SLIDE 1

RA 8282 - SSS
Introduction
The concept of social security evolved from an age-old search
of man for protection against poverty, which breeds grave
social ills that not only threaten his survival but also erode his
sense of human dignity. It, therefore, becomes the duty of the
State to operate a mechanism that would provide such
protection to its people.
Legislative History
On Jan. 26, 1948, Pres. Manuel A. Roxas proposed a bill
seeking to establish a social security system for wage earners
and low-salaried employees. This was recommended to
Congress
in
his
State
of
the
Nation
Address.
After the death of President Roxas, Pres. Elpidio Quirino
created the Social Security Study Commission on July 7, 1948.
The creation of the Commission was his first official act upon
his assumption to office. Based on the report of the Study
Commission, a draft of the Social Security Act was submitted
to Congress.
In 1954, Rep. Floro Crisologo, Senators Cipriano Primicias and
Manuel Briones introduced bills based on the report of the
Social Security Study Commission in the House of
Representatives and in the Senate. These bills were
consolidated and enacted into Republic Act (RA) 1161, better
known
as
the
Social
Security
Act
of
1954.
However, business and labor groups objected to the Social
Security Act resulting in a deferment of its implementation.
In 1957, amendatory bills were presented in Congress. These
bills were the bases of RA 1792, which amended the original
Social Security Act.
On Sep. 1, 1957, the Social Security Act of 1954 or the Social
Security Law (SS Law) was finally implemented, marking a
significant milestone in the social security program.
Thus, with the implementation of the SS law, the government
also adopted the social insurance approach to social security,
covering the employed segment of the labor force in the
private sector. In 1993, household helpers earning at least
P1,000 were included in the compulsory coverage of
employees.

strengthening the SSS. Also known as the Social Security Act

of 1997, it amended RA 1161, providing for better benefit
packages, expansion of coverage, flexibility of investments,
stiffer penalties for violators of the law, condonation of
penalties of delinquent employers and the establishment of a
voluntary provident fund for members.
The EC program, started in 1975, provides double
compensation effective June 1984 to the worker when the
illness, death, or accident occurs during work-related
activities. EC benefits are granted only to members with
employers other than themselves.

SSS used to administer the Medicare program for

hospitalization and other medical needs of the private sector
workers; and the Government Service Insurance System
(GSIS), for the public sector workers. However, with the
passage of Republic Act 7875 or the National Health Insurance
Act of 1995, the SSS and GSIS transferred the administration
of the Medicare program to the Philippine Health Insurance
Corporation (PhilHealth) for an integrated and comprehensive
approach to health development effective July 1999.
SSS retirement, death, and total disability pensioners prior to
the effectivity of RA 7875 on March 4, 1995 are entitled to
hospitalization benefits under Phil-Health. Pensioners upon the
effectivity of RA 7875 on March 4, 1995 and thereafter are no
longer covered except when they meet the qualification
requirements set by Phil-Health.
SLIDE 2
Social Security System
Policy
It is the policy of the State to establish, develop, promote and
perfect a sound and viable tax-exempt social security system
suitable to the needs of the people throughout the Philippines
which shall promote social justice and provide meaningful
protection to members and their families against the hazards
of disability, sickness, maternity, old-age, death and other
contingencies resulting in loss of income or financial burden.
(Sec. 2, RA 8282)
Effectivity: May 24, 1997

In 1980, some groups of self-employed persons were also

required to contribute to the social security fund from which
benefits are paid upon the occurrence of a contingency
provided by law. Self-employed farmers and fisherfolks were
included in the program in 1992, while workers in the informal
sector earning at least P1,000 a month such as ambulant
vendors and watch-your-car boys, were covered in 1995.
The Social Security System (SSS) administers social security
protection to workers in the private sector. On the other hand,
the Government Service Insurance System (GSIS) takes care of
workers in the public sector.
Programs of SSS
The SSS administers two programs namely:
1. The Social Security Program; and
2. The Employees? Compensation Program (EC).
Social Security provides replacement income for workers in
times of death, disability, sickness, maternity and old age.
On May 1, 1997, Pres. Fidel V. Ramos signed RA 8282, further

Vision
Viable protection through generations.
Universal protection provided to all residents of the
Philippines, citizens and non-citizens alike, regardless of creed,
gender, age, geographic location and economic status,
especially the disadvantaged.
Equitable - fair and uniform coverage to all; benefits shall be
meaningful and able to sustain a decent standard of living.
World-class service - prompt, accurate and courteous service
shall be provided.
Compulsory Coverage
Coverage of Employees
a. A private employee who is not over 60 years old
b. A household-helper earning at least P1,000 a month is
covered starting Sept. 1, 1993.
A household-helper is any person who renders
domestic or household services exclusively to a
household employer such driver, gardener, cook,
governess, and other similar occupations.

c. A Filipino seafarer upon the signing of the standard contract

or employment between the seafarer and the manning agency
which, together with the foreign ship owner, act as employers.
d. An employee of a foreign government, international
organization or their wholly-owned instrumentality based in
the Philippines, which entered into an administrative
agreement with the SSS for the coverage of its Filipino
workers.
Coverage of Employers
a. An employer, or any person who uses the services of
another person in business, trade, industry or any
undertaking.
A social, civil, professional, charitable and other nonprofit organization which hire the services of
employees are considered employers.
b. A foreign government, international organization or its
wholly-owned instrumentality such as embassy in the
Philippines, may enter into an administrative agreement with
the SSS for the coverage of its Filipino employees.
Coverage of Self-Employed Persons
A self-employed person, regardless of trade, business or
occupation, with an income of at least P1,000 a month and not
over 60 years old, should register with the SSS. Included but
not limited to are the following self-employed persons: selfemployed professionals; business partners, single proprietors
and board directors; actors, actresses, directors, scriptwriters
and news correspondents who do not fall with the term
employee; professional athletes, coaches, trainers and
jockeys; farmers and fisherfolks; and workers in the informal
sector such cigarette vendors, watch-your-car-boys, hospitality
girls, among others.

RP v. Asiapro Cooperative

Respondent Asiapro, as a cooperative, is composed of ownersmembers. Its primary objectives are to provide savings and
credit facilities and to develop other livelihood services for its
owners-members.

In the discharge of the aforesaid primary objectives,

respondent cooperative entered into several Service Contracts
with Stanfilco a division of DOLE Philippines, Inc. and a
company based in Bukidnon. The owners-members do not
receive compensation or wages from the respondent
cooperative. Instead, they receive a share in the service
surplus which the respondent cooperative earns from different
areas of trade it engages in, such as the income derived from
the said Service Contracts with Stanfilco. The owners-members
get their income from the service surplus generated by the
quality and amount of services they rendered, which is
determined by the Board of Directors of the respondent
cooperative.
In order to enjoy the benefits under the Social Security Law of
1997, the owners-members of the respondent cooperative,
who were assigned to Stanfilco requested the services of the
latter to register them with petitioner SSS as self-employed
and to remit their contributions as such
SSS sent a letter to Asiapro that based on the Service
Contracts it executed with Stanfilco, respondent cooperative is
actually a manpower contractor supplying employees to
Stanfilco and for that reason, it is an employer of its ownersmembers working with Stanfilco. Thus, respondent cooperative

should register itself with petitioner SSS as an employer and

make the corresponding report and remittance of premium
contributions in accordance with the Social Security Law
Who should determine e-e?
Since the existence of an employer-employee relationship
between the respondent cooperative and its owners-members
was put in issue and considering that the compulsory coverage
of the SSS Law is predicated on the existence of such
relationship, it behooves the petitioner SSC to determine if
there is really an employer-employee relationship that exists
between the respondent cooperative and its owners-members.
The question on the existence of an employer-employee
relationship is not within the exclusive jurisdiction of the
National Labor Relations Commission (NLRC). Article 217 of the
Labor Code enumerating the jurisdiction of the Labor Arbiters
and the NLRC provides that:
ART. 217. JURISDICTION OF LABOR ARBITERS AND THE
COMMISSION. (a) . . . .
xxx

xxx

xxx

6.
Except claims for Employees Compensation,
Social Security, Medicare and maternity benefits, all other
claims, arising from employer-employee relations, including
those of persons in domestic or household service, involving
an amount exceeding five thousand pesos (P5,000.00)
regardless of whether accompanied with a claim for
reinstatement.
Although the aforesaid provision speaks merely of claims for
Social Security, it would necessarily include issues on the
coverage thereof, because claims are undeniably rooted in the
coverage by the system. Hence, the question on the existence
of an employer-employee relationship for the purpose of
determining the coverage of the Social Security System is
explicitly excluded from the jurisdiction of the NLRC and falls
within the jurisdiction of the SSC which is primarily charged
with the duty of settling disputes arising under the Social
Security Law of 1997.
In determining the existence of an employer-employee
relationship, the following elements are considered: (1) the
selection and engagement of the workers; (2) the payment of
wages by whatever means; (3) the power of dismissal; and (4)
the power to control the worker's conduct, with the latter
assuming primacy in the overall consideration. The most
important element is the employer's control of the employee's
conduct, not only as to the result of the work to be done, but
also as to the means and methods to accomplish.
All elements are present in this case.
First. It is expressly provided in the Service Contracts that it is
the respondent cooperative which has the exclusive discretion
in the selection and engagement of the owners-members as
well as its team leaders who will be assigned at Stanfilco.
Second. The weekly stipends or the so-called shares in the
service surplus given by the respondent cooperative to its
owners-members were in reality wages, as the same were
equivalent to an amount not lower than that prescribed by
existing labor laws, rules and regulations, including the wage
order applicable to the area and industry; or the same shall
not be lower than the prevailing rates of wages. It cannot be

