Bulk Labor Special Laws

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Republic Act No. 1161REPUBLIC ACT NO. 1161 – AN ACT TO CREATE A SOCIAL SECURITY SYSTEM PROVIDING

SICKNESS, UNEMPLOYMENT, RETIREMENT, DISABILITY AND DEATH BENEFITS FOR

EMPLOYEES

Section 1. Short Title. - This Act shall be known as the “Social Security Law ” (As amended bySection 1, P.D. No. 24, S-1972).”

Section 2. Declaration of Policy. - It is the policy of the Republic of the Philippines to establish, develop,

promote and perfect a sound and viable tax-exempt social security service suitable to the needs of the

people throughout the Philippines which shall provide to covered employees and their families protection

against the hazards of disability, sickness, old age and death, with a view to promoting their well-being in

the spirit of social justice. (As amended by Section 1, R.A. 1792 and Section 2, P.D. No. 24, S-1972)

A. Administration

Section 3. Social Security System. - (a) To carry out the purposes of this Act, the Social Security System

with principal place of business in Metro Manila, Philippines is hereby created. The SSS shall be directed

and controlled by a Social Security Commission composed of the Secretary of Labor and Employment, the

SSS Administrator and seven appointive members: three of whom shall represent the labor group, one of

whom shall be a woman; three, the management group, one of whom shall be a woman; and, one, the

general public, to be appointed by the President of the Philippines. The Chairman of the Commission shall

be designated by the President from among its members. The term of the appointive members shall be

three years: Provided, That the terms of the first six appointive members shall be one, two and three years

for every two members, respectively.

All vacancies, except through the expiration of the term, shall be filled for the unexpired term only. The

apppointive members of the Commission shall receive one thousand five hundred pesos per diem for each

meeting actually attended by them: Provided, That no compensation shall be paid for more than eight

meetings a month. Members of the Commission who hear cases pending before the Commission, shall

also receive a per diem of one thousand five hundred pesos. (As amended by Section 2, R.A. 1792,

Section 1, R.A. 2658, Section 1, R.A. 4857; Section 3, P.D. No. 24, S-1972; Section 1, P.D. No. 347, S-

1973; Section 1, P.D. 735, S-1975; Section 1, P.D. No. 1202, S-1977; Section 1, E.O. No. 102, S-1986;

and R.A. 7688)

(b) The general conduct of the operations and management functions of the SSS shall be vested in the

Administrator who shall serve as the chief executive officer immediately responsible for carrying out the

program of the SSS and the policies of the Commission. The administrator shall be a person who has had

previous experience in technical and administrative fields related to the purposes of this Act. He shall be

appointed by the President of the Philippines and shall receive a salary to be fixed by the Commission with

the approval of the President, payable from the funds of the SSS. (As amended by Section 1, R.A. 2658;

Section 3, P.D. No. 24, S-1972; and Section 1, P.D. No. 735, S- 1975)

(c) The Commission, upon the recommendation of the Administrator shall appoint an actuary, and such

other personnel as may be deemed necessary; fix their compensation; prescribe their duties and establish

such methods and procedures as may insure the efficient, honest and economical administration of the

provisions and purposes of this Act. Provided, however, That the personnel of the SSS shall be selected

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only from civil service eligibles certified by the commissioner of civil service and be subject to civil service

rules and regulations. (As amended by Section 1, R.A. 2658 and Section 1, P.D. No. 735, S-1975)

Section 4. Powers and Duties of the Commission. - For the attainment of its main objectives as set forth

in section two hereof, the Commission shall have the following powers and duties:

(a) To adopt, amend and rescind, subject to the approval of the President, such rules and regulations as

may be necessary to carry out the provisions and purposes of this Act.

(b) To submit annually not later than March 31, a public report to the President of the Philippines covering

its activities in the administration and enforcement of this Act during the preceding year including

information and recommendations on broad policies for the development and perfection of the program of

the SSS. (As amended by Section 2, P.D. No. 735, S-1975)

(c) To require the Actuary to submit a valuation report on the SSS benefit program every five years, or

more frequently as may be necessary, and to undertake the necessary actuarial studies and calculationsconcerning increases in benefits and the financial stability of the SSS and to provide for the feasible

increases in benefits and the addition of new ones under such rules and regulations as the Commission

may adopt subject to the approval of the President: President, That the actuarial soundness of the reserve

fund shall be guaranteed: Provided, further, That such increases in benefits shall not require any increase

in the rate of contribution. (As amended by Section 1, P.D. No. 1636, S-1979 and Section 2, E.O. No. 102,

S-1986)

(d) To establish branches of the System whenever and wherever it may be expedient or necessary, and to

inspect or cause to be inspected periodically such branches.

(e) To enter into agreements or contracts for such service andd, as may be needed for the proper, efficient

and stable administration of the System.

(f) To adopt from time to time a budget of expenditures including salaries of personnel, against all funds

available to the System under this Act. (As amended by Section 3, R.A. 1792)

(g) To set up its accounting system and provide the necessary personnel therefor. (As amended by

Section 3, R.A. 1792)

(h) To require reports, compilations and analyses of statistical and economic data and to makeinvestigations as may be needed for the proper administration and development of the System.

(i) To acquire property, real or personal, which may be necessary or expedient for the attainment of the

purposes of this Act.

(j) To acquire, receive, or hold, by way of purchase, expropriation or otherwise, public or private property

for the purpose of undertaking housing projects preferably for the benefit of low-salaried employees and for

the maintenance of hospitals and institutions for the sick, aged and infirm employees and immediate

members of their families. (As amended by Section 2, R.A. 2658 and Section 2., P.D. No. 735, S-1975)

(k) To sue and be sued in court.



(l) To perform such other acts as it may deem appropriate for the proper enforcement of this Act.

Section 5. Settlement of Disputes. - (a) Any dispute arising under this Act with respect to coverage,

benefits, contributions and penalties thereon or any other matter related thereto, shall be cognizable by the

Commission, and any case filed with respect thereto shall be heard by the Commission, or any of its

members, or by hearing officers duly authorized by the Commission and decided within twenty days afterthe submission of the evidence. The filing, determination and settlement of disputes shall be governed by

the rules and regulations promulgated by the Commission. (As amended by Section 3, R.A. 2658; Section

2, R.A. 4857; and Section 3, P.D. No. 735, S-1975)

(b) Appeal to Courts. - Any decision of the Commission, in the absence of an appeal therefrom as herein

provided, shall become final fifteen days after the date of notification, and judicial review thereof shall be

permitted only after any party claiming to be aggrieved thereby has exhausted his remedies before the

Commission. The Commission shall be deemed to be a party to any judicial action involving any such

decision, and may be represented by an attorney employed by the Commission, or when requested by the

Commission, by the Solicitor General or any fiscal.

(c) Court Review. - The decision of the Commission upon any disputed matter may be received both upon

the law and the facts by the Court of Appeals. For the purpose of such review the procedure concerning

appeals from the Court of First Instance shall be followed as far as practicable and consistent with the

purposes of this Act. Appeal from a decision of the Commission must be taken within fifteen days from

notification of such decision. If the decision of the Commission involves only questions of law, the same

shall be reviewed by the Supreme Court. No appeal bond shall be required. The case shall be heard in a

summary manner, and shall take precedence over all cases, except that in the Supreme Court, criminal

cases wherein life imprisonment or death has been imposed by the trial court shall take precedence. No

appeal shall act as a supersedeas or a stay of the order of the Commission, unless the Commission itself,or the Court of Appeals or the Supreme Court, shall so order.

(d) Execution of decisions - Any decision or award of the Commission after the same has become final and

executory shall be enforced and executed in the same manner as decisions of Courts of First Instance and

the Commission shall have the power to issue to the City or provincial sheriff or the sheriff whom it may

appoint such writs of execution as may be necessary for the enforcement of such decision or award and

any person who shall fail or refuse to comply with such decision, award, or writ, after being required to do

so shall, upon application by the Commission, be punished by the proper court for contempt. (As amended

by Section 4, P.D. No. 24, S-1972)

Section 6. Auditor and Counsel. - (a) The Commissioner on Auditor shall be the ex-officio Auditor of the

SSS. He or his representative shall check and audit all the accounts, funds and properties of the SSS in

the same manner and as frequently as the accounts, funds and properties of the government are checked

and audited under existing laws; and he shall have, as far as practicable, the same powers and duties as

he has with respect to the checking and auditing of public accounts, funds and properties in general.

(b) The Secretary of Justice shall be the ex-officio counsel of the SSS. He or his representative shall act as

legal adviser and counsel thereof. (As amended by Section 4, P.D. No. 735, S-1975)

Section 7. Oaths, Witnesses, and Production of Records. - When authorized by the Commission, an

official or employee thereof shall have the power to administer oath and affirmation, take depositions,

certify to official acts, and issue subpoena and subpoena duces tecum to compel the attendance of



witnesses and the production of books, papers, correspondence and other records deemed necessary as

evidence in connection with any question arising under this Act. Any case of contumacy shall be dealt with

in accordance with the provisions of section five hundred eighty of the Administrative Code.

B. Definitions

Section 8. Terms Defined. - For the purposes of this Act, the following terms shall, unless the contextindicates otherwise, have the following meanings:

(a) SSS - The Social Security System created by this Act. (As amended by Section 2, P.D. No. 1636, S-

1979)

(b) Commission - The Social Security Commission as herein created.

(c) Employer - Any person, natural or juridical, domestic or foreign, who carries on in the Philippines any

trade, business, industry, undertaking, or activity of any kind and uses the services of another person who

is under his orders as regards the employment, except the Government and any of its politicalsubdivisions, branches or instrumentalities, including corporations owned or controlled by the Government:

Provided, That a self-employed professional shall be both employee and employer at the same time. (As

amended by Section 2, P.D. No. 1636, S-1979)

(d) Employee - Any person who performs services for an employer in which either or both mental and

physical efforts are used and who receives compensation for such services, where there is an employer-

employee relationship: Provided, That a self-employed professional shall be both employee and employer

at the same time. (As amended by Section 4, R.A. 2658 and Section 2, P.D. No. 1636, S-1979)

(e) Dependent - The legitimate, legitimated or legally adopted child who is unmarried, not gainfullyemployed, and not over twenty-one years of age, or over twenty-one years of age, provided that he is

congenitally incapacitated and incapable of self-support, physically or mentally; the legitimate spouse

dependent for support upon the employee; and the legitimate parents wholly dependent upon the covered

employee for regular support. (As amended by Section 4, R.A. 2658; Section 3, R.A. 4857; and Section 5,

P.D. No. 735, S-1975)

(f) Compensation - All actual remuneration for employment, including the mandated cost of living

allowance, as well as the cash value of any remuneration paid in any medium other than cash except that

part of the remuneration in excess of three thousand pesos received during the month. (As amended by

Section 4, R.A. 1792; Section 4 R.A. 2658; Section 5, P.D. No. 24, S-1972; and Section 3, E.O. No. 102,S-1986)

(g) Monthly salary credit - The compensation base for contributions and benefits as indicated in the

schedule in section eighteen of this Act. (As amended by Section 4, R.A. 2658 and Section 5 P.D. No. 24,

S-1972)

(h) Monthly - The period from one end of the last payroll period of the preceding month to the end of the

last payroll period of the current month if compensation is on hourly, daily or weekly basis; if on any other

basis, “monthly” shall mean a period of one month.

(i) Contribution - The amount paid to the SSS by the employee and by his employer in accordance with

section eighteen of this Act. (As amended by Section 5, P.D. No. 24, S-1972)



(j) Employment. - Any service performed by an employee for his employer, except -

1. Agricultural labor when performed by a share or leasehold tenant or worker who is not paid any regular

daily wage or base pay and who does not work for an uninterrupted period of at least six months in a year;

(As amended by Section 4, R.A. 2658)

2. Domestic service in a private home;

3. Employment purely casual and not for the purposes of occupation or business of the employer;

4. Service performed by an individual in the employ of his son, daughter, or spouse, and service performed

by a child under the age of twenty-one years in the employ of his parents;

5. Service performed on or in connection with an alien vessel by an employee if he is employed when such

vessel is outside the

Philippines;

6. Service performed in the employ of the Philippine Government or an instrumentality or agency thereof;

7. Service performed in the employ of a foreign government or international organization, or their wholly-

owned instrumentality: Provided, however, That his exemption notwithstanding, any foreign government,

international organization, or their wholly-owned instrumentality employing workers in the Philippines or

employing Filipinos outside of the Philippines may enter into an agreement with the Philippine Government

for the inclusion of such employees in the SSS except those already covered by their respective civil

service retirement systems: Provided, further, That the terms of such agreement shall conform with the

provisions of this Act on coverage and amount of payment of contributions and benefits: Provided, finally,That the provisions of this Act shall be supplementary to any such agreement. (As amended by Section 1,

R.A. 3839; Section 3, RA 4857; and Section 5, P.D. No. 735, S-1975)

8. Such other services performed by temporary employees who may be excluded by regulation of the

Commission. Employees of bona fide independent contractors shall not be deemed employees of the

employer engaging the services of said contractors.

(As amended by Section 5, P.D. No. 735, S-1975)

(k) Beneficiaries - The dependent spouse until he remarries and dependent children, who shall be the

primary beneficiaries. In their absence, the dependent parents and, subject to the restrictions imposed ondependent children, the legitimate descendents and illegitimate children who shall be the secondary

beneficiaries. In the absence of any of the foregoing, any other person designated by the covered

employee as secondary beneficiary. (As amended by Section 4, R.A. 2658; Section 3, R.A. 4857; Section

1, P.D. No. 177, S-1973; and Section 5, P.D. No. 735, S-1975)

(l) Contingency - The retirement, death, permanent disability, injury or sickness of the covered employee.


(m) Average monthly salary credit - The result obtained by dividing the sum of the monthly salary credits in

the sixty-month period immediately preceding the semester of contingency by the number of months of

coverage in the same period, or the result obtained by dividing the sum of all the monthly salary credits

paid prior to the semester of contingency by the number of calendar months of coverage in the same



period, whichever is greater: except where the month of contingency falls within eighteen months from the

month of coverage, in which case it is the result obtained by dividing the sum of all monthly salary credits

paid prior to the month of contingency by the total number of calendar months of coverage in the same

period: Provided, That the injury or sickness which caused the disability shall be deemed as the permanent

disability for the purpose of computing the average monthly salary credit. (As amended by Section 3, R.A.

4857 and Section 5, P.D. No. 735, S-1975)

(n) Average daily salary credit - The result obtained by dividing the sum of the six highest monthly salary

credits in the twelve-month period immediately preceding the semester of contingency by one hundred

eighty. (As amended by Section 3, R.A. 4857; Section 5, P.D. No. 735, S-1975; and Section 3, E.O. No.

102, S-1986)

(o) Semester - A period of two consecutive quarters ending in the quarter of contingency. (As amended by

Section 5, P.D. No. 735, S-1975)

(p) Quarter - A period of three consecutive calendar months ending on the last day of March, June,September and December. (As amended by Section 3, R.A. 4857)

(q) Replacement ratio - The sum of twenty per cent and the quotient obtained by dividing three hundred by

the sum of three hundred forty and the average monthly salary credit. (As amended by Section 2, P.D. No.

1636, S-1979)

(r) Credited years of service - For a member covered prior to January 1975, nineteen hundred seventy five

minus the calendar year of coverage plus the number of calendar years in which six or more contributions

have been paid from January 1975 up to the calendar year containing the semester prior to the

contingency. For a member covered in or after January 1975, the number of calendar years in which six ormore contributions have been paid from the year of coverage up to the calendar year containing the

semester prior to the contingency. (As amended by Section 2, P.D. No. 1636, S-1979)

C. Scope of the System

Section 9. Compulsory coverage. - (a) Coverage in the SSS shall be compulsory upon all employees not

over sixty years of age and their employers: Provided, That any benefit already earned by employees

under private benefit plans existing at the time of the approval of this Act shall not be discontinued,

reduced or otherwise impaired: Provided, further, That private plans which are existing and in force at the

time of compulsory coverage shall be integrated with the plan of the SSS in such a way where theemployer’s contribution to his private plan is more that that required of him in this Act he shall pay to the

SSS only the contribution required of him and he shall continue his contribution to such private plan less

his contribution to the SSS so that the employer’s total contribution to his private benefit plan and to the

Social Security System shall be the same as his contribution to his private benefit plan before the

compulsory coverage: Provided, further, That any changes, adjustments, modifications, eliminations or

improvements in the benefits to be available under the remaining private plan, which may be necessary to

adopt by reason of the reduced contribution thereto as a result of the integration, shall be subject to

agreements between the employers and employees concerned: Provided, further, That the private benefit

plan which the employer shall continue for his employees shall remain under the employer’s management

and control unless there is an existing agreement to the contrary: Provided, finally, That nothing in this Act

shall be construed as a limitation on the right of employers and employees to agree on and adopt benefits



which are over and above those provided under this Act. (As amended by Section 5, R.A. 1972; Section 5,

R.A. 2658; and Section 2, R.A. 3839)

(b) Filipinos recruited in the Philippines by foreign-based employers for employment abroad may be

covered by the SSS on a voluntary basis. (As amended by Section 2, P.D. No. 177, S-1973 and Section 6,

P.D. No. 735, S-1975)

Section 9-A. Compulsory Coverage of the Self-employed. - Coverage in the SSS shall also be

compulsory upon all self-employed persons earning P1,800 or more per annum: Provided, That the

effectivity of coverage of certain groups of self-employed shall be determined by the Commission under

such rules and regulations it may prescribe: Provided, further, That the effectivity of the coverage of the

following self-employed persons shall be in accordance with section ten (b) hereof:

1. All self-employed professionals licensed by the Professional Regulations Commission or those licensed

to practice law.

2. Partners and single proprietors of businesses.

3. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the

definition of the term “employee” in section eight (d) of this Act.

4. Professionals athletes, coaches, trainers licensed by the Games and Amusement Board as well as

jockeys and trainers licensed by the Philippine Racing Commission.

Unless otherwise specified herein, all provisions of the SSS Law applicable to covered employees shall

also be applicable to the covered self-employed persons. (As amended by Section 3, P.D. No. 1636, S-1979)

Section 10. Effective Date of Coverage. - Compulsory coverage of the employer shall take effect on the

first day of his operation and that of the employee on the day of his employment: Provided, That the

compulsory coverage of self-employed persons referred to in paragraphs (1) to (4) shall take effect on the

first day of January following the calendar year they started the practice of their profession or business

operations but in no case earlier than January 1, 1980. (As amended by Section 6, R.A. 1972; Section 6,

R.A. 2658; and Section 4, P.D. No. 1636, S-1979)

Section 11. Effect of Separation from Employment. - When an employee under compulsory coverage isseparated from employment, his employer’s contribution on his account and his obligation to pay

contributions arising from that employment shall cease at the end of the month of separation, but said

employee shall be credited with all contributions paid on his behalf and entitled to benefits according to the

provisions of this Act. He may, however, continue to pay the total contributions to maintain his right to full

benefit. (As amended by Section 4, R.A. 4857 and Section 7, P.D. No. 735, S-1975)

Section 11-A. Effect of Interruption of Business or Professional Income. - If the self-employed

realizes no net professional or business income in any calendar year, he shall not be required to pay

contributions for the succeeding year. He may, however, be allowed to continue paying contributions under

the same rules and regulations applicable to separated covered employees. (As amended by Section 5,

P.D. No. 1636, S-1979)



D. Benefits

Section 12. Monthly Pension. - (a) The monthly pension shall be the sum of the following:

The average monthly salary credit multiplied by the replacement ratio; and

One and a half per cent of the average monthly salary credit for each credited year of service in excess often years.

(b) The monthly pension shall in no case be less than two hundred pesos nor paid in an aggregate amount

of less than sixty times the monthly pension except to a secondary beneficiary: Provided, That the monthly

pension of surviving pensioners as of December 31, 1986 shall be increased by twenty per cent. (As

amended by Section 7, R.A. 1792; Section 7, R.A. 2658; Section 5, R.A. 4857; Section 6, P.D. No. 24, S-

1972; Section 3, P.D. No. 177, S-1973; Section 8, P.D. No. 735, S-1975; Section 2, P.D. No. 1202, S-

1977; Section 6, P.D. No. 1636, S-1979; Section 1, E.O. No. 28, S-1986; and Section 4, E.O. No. 102, S-

1986)

Section 12-A. Dependents’ Pension. - The dependents’ pension shall be equivalent to ten per cent of the

monthly pension for each dependent child but not exceeding five, beginning with the youngest and without

substitution. (As amended by Section 3, P.D. No. 1202, S-1977)

Section 12-B. Retirement Benefits. - (a) A covered employee who has paid at least one hundred twenty

monthly contributions prior to the semester of retirement; and who (1) has reached the age of sixty years

and is not receiving monthly compensation of at least three hundred pesos or (2) has reached the age of

sixty-five years, shall be entitled for as long as he lives to the monthly pension: Provided, That his

dependents born before his retirement of a marriage subsisting when he was fifty-seven years old shall be

entitled to the dependents’ pension. (As amended by Section 4, P.D. No. 1202, S-1977)

(b) A covered member who is sixty years old at retirement and who does not qualify for pension benefits

under paragraph (a) above, shall be entitled to a lump sum benefit equal to the total contributions paid by

him and on his behalf: Provided, That he is separated from employment and is not continuing payment of

contributions to the SSS on his own.

(c) The monthly pension shall be reduced upon the re-employment of a retired employee who is less than

sixty-five years old by an amount equivalent to one-half his earnings over three hundred pesos. He shall

again be subject to section eighteen and his employer to section nineteen of this Act. (As amended by

Section 7, R.A. 1792; Section 7, R.A. 2658; Section 6, P.D. No. 24, S-1972; Section 3, P.D. No. 177, S-1973; Section 8, P.D. No. 735; S-1975; Section 4, P.D. No. 1202, S-1977; and Section 7, P.D. No. 1636,

S-1979)

(d) Upon the death of the retired employee pensioner, his primary beneficiaries as of the date of his

retirement shall be entitled to eighty per cent of the monthly pension and his dependents to the

dependents’ pension: Provided, That if he has no primary beneficiaries and he dies within sixty months

from the start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit

equivalent to the bigger of (1) twenty times the monthly pension or (2) the difference of sixty times the

monthly pension and the total monthly pensions paid by the SSS excluding the dependents’ pension. (As

amended by Section 7, P.D. No. 1636, S-1979 and E.O. No. 102, S-1986)

Section 13. Death Benefits. - Upon the covered employee’s death, his primary beneficiaries shall be

entitled to the monthly pension and his dependents to the dependents’ pension: Provided, That he has

paid at least thirty-six monthly contributions prior to the semester of death: Provided, further, That if the



foregoing condition is not satisfied his primary beneficiaries shall be entitled to a lump sum benefit

equivalent to thirty-five times the monthly pension: Provided, further, That if he has no primary

beneficiaries, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to twenty times

the monthly pension: Provided, however, That the minimum death benefit shall not be less than the total

contributions paid by him and his employer on his behalf nor less than one thousand pesos: Provided,

finally, That the beneficiaries of the covered employee who dies without having paid at least three monthlycontributions shall be entitled to the minimum benefit. (As amended by Section 5, P.D. No. 1202, S-1977

and Section 8, P.D. No. 1636, S-1979)

Section 13-A. Permanent disability benefits. - (a) Upon the covered employee’s permanent total

disability, if such disability occurs after he had paid at least thirty-six monthly contributions prior to the

semester of disability, he shall be entitled to the monthly pension and his dependents to the dependents’

Pension: Provided, That if the disability occurs before he has paid thirty-six monthly contributions prior to

the semester of disability, he shall be entitled to a lump sum benefit equivalent to thirty-five times the

monthly pension: Provided, further, That the minimum disability benefit shall not be less than the total

contributions paid by him and his employer on his behalf nor less than one thousand pesos: Provided,

further, That a covered employee who becomes permanently totally disabled without having paid at leastthree monthly contributions shall be entitled to the minimum benefit: Provided, finally, That a member who

(1) received a lump sum benefit and (2) is re-employed not earlier than one year from date of his disability

shall again be subject to compulsory coverage and considered a new member. (As amended by Section 6,

P.D. No. 1202, S-1977)

(b) The monthly pension shall be reduced upon his re-employment by an amount equivalent to one-half of

his earnings over three hundred pesos. The monthly pension and dependents’ pension shall be suspended

upon his recovery from the permanent total disability, or his failure to present himself for examination at

least once a year upon notice by the SSS. (As amended by Section 6, P.D. No. 1202, S-1977 and Section

9, P.D. No. 1636, S-1979)

(c) Upon the death of the permanent total disability pensioner, his primary beneficiaries as of the date ofdisability shall be entitled to eighty per cent of the monthly pension and his dependents to the dependents’

pension: Provided, That if he has no primary beneficiaries and he dies within sixty months from the start of

his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the

bigger of (1) twenty times the monthly pension or (2) the difference of sixty times the monthly pension and

the total monthly pensions paid by the SSS excluding the dependents’ pension. (As amended by Section 9,

P.D. No. 1636, S-1979 and Section 6, E.O. No. 102, S-1986)

(d) The following disabilities shall be deemed permanent total:

1. Complete loss of sight of both eyes;

2. Loss of two limbs at or above the ankle or wrists;

3. Permanent complete paralysis of two limbs;4. Brain injury resulting to incurable imbecility or insanity; and,

5. Such cases as determined and approved by the SSS.


(e) If the disability is permanent partial, and such disability occurs before thirty-six monthly contributions

have been paid prior to the semester of disability, the benefit shall be such percentage of the lump sum

benefit described in the preceding paragraph with due regard to the degree of disability as the Commission

may determine. (As amended by Section 9, P.D. No. 1636, S-1979)

(f) If the disability is permanent partial and such disability occurs after thirty-six monthly contributions have

been paid prior to the semester of disability, the benefit shall be the monthly pension for permanent total

disability payable not longer than the period designated in the following schedule:

