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Republic Act No. 1161 June 18, 1954 P.D. No. 347, S-1973; Sec. 1, P.D.

P.D. No. 347, S-1973; Sec. 1, P.D. 735, S-1975; Sec. 1, P.D. No. 1202, S-
1977; Sec. 1, E.O. No. 102, S-1986; and R.A. 7688)
AN ACT TO CREATE A SOCIAL SECURITY SYSTEM PROVIDING
SICKNESS, UNEMPLOYMENT, RETIREMENT, DISABILITY AND (b) The general conduct of the operations and management functions of
DEATH BENEFITS FOR EMPLOYEES the SSS shall be vested in the Administrator who shall serve as the chief
executive officer immediately responsible for carrying out the program of
SECTION 1. Short Title. — This Act shall be known as the "Social the SSS and the policies of the Commission. The administrator shall be a
Security Law" (As amended by Sec. 1, P.D. No. 24, S-1972)." person who has had previous experience in technical and administrative
fields related to the purposes of this Act. He shall be appointed by the
Section 2. Declaration of Policy. — It is the policy of the Republic of the President of the Philippines and shall receive a salary to be fixed by the
Philippines to establish, develop, promote and perfect a sound and viable Commission with the approval of the President, payable from the funds of
tax-exempt social security service suitable to the needs of the people the SSS. (As amended by Sec. 1, R.A. 2658; Sec. 3, P.D. No. 24, S-1972;
throughout the Philippines which shall provide to covered employees and and Sec. 1, P.D. No. 735, S- 1975)
their families protection against the hazards of disability, sickness, old age
and death, with a view to promoting their well-being in the spirit of social (c) The Commission, upon the recommendation of the Administrator shall
justice. (As amended by Sec. 1, R.A. 1792 and Sec. 2, P.D. No. 24, S- appoint an actuary, and such other personnel as may be deemed
1972) necessary; fix their compensation; prescribe their duties and establish
such methods and procedures as may insure the efficient, honest and
A. Administration economical administration of the provisions and purposes of this Act.
Provided, however, That the personnel of the SSS shall be selected only
from civil service eligibles certified by the commissioner of civil service and
SECTION 3. Social Security System. — (a) To carry out the purposes of
be subject to civil service rules and regulations. (As amended by Sec. 1,
this Act, the Social Security System with principal place of business in
R.A. 2658 and Sec. 1, P.D. No. 735, S-1975)
Metro Manila, Philippines is hereby created. The SSS shall be directed and
controlled by a Social Security Commission composed of the Secretary of
Labor and Employment, the SSS Administrator and seven appointive Section 4. Powers and Duties of the Commission. — For the attainment
members: three of whom shall represent the labor group, one of whom of its main objectives as set forth in section two hereof, the Commission
shall be a woman; three, the management group, one of whom shall be a shall have the following powers and duties:
woman; and, one, the general public, to be appointed by the President of
the Philippines. The Chairman of the Commission shall be designated by (a) To adopt, amend and rescind, subject to the approval of the
the President from among its members. The term of the appointive President, such rules and regulations as may be necessary to carry
members shall be three years: Provided, That the terms of the first six out the provisions and purposes of this Act.
appointive members shall be one, two and three years for every two
members, respectively. (b) To submit annually not later than March 31, a public report to
the President of the Philippines covering its activities in the
All vacancies, except through the expiration of the term, shall be filled for administration and enforcement of this Act during the preceding
the unexpired term only. The apppointive members of the Commission year including information and recommendations on broad policies
shall receive one thousand five hundred pesos per diem for each meeting for the development and perfection of the program of the SSS. (As
actually attended by them: Provided, That no compensation shall be paid amended by Sec. 2, P.D. No. 735, S-1975)
for more than eight meetings a month. Members of the Commission who
hear cases pending before the Commission, shall also receive a per diem (c) To require the Actuary to submit a valuation report on the SSS
of one thousand five hundred pesos. (As amended by Sec. 2, R.A. 1792, benefit program every five years, or more frequently as may be
Sec. 1, R.A. 2658, Sec. 1, R.A. 4857; Sec. 3, P.D. No. 24, S-1972; Sec. 1, necessary, and to undertake the necessary actuarial studies and
calculations concerning increases in benefits and the financial
stability of the SSS and to provide for the feasible increases in Section 5. Settlement of Disputes. — (a) Any dispute arising under this
benefits and the addition of new ones under such rules and Act with respect to coverage, benefits, contributions and penalties thereon
regulations as the Commission may adopt subject to the approval or any other matter related thereto, shall be cognizable by the Commission,
of the President: President, That the actuarial soundness of the and any case filed with respect thereto shall be heard by the Commission,
reserve fund shall be guaranteed: Provided, further, That such or any of its members, or by hearing officers duly authorized by the
increases in benefits shall not require any increase in the rate of Commission and decided within twenty days after the submission of the
contribution. (As amended by Sec. 1, P.D. No. 1636, S-1979 and evidence. The filing, determination and settlement of disputes shall be
Sec. 2, E.O. No. 102, S-1986) governed by the rules and regulations promulgated by the Commission.
(As amended by Sec. 3, R.A. 2658; Sec. 2, R.A. 4857; and Sec. 3, P.D.
(d) To establish branches of the System whenever and wherever it No. 735, S-1975)
may be expedient or necessary, and to inspect or cause to be
inspected periodically such branches. (b) Appeal to Courts. — Any decision of the Commission, in the absence
of an appeal therefrom as herein provided, shall become final fifteen days
(e) To enter into agreements or contracts for such service and aid, after the date of notification, and judicial review thereof shall be permitted
as may be needed for the proper, efficient and stable only after any party claiming to be aggrieved thereby has exhausted his
administration of the System. remedies before the Commission. The Commission shall be deemed to be
a party to any judicial action involving any such decision, and may be
(f) To adopt from time to time a budget of expenditures including represented by an attorney employed by the Commission, or when
salaries of personnel, against all funds available to the System requested by the Commission, by the Solicitor General or any fiscal.
under this Act. (As amended by Sec. 3, R.A. 1792)
(c) Court Review. — The decision of the Commission upon any disputed
(g) To set up its accounting system and provide the necessary matter may be received both upon the law and the facts by the Court of
personnel therefor. (As amended by Sec. 3, R.A. 1792) Appeals. For the purpose of such review the procedure concerning
appeals from the Court of First Instance shall be followed as far as
practicable and consistent with the purposes of this Act. Appeal from a
(h) To require reports, compilations and analyses of statistical and
decision of the Commission must be taken within fifteen days from
economic data and to make investigations as may be needed for
notification of such decision. If the decision of the Commission involves
the proper administration and development of the System.
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
(i) To acquire property, real or personal, which may be necessary manner, and shall take precedence over all cases, except that in the
or expedient for the attainment of the purposes of this Act. Supreme Court, criminal cases wherein life imprisonment or death has
been imposed by the trial court shall take precedence. No appeal shall act
(j) To acquire, receive, or hold, by way of purchase, expropriation as a supersedeas or a stay of the order of the Commission, unless the
or otherwise, public or private property for the purpose of Commission itself, or the Court of Appeals or the Supreme Court, shall so
undertaking housing projects preferably for the benefit of low- order.
salaried employees and for the maintenance of hospitals and
institutions for the sick, aged and infirm employees and immediate (d) Execution of decisions — Any decision or award of the Commission
members of their families. (As amended by Sec. 2, R.A. 2658 and after the same has become final and executory shall be enforced and
Sec. 2., P.D. No. 735, S-1975) executed in the same manner as decisions of Courts of First Instance and
the Commission shall have the power to issue to the City or provincial
(k) To sue and be sued in court. sheriff or the sheriff whom it may appoint such writs of execution as may
be necessary for the enforcement of such decision or award and any
(l) To perform such other acts as it may deem appropriate for the person who shall fail or refuse to comply with such decision, award, or writ,
proper enforcement of this Act. after being required to do so shall, upon application by the Commission,
be punished by the proper court for contempt. (As amended by Sec. 4, subdivisions, branches or instrumentalities, including corporations
P.D. No. 24, S-1972) owned or controlled by the Government: Provided, That a self-
employed professional shall be both employee and employer at the
Section 6. Auditor and Counsel. — (a) The Commissioner on Auditor same time. (As amended by Sec. 2, P.D. No. 1636, S-1979)
shall be the ex-officio Auditor of the SSS. He or his representative shall
check and audit all the accounts, funds and properties of the SSS in the (d) Employee — Any person who performs services for an
same manner and as frequently as the accounts, funds and properties of employer in which either or both mental and physical efforts are
the government are checked and audited under existing laws; and he shall used and who receives compensation for such services, where
have, as far as practicable, the same powers and duties as he has with there is an employer-employee relationship: Provided, That a self-
respect to the checking and auditing of public accounts, funds and employed professional shall be both employee and employer at the
properties in general. same time. (As amended by Sec. 4, R.A. 2658 and Sec. 2, P.D.
