REPUBLIC ACT NO.

11199 or SOCIAL SECURITY SYSTEM ACT OF 2018

RATIONALE:
(1) Enacted pursuant to the policy of the State to establish, develop, and promote a sound
and viable tax-exempt social security system sustainable to the needs of the people
throughout the Philippines.
(2) Provide meaningful protection to members and their beneficiaries against the hazards of
disability, sickness, maternity, old age, and death, and other contingencies resulting in
loss or income or financial burden.

The Social Security System Act is a social legislation (Roman Catholic Archbishop of Manila vs
SSS).

Social legislation are those laws that provide particular kinds of protection or benefits to society
or segments thereof in furtherance of social justice.

SOCIAL LEGISLATION VS LABOR LAW

LABOR LAWS SOCIAL LEGISLATION

EFFECT ON EMPLOYMENT Directly affects employment Governs effects of

employment

PURPOSE To meet the daily needs of To secure the long time

the workers benefits of workers

WHICH LAW GOVERNS ITS Labor Code and its IRRs. Social Security System Act of
APPLICATION 2018

COVERAGE Workers with Both working and

Employer-Employee non-working (such in the
Relationship case of voluntary members)

WHO PROVIDES Employer Government

SOCIAL SECURITY COMMISSION AND OTHER OFFICERS OF THE SSS:

● The governing board and policy-making body that directs and controls the SSS.
● COMPOSITION:
○ The Secretary of the Department of Finance as the ex-officio Chairperson;
○ The President and CEO of the SSS as the Vice-Chairperson;
○ The Secretary of the Department of Labor and Employment, as an ex-officio
Member, and;
○ Six Appointive Members
 ■Three of whom shall represent the worker’s group (at least one of whom
shall be a woman)
■ Three representatives from the employer’s group (at least one of whom
shall be a woman)
● TERMS OF OFFICE:
○ For regular Appointive Members - Three years, extendible for another term of
three years.
○ For the six appointive Members - One, two, and three years for every two
members.
● OFFICE OF THE CHIEF ACTUARY:
○ Appointment - The Commission, upon the recommendation of the President and
CEO, shall appoint the Chief Actuary.
○ Main Function - To conduct actuarial and statistical studies.
● AUDITOR:
○ The Chairperson of the Commission on Audit shall be the ex-officio Auditor of the
SSS.
● COUNSEL:
○ The Secretary of the Department of Justice shall be the ex-officio Counsel of the
SSS.
○ The DOJ Secretary or his/her representative shall act as the official legal adviser
and counsel of the commission.

IMPORTANT TERMS TO CONSIDER:

EMPLOYER
● DEFINITION: Any person, natural or juridical, domestic or foreign, who carries in the
Philippines any trade, business, industry, undertaking, or activity of any kind and uses
the services of another person who is under his/her orders as regards the employment.
● In the case of ​Roman Catholic Archbishop of Manila vs SSS​, the Supreme Court held
that It is apparent that the coverage of the Social Security Law is predicated on the
employer-employee relationship of more or less permanent nature and extends to
employment of all kinds except those expressly excluded.
● Employment is defined as any service performed by an employee for his/her employer,
except the following:
○ Services where there is no employer-employee relationship in accordance with
existing labor laws, rules, regulations, and jurisprudence;
○ Service performed in the employ of the Philippine Government or instrumentality
or agency thereof
○ Service performed in the employ of a foreign government or international
government or international organization, or their wholly-owned instrumentality.
○ Such other services performed by temporary and other employees which may be
excluded by regulation of the Commission.
EMPLOYEE
● DEFINITION: (1) Any ​person who performs services for an employer​ (2) in which
either or both ​mental or physical efforts are used​ (3) who received ​compensation​ for
such services (4) where there is ​an employer-employee relationship.
● Coverage in the SSS shall be compulsory upon all employees including domestic
workers or “​kasambahays”​ not over 60 years of age and their employers.
● When a member has secured an SSS number, it does not automatically make a person
an SSS member. He will be considered a member only when he has been reported for
SSS coverage and has ​AT LEAST PAID ONE MONTH CONTRIBUTION​.
● A person who is registered for SSS membership becomes a member for life. Therefore,
during such time that the member failed to remit contributions, the benefits, and loan
privileges provided by the SSS can still be availed.

SELF-EMPLOYED
● DEFINITION: Any person whose income is not derived from employment, as defined
under the SSS Act, as well as those workers enumerated in Section 9-A.
● COVERAGE:
○ All self-employed professionals;
○ Partners and single proprietors of businesses;
○ Actors and actresses, directors, scriptwriters, and news correspondents who do
not fall within the definition of the term employee.
○ Professional athletes, coaches, trainers, and jockeys.
○ Individual farmers and fishermen.

OVERSEAS FILIPINO WORKERS (OFWs)

● Any person who is to be engaged, is engaged, or has been engaged in a remunerated
activity (been promised or assured employment overseas) in a State of which he/she is
not a citizen, or on board a vessel navigating the foreign seas other than a government
ship used for military or non-commercial purposes, or on an installation located offshore
or on the high seas.
● An OFW shall be allowed to register for initial coverage with the SSS up to the day of
his/her 60th birthday.
● Coverage in the SSS shall be compulsory upon all sea-based and land-based OFWs.

SEA-BASED OFWs The Manning Agency shall be responsible for

performing the functions of the employer
under the Social Security Act

LAND-BASED OFWs The OFW shall pay both the contributions of

the employer and the employee. They are to
be considered to be in the same manner as
 self-employed persons until a Bilateral Labor
Agreement shall have been entered into.

The DOLE and the DFA are mandated to

negotiate Bilateral Labor Agreements with the
OFW’s host countries.

VOLUNTARY MEMBERS:
● The following may be covered by the SSS on a voluntary basis:
○ Non-working spouse or aspouse of a member who devotes full time to managing
the household and family affairs, but does not engage in other vocation or
employment which is subject to compulsory or mandatory coverage.
○ An OFW upon the termination of his/her employment overseas.
○ A covered employee who was separated from employment who continues to pay
his/her contributions.
○ A self-employed member who realizes no income in any given month who
continues to pay his/her contributions.
● A voluntary member shall pay his/her contribution in accordance with the guidelines on
payment deadline applicable to self-employed members.

EFFECTIVE DATE OF COVERAGE:

For the employer:

- On the first day of his operation.

For the employee

- On the day of his employment.

For the self-employed:

- Upon his registration with the SSS. (Registration shall mean payment of first
contribution)
- Each covered Self-Employed member shall, ​within 30 days from the 1st day he/she
started the practice of his/her profession or business operations​, register and
report to the SSS his/her name, age, civil status, and occupation, average monthly net
income, and his/her dependents.

For Sea-based OFW:

- On the first day of his/her employment.

