DEFINITION:

Agrarian Reform means redistribution of lands,

regardless of crops or fruits produced, to farmers and
regular farmworkers who are landless, irrespective of
tenurial arrangement, to include the totality of factors
and support services designed to lift the economic
status of the beneficiaries and all other arrangements
alternative to the physical redistribution of lands, such
as production or profit-sharing, labor administration,
and the distribution of shares of stocks, which will
allow beneficiaries to receive a just share of the fruits
of the lands they work.
Agriculture, Agricultural Enterprise or Agricultural
Activity means the cultivation of the soil, planting of
crops, growing of fruit trees, raising of livestock,
poultry or fish, including the harvesting of such farm
products, and other farm activities and practices
performed by a farmer in conjunction with such
farming operations done by person whether natural or
juridical.
Agricultural Land refers to land devoted to agricultural
activity as defined in this Act and not classified as
mineral, forest, residential, commercial or industrial
land.
Agrarian ispute refers to any controversy relating to
tenurial arrangements, whether leasehold, tenancy,
stewardship or otherwise, over lands devoted to
agriculture, including disputes concerning
farmworkers! associations or representation of persons
in negotiating, fi"ing, maintaining, changing, or
seeking to arrange terms or conditions of such tenurial
arrangements.
#dle or Abandoned Land refers to any agricultural land
not cultivated, tilled or developed to produce any crop
nor devoted to any specific economic purpose
continuously for a period of three $%& years
immediately prior to the receipt of notice of ac'uisition
by the government as provided under this Act, but
does not include land that has become permanently or
regularly devoted to non-agricultural purposes.t does
not include land which has become unproductive by
reason of force majeure or any other fortuitous event,
provided that prior to such event, such land was
previously used for agricultural or other economic
purpose.
(armer refers to a natural person whose primary
livelihood is cultivation of land or the production of
agricultural crops, either by himself, or primarily with
the assistance of his immediate farm household,
whether the land is owned by him, or by another
person under a leasehold or share tenancy agreement
or arrangement with the owner thereof.
(armworker is a natural person who renders service
for value as an employee or laborer in an agricultural
enterprise or farm regardless of whether his
compensation is paid on a daily, weekly, monthly or
)pakyaw) basis. *he term includes an individual whose
work has ceased as a conse'uence of, or in
connection with, a pending agrarian dispute and who
has not obtained a substantially e'uivalent and regular
farm employment.
Regular (armworker is a natural person who is
employed on a permanent basis by an agricultural
enterprise or farm.
+easonal (armworker is a natural person who is
employed on a recurrent, periodic or intermittent basis
by an agricultural enterprise or farm, whether as a
permanent or a non-permanent laborer, such as
)dumaan), )sacada), and the like.
,ther (armworker is a farmworker who does not fall
under paragraphs $g&, $h& and $i&.
-ooperatives shall refer to organi.ations composed
primarily of small agricultural producers, farmers,
farmworkers, or other agrarian reform beneficiaries
who voluntarily organi.e themselves for the purpose of
pooling land, human, technological, financial or other
economic resources, and operated on the principle of
one member, one vote. A juridical person may be a
member of a cooperative, with the same rights and
duties as a natural person.
+ection /. Scope/Coverage. 0 *he -omprehensive
Agrarian Reform Law of 1232 shall cover, regardless
of tenurial arrangement and commodity produced, all
public and private agricultural lands, as provided in
4roclamation 5o. 1%1 and E"ecutive ,rder 5o. 662,
including other lands of the public domain suitable for
agriculture.
7ore specifically the following lands are covered by
the -omprehensive Agrarian Reform 4rogram8
$a& All alienable and disposable lands of the
public domain devoted to or suitable for
agriculture. 5o reclassification of forest or
mineral lands to agricultural lands shall be
undertaken after the approval of this Act until
-ongress, taking into account ecological,
developmental and e'uity considerations, shall
have determined by law, the specific limits of
the public domain.
$b& All lands of the public domain in e"cess of
the specific limits as determined by -ongress
in the preceding paragraph9
$c& All other lands owned by the :overnment
devoted to or suitable for agriculture9 and
$d& All private lands devoted to or suitable for
agriculture regardless of the agricultural
products raised or that can be raised thereon.
