sum of Lhe followlng
(l) 1hree hundred pesos (30000 plus
(ll) 1wenLy percenL (20) of Lhe average monLhly salary credlL plus
(lll) 1wo percenL (2) of Lhe average monLhly salary credlL for each credlLed year
of servlce ln excess of Len (10) years or
(2) lorLh percenL (40) of Lhe average monLhly salary credlL or
(3) Cne Lhousand pesos (100000) rovlded 1haL Lhe monLhly penslon shall ln
no case be pald for an aggregaLe amounL of less Lhan slxLy (60) monLhs
(b) noLwlLhsLandlng Lhe precedlng paragraph Lhe mlnlmum penslon shall be Cne
Lhousand Lwo hundred pesos (120000) for members wlLh aL leasL Len (10)
credlLed years of servlce and 1wo Lhousand four hundred pesos (240000) for
Lhose wlLh LwenLy (20) credlLed years of servlce
SLC 12A uependenLs' enslon Where monLhly penslon ls payable on accounL
of deaLh permanenL LoLal dlsablllLy or reLlremenL dependenLs' penslon equlvalenL
Lo Len percenL (10) of Lhe monLhly penslon or 1wo hundred flfLy pesos (23000)
whlchever ls hlgher shall also be pald for each dependenL chlld concelved on or
before Lhe daLe of Lhe conLlngency buL noL exceedlng flve (3) beglnnlng wlLh Lhe
youngesL and wlLhouL subsLlLuLlon rovlded 1haL where Lhere are leglLlmaLe or
llleglLlmaLe chlldren Lhe former shall be preferred
SLC 128 8eLlremenL 8eneflLs (a) A member who has pald aL leasL one hundred
LwenLy (120) monLhly conLrlbuLlons prlor Lo Lhe semesLer of reLlremenL and who
(1) has reached Lhe age of slxLy (60) years and ls already separaLed from
employmenL or has ceased Lo be selfemployed or (2) has reached Lhe age of slxLy
flve (63) years shall be enLlLled for as long as he llves Lo Lhe monLhly
penslon rovlded 1haL he shall have Lhe opLlon Lo recelve hls flrsL elghLeen (18)
monLhly penslons ln lump sum dlscounLed aL a preferenLlal raLe of lnLeresL Lo be
deLermlned by Lhe SSS
(b) A covered member who ls slxLy (60) years old aL reLlremenL and who does noL
quallfy for penslon beneflLs under paragraph (a) above shall be enLlLled Lo a lump
sum beneflL equal Lo Lhe LoLal conLrlbuLlons pald by hlm and on hls
behalf rovlded 1haL he ls separaLed from employmenL and ls noL conLlnulng
paymenL of conLrlbuLlons Lo Lhe SSS on hls own
(c) 1he monLhly penslon shall be suspended upon Lhe reemploymenL or
resumpLlon of selfemploymenL of a reLlred member who ls less Lhan slxLyflve (63)
years old Pe shall agaln be sub[ecL Lo SecLlon LlghLeen and hls employer Lo SecLlon
nlneLeen of Lhls AcL
(d) upon Lhe deaLh of Lhe reLlred member hls prlmary beneflclarles as of Lhe daLe
of hls reLlremenL shall be enLlLled Lo recelve Lhe monLhly penslon rovlded 1haL lf
he has no prlmary beneflclarles and he dles wlLhln slxLy (60) monLhs from Lhe sLarL
of hls monLhly penslon hls secondary beneflclarles shall be enLlLled Lo a lump sum
beneflL equlvalenL Lo Lhe LoLal monLhly penslons correspondlng Lo Lhe balance of
Lhe flveyear guaranLeed perlod excludlng Lhe dependenLs' penslon
(e) 1he monLhly penslon of a member who reLlres afLer reachlng age slxLy (60)
shall be Lhe hlgher of elLher (1) Lhe monLhly penslon compuLed aL Lhe earllesL Llme
he could have reLlred had he been separaLed from employmenL or ceased Lo be
selfemployed plus all ad[usLmenLs LhereLo or (2) Lhe monLhly penslon compuLed
aL Lhe Llme when he acLually reLlres
SLC 13 ueaLh 8eneflLs upon Lhe deaLh of a member who has pald aL leasL
LhlrLyslx (36) monLhly conLrlbuLlons prlor Lo Lhe semesLer of deaLh hls prlmary
beneflclarles shall be enLlLled Lo Lhe monLhly penslon rovlded 1haL lf he has no
prlmary beneflclarles hls secondary beneflclarles shall be enLlLled Lo a lump sum
beneflL equlvalenL Lo LhlrLyslx (36) Llmes Lhe monLhly penslon lf he has noL pald
Lhe requlred LhlrLyslx (36) monLhly conLrlbuLlons hls prlmary or secondary
beneflclarles shall be enLlLled Lo a lump sum beneflL equlvalenL Lo Lhe monLhly
penslon Llmes Lhe number of monLhly conLrlbuLlons pald Lo Lhe SSS or Lwelve (12)
Llmes Lhe monLhly penslon whlchever ls hlgher
SLC 13A ermanenL ulsablllLy 8eneflLs (a) upon Lhe permanenL LoLal dlsablllLy
of a member who has pald aL leasL LhlrLyslx (36) monLhly conLrlbuLlons prlor Lo Lhe
semesLer of dlsablllLy he shall be enLlLled Lo Lhe monLhly penslon rovlded 1haL lf
he has noL pald Lhe requlred LhlrLyslx (36) monLhly conLrlbuLlons he shall be
enLlLled Lo a lump sum beneflL equlvalenL Lo Lhe monLhly penslon Llmes Lhe
number of monLhly conLrlbuLlons pald Lo Lhe SSS or Lwelve (12) Llmes Lhe monLhly
penslon whlchever ls hlgher A member who (1) has recelved a lump sum beneflL
and (2) ls reemployed or has resumed selfemploymenL noL earller Lhan one (1)
year from Lhe daLe of hls dlsablllLy shall agaln be sub[ecL Lo compulsory coverage
and shall be consldered a new member
(b) 1he monLhly penslon and dependenLs' penslon shall be suspended upon Lhe
reemploymenL or resumpLlon of selfemploymenL or Lhe recovery of Lhe dlsabled
member from hls permanenL LoLal dlsablllLy or hls fallure Lo presenL hlmself for
examlnaLlon aL leasL once a year upon noLlce by Lhe SSS
(c) upon Lhe deaLh of Lhe permanenL LoLal dlsablllLy pensloner hls prlmary
beneflclarles as of Lhe daLe of dlsablllLy shall be enLlLled Lo recelve Lhe monLhly
penslon rovlded 1haL lf he has no prlmary beneflclarles and he dles wlLhln slxLy
(60) monLhs from Lhe sLarL of hls monLhly penslon hls secondary beneflclarles shall
be enLlLled Lo a lump sum beneflL equlvalenL Lo Lhe LoLal monLhly penslons
correspondlng Lo Lhe balance of Lhe flveyear guaranLeed perlod excludlng Lhe
dependenLs' penslon
(d) 1he followlng dlsablllLles shall be deemed permanenL LoLal
1 CompleLe loss of slghL of boLh eyes
2 Loss of Lwo llmbs aL or above Lhe ankle or wrlsLs
3 ermanenL compleLe paralysls of Lwo llmbs
4 8raln ln[ury resulLlng Lo lncurable lmbeclllLy or lnsanlLy and
3 Such cases as deLermlned and approved by Lhe SSS
(e) lf Lhe dlsablllLy ls permanenL parLlal and such dlsablllLy occurs before LhlrLyslx
(36) monLhly conLrlbuLlons have been pald prlor Lo Lhe semesLer of dlsablllLy Lhe
beneflL shall be such percenLage of Lhe lump sum beneflL descrlbed ln Lhe
precedlng paragraph wlLh due regard Lo Lhe degree of dlsablllLy as Lhe Commlsslon
may deLermlne
