REPUBLIC ACT NO.

8282
AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEM THEREBY 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 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 promote social justice and provide meaningful protection to members and their beneficiaries
against the hazards of disability, sickness, maternity, old age, death, and other 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 Social Security System,
hereinafter referred to as SSS, a corporate body, with principal place of business in Metro Manila, Philippines is
hereby created. The SSS shall be directed and controlled by a Social Security Commission, hereinafter referred to
as Commission, composed of the Secretary of Labor and Employment or his duly designated 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 experience regarding social
security, to be appointed by the President of the Philippines. The six (6) members representing workers and
employers shall be chosen from among the nominees of workers and employers organizations, respectively. The
Chairman of the Commission shall be designated by the President of the Philippines from among its members. The
term of the appointive members shall be three (3) years: Provided, That the 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 continue to 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 five hundred pesos (P2,500.00) per diem for each meeting actually
attended by them but not to exceed Ten thousand pesos (P10,000.00) a month:: Provided, That members of the
Commission shall also receive a per diem of at least Two thousand five hundred pesos (P2,500.00) but not to exceed
Fifteen thousand pesos (P15,000.00) a month: Provided , further, That said members of the Commission shall also
receive reasonable transportation and representation allowances as may be fixed by the Commission, 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 immediately responsible 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
technical and administrative fields related to the purposes of this Act. He shall be appointed by the 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 an actuary, and such other
personnel as may be deemed necessary, fix their reasonable compensation, allowances and other benefits, prescribe
their duties and establish such methods and procedures as may be necessary to insure the efficient, honest and
economical administration of the provisions and purposes of this Act: Provided, however, That the personnel of the
SSS below the rank of Vice-President shall be appointed by the SSS President: Provided, further, That the personnel
appointed by the SSS President, except those below the rank of assistant manager, shall be subject to the
confirmation 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 and regulations: 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. For the attainment of its
main objectives as set forth in Section 2 hereof, the Commission shall have the following powers and duties:
(1) To adopt, amend and rescind, subject to the approval of the President of the Philippines, such rules and
regulations as may be necessary to carry out the provisions and purposes of this Act;
(2) To establish a provident fund for the members which will consist of voluntary contributions of employers and/or
employees, self-employed and voluntary members and 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 the President of
the Philippines;
(3) To maintain a provident fund which consists of contributions made by both the SSS and 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 may prescribe;
(4) To approve restructuring proposals for the payment of due but unremitted contributions and unpaid loan
amortizations under such terms and conditions as it may prescribe;
(5) To authorize cooperatives registered with the cooperative development authority or associations registered with
the appropriate government agency to act as collecting agents of the SSS with respect to their
members: Provided, That the SSS shall accredit the 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 civil liability 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 of the Philippines; and
(7) To approve, confirm, pass upon or review any and all actions of the SSS in the proper 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 the Philippines and to the
Congress 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;
(2) To require the actuary to submit a valuation report on the SSS benefit program every four (4) years, or more
frequently as may be necessary, to undertake the necessary actuarial 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 and regulations as the
Commission may adopt, subject to the approval of the President of the Philippines: Provided, 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;
(3) To establish offices of the SSS to cover as many provinces, cities and congressional districts, whenever and
wherever it may be expedient, necessary and feasible, and to inspect or cause to be inspected periodically such
offices;
(4) To enter into agreements or contracts for such service and aid, as may be needed for the proper, efficient and
stable administration of the SSS;
(5) To adopt, from time to time, a budget of expenditures including salaries of personnel, 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 development of the SSS;
(8) To acquire and dispose of property, real or personal, which may be necessary or expedient for the attainment of
the purposes of this Act;
(9) 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-income members and for the maintenance
of hospitals and institutions for the sick, aged and disabled, as well as schools for the members and their immediate
families;
(10) To sue and be sued in court; and
(11) To perform such other corporate acts as it may deem appropriate for the proper enforcement of this Act.
SEC. 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 (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 appeal therefrom as herein provided,
shall become final and executory fifteen (15) 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 public prosecutors.
(c) Court Review. - The decision of the Commission upon any disputed matter may be reviewed both upon the law
and the facts by the Court of Appeals. For the purpose of such 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 from
a decision of the Commission must be taken within fifteen (15) 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 asupersedeas 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. The Commission may, motu proprio or on motion of any interested party, issue a writ
of execution to enforce any of its decisions or awards, after it has become final and executory, in the same manner
as the decision of the Regional Trial Court by directing the city or provincial sheriff or the sheriff whom it may
appoint to enforce such final decision or execute such writ; 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 pursuant to
Rule 71 of the Rules of Court, be punished for contempt.
SEC. 6. Auditor and Counsel. - (a) The Chairman of the Commission on Audit 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.
SEC. 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 by the Commission in accordance with law.
SEC. 8. Terms Defined. For purposes of this Act, the following terms shall, unless the context 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 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 political subdivisions, branches or
instrumentalities, including corporations owned or controlled by the Government: Provided, That a self-employed
person shall be both employee and employer 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 such services, 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 is unmarried, not gainfully employed,
and has not reached twenty-one (21) years of age, or if over twenty-one (21) years of age, he is congenitally or
while still a minor has been permanently 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 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 the maximum salary credit as provided under Section Eighteen of this Act.
(g) Monthly salary credit - The compensation base for contributions and benefits as indicated in the schedule in
Section Eighteen of this Act.
(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 (1) month.
(i) Contribution The amount paid to the SSS by and on behalf of the members in accordance 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 or instrumentality or agency thereof;
(4) Service performed in the employ of a foreign government or international organization, or their wholly-owned
instrumentality: Provided, however, That this 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; and
(5) Such other services performed by temporary and other employees which may be excluded by regulation of the
Commission. Employees ofbona fide independent contractors shall not be deemed employees of the employer
engaging the service of said contractors.
(k) Beneficiaries - The dependent spouse until he or she remarries, the dependent legitimate, legitimated or legally
adopted, and illegitimate children, who shall be the primary beneficiaries of the member: Provided,That the
dependent illegitimate children 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 the dependent legitimate, legitimated children of
the member, his/her dependent illegitimate children shall be entitled to one hundred percent (100%) of the benefits.
In their absence, the dependent parents who shall be the secondary beneficiaries of the member. In the absence of
all the foregoing, any other person designated by the member as his/her secondary beneficiary.
(l) Contingency - The retirement, death, disability, injury or sickness and maternity of the member.
(m) Average monthly salary credit The result obtained by dividing the sum of the last sixty (60) monthly salary
credits immediately preceding the semester of contingency by sixty (60), 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 monthly contributions
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 for the 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 the semester of contingency by one hundred eighty (180).
(o) Semester A period of two (2) consecutive quarters ending in the quarter of contingency.
(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 nineteen hundred and eighty five (1985)
minus the calendar year of coverage plus the number of calendar years in which six (6) or more contributions have
been paid from January nineteen hundred and eighty five (1985) up to the calendar year containing the semester
prior to the contingency. For a member covered in or after January nineteen hundred and eighty five (1985), the
number of calendar years in which six (6) or more contributions have been paid from the year of coverage up to the
calendar year containing the semester prior to the contingency: Provided,That the Commission may provide 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, as defined 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 as depreciation and depletion
appearing in the regular financial statement of the issuing or assuming institution.
(u) Fixed charges Recurring expense such as amortization of debt discount or rentals for leased properties,
including interest on funded and unfunded debt.
SEC. 9. Coverage. - (a) Coverage in the SSS shall be compulsory upon all employees not over sixty (60) years of
age and their employers: Provided, That in the case of domestic 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 the 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 the employers contribution to his private
plan is more than 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 employers total
contribution to his 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 be available under the remaining private plan, which may be necessary to adopt by
reason of the reduced contributions 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 employers 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.
(b) Spouses who devote full time to managing the household and family affairs, unless they are also engaged in
other vocation or employment which is subject to mandatory coverage, 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 the Commission under such rules and regulations as it may
prescribe, including but not limited 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 not fall 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 covered employees shall also be applicable
to the covered self-employed persons.
SEC. 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
the self-employed person shall take effect upon his registration with the SSS.
SEC. 11. Effect of Separation from Employment. When an employee under compulsory coverage is separated
from employment, his employers 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.
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 pay contributions for that month. He may, however, be
allowed to continue paying contributions under the same rules and regulations applicable to a separated employee
member: Provided, That no retroactive payment of contributions shall be allowed other than as prescribed under
Section Twenty-two-A hereof.
SEC. 12. Monthly Pension. (a) The monthly pension shall be the highest of the following 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 of service 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 no case be paid for an aggregate
amount of less than sixty (60) months.
(b) Notwithstanding the preceding paragraph, the minimum pension shall be One thousand 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 with twenty (20) credited years of service.
SEC. 12-A. Dependents Pension. Where monthly pension is payable on account of death, permanent total
disability or retirement, dependents pension equivalent to ten percent (10%) of the monthly pension or Two
hundred fifty pesos (P250.00), whichever is higher, shall also be paid for each dependent child conceived on or
before the date of the contingency but not exceeding five (5), beginning with the youngest and without
substitution: Provided, That where there are legitimate or illegitimate children, the former shall be preferred.
SEC. 12-B. Retirement Benefits. - (a) A member who has paid at least one hundred twenty (120) monthly
contributions prior to the semester of retirement and who: (1) has reached the age of sixty (60) years and is already
separated from employment or has ceased to be self-employed; or (2) has reached the age of sixty-five (65) years,
shall be entitled for as long as he lives to the monthly pension: Provided, That he shall have the option to receive his
first eighteen (18) monthly pensions in lump sum discounted at a preferential rate of interest to be determined by
the SSS.
(b) A covered member who is sixty (60) 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 suspended upon the reemployment or resumption of self-employment of a retired
member who is less than sixty-five (65) years old. He shall again 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 of his retirement shall be entitled
to receive the monthly pension: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 be entitled to a lump sum benefit
equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period, excluding
the dependents pension.
(e) The monthly pension of a member who retires after reaching age sixty (60) shall be the higher of either: (1) the
monthly pension computed at the earliest time he could have retired had he been separated from employment or
ceased to be self-employed plus all adjustments thereto; or (2) the monthly pension computed at the time when he
actually 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 beneficiaries shall 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 required thirty-six (36)
monthly contributions, his primary or secondary beneficiaries shall be entitled to a lump 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 is higher.
SEC. 13-A. Permanent Disability Benefits. (a) Upon the permanent total disability of a member who has paid
at least thirty-six (36) monthly contributions prior to the semester of disability, he shall be entitled to the monthly
pension:Provided, That if he has not paid the required thirty-six (36) monthly contributions, he shall be entitled to a
lump 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 is higher. A member who (1) has received a lump sum benefit;
and (2) is reemployed or has 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 new member.
(b) The monthly pension and dependents pension shall be suspended upon the reemployment or resumption of
self-employment or the recovery of the disabled member from his permanent total disability or his failure to present
himself for examination at least once a year upon notice by the SSS.
(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 monthly pension: 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 be entitled to a lump sum
benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period
excluding the dependents pension.
(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 preceding paragraph with due regard to the degree of disability as the Commission may determine.
(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 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 ring finger 5
One little finger 3
One big toe 6
One 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 50
Sight of one eye 25
(g) The percentage degree of disability which is equivalent to the ratio that the designated number of months of
compensability bears to seventy-five (75), 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 percent (100%), in which case, the member shall be deemed as
permanently totally disabled.
(h) In case of permanent partial disability, the monthly pension benefit shall be given in 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 the member 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 disability pension 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 funeral expenses upon the death of a member, including permanently
totally disabled member or retiree.
SEC. 14. Sickness Benefit. - (a) A member who has paid at least three (3) monthly contributions in the twelve-
month period immediately preceding the semester of sickness or injury and is confined therefor for more than three
(3) days in a hospital or elsewhere with the approval of the SSS, shall, for each day of compensable confinement or
a fraction thereof, be paid by his employer, or the SSS, if such person is unemployed or self-employed, a daily
sickness benefit equivalent to ninety percent (90%) of his average 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 and added 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 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
necessary: 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 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.
(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 member shall have been exhausted.
(c) One hundred percent (100%) 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 (5) calendar days after receipt of the notification from
the employee member:Provided, further, That if the notification to the SSS is made by the employer beyond five (5)
calendar days after receipt of the notification from the employee member, 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 in which case the claim for benefit or reimbursement 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 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 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 the employer within one (1) month after the period
prescribed herein for adjudication, the reimbursement shall thereafter earn simple interest of one percent (1%) per
month until paid.
(f) The provisions regarding the notification required of the member 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.
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 semester of her childbirth or miscarriage shall be paid a daily
maternity benefit equivalent to one hundred 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 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) The full payment shall be advanced by the employer within thirty (30) days from the 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 benefits have been received;
(d) That the maternity benefits provided under this section shall be paid only for the first 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 employer upon receipt of satisfactory proof of such payment