Complete and permanent Number of

loss of use of Months



One thumb 10

One index finger 8

One middle finger 6

One right finger 5

One little finger 3

One big toe 6One hand 39

One arm 50

One foot 31

One leg 46

One ear 10

Both ears 20

Hearing of one ear 10

Hearing of both ears 20

Sight of one eye 25

(As amended by Section 10, P.D. No. 735, S-1975 and Section 9, P.D. No. 1636, S-1979)(g) The percentage degree of disability, which is equivalent to the ratio that the designated number of

months of compensability bears to seventy-five, rounded to the next higher integer, shall not be additive for

distinct, separate and unrelated permanent partial disabilities, but shall be additive for deteriorating and

related permanent partial disabilities, to a maximum of one hundred per cent, in which case the employee

shall be deemed as permanently totally disabled. (As amended by Section 9, P.D. No. 1636, S-1979)

Section 13-B. Funeral Benefit. - A funeral grant of two thousand pesos shall be paid to help defray the

cost of funeral expenses upon the death of a covered member, permanently totally disabled employee or

retiree. (As amended by Section 11, P.D. No. 735, S-1975; Section 2, E.O. No. 28, S-1986; and Section 7,

E.O. No. 102, S-1986)

Section 14. Sickness Benefit. - (a) A covered employee who has paid at least three monthly contributionsin the twelve-month period immediately preceding the semester of sickness and is confined for more than

three days in a hospital or elsewhere with the Commission’s approval, shall, for each day of compensable

confinement or fraction thereof, be paid by his employer, or the SSS, if such person is unemployed, an

allowance equivalent to ninety per cent of his average daily salary credit, subject to the following

conditions: (As amended by Section 3, E.O. No. 28, S-1986)

(1) In no case shall the total amount of such daily allowance be less than seven pesos and fifty centavos

nor exceed seventy-five pesos nor paid longer than one hundred twenty days in one calendar year; nor

shall any unused portion of the one hundred twenty days of sickness benefit granted under this section be

carried forward and added to the total number of compensable days allowable in the subsequent year; (As

amended by Section 3, E.O. No. 28, S-1986 and Section 8, E.O. No. 102, S-1986)(2) No employee shall be paid any sickness benefit for more than two hundred forty days on account of the

same confinement; and

(3) The employee shall notify his employer of the fact of his sickness or injury within five calendar days

after the start of his confinement unless such confinement is in a hospital or the employee became sick or

was injured while working or within the premises of the employer in which case notification to the employer

is not necessary: Provided, That if the member is unemployed he shall directly notify the SSS of his

confinement within five calendar days after the start thereof unless such confinement is in a hospital in

which case notification is also not necessary: Provided, further, That in cases where notification is

necessary, the confinement shall be deemed to have started not earlier than the fifth day immediately

preceding the date of notification. (As amended by Section 9, R.A. 2658; Section 7, R.A. 4857; Section 8,

P.D. No. 24, S-1972; Section 12, P.D. No. 735, S-1975; and Section 10, P.D. No. 1636, S-1979)



(b) The compensable confinement shall begin on the first day of sickness, and the payment of such

allowances shall be promptly made by the employer every regular payday or on the fifteenth and last day

of each month, and similarly in the case of direct payment by the SSS, for as long as such allowances are

due and payable: Provided, That such allowance shall begin only after all sick leaves of absence with full

pay to the credit of the employee shall have been exhausted. (As amended by Section 9, R.A. 2658;

Section 7, R.A. 4857; Section 8, P.D. No. 24, S-1972; Section 5, P.D. No. 177, S-1973; and Section 14,P.D. No. 735, S-1975)

(c) One hundred per cent of the daily benefits provided in the preceding paragraph shall be reimbursed by

the SSS to said employer upon receipt of satisfactory proof of such payment and legality thereof: Provided,

That the employer has notified the SSS of the confinement within five calendar days after receipt of the

notification from the employee: Provided, further, That if the notification to the SSS is made by the

employer beyond five calendar days after receipt of the notification from the employee, said employer shall

be reimbursed only for each day of confinement starting from the tenth calendar day immediately

preceding the date of notification to the SSS: Provided, finally, That the SSS shall reimburse the employer

or pay the unemployed member only for confinement within the one year period immediately preceding the

date the claim for benefit or reimbursement is received by the SSS, except confinement in a hospital inwhich case the claim for benefit or reimbursement must be filed within one year from the last day of

confinement. (As amended by Section 9, R.A. 2658; Section 1, R.A. 4482; Section 7, R.A. 4857; and

Section 8, P.D. No. 24, S-1972)

(d) Where the employee has given the required notification but the employer fails to notify the SSS of the

confinement or to file the claim for reimbursement within the period prescribed in this section resulting in

the reduction of the benefit or denial of the claim such employer shall have no right to recover the

corresponding daily allowance he advanced to the employee as required in this section. (As amended by

Section 8, P.D. No. 24, S-1972 and Section 12, P.D. No. 735, S-1972)

(e) The claim of reimbursement shall be adjudicated by the SSS within a period of two months from receipt

thereof; Provided, That should no payment be received by the employer within one month after the periodprescribed herein for adjudication the reimbursement shall thereafter earn simple interest of one per cent

per month until paid. (As amended by Section 8, P.D. No. 24, S-1972)

(f) The provisions regarding the notification required of the covered employee and the employer as well as

the period within which the claim for benefit or reimbursement may be filed shall apply to all claims filed

with the SSS beginning January 1, 1973. (As amended by Section 8, P.D. No. 24, S-1972)

Section 14-A. Maternity Leave Benefit. - A covered female employee who has paid at least three

monthly maternity contributions in the twelve-month period preceding the semester of her childbirth,

abortion, or miscarriage and who is currently employed shall be paid a daily maternity benefit equivalent to

one hundred per cent of her present basic salary, allowances and other benefits or the cash equivalents of

such benefits for sixty days subject to the following conditions:(a) That the employee shall have notified her employer of her pregnancy and the probable date of her

childbirth which notice shall be transmitted to the SSS in accordance with the rules and regulations it may

provide;

(b) That the payment shall be advanced by the employer in two equal installments within thirty days from

the filing of the maternity leave application;

(c) That in case of caesarian delivery, the employees shall be paid the daily maternity benefit for seventy-

eight days;

(d) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by

this Act for the same compensable period of sixty days for the same childbirth, abortion, or miscarriage;

(e) That the maternity benefits provided under this section shall be paid only for the first four deliveries

after March 13, 1973;



(f) That the SSS shall immediately reimburse the employer of one hundred per cent of the amount of

maternity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such

payment and legality thereof; and

(g) That if an employee should give birth or suffer abortion or miscarriage without the required contributions

having been remitted for her by her employer to the SSS, or without the latter having been previously

notified by the employer of time of the pregnancy, the employer shall pay to the SSS damages equivalentto the benefits which said employee would otherwise have been entitled to, and the SSS shall in turn pay

such amount to the employee concerned. (As amended by Section 7, P.D. No. 1202, S-1977; Section 11,

P.D. No. 1636, S-1979; and R.A. 7322)

Section 15. Non-transferability of Benefits. - The SSS shall pay the benefits provided for in this Act to

such persons as may be entitled thereto in accordance with the provisions of this Act: Provided, That the

beneficiary who is a national of a foreign country which does not extend benefits to a Filipino beneficiary

residing in the Philippines, or which is not recognized by the Philippines, shall not be entitled to receive any

benefit under this Act: Provided, further, That notwithstanding the foregoing, where the best interest of the

SSS will be served, the Commission may direct payments without regard to nationality or country of

residence: Provided, further, That if the recipient is a minor or a person incapable of administering his ownaffairs, the Commission shall appoint a representative under such terms and conditions as it may deem

proper: Provided, further, That such appointment shall not be necessary in case the recipient is under the

custody of or living with the parents or spouse of the employee in which case the benefits shall be paid to

such parents or spouse, as representative payee of the recipient. Such benefits are not transferrable and

no power of attorney or other document executed by those entitled thereto, in favor of any agent, attorney,

or any other person for the collection thereof on their behalf shall be recognized, except when they are

physically unable to collect personally such benefits: Provided, further, That in case of death benefits, if no

beneficiary qualifies under this Act, said benefits shall be paid to the legal heirs in accordance with the law

of succession: Provided, finally, That notwithstanding any law to the contrary, the payment of benefits

under this Act shall bar the recovery of similar benefits under Title II of Book IV of the Labor Code of thePhilippines, as amended, during the period of such payment for the same contingency, and conversely.

(As amended by Section 10, R.A. 2658; Section 4, R.A. 3839; Section 8, R.A. 4857; Section 8-A, P.D. No.

24, S-1972; and Section 13, P.D. No. 735, S-1975)

Section 16. Exemption from Tax, Legal Process and Lien. - All laws to the contrary notwithstanding the

SSS and all its assets and properties, all contributions collected and all accruals thereto and income or

investment earnings therefrom as well as all supplies, equipment, papers or documents which may be

required in connection with the operation or execution of this Act shall be exempt from any tax,

assessment, fee, charge, or customs or import duty; and all benefit payments made by the SSS shall

likewise be exempt from all kinds of taxes, fees or charges, and shall not be liable to attachments,

garnishments, levy or seizure by or under any legal or equitable process whatsoever, either before or afterreceipt by the person or persons entitled thereto, except to pay any debt of the covered employee to the

SSS. No tax measure hereafter enacted shall apply to the SSS, unless it expressly revokes the declared

policy of the State in section two hereof granting tax-exemption to the SSS. Any tax assessment against,

and still unpaid by the SSS shall be null and void. (As amended by Section 9, P.D. No. 24, S-1972 and

Section 14, P.D. No. 735, S-1975)

Section 17. Fee of Agents, Attorneys, etc. - No agent, attorney or other person in charge of the

preparation, filing or pursuing any claim for benefit under this Act shall demand or charge for his services

any fee, and any stipulation to the contrary shall be null and void. The retention or deduction of any amount

from any benefit granted under this Act for the payment of fees for such services is prohibited: Provided,

however, That any member of the Philippine Bar who appears as counsel in any case heard by the Social

Security Commission shall be entitled to attorney’s fees not exceeding ten per cent of the benefits awarded

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by the Commission, which fees shall not be payable before the actual payment of the benefits, and any

stipulation to the contrary shall be null and void.

Any violation of the provisions of this Section shall be punished by a fine of not less than five hundred

pesos nor more than five thousand pesos, or imprisonment for not less than six months nor more than one

year, or both, at the discretion of the court. (As amended by Section 4, P.D. No. 347, S-1973 and Section

8, P.D. No. 1202, S-1977)E. Sources of Funds - Employment

Records and Reports

Section 18. Employee’s Contribution. - (a) Beginning as of the last day of the calendar month when an

employee’s compulsory coverage takes effect and every month thereafter during his employment, the

employer shall deduct and withhold from such employee’s monthly salary, wage, compensation or

earnings, the employee’s contribution in an amount corresponding to his salary, wage, compensation or

earnings during the month in accordance with the following schedule effective on January 1, 1987:

Salary Monthly Monthly Contribution

Bracket Range of Salary

Number Compensation Credit Employer Employee Total I P1 – 149.99 P125.00 P6.40 P4.10 P10.50

II 150 – 199.99 175.00 9.00 5.70 14.70

III 200 – 249.99 225.00 11.40 7.50 18.90

IV 250 – 349.99 300.00 15.20 10.00 25.20

V 350 – 499.99 425.00 21.60 14.10 35.70

VI 500 – 699.99 600.00 30.40 20.00 50.40

VII 700 – 899.99 800.00 40.50 26.70 67.20

VIII 900 – 1099.99 1,000.00 50.70 33.30 84.00

IX 1100 – 1399.99 1,250.00 63.30 41.70 105.00

X 1400 – 1749.99 1,500.00 76.00 50.00 126.00XI 1750 – 2249.99 2,000.00 101.30 66.70 168.00

XII 2250 – 2749.99 2,500.00 126.70 83.30 210.00

XIII 2750 – OVER 3,000.00 152.00 100.00 252.00

The tabulated schedule for the monthly contribution of the self-employed and voluntary members effective

January 1, 1987 shall be as follows:

Salary Monthly

Bracket Salary Monthly

Number Range of Compensation Credit Contribution

I P1 – 149.99 P125.00 P10.00

II 150 – 199.99 175.00 14.00III 200 – 249.99 225.00 18.00

IV 250 – 349.99 300.00 24.00

V 350 – 499.99 425.00 34.00

VI 500 – 699.99 600.00 48.00

VII 700 – 899.99 800.00 64.00

VIII 900 – 1,099.99 1,000.00 80.00

IX 1,100 – 1,399.99 1,250.00 100.00

X 1,400 – 1,749.99 1,500.00 120.00

XI 1,750 – 2,249.99 2,000.00 160.00

XII 2,250 – 2,749.99 2,500.00 200.00

XIII 2,750 – OVER 3,000.00 240.00



The maximum covered earnings or compensation of all SSS members shall be limited to three thousand

pesos per month as provided in the foregoing schedules unless otherwise provided by the Social Security

Commission through rules and regulations taking into consideration actual calculations and rate of

benefits. (As amended by Section 10, R.A. 1792; Section 11, R.A. 2658; Section 10, P.D. No. 24, S-1972;


(b) Every employer shall issue a receipt for all contributions deducted from the employee’s compensationor shall indicate such deductions on the employee’s pay envelope s. (As amended by Section 12, P.D. No.

1636, S-1979)

Section 19. Employer’s Contributions. - (a) Beginning as of the last day of the month when an

employee’s compulsory coverage takes effect and every month thereafter during his employment, his

employer shall pay, with respect to such covered employee, the employer’s contribution in accordance with

the schedule indicated in section eighteen of this Act. Notwithstanding any contract to the contrary, an

employer shall not deduct, directly or indirectly, from the compensation of his employees covered by the

SSS or otherwise recover from them the employer’s contributions with respect to such employees.

(b) The remittance of such contributions by the employer shall be supported by a quarterly collection list to

be submitted to the SSS at the end of each calendar quarter indicating the correct ID number of theemployer, the correct names and SS numbers of the employees and the total contributions paid for their

account during the quarter. (As amended by Section 13, P.D. No. 1636, S-1979)

Section 19-A. Contributions of the Self-employed. - The contributions to the SSS of the self-employed

shall be determined in accordance with section eighteen of this Act: Provided, That the average monthly

net earnings declared by the self-employed at the time of his registration with the SSS shall be considered

as his monthly compensation and he shall pay both the employer and employee contributions.

Net earnings as understood under this section shall be the net income from his business or profession as

reflected in the income tax return for the immediately preceding year, excluding rental income, dividend,

interest investments and the like or all types of incomes which are not derived from his business registered

with the SSS or from the practice of his profession.The average monthly net earnings declared by the self-employed member at the time of his registration

shall remain the basis of his monthly salary credit, unless he makes, at the start of the year, another

declaration of his average monthly net earnings based on his income tax returns for the immediately

preceding year, in which case such latest declaration becomes the new basis of his monthly salary credit.


Section 20. Government Contribution. - As the contribution of the Government to the operation of the

System, the Congress shall annually appropriate out of any funds in the National Treasury not otherwise

appropriated, the necessary sum or sums to meet the estimated expenses of the System for each ensuing

year. In addition to this contribution, the Congress shall appropriate from time to time such sum or sums as

may be needed to assure the maintenance of an adequate working balance of the funds of the System asdisclosed by suitable periodic actuarial studies to be made of the operations of the System.

Section 21. Government Guarantee. - The benefits prescribed in this Act shall not be diminished and to

guarantee said benefits the Government of the Republic of the Philippines accepts general responsibility

for the solvency of the System. (As amended by Section 13, R.A. 1792)

Section 22. Remittance of Contributions. - (a) The contribution imposed in the preceding section shall

be remitted to the SSS within the first seven days of each calendar month following the month for which

they are applicable or within such time as the Commission may prescribe. Every employer required to

deduct and to remit such contributions shall be liable for their payment and if any contribution is not paid to

the SSS as herein prescribed, he shall pay besides the contribution a penalty thereon of three per cent per

month from the date the contribution falls due until paid. If deemed expedient and advisable by the

Commission, the collection and remittance of contributions shall be made quarterly or semi-annually in

advance, the contributions payable by the employees to be advanced by their respective employers:

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Provided, That upon separation of an employee, any contribution so paid in advance but not due shall be

credited or refunded to his employer. (As amended by Section 12, P.D. No. 24, S-1972)

(b) The contributions payable under this Act in cases where an employer refuses or neglects to pay the

same shall be collected by the SSS in the same manner as taxes are made collectible under the National

Internal Revenue Code, as amended. Failure or refusal of the employer to pay or remit the contributions

herein prescribed shall not prejudice the right of the covered employee to the benefits of the coverage.The right to institute the necessary action against the employer may be commenced within twenty years

from the time the delinquency is known or the assessment is made by the SSS, or from the time the benefit

accrues, as the case may be. (As amended by Section 15, P.D. No. 1636, S-1979)

(c) Should any person, natural or juridical, default in any payment of contributions, the Commission may

also collect the same in either of the following ways:

(1) By an action in court, which shall hear and dispose of the case in preference to any other civil action, or

(2) By issuing a warrant to the Sheriff of any province or city commanding him to levy upon and sell any

real and personal property of the debtor. The Sheriff’s sale by virtue of said warrant shall be governed by

the same procedure prescribed for executions against property upon judgments by a court of record.

(d) The last complete record of monthly contributions paid by the employer or the average of the monthlycontributions paid during the past three years as of the date of filing of the action for collection shall be

presumed to be the monthly contributions payable by and due from the employer to the SSS for each of

the unpaid month, unless contradicted and overcome by other evidence: Provided, That the SSS shall not

be barred from determining and collecting the true and correct contributions due the SSS even after full

payment pursuant to this paragraph, nor shall the employer be relieved of his liability under section twenty-

eight of this Act. (As amended by Section 12, P.D. No. 24, S-1972 and Section 11, P.D. No. 1202, S-1977)

(e) For purposes of this Section, any employer who is delinquent or has not remitted all the monthly

contributions due and payable may within six months from the issuance of this Executive Order remit said

contributions to the SSS and submit the corresponding collection lists herefore without incurring the

prescribed three per cent penalty. In case the employer fails to remit to the SSS the said contributionswithin the six months grace period, the penalty of three per cent shall be imposed from the time the

contributions first became due as provided in paragraph (a) of this section. (As amended by Section 12,

P.D. No. 24, S-1972; Section 6, P.D. No. 177, S-1973; and Section 4, E.O. No. 28, S-1986)

Section 22-A. Remittance of Contributions of Self-employed. - Self-employed members shall remit

their monthly contributions quarterly on such dates and schedules, as the Commission may specify

through rules and regulations.

The penalty of three per cent per month for late payments provided for in paragraph (a) of section twenty-

two of this Act and the manner of collection of contributions specified in paragraphs (b), (c) and (d) of

section twenty-two of this Act are also applicable to the collection of penalties and contributions of the

covered self-employed. (As amended by Section 16, P.D. No. 1636, S-1979)Section 23. Method of Collection and Payment. - The SSS shall require a complete and proper

collection and payment of contributions and proper identification of the employer and the employee.

Payment may be made in cash, checks, stamp, coupons, tickets, or other reasonable devices that the

Commission may adopt. (As amended by Section 15, P.D. No. 735, S-1975)

Section 24. Employment Records and Reports. - (a) Each employer shall immediately report to the SSS

the names, ages, civil status, occupations, salaries and dependents of all his employees who are subject

to compulsory coverage: Provided, That if an employee subject to compulsory coverage should die or

become sick or disabled or reach the age of sixty without the SSS having previously received any report or

written communication about him from his employer or a contribution paid in his name by his employer, the

said employer shall pay to the SSS the damages equivalent to the benefits to which said employee would

have been entitled had his name been reported on time by the employer to the SSS, except that in case of

pension benefits, the employer shall be liable to pay the SSS damages equivalent to five year’s monthly



pension; including dependents’ pension: Provided, further, That if the contingency occurs within thirty days

from the date of employment, the employer shall be relieved of his liability for damages. (As amended by

Section 15, R.A. 1792; Section 9, R.A. 4857; Section 13, P.D. No. 24, S-1972; Section 16, P.D. No. 735,

S-1975; and Section 12, P.D. No. 1202, S-1977)

(b) Should the employer misrepresent the true date of employment of his employees or remit to the SSS

contributions which are less than those required in this Act, resulting in a reduction of benefits, theemployer shall pay to the SSS damages to the extent of such reduction. (As amended by Section 13, P.D.

No. 24, S-1972; Section 16, P.D. No. 735, S-1975; and Section 17, P.D. No. 1636, S-1979)

In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof, the employer shall also

be liable for the payment of the corresponding unremitted contributions and penalties thereon. (As

amended by Section 17, P.D. No. 1636, S-1979)

(c) The records and reports duly accomplished and submitted to the SSS by the employee or the

employer, as the case may be, shall be kept confidential by the SSS except in compliance with a subpoena

duces tecum issued by the Courts, shall not be divulged without the consent of the Administrator or any

official of the SSS duly authorized by him, shall be presumed correct as to the data and other matters

stated therein, unless the necessary corrections to such records and reports have been properly made bythe parties concerned before the right to the benefit being claimed accrues, and shall be made the basis

for the adjudication of the claim. If as a result of such adjudication the SSS in good faith pays a monthly

pension to a beneficiary who is inferior in right to another beneficiary or with whom another beneficiary is

entitled to share, such payments shall discharge the SSS from liability, unless and until such other

beneficiary notifies the SSS of his claim prior to the payments. (As amended by Section 13, P.D. No. 24, S-

1972 and Section 16, P.D. No. 735, S-1975)

(d) Every employer shall keep true and accurate work records for such period and containing such

information as the Commission may prescribe, in addition to an “Annual Register of New and Separated

Employees” which shall be secured from the SSS wherein the employer shall enter on the first day of

employment or on the effective date of separation, the names of the persons employed or separated fromemployment, their SSS numbers, and such other data that the Commission may require and said annual

register shall be submitted to the SSS in the month of January of each year. Such records shall be open

for inspection by the SSS or its authorized representatives quarterly or as often as the SSS may require.

The SSS may also require each employer to submit, with respect to the persons in his employ, reports

needed for the effective administration of this Act. (As amended by Section 13, P.D. No. 24, S-1972)

(e) Effective July 1, 1973, each employer shall require as a condition to employment, the presentation of a

registration number secured by the prospective employee from the SSS in accordance with such

procedure as the SSS may adopt: Provided, That in case of employees who have earlier been assigned

registration numbers by virtue of a previous employment, such numbers originally assigned to them should

be used for purposes of this section: Provided, further, That the issuance of such registration numbers bythe SSS shall not exempt the employer from complying with the provisions of paragraph (a) of this section.


(f) Notwithstanding any law to the contrary, microfilm copies of original SSS records and reports, duly

certified by the official custodian thereof, shall have evidentiary value as the originals and be admissible as

evidence in all legal proceedings. (As amended by Section 16, P.D. No. 735, S-1975)

Section 24-A. Report and Registration of the Self-employed. - Each covered self-employed person

shall, within thirty days from the effective date of coverage, report to the SSS his name, age, civil status,

and occupation, average monthly net income and his dependents: Provided, That if after said period of

thirty days, he should die or become sick, or disabled or reach the age of sixty without the SSS having

previously received such report, the SSS shall not pay him the corresponding benefit. (As amended by

Section 18, P.D. No. 1636, S-1979)

F. Funds of the System



Section 25. Deposit and Disbursements. - All moneys paid to or collected by the SSS every year under

this Act, and all accruals thereto shall be deposited, administered and disbursed in the same manner and

under the same conditions and requirements as provided by law for other public special funds: Provided,

That not more than twelve per cent of the total yearly contributions plus three per cent of other revenues

shall be disbursed for salaries and wages, purchases of office equipment and materials, operational

expenses and the maintenance of regional offices of the SSS: Provided, further, That if the expenses inany year are less than the maximum amount permissible, the difference shall not be availed of as

additional expenses in the following years. (As amended by Section 16, R.A. 2658; Section 5, R.A. 3839;

Section 10, R.A. 4857; Section 13-A, P.D. No. 24, S-1972; Section 17, P.D. No. 735, S-1975; and Section

10, E.O. No. 102, S-1986)

Section 26. Investment of Reserve Funds. - All revenues of the SSS that are not needed to meet the

current administrative and operational expenses incidental to the carrying out of this Act shall be

accumulated in a fund to be known as the ‘Reserve Fund’. Such portions of the Reserve Fund as are not

needed to meet the current benefit obligations thereof shall be invested to earn an average annual income

of at least nine per cent and shall be known as the ‘Investment Reserve Fund’ which shall be investe d in

any or all of the following: (As amended by Section 14, P.D. No. 24, S-1972; Section 19, P.D. No. 1636, S-1979; and Section 11, E.O. No. 102, S-1986)

(a) In interest-bearing bonds or securities of the Government of the Philippines, or bonds or securities for

the payment of the interest and principal to which the faith and credit of the Republic of the Philippines is

pledged.