(f) lf Lhe dlsablllLy ls permanenL LoLal and such dlsablllLy occurs afLer LhlrLyslx (36)
monLhly conLrlbuLlons have been pald prlor Lo Lhe semesLer of dlsablllLy Lhe
beneflL shall be Lhe monLhly penslon for permanenL LoLal dlsablllLy payable noL
longer Lhan Lhe perlod deslgnaLed ln Lhe followlng schedule
CCMLL1L
Anu L8MAnLn1 nuM8L8 Cl
LCSS Cl uSL Cl MCn1PS
Cne Lhumb 10
Cne lndex flnger 8
Cne mlddle flnger 6
Cne rlng flnger 3
Cne llLLle flnger 3
Cne blg Loe 6
Cne hand 39
Cne arm 30
Cne fooL 31
Cne leg 46
Cne ear 10
8oLh ears 20
Pearlng of one ear 10
Pearlng of boLh ears 30
SlghL of one eye 23
(g) 1he percenLage degree of dlsablllLy whlch ls equlvalenL Lo Lhe raLlo LhaL Lhe
deslgnaLed number of monLhs of compensablllLy bears Lo sevenLyflve (73)
rounded Lo Lhe nexL hlgher lnLeger shall noL be addlLlve for dlsLlncL separaLe and
unrelaLed permanenL parLlal dlsablllLles buL shall be addlLlve for deLerloraLlng and
relaLed permanenL parLlal dlsablllLles Lo a maxlmum of one hundred percenL
(100) ln whlch case Lhe member shall be deemed as permanenLly LoLally
dlsabled
(h) ln case of permanenL parLlal dlsablllLy Lhe monLhly penslon beneflL shall be
glven ln lump sum lf lL ls payable for less Lhan Lwelve (12) monLhs
(l) lor Lhe purpose of ad[udlcaLlng reLlremenL deaLh and permanenL LoLal
dlsablllLy penslon beneflLs conLrlbuLlons shall be deemed pald for Lhe monLhs
durlng whlch Lhe member recelved parLlal dlsablllLy penslon rovlded 1haL such
conLrlbuLlons shall be based on hls lasL conLrlbuLlon prlor Lo hls dlsablllLy
([) Should a member who ls on parLlal dlsablllLy penslon reLlre or dle hls dlsablllLy
penslon shall cease upon hls reLlremenL or deaLh
SLC 138 luneral 8eneflL A funeral granL equlvalenL Lo 1welve Lhousand pesos
(1200000) shall be pald ln cash or ln klnd Lo help defray Lhe cosL of funeral
expenses upon Lhe deaLh of a member lncludlng permanenLly LoLally dlsabled
member or reLlree
SLC 14 Slckness 8eneflL (a) A member who has pald aL leasL Lhree (3) monLhly
conLrlbuLlons ln Lhe LwelvemonLh perlod lmmedlaLely precedlng Lhe semesLer of
slckness or ln[ury and ls conflned Lherefor for more Lhan Lhree (3) days ln a hosplLal
or elsewhere wlLh Lhe approval of Lhe SSS shall for each day of compensable
conflnemenL or a fracLlon Lhereof be pald by hls employer or Lhe SSS lf such
person ls unemployed or selfemployed a dally slckness beneflL equlvalenL Lo
nlneLy percenL (90) of hls average dally salary credlL sub[ecL Lo Lhe followlng
condlLlons
(1) ln no case shall Lhe dally slckness beneflL be pald longer Lhan one hundred
LwenLy (120) days ln one (1) calendar year nor shall any unused porLlon of Lhe one
hundred LwenLy (120) days of slckness beneflL granLed under Lhls secLlon be carrled
forward and added Lo Lhe LoLal number of compensable days allowable ln Lhe
subsequenL year
(2) 1he dally slckness beneflL shall noL be pald for more Lhan Lwo hundred forLy
(240) days on accounL of Lhe same conflnemenL and
(3) 1he employee member shall noLlfy hls employer of Lhe facL of hls slckness or
ln[ury wlLhln flve (3) calendar days afLer Lhe sLarL of hls conflnemenL unless such
conflnemenL ls ln a hosplLal or Lhe employee became slck or was ln[ured whlle
worklng or wlLhln Lhe premlses of Lhe employer ln whlch case noLlflcaLlon Lo Lhe
employer ls necessary rovlded 1haL lf Lhe member ls unemployed or self
employed he shall dlrecLly noLlfy Lhe SSS of hls conflnemenL wlLhln flve (3)
calendar days afLer Lhe sLarL Lhereof unless such conflnemenL ls ln a hosplLal ln
whlch case noLlflcaLlon ls also noL necessary rovlded furLher 1haL ln cases where
noLlflcaLlon ls necessary Lhe conflnemenL shall be deemed Lo have sLarLed noL
earller Lhan Lhe flfLh day lmmedlaLely precedlng Lhe daLe of noLlflcaLlon
(b) 1he compensable conflnemenL shall begln on Lhe flrsL day of slckness and Lhe
paymenL of such allowances shall be prompLly made by Lhe employer every regular
payday or on Lhe flfLeenLh and lasL day of each monLh and slmllarly ln Lhe case of
dlrecL paymenL by Lhe SSS for as long as such allowances are due and
payable rovlded 1haL such allowance shall begln only afLer all slck leaves of
absence wlLh full pay Lo Lhe credlL of Lhe employee member shall have been
exhausLed
(c) Cne hundred percenL (100) of Lhe dally beneflLs provlded ln Lhe precedlng
paragraph shall be relmbursed by Lhe SSS Lo sald employer upon recelpL of
saLlsfacLory proof of such paymenL and legallLy Lhereof rovlded 1haL Lhe
employer has noLlfled Lhe SSS of Lhe conflnemenL wlLhln flve (3) calendar days afLer
recelpL of Lhe noLlflcaLlon from Lhe employee member rovlded furLher 1haL lf
Lhe noLlflcaLlon Lo Lhe SSS ls made by Lhe employer beyond flve (3) calendar days
afLer recelpL of Lhe noLlflcaLlon from Lhe employee member sald employer shall be
relmbursed only for each day of conflnemenL sLarLlng from Lhe LenLh calendar day
lmmedlaLely precedlng Lhe daLe of noLlflcaLlon Lo Lhe SSS rovlded flnally 1haL
Lhe SSS shall relmburse Lhe employer or pay Lhe unemployed member only for
conflnemenL wlLhln Lhe oneyear perlod lmmedlaLely precedlng Lhe daLe Lhe clalm
for beneflL or relmbursemenL ls recelved by Lhe SSS excepL conflnemenL ln a
hosplLal ln whlch case Lhe clalm for beneflL or relmbursemenL musL be flled wlLhln
one (1) year from Lhe lasL day of conflnemenL
(d) Where Lhe employee member has glven Lhe requlred noLlflcaLlon buL Lhe
employer falls Lo noLlfy Lhe SSS of Lhe conflnemenL or Lo flle Lhe clalm for
relmbursemenL wlLhln Lhe perlod prescrlbed ln Lhls secLlon resulLlng ln Lhe
reducLlon of Lhe beneflL or denlal of Lhe clalm such employer shall have no rlghL Lo
recover Lhe correspondlng dally allowance he advanced Lo Lhe employee member
as requlred ln Lhls secLlon
(e)1he clalm of relmbursemenL shall be ad[udlcaLed by Lhe SSS wlLhln a perlod of
Lwo (2) monLhs from recelpL Lhereof rovlded 1haL should no paymenL be
recelved by Lhe employer wlLhln one (1) monLh afLer Lhe perlod prescrlbed hereln
for ad[udlcaLlon Lhe relmbursemenL shall LhereafLer earn slmple lnLeresL of one
percenL (1) per monLh unLll pald
(f) 1he provlslons regardlng Lhe noLlflcaLlon requlred of Lhe member and Lhe
employer as well as Lhe perlod wlLhln whlch Lhe clalm for beneflL or