+ection ;. Retention Limits. 0 E"cept as otherwise
provided in this Act, no person may own or retain,
directly or indirectly, any public or private agricultural
land, the si.e of which shall vary according to factors
governing a viable family-si.e farm, such as
commodity produced, terrain, infrastructure, and soil
fertility as determined by the 4residential Agrarian
Reform -ouncil $4AR-& created hereunder, but in no
case shall retention by the landowner e"ceed five $<&
hectares. *hree $%& hectares may be awarded to each
child of the landowner, subject to the following
'ualifications8 $1& that he is at least fifteen $1<& years
of age9 and $6& that he is actually tilling the land or
directly managing the farm8 provided, that landowners
whose lands have been covered by 4residential
ecree 5o. 6= shall be allowed to keep the areas
originally retained by them thereunder8 provided,
further, that original homestead grantees or their direct
compulsory heirs who still own the original homestead
at the time of the approval of this Act shall retain the
same areas as long as they continue to cultivate said
homestead.
*he right to choose the area to be retained, which
shall be compact or contiguous, shall pertain to the
landowner8 provided, however, that in case the area
selected for retention by the landowner is tenanted,
the tenant shall have the option to choose whether to
remain therein or be a beneficiary in the same or
another agricultural land with similar or comparable
features.n case the tenant chooses to remain in the
retained area, he shall be considered a leaseholder
and shall lose his right to be a beneficiary under this
Act.n case the tenant chooses to be a beneficiary in
another agricultural land, he loses his right as a
leaseholder to the land retained by the landowner. *he
tenant must e"ercise this option within a period of one
$1& year from the time the landowner manifests his
choice of the area for retention.
#n all cases, the security of tenure of the farmers or
farmworkers on the land prior to the approval of this
Act shall be respected.
>pon the effectivity of this Act, any sale, disposition,
lease, management, contract or transfer of possession
of private lands e"ecuted by the original landowner in
violation of the Act shall be null and void8 provided,
however, that those e"ecuted prior to this Act shall be
valid only when registered with the Register of eeds
within a period of three $%& months after the effectivity
of this Act. *hereafter, all Registers of eeds shall
inform the epartment of Agrarian Reform $AR&
within thirty $%?& days of any transaction involving
agricultural lands in e"cess of five $<& hectares.
+ection 1?. Exemptions and Exclusions. 0 Lands
actually, directly and e"clusively used and found to be
necessary for parks, wildlife, forest reserves,
reforestation, fish sanctuaries and breeding grounds,
watersheds, and mangroves, national defense, school
sites and campuses including e"perimental farm
stations operated by public or private schools for
educational purposes, seeds and seedlings research
and pilot production centers, church sites and
convents appurtenant thereto, mos'ue sites and
#slamic centers appurtenant thereto, communal burial
grounds and cemeteries, penal colonies and penal
farms actually worked by the inmates, government and
private research and 'uarantine centers and all lands
with eighteen percent $13@& slope and over, e"cept
those already developed shall be e"empt from the
coverage of the Act.
+ection 66. Qualified Beneficiaries. 0 *he lands
covered by the -AR4 shall be distributed as much as
possible to landless residents of the same barangay,
or in the absence thereof, landless residents of the
same municipality in the following order of priority8
$a& agricultural lessees and share tenants9
$b& regular farmworkers9
$c& seasonal farmworkers9
$d& other farmworkers9
$e& actual tillers or occupants of public lands9
$f& collectives or cooperatives of the above
beneficiaries9 and
$g& others directly working on the land.
+ection /1. The Presidential Agrarian Reform Council.
+ection //. Provincial Agrarian Reform Coordinating
Committee PARCC!"#. 0
...*he 4AR--,7 shall coordinate and monitor the
implementation of the -AR4 in the province.t shall
provide information on the provisions of the -AR4,
guidelines issued by the 4AR- and on the progress of
the -AR4 in the province.
+ection /;. Baranga$ Agrarian Reform Committee
BARC#
+ection /=. %unctions of the BARC. 0 #n addition to
those provided in E"ecutive ,rder 5o. 662, the AAR-
shall have the following functions8
$a& 7ediate and conciliate between parties
involved in an agrarian dispute including
matters related to tenurial and financial
arrangements9
$b& Assist in the identification of 'ualified
beneficiaries and landowners within the
barangay9
$c& Attest to the accuracy of the initial
parcellary mapping of the beneficiary!s tillage9
$d& Assist 'ualified beneficiaries in obtaining
credit from lending institutions9
$e& Assist in the initial determination of the
value of the land9
$f& Assist the AR representatives in the
preparation of periodic reports on the -AR4
implementation for submission to the AR9
$g& -oordinate the delivery of support services
to beneficiaries9 and
$h& 4erform such other functions as may be
assigned by the AR.