(b) In interest-bearing deposits or securities in any domestic bank doing business in the Philippines:

Provided, That such deposits shall not exceed at any time the unimpaired capital and surplus or total

private deposits of the depository bank, whichever is smaller: Provided, further, That said bank shall first

have been designated as the depository for this purpose by the Monetary Board of the Bangko Sentral ng

Pilipinas: Provided, finally, That such investment in deposits or securities shall be equitably distributed to

all designated banks. (As amended by Section 14, P.D. No. 24, S-1972)(c) In loans or interest-bearing advances to the National Government for the construction of permanent toll

bridges, toll roads or government office buildings in accordance with actuarial considerations and the

conditions prescribed by law in such cases: Provided, That the tolls shall be collected by the SSS for a

reasonable fee. (As amended by Section 14, P.D. No. 24, S-1972)

(d) In direct housing loans to covered employees and group housing projects giving priority to the low-

income groups, up to a maximum of ninety per cent of the appraised value of the properties to be

mortgaged by the borrowers and in loans for the construction and the maintenance of hospitals and

institutions for the sick, aged and infirmed members and their families, referred to in section 4 (j) of this Act:

Provided, That such investment shall not exceed thirty per cent of the Investment Reserve Fund. (As

amended by Section 15, R.A. 2658; Section 14, P.D. No. 24, S-1972; Section 18, P.D. No. 735, S-1975;and Section 11, E.O. No. 102, S-1986)

(e) In short and medium term loans to covered employees such as salary, educational, calamity and

emergency loans: Provided, That not more than ten per cent of the Investment Reserve Fund at any time

shall be invested for this purpose. (As amended by Section 15, R.A. 2658; Section 14, P.D. No. 24, S-

1972; and Section 11, E.O. No. 102, S-1986)

(f) In other income earning projects and investments secured by first mortgages on real estate collaterals

which, in the determination of the Commission, shall redound to the benefit of the SSS, its members, as

well as the public welfare: Provided, That any such investment shall be made with due diligence and

prudence to earn the highest possible interest consistent with safety. (As amended by Section 17, R.A.

1792; Section 11, R.A. 4857; and Section 14, P.D. No. 24, S-1972)

(g) As part of its investment operations, the SSS shall act as insurer of all or part of its interests on SSS

properties mortgaged to the SSS, or lives of mortgagors whose properties are mortgaged to the SSS. For

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this purpose, the SSS shall establish a separate account to be known as the “Mortgagors’ Insurance

Account.” All amounts received by the SSS in connection with the aforesaid insurance operations shall be

placed in the Mortgagors’ Insurance Account. The assets and liabilities of the Mortgagors’ Insurance

Account shall at all times be clearly identifiable and distinguishable from the assets and liabilities in all

other accounts of the SSS. Notwithstanding any provision of law to the contrary, the assets held in the

Mortgagors’ Insurance Account shall not be chargeable with the liabilities arising out of any other businessthe SSS may conduct but shall be held and applied exclusively for the benefit of the owners or

beneficiaries of the insurance contracts issued by the SSS under this paragraph.

(h) The SSS may insure any of its interests or part thereof with any private company or reinsurer. The

Insurer Commission or its authorized representatives shall make an examination into the financial condition

and methods of transacting business of the SSS at least once in two years, but such examination shall be

limited to the insurance operation of the SSS as authorized under this section and shall not embrace the

other operations of the SSS; and the report of said examination shall be submitted to the Commission and

a copy thereof shall be furnished the office of the President of the Philippines within a reasonable time after

the close of the examination: Provided, That for each examination, the SSS shall pay to the Insurance

Commission an amount equal to the actual expenses of the Insurance Commission in the conduct of theexamination including the salaries of the examiners and of the actuary of the Insurance Commission who

have been assigned to make such examination for the actual time spent in said examination: Provided,

further, That the general law on insurance promulgated thereunder shall have suppletory application

insofar as it is not in conflict with the SS Law and its rules and regulations. (As amended by Section 14,

P.D. No. 24, S-1972; Section 1, P.D. No. 65; Section 7, P.D. No. 177, S-1973; and Section 18, P.D. No.

735, S-1975)

(i) In bonds, debentures or other evidences of indebtedness of any solvent corporation or institution

created or existing under the laws of the Philippines: Provided, That the issuing, assuming or guaranteeing

entity or its predecessors shall not have defaulted in the payment of interest on any of its securities and

that during each of any three including the last two of the five fiscal years next preceding the date ofacquisition by the SSS of such bonds, debentures, or other evidences of indebtedness, the net earnings of

the issuing, assuming or guaranteeing institution available for its fixed charges, as hereinafter defined,

shall have been not less than one and one-quarter times the total of its fixed charges for such year:

Provided, further, That such investment shall not exceed 10 per cent of the Investment Reserve Fund.

As used in this section, the term ‘net earnings available for fixed charges’ shall mean net income after

deducting operating and maintenance expenses, taxes other than income taxes, depreciation and

depletion; but excluding extraordinary non-recurring items of income or expense appearing in the regular

financial statement of the issuing, assuming or guaranteeing institution. The Term ‘fixed charges’ shall

include interest on funded and unfunded debt, amortization of debt discount and rentals for leased

properties. (As amended by Section 12, E.O. No. 102, S-1986)(j) In preferred stocks of any solvent corporation or institution created or existing under the laws of the

Philippines: Provided, That the issuing, assuming, or guaranteeing entity or its predecessors has paid

regular dividends upon its preferred or guaranteed stocks for a period of at least three years next

preceding the date of investment in such preferred or guaranteed stocks: Provided, further, That if the

stocks are guaranteed, the amount of stocks so guaranteed is not in excess of fifty percentum of the

amount of the preferred or common stocks, as the case may be, of the issuing corporations: Provided,

furthermore, That if the corporation or institution has not paid dividends upon its preferred stocks, the

corporation or institution has sufficient retained earnings to declare dividends for at least two years on such

preferred stock: Provided, finally, That such investment shall not exceed 10 per cent of the Investment

Reserve Fund. (As amended by Section 12, E.O. No. 102, S-1986)

(k) In common stocks of any solvent corporation or institution created or existing under the laws of the

Philippines listed in the stock exchange with proven track record of profitability and payment of dividends



over the last three years: Provided, That such investment shall not exceed ten per cent of the Investment

Reserve Fund. (As amended by Section 12, E.O. No. 102, S-1986)

Section 27. Records and Reports. - The administrator shall keep and cause to be keep records of

operations, of the funds of the System and of disbursements thereof and all accounts of payments made

out of said funds. During the month of January of each year, the Administrator shall prepare for submission

to the President and to the Congress of the Philippines a report of operations of the System during thepreceding year including statistical data on the number of persons covered and benefited, their

occupations and employment status, the duration and amount of benefits paid, the finances of the System

at the close of the said year, and recommendations. He shall also cause to be published in two

newspapers of general circulation in the Philippines a synopsis of the annual report, showing in particular

the status of the finances of the System and the benefits administered.

Section 28. Penal Clause. - (a) Whoever, for the purpose of causing any payment to be made under this

Act, or under an agreement thereunder, where none is authorized to be paid, shall make or cause to be

made any false statement or representation as to any compensation paid or received or whoever makes or

causes to be made any false statement of a material fact in any claim for any benefit payable under this

Act, or application for loan with the SSS, or whoever makes or causes to be made any false statement,representation, affidavit, or document in connection with such claim or loan, shall suffer the penalties

provided for in Art. one hundred seventy-two of the Revised Penal Code. (As amended by Section 15, P.D.

No. 24, S-1972; Section 8, P.D. No. 177, S-1973; and Section 5, P.D. No. 347, S-1973)

(b) Whoever shall obtain or receive any money or check under this Act or any agreement thereunder,

without being entitled thereto with intent to defraud any covered employee, employer or the SSS, shall be

fined not less than five hundred pesos nor more than five thousand pesos and imprisoned for not less than

six months nor more than one year. (As amended by Section 15, P.D. No. 24, S-1972)

(c) Whoever buys, sells, offers for sale, uses, transfers, takes or gives in exchange, or pledges or gives in

pledge, except as authorized in this Act or in regulations made pursuant thereto, any stamp, coupon, ticket,

book or other device, prescribed pursuant to section twenty-three hereof by the Commission for thecollection or payment of contributions required herein, shall be fined not less than five hundred pesos nor

more than five thousand pesos, or imprisoned for not less than six months nor more than one year, or

both, at the discretion of the court.

(d) Whoever, with intent to defraud, alters, forges, makes or counterfeits any stamp, coupon, ticket, book or

other device prescribed by the Commission for the collection or payment of any contribution required

herein, or uses, sells, lends, or has in his possession any such altered, forged, or counterfeited materials

or makes, uses, sells, or has in his possession any such altered, forged material in imitation of the material

used in the manufacture of such stamp, coupon, ticket, book, or other device, shall be fined not less than

one thousand pesos nor more than ten thousand pesos or imprisoned for not less than one year nor more

than five years, or both, at the discretion of the court.(e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations

promulgated by the Commission, shall be punished by a fine of not less than five hundred pesos nor more

than five thousand pesos, imprisonment for not less than six months nor more than one year, or both, at

the discretion of the court: Provided, That where the violation consists in failure or refusal to register

employees or himself, in case of the covered self-employed or to deduct contributions from employee’s

compensation and remit the same to the SSS, the penalty shall be a fine of not less than five hundred

pesos nor more than five thousand pesos and imprisonment for not less than six months nor more than

one year. (As amended by Section 19, R.A. 1792; Section 16, R.A. 2658, Section 8, P.D. No. 177, S-1973;


(f) If the act or omission penalized by this Act be committed by an association, partnership, corporation or

any other institution, its managing head, directors or partners shall be liable to the penalties provided in this

Act for the offense.

http://www.bcphilippineslawyers.com/philippines-partnership/933/

http://www.bcphilippineslawyers.com/philippines-partnership/933/



(g) Any employee of the System who receives or keeps funds or property belonging, payable or deliverable

to the System and who shall appropriate the same, or shall take or misappropriate or shall consent, or

through abandonment or negligence shall permit any other person to take such property or funds, wholly or

partially, or shall otherwise be guilty of misappropriation of such funds or property, shall suffer the penalties

provided in Art. two hundred seventeen of the Revised Penal Code. (As amended by Section 16, R.A.

2658)(h) Any employer who after deducting the monthly contributions or loan amortizations from his employee’s

compensation; fails to remit the said deductions to the SSS within thirty days from the date they became

due shall be presumed to have misappropriated such contributions or loan amortizations and shall suffer

the penalties provided in Art. three hundred fifteen of the Revised Penal Code. (As amended by Section

15, P.D. No. 24, S-1972)

(i) Criminal action arising from a violation of the provisions of this Act may be commenced by the SSS or

the employee concerned either under this Act or in appropriate cases under the Revised Penal Code:

Provided, That such criminal action may be filed by the SSS in the city or municipality where the SSS

provincial or regional office is located if the violation was committed within its territorial jurisdiction or in

Metro Manila, at the option of the SSS. (As amended by Section 15, P.D. No. 24, S-1972; Section 19, P.D.No. 735, S-1975; and Section 13, P.D. No. 1202, S-1977)

Section 29. Governmentd. - The establishment of the Social Security System shall not disqualify the

covered employees and employers from receiving such government assistance, financial or otherwise, as

may be provided.

Section 30. Separability Clause. - In the event any provision of this Act or the application of such

provision to any person or circumstance is declared invalid, the remainder of this Act or the application of

said provision to other persons or circumstances shall not be affected by such declaration.

Section 31. Saving Clause. - The Assembly hereby reserves the right to amend, alter, or repeal any

provision of this Act, and no person shall be or shall be deemed to be vested with any property or other

right by virtue of the enactment or operation of this Act. (As amended by Section 21, R.A. 1792 andSection 20, P.D. No. 735, S-1975)

Section 32. Effectivity. - This Act shall take effect upon its approval

SOCIAL SECURITY ACT OF 1997

REPUBLIC ACT NO. 8282

AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEMTHEREBY AMENDING FOR THIS PURPOSE, REPUBLIC ACT NO. 1161, AS

AMENDED, OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW.

SECTION 1. Republic Act No. 1161, as amended, otherwise known as the "Social Security Law" , is hereby further amended to read as follows:

"SECTION 1. Short Title. - This Act shall be known as the "Social Security Act of 1997."

"SEC. 2. Declaration of Policy. - It is the policy of the Republic of the Philippines toestablish, develop, promote and perfect a sound and viable tax-exempt social securityservice suitable to the needs of the people throughout the Philippines which shall

promote social justice and provide meaningful protection to members and their beneficiaries against the hazards of disability, sickness, maternity, old age, death, andother contingencies resulting in loss of income or financial burden. Towards this end,



the State shall endeavor to extend social security protection to workers and their beneficiaries.

"SEC. 3. Social Security System. - (a) To carry out the purposes of this Act, the SocialSecurity System, hereinafter referred to as ‘SSS’ , a corporate body, with principal placeof business in Metro Manila, Philippines is hereby created. The SSS shall be directedand controlled by a Social Security Commission, hereinafter referred toas ‘Commission’ , composed of the Secretary of Labor and Employment or his dulydesignated undersecretary, the SSS president and seven (7) appointive members, three(3) of whom shall represent the workers’ group, at least one of whom shall be a woman;three (3), the employers’ group, at least one (1) of whom shall be a woman; and one (1),the general public whose representative shall have adequate knowledge and experienceregarding social security, to be appointed by the President of the Philippines. The six (6)members representing workers and employers shall be chosen from among thenominees of workers’ and employers’ organizations, respectively. The Chairman of theCommission shall be designated by the President of the Philippines from among itsmembers. The term of the appointive members shall be three (3) years: Provided , Thatthe terms of the first six (6) appointive members shall be one (1), two (2) and three (3)

years for every two members, respectively: Provided, further, That they shall continueto hold office until their successors shall have been appointed and duly qualified. All

vacancies, prior to the expiration of the term, shall be filled for the unexpired term only.The appointive members of the Commission shall receive at least two thousand fivehundred pesos (P2,500.00) per diem for each meeting actually attended by them butnot to exceed Ten thousand pesos (P10,000.00) a month:: Provided, That members ofthe Commission shall also receive a per diem of at least Two thousand five hundredpesos (P2,500.00) but not to exceed Fifteen thousand pesos (P15,000.00) amonth: Provided , further, That said members of the Commission shall also receive

reasonable transportation and representation allowances as may be fixed by theCommission, but not to exceed Ten thousand pesos (P10,000.00) a month.

"(b) The general conduct of the operations and management functions of the SSS shall be vested in the SSS President who shall serve as the chief executive officer immediatelyresponsible for carrying out the program of the SSS and the policies of the Commission.The SSS President shall be a person who has had previous experience in the technicaland administrative fields related to the purposes of this Act. He shall be appointed bythe President of the Philippines and shall receive salary to be fixed by the Commission

with the approval of the President of the Philippines, payable from the funds of the SSS.

"(c) The Commission, upon the recommendation of the SSS President, shall appoint anactuary, and such other personnel as may be deemed necessary, fix their reasonablecompensation, allowances and other benefits, prescribe their duties and establish suchmethods and procedures as may be necessary to insure the efficient, honest andeconomical administration of the provisions and purposes of this Act: Provided,however, That the personnel of the SSS below the rank of Vice-President shall beappointed by the SSS President: Provided, further, That the personnel appointed by theSSS President, except those below the rank of assistant manager, shall be subject to theconfirmation by the Commission: Provided, further, That the personnel of the SSS shall

be selected only from civil service eligibles and be subject to civil service rules andregulations: Provided, finally, That the SSS shall be exempt from the provisions of

Republic Act No. 6758 and Republic Act No. 7430.



"SEC. 4. Powers and Duties of the Commission and SSS. - (a) The Commission. - Forthe attainment of its main objectives as set forth in Section 2 hereof, the Commissionshall have the following powers and duties:

"(1) To adopt, amend and rescind, subject to the approval of the President of thePhilippines, such rules and regulations as may be necessary to carry out the provisionsand purposes of this Act;

"(2) To establish a provident fund for the members which will consist of voluntarycontributions of employers and/or employees, self-employed and voluntary membersand their earnings, for the payment of benefits to such members or their beneficiaries,subject to such rules and regulations as it may promulgate and approved by thePresident of the Philippines;

"(3) To maintain a provident fund which consists of contributions made by both the SSSand its officials and employees and their earnings, for the payment of benefits to such

officials and employees or their heirs under such terms and conditions as it mayprescribe;

"(4) To approve restructuring proposals for the payment of due but unremittedcontributions and unpaid loan amortizations under such terms and conditions as it mayprescribe;

"(5) To authorize cooperatives registered with the cooperative development authority orassociations registered with the appropriate government agency to act as collectingagents of the SSS with respect to their members: Provided, That the SSS shall accreditthe cooperative or association: Provided, further, That the persons authorized to collect

are bonded;

"(6) To compromise or release, in whole or in part, any interest, penalty or any civilliability to SSS in connection with the investments authorized under Section 26 hereof,under such terms and conditions as it may prescribe and approved by the President ofthe Philippines; and

"(7) To approve, confirm, pass upon or review any and all actions of the SSS in theproper and necessary exercise of its powers and duties hereinafter enumerated.

"(b) The Social Security System. - Subject to the provision of Section four (4),

paragraph seven (7) hereof, the SSS shall have the following powers and duties:

"(1) To submit annually not later than April 30, a public report to the President of thePhilippines and to the Congress of the Philippines covering its activities in theadministration and enforcement of this Act during the preceding year includinginformation and recommendations on broad policies for the development andperfection of the program of the SSS;

"(2) To require the actuary to submit a valuation report on the SSS benefit programevery four (4) years, or more frequently as may be necessary, to undertake the necessaryactuarial studies and calculations concerning increases in benefits taking into account

inflation and the financial stability of the SSS, and to provide for feasible increases in benefits every four (4) years, including the addition of new ones, under such rules andregulations as the Commission may adopt, subject to the approval of the President ofthe Philippines: Provided, That the actuarial soundness of the reserve fund shall be



guaranteed: Provided, further, That such increases in benefits shall not require anyincrease in the rate of contribution;

"(3) To establish offices of the SSS to cover as many provinces, cities and congressionaldistricts, whenever and wherever it may be expedient, necessary and feasible, and toinspect or cause to be inspected periodically such offices;

"(4) To enter into agreements or contracts for such service and aid, as may be neededfor the proper, efficient and stable administration of the SSS;

"(5) To adopt, from time to time, a budget of expenditures including salaries ofpersonnel, against all funds available to the SSS under this Act;

"(6) To set up its accounting system and provide the necessary personnel therefor;

"(7) To require reports, compilations and analyses of statistical and economic data and

to make investigation as may be needed for the proper administration and developmentof the SSS;

"(8) To acquire and dispose of property, real or personal, which may be necessary orexpedient for the attainment of the purposes of this Act;

"(9) To acquire, receive, or hold, by way of purchase, expropriation or otherwise, publicor private property for the purpose of undertaking housing projects preferably for the

benefit of low-income members and for the maintenance of hospitals and institutionsfor the sick, aged and disabled, as well as schools for the members and their immediatefamilies;

"(10) To sue and be sued in court; and

"(11) To perform such other corporate acts as it may deem appropriate for the properenforcement of this Act.

"SEC. 5. Settlement of Disputes. - (a) Any dispute arising under this Act with respect tocoverage, benefits, contributions and penalties thereon or any other matter relatedthereto, shall be cognizable by the Commission, and any case filed with respect theretoshall be heard by the Commission, or any of its members, or by hearing officers dulyauthorized by the Commission and decided within twenty (20) days after the

submission of the evidence. The filing, determination and settlement of disputes shall be governed by the rules and regulations promulgated by the Commission.

"(b) Appeal to Courts. - Any decision of the Commission, in the absence of an appealtherefrom as herein provided, shall become final and executory fifteen (15) days afterthe date of notification, and judicial review thereof shall be permitted only after anyparty claiming to be aggrieved thereby has exhausted his remedies before theCommission. The Commission shall be deemed to be a party to any judicial actioninvolving any such decision, and may be represented by an attorney employed by theCommission, or when requested by the Commission, by the Solicitor General or anypublic prosecutors.

"(c) Court Review. - The decision of the Commission upon any disputed matter may bereviewed both upon the law and the facts by the Court of Appeals. For the purpose ofsuch review, the procedure concerning appeals from the Regional Trial Court shall be



followed as far as practicable and consistent with the purposes of this Act. Appeal froma decision of the Commission must be taken within fifteen (15) days from notification ofsuch decision. If the decision of the Commission involves only questions of law, thesame shall be reviewed by the Supreme Court. No appeal bond shall be required. Thecase shall be heard in a summary manner, and shall take precedence over all cases,except that in the Supreme Court, criminal cases wherein life imprisonment or deathhas been imposed by the trial court shall take precedence. No appeal shall act asa supersedeas or a stay of the order of the Commission unless the Commission itself, orthe Court of Appeals or the Supreme Court, shall so order.

"(d) Execution of Decisions. - The Commission may, motu proprio or on motion of anyinterested party, issue a writ of execution to enforce any of its decisions or awards, afterit has become final and executory, in the same manner as the decision of the RegionalTrial Court by directing the city or provincial sheriff or the sheriff whom it may appointto enforce such final decision or execute such writ; and any person who shall fail orrefuse to comply with such decision, award or writ, after being required to do so shall,upon application by the Commission pursuant to Rule 71 of the Rules of Court, bepunished for contempt.

"SEC. 6. Auditor and Counsel. - (a) The Chairman of the Commission on Audit shall bethe ex-officio Auditor of the SSS. He or his representative shall check and audit all theaccounts, funds and properties of the SSS in the same manner and as frequently as theaccounts, funds and properties of the government are checked and audited underexisting laws, and he shall have, as far as practicable, the same powers and duties as hehas with respect to the checking and auditing of public accounts, funds and propertiesin general.

"(b) The Secretary of Justice shall be the ex-officio counsel of the SSS. He or hisrepresentative shall act as legal adviser and counsel thereof.

"SEC. 7. Oaths, Witnesses, and Production of Records. - When authorized by theCommission, an official or employee thereof shall have the power to administer oathand affirmation, take depositions, certify to official acts, andissue subpoena and subpoena duces tecum to compel the attendance of witnesses andthe production of books, papers, correspondence and other records deemed necessaryas evidence in connection with any question arising under this Act. Any case ofcontumacy shall be dealt with by the Commission in accordance with law.

"SEC. 8. Terms Defined. - For purposes of this Act, the following terms shall, unless thecontext indicates otherwise, have the following meanings:

"(a) SSS - The Social Security System created by this Act.

"(b) Commission - The Social Security Commission as herein created.

"(c) Employer- Any person, natural or juridical, domestic or foreign, who carries on inthe Philippines any trade, business, industry, undertaking, or activity of any kind anduses the services of another person who is under his orders as regards the employment,except the Government and any of its political subdivisions, branches or

instrumentalities, including corporations owned or controlled by theGovernment: Provided , That a self-employed person shall be both employee andemployer at the same time.



"(d) Employee - Any person who performs services for an employer in which either or both mental or physical efforts are used and who receives compensation for suchservices, where there is an employer-employee relationship: Provided, That a self-employed person shall be both employee and employer at the same time.

"(e) Dependents - The dependents shall be the following:

"(1) The legal spouse entitled by law to receive support from the member;

"(2) The legitimate, legitimated or legally adopted, and illegitimate child who isunmarried, not gainfully employed, and has not reached twenty-one (21) years of age, orif over twenty-one (21) years of age, he is congenitally or while still a minor has beenpermanently incapacitated and incapable of self-support, physically or mentally; and

"(3) The parent who is receiving regular support from the member.

"(f) Compensation - All actual remuneration for employment, including the mandatedcost-of-living allowance, as well as the cash value of any remuneration paid in anymedium other than cash except that part of the remuneration in excess of the maximumsalary credit as provided under Section Eighteen of this Act.

"(g) Monthly salary credit - The compensation base for contributions and benefits asindicated in the schedule in Section Eighteen of this Act.

"(h) Monthly - The period from one end of the last payroll period of the precedingmonth to the end of the last payroll period of the current month if compensation is onhourly, daily or weekly basis; if on any other basis, ‘monthly’ shall mean a period of one

(1) month.

"(i) Contribution - The amount paid to the SSS by and on behalf of the members inaccordance with Section Eighteen of this Act.

"(j) Employment - Any service performed by an employee for his employer except:

"(1) Employment purely casual and not for the purpose of occupation or business of the employer;

"(2) Service performed on or in connection with an alien vessel by an

employee if he is employed when such vessel is outside the Philippines;

"(3) Service performed in the employ of the Philippine Government orinstrumentality or agency thereof;

"(4) Service performed in the employ of a foreign government orinternational organization, or their wholly-ownedinstrumentality: Provided, however, That this exemption notwithstanding,any foreign government, international organization or their wholly-ownedinstrumentality employing workers in the Philippines or employingFilipinos outside of the Philippines, may enter into an agreement with the

Philippine Government for the inclusion of such employees in the SSSexcept those already covered by their respective civil service retirementsystems: Provided, further, That the terms of such agreement shallconform with the provisions of this Act on coverage and amount of



payment of contributions and benefits: Provided, finally, That theprovisions of this Act shall be supplementary to any such agreement; and

"(5) Such other services performed by temporary and other employees which may be excluded by regulation of the Commission. Employeesof bona fide independent contractors shall not be deemed employees ofthe employer engaging the service of said contractors.

"(k) Beneficiaries - The dependent spouse until he or she remarries, the dependentlegitimate, legitimated or legally adopted, and illegitimate children, who shall be theprimary beneficiaries of the member: Provided, That the dependent illegitimatechildren shall be entitled to fifty percent (50%) of the share of the legitimate,legitimated or legally adopted children: Provided, further, That in the absence of thedependent legitimate, legitimated children of the member, his/her dependentillegitimate children shall be entitled to one hundred percent (100%) of the benefits. Intheir absence, the dependent parents who shall be the secondary beneficiaries of themember. In the absence of all the foregoing, any other person designated by themember as his/her secondary beneficiary.

"(l) Contingency - The retirement, death, disability, injury or sickness and maternity ofthe member.

"(m) Average monthly salary credit - The result obtained by dividing the sum of thelast sixty (60) monthly salary credits immediately preceding the semester ofcontingency by sixty (60), or the result obtained by dividing the sum of all the monthlysalary credits paid prior to the semester of contingency by the number of monthlycontributions paid in the same period, whichever is greater: Provided, That the injury

or sickness which caused the disability shall be deemed as the permanent disability forthe purpose of computing the average monthly salary credit.