and legality thereof; and
(f) That if an employee member should give birth or suffer 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 the time of the pregnancy, the employer shall pay to the SSS damages equivalent to the benefits which
said employee member would otherwise have been entitled to.
SEC. 15. Non-Transferability of Benefits. - The SSS shall promptly pay the benefits provided in this Act to such
persons as may be entitled thereto in accordance with the provisions of this Act: Provided, That the SSS shall pay
the retirement benefits on the day of contingency to qualified members who have submitted the necessary
documents at least six (6) months before: Provided, further, 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 own affairs, 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 member in which case the benefits shall be paid to such
parents or spouse, as representative payee of the recipient. Such benefits are not transferable 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.
SEC. 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 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 liable to attachments, 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 nature enacted 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 assessment imposed 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 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 Commission 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 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
(P500.00) nor more than Five thousand pesos (P5,000.00), or imprisonment for not less than six (6) months nor
more than one (1) year, or both, at the discretion of the court.
SEC. 18. Employees Contributions. - (a) Beginning as of the last day of the calendar month when an employees
compulsory coverage takes effect and every month thereafter during his employment, the employer shall deduct and
withhold from such employees monthly salary, wage, compensation or earnings, the employees contribution in an
amount corresponding to his salary, wage, compensation or earnings during the month in accordance with the
following schedule:
SALARY RANGE OF MONTHLY MONTHLY MONTHLY TOTAL MONTHLY
BRACKET COMPENSATION SALARY CONTRIBUTION CONTRIBUTION CONTRIBUTION
CREDIT OF EMPLOYER OF EMPLOYEE
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 4000 177.30 116.70 294.00
VII 3,750.00 4,249.99 4500 202.70 133.30 336.00
VIII 4,250.00 4,749.99 5000 228.00 150.00 378.00
IX 4,750.00 5,249.99 5500 253.30 166.70 420.00
X 5,250.00 5,749.99 6000 278.70 183.70 462.00
XI 5,750.00 6,249.99 6500 304.00 200.00 504.00
XII 6,250.00 6,749.99 7000 329.30 216.70 546.00
XIII 6,750.00 7,249.99 7500 354.70 233.30 588.00
XIV 7,250.00 7,749.99 8000 380.00 250.00 630.00
XV 7,750.00 8,249.99 8500 403.30 266.70 672.00
XVI 8,250.00 8,749.99 9000 430.70 283.30 714.00
XII 8,750.00 OVER 9500 456.30 300.00 756.00
The foregoing schedule of contribution shall also apply to self-employed and voluntary members.
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 have reached 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 rate of benefits, subject to the approval of the President of the Philippines.
SEC. 19. Employers Contributions. (a) Beginning as of the last day of the month when an employees
compulsory coverage takes effect and every month thereafter during his employment, his employer shall pay, with
respect to such covered employee, the employers 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
employers 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 the employer, the
correct names and the SSS numbers of the employees and the total contributions paid for their account during the
quarter.
SEC. 19-A. Contributions of the Self-Employed Member. - The contributions to the SSS of the self-employed
member shall be determined in accordance with Section Eighteen of this Act: Provided, That the monthly earnings
declared by the self-employed member at the time of his registration with the SSS shall be considered as his
monthly compensation and he shall pay both the employer and the employee contributions: Provided, further, That
the contributions of self-employed persons earning One thousand pesos (P1,000.00) monthly or below may be
reduced by the Commission.
The monthly 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 another declaration of his monthly earnings, in which case such latest
declaration becomes the new basis of his monthly salary credit.
SEC. 20. Government Contribution. - As the contribution of the Government to the operation of the SSS,
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 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 to assure 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 be diminished and to guarantee
said benefits the Government of the Republic of the Philippines accepts general responsibility for the solvency of the
SSS.
SEC. 22. Remittance of Contributions. (a) The contributions imposed in the preceding Section shall be
remitted to the SSS within the first ten (10) 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 percent (3%) 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: Provided, That upon 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 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 (20) 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.
(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 Sheriffs 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 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 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.
SEC. 22-A. Remittance of Contributions of Self-Employed Member. Self-employed members shall remit their
monthly contributions quarterly on such dates and schedules as the Commission may specify through rules and
regulations: Provided, That no retroactive 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 and proper collection and
payment of contributions and proper identification of the employer 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 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 (60) without the SSS having previously received any report or written communication about
him from his employer, the said employer shall pay to the SSS 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 damages equivalent to the
accumulated pension due as of the date of settlement of the claim or to the five (5) years pension, including
dependents pension: Provided, further, That if the contingency occurs within thirty (30) days from the date of
employment, the employer shall be relieved of his liability for damages:Provided, further, That any person or entity
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 an independent contractor shall require such contractor to post a surety bond to guarantee the payment of the
workers benefits.
(b) Should the employer misrepresent the true date of employment of the employee member or remit to the SSS
contributions which are less than those required in this Act or fail to remit any contribution due prior to the date of
contingency, resulting in a reduction of benefits, the employer shall pay to the SSS damages equivalent to the
difference 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 the amount payable on the basis of contributions actually
remitted: Provided, That if the employee member or his beneficiary is entitled to pension benefits, damages shall be
equivalent to the accumulated pension due as of the date of settlement of the claim or to the 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 and penalties 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 SSS except in compliance with a subpoena duces tecum issued by the
Court, shall not be divulged without the consent of the SSS President 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 by the 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.
(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 from employment, 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.
(e) 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 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 by the 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, or non-erasable optical disk and other similar archival media
copies of original SSS records and reports, duly certified by the official custodian thereof, shall have the same
evidentiary value as the originals and be admissible as evidence in all legal proceedings.
(g) Notwithstanding any law to the contrary, local government units shall, prior to issuing any annual business
license or permit, require submission of certificate of SSS coverage and compliance with the provisions of this
Act: Provided, That the certification or clearance shall be issued by the SSS within five (5) working days from receipt
of the request.
SEC. 24-A. Report and Registration of the Self-Employed Member. Each covered self-employed person
shall, within thirty (30) days from the first day he started the practice of his profession or business operations
register and report to the SSS his name, age, civil status, and occupation, average monthly net income and his
dependents.
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 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
percent (12%) of the total yearly contributions plus three percent (3%) of other revenues shall be disbursed for
operational expenses such as salaries and wages, supplies and materials, depreciation and the maintenance of
offices of the SSS: Provided, further, That if the expenses in any year are less than the maximum amount
permissible, 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 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 known as theInvestment Reserve Fund which the Commission shall manage and invest
with the skill, care, prudence and diligence necessary under the circumstances 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 not less than the average rates of treasury
bills or any other acceptable market yield indicator in any or in all of the following:
(a) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the Philippines,
or in bonds, securities, promissory notes or other evidence of indebtedness to which the full faith, credit and
unconditional guarantee of the Government of the Philippines is pledged;
(b) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the Philippines,
or any agencies or instrumentalities to finance domestic infrastructure projects such as roads, bridges, ports,
telecommunications, and other similar projects: Provided, That the instruments issued by an agency or
instrumentality of the government shall be guaranteed by the Government of the Philippines or any government
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
Investment Reserve Fund;
(c) In bonds, securities, promissory notes or other evidence of indebtedness of government financial institutions or
government corporations with acceptable credit or guarantee: Provided, That such investments shall not exceed
thirty percent (30%) of the Investment 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 ng Pilipinas 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 assigned to the SSS under such terms
and conditions as the Commission may prescribe: Provided, That in the case of bank deposits, they 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 a depository for this purpose by the
Monetary Board of the Bangko Sentral ng Pilipinas: 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 shelter agencies of the National
Government or financial intermediaries to finance housing loans of members; and in long-term direct individual or
group housing loans giving priority to the low-income groups, up to a maximum of ninety percent (90%) of the
appraised 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 five percent (35%) of the Investment Reserve Fund at any
time shall be invested for housing purposes: Provided, further, That not more than ten percent (10%) of the
Investment Reserve Fund shall be invested in short and medium term loans;
(f) In bonds, securities, promissory notes or other evidence of indebtedness of educational or medical institutions to
finance the construction, improvement and maintenance of schools and hospitals and their equipment and
facilities:Provided, That such 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 acceptable to the SSS: Provided, That such projects and investments
shall, in the determination of the Commission, redound to the benefit of the SSS, its members, as well as the
general public: Provided, further, That investment in real estate property, including shares of stocks involving real
estate property shall not exceed five percent (5%) of the Investment Reserve Fund: Provided, finally, That
investments in other income earning projects and investments secured by first mortgages or other collaterals shall
not exceed twenty five percent (25%) of the Investment Reserve Fund;
(h) In bonds, debentures, securities, promissory notes or other evidence of indebtedness of any prime corporation
or multilateral institutions to finance domestic projects: Provided, That the issuing or assuming 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 (3) including the last two (2) of the five (5) fiscal years next preceding the date of 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, as defined in this Act, shall have been not less than one and one-quarter times the
total of its fixed charges for such year: Provided, further, That such investments shall not exceed thirty percent
(30%) of the Investment Reserve Fund;
(i) In preferred or common shares of stocks listed or about to be listed in the stock exchange or options or warrants
to such stocks or, subject to prior approval of the Bangko Sentral ng Pilipinas, such other risk management
instruments of any prime or solvent corporation or financial institution created or existing under the laws of the
Philippines with proven track record of profitability over the last three (3) years and payment of dividends at least
once over the same period: Provided, That such investments 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 the Investment 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 case shall 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 approved financial instruments or other assets issued in accordance
with the existing laws of the countries where such financial instruments are issued:Provided, That these instruments
or assets are listed in bourses of the respective countries where these instruments or assets are issued: Provided,
further, That the issuing company has proven 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 such investments 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 case shall it exceed seven and one-half percent (7.5%) of the Investment Reserve
Fund;
(l) In loans secured by such collaterals like cash, government securities or guarantees of multilateral
institutions: Provided, That such investments shall not exceed thirty percent (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 the policies and guidelines which the Commission may
formulate.
No portion of the Investment Reserve Fund or income thereof shall accrue to the general fund of the National
Government or to any of its agencies or instrumentalities, including government-owned or controlled corporations,
except as may be allowed under this Act: Provided, That no portion of the Investment Reserve Fund shall be
invested for any purpose or in any instrument, institution or industry over and above the 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 may appoint local or, in the absence
thereof, foreign fund managers to manage the Investment 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 to the SSS, or lives of mortgagors whose properties
are mortgaged to the SSS. For 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 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 SSS under this paragraph.
(b) The SSS may insure any of its interest or part thereof with any private company or reinsurer. The Insurance
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 (2) years, but such examination shall be limited to the insurance
operation of the SSS as authorized under this paragraph 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 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 and regulations promulgated
thereunder shall have suppletory application insofar as it is not in conflict with this Act and its rules and regulations.
SEC. 27. Records and Reports. - The SSS President shall keep and cause to keep records of operations of the
funds of the SSS and of disbursements thereof and all accounts 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 Philippines and
to Congress of the Philippines a report of operations of the SSS during the preceding 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, and recommendations. He shall also
cause to be published in two (2) newspapers of general circulation in the Philippines a synopsis of the annual report,
showing in particular the status of the finances of the SSS and the benefits administered.
SEC. 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 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 Article One hundred seventy-two of the
Revised 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 any member, 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 for not 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, 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 the collection or payment of
contributions 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, 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 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 rules and 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 more than
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 the covered self-employed or to deduct contributions from the
employees compensation and remit the same to the SSS, the penalty shall be a fine of not less Five thousand pesos
(P5,000.00) nor more than Twenty thousand pesos (P20,000.00) and imprisonment 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 or partners 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 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 Article Two hundred
seventeen of the Revised Penal Code.
(h) Any employer who, after deducting the monthly contributions or loan amortizations from his employees
compensation, fails to remit the said deduction to the SSS within thirty (30) 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 Article Three hundred fifteen of the Revised Penal Code.
(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 office is located, if the violation was
committed within its territorial jurisdiction or in Metro Manila, at the option of the SSS.
SEC. 29. Government Aid. - The establishment of the SSS shall not disqualify the members and employers from
receiving such government assistance, financial or otherwise, as may be provided.
SEC. 30. Transitory Clause. - Any employer who is delinquent or has not remitted all contributions due and
payable to the SSS may, within six (6) months from the effectivity of this Act, remit said contributions or submit a
proposal to pay the same in installment within a period of not more than twelve (12) months from the effectivity of
this Act without incurring the prescribed penalty, subject to the implementing rules and regulations which the
Commission may prescribe:Provided, That the employer submits the corresponding collection lists together with the
remittance or proposal to pay in installments: Provided, further, That in case the employer fails to remit
contributions within the six-month grace period or defaults in the payment of any amortization provided the
approved proposal, the prescribed penalty shall be imposed from the time the 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 other provisions not affected
thereby shall remain valid.
SEC. 3. Repealing Clause. All laws, proclamations, executive orders, rules and regulations or parts thereof
inconsistent with this Act are hereby repealed, modified or amended accordingly: Provided, That no person shall be
deemed to be vested with any property 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 complete publication in the Official
Gazette or in at least two (2) national newspapers of general circulation whichever comes earlier.
Approved: May 01, 1997
 REPUBLIC ACT NO. 8291
AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS AMENDED, EXPANDING AND INCREASING THE
COVERAGE AND BENEFITS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM, INSTITUTING REFORMS
THEREIN AND FOR OTHER PURPOSES.