$6& *he AAR- shall endeavor to mediate, conciliate
and settle agrarian disputes lodged before it within
thirty $%?& days from its taking cogni.ance thereof.f
after the lapse of the thirty day period, it is unable to
settle the dispute, it shall issue a certificate of its
proceedings and shall furnish a copy thereof upon the
parties within seven $=& days after the e"piration of the
thirty-day period.
+ection ;/. %inancial &ntermediar$ for the CARP. 0
*he Land Aank of the 4hilippines shall be the financial
intermediary for the -AR4, and shall insure that the
social justice objectives of the -AR4 shall enjoy a
preference among its priorities.
AR A7#5#+*RA*#BE ,RER 5,. ?1-?%
*he 5otice of -overage $5,-& commences the
compulsory ac'uisition of private agricultural lands
coverable under the -omprehensive Agrarian Reform
4rogram $-AR4&. Along the various phases of the
-AR4 proceedings, the process stalls because of
Land ,wner $L,& resistance, most of whom invoke the
ground of lack of notice or non-observance of due
process in attacking the proceedings. *his ,rder aims
to plug common loopholes in the coverage process to
safeguard and ensure completion of the ac'uisition
process.
-ommencement
Commencement '$ the "unicipal Agrarian Reform
!fficer $7AR,& 0 After determining that a landholding
is coverable under the -AR4, and upon
accomplishment of the 4re-,cular #nspection Report,
the 7AR, shall prepare the 5,- $-AR4 (orm 5o. <-
A&.
Commencement '$ a part$ 0 Any person may
commence the proceedings herein by filing a petition
for coverage before the epartment of Agrarian
Reform $AR& Regional ,ffice $ARR,& or AR
4rovincial ,ffice $AR4,& of the region or province
where the subject landholding is located. >pon receipt
of a petition for coverage, the ARR, or AR4, shall
transmit the case folder to the 7AR, of the
municipality where the subject landholding is located.
(rom then on, all rules herein pertaining to service of a
copy of the 5,- to the L, shall likewise apply to
service of a copy of the petition for coverage to the
L,.
AR A7#5#+*RA*#BE ,RER 5,. ?6-?%
+E-*#,5 6. Statement of Policies 0 *he e"ercise of
retention right by landowners shall be governed by the
following policies8
6.1.*he landowner has the right to choose the area to
be retained by him which shall be compact and
contiguous, and which shall be least prejudicial to the
entire landholding and the majority of the farmers
therein.
6.6. *he landowner shall e"ercise the right to retain by
signifying his intention to retain within si"ty $;?& days
from receipt of notice of coverage. (ailure to do so
within the period shall constitute a waiver of the right
to retain any area.
6.%. >pon manifestation of the landowner!s intention to
retain, he shall indicate the e"act location thereof
within thirty $%?& days from manifestation date. (ailure
to do so shall authori.e the 7unicipal Agrarian Reform
,fficer $7AR,& to choose said retention area.
6./. *he landowner has the obligation to cultivate the
land directly or thru labor administration and thereby
make the area he retains productive.
6.<. #n all cases, all rights previously ac'uired by the
tenant farmers under 4 6= and the security of tenure
of the farmers or farmworkers on the land prior to the
approval of RA ;;<= shall be respected. (urthermore,
actual tenant farmers in the landholdings shall not be
ejected or removed therefrom.
6.;. *he sale, disposition, lease or transfer of private
lands by the original landowner in violation of RA ;;<=
shall be null and void. *ransactions e"ecuted prior to
RA ;;<= shall be valid only when registered with the
Register of eeds within a period of three $%& months
after 1< Cune 1233 in accordance with +ection ; of RA
;;<=.
+E-*#,5 %. (ho "a$ Appl$ for Retention
%.1.Any person, natural or juridical, who owns
agricultural lands with an aggregate area of more than
five $<& hectares may apply for retention area.
Dowever, a landowner who e"ercised his right of
retention under 4 6= may no longer e"ercise the
same right under RA ;;<=. +hould he opt to retain five
$<& hectares in his other agricultural lands, the seven
$=& hectares previously retained by him shall be
immediately placed under -AR4 coverage.
%.6. A landowner who owns five $<& hectares or less, of
land which are not yet subject of coverage based on
the schedule of implementation provided in +ection =
of RA ;;<=, may also file an application for retention
and a -ertification of Retention shall be issued in his
favor.
%.%. *he right of retention of a deceased lando)ner
may be e"ercised by his heirs provided that the heirs
must first show proof that the decedent landowner had
manifested during his lifetime his intention to e"ercise
his right of retention prior to 6% August 122? $finality of
the +upreme -ourt ruling in the case of Association of
+mall Landowners in the 4hilippines #ncorporated
versus the Donorable +ecretary of Agrarian Reform&.