No. 1636, S-1979)
(b) The Secretary of Justice shall be the ex-officio counsel of the SSS. He
or his representative shall act as legal adviser and counsel thereof. (As (e) Dependent — The legitimate, legitimated or legally adopted
amended by Sec. 4, P.D. No. 735, S-1975) child who is unmarried, not gainfully employed, and not over
twenty-one years of age, or over twenty-one years of age, provided
Section 7. Oaths, Witnesses, and Production of Records. — When that he is congenitally incapacitated and incapable of self-support,
authorized by the Commission, an official or employee thereof shall have physically or mentally; the legitimate spouse dependent for support
the power to administer oath and affirmation, take depositions, certify to upon the employee; and the legitimate parents wholly dependent
official acts, and issue subpoena and subpoena duces tecum to compel upon the covered employee for regular support. (As amended by
the attendance of witnesses and the production of books, papers, Sec. 4, R.A. 2658; Sec. 3, R.A. 4857; and Sec. 5, P.D. No. 735, S-
correspondence and other records deemed necessary as evidence in 1975)
connection with any question arising under this Act. Any case of contumacy
shall be dealt with in accordance with the provisions of section five hundred (f) Compensation — All actual remuneration for employment,
eighty of the Administrative Code. including the mandated cost of living allowance, as well as the cash
value of any remuneration paid in any medium other than cash
B. Definitions except that part of the remuneration in excess of three thousand
pesos received during the month. (As amended by Sec. 4, R.A.
SECTION 8. Terms Defined. — For the purposes of this Act, the following 1792; Sec. 4 R.A. 2658; Sec. 5, P.D. No. 24, S-1972; and Sec. 3,
terms shall, unless the context indicates otherwise, have the following E.O. No. 102, S-1986)
meanings:
(g) Monthly salary credit — The compensation base for
(a) SSS — The Social Security System created by this Act. (As contributions and benefits as indicated in the schedule in section
amended by Sec. 2, P.D. No. 1636, S-1979) eighteen of this Act. (As amended by Sec. 4, R.A. 2658 and Sec.
5 P.D. No. 24, S-1972)
(b) Commission — The Social Security Commission as herein
created. (h) Monthly — The period from one end of the last payroll period of
the preceding month to the end of the last payroll period of the
current month if compensation is on hourly, daily or weekly basis;
(c) Employer — Any person, natural or juridical, domestic or
if on any other basis, "monthly" shall mean a period of one month.
foreign, who carries on in the Philippines any trade, business,
industry, undertaking, or activity of any kind and uses the services
of another person who is under his orders as regards the
employment, except the Government and any of its political
(i) Contribution — The amount paid to the SSS by the employee That the provisions of this Act shall be supplementary to
and by his employer in accordance with section eighteen of this any such agreement. (As amended by Sec. 1, R.A. 3839;
Act. (As amended by Sec. 5, P.D. No. 24, S-1972) Sec. 3, RA 4857; and Sec. 5, P.D. No. 735, S-1975)

(j) Employment. — Any service performed by an employee for his 8. Such other services performed by temporary employees
employer, except — who may be excluded by regulation of the Commission.
Employees of bona fide independent contractors shall not
1. Agricultural labor when performed by a share or be deemed employees of the employer engaging the
leasehold tenant or worker who is not paid any regular daily services of said contractors. (As amended by Sec. 5, P.D.
wage or base pay and who does not work for an No. 735, S-1975)
uninterrupted period of at least six months in a year; (As
amended by Sec. 4, R.A. 2658) (k) Beneficiaries — The dependent spouse until he remarries and
dependent children, who shall be the primary beneficiaries. In their
2. Domestic service in a private home; absence, the dependent parents and, subject to the restrictions
imposed on dependent children, the legitimate descendents and
3. Employment purely casual and not for the purposes of illegitimate children who shall be the secondary beneficiaries. In
occupation or business of the employer; the absence of any of the foregoing, any other person designated
by the covered employee as secondary beneficiary. (As amended
by Sec. 4, R.A. 2658; Sec. 3, R.A. 4857; Sec. 1, P.D. No. 177, S-
4. Service performed by an individual in the employ of his
1973; and Sec. 5, P.D. No. 735, S-1975)
son, daughter, or spouse, and service performed by a child
under the age of twenty-one years in the employ of his
parents; (l) Contingency — The retirement, death, permanent disability,
injury or sickness of the covered employee. (As amended by Sec.
5, P.D. No. 735, S-1975)
5. Service performed on or in connection with an alien
vessel by an employee if he is employed when such vessel
is outside the Philippines; (m) Average monthly salary credit — The result obtained by
dividing the sum of the monthly salary credits in the sixty-month
period immediately preceding the semester of contingency by the
6. Service performed in the employ of the Philippine
number of months of coverage in the same period, or the result
Government or an instrumentality or agency thereof;
obtained by dividing the sum of all the monthly salary credits paid
prior to the semester of contingency by the number of calendar
7. Service performed in the employ of a foreign government months of coverage in the same period, whichever is greater:
or international organization, or their wholly-owned except where the month of contingency falls within eighteen
instrumentality: Provided, however, That his exemption months from the month of coverage, in which case it is the result
notwithstanding, any foreign government, international obtained by dividing the sum of all monthly salary credits paid prior
organization, or their wholly-owned instrumentality to the month of contingency by the total number of calendar months
employing workers in the Philippines or employing Filipinos of coverage in the same period: Provided, That the injury or
outside of the Philippines may enter into an agreement with sickness which caused the disability shall be deemed as the
the Philippine Government for the inclusion of such permanent disability for the purpose of computing the average
employees in the SSS except those already covered by monthly salary credit. (As amended by Sec. 3, R.A. 4857 and Sec.
their respective civil service retirement systems: Provided, 5, P.D. No. 735, S-1975)
further, That the terms of such agreement shall conform
with the provisions of this Act on coverage and amount of
payment of contributions and benefits: Provided, finally,
(n) Average daily salary credit — The result obtained by dividing private benefit plan and to the Social Security System shall be the same
the sum of the six highest monthly salary credits in the twelve- as his contribution to his private benefit plan before the compulsory
month period immediately preceding the semester of contingency coverage: Provided, further, That any changes, adjustments,
by one hundred eighty. (As amended by Sec. 3, R.A. 4857; Sec. 5, modifications, eliminations or improvements in the benefits to be available
P.D. No. 735, S-1975; and Sec. 3, E.O. No. 102, S-1986) under the remaining private plan, which may be necessary to adopt by
reason of the reduced contribution thereto as a result of the integration,
(o) Semester — A period of two consecutive quarters ending in the shall be subject to agreements between the employers and employees
quarter of contingency. (As amended by Sec. 5, P.D. No. 735, S- concerned: Provided, further, That the private benefit plan which the
1975) employer shall continue for his employees shall remain under the
employer's management and control unless there is an existing agreement
(p) Quarter — A period of three consecutive calendar months to the contrary: Provided, finally, That nothing in this Act shall be construed
ending on the last day of March, June, September and December. as a limitation on the right of employers and employees to agree on and
(As amended by Sec. 3, R.A. 4857) adopt benefits which are over and above those provided under this Act.
(As amended by Sec. 5, R.A. 1972; Sec. 5, R.A. 2658; and Sec. 2, R.A.