SECTION 1. Presidential Decree No. 1146, as amended, otherwise known as theRevised Government Service
Insurance Act of 1977, is hereby further amended to read as follows:
SECTION 1. Title. -The title of this Act shall be: The Government Service Insurance System Act of 1997.
A. DEFINITIONS
SEC. 2. Definition of terms.- Unless the context otherwise indicates, the following terms shall mean:
(a) GSIS- The Government Service Insurance System created by Commonwealth Act No. 186;
(b) Board- The Board of Trustees of the Government Service Insurance System;
(c) Employer- The national government, its political subdivisions, branches, agencies or instrumentalities, including
government-owned or controlled corporations, and financial institutions with original charters, the constitutional
commissions and the judiciary;
(d) Employee or Member- Any person receiving compensation while in the service of an employer as defined herein,
whether by election or appointment, irrespective of status of appointment, including barangay and Sanggunian
officials;
(e) Active Member- A member who is not separated from the service;
(f) Dependents- Dependents shall be the following: (a) the legitimate spouse dependent for support upon the
member or pensioner; (b) the legitimate, legitimated, legally adopted child, including the illegitimate child, who is
unmarried, not gainfully employed, not over the age of majority, or is over the age of majority but incapacitated and
incapable of self-support due to a mental or physical defect acquired prior to age of majority; and (c) the parents
dependent upon the member for support;
(g) Primary beneficiaries- The legal dependent spouse until he/she remarries and the dependent children;
(h) Secondary beneficiaries- The dependent parents and, subject to the restrictions on dependent children, the
legitimate descendants;
(i) Compensation- The basic pay or salary received by an employee, pursuant to his election/appointment,
excluding per diems, bonuses, overtime pay, honoraria, allowances and any other emoluments received in addition
to the basic pay which are not integrated into the basic pay under existing laws;
(j) Contribution- The amount payable to the GSIS by the member and the employer in accordance with Section 5 of
this Act;
(k) Current Daily Compensation- The actual daily compensation or the actual monthly compensation divided by the
number of working days in the month of contingency but not to exceed twenty-two (22) days;
(l) Average Monthly Compensation (AMC)- The quotient arrived at after dividing the aggregate compensation
received by the member during his last thirty-six (36) months of service preceding his separation/retirement/
disability/death by thirty-six (36), or by the number of months he received such compensation if he has less than
thirty-six (36) months of service: Provided, That the average monthly compensation shall in no case exceed the
amount and rate as may be respectively set by the Board under the rules and regulations implementing this Act as
determined by the actuary of the GSIS: Provided, further, That initially the average monthly compensation shall not
exceed Ten thousand pesos (P10,000.00), and premium shall be nine percent (9%) and twelve percent (12%) for
employee and employer covering the AMC limit and below and two percent (2%) and twelve percent (12%) for
employee and employer covering the compensation above the AMC limit;
(m) Revalued average monthly compensation- An amount equal to one hundred seventy percent (170%) of the first
One thousand pesos (P1,000.00) of the average monthly compensation plus one hundred percent (100%) of the
average monthly compensation in excess of One thousand pesos (P1,000.00);
(n) Lump sum- The basic monthly pension multiplied by sixty (60);
(o) Pensioner- Any person receiving old-age permanent total disability pension or any person who has received the
lump sum excluding one receiving survivorship pension benefits as defined in Section 20 of this Act;
(p) Gainful Occupation- Any productive activity that provided the member with income at least equal to the
minimum compensation of government employees;
(q) Disability- Any loss or impairment of the normal functions of the physical and/or mental faculty of a member
which reduces or eliminates his/her capacity to continue with his/her current gainful occupation or engage in any
other gainful occupation;
(r) Total Disability- Complete incapacity to continue with his present employment or engage in any gainful
occupation due to the loss or impairment of the normal functions of the physical and/or mental faculties of the
member;
(s) Permanent Total Disability- Accrues or arises when recovery from the impairment mentioned in Section 2 (Q) is
medically remote;
(t) Temporary Total Disability- Accrues or arises when the impaired physical and/or mental faculties can be
rehabilitated and/or restored to their normal functions;
(u) Permanent Partial Disability- Accrues or arises upon the irrevocable loss or impairment of certain portion/s of
the physical faculties, despite which the member is able to pursue a gainful occupation.