For Land-based OFWs covered under BLA:

- Based on the provisions of the Agreement and its implementing arrangement.

For Land-based OFWs not covered under BLA:

 - On the applicable month and year of the first contribution payment.

EFFECT OF SEPARATION FROM EMPLOYMENT:

● When an employee under compulsory coverage is separated from employment, his/her
employer’s contributions on his/her account and his/her obligation to pay the
contributions of his/her employees shall cease at the end of the month of separation.
● The separated employee shall be credited with all contributions paid on his/her behalf
and is entitled to the social security benefits in accordance with issued guidelines and
the law.
● The separated employee may continue to pay his/her contributions voluntarily to
maintain his/her right to full benefit subject to the following guidelines:
○ If the coverage as VM is for the first time - he/she shall have the option to choose
any Monthly Salary Credit from the existing contributions schedule, regardless of
age and last posted Monthly Salary Credit prior to becoming a VM.
○ Membership type of covered employee, self-employed, or OFW may be changed
to VM by indicating voluntary as payor type in the contribution payment form.
Such change in membership type upon payment of contribution shall be deemed
as (1) member’s declaration that he/she ceased to be employed, self-employed,
or OFW and (2) that he/she realized no income or earnings for which the
voluntary contribution/s was/were paid.
○ A member who is ​60 years old and above but not yet 65 with 120 monthly
contributions or more​ may continue paying as VM up to 65 years old.
○ A member who is ​65 years old and above with less than 120 monthly
contributions​ may continue paying contributions as VM until he/she completes
120 monthly contributions.

*VM - Voluntary Member

EFFECT OF INTERRUPTION OF BUSINESS OR PROFESSIONAL INCOME:

● If the self-employed member realizes no income in any given month, he/she shall not be
required to pay his/her contributions for that month.
● A self-employed member may be allowed to continue paying contributions under the
same rules and regulations applicable to a separated employee member.

CONTRIBUTIONS:
● EMPLOYER’S CONTRIBUTIONS
○ On the last day of the calendar month, the employer shall deduct and withhold
from such employee’s monthly salary, the employee’s contribution.
● EMPLOYEE’S CONTRIBUTIONS
○ Beginning on the last day of the month, the employer shall pay his/her
contribution in accordance with the schedule and the rate of contributions as may
be determined and fixed by the Commission.
● SELF-EMPLOYED MEMBER’S CONTRIBUTIONS
 ○ The contributions to the SSS of the Self-Employed member shall be fixed and
determined in accordance with the schedule and the rate of contribution as may
be fixed by the Commission.
○ The monthly earnings declared by the Self-Employed member at the time of
his/her registration with the SSS shall be considered as his/her monthly
compensation and he/she shall pay both the employer and the employee
contributions. It shall also be the basis of his/her Monthly Salary Credit, unless
he/she makes another declaration of his/her monthly earnings, in which case,
such latest declaration becomes the new basis of his/her Monthly Salary Credit.
○ The contributions of Self-Employed Members earning 1000 PHP monthly or
below may be reduced, fixed, or determined by the Commission.
● GOVERNMENT’S CONTRIBUTION
○ As the contribution of the Government to the operation of the SSS, Congress
shall annually appropriate out of any funds in the National Treasury not otherwise
appropriated, the necessary sum or sums to meet the estimated expenses of the
SSS for each ensuing year.

REMITTANCE OF CONTRIBUTIONS:
● Contributions shall be remitted to the SSS ​within the first ten days of each calendar
month​ ​following the month for which they are applicable ​or​ within such time as the
Commission may prescribe.
● Every employer required to deduct and remit such contributions shall be liable for their
payment. If any contribution is not paid to the SSS as prescribed, the delinquent
employer shall pay besides the contribution a penalty thereon of ​2% per month​ from the
date the contribution falls due until paid.
● Section 28 (e) provides that the employer shall also be punished by ​a fine of not less
than 5000 PHP nor more than 20 000 PHP or imprisonment for not less than six
years and one day nor more than twelve years or both, at the discretion of the
court.
● The right to institute the necessary action against the employer may be commenced
within 20 years from: (1) the time the delinquency is known or (2) the assessment is
made by the SSS, or (3) from the time the benefit accrues.

REMITTANCE OF CONTRIBUTIONS BY A SELF-EMPLOYED MEMBER:

● No retroactive payment shall be allowed other than those provided in Section 22-A.
● Remittance of contributions shall be made quarterly on such dates and schedules as the
Commission may specify through rules and regulations.
● The deadline for payment of contributions of Self-Employed Members shall be:
○ Contributions for the months of January to September of a given calendar year -
December 31 of the same year.
○ Contributions for the months of October to December of a given calendar year -
January 31 of the succeeding year.
RATES OF CONTRIBUTION:

● Monthly Salary Credit is the compensation base for contributions and benefits as
indicated in the Act.
● Domestic workers or “kasambahays” who are receiving income less than the minimum
monthly salary credit shall pay contributions based on their actual monthly salary but not
lower than 1000 PHP.
○ The term ​domestic work ​refers to work performed in or for a household or
households.
○ The term ​domestic worker or kasambahay r​ efers to any person engaged in
domestic work within an employment relationship such as but not limited to:
■ General househelp, nursemaid or yaya, cook, gardener or laundry
person, but shall exclude any person who performs domestic work only
occasionally or sporadically and not on an occupational basis.
○ A domestic worker who has rendered at least one month of service shall be
covered by the SSS and shall be entitled to all the benefits in the law.
○ Premium payments or contributions shall be shouldered by the employer.
Exception: If the domestic worker is receiving a wage of 5000 PHP and above
per month, the domestic worker shall pay the proportionate share.
● For OFWs, the minimum Monthly Salary Credit shall be 8000 PHP or as may be
determined and set by the Commission.
● SSS members who are subject to compulsory coverage and receiving monthly income
lower than the minimum Monthly Salary Credit - Employers shall pay the contributions
based on the current Monthly Salary Credit
● SSS members who are subject to compulsory coverage receiving monthly income more
than the maximum Monthly Salary Credit - Employers shall pay the contributions based
on the maximum Monthly Salary Credit.

CONTRIBUTIONS SCHEDULE:
AVERAGE MONTHLY SALARY CREDIT
● The Average Monthly Salary Credit shall be the higher of the following:
○ The sum of the last 60 Monthly Salary Credits immediately preceding the
semester of contingency, divided by 60.
○ Sum of all the Monthly Salary Credits paid prior to the semester of contingency,
divided by the number of monthly contributions paid in the same period.