relmbursemenL may be flled shall apply Lo all clalms flled wlLh Lhe SSS
SLC 14A MaLernlLy Leave 8eneflL A female member who has pald aL leasL
Lhree (3) monLhly conLrlbuLlons ln Lhe LwelvemonLh perlod lmmedlaLely precedlng
Lhe semesLer of her chlldblrLh or mlscarrlage shall be pald a dally maLernlLy beneflL
equlvalenL Lo one hundred percenL (100) of her average dally salary credlL for
slxLy (60) days or sevenLyelghL (78) days ln case of caesarlan dellvery sub[ecL Lo
Lhe followlng condlLlons
(a) 1haL Lhe employee shall have noLlfled her employer of her pregnancy and Lhe
probable daLe of her chlldblrLh whlch noLlce shall be LransmlLLed Lo Lhe SSS ln
accordance wlLh Lhe rules and regulaLlons lL may provlde
(b) 1he full paymenL shall be advanced by Lhe employer wlLhln LhlrLy (30) days
from Lhe flllng of Lhe maLernlLy leave appllcaLlon
(c) 1haL paymenL of dally maLernlLy beneflLs shall be a bar Lo Lhe recovery of
slckness beneflLs provlded by Lhls AcL for Lhe same perlod for whlch dally maLernlLy
beneflLs have been recelved
(d) 1haL Lhe maLernlLy beneflLs provlded under Lhls secLlon shall be pald only for
Lhe flrsL four (4) dellverles or mlscarrlages
(e) 1haL Lhe SSS shall lmmedlaLely relmburse Lhe employer of one hundred
percenL (100) of Lhe amounL of maLernlLy beneflLs advanced Lo Lhe employee by
Lhe employer upon recelpL of saLlsfacLory proof of such paymenL and legallLy
Lhereof and
(f) 1haL lf an employee member should glve blrLh or suffer mlscarrlage wlLhouL Lhe
requlred conLrlbuLlons havlng been remlLLed for her by her employer Lo Lhe SSS or
wlLhouL Lhe laLLer havlng been prevlously noLlfled by Lhe employer of Lhe Llme of
Lhe pregnancy Lhe employer shall pay Lo Lhe SSS damages equlvalenL Lo Lhe
beneflLs whlch sald employee member would oLherwlse have been enLlLled Lo
SLC 13 non1ransferablllLy of 8eneflLs 1he SSS shall prompLly pay Lhe beneflLs
provlded ln Lhls AcL Lo such persons as may be enLlLled LhereLo ln accordance wlLh
Lhe provlslons of Lhls AcL rovlded 1haL Lhe SSS shall pay Lhe reLlremenL beneflLs
on Lhe day of conLlngency Lo quallfled members who have submlLLed Lhe necessary
documenLs aL leasL slx (6) monLhs before rovlded furLher 1haL Lhe beneflclary
who ls a naLlonal of a forelgn counLry whlch does noL exLend beneflLs Lo a llllplno
beneflclary resldlng ln Lhe hlllpplnes or whlch ls noL recognlzed by Lhe hlllpplnes
shall noL be enLlLled Lo recelve any beneflL under Lhls AcL rovlded furLher 1haL
noLwlLhsLandlng Lhe foregolng where Lhe besL lnLeresL of Lhe SSS wlll be served
Lhe Commlsslon may dlrecL paymenLs wlLhouL regard Lo naLlonallLy or counLry of
resldence rovlded furLher 1haL lf Lhe reclplenL ls a mlnor or a person lncapable
of admlnlsLerlng hls own affalrs Lhe Commlsslon shall appolnL a represenLaLlve
under such Lerms and condlLlons as lL may deem proper rovlded furLher 1haL
such appolnLmenL shall noL be necessary ln case Lhe reclplenL ls under Lhe cusLody
of or llvlng wlLh Lhe parenLs or spouse of Lhe member ln whlch case Lhe beneflLs
shall be pald Lo such parenLs or spouse as represenLaLlve payee of Lhe reclplenL
Such beneflLs are noL Lransferable and no power of aLLorney or oLher documenL
execuLed by Lhose enLlLled LhereLo ln favor of any agenL aLLorney or any oLher
person for Lhe collecLlon Lhereof on Lhelr behalf shall be recognlzed excepL when
Lhey are physlcally unable Lo collecL personally such beneflLs rovlded
furLher 1haL ln case of deaLh beneflLs lf no beneflclary quallfles under Lhls AcL
sald beneflLs shall be pald Lo Lhe legal helrs ln accordance wlLh Lhe law of
successlon
SLC 16 LxempLlon from 1ax Legal rocess and Llen All laws Lo Lhe conLrary
noLwlLhsLandlng Lhe SSS and all lLs asseLs and properLles all conLrlbuLlons
collecLed and all accruals LhereLo and lncome or lnvesLmenL earnlngs Lherefrom as
well as all supplles equlpmenL papers or documenLs shall be exempL from any Lax
assessmenL fee charge or cusLoms or lmporL duLy and all beneflL paymenLs made
by Lhe SSS shall llkewlse be exempL from all klnds of Laxes fees or charges and
shall noL llable Lo aLLachmenLs garnlshmenLs levy or selzure by or under any legal
or equlLable process whaLsoever elLher before or afLer recelpL by Lhe person or
persons enLlLled LhereLo excepL Lo pay any debL of Lhe member Lo Lhe SSS no Lax
measure of whaLever naLure enacLed shall apply Lo Lhe SSS unless lL expressly
revokes Lhe declared pollcy of Lhe SLaLe ln SecLlon 2 hereof granLlng LaxexempLlon
Lo Lhe SSS Any Lax assessmenL lmposed agalnsL Lhe SSS shall be null and vold (As
amended by Sec 9 u no 24 S 1972 and Sec 14 u no 733 S 1973)
SLC 17 lee of AgenLs ALLorneys LLc no agenL aLLorney or oLher person ln
charge of Lhe preparaLlon flllng or pursulng any clalm for beneflL under Lhls AcL
shall demand or charge for hls servlces any fee and any sLlpulaLlon Lo Lhe conLrary
shall be null and vold 1he reLenLlon or deducLlon of any amounL from any beneflL
granLed under Lhls AcL for Lhe paymenL of fees for such servlces ls
prohlblLedrovlded however 1haL any member of Lhe hlllpplne 8ar who appears
as counsel ln any case heard by Lhe Commlsslon shall be enLlLled Lo aLLorneys' fees
noL exceedlng Len percenL (10) of Lhe beneflLs awarded by Lhe Commlsslon
whlch fees shall noL be payable before Lhe acLual paymenL of Lhe beneflLs and any
sLlpulaLlon Lo Lhe conLrary shall be null and vold
Any vlolaLlon of Lhe provlslons of Lhls SecLlon shall be punlshed by a flne of noL
less Lhan llve hundred pesos (30000) nor more Lhan llve Lhousand pesos
(300000) or lmprlsonmenL for noL less Lhan slx (6) monLhs nor more Lhan one
(1) year or boLh aL Lhe dlscreLlon of Lhe courL
SLC 18 Lmployee's ConLrlbuLlons (a) 8eglnnlng as of Lhe lasL day of Lhe
calendar monLh when an employee's compulsory coverage Lakes effecL and every
monLh LhereafLer durlng hls employmenL Lhe employer shall deducL and wlLhhold
from such employee's monLhly salary wage compensaLlon or earnlngs Lhe
employee's conLrlbuLlon ln an amounL correspondlng Lo hls salary wage
compensaLlon or earnlngs durlng Lhe monLh ln accordance wlLh Lhe followlng
schedule
SALA8? 8AnCL Cl MCn1PL? MCn1PL? CCn18l8u1lCn
88ACkL1 CCMLnSA1lCn SALA8?