doubted then that those stipends or shares in the service

surplus are indeed wages, because these are given to the
owners-members as compensation in rendering services to
respondent cooperative's client, Stanfilco
Third. It is also stated in the above-mentioned Service
Contracts that it is the respondent cooperative which has the
power to investigate, discipline and remove the ownersmembers and its team leaders who were rendering services at
Stanfilco.
Fourth. It is the respondent cooperative which has the sole
control over the manner and means of performing the services
under the Service Contracts with Stanfilco as well as the
means and methods of work. Also, the respondent cooperative
is solely and entirely responsible for its owners-members,
team leaders and other representatives at Stanfilco.

SSS v. CA
Whether or not an agricultural laborer who was hired on
"pakyaw" basis can be considered an employee entitled to
compulsory coverage and corresponding benefits under the
Social Security Law.
SC:
There was no shred of evidence to show that Tana was only a
seasonal worker. All witnesses, including Ayalde, testified that
Tana and his family resided in the plantation. The only logical
explanation for this set up was that Tana was working for most
part of the year exclusively for Ayalde. A closer scrutiny of the
records revealed that while Ayalde may not have directly
imposed on Tana the manner and methods to follow in
performing his tasks, she did exercise control through her
overseer. Under the circumstances, the relationship between
Ayalde and Tana has more of the attributes of employeremployee than that of an independent contractor hired to
perform a specific project.
Lazaro v. SSC
Is a sales supervisor of a company engaged in the sale of
home appliances an employee of such company?
SSC, as upheld by the Court of Appeals, found that Laudato
was a sales supervisor and not a mere agent. As such, Laudato
oversaw and supervised the sales agents of the company, and
thus was subject to the control of management as to how she
implements its policies and its end results. SC disinclined to
reverse this finding, in the absence of countervailing evidence
from Lazaro and also in light of the fact that Laudato's calling
cards from Royal Star indicate that she is indeed a sales
supervisor.

SSC v. Alba
Whether an administrator could be considered an employer?
Yes.
Far Alba was no ordinary administrator. He was no less than
the son of the hacienda's owner and as such he was an ownerin-waiting prior to his father's death.
Lamboso testified that he was selected and his services were
engaged by Far Alba himself. Corollarily, Far Alba held the
prerogative of terminating Lamboso's employment. Lamboso
also testified in a direct manner that he had been paid his
wages by Far Alba. This testimony was seconded by Lamboso's
co-worker.
Not to be forgotten is the definition of an employer under
Article 167 (f) of the Labor Code which deals with employees'
compensation and state insurance fund. It defines a person as
"any individual, partnership, firm, association, trust,
corporation or legal representative thereof". Plainly, Far Alba,

as the hacienda administrator, acts as the legal representative

of the employer and is thus an employer within the meaning of
the law liable to pay the SS contributions.
Voluntary Coverage
Coverage of Separated Members
A member who is separated from employment or ceased to be
self-employed/OFW/non-working spouse and would like to
continue paying his/her contributions.
Coverage of Overseas Filipino Workers (OFWs)
A Filipino recruited in the Philippines by a foreign-based
employer for employment abroad; having a source of income
in the foreign country; and permanent resident in a foreign
country.
Coverage of non-working Spouse of SSS Members
A person legally married to a currently employed and actively
paying SSS member who devotes full time in the management
of household and family affairs may be covered on a voluntary
basis provided there is approval of the working spouse. The
person should never have been a member of the SSS. The
contributions will be based on 50% of the working spouses
last posted monthly salary credit but in no case shall it be
lower than P1,000.
Effectivity of coverage
Compulsory coverage
1. For an employee on the first day of employment
2. For an employer on the first day the employer hires
employee/s.
Employer is given 30 days from date of employment
to report the employee for coverage to SSS.
3. For self-employed upon payment of first valid
contribution, in case of initial coverage.
Voluntary coverage
1. For OFW upon first payment of contribution, in case
of initial coverage.
2. For non-working spouse upon first payment of
contribution.
3. For separated member on the month the person
resumed payment of contribution.
Legal Dependents of Member
The legal beneficiaries of a member are:

Legally married dependent spouse until he or she

remarries;

Dependent legitimate, legitimated or legally adopted

and illegitimate children.
These two are primary beneficiaries.
If single, benefits will go to dependent parents who
are considered secondary beneficiaries.
In absence of both primary and secondary, any other
person designated by member.

Dependents
(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 twentyone (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


SSS v. Bailon
Clemente G. Bailon (Bailon) and Alice P. Diaz (Alice) contracted
marriage in Barcelona, Sorsogon.
More than 15 years later, Bailon filed before the then Court of
First Instance (CFI) of Sorsogon a petition to declare Alice
presumptively dead.
By Order, the CFI granted the petition.
Close to 13 years after his wife Alice was declared
presumptively dead, Bailon contracted marriage with Teresita
Jarque (respondent) in Casiguran, Sorsogon.
Bailon, who was a member of the Social Security System (SSS)
since 1960 and a retiree pensioner thereof, died.
Respondent thereupon filed a claim for funeral benefits, and
was granted P12,000 by the SSS
Cecilia Bailon-Yap (Cecilia), who claimed to be a daughter of
Bailon and one Elisa Jayona (Elisa) contested before the SSS
the release to respondent of the death and funeral benefits.
She claimed that Bailon contracted three marriages in his
lifetime, the first with Alice, the second with her mother Elisa,
and the third with respondent, all of whom are still alive; she,
together with her siblings, paid for Bailon's medical and
funeral expenses; and all the documents submitted by
respondent to the SSS in support of her claims are spurious
SSS cancelled the pension.
Respondent protested asserting that her marriage with Bailon
was not declared before any court of justice as bigamous or
unlawful, hence, it remained valid and subsisting for all legal
intents and purposes as in fact Bailon designated her as his
beneficiary.
When raised to SSC, it held that Teresita Jarque-Bailon is not
the legitimate spouse and primary beneficiary of SSS member
Clemente Bailon.
SC:
That the SSC is empowered to settle any dispute with respect
to SSS coverage, benefits and contributions, there is no doubt.
In so exercising such power, however, it cannot review, much
less reverse, decisions rendered by courts of law as it did in
the case at bar when it declared that the December 10, 1970
CFI Order was obtained through fraud and subsequently
disregarded the same, making its own findings with respect to
the validity of Bailon and Alice's marriage on the one hand and
the invalidity of Bailon and respondent's marriage on the
other.
In interfering with and passing upon the CFI Order, the SSC
virtually acted as an appellate court. The law does not give the
SSC unfettered discretion to trifle with orders of regular courts
in the exercise of its authority to determine the beneficiaries of
the SSS.
In the case at bar, as no step was taken to nullify, in
accordance with law, Bailon's and respondent's marriage prior
to the former's death in 1998, respondent is rightfully the
dependent spouse-beneficiary of Bailon.
Employment services excluded
1. Purely casual employment and not for the purpose of
occupation or business of the employer (Mansal v PP
Go-Checo Lumber Co.GR No.L-8017)
2. Services performed or in connection with an alien
vessel by an employee if he/she is employed when
such vessel is outside the Philippines
3. Services performed in the employ of the Philippine
government
4. Service performed in the employ of a foreign
government or international organization, or their
wholly-owned instrumentality unless there is an

5.

agreement with the Philippine Government for the

inclusion of such employees in the SSS
Such other temporary services performed by
temporary employees which may be excluded by
regulation. Employees of bona fide independent
contractors shall not be deemed employees of the
employer engaging the service of said contractors.

Duties of employee-members
Among others:

Secure SS number

Ensure they are reported for coverage by their

employers

Pay their monthly share.