DEPENDENTS
● The dependents shall refer to the following:
○ The legal spouse entitled by law to receive support from the member;
○ The legitimate, legitimated, or legally adopted and illegitimate child who is:
■ Unmarried
 ■ Not gainfully employed, and
■ Has not reached 21 years of age, or if over 21 years of age, he/she is
congenitally or while still a minor has been permanent incapacitated and
incapable of self-support, physically or mentally.
○ The parent who is receiving regular support from the member.w

PRIMARY BENEFICIARIES:
● The following are considered as primary beneficiaries:
○ The ​dependent spouse ​who has not re-married, cohabited, or entered in a
live-in relationship before or after the death of the member.
○ The dependent, legitimate, legitimated, or legally adopted, and illegitimate
children. Where there are legitimate or illegitimate children, the former shall be
preferred. The dependent illegitimate children shall be entitled to 50% of the
share of the legitimate, legitimated, or legally adopted children. In the absence of
the defendant legitimate, legitimated, or legally adopted children of the member,
his/her dependent illegitimate children shall be entitled to 100%.
● In ​SSS vs Aguas​, Pablo Aguas was a member of the SSS and a pensioner who died on
December 8, 1996. Rosanna Aguas filed a claim with the SSS for death benefits
indicating in her claim that Pablo was likewise survived by his minor child, Jeylynn.
However, Pablo’s sister opposed the claim arguing that Rosanna has already
abandoned the family abode for more than six years and before and lived with another
man. The Court ruled that Rosanna cannot claim benefits accruing from the death of
Pablo as based from the testimonies of the witnesses, Rosanna and Pablo have been
living separately for more than six years. ​A wife who is separated de facto from her
husband cannot be said to be dependent for support upon the husband.
● The same issue arose in ​SSS vs De Los Santos​, where Antonio De Los Santos’ wife,
Gloria, left him to live with another man and eventually divorce him in the United States.
Antonio then married Cirila and their union produced one child which prompted the
former to change his beneficiaries from Gloria to his new wife. When Antonio died, Gloria
filed an application for Antonio’s death benefits. The Court ratiocinated its ruling in
Aguas holding that ​although respondent was the legal spouse of the deceased, she
is still disqualified to be his primary beneficiary as she failed to fulfill the
requirement of dependency upon her deceased husband.
● Signey vs SSS i​ nvolved the award of benefits to illegitimate children. Rodolfo Signey
designated Yolanda Signey as his primary beneficiary and his four children as his
secondary beneficiaries. Rodolfo died and Yolanda filed a claim for death benefits. It
was revealed that Rodolfo had two common law relationships with Yolanda and a certain
Gina Servando whom he had two minor children. The legal spouse, Editha Espinosa,
initially filed a claim but retracted the same. ​The Court ruled that Yolanda is
disqualified as a beneficiary since she was not the legal spouse of Rodolfo as
required by the law.​ ​In the absence of any legitimate children, it follows that the
illegitimate minor children shall be entitled to the death beneficiaries as primary
beneficiaries.
SECONDARY BENEFICIARIES:
● In the absence of primary beneficiaries, the secondary beneficiaries are as follows:
○ The dependent parents of the deceased member; or
○ In the absence of dependent parents, any other person/s designated and
reported by the member to the SSS. ​Provided that the person designated by the
member shall be someone who has a right to claim for support from the
deceased member under the Family Code.
● In the case ​Bartolome vs SSS,​ John Colcol was an electrician and died on board the
vessel. At the time of his death, John was unmarried and childless. Thus, his biological
mother, Bernardina Bartolome, and sole remaining beneficiary filed a claim for death
benefits. The SSS Compensation Commission denied their claims holding that
Bernardina cannot qualify as John’s secondary beneficiary because she cannot be
considered a legitimate parent of John having given up the latter for adoption to Cornelio
Colcol which in effect divested her of the status as the legitimate parent of the accused.
The Court reversed the decision of the Compensation Commission ruling that
Bernardina’s dependence on John can be established from documentary evidence
such as records showing that they live in the same address and in naming
Bartolome as one of his beneficiaries in his SSS application.
● Petronilo Davac contracted two marriages. The first with Lourdes Tuplano and the
second with Candelaria Davac. He designated Candelaria as his beneficiary and
indicated his relationship to her as that of a wife. When Petronilo died, both filed a claim
with the SSS. The Court awarded the benefits to Candelaria as the designation made by
Petronila was valid since there was no showing that she knew of Petronilo’s previous
marriage to Lourdes. ​If there is a named beneficiary and the designation is not
invalid, it is not the heirs who are entitled to receive the benefits. It is only when
there is no designated beneficiaries or when the designation is void that the laws
of succession are applicable. *NOTE: It was also discussed in this case that the
benefits accruing from membership in the SSS do not form part of the properties
of the conjugal partnership of the covered member. The benefit receivable under
the Act is in the nature of a special privilege or an arrangement secured by the law
pursuant to the policy of the State to provide social security to the workingmen.*

NON-TRANSFERABILITY OF BENEFITS
● The SSS shall promptly pay the benefits provided for in the law to such persons as may
be entitled thereto in accordance with the provisions of the Social Security Act of 2018.
● Benefits payable under the law are not transferable and no power of attorney or other
document executed by those entitled thereto in favor of any agent, attorney, or any other
person for the collection thereof on their behalf shall be recognized.
● The beneficiary who is a national of a foreign country which does not extend benefits to
a Filipino residing in the Republic of the Philippines, or which is not recognized by the
Republic of the Philippines, shall not be entitled to receive any benefit under the Social
Security Act.
 ● If the recipient of the benefits is a minor or a person incapable of administering his/her
own affairs, the Commission shall appoint a representative under such terms and
conditions as it may deem proper. ​Provided that such appointment shall not be
necessary in case the recipient is under the custody of or living with the parents or
spouse of the SSS member, in which case, the benefits shall be paid to such parent or
spouse.

ARE SSS PREMIUMS TAXABLE?

● In the case of ​CMS Estate vs Social Security Commission,​ the taxing power of the State
is exercised for the purpose of raising revenues. However, under our Social Security
Law, the emphasis is more on the promotion of the general welfare. The Act is not part
of our Internal Revenue Code nor are the contributions and premiums therein dealt with
and provided for, collectible by the Bureau of Internal Revenue. The funds contributed to
the System belong to the members who will receive benefits, as a matter of right,
whenever the hazards provided by the law occur.

MONTHLY PENSION:

The monthly pension shall be the highest of the three:

● 300 PHP + 20%(AMSC) + 2%(AMSC) x (CYS - 10)
● 40% x AMSC
● Minimum Monthly Pension:
○ 1000 PHP
○ For Retirement:
■ At least 10 CYS - 1,200 PHP
■ At least 20 CYS - 2,400 PHP
○ For Death/Disability Benefit:
■ Less than 10 CYS - 1,000 PHP
■ At least 10 CYS - 1,200 PHP
■ At least 20 CYS - 2,400 PHP

Additional Benefit Allowance

● An additional benefit allowance of 1000 PHP shall be given to all retirement, death, and
disability pensioners receiving monthly pensions in or after January 2017.