+E-*#,5 /. Period to Exercise Right of Retention
under RA ;;<=
/.1. *he landowner may e"ercise his right of retention
at any time before receipt of notice of coverage.
/.6. >nder the -ompulsory Ac'uisition $-A& scheme,
the landowner shall e"ercise his right of retention
within si"ty $;?& days from receipt of notice of
coverage.
/.%. >nder the Boluntary ,ffer to +ell $B,+& and the
Boluntary Land *ransfer $BL*&Eirect 4ayment
+cheme $4+&, the landowner shall e"ercise his right
of retention simultaneously at the time of offer for sale
or transfer.
+E-*#,5 ;. (aiver of the Right of Retention. 0 *he
landowner waives his right to retain by committing any
of the following act or omission8
;.1. (ailure to manifest an intention to e"ercise his
right to retain within si"ty $;?& calendar days from
receipt of notice of -AR4 coverage.
;.6. (ailure to state such intention upon offer to sell or
application under the BL*E4+ scheme.
;.%. E"ecution of any document stating that he
e"pressly waives his right to retain. *he 7AR, andEor
4AR, andEor Regional irector shall attest to the due
e"ecution of such document.
;./. E"ecution of a Landowner *enant 4roduction
Agreement and (armer!s >ndertaking $L*4A-(>& or
Application to 4urchase and (armer!s >ndertaking
$A4(>& covering subject property.
;.<. Entering into a BL*E4+ or B,+ but failing to
manifest an intention to e"ercise his right to retain
upon filing of the application for BL*E4+ or B,+.
;.;. E"ecution and submission of any
document indicating that he is consenting to the -AR4
coverage of his entire landholding.
;.=. 4erforming any act constituting estoppel
by laches which is the failure or neglect for an
unreasonable length of time to do that which he may
have done earlier by e"ercising due diligence,
warranting a presumption that he abandoned his right
or declined to assert it.
+E-*#,5 =. Criteria/Re*uirements for A)ard of
Retention 0 *he following are the criteria in the grant
of retention area to landowners8
=.1. *he land is private agricultural land9
=.6. *he area chosen for retention shall be compact
and contiguous and shall be least prejudicial to the
entire landholding and the majority of the farmers
therein9 *+DE#c
=.%. *he landowner must e"ecute an affidavit as to the
aggregate area of his landholding in the entire
4hilippines9 and
=./. *he landowner must submit a list of his children
who are fifteen $1<& years old or over as of 1< Cune
1233 and who have been actually cultivating or directly
managing the farm since 1< Cune 1233 for
identification as preferred beneficiaries, as well as
evidence of such.
=.<. *he landowner must e"ecute an affidavit stating
the names of all farmers, agricultural lessees and
share tenants, regular farmworkers, seasonal
farmworkers, other farmworkers, actual tillers or
occupants, andEor other persons directly working on
the land9 if there are no such persons, a sworn
statement attesting to such fact.
+E-*#,5 2. (hen Retained Area is tenanted
2.1. #n case the area selected by the landowner or
awarded for retention by the AR is tenanted, the
tenant shall have the option to choose whether to
remain therein as lessee or be a beneficiary in the
same or another agricultural land with similar or
comparable features.
2.6. #n case the tenant declines to enter into leasehold
and there is no available land to transfer, or if there is,
the tenant refuses the same, he may choose to be
paid disturbance compensation by the landowner in
such amount as may be agreed between the parties
taking into consideration the improvements made on
the land. Dowever, in no case shall the agreed amount
be less than five $<& times the average gross harvest
on their landholding during the last five $<& preceding
calendar years pursuant to +ection %; of RA %3//, as
amended by +ection = of RA ;%32. #f the parties fail to
agree on the amount of disturbance compensation,
either party may file a petition for fi"ing disturbance
compensation with the appropriate 4rovincial Agrarian
Adjudicator $4ARA&. #n the latter case, the petitioner
must show proof that earnest efforts were e"erted by
the parties to fi" the amount of disturbance
compensation, which efforts proved unsuccessful,
before the same was filed with the 4ARA. *he tenant
shall not be dispossessed or ejected from the
landholding, unless disturbance compensation is paid
and proof thereof is submitted to the 7AR,.
2.%. *he tenant must e"ercise his option within one $1&
year from the time the landowner manifests his choice
of the area for retention, or from the time the 7AR,
has chosen the area to be retained by the landowner,
or from the time an order is issued granting the
retention.