B. MEMBERSHIP IN THE GSIS

SEC. 3. Compulsory Membership. - Membership in the GSIS shall be compulsory for all employees receiving
compensation who have not reached the compulsory retirement age, irrespective of employment status, except
members of the Armed Forces of the Philippines and the Philippine National Police, subject to the condition that they
must settle first their financial obligation with the GSIS, and contractuals who have no employer and employee
relationship with the agencies they serve.
Except for the members of the judiciary and constitutional commissions who shall have life insurance only, all
members of the GSIS shall have life insurance, retirement, and all other social security protections such as disability,
survivorship, separation, and unemployment benefits.
SEC. 4. Effect of Separation from the Service. - A member separated from the service shall continue to be a
member, and shall be entitled to whatever benefits he has qualified to in the event of any contingency compensable
under this Act.

C. SOURCES OF FUNDS
SEC. 5. Contributions. - (a) It shall be mandatory for the member and employer to pay the monthly contributions
specified in the following schedule:
Monthly Compensation Percentage of Monthly
Compensation
 Payable by
Member Employer
I. Maximum Average
Monthly Compensation
(AMC) Limit and Below 9.0% 12.0%
II. Over the Maximum
AMC Limit
-Up to the Maximum
AMC Limit 9.0% 12.0%
-In Excess of the
AMC Limit 2.0% 12.0%
Members of the judiciary and constitutional commissioners shall pay three percent (3%) of their monthly
compensation as personal share and their employers a corresponding three percent (3%) share for their life
insurance coverage.
(b) The employer shall include in its annual appropriation the necessary amounts for its share of the contributions
indicated above, plus any additional premiums that may be required on account of the hazards or risks of its
employees occupation.
(c) It shall be mandatory and compulsory for all employers to include the payment of contributions in their annual
appropriations. Penal sanctions shall be imposed upon employers who fail to include the payment of contributions in
their annual appropriations or otherwise fail to remit the accurate/exact amount of contributions on time, or delay
the remittance of premium contributions to the GSIS. The heads of offices and agencies shall be administratively
liable for non-remittance or delayed remittance of premium contributions to the GSIS.
SEC. 6. Collection and Remittance of Contributions. (a) The employer shall report to the GSIS the names of all its
employees, their corresponding employment status, positions, salaries and such other pertinent information,
including subsequent changes therein, if any, as may be required by the GSIS; the employer shall deduct each
month from the monthly salary or compensation of each employee the contribution payable by him in accordance
with the schedule prescribed in the rules and regulations implementing this Act.
(b) Each employer shall remit directly to the GSIS the employees and employers contributions within the first ten
(10) days of the calendar month following the month to which the contributions apply. The remittance by the
employer of the contribution to the GSIS shall take priority over and above the payment of any and all obligations,
except salaries and wages of its employees.
SEC. 7. Interest on Delayed Remittances. - Agencies which delay the remittance of any and all monies due the GSIS
shall be charged interests as may be prescribed by the Board but not less than two percent (2%) simple interest per
month. Such interest shall be paid by the employers concerned.
SEC. 8. Government Guarantee. - The government of the Republic of the Philippines hereby guarantees the
fulfillment of the obligations of the GSIS to its members as and when they fall due.

D. BENEFITS
SEC. 9. Computation of the Basic Monthly Pension. - (a) The basic monthly pension is equal to:
1) thirty-seven and one-half percent (37.5%) of the revalued average monthly compensation; plus
2) two and one-half percent (2.5%) of said revalued average monthly compensation for each year of service in
excess of (15) years: Provided, That the basic monthly pension shall not exceed ninety percent (90%) of the
average monthly compensation.
(b) The basic monthly pension may be adjusted upon the recommendation of the President and General Manager of
the GSIS and approved by the President of the Philippines in accordance with the rules and regulations prescribed by
the GSIS: Provided, however, that the basic monthly pension shall not be less than One thousand and three hundred
pesos (P1,300.00): Provided, further, that the basic monthly pension for those who have rendered at least twenty
(20) years of service after the effectivity of this Act shall not be less than Two thousand four hundred pesos
(P2,400.00) a month.
SEC. 10. Computation of Service. (a) The computation of service for the purpose of determining the amount of
benefits payable under this Act shall be from the date of original appointment/election, including periods of service
at different times under one or more employers, those performed overseas under the authority of the Republic of the
Philippines, and those that may be prescribed by the GSIS in coordination with the Civil Service Commission.
(b) All service credited for retirement, resignation or separation for which corresponding benefits have been
awarded under this Act or other laws shall be excluded in the computation of service in case of reinstatement in the
service of an employer and subsequent retirement or separation which is compensable under this Act.
For the purpose of this section, the term service shall include full-time service with compensation: Provided, that
part-time and other services with compensation may be included under such rules and regulations as may be
prescribed by the GSIS.

SEPARATION BENEFITS
SEC. 11. Separation Benefits. The separation benefits shall consist of: (a) a cash payment equivalent to one
hundred percent (100%) of his average monthly compensation for each year of service he paid contributions, but
not less than Twelve thousand pesos (P12,000) payable upon reaching sixty (60) years of age upon separation,
whichever comes later: Provided, that the member resigns or separates from the service after he has rendered at
least three (3) years of service but less than fifteen (15) years; or
(b) a cash payment equivalent to eighteen (18) times his basic monthly pension at the time of resignation or
separation, plus an old-age pension benefit equal to the basic monthly pension payable monthly for life upon
reaching the age of sixty (60): Provided, that the member resigns or separates from the service after he has
rendered at least fifteen (15) years of service and is below sixty (60) years of age at the time of resignation or
separation.
SEC. 12. Unemployment or Involuntary Separation Benefits. Unemployment benefits in the form of monthly cash
payments equivalent to fifty percent (50%) of the average monthly compensation shall be paid to a permanent
employee who is involuntarily separated from the service due to the abolition of his office or position usually
resulting from reorganization: Provided, That he has been paying integrated contributions for at least one (1) year
prior to separation. Unemployment benefits shall be paid in accordance with the following schedules:
Contributions Made Benefit Duration
1 year but less than 3 years 2 months
3 or more years but less than 6 years 3 months
6 or more years but less than 9 years 4 months
9 or more years but less than 11 years 5 months
11 or more years but less than 15 years 6 months
The first payment shall be equivalent to two (2) monthly benefits. A seven-day (7) waiting period shall be imposed
on succeeding monthly payments.
All accumulated unemployment benefits paid to the employee during his entire membership with the GSIS shall be
deducted from voluntary separation benefits.
The GSIS shall prescribe the detailed guidelines in the operationalization of this section in the rules and regulations
implementing this Act.

