SOCIAL SECURITY SYSTEM

Social Security System

is a state-run, social insurance program in
the Philippines to workers in the private,
professional, and informal sectors. SSS is
established by virtue of Republic Act No.1161,
better known as Social Security Act of 1954.
This law was later amended by Republic Act
No. 8282 in 1997.
 History
It was former President Manuel A. Roxas who
first proposed a bill in Congress, seeking the
establishment of a social security system for wage
earners and low-salaried employees. This he said
on January 26, 1948, during his State of the
Nation Address.
In 1954, Rep. Floro Crisologo, Senators Cipriano
Primicias and Manuel Briones introduced bills to
the Congress that were eventually enacted as
Republic Act 1161, or the Social Security Act of
1954. The law was also called the Social Security
Law (SS Law)
 However, its implementation was delayed by
objections made by business and labor
groups. It was only in 1957, that amendatory
bills were presented in Congress creating the
RA 1792, amending the original Social Security
Act.
On September 1, 1957, the Social Security Act
of 1954 was finally implemented adopting the
social insurance approach to social security,
covering the employed segment of the labor
force in the private sector.
 In 1980, some groups of self-employed persons
were also required to contribute to the social
security fund from which benefits are paid upon
the occurrence of a contingency provided by law.
In 1992, self-employed farmers and fisherfolks
were also included in the program. In 1993,
household helpers who earn at least 1,000 were
included in the compulsory coverage of
employees and in 1995, workers in the informal
sector earning at least 1,000 a month, like the
ambulant vendors and watch-your-car boys, were
also covered by SSS.
 In 1995, upon the enactment of Republic Act
No. 7875 or the National Health Insurance Act
of 1995, SSS, which used to administer
Medicare program for hospitalization and
other medical needs of private sector workers,
transferred the administration to Philippine
Health Insurance Corporation (PhilHealth) for
an integrated and comprehensive approach to
health development.
 On May 1, 1997, President Fidel V. Ramos,
signed RA 8282, Social Security Act of 1997, an
act which further strengthen the SSS. This act
provides better benefit packages, expansion of
coverage, flexibility in investments, stiffer
penalties for violators of the law, condonation
of penalties of delinquent employers, and the
establishment of a voluntary provident fund
for members.
In 2017, President Rodrigo Duterte approved
the SSS pension increase of Php 1,000 for
more than 2.2 million SSS pensioners.
 Social Security Act of 1997
R. A. 8282
AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY
SYSTEM THEREBY AMENDING FOR THIS PURPOSE,
REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE
KNOWN AS THE SOCIAL SECURITY LAW.
 Dependents (SEC. 8e)
"(1) The legal spouse entitled by law to receive
support from the member;
"(2) The legitimate, legitimated or legally
adopted, and illegitimate child who is:
unmarried
not gainfully employed, and
has not reached twenty-one (21) years of age, or
if over twenty-one (21) years of age, he is congenitally
or while still a minor has been permanently
incapacitated and incapable of self-support, physically
or mentally; and
"(3) The parent who is receiving regular support
from the member.
 Beneficiaries (SEC. 8k)
Primary Beneficiaries
The 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 member:
Provided, That the dependent illegitimate children shall be entitled
to fifty percent (50%) of the share of the legitimate, legitimated or
legally adopted children:
Provided, further, That in the absence of the dependent legitimate,
legitimated children of the member, his/her dependent illegitimate
children shall be entitled to one hundred percent (100%) of the
benefits.
Secondary Beneficiaries
In their absence, the dependent parents who shall be the
secondary beneficiaries of the member.
In the absence of all the foregoing, any other person
designated by the member as his/her secondary beneficiary.
 Coverage (SEC. 9)
(a) Coverage in the SSS shall be
compulsory upon all employees not
over sixty (60) years of age and their
employers:
Provided, That in the case of domestic helpers, their
monthly income shall not be less than One thousand
pesos (P1,000.00) a month:
Provided, further, That any benefit already earned by
the employees under private benefit plans existing at
the time of the approval of this Act shall not be
discontinued, reduced or otherwise impaired:
 Provided, further, That private plans which are existing
and in force at the time of compulsory coverage shall
be integrated with the plan of the SSS in such a way
where the employers contribution to his private plan
is more than that required of him in this Act, he shall
pay to the SSS only the contribution required of him
and he shall continue his contribution to such private
plan less his contribution to the SSS so that the
employers total contribution to his benefit plan and
to the SSS shall be the same as his contribution to his
private benefit plan before the compulsory coverage:
Provided, further, That any changes, adjustments,
modifications, eliminations or improvements in the
benefits to be available under the remaining private
plan, which may be necessary to adopt by reason of
the reduced contributions thereto as a result of the
integration, shall be subject to agreements between
the employers and employees concerned:
 Provided, further, That the private benefit plan
which the employer shall continue for his
employees shall remain under the employers
management and control unless there is an
existing agreement to the contrary:
Provided, finally, That nothing in this Act shall be
construed as a limitation on the right of employers
and employees to agree on and adopt benefits
which are over and above those provided under
this Act.
 "(b) Spouses who devote full time to
managing the household and family affairs,
unless they are also engaged in other vocation
or employment which is subject to mandatory
coverage, may be covered by the SSS on a
voluntary basis.
"(c) Filipinos recruited by foreign-based
employers for employment abroad may be
covered by the SSS on a voluntary basis.