2./. #n case the tenant chooses to remain in the
retained area, he shall be considered a leaseholder
and shall lose his right to be an Agrarian Reform
Aeneficiary $ARA& under -AR4. #n this case, the
re'uired lease agreement shall be e"ecuted in
accordance with relevant issuances on the matter.
2.<. *he provisions on preemption and redemption
under RA %3//, as amended, shall apply to the lessee.
AR A7#5#+*RA*#BE ,RER 5,. ?/-?%
Republic Act $RA& ;;<= or the -omprehensive
Agrarian Reform Law $-ARL&, +ection %, 4aragraph
$c& defines )agricultural land) as referring to )land
devoted to agricultural activity as defined in this Act
and not classified as mineral, forest, residential,
commercial or industrial land.)
*hus, all lands that are already classified as
commercial, industrial or residential before 1< Cune
1233 no longer need any conversion clearance.
+&ST,RBA-CE C!"PE-SAT&!-
/.1.*he applicant shall pay disturbance compensation,
in cash or kind or combination of cash and kind, to the
farmers, agricultural lessees, share tenants,
farmworkers, and actual tillers $as defined and
following the order of priority in +ection 66 of RA ;;<=&
found in the subject landholding, in such amount and
under such terms which the parties may mutually
agree upon among themselves.
/.6. *he amount of distur'ance compensation shall
not 'e less than five .# times the average of gross
harvests on the su'/ect landholding during the last five
.# preceding calendar $ears, pursuant to +ection %;
of RA %3//, as amended by +ection = of RA ;%32.
/.%. -ompensation in kind may consist of some or all
or mi"ture of housing, homelots, employment, andEor
other benefits. *he AR shall approve the terms of
any agreement for the payment of disturbance
compensation and monitor compliance therewith.
/./. Fhenever there is a dispute on the fi"ing of
disturbance compensation or entitlement to
disturbance compensation, the Regional irector shall
refer the matter to the Adjudicator who shall be bound
to take cogni.ance of and resolve the case despite the
non-finality of the issue on whether or not the subject
land is e"empt from -AR4.
/.<. *he Approving Authority may grant a conditional
e"emption order, despite non-payment of disturbance
compensation or while awaiting determination of
entitlement thereto, subject however to the condition
that the applicant andEor landowner shall post a bond
in an amount to be determined by the Adjudicator.
5otwithstanding the posting of such bond, the property
applied for e"emption shall not be developed for non-
agricultural purposes and the farmers, agricultural
lessees, share tenants, farmworkers, and actual tillers
thereof cannot be ejected therefrom until the finality of
the e"emption order.
Republic Act No. 8282 May 01, 1997
An act further strengthening the social security system
thereby amending for this purpose, Republic Act no.
11;1, as amended, otherwise known as the +ocial
+ecurity Law.
4olicy.
#t is the policy of the Republic of the 4hilippines to
establish, develop, promote and perfect a sound and
viable ta"-e"empt social security service suitable to
the needs of the people throughout the 4hilippines
which shall promote social justice and provide
meaningful protection to members and their
beneficiaries against the ha.ards of disability,
sickness, maternity, old age, death, and other
contingencies resulting in loss of income or financial
burden. owards this end, the +tate shall endeavor to
e"tend social security protection to workers and their
beneficiaries.
*he +ocial +ecurity +ystem, hereinafter referred to as
!+++!, a corporate body, with principal place of
business in 7etro 7anila, 4hilippines is hereby
created.
+++ shall be directed and controlled by a +ocial
+ecurity -ommission, hereinafter referred to as
!-ommission!, composed of the +ecretary of Labor
and Employment or his duly designated
undersecretary, the +++ president and seven $=&
appointive members, three $%& of whom shall represent
the workers! group, at least one of whom shall be a
woman9 three $%&, the employers! group, at least one
$1& of whom shall be a woman9 and one $1&, the
general public whose representative shall have
ade'uate knowledge and e"perience regarding social
security, to be appointed by the 4resident of the
4hilippines.
*he term of the appointive members shall be three $%&
years.
*he appointive members of the -ommission shall
receive at least two thousand five hundred pesos
$46,<??.??& per diem for each meeting actually
attended by them but not to e"ceed *en thousand
pesos $41?,???.??& a month88 Provided, *hat
members of the -ommission shall also receive a per
diem of at least *wo thousand five hundred pesos
$46,<??.??& but not to e"ceed (ifteen thousand pesos
$41<,???.??& a month8 Provided , further, *hat said
members of the -ommission shall also receive
reasonable transportation and representation
allowances as may be fi"ed by the -ommission, but
not to e"ceed *en thousand pesos $41?,???.??& a
month.