"(n) Average daily salary credit- The result obtained by dividing the sum of the six (6)highest monthly salary credits in the twelve-month period immediately preceding thesemester of contingency by one hundred eighty (180).

"(o) Semester - A period of two (2) consecutive quarters ending in the quarter ofcontingency.

"(p) Quarter - A period of three (3) consecutive calendar months ending on the last day

of March, June, September and December.

"(q) Credited years of service - For a member covered prior to January nineteenhundred and eighty five (1985) minus the calendar year of coverage plus the number ofcalendar years in which six (6) or more contributions have been paid from Januarynineteen hundred and eighty five (1985) up to the calendar year containing thesemester prior to the contingency. For a member covered in or after January nineteenhundred and eighty five (1985), the number of calendar years in which six (6) or morecontributions have been paid from the year of coverage up to the calendar yearcontaining the semester prior to the contingency: Provided, That the Commission mayprovide for a different number of contributions in a calendar year for it to be considered

as a credited year of service.

"(r) Member - The worker who is covered under Section Nine and Section Nine-A of this Act.



"(s) Self-employed - Any person whose income is not derived from employment, asdefined under this Act, as well as those workers enumerated in Section Nine-A hereof.

"(t) Net earnings - Net income before income taxes plus non-cash charges such asdepreciation and depletion appearing in the regular financial statement of the issuing orassuming institution.

"(u) Fixed charges - Recurring expense such as amortization of debt discount or rentalsfor leased properties, including interest on funded and unfunded debt.

"SEC. 9. Coverage. - (a) Coverage in the SSS shall be compulsory upon all employeesnot over sixty (60) years of age and their employers: Provided , That in the case ofdomestic helpers, their monthly income shall not be less than One thousand pesos(P1,000.00) a month: Provided, further, That any benefit already earned by theemployees under private benefit plans existing at the time of the approval of this Actshall not be discontinued, reduced or otherwise impaired: Provided, further, That

private plans which are existing and in force at the time of compulsory coverage shall beintegrated with the plan of the SSS in such a way where the employer’s contribution tohis private plan is more than that required of him in this Act, he shall pay to the SSSonly the contribution required of him and he shall continue his contribution to suchprivate plan less his contribution to the SSS so that the employer’s total contribution tohis benefit plan and to the SSS shall be the same as his contribution to his private

benefit plan before the compulsory coverage: Provided, further, That any changes,adjustments, modifications, eliminations or improvements in the benefits to beavailable under the remaining private plan, which may be necessary to adopt by reasonof the reduced contributions thereto as a result of the integration, shall be subject toagreements between the employers and employees concerned: Provided, further, That

the private benefit plan which the employer shall continue for his employees shallremain under the employer’s management and control unless there is an existingagreement to the contrary: Provided, finally, That nothing in this Act shall be construedas a limitation on the right of employers and employees to agree on and adopt benefits

which are over and above those provided under this Act.

"(b) Spouses who devote full time to managing the household and family affairs, unlessthey are also engaged in other vocation or employment which is subject to mandatorycoverage, may be covered by the SSS on a voluntary basis.

"(c) Filipinos recruited by foreign-based employers for employment abroad may be

covered by the SSS on a voluntary basis.

"SEC. 9-A. Compulsory Coverage of the Self-Employed. - Coverage in the SSS shall also be compulsory upon such self-employed persons as may be determined by theCommission under such rules and regulations as it may prescribe, including but notlimited to the following:

"1. All self-employed professionals;

"2. Partners and single proprietors of businesses;

"3. Actors and actresses, directors, scriptwriters and news correspondents who do notfall within the definition of the term "employee" in Section 8 (d) of this Act;

"4. Professional athletes, coaches, trainers and jockeys; and



"5. Individual farmers and fishermen.

"Unless otherwise specified herein, all provisions of this Act applicable to coveredemployees shall also be applicable to the covered self-employed persons.

"SEC. 10. Effective Date of Coverage. - Compulsory coverage of the employer shall takeeffect on the first day of his operation and that of the employee on the day of hisemployment: Provided, That the compulsory coverage of the self-employed person shalltake effect upon his registration with the SSS.

"SEC. 11. Effect of Separation from Employment. - When an employee undercompulsory coverage is separated from employment, his employer’s contribution on hisaccount and his obligation to pay contributions arising from that employment shallcease at the end of the month of separation, but said employee shall be credited with allcontributions paid on his behalf and entitled to benefits according to the provisions ofthis Act. He may, however, continue to pay the total contributions to maintain his right

to full benefit.

"SEC. 11-A. Effect of Interruption of Business or Professional Income. - If the self-employed realizes no income in any given month, he shall not be required to paycontributions for that month. He may, however, be allowed to continue payingcontributions under the same rules and regulations applicable to a separated employeemember: Provided, That no retroactive payment of contributions shall be allowed otherthan as prescribed under Section Twenty-two-A hereof.

"SEC. 12. Monthly Pension. - (a) The monthly pension shall be the highest of thefollowing amounts:

"(1) The sum of the following:

"(i) Three hundred pesos (P300.00; plus

"(ii) Twenty percent (20%) of the average monthly salary credit; plus

"(iii) Two percent (2%) of the average monthly salary credit for each credited year ofservice in excess of ten (10) years; or

"(2) Forth percent (40%) of the average monthly salary credit; or

"(3) One thousand pesos (P1,000.00): Provided, That the monthly pension shall in nocase be paid for an aggregate amount of less than sixty (60) months.

"(b) Notwithstanding the preceding paragraph, the minimum pension shall be Onethousand two hundred pesos (P1,200.00) for members with at least ten (10) credited

years of service and Two thousand four hundred pesos (P2,400.00) for those withtwenty (20) credited years of service.

"SEC. 12-A. Dependents’ Pension. - Where monthly pension is payable on account ofdeath, permanent total disability or retirement, dependents’ pension equivalent to ten

percent (10%) of the monthly pension or Two hundred fifty pesos (P250.00), whicheveris higher, shall also be paid for each dependent child conceived on or before the date ofthe contingency but not exceeding five (5), beginning with the youngest and without



substitution: Provided, That where there are legitimate or illegitimate children, theformer shall be preferred.

SEC. 12-B. Retirement Benefits. - (a) A member who has paid at least one hundredtwenty (120) monthly contributions prior to the semester of retirement and who: (1) hasreached the age of sixty (60) years and is already separated from employment or hasceased to be self-employed; or (2) has reached the age of sixty-five (65) years, shall beentitled for as long as he lives to the monthly pension: Provided, That he shall have theoption to receive his first eighteen (18) monthly pensions in lump sum discounted at apreferential rate of interest to be determined by the SSS.

"(b) A covered member who is sixty (60) years old at retirement and who does notqualify for pension benefits under paragraph (a) above, shall be entitled to a lump sum

benefit equal to the total contributions paid by him and on his behalf: Provided, That heis separated from employment and is not continuing payment of contributions to theSSS on his own.

"(c) The monthly pension shall be suspended upon the reemployment or resumption ofself-employment of a retired member who is less than sixty-five (65) years old. He shallagain be subject to Section Eighteen and his employer to Section Nineteen of this Act.

"(d) Upon the death of the retired member, his primary beneficiaries as of the date ofhis retirement shall be entitled to receive the monthly pension: Provided, That if he hasno primary beneficiaries and he dies within sixty (60) months from the start of hismonthly pension, his secondary beneficiaries shall be entitled to a lump sum benefitequivalent to the total monthly pensions corresponding to the balance of the five-yearguaranteed period, excluding the dependents’ pension.

"(e) The monthly pension of a member who retires after reaching age sixty (60) shall bethe higher of either: (1) the monthly pension computed at the earliest time he couldhave retired had he been separated from employment or ceased to be self-employedplus all adjustments thereto; or (2) the monthly pension computed at the time when heactually retires.

"SEC. 13. Death Benefits. - Upon the death of a member who has paid at least thirty-six(36) monthly contributions prior to the semester of death, his primary beneficiariesshall be entitled to the monthly pension: Provided, That if he has no primary

beneficiaries, his secondary beneficiaries shall be entitled to a lump sum benefit

equivalent to thirty-six (36) times the monthly pension. If he has not paid the requiredthirty-six (36) monthly contributions, his primary or secondary beneficiaries shall beentitled to a lump sum benefit equivalent to the monthly pension times the number ofmonthly contributions paid to the SSS or twelve (12) times the monthly pension,

whichever is higher.

"SEC. 13-A. Permanent Disability Benefits. - (a) Upon the permanent total disability ofa member who has paid at least thirty-six (36) monthly contributions prior to thesemester of disability, he shall be entitled to the monthly pension: Provided, That if hehas not paid the required thirty-six (36) monthly contributions, he shall be entitled to alump sum benefit equivalent to the monthly pension times the number of monthly

contributions paid to the SSS or twelve (12) times the monthly pension, whichever ishigher. A member who (1) has received a lump sum benefit; and (2) is reemployed orhas resumed self-employment not earlier than one (1) year from the date of his



disability shall again be subject to compulsory coverage and shall be considered a newmember.

"(b) The monthly pension and dependents’ pension shall be suspended upon thereemployment or resumption of self-employment or the recovery of the disabledmember from his permanent total disability or his failure to present himself forexamination at least once a year upon notice by the SSS.

"(c) Upon the death of the permanent total disability pensioner, his primary beneficiaries as of the date of disability shall be entitled to receive the monthlypension: Provided, That if he has no primary beneficiaries and he dies within sixty (60)months from the start of his monthly pension, his secondary beneficiaries shall beentitled to a lump sum benefit equivalent to the total monthly pensions correspondingto the balance of the five- year guaranteed period excluding the dependents’ pension.

"(d) The following disabilities shall be deemed permanent total:

"1. Complete loss of sight of both eyes;

"2. Loss of two limbs at or above the ankle or wrists;

"3. Permanent complete paralysis of two limbs;

"4. Brain injury resulting to incurable imbecility or insanity; and

"5. Such cases as determined and approved by the SSS.

"(e) If the disability is permanent partial, and such disability occurs before thirty-six(36) monthly contributions have been paid prior to the semester of disability, the benefit shall be such percentage of the lump sum benefit described in the precedingparagraph with due regard to the degree of disability as the Commission maydetermine.

"(f) If the disability is permanent total and such disability occurs after thirty-six (36)monthly contributions have been paid prior to the semester of disability, the benefitshall be the monthly pension for permanent total disability payable not longer than theperiod designated in the following schedule:

COMPLETE AND PERMANENT NUMBER OFLOSS OF USE OF MONTHS

One thumb 10One index finger 8One middle finger 6One ring finger 5One little finger 3One big toe 6One hand 39

One arm 50One foot 31One leg 46One ear 10



Both ears 20Hearing of one ear 10Hearing of both ears 50Sight of one eye 25

"(g) The percentage degree of disability which is equivalent to the ratio that thedesignated number of months of compensability bears to seventy-five (75), rounded tothe next higher integer, shall not be additive for distinct, separate and unrelatedpermanent partial disabilities, but shall be additive for deteriorating and relatedpermanent partial disabilities to a maximum of one hundred percent (100%), in whichcase, the member shall be deemed as permanently totally disabled.

"(h) In case of permanent partial disability, the monthly pension benefit shall be givenin lump sum if it is payable for less than twelve (12) months.

"(i) For the purpose of adjudicating retirement, death and permanent total disability

pension benefits, contributions shall be deemed paid for the months during which themember received partial disability pension: Provided, That such contributions shall be based on his last contribution prior to his disability.

"(j) Should a member who is on partial disability pension retire or die, his disabilitypension shall cease upon his retirement or death.

"SEC. 13-B. Funeral Benefit . - A funeral grant equivalent to Twelve thousand pesos(P12,000.00) shall be paid, in cash or in kind, to help defray the cost of funeralexpenses upon the death of a member, including permanently totally disabled memberor retiree.

"SEC. 14. Sickness Benefit. - (a) A member who has paid at least three (3) monthlycontributions in the twelve-month period immediately preceding the semester ofsickness or injury and is confined therefor for more than three (3) days in a hospital orelsewhere with the approval of the SSS, shall, for each day of compensable confinementor a fraction thereof, be paid by his employer, or the SSS, if such person is unemployedor self-employed, a daily sickness benefit equivalent to ninety percent (90%) of hisaverage daily salary credit, subject to the following conditions:

"(1) In no case shall the daily sickness benefit be paid longer than one hundred twenty(120) days in one (1) calendar year, nor shall any unused portion of the one hundred

twenty (120) days of sickness benefit granted under this section be carried forward andadded to the total number of compensable days allowable in the subsequent year;

"(2) The daily sickness benefit shall not be paid for more than two hundred forty (240)days on account of the same confinement; and

"(3) The employee member shall notify his employer of the fact of his sickness or injury within five (5) calendar days after the start of his confinement unless such confinementis in a hospital or the employee became sick or was injured while working or within thepremises of the employer in which case, notification to the employer isnecessary: Provided, That if the member is unemployed or self-employed, he shall

directly notify the SSS of his confinement within five (5) calendar days after the startthereof unless such confinement is in a hospital in which case notification is also notnecessary: Provided, further, That in cases where notification is necessary, the



confinement shall be deemed to have started not earlier than the fifth day immediatelypreceding the date of notification.

"(b) The compensable confinement shall begin on the first day of sickness, and thepayment of such allowances shall be promptly made by the employer every regularpayday or on the fifteenth and last day of each month, and similarly in the case of directpayment by the SSS, for as long as such allowances are due and payable: Provided, Thatsuch allowance shall begin only after all sick leaves of absence with full pay to the creditof the employee member shall have been exhausted.

"(c) One hundred percent (100%) of the daily benefits provided in the precedingparagraph shall be reimbursed by the SSS to said employer upon receipt of satisfactoryproof of such payment and legality thereof: Provided, That the employer has notifiedthe SSS of the confinement within five (5) calendar days after receipt of the notificationfrom the employee member: Provided, further, That if the notification to the SSS ismade by the employer beyond five (5) calendar days after receipt of the notificationfrom the employee member, said employer shall be reimbursed only for each day ofconfinement starting from the tenth calendar day immediately preceding the date ofnotification to the SSS: Provided, finally, That the SSS shall reimburse the employer orpay the unemployed member only for confinement within the one-year periodimmediately preceding the date the claim for benefit or reimbursement is received bythe SSS, except confinement in a hospital in which case the claim for benefit orreimbursement must be filed within one (1) year from the last day of confinement.

"(d) Where the employee member has given the required notification but the employerfails to notify the SSS of the confinement or to file the claim for reimbursement withinthe period prescribed in this section resulting in the reduction of the benefit or denial of

the claim, such employer shall have no right to recover the corresponding dailyallowance he advanced to the employee member as required in this section.

"(e)The claim of reimbursement shall be adjudicated by the SSS within a period of two(2) months from receipt thereof: Provided, That should no payment be received by theemployer within one (1) month after the period prescribed herein for adjudication, thereimbursement shall thereafter earn simple interest of one percent (1%) per month untilpaid.

"(f) The provisions regarding the notification required of the member and the employeras well as the period within which the claim for benefit or reimbursement may be filed

shall apply to all claims filed with the SSS.

"SEC. 14-A. Maternity Leave Benefit. - A female member who has paid at least three (3)monthly contributions in the twelve-month period immediately preceding the semesterof her childbirth or miscarriage shall be paid a daily maternity benefit equivalent to onehundred percent (100%) of her average daily salary credit for sixty (60) days or seventy-eight (78) days in case of caesarian delivery, subject to the following conditions:

"(a) That the employee shall have notified her employer of her pregnancy and theprobable date of her childbirth, which notice shall be transmitted to the SSS inaccordance with the rules and regulations it may provide;

"(b) The full payment shall be advanced by the employer within thirty (30) days fromthe filing of the maternity leave application;



"(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act for the same period for which daily maternity benefitshave been received;

"(d) That the maternity benefits provided under this section shall be paid only for thefirst four (4) deliveries or miscarriages;

"(e) That the SSS shall immediately reimburse the employer of one hundred percent(100%) of the amount of maternity benefits advanced to the employee by the employerupon receipt of satisfactory proof of such payment and legality thereof; and

"(f) That if an employee member should give birth or suffer miscarriage without therequired contributions having been remitted for her by her employer to the SSS, or

without the latter having been previously notified by the employer of the time of thepregnancy, the employer shall pay to the SSS damages equivalent to the benefits whichsaid employee member would otherwise have been entitled to.

"SEC. 15. Non-Transferability of Benefits. - The SSS shall promptly pay the benefitsprovided in this Act to such persons as may be entitled thereto in accordance with theprovisions of this Act: Provided, That the SSS shall pay the retirement benefits on theday of contingency to qualified members who have submitted the necessary documentsat least six (6) months before: Provided, further, That the beneficiary who is a nationalof a foreign country which does not extend benefits to a Filipino beneficiary residing inthe Philippines, or which is not recognized by the Philippines, shall not be entitled toreceive any benefit under this Act: Provided, further, That notwithstanding theforegoing, where the best interest of the SSS will be served, the Commission may directpayments without regard to nationality or country of residence: Provided, further, That

if the recipient is a minor or a person incapable of administering his own affairs, theCommission shall appoint a representative under such terms and conditions as it maydeem proper: Provided, further, That such appointment shall not be necessary in casethe recipient is under the custody of or living with the parents or spouse of the memberin which case the benefits shall be paid to such parents or spouse, as representativepayee of the recipient. Such benefits are not transferable and no power of attorney orother document executed by those entitled thereto in favor of any agent, attorney or anyother person for the collection thereof on their behalf shall be recognized, except whenthey are physically unable to collect personally such benefits: Provided, further, That incase of death benefits, if no beneficiary qualifies under this Act, said benefits shall bepaid to the legal heirs in accordance with the law of succession.

"SEC. 16. Exemption from Tax, Legal Process and Lien. -- All laws to the contrarynotwithstanding, the SSS and all its assets and properties, all contributions collectedand all accruals thereto and income or investment earnings therefrom as well as allsupplies, equipment, papers or documents shall be exempt from any tax, assessment,fee, charge, or customs or import duty; and all benefit payments made by the SSS shalllikewise be exempt from all kinds of taxes, fees or charges, and shall not liable toattachments, garnishments, levy or seizure by or under any legal or equitable process

whatsoever, either before or after receipt by the person or persons entitled thereto,except to pay any debt of the member to the SSS. No tax measure of whatever natureenacted shall apply to the SSS, unless it expressly revokes the declared policy of the

State in Section 2 hereof granting tax-exemption to the SSS. Any tax assessmentimposed against the SSS shall be null and void. (As amended by Sec. 9, P. D. No. 24, S.1972; and Sec. 14, P. D. No. 735, S. 1975).



"SEC. 17. Fee of Agents, Attorneys, Etc. - No agent, attorney or other person in chargeof the preparation, filing or pursuing any claim for benefit under this Act shall demandor charge for his services any fee, and any stipulation to the contrary shall be null and

void. The retention or deduction of any amount from any benefit granted under this Actfor the payment of fees for such services is prohibited: Provided, however, That anymember of the Philippine Bar who appears as counsel in any case heard by theCommission shall be entitled to attorneys’ fees not exceeding ten percent (10%) of the

benefits awarded by the Commission, which fees shall not be payable before the actualpayment of the benefits, and any stipulation to the contrary shall be null and void.

"Any violation of the provisions of this Section shall be punished by a fine of not lessthan Five hundred pesos (P500.00) nor more than Five thousand pesos (P5,000.00), orimprisonment for not less than six (6) months nor more than one (1) year, or both, atthe discretion of the court.

"SEC. 18. Employee’s Contributions. - (a) Beginning as of the last day of the calendarmonth when an employee’s compulsory coverage takes effect and every monththereafter during his employment, the employer shall deduct and withhold from suchemployee’s monthly salary, wage, compensation or earnings, the employee’scontribution in an amount corresponding to his salary, wage, compensation or earningsduring the month in accordance with the following schedule:

SALARY RANGE OF MONTHLY MONTHLY CONTRIBUTION BRACKET COMPENSATION SALARY

CREDIT EMPLOYER EMPLOYEE TOTAL

I 1,000.00 - 1,249.99 1000 50.70 33.30 84.00

II 1,250.00 - 1,749.99 1500 76.00 50.00 126.00 III 1,750.00 - 2,249.99 2000 101.30 66.70 168.00 IV 2,250.00 - 2,749.99 2500 126.70 83.30 210.00 V 2,750.00 - 3,249.99 3000 152.00 100.00 252.00 VI 3,250.00 - 3,749.99 3500 177.30 116.70 294.00 VII 3,750.00 - 4,249.99 4000 202.70 133.30 336.00 VIII 4,250.00 - 4,749.99 4500 228.00 150.00 378.00 IX 4,750.00 - 5,249.99 5000 253.30 166.70 420.00 X 5,250.00 - 5,749.99 5500 278.70 183.70 462.40 XI 5,750.00 - 6,249.99 6000 304.00 200.00 504.00 XII 6,250.00 - 6,749.99 6500 329.30 216.78 546.00

XIII 6,750.00 - 7,249.99 7000 354.70 233.30 588.00 XIV 7,250.00 - 7,749.99 7500 380.00 250.00 630.00 XV 7,750.00 - 8.249.99 8000 403.30 266.70 672.00 XVI 8,250.00 - 8,749.99 8500 430.70 283.30 714.00

XVII 8,750.00 - OVER 9000 456.00 300.00 756.00

"The foregoing schedule of contribution shall also apply to self-employed and voluntarymembers.

"The maximum monthly salary credit shall be Nine thousand pesos (P9,000.00)effective January Nineteen hundred and ninety six (1996); Provided, That it shall be

increased by One thousand pesos (P1,000.00) every year thereafter until it shall havereached Twelve thousand pesos (P12,000.00) by Nineteen hundred and ninety nine(1999): Provided, further, That the minimum and maximum monthly salary credits as

well as the rate of contributions may be fixed from time to time by the Commission



through rules and regulations taking into consideration actuarial calculations and rateof benefits, subject to the approval of the President of the Philippines.

"SEC. 19. Employer’s Contributions. - (a) Beginning as of the last day of the month when an employee’s compulsory coverage takes effect and every month thereafterduring his employment, his employer shall pay, with respect to such covered employee,the employer’s contribution in accordance with the schedule indicated in SectionEighteen of this Act. Notwithstanding any contract to the contrary, an employer shallnot deduct, directly or indirectly, from the compensation of his employees covered bythe SSS or otherwise recover from them the employer’s contributions with respect tosuch employees.

"(b) The remittance of such contributions by the employer shall be supported by aquarterly collection list to be submitted to the SSS at the end of each calendar quarterindicating the correct ID number of the employer, the correct names and the SSSnumbers of the employees and the total contributions paid for their account during thequarter.

"SEC. 19-A. Contributions of the Self-Employed Member. - The contributions to the SSSof the self-employed member shall be determined in accordance with Section Eighteenof this Act: Provided, That the monthly earnings declared by the self-employed memberat the time of his registration with the SSS shall be considered as his monthlycompensation and he shall pay both the employer and the employeecontributions: Provided, further, That the contributions of self-employed personsearning One thousand pesos (P1,000.00) monthly or below may be reduced by theCommission.

"The monthly earnings declared by the self-employed member at the time of hisregistration shall remain the basis of his monthly salary credit, unless he makes anotherdeclaration of his monthly earnings, in which case such latest declaration becomes thenew basis of his monthly salary credit.

"SEC. 20. Government Contribution. - As the contribution of the Government to theoperation of the SSS, Congress shall annually appropriate out of any funds in theNational Treasury not otherwise appropriated, the necessary sum or sums to meet theestimated expenses of the SSS for each ensuing year. In addition to this contribution,Congress shall appropriate from time to time such sum or sums as may be needed toassure the maintenance of an adequate working balance of the funds of the SSS as

disclosed by suitable periodic actuarial studies to be made of the operations of the SSS.

"SEC. 21. Government Guarantee. -- The benefits prescribed in this Act shall not bediminished and to guarantee said benefits the Government of the Republic of thePhilippines accepts general responsibility for the solvency of the SSS.

"SEC. 22. Remittance of Contributions. -- (a) The contributions imposed in thepreceding Section shall be remitted to the SSS within the first ten (10) days of eachcalendar month following the month for which they are applicable or within such timeas the Commission may prescribe. Every employer required to deduct and to remit suchcontributions shall be liable for their payment and if any contribution is not paid to the

SSS as herein prescribed, he shall pay besides the contribution a penalty thereon ofthree percent (3%) per month from the date the contribution falls due until paid. Ifdeemed expedient and advisable by the Commission, the collection and remittance ofcontributions shall be made quarterly or semi-annually in advance, the contributions



payable by the employees to be advanced by their respective employers: Provided, Thatupon separation of an employee, any contribution so paid in advance but not due shall

be credited or refunded to his employer.

"(b) The contributions payable under this Act in cases where an employer refuses orneglects to pay the same shall be collected by the SSS in the same manner as taxes aremade collectible under the National Internal Revenue Code, as amended. Failure orrefusal of the employer to pay or remit the contributions herein prescribed shall notprejudice the right of the covered employee to the benefits of the coverage.

"The right to institute the necessary action against the employer may be commenced within twenty (20) years from the time the delinquency is known or the assessment ismade by the SSS, or from the time the benefit accrues, as the case may be.

"(c) Should any person, natural or juridical, default in any payment of contributions, theCommission may also collect the same in either of the following ways:

"1. By an action in court, which shall hear and dispose of the case in preference to anyother civil action; or

"2. By issuing a warrant to the Sheriff of any province or city commanding him to levyupon and sell any real and personal property of the debtor. The Sheriff’s sale by virtueof said warrant shall be governed by the same procedure prescribed for executionsagainst property upon judgments by a court of record.