Duties of employer-members
Among others:

Require presentation of SS number of prospective

employee

Report all employees for SS coverage within 30 days

from date of employment

Deduct from the employees the monthly SS

contributions based on schedule of contributions; pat
their share of contributions including Employees
Compensation and remit these contributions to SSS or
accredited banks within first 10 calendar days
following the month when said contributions are due
and applicable

Submit a summary of all contributions

Issue official receipts and maintain official records of

employment and deductions

Remit to SSS all salary, educational, stocks

investment or privatization loan amortization of their
employees and submit a form

Submit a summary of all employees loan

amortization

Advance SS and EC sickness benefits once approved

by SSS

Advance SS maternity benefits due

File for reimbursement for all legally advanced

sickness and maternity benefits

Benefits under social security program

Covered employees are entitled to a package of

benefits under social security and EC in the event of
death, disability, sickness, maternity, and old-age

Self-employed and voluntary members also get same

benefits except those benefits under the EC program

Sickness benefit

A daily cash allowance paid for the number of days a

member is unable to work due to sickness or injury.
The amount is equivalent to 90% of the members
average daily salary credit.
Requirements:
1. He is unable to work due to sickness or injury and
confined either in a hospital or at home for at least 4 days;
2. He has paid at least 3 months of contributions
within the 12-month period immediately before the
semester of sickness/injury
In computing, exclude the semester of sickness. A
semester refers to two consecutive quarters ending in
the quarter of sickness. A quarter refers to three
consecutive months ending March, June, September
or December.
3. He has used up all company sick leaves with pay;
and
4. He has notified the employer or SSS, if separated,
voluntary or self-employed.

Notify employer within 5 calendar days after start of

sickness/injury and employer must notify SSS within 5
days after receipt of notification. Notice is not
required if members confinement is in hospital or
member got sick while working or within company
premises.
For example: SSS member gets sick in October 2006 for 20
days.
a. The semester of sickness would be from July 2006 to
December 2006.
b. The 12-month period would be from July 2005 to June
2006 (where the six highest monthly salary credits
will be chosen).
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.
Effect of failure or delay in notification

If employees notifies beyond period, confinement

shall be deemed to have started not earlier than the
fifth day.

If employer notifies beyond period, employer shall be

reimbursed only for each day of confinement starting
from the 10th calendar day immediately preceding the
date of notification to SSS.

If employee notified the employer but the latter failed

to notify SSS, employer shall have no right to recover
the daily sickness allowance advanced.
Prescribed period in filing a claim of a member confined
in hospital/home:
1. For hospital, claim for benefit must be filed within 1
year from last day of confinement;
2. For home, 1 year from start of illness.
Failure to file the claim within the prescribed period
will result to denial of claim.
Maternity Benefit

It is a daily cash allowance granted to female

member who was unable to work due to childbirth or
miscarriage.

It is equivalent to 100% of members average daily

salary credit multiplied by 60 days for normal delivery
pr miscarriage, 78 days for caesarian section delivery.
Qualifications for entitlement:
1. She has paid at least three monthly contributions
within the 12-month period immediately preceding
the semester of her childbirth or miscarriage
2. She has given the required notification of her
pregnancy through her employer if employed, or to
SSS if separated, voluntary or self-employed.
For example: SSS member gives birth in December 2006.
a. The semester of contingency would be from July 2006
to December 2006.
b. The 12-month period before the semester of
contingency would be from July 2005 to June 2006.
Deliveries covered:
Only for the first four deliveries or miscarriages shall be paid
starting May 24, 1997 (effectivity of RA 8282)

Notice required:
As soon as pregnancy is confirmed, member must notify
immediately employer or SSS, if unemployed, etc. and
probable date of childbirth at least 60 days from date of
conception. Employer must in turn notify SSS after receipt of
notification. Failure to observe the rule may result in denial.
Can a member apply for sickness benefit if she has been paid
maternity benefit?
No, because as a rule, no member can be entitled to two
benefits for the same period.
Disability Benefit
Disability any restriction or lack (lack from impairment) of
ability to perform an activity in the manner or within the range
considered normal for a human being.
Impairment any loss or abnormality of psychological,
physiological, or anatomical structure or function.
Who is qualified?
A member who suffers partial or total permanent disability
with at least one monthly contribution paid to the SSS prior to
the semester of contingency.
Some partial permanent disabilities:
one thumb
one index finger
one middle finger
one ring finger
one little finger
hearing of one ear
hearing of both ears
sight of one eye

one big toe

one hand
one arm
one foot
one leg
one ear
both ears

Some total permanent disabilities:

1. Complete loss of sight of both eyes
2. Loss of two limbs at or above the ankles or wrists
3. Permanent complete paralysis of two limbs
4. Brain injury resulting to incurable imbecility or
insanity
5. Such cases as determined and approved by SSS

Ortega v. SSC
Claims under the Labor Code for compensation and under the
Social Security Law for benefits are not the same as to their
nature and purpose.
On the one hand, the pertinent provisions of the Labor Code
govern compensability of work-related disabilities or when
there is loss of income due to work-connected or workaggravated injury or illness.
On the other hand, the benefits under the Social Security Law
are intended to provide insurance or protection against the
hazards or risks of disability, sickness, old age or death, inter
alia, irrespective of whether they arose from or in the course of
the employment.
And unlike under the Social Security Law, a disability is total
and permanent under the Labor Code if as a result of the
injury or sickness the employee is unable to perform any
gainful occupation for a continuous period exceeding 120 days
regardless of whether he loses the use of any of his body
parts.
Types of disability benefits:
Monthly pension cash benefit paid to a disabled member who
has paid at least 36 monthly contributions to the SSS prior to
the semester of disability.

In addition to monthly pension, supplemental allowance of

P500 is paid to the total or partial disability pensioner.
Lump sum amount granted to those who have not paid the
required 36 monthly contributions.
Is monthly pension for life?
The member who suffers from permanent total disability shall
receive monthly pension for life. However, the said monthly
pension shall be suspended: (1) if he recovers from his
permanent total disability; (2) if he resumes employment; (3) if
he fails to report for annual physical exam upon notice by SSS.
Domiciliary service (if member is unable to report to SSS for
exam) can be requested.
The member who suffers from permanent partial disability
shall receive his monthly pension for the duration of a certain
number of months assessed based on the degree of his
disability.
Prescriptive period in filing a disability claim:
10 years from the date of occurrence of disability.
Retirement Benefit
It is a cash benefit either in monthly pension or lump sum paid
to a member who can no longer work due to old age.
Who may qualify?
1. A member who is 60 years old, separated from
employment or ceased to be self-employed, and has
paid at least 120 monthly contributions prior to the
semester of retirement.
2. A member who is 65 years old whether employed
or not and has paid at least 120 monthly
contributions prior to the semester of retirement.

Dycaico v. SSS
Bonifacio S. Dycaico, member of the SSS, In his self-employed
data record, he named the petitioner, Elena P. Dycaico, and
their eight children as his beneficiaries. At that time, Bonifacio
and Elena lived together as husband and wife without the
benefit of marriage.
In June 1989, Bonifacio was considered retired and began
receiving his monthly pension from the SSS. He continued to
receive the monthly pension until he passed away on June 19,
1997. A few months prior to his death, however, Bonifacio
married the petitioner on January 6, 1997.
Shortly after Bonifacio's death, the petitioner filed with the SSS
an application for survivor's pension. Her application, however,
was denied on the ground that under Section 12-B(d) of
Republic Act (Rep. Act) No. 8282 or the Social Security Law 2
she could not be considered a primary beneficiary of Bonifacio
as of the date of his retirement.
Sec. 12-B. Retirement Benefits
xxx
xxx
xxx
(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. . . .
SSC opined that under Section 12-B(d) of Rep. Act No. 8282,
the primary beneficiaries who are entitled to survivor's
pension are those who qualify as such as of the date of
retirement of the deceased member. Hence, the petitioner,
who was not then the legitimate spouse of Bonifacio as of the
date of his retirement, could not be considered his primary
beneficiary.
SC:
The proviso "as of the date of his retirement" in Section 12B(d) of Rep. Act No. 8282, which qualifies the term "primary

beneficiaries," is unconstitutional for it violates the due

process and equal protection clauses of the Constitution.
Due process:
The proviso "as of the date of his retirement" in Section 12B(d) of Rep. Act No. 8282 runs afoul of the due process clause
as it outrightly deprives the surviving spouses whose
respective marriages to the retired SSS members were
contracted after the latter's retirement of their survivor's
benefits. There is outright confiscation of benefits due such
surviving spouses without giving them an opportunity to be
heard.
Equal protection:
Results in the classification of dependent spouses as primary
beneficiaries into two groups:
(1)
Those dependent spouses whose respective
marriages to SSS members were contracted prior to
the latter's retirement; and

(2)
Those dependent spouses whose respective
marriages to SSS members were contracted after the
latter's retirement.
For Underground Mineworkers:
1. Has reached the age of 55 years old and is an
underground mineworker for at least 5 years (either
continuous or accumulated) prior to the semester of
retirement but whose actual date of retirement is not
earlier than March 13, 1998; separated from
employment or in the case of self-employed, has
ceased self-employment, and has paid at least 120
monthly contributions prior to the semester of
retirement.
2. has reached the age of 60 years old whether
employed or not and has paid at least 120 monthly
contributions prior to the semester of retirement.
Types of retirement benefits:
1. Monthly pension
2. Lump sum amount
Aside from retirement benefit, retiree is entitled to a 13 th
month pension payable every December. All retiree pensioners
prior to effectivity of RA 7875 on March 4, 1995 are
automatically considered members of PhilHealth and he and
his legal dependents are entitled to its hospitalization benefits.
Death Benefit
It is a cash benefit either in monthly pension or lump sum paid
to the beneficiaries of a deceased member.
Types of death benefit:
1. Monthly pension
2. Lump sum amount
Beneficiaries:
Primary: (1) Legitimate dependent spouse until the
person
remarries;
(2)
dependent
legitimate,
legitimated or legally adopted and illegitimate
children who are not yet 21 years old.
Secondary: In the absence of primary, dependent
parents.
In their absence, any other person designated by
member in record.