*he general conduct of the operations and
management functions of the +++ shall be vested in
the +++ 4resident who shall serve as the chief
e"ecutive officer immediately responsible for carrying
out the program of the +++ and the policies of the
-ommission. *he +++ 4resident shall be a person
who has had previous e"perience in the technical and
administrative fields related to the purposes of this Act.
De shall be appointed by the 4resident of the
4hilippines and shall receive salary to be fi"ed by the
-ommission with the approval of the 4resident of the
4hilippines, payable from the funds of the +++.
*he -ommission, upon the recommendation of the
+++ 4resident, shall appoint an actuary, and such
other personnel as may be deemed necessary, fi" their
reasonable compensation, allowances and other
benefits, prescribe their duties and establish such
methods and procedures as may be necessary to
insure the efficient, honest and economical
administration of the provisions and purposes of this
Act8 Provided, ho)ever, *hat the personnel of the +++
below the rank of Bice-4resident shall be appointed by
the +++ 4resident.
Po)ers and +uties of the Commission and SSS
$a& *he -ommission.
)$1& *o adopt, amend and rescind, subject to the
approval of the 4resident of the 4hilippines, such rules
and regulations as may be necessary to carry out the
provisions and purposes of this Act9
)$6& *o establish a provident fund for the members
which will consist of voluntary contributions of
employers andEor employees, self-employed and
voluntary members and their earnings, for the
payment of benefits to such members or their
beneficiaries, subject to such rules and regulations as
it may promulgate and approved by the 4resident of
the 4hilippines9
)$%& *o maintain a provident fund which consists of
contributions made by both the +++ and its officials
and employees and their earnings, for the payment of
benefits to such officials and employees or their heirs
under such terms and conditions as it may prescribe9
)$/& *o approve restructuring proposals for the
payment of due but unremitted contributions and
unpaid loan amorti.ations under such terms and
conditions as it may prescribe9
)$<& *o authori.e cooperatives registered with the
cooperative development authority or associations
registered with the appropriate government agency to
act as collecting agents of the +++ with respect to
their members8 Provided, *hat the +++ shall accredit
the cooperative or association8 Provided, further, *hat
the persons authori.ed to collect are bonded9
)$;& *o compromise or release, in whole or in part, any
interest, penalty or any civil liability to +++ in
connection with the investments authori.ed under
+ection 6; hereof, under such terms and conditions as
it may prescribe and approved by the 4resident of the
4hilippines9 and
)$=& *o approve, confirm, pass upon or review any and
all actions of the +++ in the proper and necessary
e"ercise of its powers and duties hereinafter
enumerated.
$b& *he +ocial +ecurity +ystem.
)$1& *o submit annually not later than April %?, a public
report to the 4resident of the 4hilippines and to the
-ongress of the 4hilippines covering its activities in
the administration and enforcement of this Act during
the preceding year including information and
recommendations on broad policies for the
development and perfection of the program of the
+++9
)$6& *o re'uire the actuary to submit a valuation
report on the +++ benefit program every four $/&
years, or more fre'uently as may be necessary, to
undertake the necessary actuarial studies and
calculations concerning increases in benefits taking
into account inflation and the financial stability of the
+++, and to provide for feasible increases in benefits
every four $/& years, including the addition of new
ones, under such rules and regulations as the
-ommission may adopt, subject to the approval of
the 4resident of the 4hilippines8 Provided, *hat the
actuarial soundness of the reserve fund shall be
guaranteed8 Provided, further, *hat such increases
in benefits shall not re'uire any increase in the rate
of contribution9
)$%& *o establish offices of the +++ to cover as many
provinces, cities and congressional districts,
whenever and wherever it may be e"pedient,
necessary and feasible, and to inspect or cause to
be inspected periodically such offices9
)$/& *o enter into agreements or contracts for such
service and aid, as may be needed for the proper,
efficient and stable administration of the +++9
)$<& *o adopt, from time to time, a budget of
e"penditures including salaries of personnel, against
all funds available to the +++ under this Act9
)$;& *o set up its accounting system and provide the
necessary personnel therefor9
)$=& *o re'uire reports, compilations and analyses of
statistical and economic data and to make
investigation as may be needed for the proper
administration and development of the +++9
)$3& *o ac'uire and dispose of property, real or
personal, which may be necessary or e"pedient for
the attainment of the purposes of this Act9
)$2& *o ac'uire, receive, or hold, by way of purchase,
e"propriation or otherwise, public or private property
for the purpose of undertaking housing projects
preferably for the benefit of low-income members
and for the maintenance of hospitals and institutions
for the sick, aged and disabled, as well as schools
for the members and their immediate families9
)$1?& *o sue and be sued in court9 and
)$11& *o perform such other corporate acts as it may
deem appropriate for the proper enforcement of this
Act.