Dependent’s Pension
● 10% of the monthly pension: or
● 250 PHP (whichever is higher)

BENEFITS UNDER THE SSS

1. Retirement Benefits
○ Either a monthly pension or lump sum granted to a member who can no longer
work due to old age.
○ ENTITLEMENT TO MONTHLY PENSION:
■ A member must have at least 120 monthly contributions prior to the
semester of retirement; and
● Had reached the age of 60 and is separated from employment or
has ceased to be self-employed, ​except:
○ In the case of an underground mine worker - 55 years old
(Effective March 13, 1998)
○ Underground or a surface mineworker - 50 years old
(Effective April 27, 2016)
● Is at least 65 years old, ​except:​
○ In the case of an underground mineworker or a surface
mineworker - 60 years old
○ In the case of racehorse jockey - 55 years old.
○ ADVANCE PENSION: An applicant for retirement benefit has the option to
receive the first eighteen months pension and additional benefit allowance, in
lump sum, discounted at a preferential rate of interest as may be determined by
the SSS and subject to the following conditions:
■ The option can only be exercised upon filing of initial retirement claim;
■ The dependent’s pension and thirteenth month pension shall not be
included in the advance 18-months pension; and
■ Should there be an increase in the monthly pension within the 18-month
period, the same shall also be subject to a discounted rate.
○ The payment of the regular monthly pension shall commence on the 19th month.
○ Lump Sum benefit is a one-time payment granted to a covered member who has
reached the required retirement age and who does not qualify for full pension
benefit under the Social Security Act of 2018. The amount of benefit is equivalent
to the total contributions paid by the member and/or on his/her behalf.
○ A separated member who has paid less than 120 monthly contributions has the
option to continue paying his/her contributions as a voluntary-paying member to
complete the required 120 monthly contributions to qualify for a full pension
benefit.
○ SUSPENSION OF MONTHLY BENEFITS: The monthly benefits shall be
suspended:
■ upon the re-employment who is less than 65 years old; or
■ resumption of self-employment of a retired member who is less than 65
years old
■ upon failure to report or present oneself for interview or through other
verification processes upon notice by the SSS. The report shall be on the
birth month of the member.
○ DEATH OF A RETIRED MEMBER:
■ GENERAL RULE: Upon the death of a retired member, his/her primary
beneficiaries shall be entitled to receive 100% of the monthly pension.
■ EXCEPTIONS:
 ● If the retired member has no primary beneficiaries and dies within
60 months from the start of his/her monthly pension, his/her
secondary beneficiaries shall be entitled to a lump sum benefit
equivalent to the total monthly pensions corresponding to the
balance of the five-year guaranteed period, excluding the
dependent’s pension and additional benefit allowance.
● If there are no primary and secondary beneficiaries, the lump sum
payment in the amount specified shall form part of his.her estate
and shall be paid to his/her legal heirs in accordance with the law
on succession.
○ AMOUNT OF MONTHLY PENSION OF MEMBER WHO RETIRES AFTER THE
AGE OF 60:
■ If he/she has been separated from employment or ceased to be employed
- At the earliest time the member could have retired, plus all adjustments
thereto.
■ If he/she has retired - At the time the member actually retired.

2. Death Benefit
○ A cash benefit either in monthly pension or lump sum paid to the beneficiaries of
a deceased member.
○ ENTITLEMENT TO MONTHLY PENSION:
■ The member has paid at least 36 monthly contributions before the
semester of death, his/her primary beneficiaries shall be entitled to a
monthly pension.
○ LUMP SUM BENEFIT:
■ If the deceased member has paid at least 36 monthly contributions before
the semester of death and has no primary beneficiaries, his/her
secondary beneficiaries shall be entitled to a lump sum benefit equivalent
to 36 times the monthly pension.
■ If the deceased member has paid less than 36 monthly contributions
before the semester of death, his/her primary beneficiaries or in the
absence thereof, the secondary beneficiaries shall be entitled to a lump
sum amount equivalent to the higher of the following:
● The monthly pension times the number of monthly contributions
paid prior to the semester of death; or
● 12 times the monthly pension
■ SUSPENSION OF MONTHLY BENEFITS: The monthly benefits of a
primary beneficiary who, upon notice by the SSS, fails to report or present
oneself for interview or for other verification processes shall be
suspended.
3. Permanent Disability Benefit
○ A cash benefit granted to a member who becomes permanently disabled either
partially or totally.
 ○ ENTITLEMENT TO MONTHLY PENSION:
■ The disabled member is entitled to a monthly pension if he/she has paid
at least 36 monthly contributions prior to the semester of disability.
■ In case of permanent partial disability, the monthly pension benefit shall
be given in a lump sum if it is payable for less than 12 months.
○ LUMP SUM BENEFIT: For members who have not met the required 36 monthly
contributions prior to the semester of disability, the lump sum disability benefit is
granted.
■ For permanent total disability, the lump sum disability benefit shall be the
higher of:
● The monthly pension times the number of monthly contributions
paid to the SSS
● 12 times the monthly pension.
■ For permanent partial disability, the benefit shall be the percentage of the
lump sum benefit with due regard to the degree of disability as the
Commission may determine.
○ SUSPENSION OF MONTHLY BENEFITS:
■ Re-employment or resumption of self-employment;
■ Recovery from permanent total disability; or
■ Failure to report or present oneself for examination at least once a year
upon notice by the SSS.
○ PRESCRIPTIVE PERIOD: Within 10 years from the date of occurrence of
disability.
4. Funeral Benefit
○ It is intended to help defray the cost of funeral expenses upon the death of a
member.
○ AMOUNT: PHP 20,000 - PHP 40,000
5. Sickness Benefit
○ A daily cash allowance paid:
■ by the ​employer​ to the member who is unable to work due to sickness or
injuty for each day of compensable confinement or a fraction thereof.
■ by the ​SSS ​if such person is unemployed or is self-employed, OFW,
voluntary member.
○ ENTITLEMENT TO SICKNESS BENEFITS:
■ Has paid at least 3 monthly contributions within the 12 month period
immediately before the semester of sickness or injury.
■ Was confined for at least four days either in a hospital or elsewhere as
defined by the SSS
■ Has notified the employer (if employed) or the SSS (if self-employed or
voluntary member).
■ Has used up all current company sick leave with pay for the current year.
○ SICKNESS NOTIFICATION REQUIREMENT BY THE EMPLOYEE:
■ For hospital confinement - Notification to employer is not necessary.
 ■ For confinement elsewhere - Within 5 calendar days after the start of
confinement
■ While working in the premises of the employer - Notification is not
necessary.
○ SICKNESS NOTIFICATION REQUIREMENT BY THE EMPLOYER:
■ For hospital confinement - Within 1 year from the date of discharge.
■ For confinement elsewhere - Within 5 calendar days after receipt of
employee’s notice.
■ While working in the premises of the employer - Within 5 calendar days
after onset of sickness/injury.
■ GUIDELINES:
● A member may be granted a maximum sickness benefit of 120
days in one calendar year.
● The sickness benefit shall be paid for not more than 240 days on
account of the same illness or confinement.
● The compensable confinement shall begin on the first day of
sickness and the payment of such allowances shall be made by
the employer every regular payday or on the fifteenth day and last
day of each month.
6. Unemployment Insurance or Involuntary Separation Benefits
○ A monthly cash payment equivalent to 50% of the Average Monthly Credit of the
Average Monthly Salary Credit for a maximum of two months.
○ ENTITLEMENT TO THE BENEFITS:
■ Not over 60 years old at the time of involuntary separation.
■ Has paid at least 36 monthly contributions, 12 months of which should be
in the 18 month period immediately preceding the unemployment or
involuntary separation.
■ Involuntarily separated from employment provided that such separation
did not arise from fault or negligence of the employee.
○ LIMITATIONS: Can only be claimed once every three years starting from the
date of involuntary separation or unemployment.
○ PRESCRIPTIVE PERIOD: Within one year from the date of separation or
unemployment.
7. Maternity Leave Benefits
○ A daily cash allowance granted to female members who gave birth via normal
delivery or caesarean section or suffered miscarraige, regardless of the civil
status or legitimacy of the child.
○ ENTITLEMENT TO THE BENEFITS:
■ Has paid at least three monthly contributions in the 12 month period
immediately preceding the semester of childbirth or miscarriage.
■ Has notified her employer of the pregnancy and expected childbirth,
which notice shall be transmitted to the SSS in accordance with the rules
and regulations issued by the Commission; and
 ■If the female member is unemployed/self-employed/voluntary member,
notice shall be given to the SSS.
○ MANNER OF PAYMENT:
■ The full payment of maternity benefits shall be advanced by the employer
within thirty days from the filing of the maternity leave application.
■ The SSS shall immediately reimburse the employer of 100% of the
amount of maternity benefits advanced to the employee upon receipt of
satisfactory proof of such payment and legality thereof.
■ The SSS shall directly pay the female member who is
unemployed/self-employed/voluntary member