Signey v. SSS

Who is entitled to the social security benefits of a Social

Security System (SSS) member who was survived not only by
his legal wife, but also by two common-law wives with whom
he had six children?
In the case at bar, the existence of a prior subsisting marriage
between the deceased and Editha is supported by substantial
evidence. Petitioner, who has fully availed of her right to be

heard, only relied on the waiver of Editha and failed to present

any evidence to invalidate or otherwise controvert the
confirmed marriage certificate registered under LCR Registry
No. 2083 on 21 November 1967. She did not even try to allege
and prove any infirmity in the marriage between the deceased
and Editha.
SSC found (affirmed by CA and SC) based on the SSS field
investigation report that even if Editha was the legal wife, she
was not qualified to the death benefits since she herself
admitted that she was not dependent on her deceased
husband for support inasmuch as she was cohabiting with a
certain Aquilino Castillo.
Resolving the determinative question of who between
petitioner and the illegitimate children of the deceased are the
primary beneficiaries lawfully entitled to the social security
benefits accruing by virtue of the latter's death, CA held that
based on Section 8 (e) of R.A. No. 8282, a surviving spouse
claiming death benefits as a dependent must be the legal
spouse. Petitioner's presentation of a marriage certificate
attesting to her marriage to the deceased was futile, according
to the appellate court, as said marriage is null and void in view
of the previous marriage of the deceased to Editha as certified
by the Local Civil Registrar of Cebu City.
The appellate court also held that the law is clear that for a
child to be qualified as dependent, he must be unmarried, not
gainfully employed and must not be 21 years of age, or if over
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 in this case, only the illegitimate
children of the deceased with Gina namely, Ginalyn and
Rodelyn, are the qualified beneficiaries as they were still
minors at the time of the death of their father. Considering
petitioner is disqualified to be a beneficiary and the absence of
any legitimate children of the deceased, it follows that the
dependent illegitimate minor children of the deceased should
be entitled to the death benefits as primary beneficiaries.
Whoever claims entitlement to the benefits provided by law
should establish his or her right thereto by substantial
evidence. Since petitioner is disqualified to be a beneficiary
and because the deceased has no legitimate child, it follows
that the dependent illegitimate minor children of the deceased
shall be entitled to the death benefits as primary beneficiaries.
The SSS Law is clear that for a minor child to qualify as a
"dependent, the only requirements are that he/she must be
below 21 years of age, not married nor gainfully employed.
In this case, the minor illegitimate children Ginalyn and
Rodelyn were born on 13 April 1996 and 20 April 2000,
respectively. Had the legitimate child of the deceased and
Editha survived and qualified as a dependent under the SSS
Law, Ginalyn and Rodelyn would have been entitled to a share
equivalent to only 50% of the share of the said legitimate
child. Since the legitimate child of the deceased predeceased
him, Ginalyn and Rodelyn, as the only qualified primary
beneficiaries of the deceased, are entitled to 100% of the
benefits.

SSS v. De Los Santos

The obvious conclusion then is that a wife who is already

separated de facto from her husband cannot be said to be
"dependent for support" upon the husband, absent any
showing to the contrary. Conversely, if it is proved that the

husband and wife were still living together at the time of his
death, it would be safe to presume that she was dependent on
the husband for support, unless it is shown that she is capable
of providing for herself.
Respondent herself admits that she left the conjugal abode on
two (2) separate occasions, to live with two different men. The
first was in 1965, less than one year after their marriage, when
she contracted a second marriage to Domingo Talens. The
second time she left Antonio was in 1983 when she went to
the US, obtained a divorce, and later married an American
citizen.
In fine, these uncontroverted facts remove her from qualifying
as a primary beneficiary of her deceased husband.
Monthly pension depends on members paid contributions,
including the credited years of service (CYS) and the number
of dependent minor children but not to exceed five.
In addition to death benefit, beneficiaries are entitled to 13 th
month pension payable every December and funeral benefit
expenses which is paid to whoever shouldered the funeral
expenses of the deceased member. Funeral grant is P20,000
(effective Sept. 1, 2000).
If deceased member is survived by legitimate, legitimated or
legally adopted and illegitimate children, how is monthly
pension to be divided?
If survived by less than five, the illegitimate minor children will
be entitled to 50% of the share of the legitimate, legitimated
or legally adopted and 100% of the dependents pension
(equivalent to 10% of the members monthly pension or P250
whichever is higher). Only five minor children, beginning from
the youngest, are entitled to dependents pension. When there
are more than 5, the legitimate, legitimated or legally adopted
shall be preferred.
For how long will the dependent child receive the pension?
When the child reaches 21 years old, gets married, gets
employed or dies. However, the dependents pension is
granted for life to children who are over 21 years old, provided
they are incapacitated and incapable of self-support due to
physical or mental disability which is congenital and acquired
during minority.
Contributions
SSS 10.4% of the monthly salary credit not exceeding
P15,000 and payable by both employer (7.07%) and employee
(3.33%) effective Jan. 1, 2007.
EC Starting Jan. 1, 2007, P10 for a monthly salary credit of
P14,500 and below and P30 for employees with an MSC of
P15,000 and payable only by employer.
SS Number
The SS number assigned to a member is the lifetime number
and must always be used in all transactions with the SSS. The
member should not secure another number at any other time.
If the member wishes to secure another SS card and cannot
remember the SS number, it is advisable to inquire from the
SSS servicing branch.
If a member has more than one SS number, this will cause
delay in processing of the claim for benefits or loans in the
future. Thus, it is important that a member should have only
one SS number. Therefore, he/she should write or visit the SSS
servicing branch to request for the cancellation of the other

number/s and consolidation of all of the contributions under

the retained number. From then on, the retained number
should be used in all transactions with the SSS.
Right to Institute
Sec. 22 - 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.

Lo v. CA
Private respondents application was denied because the SSS
records showed that he became a member only in 1983, and
contributions in his favor were remitted only from October
1983 to September 1984. As private respondent knew that
SSS contributions were deducted from his salary since
compulsory SSS coverage took effect in 1957, he filed a
petition with the Social Security Commission against Jose Lo
and his son Rafael Lo, who took over the management of the
company. The Commission upheld private respondent's claim
and ordered petitioner and Jose Lo to remit to the SSS the
unpaid contribution in favor of private respondent, including
penalties and charges.
Petitioner filed a petition for review with the Court of Appeals,
which affirmed the decision of the Commission. When the
appellate court denied his motion for reconsideration,
petitioner filed this petition for review by certiorari. He
contended that the lower court erred in ruling that the claim
had not yet prescribed. Petitioner claimed that Payment of SS
premium, as stated in the Decision, is an obligation created by
law hence, without need of demand, it becomes due on the
date when such payment should be made. Hence, under
Article 1150 [of the Civil Code], the right of action to recover
unremitted SS premium accrues on the date it is payable and
may be brought beginning such date.
SC:
Supreme Court dismissed the petition, and affirmed the
decision of the Court of Appeals. Section 22 (b), par. 2, of
Republic Act No. 1161, or the SSS Law, expressly provides that
the right to institute the necessary action against the
employer may be commenced within twenty years from the
time the delinquency is known or the assessment is made by
the SSS, or from the time the benefit accrues, as the case may
be. The provision is clear that the period of prescription
commences to run only upon the discovery of the violation,
which took place in 1985. When the complaint was filed on
August 14, 1985, less than one year had passed since private
respondent discovered the delinquency. Therefore, the claim
was timely instituted.
Penal Clause
Who are liable and what are the penalties.
Who can file?
(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. Consent by the SSS is not required

Garcia v. SSC
SSC
found Garcia, the sole surviving director of Impact
Corporation, petitioner herein, liable for unremitted SSS
contributions.