3839)
(q) Replacement ratio — The sum of twenty per cent and the
quotient obtained by dividing three hundred by the sum of three
hundred forty and the average monthly salary credit. (As amended (b) Filipinos recruited in the Philippines by foreign-based employers for
by Sec. 2, P.D. No. 1636, S-1979) employment abroad may be covered by the SSS on a voluntary basis. (As
amended by Sec. 2, P.D. No. 177, S-1973 and Sec. 6, P.D. No. 735, S-
1975)
(r) Credited years of service — For a member covered prior to
January 1975, nineteen hundred seventy five minus the calendar
year of coverage plus the number of calendar years in which six or Section 9-A. Compulsory Coverage of the Self-employed. — Coverage
more contributions have been paid from January 1975 up to the in the SSS shall also be compulsory upon all self-employed persons
calendar year containing the semester prior to the contingency. For earning P1,800 or more per annum: Provided, That the effectivity of
a member covered in or after January 1975, the number of coverage of certain groups of self-employed shall be determined by the
calendar years in which six or more contributions have been paid Commission under such rules and regulations it may prescribe: Provided,
from the year of coverage up to the calendar year containing the further, That the effectivity of the coverage of the following self-employed
semester prior to the contingency. (As amended by Sec. 2, P.D. persons shall be in accordance with section ten (b) hereof:
No. 1636, S-1979)
1. All self-employed professionals licensed by the Professional
C. Scope of the System Regulations Commission or those licensed to practice law.

SECTION 9. Compulsory coverage. — (a) Coverage in the SSS shall be 2. Partners and single proprietors of businesses.
compulsory upon all employees not over sixty years of age and their
employers: Provided, That any benefit already earned by employees under 3. Actors and actresses, directors, scriptwriters and news
private benefit plans existing at the time of the approval of this Act shall not correspondents who do not fall within the definition of the term
be discontinued, reduced or otherwise impaired: Provided, further, That "employee" in section eight (d) of this Act.
private plans which are existing and in force at the time of compulsory
coverage shall be integrated with the plan of the SSS in such a way where 4. Professionals athletes, coaches, trainers licensed by the Games
the employer's contribution to his private plan is more that that required of and Amusement Board as well as jockeys and trainers licensed by
him in this Act he shall pay to the SSS only the contribution required of him the Philippine Racing Commission.
and he shall continue his contribution to such private plan less his
contribution to the SSS so that the employer's total contribution to his
Unless otherwise specified herein, all provisions of the SSS Law applicable pension of surviving pensioners as of December 31, 1986 shall be
to covered employees shall also be applicable to the covered self- increased by twenty per cent. (As amended by Sec. 7, R.A. 1792; Sec. 7,
employed persons. (As amended by Sec. 3, P.D. No. 1636, S-1979) R.A. 2658; Sec. 5, R.A. 4857; Sec. 6, P.D. No. 24, S-1972; Sec. 3, P.D.
No. 177, S-1973; Sec. 8, P.D. No. 735, S-1975; Sec. 2, P.D. No. 1202, S-
Section 10. Effective Date of Coverage. — Compulsory coverage of the 1977; Sec. 6, P.D. No. 1636, S-1979; Sec. 1, E.O. No. 28, S-1986; and
employer shall take effect on the first day of his operation and that of the Sec. 4, E.O. No. 102, S-1986)
employee on the day of his employment: Provided, That the compulsory
coverage of self-employed persons referred to in paragraphs (1) to (4) shall Section 12-A. Dependents' Pension. — The dependents' pension shall
take effect on the first day of January following the calendar year they be equivalent to ten per cent of the monthly pension for each dependent
started the practice of their profession or business operations but in no child but not exceeding five, beginning with the youngest and without
case earlier than January 1, 1980. (As amended by Sec. 6, R.A. 1972; Sec. substitution. (As amended by Sec. 3, P.D. No. 1202, S-1977)
6, R.A. 2658; and Sec. 4, P.D. No. 1636, S-1979)
Section 12-B. Retirement Benefits. — (a) A covered employee who has
Section 11. Effect of Separation from Employment. — When an paid at least one hundred twenty monthly contributions prior to the
employee under compulsory coverage is separated from employment, his semester of retirement; and who (1) has reached the age of sixty years
employer's contribution on his account and his obligation to pay and is not receiving monthly compensation of at least three hundred pesos
contributions arising from that employment shall cease at the end of the or (2) has reached the age of sixty-five years, shall be entitled for as long
month of separation, but said employee shall be credited with all as he lives to the monthly pension: Provided, That his dependents born
contributions paid on his behalf and entitled to benefits according to the before his retirement of a marriage subsisting when he was fifty-seven
provisions of this Act. He may, however, continue to pay the total years old shall be entitled to the dependents' pension. (As amended by
contributions to maintain his right to full benefit. (As amended by Sec. 4, Sec. 4, P.D. No. 1202, S-1977)
R.A. 4857 and Sec. 7, P.D. No. 735, S-1975)
(b) A covered member who is sixty years old at retirement and who does
Section 11-A. Effect of Interruption of Business or Professional not qualify for pension benefits under paragraph (a) above, shall be entitled
Income. — If the self-employed realizes no net professional or business to a lump sum benefit equal to the total contributions paid by him and on
income in any calendar year, he shall not be required to pay contributions his behalf: Provided, That he is separated from employment and is not
for the succeeding year. He may, however, be allowed to continue paying continuing payment of contributions to the SSS on his own.
contributions under the same rules and regulations applicable to separated
covered employees. (As amended by Sec. 5, P.D. No. 1636, S-1979) (c) The monthly pension shall be reduced upon the re-employment of a
retired employee who is less than sixty-five years old by an amount
D. Benefits equivalent to one-half his earnings over three hundred pesos. He shall
again be subject to section eighteen and his employer to section nineteen
SECTION 12. Monthly Pension. — (a) The monthly pension shall be the of this Act. (As amended by Sec. 7, R.A. 1792; Sec. 7, R.A. 2658; Sec. 6,
sum of the following: P.D. No. 24, S-1972; Sec. 3, P.D. No. 177, S-1973; Sec. 8, P.D. No. 735;
S-1975; Sec. 4, P.D. No. 1202, S-1977; and Sec. 7, P.D. No. 1636, S-
The average monthly salary credit multiplied by the replacement ratio; and 1979)

One and a half per cent of the average monthly salary credit for each (d) Upon the death of the retired employee pensioner, his primary
credited year of service in excess of ten years. beneficiaries as of the date of his retirement shall be entitled to eighty per
cent of the monthly pension and his dependents to the dependents'
pension: Provided, That if he has no primary beneficiaries and he dies
(b) The monthly pension shall in no case be less than two hundred pesos
within sixty months from the start of his monthly pension, his secondary
nor paid in an aggregate amount of less than sixty times the monthly
beneficiaries shall be entitled to a lump sum benefit equivalent to the bigger
pension except to a secondary beneficiary: Provided, That the monthly
of (1) twenty times the monthly pension or (2) the difference of sixty times amended by Sec. 6, P.D. No. 1202, S-1977 and Sec. 9, P.D. No. 1636, S-
the monthly pension and the total monthly pensions paid by the SSS 1979)
excluding the dependents' pension. (As amended by Sec. 7, P.D. No.
1636, S-1979 and E.O. No. 102, S-1986) (c) Upon the death of the permanent total disability pensioner, his primary
beneficiaries as of the date of disability shall be entitled to eighty per cent
Section 13. Death Benefits. — Upon the covered employee's death, his of the monthly pension and his dependents to the dependents' pension:
primary beneficiaries shall be entitled to the monthly pension and his Provided, That if he has no primary beneficiaries and he dies within sixty
dependents to the dependents' pension: Provided, That he has paid at months from the start of his monthly pension, his secondary beneficiaries
least thirty-six monthly contributions prior to the semester of death: shall be entitled to a lump sum benefit equivalent to the bigger of (1) twenty
Provided, further, That if the foregoing condition is not satisfied his primary times the monthly pension or (2) the difference of sixty times the monthly
beneficiaries shall be entitled to a lump sum benefit equivalent to thirty-five pension and the total monthly pensions paid by the SSS excluding the
times the monthly pension: Provided, further, That if he has no primary dependents' pension. (As amended by Sec. 9, P.D. No. 1636, S-1979 and
beneficiaries, his secondary beneficiaries shall be entitled to a lump sum Sec. 6, E.O. No. 102, S-1986)
benefit equivalent to twenty times the monthly pension: Provided, however,
That the minimum death benefit shall not be less than the total (d) The following disabilities shall be deemed permanent total:
contributions paid by him and his employer on his behalf nor less than one
thousand pesos: Provided, finally, That the beneficiaries of the covered 1. Complete loss of sight of both eyes;
employee who dies without having paid at least three monthly contributions
shall be entitled to the minimum benefit. (As amended by Sec. 5, P.D. No.