SETTLEMENT OF DISPUTES:
● The Commission has jurisdiction over any dispute arising under the Social Security Act
of 2018 with respect to coverage, benefits, contributions, and penalties, or any other
matter related thereto.
● In ​SSS vs Vda. De Bailon​, the Court affirmed the decision of the appellate court and
ruled that the SSS acted beyond its powers when it maintained that the second marriage
contracted by Bailon with Teresita Jarque was bigamous thus, it was Alice who should
be the beneficiary of Bailon’s benefits. In this case, the then CFI of Sorsogon granted the
petition for the presumptive death of Alice which prompted to the second marriage of
Bailon. ​The Supreme Court ruled that the SSS does not have the authority to
question or to reverse the findings of the courts.
● In ​SSS vs Atlantic Gulf and Pacific,​ SSS offered the respondents two ways to settle its
deficiencies and the latter chose dacion en pago consisting of a lot owned in Batangas.
The SSS questions the jurisdiction of the courts arguing that all settlements of disputes
under the Social Security Act is within the jurisdiction of its Commission. ​The Supreme
Court disagreed and ruled in favor of the respondents maintaining that the action
filed by the respondents was to enforce the Dacion en Pago. The issue is not in
any way related to the payment of premiums to the SSS. The Court held that the
jurisdiction of such is lodged with the courts and not in the Commission.

REPUBLIC 11210 or 105-DAY EXPANDED MATERNITY LEAVE ACT

COVERAGE:
● Maternity Leave for Female Workers in the Public Sector
● Maternity Leave for Female Workers in the Private Sector
● Maternity Leave for Women in the Informal Economy
● Maternity Leave for Female National Athletes
● Voluntary Members of the SSS

FEMALE WORKERS IN THE PUBLIC SECTOR

● Any pregnant female worker in the government service, regardless of employment
status, in National Government Agencies, Local Government Units, Government-Owners
 or -Controlled Corporations or State Universities and Colleges, shall be granted a
maternity leave of 105 days with full pay regardless if the delivery was normal or
cesarean.
● If the employee qualifies as a solo-parent, the employee shall be paid an additional
maternity benefit of 15 days.
● An additional maternity leave of 30 days, without pay, can be availed of, at the option of
the female worker provided that the head of the agency shall be given due notice, in
writing, at least 45 days before the end of the maternity leave.
● Maternity leave for 60 days, with full pay, shall be granted for miscarriage or emergency
termination of pregnancy.
● The female worker shall be granted maternity leave regardless of her civil status.

FEMALE WORKERS IN THE PRIVATE SECTOR

● Any female worker in the private sector shall be granted a maternity leave of 105 days
with full pay, regardless of whether she gave birth via caesarian section or natural
delivery, while maternity leave of 60 days with full pay shall be granted for miscarriage or
emergency termination of pregnancy.
● A female SSS member who has paid at least three monthly contributions in the twelve
month period immediately preceding the semester of her childbirth, miscarriage, or
emergency termination of prenancy shall be paid her daily maternity benefit which shall
be computed based on her average monthly salary credit for 105 days subject to the
following conditions:
○ The female worker shall have ​notified​ her employer of her pregnancy and the
probable date of her childbirth, which notice shall be transmitted to the SSS in
accordance with the rules and regulations it may provide.
○ That the ​full payment shall be advanced​ by the employer ​within 30 days from
the filing of the maternity leave application​.
○ That ​payment of daily maternity benefits shall be a bar to the recovery of
sickness benefits, ​provided under RA No. 11161, as amended, for the period
for which daily maternity benefits have been received.
○ That the ​SSS shall immediately reimburse the employer of 100% of the
amount of maternity benefits advanced to the female worker by the
employer ​upon receipt of satisfactory and legal proof of duch payment; and
○ That if a female worker should give birth or suffer a miscarriage or emergency
termination of pregnancy without the required contributions having been remitted
for her by the employer to the SSS, or without the latter having been previously
notified by the employer of the time of the pregnancy, the employer shall pay to
the SSS damages equivalent to the benefits which said female member would
otherwise have been entitled to.
● If the employee qualifies as a solo-parent, the employee shall be paid an additional
maternity benefit of 15 days.
 ● An additional maternity leave of 30 days, without pay, can be availed of, at the option of
the female worker provided that the head of the agency shall be given due notice, in
writing, at least 45 days before the end of the maternity leave.
● Workers availing of the maternity leave period and benefits must receive their full pay.
The following are exempted from paying differential pay:
○ Those operating in distressed establishments.
■ Sole proprietorship and partnership net loss of 20%
■ Corporation or cooperative net loss of 25%
■ Band and quasi-banks under receivership.
○ Those in retail/service establishments and other enterprises employing not more
than ten workers.
○ Those considered as micro-business enterprises and engaged in the production,
processing, or manufacturing of products or commodities, including
agro-processing, trading, and services, whose total assets are not more than
PHP 3,000,000.
○ Those who are already providing similar or more than the benefits provided.
● The female worker shall be granted maternity leave regardless of her civil status.