Issue is whether or not petitioner, as the only surviving

director of Impact Corporation, can be made solely liable for
the corporate obligations of Impact Corporation pertaining to
unremitted SSS premium contributions and penalties
therefore.
Petitioner challenges the finding of the Court of Appeals that
under Section 28 (f) of the Social Security Law, a mere director
or officer of an employer corporation, and not necessarily a
"managing" director or officer, can be held liable for the
unpaid SSS premium contributions.
Section 28 (f) of the Social Security Law provides the following:
(f)
If the act or omission penalized by this Act
be committed by an association, partnership,
corporation or any other institution, its managing
head, directors or partners shall be liable to the
penalties provided in this Act for the offense.
SC:
This Court though finds no need to resort to statutory
construction. Section 28 (f) of the Social Security Law imposes
penalty on:
(1)
the managing head;
(2)
directors; or
(3)
partners, for offenses committed by a
juridical person
The said provision does not qualify that the director or partner
should likewise be a "managing director" or "managing
partner. The law is clear and unambiguous
Although a corporation once formed is conferred a juridical
personality separate and distinct from the persons comprising
it, it is but a legal fiction introduced for purposes of
convenience and to subserve the ends of justice. The concept
cannot be extended to a point beyond its reasons and policy,
and when invoked in support of an end subversive of this
policy, will be disregarded by the courts.

Tan v. Ballena
In answer to criminal complaint for violation of SS law,
petitioners interposed the defenses of lack of criminal intent
and good faith as their failure to remit was brought about by
alleged economic difficulties, and they have already agreed to
settle their obligations with the SSS through a memorandum of
agreement to pay in installments.
SC:
As held by the Court of Appeals, the claims of good faith and
absence of criminal intent for the petitioners' acknowledged
non-remittance of the respondents' contributions deserve
scant consideration. The violations charged in this case pertain
to the SSS Law, which is a special law. As such, it belongs to a
class of offenses known as mala prohibita.
Social Security 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.
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
created.
The System shall be directed and controlled by the SSC.
Any dispute arising under RA 8282 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.

compulsory coverage in flagrant violation of the Social

Security Act.

SSS v. Atlantic Gulf

Which body has jurisdiction to entertain a controversy arising
from the non-implementation of a dacion en pago agreed upon
by the parties as a means of settlement of private
respondents' liabilities?

SSC ruled in favor of private respondents. CA affirmed.

From the allegations of respondents' complaint, it readily

appears that there is no longer any dispute with respect to
respondents' accountability to the SSS. Respondents had, in
fact, admitted their delinquency and offered to settle them by
way of dacion en pago subsequently approved by the SSS.
The controversy lies in the non-implementation of the
approved and agreed dacion en pago on the part of the SSS.
As such, respondents filed a suit to obtain its enforcement
which is, doubtless, a suit for specific performance and one
incapable of pecuniary estimation beyond the competence of
the Commission.
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 a
supersedeas or a stay of the order of the Commission unless
the Commission itself, or the Court of Appeals or the Supreme
Court, shall so order.

Petitioner: respondents were not regular employees, but

project employees whose work had been fixed for a specific
project or undertaking the completion of which was
determined at the time of their engagement, thus, not entitled
to coverage under the SSS.

Issue: Whether private

compulsory SSS coverage.

respondents

were

entitled

to

Ruling: Yes. Well-settled is the rule that the mandatory

coverage of Republic Act No. 1161, as amended, is premised
on the existence of an employer-employee relationship.
There is no dispute that private respondents were employees
of petitioner. Petitioner himself admitted that they worked in
his construction projects,
although the period of their
employment was allegedly co-terminus with their phase of
work.
Even without such admission from petitioner, the
existence of an employer-employee relationship between the
parties can easily be determined by the application of the
"control test," the elements of which are enumerated above.
It is clear that private respondents are employees of
petitioner, the latter having control over the results of the
work done, as well as the means and methods by which the
same were accomplished. Suffice it to say that regardless of
the nature of their employment, whether it is regular or
project, private respondents are subject of the compulsory
coverage under the SSS Law, their employment not falling
under the exceptions provided by the law. This rule is in accord
with the Court's ruling in Luzon Stevedoring Corp. v. SSS to
the effect that all employees, regardless of tenure, would
qualify for compulsory membership in the SSS, except those
classes of employees contemplated in Section 8(j) of the Social
Security Act
Despite the insistence of petitioner that they were
project employees, the facts show that as masons,
carpenters and fine graders in petitioner's various
construction projects, they performed work which was
usually necessary and desirable to petitioner's business
which involves construction of roads and bridges.

Criminal offenses for violations of the law are within the

jurisdiction of the regular courts.

Moreover, while it may be true that private respondents

were
initially
hired
for
specific
projects
or
undertakings, the repeated re-hiring and continuing
need for their services over a long span of time the
shortest being two years and the longest being eight
have undeniably made them regular employees. This
Court has held that an employment ceases to be coterminus with specific projects when the employee is
continuously rehired due to the demands of the
employer's business and re-engaged for many more
projects without interruption.

OTHERS IN SSS:

Taxi Driver compulsorily covered?

Chua vs. CA

Based on an Article I found

On 20 August 1985, private respondents filed a Petition with

the SSC for SSS coverage and contributions against petitioner
Reynaldo Chua, owner of Prime Mover Construction
Development, claiming that they were all regular employees of
the petitioner in his construction business.
Private respondents claimed that they were assigned by
petitioner in his various construction projects continuously in
the following capacity: masons, carpenters and fine graders, in
petitioner's various construction projects.
Private respondents alleged that they were illegally dismissed
and that petitioner did not report them to the SSS for

Allow me, however to present the following comments and

observations relative to your proposal:
1. Legal basis for SSS coverage of drivers of public transport
The legal basis for the compulsory SSS coverage of drivers of
public transport may be derived from SSS Circular No. 79-T
published on 03 April 1970 (Annex A). Said circular provides
the bases of coverage, premium contribution, and allowable
daily deduction or earnings of jeepney drivers of jeepney
operators, salient features of which are as follows:
a. Basis of Coverage - Jeepney drivers are employees of
jeepney operators and, as such are required under the Social

Security Law to be reported for coverage by their employee

(Please refer to the Supreme Court ruling in the case of the
NATIONAL LABOR UNION vs. DINGLASAN, L-7945, 23 March
1956).
b. Basis of Premium Contribution - If the earnings of jeepney
driver cannot be determined by records, then the basis of the
premium contribution to the SSS is the minimum wage as
authorized by Law (Please refer to Supreme Court ruling in the
case of MALATE TAXICAB 7 GARAGE, INC. vs. THE CIR AND NIU
(G.R. NO. 1-8718, PROM. May 11, 1956, 52 O.G, No. 6,p. 3034)
They (taxi drivers) are EE just like jeepney drivers are EE to
their operators. Even if they receive "boundary basis"
compensation there is still an ER-EE relationship. The method
of fixing compensation is not determinative of an EE-ER
relationship. As long as the ER exercises the right to control
(not necessarily actual control), there is EE-ER relationship.
25. There is also a question about independent
contractor vis-a-vis labor only contractor? That means
substantial capitalization requirement under the LC
Ans: You can avail the benefits and be a member under SSS
law if there exist an employer- employee relationship. In labor
only contractor, there could exist an employer- employee
relationship between the contractor- employee and the
principal. The principal is bound to register the contractor
employee under the SSS law, and pay its contribution. The
principal has power of control to the contractor employees and
not the labor only contractor because the latter is only an
agent of the principal.
Independent contractors and principal do not have
employer- employee relationship because the principal has no
power to control the means and tools in making the job done.
The principal is only concerned on the result. However, they
can be a member of SSS under the category of self- employed
depending on their wage earned.
Both do not have substantial capitalization. Under the
Labor Code, two (2) elements must exist for a finding of laboronly contracting: (a) the person supplying workers to an
employer does not have substantial capital or investment in
the form of tools, equipment, machineries, work premises,
among others, and (b) the workers recruited and placed by
such persons are performing activities directly related to the
principal business of such employer.
FEDERICO MANSAL, plaintiff-appellant, vs. P.
GOCHECO LUMBER CO., defendant-appellee.

P.

1.EMPLOYER
AND
EMPLOYEE:
WORKMEN'S
COMPENSATION; EMPLOYER, WHEN LIABLE. When an
employee suffers personal injury from any accident arising
out of and in the course of his employment . . . his
employer shall pay compensation . . . As to the finding of
the court that the employment of the appellant was
merely casual, because it was not continuous, it was
already held by us that it is not the continuity of
employment that renders the employer responsible but
whether the work of the laborer is part of the business or
occupation of the employer. In order that an employer
may not be responsible for any injury to a laborer it is
necessary that the "employment is purely casual and is
not for the purposes of the occasion or business of the
employer."

3.ID.; ID.; ID.; EMPLOYMENT IS PURELY CASUAL.

Casual means occasional, coming without regularity.
The work is purely casual when it is not a part of the
business in which the employer is engaged.