Settlement of +isputes.
Any dispute arising under this Act with respect to
coverage, benefits, contributions and penalties
thereon or any other matter related thereto, shall be
cogni.able by the -ommission, and any case filed with
respect thereto shall be heard by the -ommission, or
any of its members, or by hearing officers duly
authori.ed by the -ommission and decided within
twenty $6?& days after the submission of the evidence.
Employer- Any person, natural or juridical, domestic or
foreign, who carries on in the 4hilippines 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.
*he self-employed person shall be both employee and
employer at the same time.
Employee - Any person who performs services for an
employer in which either or both mental or physical
efforts are used and who receives compensation for
such services, where there is an employer-employee
relationship.
-ompensation - All actual remuneration for
employment, including the mandated cost-of-living
allowance, as well as the cash value of any
remuneration paid in any medium other than cash
e"cept that part of the remuneration in e"cess of the
ma"imum salary credit.
7onthly salary credit - *he compensation base for
contributions and benefits.
Aeneficiaries - *he dependent spouse until he or she
remarries, the dependent legitimate, legitimated or
legally adopted, and illegitimate children, who shall be
the primary beneficiaries of the member8 Provided,
*hat the dependent illegitimate children shall be
entitled to fifty percent $<?@& of the share of the
legitimate, legitimated or legally adopted children8
Provided, further, *hat in the absence of the
dependent legitimate, legitimated children of the
member, hisEher dependent illegitimate children shall
be entitled to one hundred percent $1??@& of the
benefits. #n their absence, the dependent parents who
shall be the secondary beneficiaries of the member. #n
the absence of all the foregoing, any other person
designated by the member as hisEher secondary
beneficiary.
-ontingency - *he retirement, death, disability, injury
or sickness and maternity of the member.
+elf-employed - Any person whose income is not
derived from employment, as defined under this Act,
as well as those workers enumerated in +ection 5ine-
A hereof.
Coverage. - $a& -overage in the +++ shall be
compulsory upon all employees not over si"ty $;?&
years of age and their employers.
Effective +ate of Coverage. - -ompulsory coverage of
the employer shall take effect on the first day of his
operation and that of the employee on the day of his
employment.
Effect of Separation from Emplo$ment. - Fhen an
employee under compulsory coverage is separated
from employment, his employer!s contribution on his
account and his obligation to pay contributions arising
from that employment shall cease at the end of the
month of separation, but said employee shall be
credited with all contributions paid on his behalf and
entitled to benefits according to the provisions of this
Act. De may, however, continue to pay the total
contributions to maintain his right to full benefit.
Effect of &nterruption of Business or Professional
&ncome. - #f the self-employed reali.es no income in
any given month, he shall not be re'uired to pay
contributions for that month. De may, however, be
allowed to continue paying contributions under the
same rules and regulations applicable to a separated
employee member8 Provided, *hat no retroactive
payment of contributions shall be allowed other than
as prescribed under +ection *wenty-two-A hereof.
+eath Benefits. - >pon the death of a member who
has paid at least thirty-si" $%;& monthly contributions
prior to the semester of death, his primary
beneficiaries shall be entitled to the monthly pension8
Provided, *hat if he has no primary beneficiaries, his
secondary beneficiaries shall be entitled to a lump
sum benefit e'uivalent to thirty-si" $%;& times the
monthly pension. #f he has not paid the re'uired thirty-
si" $%;& monthly contributions, his primary or
secondary beneficiaries shall be entitled to a lump
sum benefit e'uivalent to the monthly pension times
the number of monthly contributions paid to the +++
or twelve $16& times the monthly pension, whichever is
higher.
%uneral Benefit. - A funeral grant e'uivalent to *welve
thousand pesos $416,???.??& shall be paid, in cash or
in kind, to help defray the cost of funeral e"penses
upon the death of a member, including permanently
totally disabled member or retiree.
"aternit$ Leave Benefit. - A female member who has
paid at least three $%& monthly contributions in the
twelve-month period immediately preceding the
semester of her childbirth or miscarriage shall be paid
a daily maternity benefit e'uivalent to one hundred
percent $1??@& of her average daily salary credit for
si"ty $;?& days or seventy-eight $=3& days in case of
caesarian delivery.