FEMALE WORKERS IN THE INFORMAL ECONOMY AND VOLUNTARY MEMBERS OF THE

SSS
● Workers in the informal economy include the self-employed, occasionally or personally
hired, sub-contracted, paid and unpaid family workers in household, incorporated and
unincorporated enterprises, including home workers, microentrepreneurs, and operators
of sari-sari stores.
● Voluntary members of the SSS include:
○ Non-working spouse or a spouse of a member who devotes full time to managing
the household and family affairs, but does not engage in other vocation or
employment which is subject to compulsory or mandatory coverage.
○ An OFW upon the termination of his/her employment overseas.
■ Any person who is to be engaged, is engaged, or has been engaged in a
remunerated activity (been promised or assured employment overseas) in
a State of which he/she is not a citizen, or on board a vessel navigating
the foreign seas other than a government ship used for military or
non-commercial purposes, or on an installation located offshore or on the
high seas.
■ An OFW is entitled to maternity benefits if she has been promised or
assured employment overseas. The promise of employment includes:
issuance of a POEA contract where the person is just waiting for
employment.
■ This does not apply, however, to sea-farers whose contract commences
upon actual employment.
○ A covered employee who was separated from employment who continues to pay
his/her contributions.
 ○ A self-employed member who realizes no income in any given month who
continues to pay his/her contributions.
● Maternity benefits shall cover all married and unmarried women, including female
workers in the informal economy. Female workers in the informal economy are entitled to
maternity leave benefits if they have remitted to the SSS at least three monthly
contributions in the twelve month period immediately preceding the semester of her
childbirth, miscarriage, and emergency termination of pregnancy.

MATERNITY LEAVE FOR FEMALE NATIONAL ATHLETES:

● In the event a national athlete becomes pregnant, she will be referred to the team
physician or an accredited physician of the Philippine Sports Commission or an
obstetrician-gynecologist to determine her fitness to continue training.
● Upon medical advice, she shall go on maternity leave until cleared to return to training.
She shall continue receiving allowance and be entitled to the same benefits while on
maternity leave prior to childbirth and up to six months after, unless she can resume
sooner as advised by her physician, in which case, she will be entitled to the allowance
and benefits she had prior to pregnancy.
● A female national athlete employed in the public sector shall not receive double
compensation or benefits.

WHEN IS PAYMENT MADE:

● Full payment of maternity leave shall be advanced by the employer within 30 days from
the filing of the maternity leave application.
○ Immediately from the notice of delivery
○ Filing of the application depends on the company of the female worker.

ALLOCATION OF MATERNITY LEAVE CREDITS

● Any female worker entitled to maternity leave benefits as provided for herein may, at her
option, allocate up to seven days of said benefits:
○ To the ​child’s father​, whether or not the same is married to the female worker.
○ In the death, absence, or incapacity of the former, the benefit may be allocated to
an ​alternate caregiver who may be a relative within the fourth degree of
consanguinity or the current partner of the female worker sharing the same
household​, upon the election of the mother taking into account the best interests
of the child.
○ The written notice thereof is provided to the employers of the female worker and
alternate caregiver.
○ In the event the beneficiary female worker dies or is permanently incapacitated,
the balance of her maternity leave benefits shall accrue to the father of the child
or to a qualified caregiver. Subject to the following conditions:
■ That the maternity benefits have not been commuted to cash, if
applicable.
 ■
That a certified true copy of the death certificate or medical certificate or
abstract is provided to the employers of both the female worker and the
child's father or alternate caregiver.
■ NOTE: In case the maternity leave benefts of the deceased or
permanently incapacitated female worker have already been paid to the
latter in full, the child's father or alternate caregiver shall be entitled to
enjoy the remaining unexpired leave credits of the female worker, if there
be any, without pay
● RATIONALE: To help the female worker for the rearing of the child.

MATERNITY BENEFIT IN CASE OF TERMINATION:

● FULL PAY - If the childbirth, miscarriage, or emergency termination of pregnancy occurs
not more than 15 calendar days after the termination of an employee’s service.
● FULL PAY EQUIVALENT TO 105 DAYS - If the female employee was illegally
terminated.

MATERNITY BENEFITS IN CASE OF MULTIPLE CHILDBIRTHS:

● In case of the overlapping of two (2) maternity benefit claims, the female member shall
be granted maternity benefits for the two contingencies in a consecutive manner.
However, the amount of benefit corresponding to the period where there is an overlap
shall be deducted from the current maternity benefit claim; and
● The female member shall be paid only one maternity benefit, regardless of the number
of offspring per childbirth/delivery.

PATERNITY LEAVE:
● Every married male employees in the private and public sectors shall be entitled to a
paternity leave of seven days with full pay for the first four deliveries of the legitimate
spouse with whom he is cohabiting.
● REQUISITES:
○ Married male employee
○ First four deliveries of the legitimate spouse
○ They must be cohabiting/living together

SOLO-PARENTS’ WELFARE ACT OF 2000

● A solo parent is any individual who falls under any of the following categories:
○ A woman who gives birth as a result of rape and other crimes against chastity
even without final conviction of the offender if the mother keeps and raises the
child.
○ Parent left solo or alone with the responsibility of parenthood due to the death of
spouse.
○ Parent left solo or alone with the responsibility of parenthood while the spouse is
detained or is serving a sentence for a criminal conviction for at least one year.
 ○ Parent left solo or alone with the responsibility of parenthood due to physical
and/or mental incapacity of sooyse as certified by a public medical practitioner.
○ Parent left solo or alone with the responsibility of parenthood due to legal
separation or de facto separation from spouse for at least one year, as long as
he/she is entrusted with the custody of the children.
○ Parent left solo or alone with the responsibility of parenthood due to declaration
of nullity or annulment of marriage as decreed by a court or by a church as long
as he/she is entrusted with the custody of the children
○ Parent left solo or alone with the responsibility of parenthood due to
abandonment of spouse for at least one year.
○ Unmarried mother/father who has preferred to keep and rear her/his children
instead of having others care for them or give them up to a welfare institution
○ Any other person who solely provides parental care and support to a child or
children.
● TERMINATION: ​A change in the status or circumstance of the parent claiming benefits
under this Act shall terminate his/her eligibility for these benefits.
● ENTITLEMENT FOR THE LEAVE: ​In addition to leave privileges under existing laws,
parental leave of not more than seven working days every year shall be granted to any
solo parent employees:
○ Who has rendered service for at least one year, whether continuous or unbroken.
○ Who has notified the employer within a reasonable time period.
○ Who has presented his Solo Parent Identification Card to his/her employer.
● INSTANCES:
○ Attend to the personal milestone of the child.
○ Perform parental obligation
○ Attend medical or spiritual needs of the child
○ Any other instances where physical presence is required.
● OTHER BENEFITS GRANTED BY SOLO PARENTS’ WELFARE ACT:
○ Flexible Working Schedule
○ Parental Leave
○ Non-Discrimination
○ Housing Benefit
○ Educational and Medical Assistance