2. Loss of two limbs at or above the ankle or wrists;
1202, S-1977 and Sec. 8, P.D. No. 1636, S-1979)
3. Permanent complete paralysis of two limbs;
Section 13-A. Permanent disability benefits. — (a) Upon the covered
employee's permanent total disability, if such disability occurs after he had
paid at least thirty-six monthly contributions prior to the semester of 4. Brain injury resulting to incurable imbecility or insanity; and,
disability, he shall be entitled to the monthly pension and his dependents
to the dependents' Pension: Provided, That if the disability occurs before 5. Such cases as determined and approved by the SSS.
he has paid thirty-six monthly contributions prior to the semester of
disability, he shall be entitled to a lump sum benefit equivalent to thirty-five (As amended by Sec. 9, P.D. No. 1636, S-1979)
times the monthly pension: Provided, further, That the minimum disability
benefit shall not be less than the total contributions paid by him and his (e) If the disability is permanent partial, and such disability occurs before
employer on his behalf nor less than one thousand pesos: Provided, thirty-six monthly contributions have been paid prior to the semester of
further, That a covered employee who becomes permanently totally disability, the benefit shall be such percentage of the lump sum benefit
disabled without having paid at least three monthly contributions shall be described in the preceding paragraph with due regard to the degree of
entitled to the minimum benefit: Provided, finally, That a member who (1) disability as the Commission may determine. (As amended by Sec. 9, P.D.
received a lump sum benefit and (2) is re-employed not earlier than one No. 1636, S-1979)
year from date of his disability shall again be subject to compulsory
coverage and considered a new member. (As amended by Sec. 6, P.D. (f) If the disability is permanent partial and such disability occurs after thirty-
No. 1202, S-1977) six monthly contributions have been paid prior to the semester of disability,
the benefit shall be the monthly pension for permanent total disability
(b) The monthly pension shall be reduced upon his re-employment by an payable not longer than the period designated in the following schedule:
amount equivalent to one-half of his earnings over three hundred pesos.
The monthly pension and dependents' pension shall be suspended upon
his recovery from the permanent total disability, or his failure to present
himself for examination at least once a year upon notice by the SSS. (As
for deteriorating and related permanent partial disabilities, to a maximum
Complete and Number of of one hundred per cent, in which case the employee shall be deemed as
permanent loss of use of Months permanently totally disabled. (As amended by Sec. 9, P.D. No. 1636, S-
1979)
One thumb 10
Section 13-B. Funeral Benefit. — A funeral grant of two thousand pesos
One index finger 8 shall be paid to help defray the cost of funeral expenses upon the death of
a covered member, permanently totally disabled employee or retiree. (As
One middle finger 6 amended by Sec. 11, P.D. No. 735, S-1975; Sec. 2, E.O. No. 28, S-1986;
and Sec. 7, E.O. No. 102, S-1986)
One right finger 5
Section 14. Sickness Benefit. — (a) A covered employee who has paid
One little finger 3 at least three monthly contributions in the twelve-month period immediately
preceding the semester of sickness and is confined for more than three
One big toe 6 days in a hospital or elsewhere with the Commission's approval, shall, for
each day of compensable confinement or fraction thereof, be paid by his
One hand 39 employer, or the SSS, if such person is unemployed, an allowance
equivalent to ninety per cent of his average daily salary credit, subject to
the following conditions: (As amended by Sec. 3, E.O. No. 28, S-1986)
One arm 50
(1) In no case shall the total amount of such daily allowance be
One foot 31
less than seven pesos and fifty centavos nor exceed seventy-five
pesos nor paid longer than one hundred twenty days in one
One leg 46 calendar year; nor shall any unused portion of the one hundred
twenty days of sickness benefit granted under this section be
One ear 10 carried forward and added to the total number of compensable
days allowable in the subsequent year; (As amended by Sec. 3,
Both ears 20 E.O. No. 28, S-1986 and Sec. 8, E.O. No. 102, S-1986)

Hearing of one ear 10 (2) No employee shall be paid any sickness benefit for more than
two hundred forty days on account of the same confinement; and
Hearing of both ears 20
(3) The employee shall notify his employer of the fact of his
Sight of one eye 25 sickness or injury within five calendar days after the start of his
confinement unless such confinement is in a hospital or the
employee became sick or was injured while working or within the
(As amended by Sec. 10, P.D. No. 735, S-1975 and Sec. 9, P.D. No. 1636, premises of the employer in which case notification to the employer
S-1979) is not necessary: Provided, That if the member is unemployed he
shall directly notify the SSS of his confinement within five calendar
(g) The percentage degree of disability, which is equivalent to the ratio that days after the start thereof unless such confinement is in a hospital
the designated number of months of compensability bears to seventy-five, in which case notification is also not necessary: Provided, further,
rounded to the next higher integer, shall not be additive for distinct, That in cases where notification is necessary, the confinement
separate and unrelated permanent partial disabilities, but shall be additive shall be deemed to have started not earlier than the fifth day
immediately preceding the date of notification. (As amended by simple interest of one per cent per month until paid. (As amended by Sec.
Sec. 9, R.A. 2658; Sec. 7, R.A. 4857; Sec. 8, P.D. No. 24, S-1972; 8, P.D. No. 24, S-1972)
Sec. 12, P.D. No. 735, S-1975; and Sec. 10, P.D. No. 1636, S-
1979) (f) The provisions regarding the notification required of the covered
employee and the employer as well as the period within which the claim
(b) The compensable confinement shall begin on the first day of sickness, for benefit or reimbursement may be filed shall apply to all claims filed with
and the payment of such allowances shall be promptly made by the the SSS beginning January 1, 1973. (As amended by Sec. 8, P.D. No. 24,
employer every regular payday or on the fifteenth and last day of each S-1972)
month, and similarly in the case of direct payment by the SSS, for as long
as such allowances are due and payable: Provided, That such allowance Section 14-A. Maternity Leave Benefit. — A covered female employee
shall begin only after all sick leaves of absence with full pay to the credit of who has paid at least three monthly maternity contributions in the twelve-
the employee shall have been exhausted. (As amended by Sec. 9, R.A. month period preceding the semester of her childbirth, abortion, or
2658; Sec. 7, R.A. 4857; Sec. 8, P.D. No. 24, S-1972; Sec. 5, P.D. No. miscarriage and who is currently employed shall be paid a daily maternity
177, S-1973; and Sec. 14, P.D. No. 735, S-1975) benefit equivalent to one hundred per cent of her present basic salary,
allowances and other benefits or the cash equivalents of such benefits for
(c) One hundred per cent of the daily benefits provided in the preceding sixty days subject to the following conditions:
paragraph shall be reimbursed by the SSS to said employer upon receipt
of satisfactory proof of such payment and legality thereof: Provided, That (a) That the employee shall have notified her employer of her
the employer has notified the SSS of the confinement within five calendar pregnancy and the probable date of her childbirth which notice
days after receipt of the notification from the employee: Provided, further, shall be transmitted to the SSS in accordance with the rules and
That if the notification to the SSS is made by the employer beyond five regulations it may provide;
calendar days after receipt of the notification from the employee, said
employer shall be reimbursed only for each day of confinement starting (b) That the payment shall be advanced by the employer in two
from the tenth calendar day immediately preceding the date of notification equal installments within thirty days from the filing of the maternity
to the SSS: Provided, finally, That the SSS shall reimburse the employer leave application;
or pay the unemployed member only for confinement within the one year
period immediately preceding the date the claim for benefit or
(c) That in case of caesarian delivery, the employees shall be paid
reimbursement is received by the SSS, except confinement in a hospital in
the daily maternity benefit for seventy-eight days;
which case the claim for benefit or reimbursement must be filed within one
year from the last day of confinement. (As amended by Sec. 9, R.A. 2658;