RE!"#I$ A$T NO. 8291 7ay %?, 122=
An act amending 4residential ecree no. 11/;, as
amended, e"panding and increasing the coverage and
benefits of the government service insurance system,
instituting reforms therein and for other purposes
Aoard 0 *he Aoard of *rustees of the :overnment
+ervice #nsurance +ystem9
Employer 0 *he national government, its political
subdivisions, branches, agencies or instrumentalities,
including government-owned or controlled
corporations, and financial institutions with original
charters, the constitutional commissions and the
judiciary9
Employee or 7ember 0 Any person, receiving
compensation while in the service of an employer as
defined herein, whether by election or appointment,
irrespective of status of appointment, including
barangay and sanggunian officials9
Active 7ember 0 A member who is not separated
from the service9
ependents 0 ependents shall be the following8 $a&
the legitimate spouse dependent for support upon the
member or pensioner9 $b& the legitimate, legitimated,
legally adopted child, including the illegitimate child,
who is unmarried, not gainfully employed, not over the
age of majority, or is over the age of majority but
incapacitated and incapable of self-support due to a
mental or physical defect ac'uired prior to age of
majority9 and $c& the parents dependent upon the
member for support9
4rimary beneficiaries 0 *he legal dependent spouse
until heEshe
remarries and the dependent children9
+econdary beneficiaries 0 *he dependent parents
and, subject to the restrictions on dependent children,
the legitimate descendants9
-ompensation 0 *he basic pay or salary received by
an employee, pursuant to his electionEappointment,
e"cluding per diems, bonuses, overtime pay,
honoraria, allowances and any other emoluments
received in addition to the basic pay which are not
integrated into the basic pay under e"isting laws9
-ontribution 0 *he amount payable to the :+#+ by
the member and the employer in accordance with
+ection < of this Act9
Lump sum 0 *he basic monthly pension multiplied by
si"ty $;?&9
4ensioner 0 Any person receiving old-age or
permanent total disability pension or any person who
has received the lump sum e"cluding one receiving
survivorship pension benefits as defined in +ection 6?
of this Act9
-ompulsory 7embership. 0 7embership in the :+#+
shall be compulsory for all employees receiving
compensation who have not reached the compulsory
retirement age, irrespective of employment status,
e"cept members of the Armed (orces of the
4hilippines and the 4hilippine 5ational 4olice, subject
to the condition that they must settle first their financial
obligation with the :+#+, and contractuals who have
no employer and employee relationship with the
agencies they serve.
Effect of +eparation from the +ervice. 0 A member
separated from the service shall continue to be a
member, and shall be entitled to whatever benefits he
has 'ualified to in the event of any contingency
compensable under this Act.
-ollection and Remittance of -ontributions. 0 $a& *he
employer shall report to the :+#+ the names of all its
employees, their corresponding employment status,
positions, salaries and such other pertinent
information, including subse'uent changes therein, if
any, as may be re'uired by the :+#+9 the employer
shall deduct each month from the monthly salary or
compensation of each employee the contribution
payable by him in accordance with the schedule
prescribed in the rules and regulations implementing
this Act.
Each employer shall remit directly to the :+#+ the
employees! and employers! contributions within the
first ten $1?& days of the calendar month following the
month to which the contributions apply.
#nterests on elayed Remittances. 0 Agencies which
delay the remittance of any and all monies due the
:+#+ shall be charged interests as may be prescribed
by the Aoard but not less than two percent $6@&
simple interest per month.
:overnment :uarantee. 0 *he government of the
Republic of the 4hilippines hereby guarantees the
fulfillment of the obligations of the :+#+ to its
members as and when they fall due.
Retirement Aenefits. 0 $a& Retirement benefit shall
be8
)$1& the lump sum payment as defined in this Act
payable at the time of retirement plus an old-age
pension benefit e'ual to the basic monthly pension
payable monthly for life, starting upon e"piration of the
five-year $<& guaranteed period covered by the lump
sum9 or
)$6& cash payment e'uivalent to eighteen $13& months
of his basic monthly pension plus monthly pension for
life payable immediately with no five-year $<&
guarantee.
)$b& >nless the service is e"tended by appropriate
authorities, retirement shall be compulsory for an
employee at si"ty-five $;<& years of age with at least
fifteen $1<& years of service8 4rovided, *hat if he has
less than fifteen $1<& years of service, he may be
allowed to continue in the service in accordance with
e"isting civil service rules and regulations.
-onditions for Entitlement. 0 A member who retires
from the service shall be entitled to the retirement
benefits in paragraph $a& of +ection 1% hereof8
4rovided, *hat8
$1& he has rendered at least fifteen $1<& years of
service9
$6& he is at least si"ty $;?& years of age at the time of
retirement9 and
$%& he is not receiving a monthly pension benefit from
permanent total disability.