MAGNA CARTA FOR WOMEN ​or S ​ PECIAL LEAVE FOR WOMEN OR GYNECOLOGICAL
LEAVE
● It is a special leave granted to women, female workers, equivalent to two months with full
pay from the employer following surgery caused by gynecological disorders.
● ENTITLEMENT FOR THE LEAVE:
○ A woman working either in the private or public sector, regardless of civil status
and age.
○ Worked under her current employer for at least six aggregate months within the
said 12 months following the surgery.
 ○ Has undergone surgery to treat a gynecological disorder (certified by a
competent gynecological physician)
○ Has filed a Magna Carta of Women Special Leave for the surgery with her
employer at a reasonable time before undergoing surgery. If emergency, she
must have notified the employer within a reasonable time and have filed a leave
after surgery or appropriate recuperation period.
● Non-cumulative and non-convertible to cash.

REPUBLIC ACT NO. 8291 ​or ​GOVERNMENT SERVICE INSURANCE SYSTEM

● BOARD OF TRUSTEES​:
○ The corporate powers and functions of the GSIS shall be vested in and exercised
by the Board of Trustees.
○ COMPOSITION:
■ President
■ General Manager of the GSIS
■ Eight appointive members:
● One of whom is either the President of the Philippine Public
School Teachers Association (PPSTA) or the President
Association of School Superintendents (PASS).
● Two shall represent the leading organizations or associations of
government employees/retirees.
● Another four from the banking, finance, investment, and insurance
sectors,
● One recognized member of the legal profession who at the time of
appointment is also a member of the GSIS.
○ The Trustees shall elect from among themselves a Chairman while the President
and General Manager of the GSIS shall be automatically be the vice-chairman.
○ TERMS:
■ Trustees - Six years without reappointment
■ President and General Manager - Upon separation or termination from
employment.
○ The chairman of the Commission on Audit shall serve as the ex-officio auditor of
the GSIS.
○ The Government Corporate Counsel shall be the legal adviser and consultant of
the GSIS, but the GSIS may assign cases to the Office of the Government
Corporate Counsel.

MEMBERSHIP:
● ACCORDING TO TYPE:
○ REGULAR MEMBERS
 ■ Those employees of the national government, its branches, agencies, or
instrumentalities, including Government -owned or -controlled
corporations and Government Financial Institutions with original charters.
○ SPECIAL MEMBERS
■ Constitutional Commissioners, members of the judiciary including those
with equivalent ranks, who are required by law to remit regular monthly
contributions for life insurance policies to the GSIS in order to answer for
their life insurance benefits.
● ACCORDING TO STATUS:
○ ACTIVE MEMBER
■ Refers to a member of the GSIS, whether regular or special, who is still in
the government service and together with the government agency to
which he belongs, is required to pay the monthly contribution.
○ INACTIVE MEMBER
■ A member who is separated from the service either by resignation,
retirement, disability, dismissal from the service, retrenchment, or who is
deemed retired from the service under this act.
● COMPULSORY MEMBERS OF THE GSIS:
○ All government personnel, whether elective or appointive, irrespective of the
status of appointment, provided they are receiving fixed monthly compensation
and have not reached the mandatory retirement age of 65 years, are
compulsorily covered as members of the GSIS and shall be required to pay
contributions.
○ An elective official who at the time of election to public office is below 65 years of
age and will be 65 years or more at the end of his term of office, including the
period/s of his re-election to public office thereafter without interruption.
○ Appointive officials who, before reaching the mandatory age of 65, are appointed
to government position by the President of the Republic of the Philippines and
shall remain in government service at beyond 65.
○ Contractual employees including casuals and other employees with an
employee-government agency relationship are also compulsorily covered,
provided they are receiving fixed monthly compensation and rendering the
required number of working hours for the month.
● EXCLUSION FROM COMPULSORY COVERAGE:
○ Uniformed personnel of the AFP, PNP, BJMP, and BFP.
○ Barangay and Sanggunian Officials who are not receiving fixed monthly
compensation.
○ Contractual Employees who are not receiving fixed monthly compensation.
○ Employees who do not have monthly regular hours of work and are not receiving
fixed monthly compensation.
● RATIONALE FOR EXCLUSION: No employer-employee relationship or separate
retirement laws.
 ● EFFECTIVITY OF MEMBERSHIP: It shall be the date of the member’s assumption to
duty or his on his original appointment or election to public office. In other words, it is
from the first time the person entered into government service.
● Once you have become a member of the GSIS, you are a member for life.`

CONTRIBUTION:
● RATE OF CONTRIBUTION:
○ For all Employers or Employees (except for the members of the Judiciary and
Constitutional Commissions):
MONTHLY EMPLOYEE’S SHARE EMPLOYER’S SHARE
COMPENSATION

PHP 10,000 and below 9%e 12% of Monthly

Compensation

Over PHP 10,000 9% of Monthly 12% of Monthly

Compensation + 2% of Compensation
(MC-1000)

○ For members of the Judiciary and Constitutional Commissioners:

MONTHLY EMPLOYEE’S SHARE EMPLOYER’S SHARE

COMPENSATION

Regardless of Amount 3% 3%

● REMITTANCE OF CONTRIBUTIONS:
○ Each employer shall remit directly to the GSIS the employees’ and employers;
contributions within the first ten days of the calendar month following the month
to which the contributions apply.
○ The remittance by the employer of the contribution to the GSIS shall take priority
over and above the payment of any and all obligations, except salaries and
wages of its employees.
○ In case of delayed remittance, a 2% per month simple interest shall be due to the
employer.
○ In case of non-remittance, all loan privileges of all the members of the affected
agencies will be suspended and they shall be disqualified to receive the yearly
dividends.
● COMPUTATION OF CONTRIBUTIONS
○ COMPUTATION OF AMC:
 ■ If YOS is less than 36 months:

■ If YOS is 36 months of more:

○ COMPUTATION OF RAMC:

RAMC = AMC + PHP 700

○ COMPUTATION OF BMP:
■ If YOS is 15 years or less:
BMP = 37.5% x RAMC
■ If YOS is more than 15 years:
BMP = (37.5% x RAMC) + (2.5% x RAMC)
x (YOS-15)
■ NOTE: The BMP shall not exceed 90% of the AMC.