Sec. 1, R.A. 4482; Sec. 7, R.A. 4857; and Sec. 8, P.D. No. 24, S-1972) (d) That payment of daily maternity benefits shall be a bar to the
recovery of sickness benefits provided by this Act for the same
compensable period of sixty days for the same childbirth, abortion,
(d) Where the employee has given the required notification but the
or miscarriage;
employer fails to notify the SSS of the confinement or to file the claim for
reimbursement within the period prescribed in this section resulting in the
reduction of the benefit or denial of the claim such employer shall have no (e) That the maternity benefits provided under this section shall be
right to recover the corresponding daily allowance he advanced to the paid only for the first four deliveries after March 13, 1973;
employee as required in this section. (As amended by Sec. 8, P.D. No. 24,
S-1972 and Sec. 12, P.D. No. 735, S-1972) (f) That the SSS shall immediately reimburse the employer of one
hundred per cent of the amount of maternity benefits advanced to
(e) The claim of reimbursement shall be adjudicated by the SSS within a the employee by the employer upon receipt of satisfactory proof of
period of two months from receipt thereof; Provided, That should no such payment and legality thereof; and
payment be received by the employer within one month after the period
prescribed herein for adjudication the reimbursement shall thereafter earn
(g) That if an employee should give birth or suffer abortion or or documents which may be required in connection with the operation or
miscarriage without the required contributions having been execution of this Act shall be exempt from any tax, assessment, fee,
remitted for her by her employer to the SSS, or without the latter charge, or customs or import duty; and all benefit payments made by the
having been previously notified by the employer of time of the SSS shall likewise be exempt from all kinds of taxes, fees or charges, and
pregnancy, the employer shall pay to the SSS damages equivalent shall not be liable to attachments, garnishments, levy or seizure by or
to the benefits which said employee would otherwise have been under any legal or equitable process whatsoever, either before or after
entitled to, and the SSS shall in turn pay such amount to the receipt by the person or persons entitled thereto, except to pay any debt of
employee concerned. (As amended by Sec. 7, P.D. No. 1202, S- the covered employee to the SSS. No tax measure hereafter enacted shall
1977; Sec. 11, P.D. No. 1636, S-1979; and R.A. 7322) apply to the SSS, unless it expressly revokes the declared policy of the
State in section two hereof granting tax-exemption to the SSS. Any tax
Section 15. Non-transferability of Benefits. — The SSS shall pay the assessment against, and still unpaid by the SSS shall be null and void. (As
benefits provided for in this Act to such persons as may be entitled thereto amended by Sec. 9, P.D. No. 24, S-1972 and Sec. 14, P.D. No. 735, S-
in accordance with the provisions of this Act: Provided, That the beneficiary 1975)
who is a national of a foreign country which does not extend benefits to a
Filipino beneficiary residing in the Philippines, or which is not recognized Section 17. Fee of Agents, Attorneys, etc. — No agent, attorney or other
by the Philippines, shall not be entitled to receive any benefit under this person in charge of the preparation, filing or pursuing any claim for benefit
Act: Provided, further, That notwithstanding the foregoing, where the best under this Act shall demand or charge for his services any fee, and any
interest of the SSS will be served, the Commission may direct payments stipulation to the contrary shall be null and void. The retention or deduction
without regard to nationality or country of residence: Provided, further, That of any amount from any benefit granted under this Act for the payment of
if the recipient is a minor or a person incapable of administering his own fees for such services is prohibited: Provided, however, That any member
affairs, the Commission shall appoint a representative under such terms of the Philippine Bar who appears as counsel in any case heard by the
and conditions as it may deem proper: Provided, further, That such Social Security Commission shall be entitled to attorney's fees not
appointment shall not be necessary in case the recipient is under the exceeding ten per cent of the benefits awarded by the Commission, which
custody of or living with the parents or spouse of the employee in which fees shall not be payable before the actual payment of the benefits, and
case the benefits shall be paid to such parents or spouse, as any stipulation to the contrary shall be null and void.
representative payee of the recipient. Such benefits are not transferrable
and no power of attorney or other document executed by those entitled Any violation of the provisions of this Section shall be punished by a fine
thereto, in favor of any agent, attorney, or any other person for the of not less than five hundred pesos nor more than five thousand pesos, or
collection thereof on their behalf shall be recognized, except when they are imprisonment for not less than six months nor more than one year, or both,
physically unable to collect personally such benefits: Provided, further, at the discretion of the court. (As amended by Sec. 4, P.D. No. 347, S-
That in case of death benefits, if no beneficiary qualifies under this Act, 1973 and Sec. 8, P.D. No. 1202, S-1977)
said benefits shall be paid to the legal heirs in accordance with the law of
succession: Provided, finally, That notwithstanding any law to the contrary, E. Sources of Funds — Employment Records and Reports
the payment of benefits under this Act shall bar the recovery of similar
benefits under Title II of Book IV of the Labor Code of the Philippines, as
SECTION 18. Employee's Contribution. — (a) Beginning as of the last
amended, during the period of such payment for the same contingency,
day of the calendar month when an employee's compulsory coverage
and conversely. (As amended by Sec. 10, R.A. 2658; Sec. 4, R.A. 3839;
takes effect and every month thereafter during his employment, the
Sec. 8, R.A. 4857; Sec. 8-A, P.D. No. 24, S-1972; and Sec. 13, P.D. No.
employer shall deduct and withhold from such employee's monthly salary,
735, S-1975)
wage, compensation or earnings, the employee's contribution in an amount
corresponding to his salary, wage, compensation or earnings during the
Section 16. Exemption from Tax, Legal Process and Lien. — All laws month in accordance with the following schedule effective on January 1,
to the contrary notwithstanding the SSS and all its assets and properties, 1987:
all contributions collected and all accruals thereto and income or
investment earnings therefrom as well as all supplies, equipment, papers
Salary Range of Monthly Monthly Contribution XIII 2,750 - OVER 3,000.00 240
Bracket Compensation Salary Employer Employee Total
Number Credit The maximum covered earnings or compensation of all SSS members
I P 1 - 149.99 P 125.00 P 6.40 P 4.10 shall be limited to three thousand pesos per month as provided in the
P 10.50
II 150 - 199.99 175 9 5.7 14.7 foregoing schedules unless otherwise provided by the Social Security
Commission through rules and regulations taking into consideration actual
III 200 - 249.99 225 11.4 7.5 18.9 calculations and rate of benefits. (As amended by Sec. 10, R.A. 1792; Sec.
IV 250 - 349.99 300 15.2 10 25.2 11, R.A. 2658; Sec. 10, P.D. No. 24, S-1972; and Sec. 9, P.D. No. 1202,
V 350 - 499.99 425 21.6 14.1 35.7 S-1986)
VI 500 - 699.99 600 30.4 20 50.4
(b) Every employer shall issue a receipt for all contributions deducted from
VII 700 - 899.99 800 40.5 26.7 67.2 the employee's compensation or shall indicate such deductions on the
VIII 900 - 1099.99 1,000.00 50.7 33.3 84 employee's pay envelopes. (As amended by Sec. 12, P.D. No. 1636, S-
1979)
IX 1100 - 1399.99 1,250.00 63.3 41.7 105
X 1400 - 1749.99 1,500.00 76 50 126 Section 19. Employer's Contributions. — (a) Beginning as of the last
XI 1750 - 2249.99 2,000.00 101.3 66.7 168 day of the month when an employee's compulsory coverage takes effect
XII 2250 - 2749.99 2,500.00 126.7 83.3 210 and every month thereafter during his employment, his employer shall pay,
with respect to such covered employee, the employer's contribution in
XIII 2750 - OVER 3,000.00 152 100 252 accordance with the schedule indicated in section eighteen of this Act.
Notwithstanding any contract to the contrary, an employer shall not deduct,
The tabulated schedule for the monthly contribution of the self-employed directly or indirectly, from the compensation of his employees covered by
and voluntary members effective January 1, 1987 shall be as follows: the SSS or otherwise recover from them the employer's contributions with
respect to such employees.