C8Lul1 LMLC?L8 LMLC?LL 1C1AL
l 100000 124999 1000 3070 3330 8400
ll 123000 174999 1300 7600 3000 12600
lll 173000 224999 2000 10130 6670 16800
lv 223000 274999 2300 12670 8330 21000
v 273000 324999 3000 13200 10000 23200
vl 323000 374999 3300 17730 11670 29400
vll 373000 424999 4000 20270 13330 33600
vlll 423000 474999 4300 22800 13000 37800
lx 473000 324999 3000 23330 16670 42000
x 323000 374999 3300 27870 18370 46240
xl 373000 624999 6000 30400 20000 30400
xll 623000 674999 6300 32930 21678 34600
xlll 673000 724999 7000 33470 23330 38800
xlv 723000 774999 7300 38000 23000 63000
xv 773000 824999 8000 40330 26670 67200
xvl 823000 874999 8300 43070 28330 71400
xvll 873000 CvL8 9000 43600 30000 73600
1he foregolng schedule of conLrlbuLlon shall also apply Lo selfemployed and
volunLary members
1he maxlmum monLhly salary credlL shall be nlne Lhousand pesos (900000)
effecLlve !anuary nlneLeen hundred and nlneLy slx (1996)rovlded 1haL lL shall be
lncreased by Cne Lhousand pesos (100000) every year LhereafLer unLll lL shall
have reached 1welve Lhousand pesos (1200000) by nlneLeen hundred and
nlneLy nlne (1999) rovlded furLher 1haL Lhe mlnlmum and maxlmum monLhly
salary credlLs as well as Lhe raLe of conLrlbuLlons may be flxed from Llme Lo Llme by
Lhe Commlsslon Lhrough rules and regulaLlons Laklng lnLo conslderaLlon acLuarlal
calculaLlons and raLe of beneflLs sub[ecL Lo Lhe approval of Lhe resldenL of Lhe
hlllpplnes
SLC 19 Lmployer's ConLrlbuLlons (a) 8eglnnlng as of Lhe lasL day of Lhe monLh
when an employee's compulsory coverage Lakes effecL and every monLh LhereafLer
durlng hls employmenL hls employer shall pay wlLh respecL Lo such covered
employee Lhe employer's conLrlbuLlon ln accordance wlLh Lhe schedule lndlcaLed
ln SecLlon LlghLeen of Lhls AcL noLwlLhsLandlng any conLracL Lo Lhe conLrary an
employer shall noL deducL dlrecLly or lndlrecLly from Lhe compensaLlon of hls
employees covered by Lhe SSS or oLherwlse recover from Lhem Lhe employer's
conLrlbuLlons wlLh respecL Lo such employees
(b) 1he remlLLance of such conLrlbuLlons by Lhe employer shall be supporLed by a
quarLerly collecLlon llsL Lo be submlLLed Lo Lhe SSS aL Lhe end of each calendar
quarLer lndlcaLlng Lhe correcL lu number of Lhe employer Lhe correcL names and
Lhe SSS numbers of Lhe employees and Lhe LoLal conLrlbuLlons pald for Lhelr
accounL durlng Lhe quarLer
SLC 19A ConLrlbuLlons of Lhe SelfLmployed Member 1he conLrlbuLlons Lo Lhe
SSS of Lhe selfemployed member shall be deLermlned ln accordance wlLh SecLlon
LlghLeen of Lhls AcL rovlded 1haL Lhe monLhly earnlngs declared by Lhe self
employed member aL Lhe Llme of hls reglsLraLlon wlLh Lhe SSS shall be consldered
as hls monLhly compensaLlon and he shall pay boLh Lhe employer and Lhe
employee conLrlbuLlons rovlded furLher 1haL Lhe conLrlbuLlons of selfemployed
persons earnlng Cne Lhousand pesos (100000) monLhly or below may be
reduced by Lhe Commlsslon
1he monLhly earnlngs declared by Lhe selfemployed member aL Lhe Llme of hls
reglsLraLlon shall remaln Lhe basls of hls monLhly salary credlL unless he makes
anoLher declaraLlon of hls monLhly earnlngs ln whlch case such laLesL declaraLlon
becomes Lhe new basls of hls monLhly salary credlL
SLC 20 CovernmenL ConLrlbuLlon As Lhe conLrlbuLlon of Lhe CovernmenL Lo Lhe
operaLlon of Lhe SSS Congress shall annually approprlaLe ouL of any funds ln Lhe
naLlonal 1reasury noL oLherwlse approprlaLed Lhe necessary sum or sums Lo meeL
Lhe esLlmaLed expenses of Lhe SSS for each ensulng year ln addlLlon Lo Lhls
conLrlbuLlon Congress shall approprlaLe from Llme Lo Llme such sum or sums as
may be needed Lo assure Lhe malnLenance of an adequaLe worklng balance of Lhe
funds of Lhe SSS as dlsclosed by sulLable perlodlc acLuarlal sLudles Lo be made of
Lhe operaLlons of Lhe SSS
SLC 21 CovernmenL CuaranLee 1he beneflLs prescrlbed ln Lhls AcL shall noL be
dlmlnlshed and Lo guaranLee sald beneflLs Lhe CovernmenL of Lhe 8epubllc of Lhe
hlllpplnes accepLs general responslblllLy for Lhe solvency of Lhe SSS
SLC 22 8emlLLance of ConLrlbuLlons (a) 1he conLrlbuLlons lmposed ln Lhe
precedlng SecLlon shall be remlLLed Lo Lhe SSS wlLhln Lhe flrsL Len (10) days of each
calendar monLh followlng Lhe monLh for whlch Lhey are appllcable or wlLhln such
Llme as Lhe Commlsslon may prescrlbe Lvery employer requlred Lo deducL and Lo
remlL such conLrlbuLlons shall be llable for Lhelr paymenL and lf any conLrlbuLlon ls
noL pald Lo Lhe SSS as hereln prescrlbed he shall pay besldes Lhe conLrlbuLlon a
penalLy Lhereon of Lhree percenL (3) per monLh from Lhe daLe Lhe conLrlbuLlon
falls due unLll pald lf deemed expedlenL and advlsable by Lhe Commlsslon Lhe
collecLlon and remlLLance of conLrlbuLlons shall be made quarLerly or semlannually
ln advance Lhe conLrlbuLlons payable by Lhe employees Lo be advanced by Lhelr
respecLlve employers rovlded 1haL upon separaLlon of an employee any
conLrlbuLlon so pald ln advance buL noL due shall be credlLed or refunded Lo hls
employer
(b) 1he conLrlbuLlons payable under Lhls AcL ln cases where an employer refuses
or neglecLs Lo pay Lhe same shall be collecLed by Lhe SSS ln Lhe same manner as
Laxes are made collecLlble under Lhe naLlonal lnLernal 8evenue Code as amended
lallure or refusal of Lhe employer Lo pay or remlL Lhe conLrlbuLlons hereln
prescrlbed shall noL pre[udlce Lhe rlghL of Lhe covered employee Lo Lhe beneflLs of
Lhe coverage
1he rlghL Lo lnsLlLuLe Lhe necessary acLlon agalnsL Lhe employer may be
commenced wlLhln LwenLy (20) years from Lhe Llme Lhe dellnquency ls known or
Lhe assessmenL ls made by Lhe SSS or from Lhe Llme Lhe beneflL accrues as Lhe
case may be
(c) Should any person naLural or [urldlcal defaulL ln any paymenL of conLrlbuLlons
Lhe Commlsslon may also collecL Lhe same ln elLher of Lhe followlng ways
1 8y an acLlon ln courL whlch shall hear and dlspose of Lhe case ln preference Lo
any oLher clvll acLlon or
2 8y lssulng a warranL Lo Lhe Sherlff of any provlnce or clLy commandlng hlm Lo
levy upon and sell any real and personal properLy of Lhe debLor 1he Sherlff's sale
by vlrLue of sald warranL shall be governed by Lhe same procedure prescrlbed for
execuLlons agalnsL properLy upon [udgmenLs by a courL of record
(d) 1he lasL compleLe record of monLhly conLrlbuLlons pald by Lhe employer or Lhe
average of Lhe monLhly conLrlbuLlons pald durlng Lhe pasL Lhree (3) years as of Lhe
daLe of flllng of Lhe acLlon for collecLlon shall be presumed Lo be Lhe monLhly
conLrlbuLlons payable by and due from Lhe employer Lo Lhe SSS for each of Lhe
unpald monLh unless conLradlcLed and overcome by oLher