● MINIMUM BASIC MONTHLY PENSION:

○ PHP 1300:
■ Existing old-age/retirement and disability pensioners;
■ Prospective retirees and disability pensioners with less than 20 years of
service; and
■ Those qualified for retirement or disability pension benefits by virtue of RA
No. 7699
○ PHP 2400:
■ For members who retired or are disabled upon or after the effectivity of
this Act with at least 20 years of service.
● BENEFITS:
○ Compulsory Life Insurance
■ LIFE ENDOWMENT POLICY (LEP)
● COVERAGE: An insurance policy issued to members prior to
August 1, 2003.
● BENEFITS:
 ○ Maturity Benefits
○ Cash Surrender Value
○ Death Benefit
○ Accidental Benefit
○ Cash Dividend
■ ENHANCED LIFE POLICY (ELP)
● COVERAGE:
○ Regular Members who entered the service after July 31,
2003.
○ Regular Members who LEP policies matured on or after
July 31, 2003.
○ Regular Members under LEP who opted/will opt to convert
their existing LEP into ELP.
○ Regular members who LEP policy lapsed by reason of non
payment of insurance premiums but who, after July 31,
2003, have started to remit the premiums due for
compulsory life insurance coverage.
● BENEFITS:
○ Death Benefit
○ Termination Value
○ Cash Dividend
○ Retirement Benefit
■ The retirement benefits consists of a monthly pension which is computed
based on years of creditable service and AMC for the last three years.
■ Five Retirement Laws to choose from:
● REPUBLIC ACT NO. 8291 or GSIS ACT OF 1997
○ ELIGIBILITY:
■ Must have rendered at least 15 years of service
and must be at least 60 years old upon retirement;
and
■ Must not be a permanent total disability
○ RETIREMENT OPTIONS:
■ Lump Sum
● Equivalent to 60-month or 5 year BMP
payable at the time of retirement.
■ Cash Payment
● Equivalent to 18-month BMP payable upon
retirement.
● PRESIDENTIAL DECREE 1146 or PENSION OR CASH
PAYMENT
○ ELIGIBILITY:
■ Must have rendered at least 15 years of service
and must at least be 60 years old upon retirement.
 ■The date of retirement or separation is prior to June
24, 1997.
○ BENEFITS:
■ PENSION: For pension payment, there are two
options:
● OPTION 1: ANNUITY - The monthly
pension paid annually for five years, after
which, BMP shall commence.
● OPTION 2: FIVE-YEAR LUMP SUM - The
amount to be received within the five-year
guaranteed period.
● RAMC = AMC + PHP 140
■ CASH PAYMENT:
● If at least 60 years old and had at least
three years but less than 15 years of
government service.
● 100% of AMC x YOS
● REPUBLIC ACT NO. 1616 or GRATUITY BENEFIT
○ ELIGIBILITY:
■ Must have entered government service before June
1, 1977
■ Must have rendered at least 20 years of service
regardless of age and employment status; and
■ The last three years of service prior to retirement
must be continuous (except in cases of death,
disability, abolition or phase-out of position due to
reorganization)
○ BENEFITS:
■ Gratuity Pay or Benefit
■ Refund of retirement premiums
● REPUBLIC ACT NO. 660 or MAGIC 87
○ ELIGIBILITY:
■ Must have entered government service before June
1, 1977
■ The appointment status must be permanent.
■ The last three years of service prior to retirement
must be continuous (except in cases of death,
disability, abolition or phase-out of position due to
reorganization)
■ Must be at least 52 years old and meet the
corresponding years of service requirement for
eligibility.
 ○ The age when retired plus YOS should always be equal to
87.
○ BENEFITS:
■ 63 and above
● 5-year lump sum.
■ Below 63 but at least 60
● Initial 3-year lump sum payable upon
retirement; and
● Subsequent two year balance payable at
age 62
■ Below 60
● Monthly pension paid annually - with
discount
● REPUBLIC ACT NO. 7699 or THE PORTABILITY LAW
○ ELIGIBILITY:
■ Must not be entitled for pension benefit from either
or both the GSIS or SSS because the retiree was
unable to meet the required periods of service or
number of contributions; and
■ Must have less than 120 months of SSS
contributions or less than 180 months of creditable
government service at the time of retirement.
● Survivorship Benefit
○ In the event of the death of the member, the surviving spouse may file for basic
survivorship pension which is:
■ equivalent to 50% of the BMP the member is entitled to.
■ cash payment equivalent to 100% of the member’s average monthly
compensation for each year of service he paid contributions, but not less
than PHP 12,000.
○ Payment of BSP shall be discontinued in case the spouse remarries, cohabits, or
engages in a common-law relationship.
○ The surviving children below 18 years old shall also be entitled to receive
dependent’s pension equivalent to 10% of the BMP and payable until they reach
the age of majority. The grant of DP covers only five children, counted from the
youngest and without substitution..
● Funeral Benefit
○ Intended to help defray the expenses incidental to the burial of the deceased
member, pensioner, or retiree under any of the five retirement laws.
○ PAID TO:
■ The surviving spouse;
■ The legitimate child who spent for the funeral services; or
■ Any other person who can show incontrovertible proof of having borne the
funeral expenses.
● Separation Benefit
○ All employees who have not reached the age of retirement but have been
separated from service.
○ FORM:
■ Cash; or
■ Cash Payment and Pension
○ ELIGIBILITY: For those who
■ Rendered service for at least 3 years but less than 15 years and below 60
years of age
● The formula is 100% of Average Monthly Compensation for each
year of service but not less than PHP 12,000 payable upon
reaching 60.
■ If the member rendered service for at least 15 years:
● Cash payment equivalent to 18 times his basic monthly pension at
the time of separation AND monthly pension for life payable at the
age of 60.
● Unemployment Benefit
○ Separation which is involuntary by reason of abolition of office or reorganization
of office.
○ MINIMUM CONTRIBUTION REQUIRED: At least 1 year of contribution
○ Paid through the form of monthly cash payment which is equivalent to 50% of
average monthly compensation
○ Depends on the duration of the contribution made.
■ 1 year but less than 3 years -2 months
■ 3 or more but less than 6 - 3 months
■ 6 or more but less than 9 years - 4 months
■ 9 or more but less than 11 years - 5 months
■ 11 or more but less than 15 years - 6 months
● Disability Benefit
○ A benefit given to a member who suffers loss or impairment of the normal
functions of the physical or mental faculties of a member temporarily or
permanently which prevents him to perform his duties with his current occupation
resulting to loss of income. It is a replacement of the supposed income that he is
about to earn in his employment.
○ KINDS OF DISABILITY:
■ Permanent Total
■ Permanent Partial
■ Temporary Total Disability