RETIREMENT BENEFITS
SEC. 13. Retirement Benefits. (a) Retirement benefits shall be:
(1) the lump sum payment as defined in this Act payable at the time of retirement plus an old-age pension benefit
equal to the basic monthly pension payable monthly for life, starting upon expiration of the five-year (5) guaranteed
period covered by the lump sum; or
(2) cash payment equivalent to eighteen (18) months of his basic monthly pension plus monthly pension for life
payable immediately with no five-year (5) guarantee.
(b) Unless the service is extended by appropriate authorities, retirement shall be compulsory for an employee of
sixty-five (65) years of age with at least fifteen (15) years of service: Provided, That if he has less than fifteen (15)
years of service, he may be allowed to continue in the service in accordance with existing civil service rules and
regulations.
SEC. 13-A. Conditions for Entitlement. - A member who retires from the service shall be entitled to the retirement
benefits enumerated in paragraph (a) of Section 13 hereof: Provided, That:
(1) he has rendered at least fifteen years of service;
(2) he is at least sixty (60) years of age at the time of retirement; and
(3) he is not receiving a monthly pension benefit from permanent total disability.
SEC. 14. Periodic Pension Adjustment. - The monthly pension of all pensioners including all those receiving
survivorship pension benefits shall be periodically adjusted as may be recommended by the GSIS actuary and
approved by the Board in accordance with the rules and regulations prescribed by the GSIS.

PERMANENT DISABILITY BENEFITS

SEC. 15. General Conditions for Entitlement. - A member who suffers permanent disability for reasons not due to
his grave misconduct, notorious negligence, habitual intoxication, or willful intention to kill himself or another, shall
be entitled to the benefits provided for under Sections 16 and 17 immediately following, subject to the corresponding
conditions thereof.
SEC. 16. Permanent Total Disability Benefits. - (a) If the permanent disability is total, he shall receive a monthly
income benefit for life equal to the basic monthly pension effective from the date of disability: Provided, That:
(1) he is in the service at the time of disability; or
(2) if separated from the service, he has paid at least thirty-six (36) monthly contributions within the five (5) year
period immediately preceding disability, or has paid a total of at least one hundred eighty (180) monthly
contributions, prior to his disability: Provided, further, That if at the time of disability, he was in the service and has
paid a total of at least one hundred eighty (180) monthly contributions, in addition to the monthly income benefit, he
shall receive a cash payment equivalent to eighteen (18) times his basic monthly pension: Provided, finally, That a
member cannot enjoy the monthly income benefit for permanent disability and the old-age retirement
simultaneously.
(b) If a member who suffers permanent total disability does not satisfy conditions (1) and (2) in paragraph (a) of
this section but has rendered at least three (3) years of service at the time of his disability, he shall be advanced the
cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of
service he paid contributions, but not less than Twelve thousand pesos (P12,000.00) which should have been his
separation benefit.
(c) Unless the member has reached the minimum retirement age, disability benefit shall be suspended when:
(1) he is reemployed; or
(2) he recovers from his disability as determined by the GSIS, whose decision shall be final and binding; or
(3) he fails to present himself for medical examination when required by the GSIS.
(d) The following disabilities shall be deemed total and permanent:

(1) complete loss of sight of both eyes;

(2) loss of two (2) limbs at or above the ankle or wrist;
(3) permanent complete paralysis of two (2) limbs;
(4) brain injury resulting in incurable imbecility or insanity; and
(5) such other cases as may be determined by the GSIS.
SEC. 17. Permanent Partial Disability Benefits. - (a) If the disability is partial, he shall receive a cash payment in
accordance with a schedule of disabilities to be prescribed by the GSIS: Provided, That he satisfies either conditions
(1) or (2) of Section 16 (a);
(b) The following disabilities shall be deemed permanent partial:
(1) complete and permanent loss of the use of:
(i) any finger
(ii) any toe
(iii) one arm
(iv) one hand
(v) one foot
(vi) one leg
(vii) one or both ears
(viii) hearing of one or both ears
(ix) sight of both eyes

(2) such other cases as my be determined by the GSIS.

TEMPORARY DISABILITY BENEFITS

SEC. 18. Temporary Total Disability Benefits. - (a) A member who suffers temporary total disability for reasons not
due to any of the conditions enumerated in Section 15 hereof shall be entitled to seventy-five percent (75%) of his
current daily compensation for each day or fraction thereof of temporary disability benefit not exceeding one
hundred twenty (120) days in one calendar year after exhausting all his sick leave credits and collective bargaining
agreement sick leave benefits, if any, but not earlier than the fourth day of his temporary total
disability: Provided, That:
(1) he is in the service at the time of his disability; or
(2) if separated, he has rendered at least three (3) years of service and has paid at least six (6) monthly
contributions in the twelve-month period immediately preceding his disability.
Provided, however, That a member cannot enjoy the temporary total disability benefit and sick leave pay
simultaneously: Provided, further, That if the disability requires more extensive treatment that lasts beyond one
hundred twenty (120) days, the payment of the temporary total disability benefit may be extended by the GSIS but
not to exceed a total of two hundred forty (240) days.
(b) The temporary total disability benefit shall in no case be less than Seventy pesos (P70.00) a day.
(c) The notices required of the member and the employer, the mode of payment, and the other requirements for
entitlement to temporary total disability benefits shall be provided in the rules and regulations to be prescribed by
the GSIS.
SEC. 19. Non-scheduled Disability. - For injuries or illnesses resulting in a disability not listed in the schedule of
partial/total disability provided herein, the GSIS shall determined the nature of the disability and the corresponding
benefits therefor.

SURVIVORSHIP BENEFITS
SEC. 20. Survivorship Benefits. - When a member or pensioner dies, the beneficiaries shall be entitled to
survivorship benefits provided in Sections 21 and 22 hereunder subject to the conditions therein provided for. The
survivorship pension shall consist of:
(1) the basic survivorship pension which is fifty percent (50%) of the basic monthly pension; and
(2) the dependent childrens pension not exceeding fifty percent (50%) of the basic monthly pension
.
SEC. 21. Death of a Member. - (a) Upon the death of a member, the primary beneficiaries shall be entitled to:
(1) survivorship pension: Provided, That the deceased:
(i) was in the service at the time of his death; or
(ii) if separated from the service, has at least three (3) years of service at the time of his death and has paid thirty-
six (36) monthly contributions within the five-year period immediately preceding his death; or has paid a total of at
least one hundred eighty (180) monthly contributions prior to his death; or
(2) the survivorship pension plus a cash payment equivalent to one hundred percent (100%) of his average monthly
compensation for every year of service:Provided, That the deceased was in the service at the time of his death with
at least three (3) years of service; or
(3) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year
of service he paid contributions, but not less than Twelve thousand pesos (P12,000.00): Provided, That the deceased
has rendered at least three (3) years of service prior to his death but does not qualify for the benefits under item (1)
or (2) of this paragraph.
(b) The survivorship pension shall be paid as follows:
(1) when the dependent spouse is the only survivor, he/she shall receive the basic survivorship pension for life or
until he/she remarries;
(2) when only dependent children are the survivors, they shall be entitled to the basic survivorship pension for as
long as they are qualified, plus the dependent childrens pension equivalent to ten percent (10%) of the basic
monthly pension for every dependent child not exceeding five (5), counted from the youngest and without
substitution;
(3) when the survivors are the dependent spouse and the dependent children, the dependent spouse shall receive
the basic survivorship pension for life or until he/she remarries, and the dependent children shall receive the
dependent childrens pension mentioned in the immediately preceding paragraph (2) hereof.
(c) In the absence of primary beneficiaries, the secondary beneficiaries shall be entitled to:
(1) the cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year
of service he paid contributions, but not less than Twelve thousand pesos (P12,000.00): Provided, That the member
is in the service at the time of his death and has at least three (3) years of service; or
(2) in the absence of secondary beneficiaries, the benefits under this paragraph shall be paid to his legal heirs.
(d) For purposes of the survivorship benefits, legitimate children shall include legally adopted and legitimated
children.
SEC. 22. Death of a Pensioner. - Upon the death of an old-age pensioner or a member receiving the monthly
income benefit for permanent disability, the qualified beneficiaries shall be entitled to the survivorship pension
defined in Section 20 of this Act, subject to the provisions of paragraph (b) of Section 21 hereof. When the pensioner
dies within the period covered by the lump sum, the survivorship pension shall be paid only after the expiration of
the said period.

FUNERAL BENEFITS
SEC. 23. Funeral Benefits. - The amount of the funeral benefits shall be determined and specified by the GSIS in
the rules and regulations but shall not be less than Twelve thousand pesos (P12,000.00): Provided, That it shall be
increased to at least Eighteen thousand pesos (P18,000.00) after five (5) years and shall be paid upon the death of:
(a) an active member as defined under Section 2 (e) of this Act; or
(b) a member who has been separated from the service, but who may be entitled to future benefit pursuant to
Section 4 of this Act; or
(c) a pensioner, as defined in Section 2 (o) of this Act; or
(d) a retiree who at the time of his retirement was of pensionable age under this Act but who opted to retire under
Republic Act No. 1616.
LIFE INSURANCE BENEFITS
SEC. 24. Compulsory Life Insurance. - All employees except for Members of the Armed Forces of the Philippines
(AFP) and the Philippine National Police (PNP) shall, under such terms and conditions as may be promulgated by the
GSIS, be compulsorily covered with life insurance, which shall automatically take effect as follows:
(1) for those employed after the effectivity of this Act, their insurance shall take effect on the date of their
employment;
(2) for those whose insurance will mature after the effectivity of this Act, their insurance shall be deemed renewed
on the day following the maturity or expiry date of their insurance;
(3) for those without any life insurance as of the effectivity of this Act, their insurance shall take effect following said
effectivity.
SEC. 25. Dividends. - An annual dividend may be granted to all members of the GSIS whose life insurance is in
force for at least one (1) year in accordance with a dividends allocation formula to be determined by the GSIS.
SEC. 26. Optional Insurance. - Subject to the rules and regulations prescribed by the GSIS, a member may apply
for insurance and/or pre-need coverage embracing life, health, hospitalization, education, memorial plans, and such
other plans as may be designed by the GSIS, for himself and/or his dependents. Any employer may likewise apply
for group insurance coverage for its employees. The payment of the premiums/installments for optional insurance
and pre-need products may be made by the insured or his employer and/or any person acceptable to the GSIS.
SEC. 27. Reinsurance. - The GSIS may reinsure any of its interests or part thereof with any private company or
reinsurer whether domestic of foreign:Provided, That the GSIS shall submit an annual report on its reinsurance
operations to the Insurance Commission.