evldence rovlded 1haL Lhe SSS shall noL be barred from deLermlnlng and
collecLlng Lhe Lrue and correcL conLrlbuLlons due Lhe SSS even afLer full paymenL
pursuanL Lo Lhls paragraph nor shall Lhe employer be relleved of hls llablllLy under
SecLlon 1wenLyelghL of Lhls AcL
SLC 22A 8emlLLance of ConLrlbuLlons of SelfLmployed Member Selfemployed
members shall remlL Lhelr monLhly conLrlbuLlons quarLerly on such daLes and
schedules as Lhe Commlsslon may speclfy Lhrough rules and
regulaLlons rovlded 1haL no reLroacLlve paymenL of conLrlbuLlons shall be
allowed excepL as provlded ln Lhls SecLlon
SLC 23 MeLhod of CollecLlon and aymenL 1he SSS shall requlre a compleLe and
proper collecLlon and paymenL of conLrlbuLlons and proper ldenLlflcaLlon of Lhe
employer and Lhe employee aymenL may be made ln cash checks sLamps
coupons LlckeLs or oLher reasonable devlces LhaL Lhe Commlsslon may adopL
SLC 24 LmploymenL 8ecords and 8eporLs (a) Lach employer shall lmmedlaLely
reporL Lo Lhe SSS Lhe names ages clvll sLaLus occupaLlons salarles and
dependenLs of all hls employees who are sub[ecL Lo compulsory
coverage rovlded 1haL lf an employee sub[ecL Lo compulsory coverage should dle
or become slck or dlsabled or reach Lhe age of slxLy (60) wlLhouL Lhe SSS havlng
prevlously recelved any reporL or wrlLLen communlcaLlon abouL hlm from hls
employer Lhe sald employer shall pay Lo Lhe SSS damages equlvalenL Lo Lhe
beneflLs Lo whlch sald employee member would have been enLlLled had hls name
been reporLed on Llme by Lhe employer Lo Lhe SSS excepL LhaL ln case of penslon
beneflLs Lhe employer shall be llable Lo pay Lhe SSS damages equlvalenL Lo Lhe
accumulaLed penslon due as of Lhe daLe of seLLlemenL of Lhe clalm or Lo Lhe flve (3)
years' penslon lncludlng dependenLs' penslon rovlded furLher 1haL lf Lhe
conLlngency occurs wlLhln LhlrLy (30) days from Lhe daLe of employmenL Lhe
employer shall be relleved of hls llablllLy for damages rovlded furLher 1haL any
person or enLlLy engaglng Lhe servlces of an lndependenL conLracLor shall be
subsldlarlly llable wlLh such conLracLor for any clvll llablllLy lncurred by Lhe laLLer
under Lhls AcL rovlded flnally 1haL Lhe same person or enLlLy engaglng Lhe
servlces of an lndependenL conLracLor shall requlre such conLracLor Lo posL a sureLy
bond Lo guaranLee Lhe paymenL of Lhe worker's beneflLs
(b) Should Lhe employer mlsrepresenL Lhe Lrue daLe of employmenL of Lhe
employee member or remlL Lo Lhe SSS conLrlbuLlons whlch are less Lhan Lhose
requlred ln Lhls AcL or fall Lo remlL any conLrlbuLlon due prlor Lo Lhe daLe of
conLlngency resulLlng ln a reducLlon of beneflLs Lhe employer shall pay Lo Lhe SSS
damages equlvalenL Lo Lhe dlfference beLween Lhe amounL of beneflL Lo whlch Lhe
employee member or hls beneflclary ls enLlLled had Lhe proper conLrlbuLlons been
remlLLed Lo Lhe SSS and Lhe amounL payable on Lhe basls of conLrlbuLlons acLually
remlLLed rovlded 1haL lf Lhe employee member or hls beneflclary ls enLlLled Lo
penslon beneflLs damages shall be equlvalenL Lo Lhe accumulaLed penslon due as
of Lhe daLe of seLLlemenL of Lhe clalm or Lo Lhe flve (3) years' penslon whlchever ls
hlgher lncludlng dependenLs' penslon
ln addlLlon Lo Lhe llablllLy menLloned ln Lhe precedlng paragraphs (a) and (b)
hereof Lhe employer shall also be llable for Lhe correspondlng unremlLLed
conLrlbuLlons and penalLles Lhereon
(c) 1he records and reporLs duly accompllshed and submlLLed Lo Lhe SSS by Lhe
employer or Lhe member as Lhe case may be shall be kepL confldenLlal by Lhe SSS
excepL ln compllance wlLh a subpoena duces Lecum lssued by Lhe CourL shall noL
be dlvulged wlLhouL Lhe consenL of Lhe SSS resldenL or any offlclal of Lhe SSS duly
auLhorlzed by hlm shall be presumed correcL as Lo Lhe daLa and oLher maLLers
sLaLed Lhereln unless Lhe necessary correcLlons Lo such records and reporLs have
been properly made by Lhe parLles concerned before Lhe rlghL Lo Lhe beneflL belng
clalmed accrues and shall be made Lhe basls for Lhe ad[udlcaLlon of Lhe clalm lf as
a resulL of such ad[udlcaLlon Lhe SSS ln good falLh pays a monLhly penslon Lo a
beneflclary who ls lnferlor ln rlghL Lo anoLher beneflclary or wlLh whom anoLher
beneflclary ls enLlLled Lo share such paymenLs shall dlscharge Lhe SSS from llablllLy
unless and unLll such oLher beneflclary noLlfles Lhe SSS of hls clalm prlor Lo Lhe
paymenLs
(d) Lvery employer shall keep Lrue and accuraLe work records for such perlod and
conLalnlng such lnformaLlon as Lhe Commlsslon may prescrlbe ln addlLlon Lo
an Annual 8eglsLer of new and SeparaLed Lmployees whlch shall be secured from
Lhe SSS whereln Lhe employer shall enLer on Lhe flrsL day of employmenL or on Lhe
effecLlve daLe of separaLlon Lhe names of Lhe persons employed or separaLed from
employmenL Lhelr SSS numbers and such oLher daLa LhaL Lhe Commlsslon may
requlre and sald annual reglsLer shall be submlLLed Lo Lhe SSS ln Lhe monLh of
!anuary of each year Such records shall be open for lnspecLlon by Lhe SSS or lLs
auLhorlzed represenLaLlves quarLerly or as ofLen as Lhe SSS may requlre
1he SSS may also requlre each employer Lo submlL wlLh respecL Lo Lhe persons ln
hls employ reporLs needed for Lhe effecLlve admlnlsLraLlon of Lhls AcL
(e) Lach employer shall requlre as a condlLlon Lo employmenL Lhe presenLaLlon of
a reglsLraLlon number secured by Lhe prospecLlve employee from Lhe SSS ln
accordance wlLh such procedure as Lhe SSS may adopL rovlded 1haL ln case of
employees who have been asslgned reglsLraLlon numbers by vlrLue of a prevlous
employmenL such numbers orlglnally asslgned Lo Lhem should be used for
purposes of Lhls SecLlon rovlded furLher 1haL Lhe lssuance of such reglsLraLlon
numbers by Lhe SSS shall noL exempL Lhe employer from complylng wlLh Lhe
provlslons of paragraph (a) of Lhls SecLlon
(f) noLwlLhsLandlng any law Lo Lhe conLrary mlcrofllm or nonerasable opLlcal
dlsk and oLher slmllar archlval medla coples of orlglnal SSS records and reporLs
duly cerLlfled by Lhe offlclal cusLodlan Lhereof shall have Lhe same evldenLlary
value as Lhe orlglnals and be admlsslble as evldence ln all legal proceedlngs
(g) noLwlLhsLandlng any law Lo Lhe conLrary local governmenL unlLs shall prlor Lo
lssulng any annual buslness llcense or permlL requlre submlsslon of cerLlflcaLe of
SSS coverage and compllance wlLh Lhe provlslons of Lhls AcL rovlded 1haL Lhe
cerLlflcaLlon or clearance shall be lssued by Lhe SSS wlLhln flve (3) worklng days
from recelpL of Lhe requesL
SLC 24A 8eporL and 8eglsLraLlon of Lhe SelfLmployed Member Lach covered
selfemployed person shall wlLhln LhlrLy (30) days from Lhe flrsL day he sLarLed Lhe