"(d) The last complete record of monthly contributions paid by the employer or theaverage of the monthly contributions paid during the past three (3) years as of the date

of filing of the action for collection shall be presumed to be the monthly contributionspayable by and due from the employer to the SSS for each of the unpaid month, unlesscontradicted and overcome by other evidence: Provided, That the SSS shall not be

barred from determining and collecting the true and correct contributions due the SSSeven after full payment pursuant to this paragraph, nor shall the employer be relieved ofhis liability under Section Twenty-eight of this Act.

"SEC. 22-A. Remittance of Contributions of Self-Employed Member. - Self-employedmembers shall remit their monthly contributions quarterly on such dates and schedulesas the Commission may specify through rules and regulations: Provided, That noretroactive payment of contributions shall be allowed, except as provided in this

Section.

"SEC. 23. Method of Collection and Payment. - The SSS shall require a complete andproper collection and payment of contributions and proper identification of theemployer and the employee. Payment may be made in cash, checks, stamps, coupons,tickets, or other reasonable devices that the Commission may adopt.

"SEC. 24. Employment Records and Reports. - (a) Each employer shall immediatelyreport to the SSS the names, ages, civil status, occupations, salaries and dependents ofall his employees who are subject to compulsory coverage: Provided, That if anemployee subject to compulsory coverage should die or become sick or disabled or

reach the age of sixty (60) without the SSS having previously received any report or written communication about him from his employer, the said employer shall pay to theSSS damages equivalent to the benefits to which said employee member would have

been entitled had his name been reported on time by the employer to the SSS, except



that in case of pension benefits, the employer shall be liable to pay the SSS damagesequivalent to the accumulated pension due as of the date of settlement of the claim or tothe five (5) years’ pension, including dependents’ pension: Provided, further, That if thecontingency occurs within thirty (30) days from the date of employment, the employershall be relieved of his liability for damages: Provided, further, That any person orentity engaging the services of an independent contractor shall be subsidiarily liable

with such contractor for any civil liability incurred by the latter under this Act: Provided, finally, That the same person or entity engaging the services of anindependent contractor shall require such contractor to post a surety bond to guaranteethe payment of the worker’s benefits.

"(b) Should the employer misrepresent the true date of employment of the employeemember or remit to the SSS contributions which are less than those required in this Actor fail to remit any contribution due prior to the date of contingency, resulting in areduction of benefits, the employer shall pay to the SSS damages equivalent to thedifference between the amount of benefit to which the employee member or his

beneficiary is entitled had the proper contributions been remitted to the SSS and theamount payable on the basis of contributions actually remitted: Provided, That if theemployee member or his beneficiary is entitled to pension benefits, damages shall beequivalent to the accumulated pension due as of the date of settlement of the claim or tothe five (5) years’ pension, whichever is higher, including dependents’ pension.

"In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof,the employer shall also be liable for the corresponding unremitted contributions andpenalties thereon.

"(c) The records and reports duly accomplished and submitted to the SSS by the

employer or the member, as the case may be, shall be kept confidential by the SSSexcept in compliance with a subpoena duces tecum issued by the Court, shall not bedivulged without the consent of the SSS President or any official of the SSS dulyauthorized by him, shall be presumed correct as to the data and other matters statedtherein, unless the necessary corrections to such records and reports have beenproperly made by the parties concerned before the right to the benefit being claimedaccrues, and shall be made the basis for the adjudication of the claim. If as a result ofsuch adjudication the SSS in good faith pays a monthly pension to a beneficiary who isinferior in right to another beneficiary or with whom another beneficiary is entitled toshare, such payments shall discharge the SSS from liability unless and until such other

beneficiary notifies the SSS of his claim prior to the payments.

"(d) Every employer shall keep true and accurate work records for such period andcontaining such information as the Commission may prescribe, in addition toan "Annual Register of New and Separated Employees" which shall be secured fromthe SSS wherein the employer shall enter on the first day of employment or on theeffective date of separation, the names of the persons employed or separated fromemployment, their SSS numbers, and such other data that the Commission may requireand said annual register shall be submitted to the SSS in the month of January of each

year. Such records shall be open for inspection by the SSS or its authorizedrepresentatives quarterly or as often as the SSS may require.

"The SSS may also require each employer to submit, with respect to the persons in hisemploy, reports needed for the effective administration of this Act.



"(e) Each employer shall require, as a condition to employment, the presentation of aregistration number secured by the prospective employee from the SSS in accordance

with such procedure as the SSS may adopt: Provided, That in case of employees whohave been assigned registration numbers by virtue of a previous employment, suchnumbers originally assigned to them should be used for purposes of thisSection: Provided, further, That the issuance of such registration numbers by the SSSshall not exempt the employer from complying with the provisions of paragraph (a) ofthis Section.

"(f) Notwithstanding any law to the contrary, microfilm, or non-erasable optical diskand other similar archival media copies of original SSS records and reports, dulycertified by the official custodian thereof, shall have the same evidentiary value as theoriginals and be admissible as evidence in all legal proceedings.

"(g) Notwithstanding any law to the contrary, local government units shall, prior toissuing any annual business license or permit, require submission of certificate of SSScoverage and compliance with the provisions of this Act: Provided, That thecertification or clearance shall be issued by the SSS within five (5) working days fromreceipt of the request.

"SEC. 24-A. Report and Registration of the Self-Employed Member. - Each coveredself-employed person shall, within thirty (30) days from the first day he started thepractice of his profession or business operations register and report to the SSS hisname, age, civil status, and occupation, average monthly net income and hisdependents.

"SEC. 25. Deposits and Disbursements. - All money paid to or collected by the SSS

every year under this Act, and all accruals thereto shall be deposited, administered anddisbursed in the same manner and under the same conditions and requirements asprovided by law for other public special funds: Provided, That not more than twelvepercent (12%) of the total yearly contributions plus three percent (3%) of other revenuesshall be disbursed for operational expenses such as salaries and wages, supplies andmaterials, depreciation and the maintenance of offices of the SSS: Provided,

further, That if the expenses in any year are less than the maximum amountpermissible, the difference shall not be availed of as additional expenses in the following

years.

"SEC. 26. Investment of Reserve Funds. - All revenues of the SSS that are not needed to

meet the current administrative and operational expenses incidental to the carrying outof this Act shall be accumulated in a fund to be known as the "Reserve Fund." Suchportions of the Reserve Fund as are not needed to meet the current benefit obligationsthereof shall be known as the "Investment Reserve Fund" which the Commission shallmanage and invest with the skill, care, prudence and diligence necessary under thecircumstances then prevailing that a prudent man acting in like capacity and familiar

with such matters would exercise in the conduct of an enterprise of a like character and with similar aims. Pursuant thereto, and in line with the basic principles of safety, good yield and liquidity, the Commission shall invest the funds to earn an annual income notless than the average rates of treasury bills or any other acceptable market yieldindicator in any or in all of the following:

"(a) In bonds, securities, promissory notes or other evidence of indebtedness of theGovernment of the Philippines, or in bonds, securities, promissory notes or other



evidence of indebtedness to which the full faith, credit and unconditional guarantee ofthe Government of the Philippines is pledged;

"(b) In bonds, securities, promissory notes or other evidence of indebtedness of theGovernment of the Philippines, or any agencies or instrumentalities to finance domesticinfrastructure projects such as roads, bridges, ports, telecommunications, and othersimilar projects: Provided, That the instruments issued by an agency or instrumentalityof the government shall be guaranteed by the Government of the Philippines or anygovernment financial institution or acceptable multilateral agency: Provided,

further, That the SSS shall have priority over the revenues of the projects: Provided, finally, That such investments shall not exceed thirty percent (30%) of the InvestmentReserve Fund;

"(c) In bonds, securities, promissory notes or other evidence of indebtedness ofgovernment financial institutions or government corporations with acceptable credit orguarantee: Provided, That such investments shall not exceed thirty percent (30%) of theInvestment Reserve Fund;

"(d) In bonds, securities, promissory notes or other evidence of indebtedness of any bank doing business in the Philippines and in good standing with the Bangko Sentral ngPilipinas to finance loans to private corporations doing business in the Philippines,including schools, hospitals, small-and-medium scale industries, cooperatives and non-governmental organizations, in which case the collaterals or securities shall be assignedto the SSS under such terms and conditions as the Commission mayprescribe: Provided, That in the case of bank deposits, they shall not exceed at any timethe unimpaired capital and surplus or total private deposits of the depository bank,

whichever is smaller: Provided, further, That said bank shall first have been designated

as a depository for this purpose by the Monetary Board of the Bangko Sentral ngPilipinas: Provided, finally, That such investments shall not exceed forty percent (40%)of the Investment Reserve Fund;

"(e) In bonds, securities, promissory notes or other evidence of indebtedness of shelteragencies of the National Government or financial intermediaries to finance housingloans of members; and in long-term direct individual or group housing loans givingpriority to the low-income groups, up to a maximum of ninety percent (90%) of theappraised value of the properties to be mortgaged by the borrowers; and

"In short and medium term loans to members such as salary, educational, livelihood,

marital, calamity and emergency loans: Provided, That not more than thirty fivepercent (35%) of the Investment Reserve Fund at any time shall be invested for housingpurposes: Provided, further, That not more than ten percent (10%) of the InvestmentReserve Fund shall be invested in short and medium term loans;

"(f) In bonds, securities, promissory notes or other evidence of indebtedness ofeducational or medical institutions to finance the construction, improvement andmaintenance of schools and hospitals and their equipment and facilities: Provided, Thatsuch investments shall not exceed ten percent (10%) of the Investment Reserve Fund;

"(g) In real estate property, including shares of stocks involving real estate property,

and investment secured by first mortgages on real estate or other collaterals acceptableto the SSS: Provided, That such projects and investments shall, in the determination ofthe Commission, redound to the benefit of the SSS, its members, as well as the generalpublic: Provided, further, That investment in real estate property, including shares of



stocks involving real estate property shall not exceed five percent (5%) of theInvestment Reserve Fund: Provided, finally, That investments in other income earningprojects and investments secured by first mortgages or other collaterals shall not exceedtwenty five percent (25%) of the Investment Reserve Fund;

"(h) In bonds, debentures, securities, promissory notes or other evidence ofindebtedness of any prime corporation or multilateral institutions to finance domesticprojects: Provided, That the issuing or assuming entity or its predecessors shall nothave defaulted in the payment of interest on any of its securities and that during each ofany three (3) including the last two (2) of the five (5) fiscal years next preceding the dateof acquisition by the SSS of such bonds, debentures or other evidence of indebtedness,the net earnings of the issuing or assuming institution available for its fixed charges, asdefined in this Act, shall have been not less than one and one-quarter times the total ofits fixed charges for such year: Provided, further, That such investments shall notexceed thirty percent (30%) of the Investment Reserve Fund;

"(i) In preferred or common shares of stocks listed or about to be listed in the stockexchange or options or warrants to such stocks or, subject to prior approval of theBangko Sentral ng Pilipinas, such other risk management instruments of any prime orsolvent corporation or financial institution created or existing under the laws of thePhilippines with proven track record of profitability over the last three (3) years andpayment of dividends at least once over the same period: Provided, That suchinvestments shall not exceed thirty percent (30%) of the Investment Reserve Fund;

"(j) In domestic or foreign mutual funds in existence for at least three (3) years; Provided, That such investments shall not exceed twenty percent (20%) of theInvestment Reserve Fund: Provided, further, That investments in foreign mutual funds

shall not exceed one percent (1%) of the Investment Reserve Fund in the first year which shall be increased by one percent (1%) for each succeeding year, but in no caseshall it exceed seven and one-half percent (7.5%) of the Investment Reserve Fund;

"(k) In foreign currency deposits or triple "A" foreign currency denominated debts,prime and non-speculative equities, and other Bangko Sentral ng Pilipinas approvedfinancial instruments or other assets issued in accordance with the existing laws of thecountries where such financial instruments are issued: Provided, That theseinstruments or assets are listed in bourses of the respective countries where theseinstruments or assets are issued: Provided, further, That the issuing company hasproven track of record of profitability over the last three (3) years and a record of

regular dividend pay-out over the same period: Provided, finally, That suchinvestments shall not exceed one percent (1%) of the Investment Reserve Fund in thefirst year which shall be increased by one percent (1%) for each succeeding year, but inno case shall it exceed seven and one-half percent (7.5%) of the Investment ReserveFund;

"(l) In loans secured by such collaterals like cash, government securities or guaranteesof multilateral institutions: Provided, That such investments shall not exceed thirtypercent (30%) of the Investment Reserve Fund; and

"(m) In other Bangko Sentral ng Pilipinas approved investment instruments with the

same intrinsic quality as those enumerated in paragraphs (a) to (l) hereof, subject to thepolicies and guidelines which the Commission may formulate.



"No portion of the Investment Reserve Fund or income thereof shall accrue to thegeneral fund of the National Government or to any of its agencies or instrumentalities,including government-owned or controlled corporations, except as may be allowedunder this Act: Provided,That no portion of the Investment Reserve Fund shall beinvested for any purpose or in any instrument, institution or industry over and abovethe prescribed cumulative ceilings as follows:

40% in private securities

35% in housing

30% in real estate related investments

10% in short and medium-term member loans

30% in government financial institutions and corporations

30% in infrastructure projects

15% in any particular industry

7.5% in foreign-currency denominated investments

"SEC. 26-A. Fund Managers. - As part of its investment operations, the SSS mayappoint local or, in the absence thereof, foreign fund managers to manage theInvestment Reserve Fund, as it may deem appropriate.

"SEC. 26-B. Mortgagor Insurance Account. - (a) As part of its investment operations,the SSS shall act as insurer of all or part of its interest on SSS properties mortgaged tothe SSS, or lives of mortgagors whose properties are mortgaged to the SSS. For thispurpose, the SSS shall establish a separate account to be known as the "Mortgagors’ Insurance Account." All amounts received by the SSS in connection with the aforesaidinsurance operations shall be placed in the Mortgagors’ Insurance Account. The assetsand liabilities of the Mortgagors’ Insurance Account shall at all times be clearlyidentifiable and distinguishable from the assets and liabilities in all other accounts ofthe SSS. Notwithstanding any provision of law to the contrary, the assets held in theMortgagors’ Insurance Account shall not be chargeable with the liabilities arising out ofany other business the SSS may conduct but shall be held and applied exclusively for

the benefit of the owners or beneficiaries of the insurance contracts issued by the SSSunder this paragraph.

"(b) The SSS may insure any of its interest or part thereof with any private company orreinsurer. The Insurance Commission or its authorized representatives shall make anexamination into the financial condition and methods of transacting business of the SSSat least once in two (2) years, but such examination shall be limited to the insuranceoperation of the SSS as authorized under this paragraph and shall not embrace theother operations of the SSS; and the report of said examination shall be submitted tothe Commission and a copy thereof shall be furnished the Office of the President of thePhilippines within a reasonable time after the close of the examination: Provided, That

for each examination, the SSS shall pay to the Insurance Commission an amount equalto the actual expense of the Insurance Commission in the conduct of examination,including the salaries of the examiners and of the actuary of the Insurance Commission

who have been assigned to make such examination for the actual time spent in said



examination: Provided, further, That the general law on insurance and the rules andregulations promulgated thereunder shall have suppletory application insofar as it isnot in conflict with this Act and its rules and regulations.

"SEC. 27. Records and Reports. - The SSS President shall keep and cause to keeprecords of operations of the funds of the SSS and of disbursements thereof and allaccounts of payments made out of said funds. During the month of January of each

year, the SSS President shall prepare for submission to the President of the Philippinesand to Congress of the Philippines a report of operations of the SSS during thepreceding year, including statistical data on the number of persons covered and

benefited, their occupations and employment status, the duration and amount of benefits paid, the finances of the SSS at the close of the said year, andrecommendations. He shall also cause to be published in two (2) newspapers of generalcirculation in the Philippines a synopsis of the annual report, showing in particular thestatus of the finances of the SSS and the benefits administered.

"SEC. 28. Penal Clause. - (a) Whoever, for the purpose of causing any payment to bemade under this Act, or under an agreement thereunder, where none is authorized to bepaid, shall make or cause to be made false statement or representation as to anycompensation paid or received or whoever makes or causes to be made any falsestatement of a material fact in any claim for any benefit payable under this Act, orapplication for loan with the SSS, or whoever makes or causes to be made any falsestatement, representation, affidavit or document in connection with such claim or loan,shall suffer the penalties provided for in Article One hundred seventy-two of theRevised Penal Code.

"(b) Whoever shall obtain or receive any money or check under this Act or any

agreement thereunder, without being entitled thereto with intent to defraud anymember, employer or the SSS, shall be fined not less than Five thousand pesos(P5,000.00) nor more than Twenty thousand pesos (P20,000.00) and imprisoned fornot less than six (6) years and one (1) day nor more than twelve (12) years.

"(c) Whoever buys, sells, offers for sale, uses, transfers or takes or gives in exchange, orpledges or gives in pledge, except as authorized in this Act or in regulations madepursuant thereto, any stamp, coupon, ticket, book or other device, prescribed pursuantto Section Twenty-three hereof by the Commission for the collection or payment ofcontributions required herein, shall be fined not less than Five thousand pesos(P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or imprisoned for

not less than six (6) years and one (1) day nor more than twelve (12) years, or both, atthe discretion of the court.

"(d) Whoever, with intent to defraud, alters, forges, makes or counterfeits any stamp,coupon, ticket, book or other device prescribed by the Commission for the collection orpayment of any contribution required herein, or uses, sells, lends, or has in hispossession any such altered, forged or counterfeited materials, or makes, uses, sells orhas in his possession any such altered, forged, material in imitation of the material usedin the manufacture of such stamp, coupon, ticket, book or other device, shall be finednot less than Five thousand pesos (P5,000.00) non more than Twenty thousand pesos(P20,000.00) or imprisoned for not less than six years (6) and one (1) day nor more

than twelve (12) years, or both, at the discretion of the court.

"(e) Whoever fails or refuses to comply with the provisions of this Act or with the rulesand regulations promulgated by the Commission, shall be punished by a fine of not less



than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos(P20,000.00), or imprisonment for not less than six (6) years and one (1) day nor morethan twelve (12) years, or both, at the discretion of the court: Provided, That where the

violation consists in failure or refusal to register employees or himself, in case of thecovered self-employed or to deduct contributions from the employees’ compensationand remit the same to the SSS, the penalty shall be a fine of not less Five thousandpesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) andimprisonment for not less than six (6) years and one (1) day nor more than twelve (12)

years.

"(f) If the act or omission penalized by this Act be committed by an association,partnership, corporation or any other institution, its managing head, directors orpartners shall be liable for the penalties provided in this Act for the offense.

"(g) Any employee of the SSS who receives or keeps funds or property belonging,payable or deliverable to the SSS and who shall appropriate the same, or shall take ormisappropriate, or shall consent, or through abandonment or negligence, shall permitany other person to take such property or funds, wholly or partially, or shall otherwise

be guilty of misappropriation of such funds or property, shall suffer the penaltiesprovided in Article Two hundred seventeen of the Revised Penal Code.

"(h) Any employer who, after deducting the monthly contributions or loanamortizations from his employee’s compensation, fails to remit the said deduction tothe SSS within thirty (30) days from the date they became due, shall be presumed tohave misappropriated such contributions or loan amortizations and shall suffer thepenalties provided in Article Three hundred fifteen of the Revised Penal Code.

"(i) Criminal action arising from a violation of the provisions of this Act may becommenced by the SSS or the employee concerned either under this Act or inappropriate cases under the Revised Penal Code: Provided, That such criminal actionmay be filed by the SSS in the city or municipality where the SSS office is located, if the

violation was committed within its territorial jurisdiction or in Metro Manila, at theoption of the SSS.

"SEC. 29. Government Aid. - The establishment of the SSS shall not disqualify themembers and employers from receiving such government assistance, financial orotherwise, as may be provided.

"SEC. 30. Transitory Clause. - Any employer who is delinquent or has not remitted allcontributions due and payable to the SSS may, within six (6) months from theeffectivity of this Act, remit said contributions or submit a proposal to pay the same ininstallment within a period of not more than twelve (12) months from the effectivity ofthis Act without incurring the prescribed penalty, subject to the implementing rules andregulations which the Commission may prescribe: Provided, That the employer submitsthe corresponding collection lists together with the remittance or proposal to pay ininstallments: Provided, further, That in case the employer fails to remit contributions

within the six-month grace period or defaults in the payment of any amortizationprovided the approved proposal, the prescribed penalty shall be imposed from the timethe contributions first became due as provided in Section 22 (a) hereof."

SEC. 2. Separability Clause. - If any provision of this Act is declared invalid, the otherprovisions not affected thereby shall remain valid.



SEC. 3. Repealing Clause. - All laws, proclamations, executive orders, rules andregulations or parts thereof inconsistent with this Act are hereby repealed, modified oramended accordingly: Provided, That no person shall be deemed to be vested with anyproperty or other right by virtue of the enactment or operation of this Act.

SEC. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its completepublication in the Official Gazette or in at least two (2) national newspapers of generalcirculation whichever comes earlier.

Approved: May 01, 1997


AN ACT INCREASING MATERNITY BENEFITS IN FAVOR OF WOMEN WORKERS IN THE PRIVATE SECTOR, AMENDING FOR THE

PURPOSE SECTION 14-A OF REPUBLIC ACT NO. 1161, AS AMENDED, ANDFOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines inCongress assembled:

SECTION 1. Section 14-A of Republic Act No. 1161, as amended, is further amendedto read as follows:

"SEC. 14-A. Maternity Leave Benefit . - A covered female employee who has paid at least three monthly maternity contributions in the twelve-

month period preceding the semester of her childbirth, abortion ormiscarriage and who is currently employed shall be paid a daily maternity benefit equivalent to one hundred percent (100%) of her present basic salary, allowances and other benefits or the cash equivalent of such benefits for sixty (60) days subject to the following conditions:

"(a) That the employee shall have notified her employer of herpregnancy and the probable date of her childbirth which notice shall betransmitted to the SSS in accordance with the rules and regulations itmay provide;

"(b) That the payment shall be advanced by the employer in two equalinstallments within thirty (30) days from the filing of the maternity leaveapplication:

"(c) That in case of caesarian delivery, the employee shall be paid thedaily maternity benefit for seventy-eight (78) days;

"(d) That payment of daily maternity benefits shall be a bar to therecovery of sickness benefits provided by this Act for the samecompensable period of sixty (60) days for the same childbirth, abortion,or miscarriage;

"(e) That the maternity benefits provided under this Section shall bepaid only for the first four deliveries after March 13, 1973;



"(f) That the SSS shall immediately reimburse the employer of onehundred percent (100%) of the amount of maternity benefits advanced tothe employee by the employer upon receipt of satisfactory proof of suchpayment and legality thereof; and

"(g) That if an employee should give birth or suffer abortion ormiscarriage without the required contributions having been remitted forher by her employer to the SSS, or without the latter having beenpreviously notified by the employer of the time of the pregnancy, theemployer shall pay to the SSS damages equivalent to the benefits whichsaid employee would otherwise have been entitled to, and the SSS shallin turn pay such amount to the employee concerned."

SEC. 2. Nothing in this Act shall be construed as to diminish existing maternity benefits under present laws and collective bargaining agreements.

SEC. 3. All laws, executive orders, prodamations,.presidential decrees, rules andregulations, and other issuances, or parts hereof, inconsistent with the provisions ofthis Act are hereby repealed or modified accordingly.

SEC. 4. This Act shall take effect fifteen (15) days after its publication in the OfficialGazette or in at least two (2) national newspapers of general circulation, whichevercomes earlier.


AN ACT GRANTING PATERNITY LEAVE OF SEVEN (7) DAYS WITHFULL PAY TO ALL MARRIED MALE EMPLOYEES IN THE PRIVATE AND

PUBLIC SECTORS FOR THE FIRST FOUR (4) DELIVERIES OF THELEGITIMATE SPOUSE WITH WHOM HE IS COHABITING AND FOROTHER PURPOSES.

Be it enacted by the Senate and House of Representatives of the Philippines inCongress assembled:

SECTION 1. Short Title. - This Act shall be known as the " Paternity Leave Act of1996".

SECTION 2. Notwithstanding any law, rules and regulations to the contrary, everymarried male employee in the private and public sectors shall be entitled to a paternityleave of seven (7) days with full pay for the first four (4) deliveries of the legitimatespouse with whom he is cohabiting. The male employee applying for paternity leaveshall notify his employer of the pregnancy of his legitimate spouse and the expecteddate of such delivery.

For purposes, of this Act, delivery shall include childbirth or any miscarriage.

SECTION 3. Definition of Term. - For purposes of this Act, Paternity Leave refers tothe benefits granted to a married male employee allowing him not to report for work

for seven (7)days but continues to earn the compensation therefor, on the condition that his spousehas delivered a child or suffered a miscarriage for purposes of enabling him toeffectively lend



support to his wife in her period of recovery and/or in the nursing of the newly-bornchild.

SECTION 4. The Secretary of Labor and Employment, the Chairman of the CivilService Commission and the Secretary of Health shall, within thirty (30) days from theeffectivity ofthis Act, issue such rules and regulations necessary for the proper implementation ofthe provisions hereof.

SECTION 5. Any person, corporation, trust, firm, partnership, association or entityfound violating this Act or the rules and regulations promulgated thereunder shall bepunished by a fine not exceeding Twenty-five thousand pesos (P25,000) orimprisonment of not less than thirty (30)days nor more than six (6) months.

If the violation is committed by a corporation, trust or firm, partnership, associationor any other entity, the penalty of imprisonment shall be imposed on the entity'sresponsible officers, including, but not limited to, the president, vice-president, chiefexecutive officer, general manager, managing director or partner directly responsibletherefor.

SECTION 6. Nondiminution Clause. - Nothing in this Act shall be construed toreduce any existing benefits of any form granted under existing laws, decrees, executiveorders, or anycontract agreement or policy between employer and employee.