E. ADJUDICATION OF CLAIMS AND DISPUTES

SEC. 28. Prescription. - Claims for benefits under this Act except for life and retirement shall prescribe after four (4)
years from the date of contingency.
SEC. 29. Facility of Payment. The GSIS shall prescribe rules and regulations to facilitate payment of benefits,
proceeds, and claims under this Act and any other laws administered by the GSIS. Payments made by the GSIS prior
to its receipt of an adverse claim, to a beneficiary or claimant subsequently found not entitled thereto, shall not bar
the legal and eligible recipient to his right to demand the payment of benefits, proceeds, and claims from the GSIS,
who shall, however, have a right to institute the appropriate action in a court of law against the ineligible recipient.
SEC. 30. Settlement of Disputes. - The GSIS shall have original and exclusive jurisdiction to settle any disputes
arising under this Act and any other laws administered by the GSIS.
The Board may designate any member of the Board, or official of the GSIS who is a lawyer, to act as hearing officer
to receive evidence, make findings of fact and submit recommendations, together with all documentary and
testimonial evidence to the Board within thirty (30) working days from the time the parties have closed their
respective evidence and filed their last pleading. The Board shall decide the case within thirty (30) days from the
receipt of the hearing officers findings and recommendations. The cases heard directly by the Board shall be decided
within thirty (30) working days from the time they are submitted by the parties for decision.
SEC. 31. Appeals. - Appeals from any decision or award of the Board shall be governed by Rules 43 and 45 of the
1997 Rules of Civil Procedure adopted by the Supreme Court on April 8, 1997 which will take effect on July 1,
1997:Provided, That pending cases and those filed prior to July 1, 1997 shall be governed by the applicable rules of
procedure: Provided, further, That the appeal shall take precedence over all other cases except criminal cases when
the penalty of life imprisonment or death or reclusion perpetua is imposable.
The appeal shall not stay the execution of the order or award unless ordered by the Board, by the Court of Appeals
or by the Supreme Court and the appeal shall be without prejudice to the special civil action of certiorari when
proper.
SEC. 32. Execution of Decision. - When no appeal is perfected and there is no order to stay by the Board, by the
Court of Appeals or by the Supreme Court, any decision or award of the Board shall be enforced and executed in the
same manner as decisions of the Regional Trial Court. For this purpose, the Board shall have the power to issue to
the city or provincial sheriff or its appointed sheriff 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, writ or
process after being required to do so shall, upon application by the GSIS, be punished for contempt.
SEC. 33. Oaths, Witnesses, and Production of Records. - When authorized by the Board, an official or employee of
the GSIS shall have the power to administer oath and affirmation, take deposition, certify to official acts, and
issuesubpoena ad testificandum and subpoena duces tecum to compel the attendance of witnesses and the
production of books, papers, correspondences, 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 580 of the Revised Administrative Code.

F. FUNDS OF THE GSIS

SEC. 34. Funds. - All contributions payable under Section 5 of this Act together with the earnings and accruals
thereon shall constitute the GSIS Social Insurance Fund. The said fund shall be used to finance the benefits
administered by the GSIS under this Act. In addition, the GSIS shall administer the optional insurance fund for the
insurance coverage described in Section 26 hereof, the Employees Compensation Insurance Fund created under P.D.
626, as amended, General Insurance Fund created under Act No. 656, as amended, and such other special funds
existing or that may be created for special groups or persons rendering services to the government. The GSIS shall
maintain the required reserves to guarantee the fulfillment of its obligations under this Act.
The funds of the GSIS shall not be used for purposes other than what are provided for under this Act. Moreover, no
portion of the funds of the GSIS or income thereof shall accrue to the General Fund of the national government and
its political subdivisions, instrumentalities and other agencies including government-owned and controlled
corporations except as may be allowed under this Act.
SEC. 35. Deposits and Disbursements. - All revenues collected and all accruals thereto shall be deposited,
administered and disbursed in accordance with the law. A maximum expense loading of twelve percent (12%) of the
yearly revenues from all sources may be disbursed for administrative and operational expenses except as may be
otherwise approved by the President of the Philippines on the basis of actuarial and management studies.
SEC. 36. Investment of Funds. - The funds of the GSIS which are not needed to meet the current obligations may
be invested under such terms and conditions and rules and regulations as may be prescribed by the
Board: Provided, That investments shall satisfy the requirements of liquidity, safety/security and yield in order to
ensure the actuarial solvency of the funds of the GSIS: Provided, further, That the GSIS shall submit an annual
report on all investments made to both Houses of Congress of the Philippines, to wit:
(a) in interest-bearing bonds or securities or other evidence of indebtedness of the Government of the Philippines;
(b) in interest-bearing deposits or securities in any domestic bank doing business in the Philippines: Provided, That
in the case of such deposits, there 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 the said bank has prior designation as
a depository for the purpose by the Monetary Board of the Central Monetary Authority;
(c) in direct housing loans to members and group housing projects secured by first mortgage, giving priority to the
low income groups and in short and medium term loans to members such as salary, policy, educational, emergency
stock purchase plan and other similar loans: Provided, That no less than forty percent (40%) of the investible fund of
the GSIS Social Insurance Fund shall be invested for these purposes;
(d) in bonds, securities, promissory notes or other evidence of indebtedness of educational or medical institutions to
finance the construction, improvement and maintenance of schools and hospitals;
(e) in real estate property including shares of stocks involving real state property and investments secured by first
mortgages on real estate or other collaterals acceptable to the GSIS: Provided, That such investment shall, in the
determination of the Board, redound to the benefit of the GSIS, its members as well as the general public;
(f) in debt instruments and other securities traded in the secondary markets;
(g) in loans to, or in bonds, debentures, promissory notes or other evidence of indebtedness of any solvent
corporation created or existing under the laws of the Philippines;
(h) in common and preferred stocks of any solvent corporation or financial institution created or existing under the
laws of the Philippines listed in the stock exchange with proven track record of profitability over the last three (3)
years and payment of dividends at least once over the same period;
(i) in domestic mutual funds including investments related to the operations of mutual funds; and
(j) in foreign mutual funds and in foreign currency deposits or foreign currency-denominated debts, non-speculative
equities and other financial instruments or other assets issued in accordance with existing laws of the countries
where such financial instruments are issued: Provided, That these instruments or assets are listed in bourses of the
respective countries where these instruments or assets are issued:Provided, further, That the issuing company has
proven track record of profitability over the last three (3) years and payment of dividends at least once over the
same period.
SEC. 37. Records and Reports. The GSIS shall keep and cause to keep such records as may be necessary for the
purpose of making actuarial studies, calculations and valuations of the funds of the GSIS including such data needed
in the computation of rates of disability, mortality, morbidity, separation and retirement among the members and
any other information useful for the adjustment of the benefits of the members. The GSIS shall maintain appropriate
books of accounts to record its assets, liabilities, income, expenses, receipts and disbursement of funds and other
financial transactions and operations.
SEC. 38. Examination and Valuation of the Funds. - The GSIS shall make a periodic actuarial examination and
valuation of its funds in accordance with accepted actuarial principles.
SEC. 39. Exemption from Tax, Legal Process and Lien. - It is hereby declared to be the policy of the State that the
actuarial solvency of the funds of the GSIS shall be preserved and maintained at all times and that contribution rates
necessary to sustain the benefits under this Act shall be kept as low as possible in order not to burden the members
of the GSIS and their employers. Taxes imposed on the GSIS tend to impair the actuarial solvency of its funds and
increase the contribution rate necessary to sustain the benefits of this Act. Accordingly, notwithstanding any laws to
the contrary, the GSIS, its assets, revenues including all accruals thereto, and benefits paid, shall be exempt from all
taxes, assessments, fees, charges, or duties of all kinds. These exemptions shall continue unless expressly and
specifically revoked and any assessment against the GSIS as of the approval of this Act are hereby considered paid.
Consequently, all laws, ordinances, regulations, issuances, opinions or jurisprudence contrary to or in derogation of
this provision are hereby deemed repealed, superseded and rendered ineffective and without legal force and effect.
Moreover, these exemptions shall not be affected by subsequent laws to the contrary unless this section is
expressly, specifically and categorically revoked or repealed by law and a provision is enacted to substitute or
replace the exemption referred to herein as an essential factor to maintain or protect the solvency of the fund,
notwithstanding and independently of the guaranty of the national government to secure such solvency or liability.
The funds and/or the properties referred to herein as well as the benefits, sums or monies corresponding to the
benefits under this Act shall be exempt from attachment, garnishment, execution, levy or other processes issued by
the courts, quasi-judicial agencies or administrative bodies including Commission on Audit (COA) disallowances and
from all financial obligations of the members, including his pecuniary accountability arising from or caused or
occasioned by his exercise or performance of his official functions or duties, or incurred relative to or in connection
with his position or work except when his monetary liability, contractual or otherwise, is in favor of the GSIS.