It will be noted that in order that an employer may not be

responsible for an injury to a laborer it is necessary that the
"employment is purely casual and is not for the purposes of
the occupation or business of the employer." Casual means
occasional, coming without regularity. The work is
purely casual when it is not a part of the business in
which the employer is engaged. The clause "is not for the
purposes of the occupation or business of the employer"
complements and explains the term "purely casual". In a
sawmill, for example, if a power unit running the mill
gets out of order and a mechanic is contracted to fix
the engine, the work of the mechanic would be
considered as purely casual, because the reparation of
the mill is not the actual work or business of the
sawmill but the sawing of lumber. But the piling up of
lumber is work directly connected with the business of
a lumber yard. Lumber must be sorted and piled up in
groups according to sizes to facilitate handling and
sale. The piling up of lumber is, therefore, an ordinary
part of the work in a lumber yard.
CASE: SSC v. Rizal Poultry and Livestock Association,
Inc., et al.,
(GR no. 167050, June 1, 2011)
Issue:
Whether res judicata applies so as to preclude the SSC from
resolving anew the existence of employer-employee
relationship, which issue was previously determined in the
NLRC case?
SC:
Res judicata in the concept of conclusiveness of judgment
applies. The judgment in the NLRC case pertaining to a finding
of an absence of employer-employee relationship between
Angeles and respondents is conclusive on the SSC case.
11. Benefits employer needs to advance

Advance SS and EC sickness benefits once approved

by SSS

Advance SS maternity benefits due

File for reimbursement for all legally advanced

sickness and maternity benefits
1.

Date of efficacy of compulsory coverage EE

Effectivity of Coverage
Compulsory coverage
1.
For an employee
employment
2.

on

the

first

day

of

Appeal from SSC

Court Review The decision of the Commission upon any

disputed matter mat be reviewed both upon the law and the
facts by the Court of Appeals. For the purpose of such review,

the procedure corcerning 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 a
supersedeas or a stay of the order of the Commission unless
the Commission itself, or the Court of Appeals or the Supreme
Court, shall so order. [RA 8282, Sec. 5C]

How appeal is taken?

By verified petition for review (The Revised Rules of

SSC [1997]).

Note: 1990 Rules of SCC state that it is by notice of

appeal.
26-27. How many years prescriptive period under SSS
law
Sickness Benefit
Prescribed period in filing a claim of a
member confined in
hospital/home:
For hospital, claim for benefit must be filed within 1 year
from last day of confinement;
For home, 1 year from start
of illness.
Failure to file the claim within the prescribed period will
result to denial of claim.
Disability Benefit
10 years from the date of occurrence of disability
Right to Institute (NOT A CRIMINAL ACTION)
Sec. 22 - 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. (normally from the time of discovery)

SLIDE 6
RA 8291 - GSIS
Introduction

1987 Constitution has given constitutional recognition

to the obligation of the state to retirees by providing
that the state shall from time to time review to
upgrade the pensions and other benefits due to
retirees of both government and private sector (Art.
XVI, Sec. 8)

Another feature of 1987 Constitution is to the effect

that pensions or gratuities are not considered as
additional, double or indirect compensation (Art. IX, B,
The Civil Service Commission, Sec. 8, par. 2).

As a consequence, a retiree who is reappointed to a

government position shall receive the compensation
for the position without violating the constitutional
prohibition imposed on elective or appointive public
officers or employees against receiving additional,
double or indirect compensation (id., par. 1).
Objectives and scope:

Revised the 20-year old charter of GSIS (PD 1146)

Aims to expand and increase the coverage and

benefits of GSIS;

Introduce institutional reforms for GSIS to have more

flexibility and thus perform its mission of providing
social security protection more effectively.

Effectivity

June 24, 1997, 15 days after it was published on June

9, 1997. It was approved on May 30, 1997
Repeal

of retirement laws
PD 1146
RA 660
RA 1616

Who are covered?

Compulsory for all employees:

Appointive or elective

Whether temporary, casual, permanent or

contractual w/ e-e relationship
(so those under job orders are not covered)

Who are receiving basic pay or salary but not

per diems, honoraria or allowances; and

Who have not reached the compulsory

retirement age of 65 yrs.
When coverage takes effect

Upon the employees assumption to duty pursuant to

a valid appointment or election and oath of office.
Are elective officials still covered after their term of
office expires?

Compulsory coverage shall cease upon expiration of

term.

They have the option to continue with life insurance

so long as they will pay both the employee and
employer shares.

On social security coverage, said official shall

continue to be a member and shall be entitled to
benefits that provide for contingencies (death,
disability or separation) subject to satisfaction of
eligibility conditions.
Who are not covered?

Employees who have separate retirement

schemes under special laws and are
therefore covered by their respective
retirement laws, such as the members of the
Judiciary, Constitutional Commissions, and
other similarly situated government officials;

Uniformed members of AFP & PNP including

BJMP;

Those who are not receiving basic pay or

salary

Contractuals who have no employer and

employee relationship with the agencies
they serve

17. Coverage of judges under GSIS.

Sec. 5. "Payment of premium for retirement insurance

shall begin on the last day of June, nineteen hundred
and fifty-one or of the calendar month the employee
entered the service or became covered by his
retirement plan, whichever is the later date, and that
for life insurance shall begin on the last day of the
calendar month preceding the month in which one's

insurance takes effect: Provided, however That

retirement premiums shall not be required of Justices
of the Supreme Court and the Court of Appeals, and
Judges of the Courts of First Instance, Agrarian
Relations, Industrial Relations, Tax Appeals and
Juvenile and Domestic Relation Courts, officers and
enlisted men of the Armed Forces of the Philippines
who as hereby excluded from said benefit.

RA 9946 amends RA 910 provides for retirement

benefits of justices of the Supreme Court, Court of
Appeals and trial court judges.

10.2.1 The compulsory life policy of a regular member

whose membership classification has been converted
to special member by virtue of his appointment as a
Judge, Justice or their equivalent, shall be terminated
upon separation from his old position. He shall be
provided LEP coverage upon assumption to duty to
his new position

When does a contractual have e-e relationship with his

employer?

Person was selected and engaged by the

employer

Employer pays the salary

Employer has the power of dismissal

Employer has the power to control the

means and the result of the work to be done
Compensation

Is the basic pay or salary received by an employee

pursuant to his election/appointment.

Does not include per diems, bonuses, overtime pay,

honoraria, allowances and any other emoluments
received in addition to basic pay (RA 8291, Sec. 1)
Contributions
First P10,000
In excess of P10,000

9%
2%

Member Employer
12%
12%

Who is responsible for remittance of contributions?

employer
Date of remittance?

First ten days of calendar month following the month

to which contributions apply.
Effect of non-remittance?

All loan privileges of member shall be

suspended

Determination
of
eligibility
to
and
computation of benefits will be made subject
to deduction of contribution arrearages and
service loans accounts plus surcharges from
proceeds of claim

Penalties on delayed remittances?

Aside from penal provisions, interest of not less than

2% per month.
Penal Provisions?

Official or employee who fails to include in annual

budget the amount corresponding to e-e contributions
or who fails by more than 30 days to remit the
amount from the time such amount becomes due
Employee, who after deducting, fails to remit to GSIS
within 30 days from date they should be remitted

Penal provisions?

Heads of offices of national government, etc. who

shall fail, refuse or delay the payment, turn-over,
remittance or delivery of such amounts to GSIS
Membership in GSIS

Enjoyment of life insurance, retirement and other

social security protection such as disability,
survivorship, separation and unemployment benefits

Members of judiciary and constitutional commissions

are covered by GSIS with life insurance only;
retirement laws are governed by special laws
Is part time service included in the computation of
total service rendered?
As a rule, all full-time service with
compensation
from
date
of
original
appointment or election shall be computed
for purpose of determining retirement
benefits.
service shall mean full-time service w/
compensation. Part time service w/
compensation shall be converted to full
time equivalent.
Part-time shall be converted using a 40-hour
per week and 52-week per year as basis.
Valdez v. GSIS
Petitioner would want SC to reverse CA ruling rejecting his
assertion that his services rendered in the MECO, MMSU,
PHIVIDEC and as OIC Vice-Governor of Ilocos Norte should be
credited in the computation of his retirement benefits.
SC:
Aside from having been rendered part-time in said agencies,
the said positions were without compensation as defined in
Section 2 (i) of R.A. No. 8291.
Benefits
Contingencies compensable?

Retirement

Separation

Unemployment

Disability

Survivorship

Death (Life Insurance and Funeral)

New benefits?

Unemployment benefit

Separation benefit
Improvement of existing benefits?

Increase in Average Monthly Compensation (AMC)

Limit: from AMC limit of P3,000 to P10,000

Increase
in
the
Revalued
Average
Monthly
Compensation (RAMC): from P140 to P700

Full enjoyment of 5-year lump sum benefit (no more

discounted per PD 1146 where retiree receives only
52.17 months while it is full 60 months at present)

Liberalization of eligibility requirements

Allocation of at least 40% of the Social Insurance
Fund (SIF) to member Loans

Retirement
Conditions:

rendered at least 15 yrs. of service

at least 60 years old at time of retirement

not receiving monthly pension from permanent total

disability
Options:
- lump sum payment of basic monthly pension multiplied by 60
plus basic monthly pension for life upon expiration of 5 year
period
- cash payment of 18 times the basic monthly pension plus
basic monthly pension for life payable immediately upon
retirement but without 5-year guaranteed period.
If rendered at least 15 years service but is less than 60 years
at time of separation or resignation, member will be entitled to
cash payment equivalent to 18 times his basic monthly
pension payable at the time of separation or resignation and
upon reaching the age of 60 years, he will be entitled to basic
monthly pension payable monthly for life.
This is denominated as separation benefit but in reality a
combination of separation and retirement benefits.