SECTION 7. Repealing Clause. - All laws, ordinances, rules, regulations, issuances,or parts thereof which are inconsistent with this Act are hereby repealed or modified

accordingly.

SECTION 8. Effectivity. - This Act shall take effect (15) days from its publication inthe Official Gazette or in at least two (2) newspapers of national circulation.


AN ACT PROVIDING FOR BENEFITS AND PRIVILEGES TO SOLO PARENTS ANDTHEIR CHILDREN, APPROPRIATING FUNDS THEREFOR AND FOR OTHER

PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines Congressassembled:

Section 1. Title. - This Act shall be known as the "Solo Parents' Welfare Act of 2000."

Section 2. Declaration of Policy. - It is the policy of the State to promote the family asthe foundation of the nation, strengthen its solidarity and ensure its total development.Towards this end, it shall develop a comprehensive program of services for soloparents and their children to be carried out by the Department of Social Welfare andDevelopment (DSWD), the Department of Health (DOH), the Department of Education,Culture and Sports (DECS), the Department of the Interior and Local Government

(DILG), the Commission on Higher Education (CHED), the Technical Education andSkills Development Authority (TESDA), the National Housing Authority (NHA), theDepartment of Labor and Employment (DOLE) and other related government andnongovernment agencies.



Section 3. Definition of Terms. - Whenever used in this Act, the following terms shallmean as follows:

(a) "Solo parent" - any individual who falls under any of the following categories:

(1) A woman who gives birth as a result of rape and other crimes againstchastity even without a final conviction of the offender: Provided , That themother keeps and raises the child;

(2) Parent left solo or alone with the responsibility of parenthood due todeath of spouse;

(3) Parent left solo or alone with the responsibility of parenthood while thespouse is detained or is serving sentence for a criminal conviction for atleast one (1) year;

(4) Parent left solo or alone with the responsibility of parenthood due tophysical and/or mental incapacity of spouse as certified by a publicmedical practitioner;

(5) Parent left solo or alone with the responsibility of parenthood due tolegal separation or de factoseparation from spouse for at least one (1)year, as long as he/she is entrusted with the custody of the children;

(6) Parent left solo or alone with the responsibility of parenthood due todeclaration of nullity or annulment of marriage as decreed by a court or bya church as long as he/she is entrusted with the custody of the children;

(7) Parent left solo or alone with the responsibility of parenthood due toabandonment of spouse for at least one (1) year;

(8) Unmarried mother/father who has preferred to keep and rear her/hischild/children instead of having others care for them or give them up to awelfare institution;

(9) Any other person who solely provides parental care and support to achild or children;

(10) Any family member who assumes the responsibility of head of familyas a result of the death, abandonment, disappearance or prolongedabsence of the parents or solo parent.

A change in the status or circumstance of the parent claiming benefitsunder this Act, such that he/she is no longer left alone with theresponsibility of parenthood, shall terminate his/her eligibility for thesebenefits.

(b) "Children" - refer to those living with and dependent upon the solo parent for

support who are unmarried, unemployed and not more than eighteen (18) yearsof age, or even over eighteen (18) years but are incapable of self-supportbecause of mental and/or physical defect/disability.



(c) "Parental responsibility" - with respect to their minor children shall refer to therights and duties of the parents as defined in Article 220 of Executive Order No.209, as amended, otherwise known as the "Family Code of the Philippines."

(d) "Parental leave" - shall mean leave benefits granted to a solo parent toenable him/her to perform parental duties and responsibilities where physicalpresence is required.

(e) "Flexible work schedule" - is the right granted to a solo parent employee tovary his/her arrival and departure time without affecting the core work hours asdefined by the employer.

Section 4. Criteria for Support. - Any solo parent whose income in the place of domicilefalls below the poverty threshold as set by the National Economic and Development Authority (NEDA) and subject to the assessment of the DSWD worker in the area shallbe eligible for assistance: Provided, however , That any solo parent whose income is

above the poverty threshold shall enjoy the benefits mentioned in Sections 6, 7 and 8 ofthis Act.

Section 5. Comprehensive Package of Social Development and Welfare Services. - Acomprehensive package of social development and welfare services for solo parentsand their families will be developed by the DSWD, DOH, DECS, CHED, TESDA, DOLE,NHA and DILG, in coordination with local government units and a nongovernmentalorganization with proven track record in providing services for solo parents.

The DSWD shall coordinate with concerned agencies the implementation of thecomprehensive package of social development and welfare services for solo parents

and their families. The package will initially include:

(a) Livelihood development services which include trainings on livelihood skills,basic business management, value orientation and the provision of seed capitalor job placement.

(b) Counseling services which include individual, peer group or familycounseling. This will focus on the resolution of personal relationship and roleconflicts.

(c) Parent effectiveness services which include the provision and expansion of

knowledge and skills of the solo parent on early childhood development,behavior management, health care, rights and duties of parents and children.

(d) Critical incidence stress debriefing which includes preventive stressmanagement strategy designed to assist solo parents in coping with crisissituations and cases of abuse.

(e) Special projects for individuals in need of protection which include temporaryshelter, counseling, legal assistance, medical care, self-concept or ego-building,crisis management and spiritual enrichment.

Section 6. Flexible Work Schedule. - The employer shall provide for a flexible workingschedule for solo parents: Provided, That the same shall not affect individual andcompany productivity: Provided, further, That any employer may request exemptionfrom the above requirements from the DOLE on certain meritorious grounds.



Section 7. Work Discrimination. - No employer shall discriminate against any soloparent employee with respect to terms and conditions of employment on account ofhis/her status.

Section 8. Parental Leave. - In addition to leave privileges under existing laws, parentalleave of not more than seven (7) working days every year shall be granted to any soloparent employee who has rendered service of at least one (1) year.

Section 9. Educational Benefits. - The DECS, CHED and TESDA shall provide thefollowing benefits and privileges:

(1) Scholarship programs for qualified solo parents and their children ininstitutions of basic, tertiary and technical/skills education; and

(2) Nonformal education programs appropriate for solo parents and theirchildren.

The DECS, CHED and TESDA shall promulgate rules and regulations for the properimplementation of this program.

Section 10. Housing Benefits. - Solo parents shall be given allocation in housingprojects and shall be provided with liberal terms of payment on said government low-cost housing projects in accordance with housing law provisions prioritizing applicantsbelow the poverty line as declared by the NEDA.

Section 11. Medical Assistance. - The DOH shall develop a comprehensive health careprogram for solo parents and their children. The program shall be implemented by the

DOH through their retained hospitals and medical centers and the local governmentunits (LGUs) through their provincial/district/city/municipal hospitals and rural healthunits (RHUs).

Section 12. Additional Powers and Functions of the DSWD. — The DSWD shallperform the following additional powers and functions relative to the welfare of soloparents and their families:

(a) Conduct research necessary to: (1) develop a new body of knowledge onsolo parents; (2) define executive and legislative measures needed to promoteand protect the interest of solo parents and their children; and (3) assess the

effectiveness of programs designed for disadvantaged solo parents and theirchildren;

(b) Coordinate the activities of various governmental and nongovernmentalorganizations engaged in promoting and protecting the interests of solo parentsand their children; and

(c) Monitor the implementation of the provisions of this Act and suggestmechanisms by which such provisions are effectively implemented.

Section 13. Implementing Rules and Regulations. - An interagency committee headedby the DSWD, in coordination with the DOH, DECS, CHED, TESDA, DOLE, NHA, andDILG is hereby established which shall formulate, within ninety (90) days upon the



effectivity of this Act, the implementing rules and regulations in consultation with thelocal government units, nongovernment organizations and people's organizations.

Section 14. Appropriations. - The amount necessary to carry out the provisions of this Act shall be included in the budget of concerned government agencies in the General Appropriations Act of the year following its enactment into law andthereafter.1awphil.net

Section 15. Repealing Clause. - All laws, decrees, executive orders, administrativeorders or parts thereof inconsistent with the provisions of this Act are hereby repealed,amended or modified accordingly.

Section 16. Separability Clause. - If any provision of this Act is held invalid orunconstitutional, other provisions not affected thereby shall continue to be in full forceand effect.

Section 17. Effectivity Clause. - This Act shall take effect fifteen (15) days following itscomplete publication in theOfficial Gazette or in at least two (2) newspaper of generalcirculation.

Republic Act No. 9262 March 08, 2004

AN ACT DEFINING VIOLENCE AGAINST WOMEN AND THEIR CHILDREN,PROVIDING FOR PROTECTIVE MEASURES FOR VICTIMS, PRESCRIBING

PENALTIES THEREFORE, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled :

SECTION 1. Short Title.- This Act shall be known as the "Anti-Violence Against Womenand Their Children Act of 2004".

SECTION 2. Declaration of Policy .- It is hereby declared that the State values thedignity of women and children and guarantees full respect for human rights. The Statealso recognizes the need to protect the family and its members particularly women andchildren, from violence and threats to their personal safety and security.

Towards this end, the State shall exert efforts to address violence committed against

women and children in keeping with the fundamental freedoms guaranteed under theConstitution and the Provisions of the Universal Declaration of Human Rights, theconvention on the Elimination of all forms of discrimination Against Women, Conventionon the Rights of the Child and other international human rights instruments of which thePhilippines is a party.

SECTION 3. Definition of Terms.- As used in this Act,

(a) "Violence against women and their children" refers to any act or a series ofacts committed by any person against a woman who is his wife, former wife, oragainst a woman with whom the person has or had a sexual or datingrelationship, or with whom he has a common child, or against her child whetherlegitimate or illegitimate, within or without the family abode, which result in or islikely to result in physical, sexual, psychological harm or suffering, or economic



abuse including threats of such acts, battery, assault, coercion, harassment orarbitrary deprivation of liberty. It includes, but is not limited to, the following acts:

A. "Physical Violence" refers to acts that include bodily or physical harm;

B. "Sexual violence" refers to an act which is sexual in nature, committedagainst a woman or her child. It includes, but is not limited to:

a) rape, sexual harassment, acts of lasciviousness, treating awoman or her child as a sex object, making demeaning andsexually suggestive remarks, physically attacking the sexual partsof the victim's body, forcing her/him to watch obscene publicationsand indecent shows or forcing the woman or her child to doindecent acts and/or make films thereof, forcing the wife andmistress/lover to live in the conjugal home or sleep together in thesame room with the abuser;

b) acts causing or attempting to cause the victim to engage in anysexual activity by force, threat of force, physical or other harm orthreat of physical or other harm or coercion;

c) Prostituting the woman or child.

C. "Psychological violence" refers to acts or omissions causing or likely tocause mental or emotional suffering of the victim such as but not limited tointimidation, harassment, stalking, damage to property, public ridicule orhumiliation, repeated verbal abuse and mental infidelity. It includes

causing or allowing the victim to witness the physical, sexual orpsychological abuse of a member of the family to which the victimbelongs, or to witness pornography in any form or to witness abusiveinjury to pets or to unlawful or unwanted deprivation of the right to custodyand/or visitation of common children.

D. "Economic abuse" refers to acts that make or attempt to make awoman financially dependent which includes, but is not limited to thefollowing:

1. withdrawal of financial support or preventing the victim from

engaging in any legitimate profession, occupation, business oractivity, except in cases wherein the other spouse/partner objectson valid, serious and moral grounds as defined in Article 73 of theFamily Code;

2. deprivation or threat of deprivation of financial resources and theright to the use and enjoyment of the conjugal, community orproperty owned in common;

3. destroying household property;

4. controlling the victims' own money or properties or solelycontrolling the conjugal money or properties.



(b) "Battery " refers to an act of inflicting physical harm upon the woman or herchild resulting to the physical and psychological or emotional distress.

(c) "Battered Woman Syndrome" refers to a scientifically defined pattern ofpsychological and behavioral symptoms found in women living in batteringrelationships as a result of cumulative abuse.

(d) "Stalking " refers to an intentional act committed by a person who, knowinglyand without lawful justification follows the woman or her child or places thewoman or her child under surveillance directly or indirectly or a combinationthereof.

(e) "Dating relationship" refers to a situation wherein the parties live as husbandand wife without the benefit of marriage or are romantically involved over timeand on a continuing basis during the course of the relationship. A casualacquaintance or ordinary socialization between two individuals in a business or

social context is not a dating relationship.

(f) "Sexual relations" refers to a single sexual act which may or may not result inthe bearing of a common child.

(g) "Safe place or shelter " refers to any home or institution maintained ormanaged by the Department of Social Welfare and Development (DSWD) or byany other agency or voluntary organization accredited by the DSWD for thepurposes of this Act or any other suitable place the resident of which is willingtemporarily to receive the victim.

(h) "Children" refers to those below eighteen (18) years of age or older but areincapable of taking care of themselves as defined under Republic Act No. 7610. As used in this Act, it includes the biological children of the victim and otherchildren under her care.

SECTION 4. Construction.- This Act shall be liberally construed to promote theprotection and safety of victims of violence against women and their children.

SECTION 5. Acts of Violence Against Women and Their Children.- The crime ofviolence against women and their children is committed through any of the followingacts:

(a) Causing physical harm to the woman or her child;

(b) Threatening to cause the woman or her child physical harm;

(c) Attempting to cause the woman or her child physical harm;

(d) Placing the woman or her child in fear of imminent physical harm;

(e) Attempting to compel or compelling the woman or her child to engage in

conduct which the woman or her child has the right to desist from or desist fromconduct which the woman or her child has the right to engage in, or attempting torestrict or restricting the woman's or her child's freedom of movement or conductby force or threat of force, physical or other harm or threat of physical or other



harm, or intimidation directed against the woman or child. This shall include, butnot limited to, the following acts committed with the purpose or effect ofcontrolling or restricting the woman's or her child's movement or conduct:

(1) Threatening to deprive or actually depriving the woman or her child ofcustody to her/his family;

(2) Depriving or threatening to deprive the woman or her children offinancial support legally due her or her family, or deliberately providing thewoman's children insufficient financial support;

(3) Depriving or threatening to deprive the woman or her child of a legalright;

(4) Preventing the woman in engaging in any legitimate profession,occupation, business or activity or controlling the victim's own mon4ey or

properties, or solely controlling the conjugal or common money, orproperties;

(f) Inflicting or threatening to inflict physical harm on oneself for the purpose ofcontrolling her actions or decisions;

(g) Causing or attempting to cause the woman or her child to engage in anysexual activity which does not constitute rape, by force or threat of force,physical harm, or through intimidation directed against the woman or her child orher/his immediate family;

(h) Engaging in purposeful, knowing, or reckless conduct, personally or throughanother, that alarms or causes substantial emotional or psychological distress tothe woman or her child. This shall include, but not be limited to, the followingacts:

(1) Stalking or following the woman or her child in public or private places;

(2) Peering in the window or lingering outside the residence of the womanor her child;

(3) Entering or remaining in the dwelling or on the property of the woman

or her child against her/his will;

(4) Destroying the property and personal belongings or inflicting harm toanimals or pets of the woman or her child; and

(5) Engaging in any form of harassment or violence;

(i) Causing mental or emotional anguish, public ridicule or humiliation to thewoman or her child, including, but not limited to, repeated verbal and emotionalabuse, and denial of financial support or custody of minor children of access to

the woman's child/children.

SECTION 6. Penalties.- The crime of violence against women and their children, underSection 5 hereof shall be punished according to the following rules:



(a) Acts falling under Section 5(a) constituting attempted, frustrated orconsummated parricide or murder or homicide shall be punished in accordancewith the provisions of the Revised Penal Code.

If these acts resulted in mutilation, it shall be punishable in accordance with theRevised Penal Code; those constituting serious physical injuries shall have thepenalty of prison mayor; those constituting less serious physical injuries shall bepunished by prision correccional; and those constituting slight physical injuriesshall be punished by arresto mayor.

Acts falling under Section 5(b) shall be punished by imprisonment of twodegrees lower than the prescribed penalty for the consummated crime asspecified in the preceding paragraph but shall in no case be lower than arrestomayor.

(b) Acts falling under Section 5(c) and 5(d) shall be punished by arresto mayor;

(c) Acts falling under Section 5(e) shall be punished by prision correccional;

(d) Acts falling under Section 5(f) shall be punished by arresto mayor;

(e) Acts falling under Section 5(g) shall be punished by prision mayor;

(f) Acts falling under Section 5(h) and Section 5(i) shall be punished by prisionmayor.

If the acts are committed while the woman or child is pregnant or committed in

the presence of her child, the penalty to be applied shall be the maximum periodof penalty prescribed in the section.

In addition to imprisonment, the perpetrator shall (a) pay a fine in the amount ofnot less than One hundred thousand pesos (P100,000.00) but not more thanthree hundred thousand pesos (300,000.00); (b) undergo mandatorypsychological counseling or psychiatric treatment and shall report compliance tothe court.

SECTION 7. Venue.- The Regional Trial Court designated as a Family Court shall haveoriginal and exclusive jurisdiction over cases of violence against women and their

children under this law. In the absence of such court in the place where the offense wascommitted, the case shall be filed in the Regional Trial Court where the crime or any ofits elements was committed at the option of the compliant.

SECTION 8. Protection Orders.- A protection order is an order issued under this act forthe purpose of preventing further acts of violence against a woman or her childspecified in Section 5 of this Act and granting other necessary relief. The relief grantedunder a protection order serve the purpose of safeguarding the victim from furtherharm, minimizing any disruption in the victim's daily life, and facilitating the opportunityand ability of the victim to independently regain control over her life. The provisions ofthe protection order shall be enforced by law enforcement agencies. The protectionorders that may be issued under this Act are the barangay protection order (BPO),temporary protection order (TPO) and permanent protection order (PPO). Theprotection orders that may be issued under this Act shall include any, some or all of thefollowing reliefs:



(a) Prohibition of the respondent from threatening to commit or committing,personally or through another, any of the acts mentioned in Section 5 of this Act;

(b) Prohibition of the respondent from harassing, annoying, telephoning,contacting or otherwise communicating with the petitioner, directly or indirectly;

(c) Removal and exclusion of the respondent from the residence of thepetitioner, regardless of ownership of the residence, either temporarily for thepurpose of protecting the petitioner, or permanently where no property rights areviolated, and if respondent must remove personal effects from the residence, thecourt shall direct a law enforcement agent to accompany the respondent hasgathered his things and escort respondent from the residence;

(d) Directing the respondent to stay away from petitioner and designated familyor household member at a distance specified by the court, and to stay away fromthe residence, school, place of employment, or any specified place frequented

by the petitioner and any designated family or household member;

(e) Directing lawful possession and use by petitioner of an automobile and otheressential personal effects, regardless of ownership, and directing the appropriatelaw enforcement officer to accompany the petitioner to the residence of theparties to ensure that the petitioner is safely restored to the possession of theautomobile and other essential personal effects, or to supervise the petitioner'sor respondent's removal of personal belongings;

(f) Granting a temporary or permanent custody of a child/children to thepetitioner;

(g) Directing the respondent to provide support to the woman and/or her child ifentitled to legal support. Notwithstanding other laws to the contrary, the courtshall order an appropriate percentage of the income or salary of the respondentto be withheld regularly by the respondent's employer for the same to beautomatically remitted directly to the woman. Failure to remit and/or withhold orany delay in the remittance of support to the woman and/or her child without justifiable cause shall render the respondent or his employer liable for indirectcontempt of court;

(h) Prohibition of the respondent from any use or possession of any firearm or

deadly weapon and order him to surrender the same to the court for appropriatedisposition by the court, including revocation of license and disqualification toapply for any license to use or possess a firearm. If the offender is a lawenforcement agent, the court shall order the offender to surrender his firearmand shall direct the appropriate authority to investigate on the offender and takeappropriate action on matter;

(i) Restitution for actual damages caused by the violence inflicted, including, butnot limited to, property damage, medical expenses, childcare expenses and lossof income;

(j) Directing the DSWD or any appropriate agency to provide petitioner mayneed; and



(k) Provision of such other forms of relief as the court deems necessary toprotect and provide for the safety of the petitioner and any designated family orhousehold member, provided petitioner and any designated family or householdmember consents to such relief.

Any of the reliefs provided under this section shall be granted even in theabsence of a decree of legal separation or annulment or declaration of absolutenullity of marriage.

The issuance of a BPO or the pendency of an application for BPO shall notpreclude a petitioner from applying for, or the court from granting a TPO or PPO.

SECTION 9. Who may file Petition for Protection Orders. – A petition for protectionorder may be filed by any of the following:

(a) the offended party;

(b) parents or guardians of the offended party;

(c) ascendants, descendants or collateral relatives within the fourth civil degreeof consanguinity or affinity;

(d) officers or social workers of the DSWD or social workers of local governmentunits (LGUs);

(e) police officers, preferably those in charge of women and children's desks;

(f) Punong Barangay or Barangay Kagawad ;

(g) lawyer, counselor, therapist or healthcare provider of the petitioner;

(h) At least two (2) concerned responsible citizens of the city or municipalitywhere the violence against women and their children occurred and who haspersonal knowledge of the offense committed.

SECTION 10. Where to Apply for a Protection Order . – Applications for BPOs shallfollow the rules on venue under Section 409 of the Local Government Code of 1991and its implementing rules and regulations. An application for a TPO or PPO may be

filed in the regional trial court, metropolitan trial court, municipal trial court, municipalcircuit trial court with territorial jurisdiction over the place of residence of the petitioner:Provided, however, That if a family court exists in the place of residence of thepetitioner, the application shall be filed with that court.

SECTION 11. How to Apply for a Protection Order . – The application for a protectionorder must be in writing, signed and verified under oath by the applicant. It may be filedas an independent action or as incidental relief in any civil or criminal case the subjectmatter or issues thereof partakes of a violence as described in this Act. A standardprotection order application form, written in English with translation to the major local

languages, shall be made available to facilitate applications for protections order, andshall contain, among other, the following information:

(a) names and addresses of petitioner and respondent;



(b) description of relationships between petitioner and respondent;

(c) a statement of the circumstances of the abuse;

(d) description of the reliefs requested by petitioner as specified in Section 8herein;

(e) request for counsel and reasons for such;

(f) request for waiver of application fees until hearing; and

(g) an attestation that there is no pending application for a protection order inanother court.

If the applicants is not the victim, the application must be accompanied by an affidavit ofthe applicant attesting to (a) the circumstances of the abuse suffered by the victim and

(b) the circumstances of consent given by the victim for the filling of the application.When disclosure of the address of the victim will pose danger to her life, it shall be sostated in the application. In such a case, the applicant shall attest that the victim isresiding in the municipality or city over which court has territorial jurisdiction, and shallprovide a mailing address for purpose of service processing.

An application for protection order filed with a court shall be considered an applicationfor both a TPO and PPO.

Barangay officials and court personnel shall assist applicants in the preparation of theapplication. Law enforcement agents shall also extend assistance in the application for

protection orders in cases brought to their attention.

SECTION 12. Enforceability of Protection Orders. – All TPOs and PPOs issued underthis Act shall be enforceable anywhere in the Philippines and a violation thereof shall bepunishable with a fine ranging from Five Thousand Pesos (P5,000.00) to FiftyThousand Pesos (P50,000.00) and/or imprisonment of six (6) months.

SECTION 13. Legal Representation of Petitioners for Protection Order . – If the womanor her child requests in the applications for a protection order for the appointment ofcounsel because of lack of economic means to hire a counsel de parte, the court shallimmediately direct the Public Attorney's Office (PAO) to represent the petitioner in the

hearing on the application. If the PAO determines that the applicant can afford to hirethe services of a counsel de parte, it shall facilitate the legal representation of thepetitioner by a counsel de parte. The lack of access to family or conjugal resources bythe applicant, such as when the same are controlled by the perpetrator, shall qualify thepetitioner to legal representation by the PAO.

However, a private counsel offering free legal service is not barred from representingthe petitioner.

SECTION 14. Barangay Protection Orders (BPOs); Who May Issue and How. - Barangay Protection Orders (BPOs) refer to the protection order issued by the PunongBarangay ordering the perpetrator to desist from committing acts under Section 5 (a)and (b) of this Act. A Punong Barangay who receives applications for a BPO shall issuethe protection order to the applicant on the date of filing after ex parte determination of



the basis of the application. If the Punong Barangay is unavailable to act on theapplication for a BPO, the application shall be acted upon by any available BarangayKagawad. If the BPO is issued by a Barangay Kagawad the order must beaccompanied by an attestation by the Barangay Kagawad that the PunongBarangay was unavailable at the time for the issuance of the BPO. BPOs shall beeffective for fifteen (15) days. Immediately after the issuance of an ex parte BPO,the Punong Barangay or Barangay Kagawad shall personally serve a copy of the sameon the respondent, or direct any barangay official to effect is personal service.

The parties may be accompanied by a non-lawyer advocate in any proceeding beforethe Punong Barangay.

SECTION 15. Temporary Protection Orders. – Temporary Protection Orders (TPOs)refers to the protection order issued by the court on the date of filing of the applicationafter ex parte determination that such order should be issued. A court may grant in aTPO any, some or all of the reliefs mentioned in this Act and shall be effective for thirty

(30) days. The court shall schedule a hearing on the issuance of a PPO prior to or onthe date of the expiration of the TPO. The court shall order the immediate personalservice of the TPO on the respondent by the court sheriff who may obtain theassistance of law enforcement agents for the service. The TPO shall include notice ofthe date of the hearing on the merits of the issuance of a PPO.

SECTION 16. Permanent Protection Orders. – Permanent Protection Order (PPO)refers to protection order issued by the court after notice and hearing.

Respondents non-appearance despite proper notice, or his lack of a lawyer, or the non-availability of his lawyer shall not be a ground for rescheduling or postponing the

hearing on the merits of the issuance of a PPO. If the respondents appears withoutcounsel on the date of the hearing on the PPO, the court shall appoint a lawyer for therespondent and immediately proceed with the hearing. In case the respondent fails toappear despite proper notice, the court shall allow ex parte presentation of the evidenceby the applicant and render judgment on the basis of the evidence presented. The courtshall allow the introduction of any history of abusive conduct of a respondent even if thesame was not directed against the applicant or the person for whom the applicant ismade.