pracLlce of hls professlon or buslness operaLlons reglsLer and reporL Lo Lhe SSS hls
name age clvll sLaLus and occupaLlon average monLhly neL lncome and hls
dependenLs
SLC 23 ueposlLs and ulsbursemenLs All money pald Lo or collecLed by Lhe SSS
every year under Lhls AcL and all accruals LhereLo shall be deposlLed admlnlsLered
and dlsbursed ln Lhe same manner and under Lhe same condlLlons and
requlremenLs as provlded by law for oLher publlc speclal funds rovlded 1haL noL
more Lhan Lwelve percenL (12) of Lhe LoLal yearly conLrlbuLlons plus Lhree percenL
(3) of oLher revenues shall be dlsbursed for operaLlonal expenses such as salarles
and wages supplles and maLerlals depreclaLlon and Lhe malnLenance of offlces of
Lhe SSS rovlded furLher 1haL lf Lhe expenses ln any year are less Lhan Lhe
maxlmum amounL permlsslble Lhe dlfference shall noL be avalled of as addlLlonal
expenses ln Lhe followlng years
SLC 26 lnvesLmenL of 8eserve lunds All revenues of Lhe SSS LhaL are noL
needed Lo meeL Lhe currenL admlnlsLraLlve and operaLlonal expenses lncldenLal Lo
Lhe carrylng ouL of Lhls AcL shall be accumulaLed ln a fund Lo be known as
Lhe 8eserve lund Such porLlons of Lhe 8eserve lund as are noL needed Lo meeL
Lhe currenL beneflL obllgaLlons Lhereof shall be known as Lhe lnvesLmenL 8eserve
lund whlch Lhe Commlsslon shall manage and lnvesL wlLh Lhe sklll care prudence
and dlllgence necessary under Lhe clrcumsLances Lhen prevalllng LhaL a prudenL
man acLlng ln llke capaclLy and famlllar wlLh such maLLers would exerclse ln Lhe
conducL of an enLerprlse of a llke characLer and wlLh slmllar alms ursuanL LhereLo
and ln llne wlLh Lhe baslc prlnclples of safeLy good yleld and llquldlLy Lhe
Commlsslon shall lnvesL Lhe funds Lo earn an annual lncome noL less Lhan Lhe
average raLes of Lreasury bllls or any oLher accepLable markeL yleld lndlcaLor ln any
or ln all of Lhe followlng
(a) ln bonds securlLles promlssory noLes or oLher evldence of lndebLedness of Lhe
CovernmenL of Lhe hlllpplnes or ln bonds securlLles promlssory noLes or oLher
evldence of lndebLedness Lo whlch Lhe full falLh credlL and uncondlLlonal
guaranLee of Lhe CovernmenL of Lhe hlllpplnes ls pledged
(b) ln bonds securlLles promlssory noLes or oLher evldence of lndebLedness of Lhe
CovernmenL of Lhe hlllpplnes or any agencles or lnsLrumenLallLles Lo flnance
domesLlc lnfrasLrucLure pro[ecLs such as roads brldges porLs LelecommunlcaLlons
and oLher slmllar pro[ecLsrovlded 1haL Lhe lnsLrumenLs lssued by an agency or
lnsLrumenLallLy of Lhe governmenL shall be guaranLeed by Lhe CovernmenL of Lhe
hlllpplnes or any governmenL flnanclal lnsLlLuLlon or accepLable mulLllaLeral
agency rovlded furLher 1haL Lhe SSS shall have prlorlLy over Lhe revenues of Lhe
pro[ecLs rovlded flnally 1haL such lnvesLmenLs shall noL exceed LhlrLy percenL
(30) of Lhe lnvesLmenL 8eserve lund
(c) ln bonds securlLles promlssory noLes or oLher evldence of lndebLedness of
governmenL flnanclal lnsLlLuLlons or governmenL corporaLlons wlLh accepLable
credlL or guaranLee rovlded 1haL such lnvesLmenLs shall noL exceed LhlrLy
percenL (30) of Lhe lnvesLmenL 8eserve lund
(d) ln bonds securlLles promlssory noLes or oLher evldence of lndebLedness of
any bank dolng buslness ln Lhe hlllpplnes and ln good sLandlng wlLh Lhe 8angko
SenLral ng lllplnas Lo flnance loans Lo prlvaLe corporaLlons dolng buslness ln Lhe
hlllpplnes lncludlng schools hosplLals smallandmedlum scale lndusLrles
cooperaLlves and nongovernmenLal organlzaLlons ln whlch case Lhe collaLerals or
securlLles shall be asslgned Lo Lhe SSS under such Lerms and condlLlons as Lhe
Commlsslon may prescrlbe rovlded 1haL ln Lhe case of bank deposlLs Lhey shall
noL exceed aL any Llme Lhe unlmpalred caplLal and surplus or LoLal prlvaLe deposlLs
of Lhe deposlLory bank whlchever ls smallerrovlded furLher 1haL sald bank shall
flrsL have been deslgnaLed as a deposlLory for Lhls purpose by Lhe MoneLary 8oard
of Lhe 8angko SenLral ng lllplnas rovlded flnally 1haL such lnvesLmenLs shall noL
exceed forLy percenL (40) of Lhe lnvesLmenL 8eserve lund
(e) ln bonds securlLles promlssory noLes or oLher evldence of lndebLedness of
shelLer agencles of Lhe naLlonal CovernmenL or flnanclal lnLermedlarles Lo flnance
houslng loans of members and ln longLerm dlrecL lndlvldual or group houslng
loans glvlng prlorlLy Lo Lhe lowlncome groups up Lo a maxlmum of nlneLy percenL
(90) of Lhe appralsed value of Lhe properLles Lo be morLgaged by Lhe borrowers
and
ln shorL and medlum Lerm loans Lo members such as salary educaLlonal
llvellhood marlLal calamlLy and emergency loans rovlded 1haL noL more Lhan
LhlrLy flve percenL (33) of Lhe lnvesLmenL 8eserve lund aL any Llme shall be
lnvesLed for houslng purposes rovlded furLher 1haL noL more Lhan Len percenL
(10) of Lhe lnvesLmenL 8eserve lund shall be lnvesLed ln shorL and medlum Lerm
loans
(f) ln bonds securlLles promlssory noLes or oLher evldence of lndebLedness of
educaLlonal or medlcal lnsLlLuLlons Lo flnance Lhe consLrucLlon lmprovemenL and
malnLenance of schools and hosplLals and Lhelr equlpmenL and
faclllLles rovlded 1haL such lnvesLmenLs shall noL exceed Len percenL (10) of
Lhe lnvesLmenL 8eserve lund
(g) ln real esLaLe properLy lncludlng shares of sLocks lnvolvlng real esLaLe
properLy and lnvesLmenL secured by flrsL morLgages on real esLaLe or oLher
collaLerals accepLable Lo Lhe SSS rovlded 1haL such pro[ecLs and lnvesLmenLs
shall ln Lhe deLermlnaLlon of Lhe Commlsslon redound Lo Lhe beneflL of Lhe SSS
lLs members as well as Lhe general publlc rovlded furLher 1haL lnvesLmenL ln
real esLaLe properLy lncludlng shares of sLocks lnvolvlng real esLaLe properLy shall
noL exceed flve percenL (3) of Lhe lnvesLmenL 8eserve lundrovlded flnally 1haL
lnvesLmenLs ln oLher lncome earnlng pro[ecLs and lnvesLmenLs secured by flrsL
morLgages or oLher collaLerals shall noL exceed LwenLy flve percenL (23) of Lhe
lnvesLmenL 8eserve lund
(h) ln bonds debenLures securlLles promlssory noLes or oLher evldence of
lndebLedness of any prlme corporaLlon or mulLllaLeral lnsLlLuLlons Lo flnance
domesLlc pro[ecLs rovlded 1haL Lhe lssulng or assumlng enLlLy or lLs predecessors
shall noL have defaulLed ln Lhe paymenL of lnLeresL on any of lLs securlLles and LhaL
durlng each of any Lhree (3) lncludlng Lhe lasL Lwo (2) of Lhe flve (3) flscal years nexL
precedlng Lhe daLe of acqulslLlon by Lhe SSS of such bonds debenLures or oLher
evldence of lndebLedness Lhe neL earnlngs of Lhe lssulng or assumlng lnsLlLuLlon
avallable for lLs flxed charges as deflned ln Lhls AcL shall have been noL less Lhan