G. ADMINISTRATION
SEC. 40. Implementing Body. The Government Service Insurance System as created under Commonwealth Act
No. 186 shall implement the provisions of this Act.
SEC. 41. Powers and Functions of the GSIS. - The GSIS shall exercise the following powers and functions:
(a) to formulate, adopt, amend and/or rescind such rules and regulations as may be necessary to carry out the
provisions and purposes of this Act, as well as the effective exercise of the powers and functions, and the discharge
of duties and responsibilities of the GSIS, its officers and employees;
(b) to adopt or approve the annual and supplemental budget of receipts and expenditures including salaries and
allowances of the GSIS personnel; to authorize such capital and operating expenditures and disbursements of the
GSIS as may be necessary and proper for the effective management and operation of the GSIS;
(c) to invest the funds of the GSIS, directly or indirectly, in accordance with the provisions of this Act;
(d) to acquire, utilize or dispose of, in any manner recognized by law, real or personal property in the Philippines or
elsewhere necessary to carry out the purposes of this Act;
(e) to conduct continuing actuarial and statistical studies and valuations to determine the financial condition of the
GSIS and taking into consideration such studies and valuations and the limitations herein provided, re-adjust the
benefits, contributions, premium rates, interest rates or the allocation or re-allocation of the funds to the
contingencies covered;
(f) to have the power of succession;
(g) to sue and be sued;
(h) to enter into, make, perform and carry out contracts of every kind and description with any person, firm or
association or corporation, domestic or foreign;
(i) to carry on any other lawful business whatsoever in pursuance of, or in connection with the provisions of this Act;
(j) to have one or more offices in and outside of the Philippines, and to conduct its business and exercise its powers
throughout and in any part of the Republic of the Philippines and/or in any or all foreign countries, states and
territories: Provided, That the GSIS shall maintain a branch office in every province where there exists a minimum of
fifteen thousand (15,000) membership;
(k) to borrow funds from any source, private or government, foreign or domestic, only as an incident in the
securitization of housing mortgages of the GSIS and on account of its receivables from any government or private
entity;
(l) to invest, own or otherwise participate in equity in any establishment, firm or entity;
(m) to approve appointments in the GSIS except appointments to positions which are policy determining, primarily
confidential or highly technical in nature according to the Civil Service rules and regulations: Provided, That all
positions in the GSIS shall be governed by the compensation and position classification system and qualifications
standards approved by the GSIS Board of Trustees based on a comprehensive job analysis and audit of actual duties
and responsibilities: Provided, further, That the compensation plan shall be comparable with the prevailing
compensation plans in the private sector and shall be subject to the periodic review by the Board no more than once
every four (4) years without prejudice to yearly merit reviews or increases based on productivity and profitability;
(n) to design and adopt an Early Retirement Incentives Plan (ERIP) and/or financial assistance for the purpose of
retirement for its own personnel;
(o) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits
extended to members or other persons, whether natural or juridical;
(p) to enter into agreement with the Social Security System or any other entity, enterprise, corporation or
partnership for the benefit of members transferring from one system to another subject to the provisions of Republic
Act No. 7699, otherwise known as the Portability Law;
(q) to be able to float proper instrument to liquefy long-term maturity by pooling funds for short-term secondary
market;
(r) to submit annually, not later than June 30, a public report to the President of the Philippines and the
Congress of the Philippines regarding its activities in the administration and enforcement of this Act during the
preceding year including information and recommendations on board policies for the development and perfection of
the programs of the GSIS;
(s) to maintain a provident fund, which consists of contributions made by both the GSIS and its officials and
employees and their earnings, for the payments of benefits to such officials and employees or their heirs under such
terms and conditions as it may prescribe;
(t) to approve and adopt guidelines affecting investments, insurance coverage of government properties, settlement
of claims, disposition of acquired assets, privatization or expansion of subsidiaries, development of housing projects,
increased benefit and loan packages to members, and the enforcement of the provision of this Act;
(u) any provision of law to the contrary notwithstanding, to authorize the payment of extra remuneration to the
officials and employees directly involved in the collection and/or remittances of contributions, loan repayments, and
other monies due to the GSIS at such rates and under such conditions as it may adopt: Provided, That the best
interest of the GSIS shall be observed thereby;
(v) to determine, fix and impose interest upon unpaid premiums due from employers and employees;
(w) to ensure the collection or recovery of all indebtedness, liabilities and/or accountabilities, including unpaid
premiums or contributions in favor of the GSIS arising from any cause or source whatsoever, due from obligors,
whether public or private. The Board shall demand payment or settlement of the obligations referred to herein within
thirty (30) days from the date the obligation becomes due, and in the event of failure or refusal of the obligor or
debtor to comply with the demand, to initiate or institute the necessary or proper actions or suits, criminal, civil or
administrative or otherwise, before the courts, tribunals, commissions, boards, or bodies of proper jurisdiction within
thirty (30) days reckoned from the expiry date of the period fixed in the demand within which to pay or settle the
account;
(x) to design and implement programs that will promote and mobilize savings and provide additional resources for
social security expansion and at the same time afford individual members appropriate returns on their
savings/investments. The programs shall be so designed as to spur socio-economic take-off and maintain continued
growth; and
(y) to exercise such powers and perform such other acts as may be necessary, useful, incidental or auxiliary to carry
out the provisions of this Act, or to attain the purposes and objectives of this Act.
SEC. 42. The Board of Trustees; its Composition; Tenure and Compensation. -The corporate powers and functions
of the GSIS shall be vested in and exercised by the Board of Trustees composed of the President and General
Manager of the GSIS and eight (8) other members to be appointed by the President of the Philippines, one (1) of
whom shall be either the President of the Philippine Public School Teachers Association (PPSTA) or the President of
the Philippine Association of School Superintendents (PASS), another two (2) shall represent the leading
organizations or associations of government employees/retirees, another four (4) from the banking, finance,
investment, and insurance sectors, and one (1) recognized member of the legal profession who at the time of
appointment is also a member of the GSIS. The Trustees shall elect from among themselves a Chairman while the
President and General Manager of the GSIS shall automatically be the vice-chairman.
The Trustees, except the President and General Manager who shall cease as trustee upon his separation, shall hold
office for six (6) years without reappointment, or until their successors are duly appointed and qualified. Vacancy,
other than through the expiration of the term, shall be filled for the unexpired term only. The members of the Board
shall be entitled to a per diem of Two thousand five hundred pesos (P2,500.00) for each board meeting actually
attended by them, but not to exceed Ten thousand pesos (P10,000.00) a month and reasonable transportation and
representation allowances as may be fixed by the Board.
SEC. 43. Powers and Functions of the Board of Trustees. The Board of Trustees shall have the following powers
and functions:
(a) to formulate the policies, guidelines and programs to effectively carry out the purposes of this Act;
(b) to promulgate such rules and regulations as may be necessary or proper for the effective exercise of the powers
and functions as well as the discharge of the duties and responsibilities of the GSIS, its officers and employees;
(c) upon the recommendation of the President and General Manager, to approve the annual and supplemental
budget of receipts and expenditures of the GSIS, and to authorize such operating and capital expenditures and
disbursements of the GSIS as may be necessary or proper for the effective management, operation and
administration of the GSIS;
(d) upon the recommendation of the President and General Manager, to approve the GSIS organizational and
administrative structure and staffing pattern, and to establish, fix, review, revise and adjust the appropriate
compensation packages for the officers and employees of the GSIS and reasonable allowances, incentives, bonuses,
privileges and other benefits as may be necessary or proper for the effective management, operation and
administration of the GSIS, which shall be exempt from Republic Act No. 6758, otherwise known as the Attrition
Law;
(e) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and
credits extended to its members or other persons, whether natural or juridical;
(f) the provision of any law to the contrary notwithstanding, to compromise or release, in whole or in part, any
claim or settle liability to the GSIS, regardless of the amount involved, under such terms and conditions as it may
impose for the best interest of the GSIS;
(g) to approve and adopt guidelines affecting investments, insurance coverage of government properties,
settlement of claims, disposition of acquired assets, development of housing projects, increased benefit and loan
packages to members, and the enforcement of the provisions of this Act;
(h) to determine, fix, and impose interest upon unpaid or unremitted premiums and/or contributions; and
(i) to do and perform any and all acts necessary, proper or incidental to the attainment of the purposes and
objectives of this Act.
SEC. 44. Appointment, Qualifications, and Compensation of the President and General Manager and of other
Personnel. - The President and General Manager of the GSIS shall be its Chief Executive Officer and shall be
appointed by the President of the Philippines. He shall be a person with management and investments expertise
necessary for the effective performance of his duties and functions under this Act.
The GSIS President and General Manager shall be assisted by one or more executive vice-presidents, senior vice-
presidents and managers in addition to the usual supervisory and rank-and-file positions who shall be appointed and
removed by the President and General Manager with the approval of the Board, in accordance with the existing Civil
Service rules and regulations.
SEC. 45. Powers and Duties of the President and General Manager. The President and General Manager of the
GSIS shall, among others, execute and administer the policies and resolutions approved by the Board and direct and
supervise the administration and operations of the GSIS. The President and General Manager, subject to the
approval of the Board, shall appoint the personnel of the GSIS, remove, suspend or otherwise discipline them for
cause, in accordance with the existing Civil Service rules and regulations, and prescribe their duties and
qualifications to the end that only competent persons may be employed.
SEC. 46. Auditor. - (a) The Chairman of the Commission on Audit shall be theex officio auditor of the GSIS, and the
necessary personnel to assist said representative in the performance of his duties.
(b) The Chairman of the Commission on Audit or his authorized representatives, shall submit to the Board soon
after the close of each calendar year, an audited statement showing the financial condition and progress of the GSIS
for the calendar year just ended.
SEC. 47. Legal Counsel. - The Government Corporate Counsel shall be the legal adviser and consultant of the GSIS,
but the GSIS may assign to the Office of the Government Corporate Counsel (OGCC) cases for legal action or trial,
issues for legal opinions, preparation and review of contracts/agreements and others, as the GSIS may decide or
determine from time to time: Provided, however, That the present legal services group in the GSIS shall serve as its
in-house legal counsel.
The GSIS may, subject to approval by the proper court, deputize any personnel of the legal service group to act as
special sheriff in the enforcement of writs and processes issued by the court, quasi-judicial agencies or
administrative bodies in cases involving the GSIS.
SEC. 48. Powers of the Insurance Commission. - The Insurance Commissioner or his authorized representatives
shall make an examination of financial condition and methods of transacting business of the GSIS at least once every
three (3) years and the report of said examination shall be submitted to the Board of Trustees and copies thereof be
furnished the Office of the President of the Philippines and the two houses of the Congress of the Philippines within
five (5) days after the close of examination: Provided, however, That for each examination, the GSIS shall pay the
office of the Insurance Commissioner an amount equal to the actual expenses incurred by the said office in the
conduct of examination, including the salaries of the examiners and of the actuary of such examination for the actual
time spent.