Entitlement to retirement is premised on service of at

least 15 years.

Member who is 60 years old upon retirement but with

less than 15 years of service is not entitled to
retirement. What he gets is a separation benefit
consisting of cash benefit equivalent to 100% of his
average monthly compensation for each year of
service he paid contributions but not less than
P12,000 provided he has at least 3 years but less
than 15 years of service.

Member who has at least 15 years of service may

retire at 60 or may continue in the service until 65
(compulsory retirement age)

If he has less than 15 years, he may be allowed to

continue in the service in accordance with existing
civil service rules and regulations. Extension of
service is no longer mandatory in contrast to PD
1146.
Notice by employer
It shall be the duty of the Employer to notify its Employee at
least Ninety (90) days in advance of the date of his/her
compulsory retirement.
Separation
Separation benefit

A cash payment of 18 times the Basic Monthly

Pension at time of separation and a life pension to
start at the age of 60 will be given to those who
separate from the service with at least 15 years
service and are below 60 years of age.

Under PD 1146, separated member will have to wait

until he is 60 years of age to receive any separation
benefit.
Separation: Who are eligible?
Types:
- rendered at least 3 years but less than 15 years

(cash payment equivalent to 100% of Average Monthly

Compensation for every year
of service payable upon
reaching 60 or upon separation whichever comes later if not
receiving monthly pension from permanent total disability)
- rendered at least 15 years & who is below 60 at time of
resignation/separation
(cash payment equivalent to 15 times the basic Monthly
Pension payable upon separation plus monthly
pension
starting 60)
Separation
IRR, Rule II, Sec. 2.5:
Member separated for cause

automatically forfeited

Unless terms of resignation or separation provide

otherwise
Member separated not for cause

shall continue to be member & entitled subject to

qualification & other prescription
Unemployment
The benefit is paid when a permanent employee is
involuntarily separated from the service as a result of the
abolition of his office or position usually resulting from
reorganization.
Who is eligible?
Permanent employee who has paid 12 monthly contributions.

Duration of benefit depends on length of service;

ranges from 2 mos. to a maximum of 6 mos.

Equivalent of benefit 50% of the average monthly

compensation

Options Those who have more than 15 years service

may either avail of retirement or separation benefits
as the case may be.
Disability
Any loss or impairment of the normal functions of the physical
or mental faculties of a member, which reduces or eliminates
his capacity to continue with his current gainful occupation or
engage in any other gainful occupation (IRR, Sec. 1.18)
Evaluation of disability as a contingency is vested
solely in GSIS ( IRR, Sec. 9.3.1)
General
condition
for entitlement
is that the
disability was not due to misconduct, notorious
negligence, habitual intoxication or willful intention
to kill himself or another (IRR, Sec. 9.3.2)
Permanent Total Disability

A member who becomes permanently and totally

disabled when he/she is in the service and has paid
at least 180 monthly contributions (monthly income
benefit for life equivalent to basic monthly pension
plus cash payment equivalent to 18 times his basic
monthly pension effective on date of disability)

A member who becomes permanently and totally

disabled are eligible when (a) he is in the service at
time of disability or (b) separated from the service
and has paid at least 36 monthly contributions within
the last 5 years immediately preceding the disability
or has paid a total of at least 180 monthly
contributions (monthly income benefit for life
equivalent to the basic monthly pension)

A member who becomes permanently and totally

disabled when he is separated from service with at
least 3 years of service but has not paid 36 monthly
contributions within the last 5 years is still eligible
(cash payment equivalent to 100% of the AMC) for
every year of service but not less than P12,000)

Disabilities considered permanent total?

Complete loss of sight in both eyes

Loss of two limbs at or above ankle or wrist

Permanent complete paralysis of 2 limbs

Brain injury resulting in incurable imbecility or

insanity

Other cases as may be determined by GSIS

Permanent Partial Disability

A member who becomes permanently and partially

disabled when
- when he is in the service at time of
disability; or
- separated from service and has paid 36
monthly contributions within the last 5 years
immediately preceding the disability or has
paid a total of at least 180 monthly
contributions.
Permanent Partial?

Any finger

Any toe

One arm

One hand

One foot or leg

One or both ears

Hearing of one or both ears

Sight of one eye

Other cases as may be determined

Temporary Total Disability
Accrues or arises when there is complete but temporary
incapacity to continue with a member's present employment
or engage in any gainful occupation due to the loss or
impairment of the normal function of the physical and/or
mental faculties of the member. In effect, this loss or
impairment can be reversed to the point where the member
can continue with his previous employment or engage in
another gainful occupation
Gainful employment
Any productive activity that provides the member with income
at least equal to the minimum compensation of government
employees (IRR, Sec. 1.17)
Temporary Total Disability

A member who suffers temporary total disability for

reasons not due to grave misconduct, notorious
negligence, habitual intoxication or willful intention to
kill himself or another may be entitled if:
- he is in service at time of disability and has
exhausted sick leave credits; or
- if separated, has rendered at least 3 years
of service and has paid at least 6 monthly
contributions in the twelve month period
immediately preceding his disability.
Disability

A written notice of sickness or injury shall be given by

a member or anybody in his/her behalf within five (5)
working days from the date of the occurrence of the
contingency.

An application for disability benefits must be filed

with the GSIS within Four (4) years from the date of
the occurrence of the contingency, fully supported by
required papers and documents.
Disability - forfeiture of disability benefits if member refuses
or deliberately fails to:
(a) have himself/herself medically treated by a physician when
required by the GSIS; or
(b) take the prescribed medication; or

(c) have himself/herself confined in a hospital without

justifiable reason, when such confinement is required by the
GSIS; or
(d) avail himself/herself of such rehabilitation facilities as may
be duly recommended by the GSIS and made available for
him/her; or
(e) observe such precautionary and/or preventive measures as
prescribed by a physician or expressly required of him/her to
prevent the aggravation or continuance of his/her disability.
(f) report on his/her re-employment.
Survivorship
Those granted to surviving and qualified beneficiaries of the
deceased member or pensioner to cushion them against the
adverse economic, psychological and emotional loss resulting
from the death of a wage earner or pensioner.
Who are eligible?

If at time of death, a member was in the service and

has rendered at least 3 years of service (primary
beneficiaries to receive survivorship pension plus
cash payment; secondary beneficiaries or legal heirs
entitled to cash payment)

If at time of death, a member was in the service with

less than 3 years service or was separated from the
service with at least 3 years of service and has paid
36 monthly contributions within the 5-year period
immediately preceding his death or has paid a total of
at least 180 monthly contributions prior to death
(primary beneficiaries to receive survivorship pension
plus cash payment; secondary beneficiaries or legal
heirs entitled to cash payment)
Primary Beneficiaries

The legitimate spouse, until he/she remarries, and

the dependent children.
Secondary Beneficiaries
(a) the dependent parents; and
(b) the legitimate descendants
Who are dependents?
(a) the legitimate spouse dependent for support;
(b) any legitimate, legitimated and/or legally adopted child,
including any illegitimate child, who is unmarried, not
gainfully employed, who has not attained the age of
majority, or being at 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.
Gainful employment
Any productive activity that provides the member with income
at least equal to the minimum compensation of government
employees (IRR, Sec. 1.17)
GSIS v. Montesclaros
Facts:
SB member Nicolas Montesclaros married Milagros Orbiso.
Nicolas was a 72-year old widower when he married Milagros
who was then 43 years old. Nicolas died. Milagros then filed
with the GSIS a claim for survivorship pension under PD 1146.
The GSIS denied the claim because under Section 18 of PD
1146, the surviving spouse has no right to survivorship
pension if the surviving spouse contracted the marriage with
the pensioner within three years before the pensioner qualified
for the pension.
SC:
Section 18 of Presidential Decree No. 1146 void for being
violative of the constitutional guarantees of due process and
equal protection of the law. The proviso is unduly oppressive in