Salary Range of Monthly Monthly
Bracket compensation Salary Credit Contribution (b) The remittance of such contributions by the employer shall be
Number supported by a quarterly collection list to be submitted to the SSS at the
end of each calendar quarter indicating the correct ID number of the
I P 1 - 149.99 P 125.00 P 10.00
employer, the correct names and SS numbers of the employees and the
II 150 - 199.99 175 14 total contributions paid for their account during the quarter. (As amended
III 200 - 249.99 225 18 by Sec. 13, P.D. No. 1636, S-1979)
IV 250 - 349.99 300 24
Section 19-A. Contributions of the Self-employed. — The contributions
V 350 - 499.99 425 34 to the SSS of the self-employed shall be determined in accordance with
VI 500 - 699.99 600 48 section eighteen of this Act: Provided, That the average monthly net
VII 700 - 899.99 800 64 earnings declared by the self-employed at the time of his registration with
the SSS shall be considered as his monthly compensation and he shall
VIII 900 - 1,099.99 1,000.00 80 pay both the employer and employee contributions.
IX 1,100 - 1,399.99 1,250.00 100
X 1,400 - 1,749.99 1,500.00 120 Net earnings as understood under this section shall be the net income from
his business or profession as reflected in the income tax return for the
XI 1,750 - 2,249.99 2,000.00 160
immediately preceding year, excluding rental income, dividend, interest
XII 2,250 - 2,749.99 2,500.00 200
investments and the like or all types of incomes which are not derived from (b) The contributions payable under this Act in cases where an employer
his business registered with the SSS or from the practice of his profession. refuses or neglects to pay the same shall be collected by the SSS in the
same manner as taxes are made collectible under the National Internal
The average monthly net earnings declared by the self-employed member Revenue Code, as amended. Failure or refusal of the employer to pay or
at the time of his registration shall remain the basis of his monthly salary remit the contributions herein prescribed shall not prejudice the right of the
credit, unless he makes, at the start of the year, another declaration of his covered employee to the benefits of the coverage.
average monthly net earnings based on his income tax returns for the
immediately preceding year, in which case such latest declaration The right to institute the necessary action against the employer may be
becomes the new basis of his monthly salary credit. (As amended by Sec. commenced within twenty years from the time the delinquency is known or
14, P.D. No. 1636, S-1979) the assessment is made by the SSS, or from the time the benefit accrues,
as the case may be. (As amended by Sec. 15, P.D. No. 1636, S-1979)
Section 20. Government Contribution. — As the contribution of the
Government to the operation of the System, the Congress shall annually (c) Should any person, natural or juridical, default in any payment of
appropriate out of any funds in the National Treasury not otherwise contributions, the Commission may also collect the same in either of the
appropriated, the necessary sum or sums to meet the estimated expenses following ways:
of the System for each ensuing year. In addition to this contribution, the
Congress shall appropriate from time to time such sum or sums as may be (1) By an action in court, which shall hear and dispose of the case
needed to assure the maintenance of an adequate working balance of the in preference to any other civil action, or
funds of the System as disclosed by suitable periodic actuarial studies to
be made of the operations of the System. (2) By issuing a warrant to the Sheriff of any province or city
commanding him to levy upon and sell any real and personal
Section 21. Government Guarantee. — The benefits prescribed in this property of the debtor. The Sheriff's sale by virtue of said warrant
Act shall not be diminished and to guarantee said benefits the Government shall be governed by the same procedure prescribed for
of the Republic of the Philippines accepts general responsibility for the executions against property upon judgments by a court of record.
solvency of the System. (As amended by Sec. 13, R.A. 1792)
(d) The last complete record of monthly contributions paid by the employer
Section 22. Remittance of Contributions. — (a) The contribution or the average of the monthly contributions paid during the past three years
imposed in the preceding section shall be remitted to the SSS within the as of the date of filing of the action for collection shall be presumed to be
first seven days of each calendar month following the month for which they the monthly contributions payable by and due from the employer to the
are applicable or within such time as the Commission may prescribe. Every SSS for each of the unpaid month, unless contradicted and overcome by
employer required to deduct and to remit such contributions shall be liable other evidence: Provided, That the SSS shall not be barred from
for their payment and if any contribution is not paid to the SSS as herein determining and collecting the true and correct contributions due the SSS
prescribed, he shall pay besides the contribution a penalty thereon of three even after full payment pursuant to this paragraph, nor shall the employer
per cent per month from the date the contribution falls due until paid. If be relieved of his liability under section twenty-eight of this Act. (As
deemed expedient and advisable by the Commission, the collection and amended by Sec. 12, P.D. No. 24, S-1972 and Sec. 11, P.D. No. 1202, S-
remittance of contributions shall be made quarterly or semi-annually in 1977)
advance, the contributions payable by the employees to be advanced by
their respective employers: Provided, That upon separation of an (e) For purposes of this Section, any employer who is delinquent or has
employee, any contribution so paid in advance but not due shall be credited not remitted all the monthly contributions due and payable may within six
or refunded to his employer. (As amended by Sec. 12, P.D. No. 24, S- months from the issuance of this Executive Order remit said contributions
1972) to the SSS and submit the corresponding collection lists herefore without
incurring the prescribed three per cent penalty. In case the employer fails
to remit to the SSS the said contributions within the six months grace
period, the penalty of three per cent shall be imposed from the time the (b) Should the employer misrepresent the true date of employment of his
contributions first became due as provided in paragraph (a) of this section. employees or remit to the SSS contributions which are less than those
(As amended by Sec. 12, P.D. No. 24, S-1972; Sec. 6, P.D. No. 177, S- required in this Act, resulting in a reduction of benefits, the employer shall
1973; and Sec. 4, E.O. No. 28, S-1986) pay to the SSS damages to the extent of such reduction. (As amended by
Sec. 13, P.D. No. 24, S-1972; Sec. 16, P.D. No. 735, S-1975; and Sec. 17,
Section 22-A. Remittance of Contributions of Self-employed. — Self- P.D. No. 1636, S-1979)
employed members shall remit their monthly contributions quarterly on
such dates and schedules, as the Commission may specify through rules In addition to the liability mentioned in the preceding paragraphs (a) and
and regulations. (b) hereof, the employer shall also be liable for the payment of the
corresponding unremitted contributions and penalties thereon. (As
The penalty of three per cent per month for late payments provided for in amended by Sec. 17, P.D. No. 1636, S-1979)
paragraph (a) of section twenty-two of this Act and the manner of collection
of contributions specified in paragraphs (b), (c) and (d) of section twenty- (c) The records and reports duly accomplished and submitted to the SSS
two of this Act are also applicable to the collection of penalties and by the employee or the employer, as the case may be, shall be kept
contributions of the covered self-employed. (As amended by Sec. 16, P.D. confidential by the SSS except in compliance with a subpoena duces
No. 1636, S-1979) tecum issued by the Courts, shall not be divulged without the consent of
the Administrator or any official of the SSS duly authorized by him, shall be
Section 23. Method of Collection and Payment. — The SSS shall presumed correct as to the data and other matters stated therein, unless
require a complete and proper collection and payment of contributions and the necessary corrections to such records and reports have been properly
proper identification of the employer and the employee. Payment may be made by the parties concerned before the right to the benefit being claimed
made in cash, checks, stamp, coupons, tickets, or other reasonable accrues, and shall be made the basis for the adjudication of the claim. If
devices that the Commission may adopt. (As amended by Sec. 15, P.D. as a result of such adjudication the SSS in good faith pays a monthly
No. 735, S-1975) pension to a beneficiary who is inferior in right to another beneficiary or
with whom another beneficiary is entitled to share, such payments shall
Section 24. Employment Records and Reports. — (a) Each employer discharge the SSS from liability, unless and until such other beneficiary
shall immediately report to the SSS the names, ages, civil status, notifies the SSS of his claim prior to the payments. (As amended by Sec.
