SOCIAL SECURITY ACT OF 1997

Development of the Law;

RA No. 1161 approved on July 18, 1954. Effective September 1, 1957

RA No. 1972 deleted the provisions on unemployment benefits.
RA 2658 the coverage of SSS was broadened
RA 3839- retirement benefits increased and the minimum age requirement removed.
RA 4482 reimbursable amount for sickness was increased.
RA No. 4857, PD 24, 117, 347, 735, 1202, 1636, EO 28, 102, RA 7332 several laws which
increases the amount of social security benefits
RA No. 7322 approved on MAY 1, 1997

Validity of Social Security Law

- Police Power

(The provision of Social Security Law are to be liberally construed in favour of those seeking
its benefits)

(Social Security Law is not a Law on Succession)

(Social Security Law is not part of taxation System and its funds are private funds)

Coverage of Social Security Law

- Predicated on the existence of employer-employee relationship

Compulsory Coverage

- All employers engaged in business in the Philippines, including religious, charitable or

non profit organizations;
- All employees not over 60 years of age
- Domestic helpers receiving P1,000.00 per month
- Aliens employed in the Philippines
- Self employed persons, including, but not limited to;
o Self employed Professionals
o Partners and Single proprietors of business
o Actors, Actresses, directors, scriptwriters, and News Correspondents
o Professional Athletes, coaches, trainers and jockeys
o Individual Farmers and Fishermans

Voluntary Coverage

a) Spouses who devote full time to managing the house-hold and family affairs, and
b) Filipinos recruited for overseas employment by foreign based employers

When a person has secured an SSS number does it mean that he is already an SSS
member

- No. He will be considered only when he has been reported for SSS coverage and has
paid at least one month contribution.

Can a member withdraw his membership with the SSS?

- No
Employees not covered by SSS Law

- Purely casual employees

- Employees serving on an alien vessel, when such vessel is outside the Philippines
- Employees of the Philippine government or any of its instrumentalities and agencies
- Employees of foreign government, international organization, and their wholly-owned
instrumentality
- Temporary Employees

Obligation of employer under the Social Security Law

- To make a timely report of its employees for coverage

(If the employer fails to report the employees for SSS coverage or fails to remit the
premium contributions, such failure or refusal shall not prejudice the right of the covered
employee to social security benefits)

- To make timely remittance of premiums

(Failure to make timely remittance of the premium contributions will hold the employer
liable to 3% monthly penalty from the date the contributions falls due until paid)

(Good Faith is not a defense)

(Demand is not a condition precedent for remittance or premium contributions)

Contribution of Self Employed

- The self- employed pays both the employers and employees contributions.

The Social Security Benefits

A. Maternity Leave Benefit

B. Sickness Benefits
C. Permanent disability Benefits
D. Retirement Benefits
E. Death Benefits
F. Funeral Benefit

Primary Beneficiaries

- The dependent spouse, until he or she remarries

- The dependent legitimate, legitimated or legally adopted, and illegitimate children.

Secondary Beneficiaries

- The dependent parents

- Any other person designated by the member as his secondary beneficiary

The Dependents

- The Legal Spouse entitled by law to receive support from member

- The Legitimate, legitimated, legally adopted and illegitimate child who;

Is unmarried
Has not reached twenty-one years of age
If over 21 he is conginetally incapacitated or while still a minor has been permanently
incapacitated and incapable of self-support, physically or mentally

- The parent who is receiving regular support from the member

The Dependents pension

- Is equivalent to 10% of the monthly pension or P250, whichever is higher, payable to

each dependent child conceived on or before the date of contingency but not exceeding
5 beginning with the youngest and without substitution

The Social Security System

The SSS is the implementing arm of the Social Security Act. It is a corporate body
directed and controlled by the Social Security Commission.

The Social Security System may sue and be sued.

The Social Security Commission

The Social Security Commission in composed of the following;

- Secretary of Labor and Employment or his duly designated undersecretary

- SSS President
- Seven (7) members to be appointed by the President of the Philippines, to wit:

3 representing the workers group at least one of whom shall be a woman

3 representing the employers group at least one of whom shall be a woman
1 representing the general public who should have adequate knowledge and
experience regarding social security

Quasi Judicial functions of the SSC

The SSC has jurisdiction over disputes arising under the Social Security Act with
respect to coverage, entitlement of benefits, collection and settlement of contributions and
penalties thereon, or any matters related thereto.

Appeal from decision of the SSC

Decisions of the SSC are appealable to the Court of Appeals under Rule 43 of the Rules
of Court by filing a verified petition for review within 15 days from notice of judgement. Judicial
review thereof shall be permitted only after any party claiming to be aggrieved thereby has
exhausted his remedies before the Commission.