outrightly denying a dependent spouse's claim for survivorship

pension if the dependent spouse contracted marriage to the
pensioner within the three-year prohibited period. There is
outright confiscation of benefits due the surviving spouse
without giving the surviving spouse an opportunity to be
heard. The proviso also violated the equal protection clause
because it discriminates the dependent spouse who contracts
marriage to the pensioner within three years before the
pensioner qualified for the pension.
Funeral
Shall be paid upon the death of:
(a) an active member; or
(b) a member who has been separated from the service, but
who is entitled to future separation or retirement benefit; or
(c) a member who is a pensioner (excluding survivorship
pensioners); or
(d) a retiree who at the time of his/her retirement is at least 60
years old but opts to retire under RA 1616; or
(e) a member who retired under RA 1616 prior to the
effectivity of RA 8282 with at least 20 years service regardless
of age.
Amount is initially P12,000 but shall be increased to at least
P18,000 after five years.
The funeral benefit shall be paid to one of the following in the
order in which they appear herein below:
(a) the surviving spouse;
(b) the legitimate child who spent for the funeral services; or
(c) any other person who can show incontrovertible proofs of
having borne the funeral expenses.
Compulsory Life Insurance
All employees, including the members of the Judiciary and the
Constitutional Commissioners, but excluding the uniformed
members of the Armed Forces of the Philippines (AFP), the
Philippine National Police and the Bureau of Fire Protection
(BFP) and Bureau of Jail Management and Penology.
Life Insurance Benefits
Maturity Benefit. Upon maturity of the life insurance, the
face amount less any indebtedness against the policy, shall be
paid to the member;
Death Benefit. When a member dies prior to the maturity of
his/her insurance and during its continuance, the GSIS shall
pay to the designated Beneficiaries or to his/her legal heirs, as
the case may be, the face amount less any indebtedness
thereon.
Accidental Death Benefit When the death of the member is
accidental in accordance with Section 10.9.2 of IRR, the GSIS
shall pay the designated beneficiaries or the legal heirs, as the
case may be, an additional amount equivalent to the face
amount of his/her compulsory insurance;
Waiver of Premiums. When a member is separated due to
total and permanent disability, the contributions that may
become due and payable during the period of disability shall
be deemed waived and considered paid.
Cash Surrender Value (CSV). After his/her insurance shall
have been in force for one (1) year, a member separated from
the service prior to the maturity of the insurance may be paid
the cash value less any indebtedness thereon unless the terms
of his/her separation provide otherwise;
Insurance Loans. Upon application, a member who has been
insured for at least one (1) year may be granted an insurance
loan in an amount not exceeding Fifty Percent (50%) of the
cash value of his/her insurance at the time of application.

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, based on records submitted by the
employer. A Dividend Allocation Formula shall be determined
and circularized by the GSIS for this purpose.
Adjudication of Claims

GSIS has original & exclusive jurisdiction to

settle any dispute arising under RA 8291 w/
respect to:
- coverage
- entitlement to benefits
- collection & payment of contributions
- any other matter related to any or all of the
foregoing which is necessary for their determination

Which body of GSIS vested with QuasiJudicial Functions? Board of Trustees

Prescriptive Period?
- 4 years from date of contingency except
life & retirement benefits which do not prescribe.
Tax Exemption

RUBIA V. GSIS
- exemption of GSIS from execution
does not cover refund of amortization payment

CITY OF DAVAO V. RTC

- on real property taxes, GSIS taxexempt status in previous law was
withdrawn under RA 7160 but
restored under Sec. 39 RA 8291
Legal Fees
A.M. No. 08-2-01-0, February 11, 2010
Facts:
GSIS seeks exemption from the payment of legal fees imposed
on government-owned or controlled corporations under
Section 22, Rule 141 (Legal Fees) of the Rules of Court. GSIS
anchors its petition on Section 39 of its charter, RA 8291.
Issue:
May the legislature exempt GSIS from legal fees imposed by
the Court on government-owned and controlled corporations
and local government units?
SC:
Since the payment of legal fees is a vital component of the
rules promulgated by this Court concerning pleading, practice
and procedure, it cannot be validly annulled, changed or
modified by Congress. As one of the safeguards of this Court's
institutional independence, the power to promulgate rules of
pleading, practice and procedure is now the Court's exclusive
domain. That power is no longer shared by this Court with
Congress, much less with the Executive.
Congress could not have carved out an exemption for the GSIS
from the payment of legal fees without transgressing another
equally important institutional safeguard of the Court's
independence fiscal autonomy. Any exemption from the
payment of legal fees granted by Congress to governmentowned or controlled corporations and local government units
will necessarily reduce the JDF and the SAJF. Undoubtedly,
such situation is constitutionally infirm for it impairs the
Court's guaranteed fiscal autonomy and erodes its
independence.
What is the effect of re-employment?

A member who is re-employed is considered a new

entrant if he was paid separation or retirement
benefits corresponding to his previous services.

GSIS Vs NLRC
Private respondents were security guards of a security agency
assigned to Tacloban branch of GSIS.
o
The security guards thereafter filed an illegal
dismissal against the agency and GSIS, separation pay, salary
differential, 13th month and unpaid salary
o
GSIS filed the present petition contending the error
committed because it is exempt from execution per charter.
o
SC:

The fact that there is no actual and direct employeremployee relationship between petitioner and respondents
does not absolve the former from liability for the latters
monetary claims. When petitioner contracted DNLs security
services, petitioner became an indirect employer of
respondents, pursuant to Article 107 of the Labor Code.

After DNL Security failed to pay the respondents the

correct wages and other monetary benefits, petitioner, as
principal, became jointly and severally liable, as provided in
Articles 106 and 109 of the Labor Code.

Citing GSIS vs. RTC of Pasig, SC did not agree with

petitioner that the enforcement of the decision is impossible
because its charter unequivocally exempts it from execution.

Petitioners charter should not be used to evade its

liabilities to its employees, even to its indirect employees, as
mandated by the Labor Code.

10. COA Disallowances

As a general rule, they cannot be deducted except when his
monetary liability contractual or otherwise in favor of gsis
member separated for cause automatically forfeit unless terms
of resignation or separation provide otherwise member
separated not for cause shall continue to be member and
entitled subject to qualification and other prescription
what is COA disallowances?
Disallowance - the disapproval in audit of a transaction, either
in whole or in part. The term applies to the audit of
disbursements as distinguished from "charge" which applies to
the audit of revenues/receipts.
the scope of its audit and examination, establish the
techniques and methods required therefor, and promulgate
accounting and auditing rules and regulations including those
for the prevention and disallowance of irregular, unnecessary,
excessive, extravagant, or unconscionable expenditures, or
uses of government funds and properties.
Section 4. Audit Disallowances/ Charges/ Suspensions - In the
course of the audit, whenever there are differences arising
from the settlement of accounts by reason of disallowances or
charges,
the
auditor
shall
issue
Notices
of
Disallowances/Charge (ND/NC) which shall issue Notices of
Disallowance/Charge (ND/NC) which shall be considered as
audit decisions, recommendations or dispositions shall be
supported by applicable laws, regulations, jurisprudence and
the generally accepted accounting and auditing principles. The
Auditor may issue Notices of Suspension (NS) for transactions
of doubtful legality/validity/ propriety to obtain further
explanation or documentation.

"SEC. 39. Exemption from Tax, Legal Process and Lien

"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, quasijudicial
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.
GSIS VS COA
the main controversy of whether COA disallowances
could be deducted from retirement benefits because the Board
ordered the dismissal of respondents claim for alleged lack of
jurisdiction, before it could even decide on the principal issue.
the lone issue is whether COA disallowances could be
legally deducted from retirement benefits on the ground that
these were respondents monetary liabilities to the GSIS under
the said provision. There is no dispute that the amounts
deducted by GSIS represented COA disallowances. Thus, the
only question left for the Board to decide is whether the
deductions are allowed under RA 8291.
provision of law clearly states that no amount whatsoever
could be legally deducted from retirement benefits, even those
amounts representing COA disallowances.
47.5. Exemption of all Funds of the GSIS from Tax, Attachment,
Execution, Levy or Other Legal Processes.- 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.
Portability of benefits
(Portability law RA 7699)

A member of GSIS who does not qualify for old age

and other benefits by reason of non-fulfillment of the
required period of service may be able to qualify for
such benefits by making use of the period during
which he rendered services to a private employer and
for which contributions were paid to SSS. This is
allowed under RA 7699 (approved May 1, 1994)

The Act instituted a limited portability scheme in the

GSIS and SSS by totalizing the workers creditable
services or contributions in each of the Systems.
Portability refers to transfer of funds for the benefit and
account of a worker who transfers from one system to the
other (RA 7699, Sec. 2 [b]).
Totalization refers to the process of adding up the periods of
creditable services or contributions in each of the Systems for
purposes of eligibility and computation of benefits. For
purposes of totalization, overlapping periods of membership
shall be considered once only (Sec. 3)

Overlapping period refers to the period during which a

worker contributes simultaneously to GSIS and SSS.
-

The totalization of service credits is only restored to

when the retiree does not qualify for benefits in either
or both of the systems.

Gamogamo vs PNOC

Can justices and judges avail of the portability scheme? NO.

They have different retirement. Their coverage in GSIS is only
LIFE INSURANCE.

In GSIS Law, there is no Maternity leave? In SSS, there is

maternity leave.
EMPLOYEES COMPENSATION
Presumption of compensability