occupations, salaries and dependents of all his employees who are subject 13, P.D. No. 24, S-1972 and Sec. 16, P.D. No. 735, S-1975)
to compulsory coverage: Provided, That if an employee subject to
compulsory coverage should die or become sick or disabled or reach the (d) Every employer shall keep true and accurate work records for such
age of sixty without the SSS having previously received any report or period and containing such information as the Commission may prescribe,
written communication about him from his employer or a contribution paid in addition to an "Annual Register of New and Separated Employees"
in his name by his employer, the said employer shall pay to the SSS the which shall be secured from the SSS wherein the employer shall enter on
damages equivalent to the benefits to which said employee would have the first day of employment or on the effective date of separation, the
been entitled had his name been reported on time by the employer to the names of the persons employed or separated from employment, their SSS
SSS, except that in case of pension benefits, the employer shall be liable numbers, and such other data that the Commission may require and said
to pay the SSS damages equivalent to five year's monthly pension; annual register shall be submitted to the SSS in the month of January of
including dependents' pension: Provided, further, That if the contingency each year. Such records shall be open for inspection by the SSS or its
occurs within thirty days from the date of employment, the employer shall authorized representatives quarterly or as often as the SSS may require.
be relieved of his liability for damages. (As amended by Sec. 15, R.A. 1792;
Sec. 9, R.A. 4857; Sec. 13, P.D. No. 24, S-1972; Sec. 16, P.D. No. 735, The SSS may also require each employer to submit, with respect to the
S-1975; and Sec. 12, P.D. No. 1202, S-1977) persons in his employ, reports needed for the effective administration of
this Act. (As amended by Sec. 13, P.D. No. 24, S-1972)
(e) Effective July 1, 1973, each employer shall require as a condition to expenses incidental to the carrying out of this Act shall be accumulated in
employment, the presentation of a registration number secured by the a fund to be known as the 'Reserve Fund'. Such portions of the Reserve
prospective employee from the SSS in accordance with such procedure as Fund as are not needed to meet the current benefit obligations thereof shall
the SSS may adopt: Provided, That in case of employees who have earlier be invested to earn an average annual income of at least nine per cent and
been assigned registration numbers by virtue of a previous employment, shall be known as the 'Investment Reserve Fund' which shall be invested
such numbers originally assigned to them should be used for purposes of in any or all of the following: (As amended by Sec. 14, P.D. No. 24, S-1972;
this section: Provided, further, That the issuance of such registration Sec. 19, P.D. No. 1636, S-1979; and Sec. 11, E.O. No. 102, S-1986)
numbers by the SSS shall not exempt the employer from complying with
the provisions of paragraph (a) of this section. (As amended by Sec. 13, (a) In interest-bearing bonds or securities of the Government of the
P.D. No. 24, S-1972) Philippines, or bonds or securities for the payment of the interest
and principal to which the faith and credit of the Republic of the
(f) Notwithstanding any law to the contrary, microfilm copies of original SSS Philippines is pledged.
records and reports, duly certified by the official custodian thereof, shall
have evidentiary value as the originals and be admissible as evidence in (b) In interest-bearing deposits or securities in any domestic bank
all legal proceedings. (As amended by Sec. 16, P.D. No. 735, S-1975) doing business in the Philippines: Provided, That such deposits
shall not exceed at any time the unimpaired capital and surplus or
Section 24-A. Report and Registration of the Self-employed. — Each total private deposits of the depository bank, whichever is smaller:
covered self-employed person shall, within thirty days from the effective Provided, further, That said bank shall first have been designated
date of coverage, report to the SSS his name, age, civil status, and as the depository for this purpose by the Monetary Board of the
occupation, average monthly net income and his dependents: Provided, Bangko Sentral ng Pilipinas: Provided, finally, That such
That if after said period of thirty days, he should die or become sick, or investment in deposits or securities shall be equitably distributed to
disabled or reach the age of sixty without the SSS having previously all designated banks. (As amended by Sec. 14, P.D. No. 24, S-
received such report, the SSS shall not pay him the corresponding benefit. 1972)
(As amended by Sec. 18, P.D. No. 1636, S-1979)
(c) In loans or interest-bearing advances to the National
F. Funds of the System Government for the construction of permanent toll bridges, toll
roads or government office buildings in accordance with actuarial
Section 25. Deposit and Disbursements. — All moneys paid to or considerations and the conditions prescribed by law in such cases:
collected by the SSS every year under this Act, and all accruals thereto Provided, That the tolls shall be collected by the SSS for a
shall be deposited, administered and disbursed in the same manner and reasonable fee. (As amended by Sec. 14, P.D. No. 24, S-1972)
under the same conditions and requirements as provided by law for other
public special funds: Provided, That not more than twelve per cent of the (d) In direct housing loans to covered employees and group
total yearly contributions plus three per cent of other revenues shall be housing projects giving priority to the low-income groups, up to a
disbursed for salaries and wages, purchases of office equipment and maximum of ninety per cent of the appraised value of the properties
materials, operational expenses and the maintenance of regional offices of to be mortgaged by the borrowers and in loans for the construction
the SSS: Provided, further, That if the expenses in any year are less than and the maintenance of hospitals and institutions for the sick, aged
the maximum amount permissible, the difference shall not be availed of as and infirmed members and their families, referred to in section 4 (j)
additional expenses in the following years. (As amended by Sec. 16, R.A. of this Act: Provided, That such investment shall not exceed thirty
2658; Sec. 5, R.A. 3839; Sec. 10, R.A. 4857; Sec. 13-A, P.D. No. 24, S- per cent of the Investment Reserve Fund. (As amended by Sec.
1972; Sec. 17, P.D. No. 735, S-1975; and Sec. 10, E.O. No. 102, S-1986) 15, R.A. 2658; Sec. 14, P.D. No. 24, S-1972; Sec. 18, P.D. No.
735, S-1975; and Sec. 11, E.O. No. 102, S-1986)
Section 26. Investment of Reserve Funds. — All revenues of the SSS
that are not needed to meet the current administrative and operational
(e) In short and medium term loans to covered employees such as shall pay to the Insurance Commission an amount equal to the
salary, educational, calamity and emergency loans: Provided, That actual expenses of the Insurance Commission in the conduct of the
not more than ten per cent of the Investment Reserve Fund at any examination including the salaries of the examiners and of the
time shall be invested for this purpose. (As amended by Sec. 15, actuary of the Insurance Commission who have been assigned to
R.A. 2658; Sec. 14, P.D. No. 24, S-1972; and Sec. 11, E.O. No. make such examination for the actual time spent in said
102, S-1986) examination: Provided, further, That the general law on insurance
promulgated thereunder shall have suppletory application insofar
(f) In other income earning projects and investments secured by as it is not in conflict with the SS Law and its rules and regulations.
first mortgages on real estate collaterals which, in the (As amended by Sec. 14, P.D. No. 24, S-1972; Sec. 1, P.D. No.
determination of the Commission, shall redound to the benefit of 65; Sec. 7, P.D. No. 177, S-1973; and Sec. 18, P.D. No. 735, S-
the SSS, its members, as well as the public welfare: Provided, That 1975)
any such investment shall be made with due diligence and
prudence to earn the highest possible interest consistent with (i) In bonds, debentures or other evidences of indebtedness of any
safety. (As amended by Sec. 17, R.A. 1792; Sec. 11, R.A. 4857; solvent corporation or institution created or existing under the laws
and Sec. 14, P.D. No. 24, S-1972) of the Philippines: Provided, That the issuing, assuming or
guaranteeing entity or its predecessors shall not have defaulted in
(g) As part of its investment operations, the SSS shall act as insurer the payment of interest on any of its securities and that during each
of all or part of its interests on SSS properties mortgaged to the of any three including the last two of the five fiscal years next
SSS, or lives of mortgagors whose properties are mortgaged to the preceding the date of acquisition by the SSS of such bonds,
SSS. For this purpose, the SSS shall establish a separate account debentures, or other evidences of indebtedness, the net earnings
to be known as the "Mortgagors' Insurance Account." All amounts of the issuing, assuming or guaranteeing institution available for its
received by the SSS in connection with the aforesaid insurance fixed charges, as hereinafter defined, shall have been not less than
operations shall be placed in the Mortgagors' Insurance Account. one and one-quarter times the total of its fixed charges for such
The assets and liabilities of the Mortgagors' Insurance Account year: Provided, further, That such investment shall not exceed 10
shall at all times be clearly identifiable and distinguishable from the per cent of the Investment Reserve Fund.
assets and liabilities in all other accounts of the SSS.