The court shall, to the extent possible, conduct the hearing on the merits of theissuance of a PPO in one (1) day. Where the court is unable to conduct the hearing

within one (1) day and the TPO issued is due to expire, the court shall continuouslyextend or renew the TPO for a period of thirty (30) days at each particular time untilfinal judgment is issued. The extended or renewed TPO may be modified by the courtas may be necessary or applicable to address the needs of the applicant.

The court may grant any, some or all of the reliefs specified in Section 8 hereof in aPPO. A PPO shall be effective until revoked by a court upon application of the person inwhose favor the order was issued. The court shall ensure immediate personal serviceof the PPO on respondent.

The court shall not deny the issuance of protection order on the basis of the lapse oftime between the act of violence and the filing of the application.

Regardless of the conviction or acquittal of the respondent, the Court must determinewhether or not the PPO shall become final. Even in a dismissal, a PPO shall be granted



as long as there is no clear showing that the act from which the order might arise didnot exist.

SECTION 17. Notice of Sanction in Protection Orders. – The following statement mustbe printed in bold-faced type or in capital letters on the protection order issued bythe Punong Barangay or court:

"VIOLATION OF THIS ORDER IS PUNISHABLE BY LAW."

SECTION 18. Mandatory Period For Acting on Applications For Protection Orders – Failure to act on an application for a protection order within the reglementary periodspecified in the previous section without justifiable cause shall render the official or judge administratively liable.

SECTION 19. Legal Separation Cases. – In cases of legal separation, where violenceas specified in this Act is alleged, Article 58 of the Family Code shall not apply. The

court shall proceed on the main case and other incidents of the case as soon aspossible. The hearing on any application for a protection order filed by the petitionermust be conducted within the mandatory period specified in this Act.

SECTION 20. Priority of Application for a Protection Order. – Ex parte and adversarialhearings to determine the basis of applications for a protection order under this Actshall have priority over all other proceedings. Barangay officials and the courts shallschedule and conduct hearings on applications for a protection order under this Actabove all other business and, if necessary, suspend other proceedings in order to hearapplications for a protection order.

SECTION 21. Violation of Protection Orders. –

A complaint for a violation of a BPOissued under this Act must be filed directly with any municipal trial court, metropolitantrial court, or municipal circuit trial court that has territorial jurisdiction over the barangaythat issued the BPO. Violation of a BPO shall be punishable by imprisonment of thirty(30) days without prejudice to any other criminal or civil action that the offended partymay file for any of the acts committed.

A judgement of violation of a BPO ma be appealed according to the Rules of Court.During trial and upon judgment, the trial court may motu proprio issue a protection orderas it deems necessary without need of an application.

Violation of any provision of a TPO or PPO issued under this Act shall constitutecontempt of court punishable under Rule 71 of the Rules of Court, without prejudice toany other criminal or civil action that the offended party may file for any of the actscommitted.

SECTION 22. Applicability of Protection Orders to Criminal Cases. – The foregoingprovisions on protection orders shall be applicable in impliedly instituted with thecriminal actions involving violence against women and their children.

SECTION 23. Bond to Keep the Peace. – The Court may order any person againstwhom a protection order is issued to give a bond to keep the peace, to present twosufficient sureties who shall undertake that such person will not commit the violencesought to be prevented.



Should the respondent fail to give the bond as required, he shall be detained for aperiod which shall in no case exceed six (6) months, if he shall have been prosecutedfor acts punishable under Section 5(a) to 5(f) and not exceeding thirty (30) days, if foracts punishable under Section 5(g) to 5(I).

The protection orders referred to in this section are the TPOs and the PPOs issued onlyby the courts.

SECTION 24. Prescriptive Period. – Acts falling under Sections 5(a) to 5(f) shallprescribe in twenty (20) years. Acts falling under Sections 5(g) to 5(I) shall prescribe inten (10) years.

SECTION 25. Public Crime. – Violence against women and their children shall beconsidered a public offense which may be prosecuted upon the filing of a complaint byany citizen having personal knowledge of the circumstances involving the commissionof the crime.

SECTION 26. Battered Woman Syndrome as a Defense. – Victim-survivors who arefound by the courts to be suffering from battered woman syndrome do not incur anycriminal and civil liability notwithstanding the absence of any of the elements for justifying circumstances of self-defense under the Revised Penal Code.

In the determination of the state of mind of the woman who was suffering from batteredwoman syndrome at the time of the commission of the crime, the courts shall beassisted by expert psychiatrists/ psychologists.

SECTION 27. Prohibited Defense. – Being under the influence of alcohol, any illicit

drug, or any other mind-altering substance shall not be a defense under this Act.

SECTION 28. Custody of children. – The woman victim of violence shall be entitled tothe custody and support of her child/children. Children below seven (7) years old olderbut with mental or physical disabilities shall automatically be given to the mother, withright to support, unless the court finds compelling reasons to order otherwise.

A victim who is suffering from battered woman syndrome shall not be disqualified fromhaving custody of her children. In no case shall custody of minor children be given tothe perpetrator of a woman who is suffering from Battered woman syndrome.

SECTION 29. Duties of Prosecutors/Court Personnel . –

Prosecutors and courtpersonnel should observe the following duties when dealing with victims under this Act:

a) communicate with the victim in a language understood by the woman or herchild; and

b) inform the victim of her/his rights including legal remedies available andprocedure, and privileges for indigent litigants.

SECTION 30. Duties of Barangay Officials and Law Enforcers. – Barangay officials andlaw enforcers shall have the following duties:



(a) respond immediately to a call for help or request for assistance or protectionof the victim by entering the necessary whether or not a protection order hasbeen issued and ensure the safety of the victim/s;

(b) confiscate any deadly weapon in the possession of the perpetrator or withinplain view;

(c) transport or escort the victim/s to a safe place of their choice or to a clinic orhospital;

(d) assist the victim in removing personal belongs from the house;

(e) assist the barangay officials and other government officers and employeeswho respond to a call for help;

(f) ensure the enforcement of the Protection Orders issued by the Punong

Barangy or the courts;

(g) arrest the suspected perpetrator wiithout a warrant when any of the acts ofviolence defined by this Act is occurring, or when he/she has personalknowledge that any act of abuse has just been committed, and there is imminentdanger to the life or limb of the victim as defined in this Act; and

(h) immediately report the call for assessment or assistance of the DSWD, socialWelfare Department of LGUs or accredited non-government organizations(NGOs).

Any barangay official or law enforcer who fails to report the incident shall be liable for afine not exceeding Ten Thousand Pesos (P10,000.00) or whenever applicable criminal,civil or administrative liability.

SECTION 31. Healthcare Provider Response to Abuse – Any healthcare provider,including, but not limited to, an attending physician, nurse, clinician, barangay healthworker, therapist or counselor who suspects abuse or has been informed by the victimof violence shall:

(a) properly document any of the victim's physical, emotional or psychologicalinjuries;

(b) properly record any of victim's suspicions, observations and circumstances ofthe examination or visit;

(c) automatically provide the victim free of charge a medical certificateconcerning the examination or visit;

(d) safeguard the records and make them available to the victim upon request atactual cost; and

(e) provide the victim immediate and adequate notice of rights and remediesprovided under this Act, and services available to them.



SECTION 32. Duties of Other Government Agencies and LGUs – Other governmentagencies and LGUs shall establish programs such as, but not limited to, education andinformation campaign and seminars or symposia on the nature, causes, incidence andconsequences of such violence particularly towards educating the public on its socialimpacts.

It shall be the duty of the concerned government agencies and LGU's to ensure thesustained education and training of their officers and personnel on the prevention ofviolence against women and their children under the Act.

SECTION 33. Prohibited Acts. – A Punong Barangay, Barangay Kagawad or the courthearing an application for a protection order shall not order, direct, force or in any wayunduly influence he applicant for a protection order to compromise or abandon any ofthe reliefs sought in the application for protection under this Act. Section 7 of the FamilyCourts Act of 1997 and Sections 410, 411, 412 and 413 of the Local Government Codeof 1991 shall not apply in proceedings where relief is sought under this Act.

Failure to comply with this Section shall render the official or judge administrativelyliable.

SECTION 34. Persons Intervening Exempt from Liability. – In every case of violenceagainst women and their children as herein defined, any person, private individual orpolice authority or barangay official who, acting in accordance with law, responds orintervenes without using violence or restraint greater than necessary to ensure thesafety of the victim, shall not be liable for any criminal, civil or administrative liabilityresulting therefrom.

SECTION 35. Rights of Victims. –

In addition to their rights under existing laws, victimsof violence against women and their children shall have the following rights:

(a) to be treated with respect and dignity;

(b) to avail of legal assistance form the PAO of the Department of Justice (DOJ)or any public legal assistance office;

(c) To be entitled to support services form the DSWD and LGUs'

(d) To be entitled to all legal remedies and support as provided for under the

Family Code; and

(e) To be informed of their rights and the services available to them includingtheir right to apply for a protection order.

SECTION 36. Damages. – Any victim of violence under this Act shall be entitled toactual, compensatory, moral and exemplary damages.

SECTION 37. Hold Departure Order. – The court shall expedite the process of issuanceof a hold departure order in cases prosecuted under this Act.

SECTION 38. Exemption from Payment of Docket Fee and Other Expenses. – If thevictim is an indigent or there is an immediate necessity due to imminent danger orthreat of danger to act on an application for a protection order, the court shall accept



the application without payment of the filing fee and other fees and of transcript ofstenographic notes.

SECTION 39. Inter-Agency Council on Violence Against Women and Their Children(IAC-VAWC). In pursuance of the abovementioned policy, there is hereby establishedan Inter-Agency Council on Violence Against Women and their children, hereinafterknown as the Council, which shall be composed of the following agencies:

(a) Department of Social Welfare and Development (DSWD);

(b) National Commission on the Role of Filipino Women (NCRFW);

(c) Civil Service Commission (CSC);

(d) Commission on Human rights (CHR)

(e) Council for the Welfare of Children (CWC);

(f) Department of Justice (DOJ);

(g) Department of the Interior and Local Government (DILG);

(h) Philippine National Police (PNP);

(i) Department of Health (DOH);

(j) Department of Education (DepEd);

(k) Department of Labor and Employment (DOLE); and

(l) National Bureau of Investigation (NBI).

These agencies are tasked to formulate programs and projects to eliminate VAW basedon their mandates as well as develop capability programs for their employees tobecome more sensitive to the needs of their clients. The Council will also serve as themonitoring body as regards to VAW initiatives.

The Council members may designate their duly authorized representative who shallhave a rank not lower than an assistant secretary or its equivalent. Theserepresentatives shall attend Council meetings in their behalf, and shall receiveemoluments as may be determined by the Council in accordance with existing budgetand accounting rules and regulations.

SECTION 40. Mandatory Programs and Services for Victims. – The DSWD, and LGU'sshall provide the victims temporary shelters, provide counseling, psycho-social servicesand /or, recovery, rehabilitation programs and livelihood assistance.

The DOH shall provide medical assistance to victims.

SECTION 41. Counseling and Treatment of Offenders. – The DSWD shall providerehabilitative counseling and treatment to perpetrators towards learning constructiveways of coping with anger and emotional outbursts and reforming their ways. When



necessary, the offender shall be ordered by the Court to submit to psychiatric treatmentor confinement.

SECTION 42. Training of Persons Involved in Responding to Violence Against Womenand their Children Cases. – All agencies involved in responding to violence againstwomen and their children cases shall be required to undergo education and training toacquaint them with:

a. the nature, extend and causes of violence against women and their children;

b. the legal rights of, and remedies available to, victims of violence againstwomen and their children;

c. the services and facilities available to victims or survivors;

d. the legal duties imposed on police officers to make arrest and to offer

protection and assistance; and

e. techniques for handling incidents of violence against women and their childrenthat minimize the likelihood of injury to the officer and promote the safety of thevictim or survivor.

The PNP, in coordination with LGU's shall establish an education and training programfor police officers and barangay officials to enable them to properly handle cases ofviolence against women and their children.

SECTION 43. Entitled to Leave. – Victims under this Act shall be entitled to take a paid

leave of absence up to ten (10) days in addition to other paid leaves under the LaborCode and Civil Service Rules and Regulations, extendible when the necessity arises asspecified in the protection order.

Any employer who shall prejudice the right of the person under this section shall bepenalized in accordance with the provisions of the Labor Code and Civil Service Rulesand Regulations. Likewise, an employer who shall prejudice any person for assisting aco-employee who is a victim under this Act shall likewise be liable for discrimination.

SECTION 44. Confidentiality. – All records pertaining to cases of violence againstwomen and their children including those in the barangay shall be confidential and all

public officers and employees and public or private clinics to hospitals shall respect theright to privacy of the victim. Whoever publishes or causes to be published, in anyformat, the name, address, telephone number, school, business address, employer, orother identifying information of a victim or an immediate family member, without thelatter's consent, shall be liable to the contempt power of the court.

Any person who violates this provision shall suffer the penalty of one (1) yearimprisonment and a fine of not more than Five Hundred Thousand pesos(P500,000.00).

SECTION 45. Funding – The amount necessary to implement the provisions of this Actshall be included in the annual General Appropriations Act (GAA).



The Gender and Development (GAD) Budget of the mandated agencies and LGU'sshall be used to implement services for victim of violence against women and theirchildren.

SECTION 46. Implementing Rules and Regulations. – Within six (6) months from theapproval of this Act, the DOJ, the NCRFW, the DSWD, the DILG, the DOH, and thePNP, and three (3) representatives from NGOs to be identified by the NCRFW, shallpromulgate the Implementing Rules and Regulations (IRR) of this Act.

SECTION 47. Suppletory Application – For purposes of this Act, the Revised PenalCode and other applicable laws, shall have suppletory application.

SECTION 48. Separability Clause. – If any section or provision of this Act is heldunconstitutional or invalid, the other sections or provisions shall not be affected.

SECTION 49. Repealing Clause – All laws, Presidential decrees, executive orders and

rules and regulations, or parts thereof, inconsistent with the provisions of this Act arehereby repealed or modified accordingly.

SECTION 50. Effectivity – This Act shall take effect fifteen (15) days from the date of itscomplete publication in at least two (2) newspapers of general circulation.


AN ACT TO AMEND COMMONWEALTH ACT NUMBERED ONE HUNDRED AND

EIGHTY-SIX ENTITLED "AN ACT TO CREATE AND ESTABLISH A GOVERNMENT

SERVICE INSURANCE SYSTEM, TO PROVIDE FOR ITS ADMINISTRATION, AND TO

APPROPRIATE THE NECESSARY FUNDS THEREFOR," AND TO PROVIDERETIREMENT INSURANCE AND FOR OTHER PURPOSES

SECTION 1. Subsections (a), (d), and (f) of section two of Commonwealth Act Numbered One

hundred and eighty-six are hereby amended to read as follows and subsection (g) is hereby

added:

"SEC. 2. Definitions. — When used in this Act the following terms shall, unless the context

otherwise indicates, have the following respective meanings: cdt

"(a) 'Employer' shall mean the National or a local government, an agency, board, or corporation

controlled or owned by the Government. "Employee" shall mean any Filipino citizen in theservice of said "employer".

"(d) 'Member' shall mean any person insured in the System.

"(f) 'Membership policy' shall mean a life insurance policy for an amount, the monthly premium

of which is equivalent to two, five or six per centum of an employee's monthly salary or

compensation.

"(g) 'Regular officer' or 'enlisted man' shall mean one whose commission or enlistment is in the

regular force of the Armed Forces of the Philippines and not in the reserve force thereof."

SECTION 2. Section four of Commonwealth Act Numbered One hundred and eighty-six is

hereby amended to read as follows:



"SEC. 4. Scope of application of System. — (a) Membership in the System shall be compulsory

upon all regularly and permanently appointed employees, including those whose tenure of office

is fixed or limited by law; upon all teachers except only those who are substitutes; and upon all

regular officers and enlisted men of the Armed Forces of the Philippines: Provided, That it shall

be compulsory upon regularly and permanently appointed employees of a municipal government

below first class only if and when said government has joined the System under such terms and

conditions as the latter may prescribe.

"(b) Membership in the System shall be optional with an elective official of the National

Government or of a local government that is a member of the System: Provided, That if he

desires to come within the purview of this Act, he must notify the System in writing to that

effect: Provided, further, That he complies with the requirements of the System and that he is in

the Government service when his insurance takes effect: And provided, finally, That after his

admission into the System he shall be entitled to life insurance benefit for which he shall pay

either one per centum or three per centum of his monthly salary, depending on the kind of

insurance selected by him, and his employer shall likewise pay for him the same amount."

SECTION 3. Section five of Commonwealth Act Numbered One hundred and eighty-six is


"SEC. 5. (a) Rates of contributions. — For the benefits described hereunder, each employee who

is a member of the System and his employer shall pay the monthly rates of premiums specified

in the following schedule:

MONTHLY PREMIUMS

___________________________________________________________

Percentage of monthly

Benefits salary payable by — Remarks

Employee Employer

I. Life Insurance 1 1 Payment of premium shall begin 3 3 on the last day of the 5 0 calendar

month preceding the month when one's insurance takes effect. Except as otherwise provided in

this Act, the first rate shall apply to a civilian employee insured on or after the approval of this

Act. The second rate shall apply to a civilian employee already insured prior to the approval of

this Act unless he chooses term insurance in which case the first rate shall apply. The third rateshall apply to a regular officer or an enlisted man.

II. Retirement 6 If employee's monthly salary is insurance P200 or less. 5 If employee's monthly

salary is more than P200, but his premium for this benefit shall not exceed P37.50 per month.

"Payment of premiums for retirement insurance shall begin on the last day of the third calendar

month following the month of this Act was approved or the employee entered the service,

whichever is the later date: Provided, however, That such premiums shall not be required of

Justices of the Supreme Court, elective officials, and regular officers and enlisted men, who are

hereby excluded from said benefit.



"(b) Premiums for optional insurance. — The amount of premium on one's optional insurance

described in section ten hereof shall be as provided in his policy. The premiums on this optional

insurance shall be entirely borne by the insured.

"(c) Premiums for optional retirement annuity. — Each employee may at his option and under

such rules and conditions as the System may prescribe deposit additional amounts from time to

time, the total of which shall not exceed ten per cent of the total salaries he has received from his

employer prior to his retirement. These deposits shall be credited with interest of three per

centum per annum, compounded monthly, and together with said interest shall at the date of his

retirement be available to purchase in addition to the annuity described in section eleven hereof

such an annuity as he will elect and the System will offer. In the event of his death or separation

before becoming eligible for retirement, the total amount so deposited, with interest, shall be

refunded to him or his beneficiaries as recorded in his application for optional retirement annuity

filed with the System.

"(d) Collection and remittance of premiums. — Each employer concerned shall at the end of

each month deduct and withhold from the monthly salary of every employee in its service the premiums payable by him in accordance with the preceding schedule plus the additional

premiums, if any, required in section seven hereof. It shall advance and remit to the System

beginning April 1 of each year and quarterly thereafter the monthly premiums for the current

quarter, together with its corresponding shares as described in the said schedule, plus extra

premiums and additional amounts, if any, as required in the following sections: Provided, That if

such employee is separated from the service, then any premiums not due and payable shall be

refunded or credited to his employer. A member no longer in the service may pay his premiums

directly to the System or as provided herein below.

"Except as otherwise specified herein, payment of any premium on one's optional insurance

and/or retirement annuity in the System may be made to an employer whose location isconvenient to the member, and such employer is hereby authorized and required to accept such

payment, issue receipt therefor, and remit the same immediately to the System."

SECTION 4. Section six of Commonwealth Act Numbered One hundred and eighty-six is


"SEC. 6. Employer's premiums. — Each employer shall include in its annual appropriation and

remit to the System the necessary amounts for its corresponding shares of the premiums

described in subsection (a) of section five, plus any extra premiums that may be required on

account of the hazards or risks of its employees' occupations, plus the additional amounts, if any,

required in the next following section: Provided, however, That if one's compulsory membership policy matures, the employer's premium for his life insurance shall cease until he acquires a new

membership policy, which, however, shall be granted only upon satisfactory evidence of

insurability: And provided, finally, That in case of transfer of an employee from one employer to

another, the former employer shall be relieved of paying further premiums for him and the new

employer whether or not it has joined the System, shall assume the same, appropriating therefor

the necessary amount.

"The Board shall have the full power and authority to adopt rules and regulations for the

collection and remittance of premiums or other amounts payable as provided in this Act and/or

any indebtedness to the System, and impose a fine not exceeding the loss or damage that the

System may suffer on the official or officials responsible for the delay or failure in collecting or

remitting said premiums or indebtedness without prejudice to such other punishment as may be

imposed in accordance with existing Civil Service rules and regulations. Notwithstanding any

law to the contrary, the Board may give extra remuneration to officials in charge of collecting



and remitting said premiums, amounts, or indebtedness, if by so doing the best interest of the

System shall be advanced."

SECTION 5. Section seven of Commonwealth Act Numbered One hundred and eighty-six is


"SEC. 7. Additional premiums. —

(a) For the amount of annuity corresponding to the services

rendered by an employer prior to the approval of this Act, his employer shall pay under such

rules and regulations as the System may prescribe the necessary additional amounts or

premiums.

"(b) The Board is hereby authorized and empowered, in carrying out the provisions of this Act,

to supplement the individual premiums of members with moneys received in the form of

donations, gifts, legacies, or bequests, or otherwise, and to receive and deposit to the credit of

the System, and invest all moneys which may be donated by private individuals, organizations,

or corporations.

"(c) All savings in appropriations for salaries and wages that may be realized by each employer

during each fiscal year shall be transferred by said employer to the System which shall use the

same for the payment of benefits provided in this Act."

SECTION 6. Section eight of Commonwealth Act Numbered One hundred and eight-six is


"I — Life Insurance Benefit

"SEC. 8. (a) Compulsory membership insurance. — An employee whose membership in the

System is compulsory shall be automatically insured on the first day of the seventh calendarmonth following the month he was appointed or on the first day of the sixth calendar month if

the date of his appointment is the first day of the month: Provided, That his medical

examination, if required, has been approved by the System.

(b) Optional membership insurance. — The life insurance of an employee whose membership in

the System is optional shall take effect, if he is alive, on the first day of the calendar month

following the calendar month during which the first premium thereon was paid to the System:

Provided, That his application for membership and his medical examination, if required, have

been approved by the System.

(c) Amount and kind of insurance. —

Compulsory membership insurance shall be terminsurance of an amount equal to the employee's current annual salary: Provided, however, That

this subsection shall not apply to any civilian employee who prior to the approval of this Act is

already insured in the System nor to a regular officer or an enlisted man: And provided, further,

That upon his request a civilian employee may have his old membership insurance changed into

a paid-up endowment insurance and be reinsured under a term insurance on submission of

satisfactory evidence of insurability unless such request be made within one year from the date

of approval of this Act. Optional membership insurance shall be, as he may select, either the

term insurance described above or an endowment insurance whose amount shall be whatever the

six per centum monthly premium will buy.

SECTION 7. Section ten of Commonwealth Act Numbered One hundred and eighty-six is




"SEC. 10. Optional insurance. — Upon application to the Board and on satisfactory evidence of

insurability, each member may obtain, at any time, additional life insurance as he may desire,

subject to the provision of section fourteen hereof: Provided, That the amount of said additional

life insurance shall be in multiple of one hundred pesos and that its aggregate amount shall not

exceed an amount, to the nearest hundred pesos, equal to his current annual salary: And

provided, further, That the full amount of the premiums on such additional insurance shall be

paid by said member, and the amount thereof may be deducted from his pay or compensation,

when expressly authorized by him."

SECTION 8. The following new sections are hereby inserted in Commonwealth Act Numbered

One hundred and eighty-six:

"II. — Retirement Insurance Benefit

"SEC. 11. (a) Amount of annuity. — Upon retirement a member shall be automatically entitled

to a life annuity payable monthly for at least five years and thereafter as long as he live. The

amount of the monthly annuity at the age of fifty-seven years shall be twenty pesos, plus, foreach year of service rendered after the approval of this Act, one and six-tenths per centum of the

average monthly salary received by him during the last five years of service, plus, for each year

of service rendered prior to the approval of this Act, if said service was at least seven years, one

and two-tenths per centum of said average monthly salary: Provided, That this amount shall be

adjusted actuarially if retirement be at an age other than fifty-seven years: Provided, further,

That the maximum amount of monthly annuity at age fifty-seven shall not in any case exceed

two-thirds of said average monthly salary or five hundred pesos, whichever is the smaller

amount: And provided, finally, That retirement benefit shall be paid not earlier than one year

after the approval of this Act. In lieu of this annuity, he may prior to his retirement elect one of

the following equivalent benefits:

"(1) Monthly annuity during his lifetime;

"(2) Monthly annuity during the joint-lives of the employee and his wife or other designated

beneficiary, which annuity, however, shall be reduced upon the death of either to one-half and

be paid to the survivor;

"(3) For those who are at least sixty-five years of age, lump sum payment of present value of

annuity for first five years and future annuity to be paid monthly; or

"(4) Such other benefit as may be approved by the System.

"(b) Survivors benefit. — Upon death before he becomes eligible for retirement, his

beneficiaries as recorded in the application of retirement annuity filed with the System shall be

paid his own premiums with interest of three per centum per annum, compounded monthly. If on

his death he is eligible for retirement, then the automatic retirement annuity or the annuity

chosen by him previously shall be paid accordingly.