one and onequarLer Llmes Lhe LoLal of lLs flxed charges for such year rovlded
furLher 1haL such lnvesLmenLs shall noL exceed LhlrLy percenL (30) of Lhe
lnvesLmenL 8eserve lund
(l) ln preferred or common shares of sLocks llsLed or abouL Lo be llsLed ln Lhe sLock
exchange or opLlons or warranLs Lo such sLocks or sub[ecL Lo prlor approval of Lhe
8angko SenLral ng lllplnas such oLher rlsk managemenL lnsLrumenLs of any prlme
or solvenL corporaLlon or flnanclal lnsLlLuLlon creaLed or exlsLlng under Lhe laws of
Lhe hlllpplnes wlLh proven Lrack record of proflLablllLy over Lhe lasL Lhree (3) years
and paymenL of dlvldends aL leasL once over Lhe same perlod rovlded 1haL such
lnvesLmenLs shall noL exceed LhlrLy percenL (30) of Lhe lnvesLmenL 8eserve lund
([) ln domesLlc or forelgn muLual funds ln exlsLence for aL leasL Lhree (3)
years rovlded 1haL such lnvesLmenLs shall noL exceed LwenLy percenL (20) of
Lhe lnvesLmenL 8eserve lund rovlded furLher 1haL lnvesLmenLs ln forelgn
muLual funds shall noL exceed one percenL (1) of Lhe lnvesLmenL 8eserve lund ln
Lhe flrsL year whlch shall be lncreased by one percenL (1) for each succeedlng
year buL ln no case shall lL exceed seven and onehalf percenL (73) of Lhe
lnvesLmenL 8eserve lund
(k) ln forelgn currency deposlLs or Lrlple A forelgn currency denomlnaLed debLs
prlme and nonspeculaLlve equlLles and oLher 8angko SenLral ng lllplnas
approved flnanclal lnsLrumenLs or oLher asseLs lssued ln accordance wlLh Lhe
exlsLlng laws of Lhe counLrles where such flnanclal lnsLrumenLs are
lssued rovlded 1haL Lhese lnsLrumenLs or asseLs are llsLed ln bourses of Lhe
respecLlve counLrles where Lhese lnsLrumenLs or asseLs are lssued rovlded
furLher 1haL Lhe lssulng company has proven Lrack of record of proflLablllLy over
Lhe lasL Lhree (3) years and a record of regular dlvldend payouL over Lhe same
perlod rovlded flnally 1haL such lnvesLmenLs shall noL exceed one percenL (1)
of Lhe lnvesLmenL 8eserve lund ln Lhe flrsL year whlch shall be lncreased by one
percenL (1) for each succeedlng year buL ln no case shall lL exceed seven and
onehalf percenL (73) of Lhe lnvesLmenL 8eserve lund
(l) ln loans secured by such collaLerals llke cash governmenL securlLles or
guaranLees of mulLllaLeral lnsLlLuLlons rovlded 1haL such lnvesLmenLs shall noL
exceed LhlrLy percenL (30) of Lhe lnvesLmenL 8eserve lund and
(m) ln oLher 8angko SenLral ng lllplnas approved lnvesLmenL lnsLrumenLs wlLh
Lhe same lnLrlnslc quallLy as Lhose enumeraLed ln paragraphs (a) Lo (l) hereof
sub[ecL Lo Lhe pollcles and guldellnes whlch Lhe Commlsslon may formulaLe
no porLlon of Lhe lnvesLmenL 8eserve lund or lncome Lhereof shall accrue Lo Lhe
general fund of Lhe naLlonal CovernmenL or Lo any of lLs agencles or
lnsLrumenLallLles lncludlng governmenLowned or conLrolled corporaLlons excepL
as may be allowed under Lhls AcL rovlded1haL no porLlon of Lhe lnvesLmenL
8eserve lund shall be lnvesLed for any purpose or ln any lnsLrumenL lnsLlLuLlon or
lndusLry over and above Lhe prescrlbed cumulaLlve celllngs as follows
40 ln prlvaLe securlLles
33 ln houslng
30 ln real esLaLe relaLed lnvesLmenLs
10 ln shorL and medlumLerm member loans
30 ln governmenL flnanclal lnsLlLuLlons and corporaLlons
30 ln lnfrasLrucLure pro[ecLs
13 ln any parLlcular lndusLry
73 ln forelgncurrency denomlnaLed lnvesLmenLs
SLC 26A lund Managers As parL of lLs lnvesLmenL operaLlons Lhe SSS may
appolnL local or ln Lhe absence Lhereof forelgn fund managers Lo manage Lhe
lnvesLmenL 8eserve lund as lL may deem approprlaLe
SLC 268 MorLgagor lnsurance AccounL (a) As parL of lLs lnvesLmenL operaLlons
Lhe SSS shall acL as lnsurer of all or parL of lLs lnLeresL on SSS properLles morLgaged
Lo Lhe SSS or llves of morLgagors whose properLles are morLgaged Lo Lhe SSS lor
Lhls purpose Lhe SSS shall esLabllsh a separaLe accounL Lo be known as Lhe
MorLgagors' lnsurance AccounL All amounLs recelved by Lhe SSS ln connecLlon
wlLh Lhe aforesald lnsurance operaLlons shall be placed ln Lhe MorLgagors'
lnsurance AccounL 1he asseLs and llablllLles of Lhe MorLgagors' lnsurance AccounL
shall aL all Llmes be clearly ldenLlflable and dlsLlngulshable from Lhe asseLs and
llablllLles ln all oLher accounLs of Lhe SSS noLwlLhsLandlng any provlslon of law Lo
Lhe conLrary Lhe asseLs held ln Lhe MorLgagors' lnsurance AccounL shall noL be
chargeable wlLh Lhe llablllLles arlslng ouL of any oLher buslness Lhe SSS may conducL
buL shall be held and applled excluslvely for Lhe beneflL of Lhe owners or
beneflclarles of Lhe lnsurance conLracLs lssued by Lhe SSS under Lhls paragraph
(b) 1he SSS may lnsure any of lLs lnLeresL or parL Lhereof wlLh any prlvaLe company
or relnsurer 1he lnsurance Commlsslon or lLs auLhorlzed represenLaLlves shall
make an examlnaLlon lnLo Lhe flnanclal condlLlon and meLhods of LransacLlng
buslness of Lhe SSS aL leasL once ln Lwo (2) years buL such examlnaLlon shall be
llmlLed Lo Lhe lnsurance operaLlon of Lhe SSS as auLhorlzed under Lhls paragraph
and shall noL embrace Lhe oLher operaLlons of Lhe SSS and Lhe reporL of sald
examlnaLlon shall be submlLLed Lo Lhe Commlsslon and a copy Lhereof shall be
furnlshed Lhe Cfflce of Lhe resldenL of Lhe hlllpplnes wlLhln a reasonable Llme
afLer Lhe close of Lhe examlnaLlonrovlded 1haL for each examlnaLlon Lhe SSS
shall pay Lo Lhe lnsurance Commlsslon an amounL equal Lo Lhe acLual expense of
Lhe lnsurance Commlsslon ln Lhe conducL of examlnaLlon lncludlng Lhe salarles of
Lhe examlners and of Lhe acLuary of Lhe lnsurance Commlsslon who have been
asslgned Lo make such examlnaLlon for Lhe acLual Llme spenL ln sald
examlnaLlon rovlded furLher 1haL Lhe general law on lnsurance and Lhe rules
and regulaLlons promulgaLed Lhereunder shall have suppleLory appllcaLlon lnsofar
as lL ls noL ln confllcL wlLh Lhls AcL and lLs rules and regulaLlons
SLC 27 8ecords and 8eporLs 1he SSS resldenL shall keep and cause Lo keep
records of operaLlons of Lhe funds of Lhe SSS and of dlsbursemenLs Lhereof and all
accounLs of paymenLs made ouL of sald funds uurlng Lhe monLh of !anuary of each
year Lhe SSS resldenL shall prepare for submlsslon Lo Lhe resldenL of Lhe
hlllpplnes and Lo Congress of Lhe hlllpplnes a reporL of operaLlons of Lhe SSS
durlng Lhe precedlng year lncludlng sLaLlsLlcal daLa on Lhe number of persons
covered and beneflLed Lhelr occupaLlons and employmenL sLaLus Lhe duraLlon and
amounL of beneflLs pald Lhe flnances of Lhe SSS aL Lhe close of Lhe sald year and
recommendaLlons Pe shall also cause Lo be publlshed ln Lwo (2) newspapers of
general clrculaLlon ln Lhe hlllpplnes a synopsls of Lhe annual reporL showlng ln