Notwithstanding any provision of law to the contrary, the assets As used in this section, the term 'net earnings available for fixed
held in the Mortgagors' Insurance Account shall not be chargeable charges' shall mean net income after deducting operating and
with the liabilities arising out of any other business the SSS may maintenance expenses, taxes other than income taxes,
conduct but shall be held and applied exclusively for the benefit of depreciation and depletion; but excluding extraordinary non-
the owners or beneficiaries of the insurance contracts issued by recurring items of income or expense appearing in the regular
the SSS under this paragraph. financial statement of the issuing, assuming or guaranteeing
institution. The Term 'fixed charges' shall include interest on funded
(h) The SSS may insure any of its interests or part thereof with any and unfunded debt, amortization of debt discount and rentals for
private company or reinsurer. The Insurer Commission or its leased properties. (As amended by Sec. 12, E.O. No. 102, S-1986)
authorized representatives shall make an examination into the
financial condition and methods of transacting business of the SSS (j) In preferred stocks of any solvent corporation or institution
at least once in two years, but such examination shall be limited to created or existing under the laws of the Philippines: Provided,
the insurance operation of the SSS as authorized under this That the issuing, assuming, or guaranteeing entity or its
section and shall not embrace the other operations of the SSS; and predecessors has paid regular dividends upon its preferred or
the report of said examination shall be submitted to the guaranteed stocks for a period of at least three years next
Commission and a copy thereof shall be furnished the office of the preceding the date of investment in such preferred or guaranteed
President of the Philippines within a reasonable time after the close stocks: Provided, further, That if the stocks are guaranteed, the
of the examination: Provided, That for each examination, the SSS amount of stocks so guaranteed is not in excess of fifty percentum
of the amount of the preferred or common stocks, as the case may (b) Whoever shall obtain or receive any money or check under this Act or
be, of the issuing corporations: Provided, furthermore, That if the any agreement thereunder, without being entitled thereto with intent to
corporation or institution has not paid dividends upon its preferred defraud any covered employee, employer or the SSS, shall be fined not
stocks, the corporation or institution has sufficient retained less than five hundred pesos nor more than five thousand pesos and
earnings to declare dividends for at least two years on such imprisoned for not less than six months nor more than one year. (As
preferred stock: Provided, finally, That such investment shall not amended by Sec. 15, P.D. No. 24, S-1972)
exceed 10 per cent of the Investment Reserve Fund. (As amended
by Sec. 12, E.O. No. 102, S-1986) (c) Whoever buys, sells, offers for sale, uses, transfers, takes or gives in
exchange, or pledges or gives in pledge, except as authorized in this Act
(k) In common stocks of any solvent corporation or institution or in regulations made pursuant thereto, any stamp, coupon, ticket, book
created or existing under the laws of the Philippines listed in the or other device, prescribed pursuant to section twenty-three hereof by the
stock exchange with proven track record of profitability and Commission for the collection or payment of contributions required herein,
payment of dividends over the last three years: Provided, That shall be fined not less than five hundred pesos nor more than five thousand
such investment shall not exceed ten per cent of the Investment pesos, or imprisoned for not less than six months nor more than one year,
Reserve Fund. (As amended by Sec. 12, E.O. No. 102, S-1986) or both, at the discretion of the court.

Section 27. Records and Reports. — The administrator shall keep and (d) Whoever, with intent to defraud, alters, forges, makes or counterfeits
cause to be keep records of operations, of the funds of the System and of any stamp, coupon, ticket, book or other device prescribed by the
disbursements thereof and all accounts of payments made out of said Commission for the collection or payment of any contribution required
funds. During the month of January of each year, the Administrator shall herein, or uses, sells, lends, or has in his possession any such altered,
prepare for submission to the President and to the Congress of the forged, or counterfeited materials or makes, uses, sells, or has in his
Philippines a report of operations of the System during the preceding year possession any such altered, forged material in imitation of the material
including statistical data on the number of persons covered and benefited, used in the manufacture of such stamp, coupon, ticket, book, or other
their occupations and employment status, the duration and amount of device, shall be fined not less than one thousand pesos nor more than ten
benefits paid, the finances of the System at the close of the said year, and thousand pesos or imprisoned for not less than one year nor more than
recommendations. He shall also cause to be published in two newspapers five years, or both, at the discretion of the court.
of general circulation in the Philippines a synopsis of the annual report,
showing in particular the status of the finances of the System and the (e) Whoever fails or refuses to comply with the provisions of this Act or with
benefits administered. the rules and regulations promulgated by the Commission, shall be
punished by a fine of not less than five hundred pesos nor more than five
Section 28. Penal Clause. — (a) Whoever, for the purpose of causing any thousand pesos, imprisonment for not less than six months nor more than
payment to be made under this Act, or under an agreement thereunder, one year, or both, at the discretion of the court: Provided, That where the
where none is authorized to be paid, shall make or cause to be made any violation consists in failure or refusal to register employees or himself, in
false statement or representation as to any compensation paid or received case of the covered self-employed or to deduct contributions from
or whoever makes or causes to be made any false statement of a material employee's compensation and remit the same to the SSS, the penalty shall
fact in any claim for any benefit payable under this Act, or application for be a fine of not less than five hundred pesos nor more than five thousand
loan with the SSS, or whoever makes or causes to be made any false pesos and imprisonment for not less than six months nor more than one
statement, representation, affidavit, or document in connection with such year. (As amended by Sec. 19, R.A. 1792; Sec. 16, R.A. 2658, Sec. 8, P.D.
claim or loan, shall suffer the penalties provided for in Art. one hundred No. 177, S-1973; and Sec. 20, P.D. No. 1636, S-1979)
seventy-two of the Revised Penal Code. (As amended by Sec. 15, P.D.
No. 24, S-1972; Sec. 8, P.D. No. 177, S-1973; and Sec. 5, P.D. No. 347, (f) If the act or omission penalized by this Act be committed by an
S-1973) 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.
(g) Any employee of the System who receives or keeps funds or property Section 32. Effectivity. — This Act shall take effect upon its approval.
belonging, payable or deliverable to the System and who shall appropriate
the same, or shall take or misappropriate or shall consent, or through Approved: June 18, 1954
abandonment or negligence shall permit any other person to take such
property or funds, wholly or partially, or shall otherwise be guilty of
misappropriation of such funds or property, shall suffer the penalties
provided in Art. two hundred seventeen of the Revised Penal Code. (As
amended by Sec. 16, R.A. 2658)

(h) Any employer who after deducting the monthly contributions or loan
amortizations from his employee's compensation; fails to remit the said
deductions to the SSS within thirty days from the date they became due
shall be presumed to have misappropriated such contributions or loan
amortizations and shall suffer the penalties provided in Art. three hundred
fifteen of the Revised Penal Code. (As amended by Sec. 15, P.D. No. 24,
S-1972)

(i) Criminal action arising from a violation of the provisions of this Act may
be commenced by the SSS or the employee concerned either under this
Act or in appropriate cases under the Revised Penal Code: Provided, That
such criminal action may be filed by the SSS in the city or municipality
where the SSS provincial or regional office is located if the violation was
committed within its territorial jurisdiction or in Metro Manila, at the option
of the SSS. (As amended by Sec. 15, P.D. No. 24, S-1972; Sec. 19, P.D.
No. 735, S-1975; and Sec. 13, P.D. No. 1202, S-1977)

Section 29. Government Aid. — The establishment of the Social Security


System shall not disqualify the covered employees and employers from
receiving such government assistance, financial or otherwise, as may be
provided.

Section 30. Separability Clause. — In the event any provision of this Act
or the application of such provision to any person or circumstance is
declared invalid, the remainder of this Act or the application of said
provision to other persons or circumstances shall not be affected by such
declaration.

Section 31. Saving Clause. — The Assembly hereby reserves the right
to amend, alter, or repeal any provision of this Act, and no person shall be
or shall be deemed to be vested with any property or other right by virtue
of the enactment or operation of this Act. (As amended by Sec. 21, R.A.
1792 and Sec. 20, P.D. No. 735, S-1975)