"(c) Disability benefit. — If he becomes permanently and totally disabled and his services are no

longer desirable, he shall be discharged and paid his own contributions with interest of three per

centum per annum, compounded monthly, if he has served less than five years; if he has served

at least five years but less than fifteen years, he shall be paid also the corresponding employer's

premiums, without interest, described in subsection (a) of section five hereof; and if he has

served at least fifteen years he shall be retired and be entitled to the benefit provided under

subsection (a) of this section.



"(d) Upon dismissal for cause or on voluntary separation, he shall be entitled only to his own

premiums and voluntary deposits, if any, plus interest of three per centum per annum,

compounded monthly.

"SEC. 12. Conditions for retirement. — (a) On completion of thirty years of total services and

attainment of age fifty-seven years, a member shall have the option to retire. In all cases, the last

three years of service before the retirement must be continuous, and he has made contributions

for at least five years, which contributions may, upon his request approved by the Board, be

deducted from his life annuity under such terms and conditions as the Board may prescribe. In

the case of those who are at least fifty-seven years of age a period of service shorter than thirty

years may be allowed, provided that each year decrease in service shall be compensated by one-

half year increase in age over fifty-seven years. A younger age of retirement may be permitted

provided that each year decrease below fifty-seven years shall be compensated by one year

increase in service over thirty years. If an employee is a laborer or one whose work is mostly

manual, the ages mentioned above may be decreased by not more than five years at the

discretion of the System. In all cases no one shall be entitled to retirement benefit if his age is

below fifty-two years or his total service is less than fifteen years.

"(b) The employer concerned may request the retirement of any such employee described in the

preceding subsection who, by reason of a disqualification, is unable to perform satisfactorily and

efficiently the duties of his position or some other position of the same grade or class as that

occupied by the employee and to which he could be assigned, but such request shall be

submitted to the Civil Service Board of Appeals only after the said employee had been notified

in writing of the proposed retirement. No such employee, however, shall be so retired unless the

Civil Service Board of Appeals has given him a hearing and found him after examination that he

is so disqualified. The decision of the Civil Service Board of Appeals as to whether or not the

said employee shall be retired under this sub-section shall be final and conclusive.

"(c) Retirement shall be automatic and compulsory at the age of sixty-five years, if he has

completed fifteen years of service, and if he has not, he shall be allowed to continue in the

service until he shall have completed fifteen years unless he is otherwise eligible for disability

retirement. This clause shall not apply to members of the judiciary and constitutional officers

whose tenure of office is guaranteed. Upon specific approval of the President of the Philippines,

an employee may be allowed to continue to serve after the age of sixty-five years if he possesses

special qualifications and his services are needed. It shall be the duty of the employer concerned

to notify each such employee under its direction of the date of his automatic separation from the

service at least sixty days in advance thereof.

"(d) An employee separated from the service who is receiving an annuity described undersection eleven shall not be eligible again to appointment to any appointive position or

employment under any "employer" unless the appointing authority determines that he is

possessed of special qualifications and his medical examination has been approved by the

System, in which event payment of his annuity shall be suspended during the period of his new

employment: Provided, however, That nothing in this Act shall be so construed as to affect the

rights of the annuitant's beneficiary if the annuitant has been receiving or had elected, and was

otherwise entitled to, a reduced annuity under subsection (a) of section eleven: And provided,

further, That upon the termination of his new appointment, the payment of the annuity which

was suspended shall be resumed.

"(e) If an employee who is not receiving the annuity mentioned in the next preceding subsection

be reinstated in the service, he shall be given full credit for services rendered by him prior to the

approval of this Act for the purpose of determining the amount of annuity under section eleven

hereof to which he may be entitled: Provided however, That said credit shall not be given if the



employee shall not refund to the System any amount he received therefrom with interest of three

per centum per annum compounded monthly from the date he received them up to the date of

their payment, or any gratuity or benefit he received under any pension or retirement plan of an

employer unless expressly exempted by law from refunding said gratuity or pension: Provided,

further, That if separated before, and reinstated after, the approval of this Act, only three-fourths

of said prior services shall be credited to the employee after complying with the condition stated

above.

"SEC. 13. Computation of service. — The aggregate period of service which forms the basis for

retirement and calculating the amount of annuity described in section eleven hereof shall be

computed from the date of original employment, whether as a classified or unclassified

employee in the service of an 'employer', including periods of service at different times and

under one or more employers, and also periods of service performed overseas under the

authority of the Republic of the Philippines and periods of honorable service in the Armed

Forces of the Philippines prior to the approval of this Act, and periods of honorable service in

the Philippines under the authority of the United States Government if rendered prior to July

fourth nineteen hundred and forty-six: Provided, however, That in the case of an employee whois eligible for and receives retirement pay on account of military or naval service or on account

of disability incurred therein, the period of service upon which such retirement pay is based shall be excluded: Provided, also, That periods of service rendered after the approval of this Act

during which premiums are not required shall be excluded, unless the premiums corresponding

to said service be later on paid to the System with interest: And provided, further, That the

period February twenty-eight nineteen hundred and forty-five and from January first nineteen

hundred and forty-two to any period not exceeding one year at a time during which an officer or

employee had been thereafter out of the service to the date of his reinstatement or reappointment

before the approval of this Act shall be included for those who were in the service on December

eight, nineteen hundred and forty-one, except those who were separated prior to Japanese

occupation, in the computation of total service, the annuity mentioned herein, and payment of premiums therefor."

SECTION 9. Section eleven of Commonwealth Act Numbered One hundred and eighty-six is

hereby changed to section fourteen and is amended to read as follows:

"SEC. 14. Special rights attached to life insurance policy. — Any life insurance policy issued

under the provisions of this Act shall not be assignable, except to the System, and shall be

entitled to participation in the surplus, as provided in section twenty-five hereof. It shall

continue in force, except as otherwise provided herein, whether the member is in or out of the

service, so long as he complies with the provisions and conditions thereof. Such policy and the

proceeds thereof shall be exempted from all taxes, and shall not be considered a gratuity."

SECTION 10. Section twelve of Commonwealth Act Numbered One hundred and eighty-six is

hereby changed to section fifteen.

SECTION 11. Section thirteen of Commonwealth Act Numbered One hundred and eighty-six is

hereby changed to section sixteen and is amended to read as follows:

"SEC. 16. Administration of the System. — The System shall be a non-stock corporation, with

its principal place of business in Manila, Philippines. It shall be managed by a Board of Trustees

to consist of five members to be appointed by the President of the Philippines with the consent

of the Commission on Appointments. The trustees shall elect from among themselves a

chairman and a vice-chairman. Each trustee shall hold office for three years or until his

successor is duly qualified, except that of the Board first appointed, one shall hold office for one

year, two for two years, and two for three years. At the expiration of their respective terms, a



successors shall be appointed for the term of three years, from the date of such expiration. All

vacancies, except through the expiration of the terms, shall be filled for the unexpired term only.

The trustees shall be entitled to a per diem of twenty-five pesos for each day of actual attendance

in session."

SECTION 12. Section fourteen of Commonwealth Act Numbered One hundred and eighty-six is

hereby changed to section seventeen and is amended to read as follows:

"SEC. 17. General powers of the Board. — The Board shall have the powers specified in this

Act and the usual general corporate powers. Among others, it shall have the following exclusive

powers and authority: (a) to adopt by-laws, rules and regulations for the administration of the

System and the transaction of its business; (b) to adopt from time to time a budget of

expenditures, including salaries of personnel, and appropriate therefor the necessary amounts;

(c) to set up its accounting unit and provide the necessary personnel therefor; (d) to invest its

funds directly or indirectly; to discount pensions guaranteed under this Act at such rate of

discount it may prescribe; (e) to establish branches of the System whenever and wherever it may

be expedient or necessary, fix their domiciles and in general prescribe the other complementaryrules of organization which this Act imposes; ( f ) to lease, purchase, construct or otherwise

acquire real property and/or buildings and such facilities which may be necessary or expedient to

the effective execution of the purposes of this Act; (g) to prescribe the forms of life insurance

and annuity contracts to be issued and the benefits thereof including accident benefits; (h) to fix

the premium rates, conditions and terms thereof, taking into consideration the kind of insurance,

age, health, and other factors affecting the insurability of the employee or member, and to

authorize the issuance thereof when so determined; (i) to construct, establish and/or operate

hospitals and sanatoriums when possible and expedient or necessary to the employees' welfare; (

j) to enter into agreements or contracts with Government and private hospitals or health

institutions and with medical associations or duly licensed physicians, nurses, or other

competent persons who may be needed in connection with medical and obstetrical services formembers of the System and their dependents, paying them, and authorizing them to accept,

reasonable necessary compensation therefor, notwithstanding any provision of law to the

contrary; (k) except as otherwise provided in this Act, to extend, when possible and expedient,

directly or through other agencies, and under such rules, regulations, and conditions it may

prescribe, medical and obstetrical services to other members of the System and their dependents,

and, in general, promote the health of the members of the System and appropriate necessary

sums therefor from the surplus of the System; (l) having regard to any periodic audit and

valuation of the retirement insurance fund, to make such immediate readjustments or

modifications in any of the rates or periods of benefits granted under this Act and prescribe rules

and conditions therefor, notwithstanding any provision of this Act to the contrary, as appear

necessary in order to make said fund sufficient or no more than reasonably sufficient todischarge its liabilities: Provided, That no person may allege vested rights for reason of these

readjustments or modifications; (m) to have the power of succession; (n) to sue and be sued; and

(o) to exercise such other powers as may be necessary to carry on the business for which the

System has been created. casia

SECTION 13. Section fifteen of Commonwealth Act Numbered One hundred and eighty-six is

hereby changed to section eighteen and is amended to read as follows:

"SEC. 18. Personnel. — The Board shall have the power to appoint a general manager, or a

general manager and actuary, who shall be a person of recognized experience and capacity in the

subject of life and social insurance, and who shall be the chief executive officer of the System,

one or more assistant general managers, one or more managers, a medical director, and an

actuary, and fix their compensation. The general manager shall, subject to the approval of the

Board, appoint additional personnel whenever and wherever they may be necessary to the



effective execution of the provisions of this Act and fix their compensation. He shall have the

power to prescribe their duties, grant leave, prescribe certain qualifications to the end that only

competent persons may be employed, and appoint committees: Provided, however, That said

additional personnel shall be selected from civil service eligibles certified by the Commissioner

of Civil Service and shall be subject to civil service rules and regulations except as herein

otherwise provided.

"The Auditor General shall appoint a representative who shall be the auditor of the corporation,

and the necessary personnel to assist said representative in the performance of his duties. The

number and salaries of the auditor and said personnel shall be determined by the Auditor

General, subject to appropriation by the Board of Directors; in case of disagreement, the matter

should be submitted to the President of the Philippines whose decision shall be final. Said

salaries and all other expenses of maintaining the auditor's office shall be paid by the

System." acd

SECTION 14. Section sixteen of Commonwealth Act Numbered One hundred and eighty-six is

hereby changed to section nineteen and is amended to read as follows:

"SEC. 19. Records and reports. — The Board shall cause to be kept records as may be required

for the purpose of making actuarial valuations of the System including such data necessary in

the computation of rates of disability, mortality, and withdrawal among the members and any

other information that may be useful for the adjustment of the benefits for the members of the

System. Separate and distinct records of operation of each fund of the System and of

disbursements for the same and all accounts of payments made out of each fund shall, likewise,

be made and kept by the System.

"Within four months after the end of each fiscal year, the Board shall submit to the President of

the Philippines who shall furnish a copy thereof to the Congress of the Philippines, a report ofoperations of the preceding year under the provisions of this Act."

SECTION 15. Section seventeen of Commonwealth Act Numbered One hundred and eighty-six

is hereby changed to section twenty.

SECTION 16. Section eighteen of Commonwealth Act Numbered One hundred and eighty-six is

hereby changed to section twenty-one.

SECTION 17. Section nineteen of Commonwealth Act Numbered One hundred and eighty-six is

hereby changed to section twenty-two.

SECTION 18. Section twenty of Commonwealth Act Numbered One hundred and eighty-six is

hereby changed to section twenty-three.

SECTION 19. Section twenty-one of Commonwealth Act Numbered One hundred and eighty-

six is hereby changed to section twenty-four and is amended to read as follows:

"SEC. 24. Accounts to be maintained. — The System shall keep separate and distinct from one

another the following funds:

"(a) Life insurance fund. — This shall consist of all premiums for life insurance benefit and/or

earnings and savings therefrom. It shall meet death claims as they may arise or such equities as

any member may be entitled to, under the conditions of his policy, and shall maintain the

required reserves to the end of guaranteeing the fulfillment of the life insurance contracts issued



by the System. Said reserves shall be computed yearly in accordance with approved valuation

standards and with an interest rate of not higher than four per centum per annum.

"(b) Retirement insurance fund. — This shall consist of all contributions for retirement

insurance benefit and of earnings and savings therefrom. It shall meet annuity payments and

establish the required reserves to the end of guaranteeing the fulfillment of the contracts issued

by the System. Said reserves shall be determined yearly on such annuity tables, with an interest

rate of not higher than three per centum per annum, as shall be adopted by the Board. cd

"(c) Contingency reserve fund. — This shall consist of such portion of the surplus of each fund

mentioned above as may be set aside each year by the Board pursuant to section twenty-five

hereof: Provided, That it shall not exceed ten per centum of the required reserves of the System.

"(d) General fund. — This shall consist of such amounts as may be set aside by the Board from

each fund, to meet the expenses incidental to the enforcement of the provisions of this Act.

"The Government of the Republic of the Philippines hereby guarantees the fulfillment of theobligations of the Government Service Insurance System to the members thereof when and as

they shall become due."

SECTION 20. Section twenty-two of Commonwealth Act Numbered One hundred and eighty-

six is hereby changed to section twenty-five and is amended to read as follows:

"SEC. 25. Disposable surplus. — Any disposable surplus that may result from the operations of

the life insurance fund shall be apportioned among the members whose policies are in force for

at least one year, when and if the Board deems it expedient, in accordance with the schedule

prepared by the Actuary and approved by the Board. The disposable surplus shall be that amount

left after the mean reserves of the policies, contingency reserves, the expenses incidental to theoperation of said fund, the expenses incurred in promoting the health of the members, and other

liabilities of the fund have been determined and set aside or satisfied."

SECTION 21. Section twenty-three of Commonwealth Act Numbered One hundred and eighty-

six is hereby changed to section twenty-six and is amended to read as follows:

"Sec. 26. Exemptions from legal process and liens. — No policy of life insurance issued under

this Act, or the proceeds thereof, when paid to any member thereunder, nor any other benefit

granted under this Act, shall be liable to attachment, garnishment, or other process, or to be

seized, taken, appropriated, or applied by any legal or equitable process or operation of law to

pay any debt or liability of such member, or his beneficiary, or any other person who may have aright thereunder, either before or after payment; nor shall the proceeds thereof, when not made

payable to a named beneficiary, constitute a part of the estate of the member for payment of his

debt: Provided, however, that this section shall not apply when obligations or indebtedness to

the employer are concerned."

SECTION 22. Section twenty-four of Commonwealth Act Numbered One hundred and eighty-

six is hereby changed to section twenty-seven and is amended to read as follows:

"SEC. 27. Appropriations. — There is hereby appropriated for the current fiscal year, and

annually thereafter, out of any fund in the Philippines Treasury or other depository not otherwise

appropriated, including special and corporate funds, such sums as may be necessary to pay the

contributions or premiums payable by each employer under this Act."



SECTION 23. Section twenty-five of Commonwealth Act Numbered One hundred and eighty-

six is hereby changed to section twenty-eight and is amended to read as follows:

"SEC. 28. Miscellaneous provisions. — (a) Act Numbered Two thousand five hundred and

eighty-nine, as amended, and all other retirement or pension plans heretofore in force in any

chartered city or corporation owned or controlled by the Government are hereby declared

inoperative or abolished, and Act Numbered Four thousand one hundred and eighty-three shall

cease to be applicable to employees of any local government that may be admitted to the

System, and hereafter no insurance or retirement plan for employees shall be created by any

employer without the prior approval of the System: Provided, That the rights of those already

retired shall not be affected: Provided, further, That as of the date of approval of this Act the

present value of the benefit as may be computed by the actuary of the System or the gratuity

payable to any member who has established his right before the approval of this Act to retire

under either Act Numbered Two thousand five hundred and eighty-nine or Act Numbered Four

thousand one hundred and eighty-three or under any retirement or pension plan mentioned above

shall be credited and paid by the employer concerned to the retirement insurance fund of the

System in installments to be determined by the System and approved by the President and shall be included in the computation of the additional premiums or amounts required in section seven

hereof for the service annuity described in subsection (a) of section eleven hereof: And provided, finally, That such a member shall be entitled to the retirement benefit described in this

Act only if he so notifies the System within six months from the approval of this Act, otherwise

it shall be deemed that he does not desire to be retired under this Act and accordingly the

gratuity or benefit payable to him under either aforementioned Act shall be exclusively reserved

for him by the System. If such member elects the retirement benefit of this Act, but his position

is abolished or he dies or becomes disable before becoming eligible to said benefit, his legal

heirs may be paid the retirement benefit to which he has established his right prior to the

approval of this Act and his contributions under this Act shall be refunded as provided in section

11 (d) hereof. cdasia

"(b) Except as herein otherwise provided, the Government Service Insurance System including

all its forms or documents required of its members, shall be exempt from all types of taxes,

documentary stamps, duties and contributions, fiscal or municipal, direct or indirect, established

or to be established; and more specially, it shall not be subject to the provisions of Act

Numbered Twenty-four hundred and twenty-seven, as amended, and Commonwealth Act

Numbered Four hundred and sixty-six, as amended, and no law hereafter enacted shall apply to

said System unless it is provided therein that the same is applicable to the System by expressly

stating the name of said entity.

"(c) Any provision of law inconsistent with the provisions of this Act is hereby repealed."

SECTION 24. Section twenty-nine to read as follows is hereby added to Commonwealth Act

Numbered One hundred and eighty-six:

"SEC. 29. Penalty. — Any person found to have participated, directly or indirectly, in the

commission of fraud, collusion, falsification, misrepresentation of facts, or any other kind of

anomaly in the issuance of any certificate or document for any purpose connected with this Act,

or in obtaining any benefit or payment under this Act, whether for him or some other person,

shall be punished by a fine not exceeding one thousand pesos or imprisonment not exceeding

one year, or by both such fine and imprisonment at the discretion of the court, besides

disqualification from holding public office and from practicing any profession or calling

licensed by the Government."



SECTION 25. Section twenty-six of Commonwealth Act Numbered One hundred and eighty-six

is hereby changed to section thirty. cd

SECTION 26. Notwithstanding the provisions of this Act to the contrary, any officer or

employee who died in the service within three years before said Act went into effect and who

had rendered at least thirty-five years of service and who was entitled to or who could have

established his right to the retirement gratuity provided for in Act Numbered Twenty-five

hundred and eighty-nine, as amended, or to any other retirement benefits from any pension fund

created by law shall be considered retired under the provisions of this Act if his wife, or in her

default, his other legal heirs shall so elect and notify the System to that effect. Upon making

such election, the wife or legal heirs of the deceased officer or employee shall be paid the

monthly annuity for five consecutive years or such other benefit as provided in said Act, in lieu

of the retirement gratuity or retirement benefits to which the deceased was entitled at the time of

his death; and any portion of such gratuity or retirement benefits already paid to his wife or other

legal heirs shall be refunded to the System: Provided, That contributions corresponding to his

last five years of service shall be deducted monthly from his life annuity.

Notwithstanding any provisions of this Act to the contrary, any officer or employee whose

position was abolished or who was separated from the service as a consequence of the

reorganization provided for in the Republic Act Numbered Four hundred and twenty-two may

be retired under the provisions of this Act if qualified: Provided, That any gratuity or retirement

benefit already received by him shall be refunded to the System: Provided, further, That

contributions corresponding to his last five years of service shall be paid as provided in section

twelve of this Act. This provision shall also apply to any member of the judiciary who, prior to

the approval of this Act, was separated from the service after reaching seventy years of age and

rendering at least thirty years of service and who is not entitled to retirement benefit under any

law.

Notwithstanding any provisions of this Act to the contrary, any officer or employee, who has not

established his right to retire under Act Numbered Twenty-five hundred and eighty-nine or

under Act Numbered Forty-one hundred and eighty-three, both as amended, but who has

rendered not less than twenty-five years of service and has attained the age of fifty-seven years

may elect to retire under either of said Acts if he shall establish such right within one year from

the date of the approval of this Act, or under this Act if otherwise qualified.

SECTION 27. This Act shall take effect upon its approval: Provided, That if the financial

condition of an employer does not permit payment of its contributions for retirement insurance

herein required, such payment may be deferred under such conditions as the System may

prescribe.

Approved: June 16, 1951


AN ACT DECLARING SEXUAL HARASSMENT UNLAWFUL INTHE EMPLOYMENT, EDUCATION OR TRAINING ENVIRONMENT, AND

FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives of the Philippines in Congressassembled:



SECTION 1. Title. - This Act shall be known as the " Anti-Sexual Harassment Act of1995 ."

SECTION 2. Declaration of Policy. - The State shall value the dignity of everyindividual, enhance the development of its human resources, guarantee full respect forhuman rights, and uphold the dignity of workers, employees, applicants foremployment, students or those undergoing training, instruction or education. Towardsthis end, all forms of sexual harassment in the employment, education or trainingenvironment are hereby declared unlawful.

SECTION 3. Work, Education or Training -Related, Sexual Harassment Defined. - Work, education or training-related sexual harassment is committed by an employer,employee, manager, supervisor, agent of the employer, teacher, instructor, professor,coach, trainor, or any other person who, having authority, influence or moralascendancy over another in a work or training or education environment, demands,requests or otherwise requires any sexual favor from the other, regardless of whetherthe demand, request or requirement for submission is accepted by the object of said

Act.

(a) In a work-related or employment environment, sexual harassment is committed when:

(1) The sexual favor is made as a condition in the hiring or in theemployment, re-employment or continued employment of saidindividual, or in granting said individual favorable compensation, terms ofconditions, promotions, or privileges; or the refusal to grant the sexualfavor results in limiting, segregating or classifying the employee which inany way would discriminate, deprive ordiminish employment

opportunities or otherwise adversely affect said employee;

(2) The above acts would impair the employee's rights or privilegesunder existing labor laws; or

(3) The above acts would result in an intimidating, hostile, or offensiveenvironment for the employee.

(b) In an education or training environment, sexual harassment is committed:(1) Against one who is under the care, custody or supervision of the

offender;

(2) Against one whose education, training, apprenticeship or tutorship isentrusted to the offender;

(3) When the sexual favor is made a condition to the giving of a passinggrade, or the granting of honors and scholarships, or the payment of astipend, allowance or other benefits, privileges, or consideration; or

(4) When the sexual advances result in an intimidating, hostile oroffensive environment for the student, trainee or apprentice.

Any person who directs or induces another to commit any act of sexual harassment

as herein defined, or who cooperates in the commission thereof by another without which it would not have been committed, shall also be held liable under this Act.

SECTION 4. Duty of the Employer or Head of Office in a Work-related, Education



or Training Environment. - It shall be the duty of the employer or the head ofthe work-related, educational or training environment or institution, to prevent ordeter the commission of acts of sexual harassment and to provide the procedures forthe resolution, settlement or prosecution of acts of sexual harassment. Towards thisend, the employer or head of office shall:

(a) Promulgate appropriate rules and regulations in consultation with and joint1yapproved by the employees or students or trainees, through their duly designatedrepresentatives, prescribing the procedure for the investigation of sexual harassmentcases and the administrative sanctions therefor.

Administrative sanctions shall not be a bar to prosecution in the proper courts forunlawful acts of sexual harassment.

The said rules and regulations issued pursuant to this subsection (a) shall include,among others, guidelines on proper decorum in the workplace and educational ortraining institutions.

(b) Create a committee on decorum and investigation of cases on sexualharassment. The committee shall conduct meetings, as the case may be, with officersand employees, teachers, instructors, professors, coaches, trainors, and students ortrainees to increase understanding and prevent incidents of sexual harassment. It shallalso conduct the investigation of alleged cases constituting sexual harassment.

In the case of a work-related environment, the committee shall be composed of atleast one (1) representative each from the management, the union, if any, theemployees from the supervisory rank, and from the rank and file employees.

In the case of the educational or training institution, the committee shall becomposed of at least one (1) representative from the administration, the trainors,instructors, professors or coaches and students or trainees, as the case may be.

The employer or head of office, educational or training institution shall disseminateor post a copy of this Act for the information of all concerned.

SECTION 5. Liability of the Employer, Head of Office, Educational or Training Institution. - The employer or head of office, educational or training institution shall besolidarily liable for damages arising from the acts of sexual harassment committed in

the employment, education or training environment if the employer or head ofoffice, educational or training institution is informed of such acts by the offended partyand no immediate action is taken.

SECTION 6. Independent Action for Damages. - Nothing in this Act shall precludethe victim of work, education or training-related sexual harassment from institutinga separate and independent action for damages and other affirmative relief.

SECTION 7. Penalties. - Any person who violates the provisions of this Act shall,upon conviction, be penalized by imprisonment of not less than one (1) month normore than six (6) months, or a fine of not less than Ten thousand pesos (P10,000) nor

more than Twenty thousand pesos (P20,000), or both such fine and imprisonment atthe discretion of the court.

Any action arising from the violation of the provisions of this Act shall prescribe in



three (3) years.

SECTION 8. Separability Clause. - If any portion or provision of this Act is declared void or unconstitutional, the remaining portions or provisions hereof shall not beaffected by such declaration.

SECTION 9. Repealing Clause. - All laws, decrees, orders, rules and regulations,other issuances, or parts thereof inconsistent with the provisions of this Act are herebyrepealed or modified accordingly.

SECTION 10. Effectivity Clause.- This Act shall take effect fifteen (15) days after itscomplete publication in at least two (2) national newspapers of general circulation.

Bulk Labor Special Laws

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