H. GENERAL PROVISION
SEC. 49. Dispensation of Social Insurance Benefits. - (a) The GSIS shall pay the retirement benefits to the
employee on his last day of service in the government:Provided, That all requirements are submitted to the GSIS
within a reasonable period prior to the effective date of the retirement;
(b) The GSIS shall discontinue the processing and adjudication of retirement claims under R.A. No. 1616 except
refund of retirement premium under R. A. No. 910. Instead, all agencies concerned shall process and pay the
gratuities of their employees. The Board shall adopt the proper rules and procedures for the implementation of this
provision.
SEC. 50. Development and Disposition of Acquired Assets. - The GSIS shall have the right to develop and dispose of
its acquired assets obtained in the ordinary course of its business. To add value to, improve profitability on, and/or
enhance the marketability of an acquired asset, the GSIS may further develop/renovate the same either with its own
capital or through a joint venture arrangement with private companies or individuals.
The GSIS may sell its acquired assets in accordance with existing Commission on Audit (COA) rules and regulations
for an amount not lower than the current market value of the property. For this purpose, the GSIS shall conduct an
annual appraisal of its property or acquired assets to determine its current market value. All notices of sale shall be
published in newspapers of general circulation.
No injunction or restraining order issued by any court, commission, tribunal or office shall bar, impede or delay the
sale and disposition by the GSIS of its acquired assets except on questions of ownership and national or public
interest.
SEC. 51. Government Assistance to the GSIS. - The GSIS may call upon any employer for such assistance as may
be necessary in the discharge of its duties and functions.

I. PENAL PROVISIONS
SEC. 52. Penalty. - (a) Any person found to have participated directly or indirectly in the commission of fraud,
collusion, falsification, or misrepresentation in any transaction with the GSIS, whether for him or for some other
persons, shall suffer the penalties provided for in Article 172 of the Revised Penal Code.
(b) Whoever shall obtain or receive any money or check invoking any provision of this Act or any agreement
thereunder, without being entitled thereto with the intent to defraud any member, any employer, the GSIS, or any
third party, 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 by imprisonment of not less than six (6) years and one (1) day to twelve (12)
years, or both, at the discretion of the court.
(c) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations adopted by
the GSIS, 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 of not less than six (6) years and one (1) day to twelve (12) years, or
both, at the discretion of the court.
(d) The treasurer, finance officer, cashier, disbursing officer, budget officer or other official or employee who fails to
include in the annual budget the amount corresponding to the employer and employee contributions, or who fails or
refuses or delays by more than thirty (30) days from the time such amount becomes due and demandable, or to
deduct the monthly contributions of the employee shall, upon conviction by final judgment, suffer the penalties of
imprisonment from six (6) months and one (1) day to six (6) years, and a fine of not less than Three thousand pesos
(P3,000.00) but not more than Six thousand pesos (P6,000.00), and in addition, shall suffer absolute perpetual
disqualification from holding public office and from practicing any profession or calling licensed by the government.
(e) Any employee or member who receives or keeps fund or property belonging, payable or deliverable to the GSIS
and appropriates the same, or takes or misappropriates or uses the same for any purpose other than authorized by
this Act, or permits another person to take, misappropriate or use said fund or property by expressly consenting
thereto, or through abandonment or negligence, or is otherwise guilty of the misappropriation of said fund or
property, in whole or in part, shall suffer the penalties provided in Article 217 of the Revised Penal Code, and in
addition, shall suffer absolute perpetual disqualification from holding public office and from practicing any profession
or calling licensed by the government.
(f) Any employee who, after deducting the monthly contribution or loan amortization from a members
compensation, fails to remit the same to the GSIS within thirty (30) days from the date they should have been
remitted under Section 6(a), shall be presumed to have misappropriated such contribution or loan amortization and
shall suffer the penalties provided in Article 315 of the Revised Penal Code, and in addition, shall suffer absolute
perpetual disqualification from holding public office and from practicing any profession or calling licensed by the
government.
(g) The heads of the offices of the national government, its political subdivisions, branches, agencies and
instrumentalities, including government-owned or controlled corporations and government financial institutions, and
the personnel of such offices who are involved in the collection of premium contributions, loan amortization and
other accounts due the GSIS who shall fail, refuse or delay the payment, turnover, remittance or delivery of such
accounts to the GSIS within thirty (30) days from the time that the same shall have been due and demandable shall,
upon conviction by final judgment, suffer the penalties of imprisonment of not less than one (1) year nor more than
five (5) years and a fine of not less than Ten thousand pesos (P10,000.00) nor more than Twenty thousand pesos
(P20,000.00), and in addition, shall suffer absolute perpetual disqualification from holding public office and from
practicing any profession or calling licensed by the government.
(h) The officers and/or personnel referred to in paragraph (g) of this section shall be liable not only criminally but
also civilly to the GSIS or to the employee or member concerned in the form of damages, including surcharges and
interests.
(i) For the charges or complaints referred to in paragraph (g) of this section, the liabilities therein set forth shall be
construed as waiver of the State of its immunity from suit, hence, the above-mentioned officials and/or personnel
may not invoke the defense of non-suability of the State.
(j) Failure of the Members of the GSIS Board, including the chairman and the vice-chairman, to comply with the
provisions of paragraph (w) of Section 41 hereof, shall subject them to imprisonment of not less than six (6) months
nor more than one (1) year or a fine of not less than Five thousand pesos (P5,000.00) nor more than Ten thousand
pesos (P10,000.00) without prejudice to any civil or administrative liability which may also arise therefrom.
(k) Criminal actions arising from violations of the provisions of this Act may be commenced by the GSIS or by the
aggrieved member, either under this Act or, in appropriate cases, under the Revised Penal Code.
SEC. 53. Implementing Rules and Regulations. - The implementing rules and regulations to carry out the provisions
of this Act shall be adopted and promulgated by the GSIS not later than ninety (90) days after the approval of this
Act.
SEC. 54. Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges, Functions and Activities. - Nothing in
this Act shall be construed to repeal, amend or limit any provision of existing laws, Presidential Decrees and Letters
of Instructions, not otherwise specifically inconsistent with the provisions of this Act.
SEC. 55. Exclusiveness of Benefits. - Whenever other laws provide similar benefits for the same contingencies
covered by this Act, the member who qualifies to the benefits shall have the option to choose which benefits will be
paid to him. However, if the benefits provided by the law chosen are less than the benefits provided under this Act,
the GSIS shall pay only the difference.
SEC. 56. Appropriations. - The amount necessary to carry out the provisions of this Act shall be included in the
respective budgets of the agencies in the national government obligation program of the year following its
enactment into law and thereafter.
SEC. 2. Separability Clause. - Should any provision of this Act or any part thereof be declared invalid, the other
provisions, so far as they are separable from the invalid ones, shall remain in force and effect.
SEC. 3. Repealing Clause. All laws and any other law or parts of law specifically inconsistent herewith are hereby
repealed or modified accordingly: Provided, That the rights under the existing laws, rules and regulations vested
upon or acquired by an employee who is already in the service as of the effectivity of this Act shall remain in force
and effect: Provided, further, That subsequent to the effectivity of this Act, a new employee or an employee who has
previously retired or separated and is reemployed in the service shall be covered by the provisions of this Act.
SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in at
least two (2) newspapers of general circulation.
This Act, which is a consolidation of Senate Bill No. 2013 and House Bill No. 8561, was finally passed by the Senate
and the House of Representatives on May 29, 1997 and May 28, 1997, respectively.
Approved: May 30, 1997.