parLlcular Lhe sLaLus of Lhe flnances of Lhe SSS and Lhe beneflLs admlnlsLered
SLC 28 enal Clause (a) Whoever for Lhe purpose of causlng any paymenL Lo
be made under Lhls AcL or under an agreemenL Lhereunder where none ls
auLhorlzed Lo be pald shall make or cause Lo be made false sLaLemenL or
represenLaLlon as Lo any compensaLlon pald or recelved or whoever makes or
causes Lo be made any false sLaLemenL of a maLerlal facL ln any clalm for any
beneflL payable under Lhls AcL or appllcaLlon for loan wlLh Lhe SSS or whoever
makes or causes Lo be made any false sLaLemenL represenLaLlon affldavlL or
documenL ln connecLlon wlLh such clalm or loan shall suffer Lhe penalLles provlded
for ln ArLlcle Cne hundred sevenLyLwo of Lhe 8evlsed enal Code
(b) Whoever shall obLaln or recelve any money or check under Lhls AcL or any
agreemenL Lhereunder wlLhouL belng enLlLled LhereLo wlLh lnLenL Lo defraud any
member employer or Lhe SSS shall be flned noL less Lhan llve Lhousand pesos
(300000) nor more Lhan 1wenLy Lhousand pesos (2000000) and lmprlsoned
for noL less Lhan slx (6) years and one (1) day nor more Lhan Lwelve (12) years
(c) Whoever buys sells offers for sale uses Lransfers or Lakes or glves ln
exchange or pledges or glves ln pledge excepL as auLhorlzed ln Lhls AcL or ln
regulaLlons made pursuanL LhereLo any sLamp coupon LlckeL book or oLher
devlce prescrlbed pursuanL Lo SecLlon 1wenLyLhree hereof by Lhe Commlsslon for
Lhe collecLlon or paymenL of conLrlbuLlons requlred hereln shall be flned noL less
Lhan llve Lhousand pesos (300000) nor more Lhan 1wenLy Lhousand pesos
(2000000) or lmprlsoned for noL less Lhan slx (6) years and one (1) day nor more
Lhan Lwelve (12) years or boLh aL Lhe dlscreLlon of Lhe courL
(d) Whoever wlLh lnLenL Lo defraud alLers forges makes or counLerfelLs any
sLamp coupon LlckeL book or oLher devlce prescrlbed by Lhe Commlsslon for Lhe
collecLlon or paymenL of any conLrlbuLlon requlred hereln or uses sells lends or
has ln hls possesslon any such alLered forged or counLerfelLed maLerlals or makes
uses sells or has ln hls possesslon any such alLered forged maLerlal ln lmlLaLlon of
Lhe maLerlal used ln Lhe manufacLure of such sLamp coupon LlckeL book or oLher
devlce shall be flned noL less Lhan llve Lhousand pesos (300000) non more Lhan
1wenLy Lhousand pesos (2000000) or lmprlsoned for noL less Lhan slx years (6)
and one (1) day nor more Lhan Lwelve (12) years or boLh aL Lhe dlscreLlon of Lhe
courL
(e) Whoever falls or refuses Lo comply wlLh Lhe provlslons of Lhls AcL or wlLh Lhe
rules and regulaLlons promulgaLed by Lhe Commlsslon shall be punlshed by a flne
of noL less Lhan llve Lhousand pesos (300000) nor more Lhan 1wenLy Lhousand
pesos (2000000) or lmprlsonmenL for noL less Lhan slx (6) years and one (1) day
nor more Lhan Lwelve (12) years or boLh aL Lhe dlscreLlon of Lhe
courLrovlded 1haL where Lhe vlolaLlon conslsLs ln fallure or refusal Lo reglsLer
employees or hlmself ln case of Lhe covered selfemployed or Lo deducL
conLrlbuLlons from Lhe employees' compensaLlon and remlL Lhe same Lo Lhe SSS
Lhe penalLy shall be a flne of noL less llve Lhousand pesos (300000) nor more
Lhan 1wenLy Lhousand pesos (2000000) and lmprlsonmenL for noL less Lhan slx
(6) years and one (1) day nor more Lhan Lwelve (12) years
(f) lf Lhe acL or omlsslon penallzed by Lhls AcL be commlLLed by an assoclaLlon
parLnershlp corporaLlon or any oLher lnsLlLuLlon lLs managlng head dlrecLors or
parLners shall be llable for Lhe penalLles provlded ln Lhls AcL for Lhe offense
(g) Any employee of Lhe SSS who recelves or keeps funds or properLy belonglng
payable or dellverable Lo Lhe SSS and who shall approprlaLe Lhe same or shall Lake
or mlsapproprlaLe or shall consenL or Lhrough abandonmenL or negllgence shall
permlL any oLher person Lo Lake such properLy or funds wholly or parLlally or shall
oLherwlse be gullLy of mlsapproprlaLlon of such funds or properLy shall suffer Lhe
penalLles provlded ln ArLlcle 1wo hundred sevenLeen of Lhe 8evlsed enal Code
(h) Any employer who afLer deducLlng Lhe monLhly conLrlbuLlons or loan
amorLlzaLlons from hls employee's compensaLlon falls Lo remlL Lhe sald deducLlon
Lo Lhe SSS wlLhln LhlrLy (30) days from Lhe daLe Lhey became due shall be
presumed Lo have mlsapproprlaLed such conLrlbuLlons or loan amorLlzaLlons and
shall suffer Lhe penalLles provlded ln ArLlcle 1hree hundred flfLeen of Lhe 8evlsed
enal Code
(l) Crlmlnal acLlon arlslng from a vlolaLlon of Lhe provlslons of Lhls AcL may be
commenced by Lhe SSS or Lhe employee concerned elLher under Lhls AcL or ln
approprlaLe cases under Lhe 8evlsed enal Code rovlded 1haL such crlmlnal
acLlon may be flled by Lhe SSS ln Lhe clLy or munlclpallLy where Lhe SSS offlce ls
locaLed lf Lhe vlolaLlon was commlLLed wlLhln lLs LerrlLorlal [urlsdlcLlon or ln MeLro
Manlla aL Lhe opLlon of Lhe SSS
SLC 29 CovernmenL Ald 1he esLabllshmenL of Lhe SSS shall noL dlsquallfy Lhe
members and employers from recelvlng such governmenL asslsLance flnanclal or
oLherwlse as may be provlded
SLC 30 1ranslLory Clause Any employer who ls dellnquenL or has noL remlLLed
all conLrlbuLlons due and payable Lo Lhe SSS may wlLhln slx (6) monLhs from Lhe
effecLlvlLy of Lhls AcL remlL sald conLrlbuLlons or submlL a proposal Lo pay Lhe same
ln lnsLallmenL wlLhln a perlod of noL more Lhan Lwelve (12) monLhs from Lhe
effecLlvlLy of Lhls AcL wlLhouL lncurrlng Lhe prescrlbed penalLy sub[ecL Lo Lhe
lmplemenLlng rules and regulaLlons whlch Lhe Commlsslon may
prescrlbe rovlded 1haL Lhe employer submlLs Lhe correspondlng collecLlon llsLs
LogeLher wlLh Lhe remlLLance or proposal Lo pay ln lnsLallmenLs rovlded
furLher 1haL ln case Lhe employer falls Lo remlL conLrlbuLlons wlLhln Lhe slxmonLh
grace perlod or defaulLs ln Lhe paymenL of any amorLlzaLlon provlded Lhe approved
proposal Lhe prescrlbed penalLy shall be lmposed from Lhe Llme Lhe conLrlbuLlons
flrsL became due as provlded ln SecLlon 22 (a) hereof
SLC 2 SeparablllLy Clause lf any provlslon of Lhls AcL ls declared lnvalld Lhe oLher
provlslons noL affecLed Lhereby shall remaln valld
SLC 3 8epeallng Clause All laws proclamaLlons execuLlve orders rules and
regulaLlons or parLs Lhereof lnconslsLenL wlLh Lhls AcL are hereby repealed
modlfled or amended accordlngly rovlded 1haL no person shall be deemed Lo be
vesLed wlLh any properLy or oLher rlghL by vlrLue of Lhe enacLmenL or operaLlon of
Lhls AcL
SLC 4 LffecLlvlLy Clause 1hls AcL shall Lake effecL flfLeen (13) days afLer lLs
compleLe publlcaLlon ln Lhe Cfflclal CazeLLe or ln aL leasL Lwo (2) naLlonal
newspapers of general clrculaLlon whlchever comes earller
Approved May 01 1997