 Compulsory Coverage of the Self-
Employed (SEC. 9-A)
1. All self-employed professionals;
2. Partners and single proprietors of businesses;
3. Actors and actresses, directors, scriptwriters
and news correspondents who do not fall within
the definition of the term "employee" in Section 8
(d) of this Act;
4. Professional athletes, coaches, trainers and
jockeys; and
5. Individual farmers and fishermen.
 Effective Date of Coverage
Compulsory 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
compulsory coverage of the self-employed
person shall take effect upon his
registration with the SSS. (SEC. 10)
Effect of Separation from Employment
When an employee under compulsory coverage
is separated from employment, his employers
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.
He may, however, continue to pay the total
contributions to maintain his right to full benefit.
(SEC. 11)
 Effect of Interruption of Business or
Professional Income
If the self-employed realizes no income in any
given month, he shall not be required to pay
contributions for that month. He may,
however, be allowed to continue paying
contributions under the same rules and
regulations applicable to a separated
employee member: Provided, That no
retroactive payment of contributions shall be
allowed other than as prescribed under
Section Twenty-two-A hereof. (SEC. 11-A)
 Benefits
Retirement Benefits
Monthly Pension
Death Benefits
Dependents Pension
Permanent Disability Benefits
Funeral Benefit
Sickness Benefit
Maternity Leave Benefit
 Monthly Pension (SEC. 12)
(a) A member who has paid at least one hundred
twenty (120) monthly contributions prior to the
semester of retirement and who: (1) has reached the
age of sixty (60) years and is already separated from
employment or has ceased to be self-employed; or
(2) has reached the age of sixty-five (65) years, shall
be entitled for as long as he lives to the monthly
pension. Provided,That he shall have the option to
receive his first eighteen (18) monthly pensions in
lump sum discounted at a preferential rate of
interest to be determined by the SSS.
 "(b) A covered member who is sixty (60) years old at
retirement and who does not qualify for pension
benefits under paragraph (a) above, shall be entitled
to a lump sum benefit equal to the total
contributions paid by him and on his
behalf: Provided, That he is separated from
employment and is not continuing payment of
contributions to the SSS on his own.
"(c) The monthly pension shall be suspended upon
the reemployment or resumption of self-
employment of a retired member who is less than
sixty-five (65) years old. He shall again be subject to
Section Eighteen and his employer to Section
Nineteen of this Act.
 "(d) Upon the death of the retired member, his primary
beneficiaries as of the date of his retirement shall be
entitled to receive the monthly pension: Provided, That if
he has no primary beneficiaries and he dies within sixty
(60) months from the start of his monthly pension, his
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 dependents pension.
"(e) The monthly pension of a member who retires after
reaching age sixty (60) shall be the higher of either: (1) the
monthly pension computed at the earliest time he could
have retired had he been separated from employment or
ceased to be self-employed plus all adjustments thereto;
or (2) the monthly pension computed at the time when he
actually retires.
 Dependents Pension
Where monthly pension is payable on account of
death, permanent total disability or retirement,
dependents pension equivalent to ten percent
(10%) of the monthly pension or Two hundred
fifty pesos (P250.00), whichever is higher, shall
also be paid for each dependent child conceived
on or before the date of the contingency but not
exceeding five (5), beginning with the youngest
and without substitution: Provided, That where
there are legitimate or illegitimate children, the
former shall be preferred. (SEC. 12-A)
 Death Benefits
Upon the death of a member who has paid at least
thirty-six (36) monthly contributions prior to the
semester of death, his primary beneficiaries shall
be entitled to the monthly pension: Provided, That
if he has no primary beneficiaries, his secondary
beneficiaries shall be entitled to a lump sum
benefit equivalent to thirty-six (36) times the
monthly pension. If he has not paid the required
thirty-six (36) monthly contributions, his primary
or secondary beneficiaries shall be entitled to a
lump sum benefit equivalent to the monthly
pension times the number of monthly
contributions paid to the SSS or twelve (12) times
the monthly pension, whichever is higher. (SEC. 13)
 Permanent Disability Benefits
- (a) Upon the permanent total disability of a member
who has paid at least thirty-six (36) monthly
contributions prior to the semester of disability, he
shall be entitled to the monthly
pension: Provided, That if he has not paid the required
thirty-six (36) monthly contributions, he shall be
entitled to a lump sum benefit equivalent to the
monthly pension times the number of monthly
contributions paid to the SSS or twelve (12) times the
monthly pension, whichever is higher. A member who
(1) has received a lump sum benefit; and (2) is
reemployed or has resumed self-employment not
earlier than one (1) year from the date of his disability
shall again be subject to compulsory coverage and shall
be considered a new member.
 "(b) The monthly pension and dependents pension
shall be suspended upon the reemployment or
resumption of self-employment or the recovery of the
disabled member from his permanent total disability or
his failure to present himself for examination at least
once a year upon notice by the SSS.
"(c) Upon the death of the permanent total disability
pensioner, his primary beneficiaries as of the date of
disability shall be entitled to receive the monthly
pension: Provided, That if he has no primary
beneficiaries and he dies within sixty (60) months from
the start of his monthly pension, his 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 dependents pension.
 "(e) If the disability is permanent partial, and
such disability occurs before thirty-six (36)
monthly contributions have been paid prior to
the semester of disability, the benefit shall be
such percentage of the lump sum benefit
described in the preceding paragraph with due
regard to the degree of disability as the
Commission may determine.
"(f) If the disability is permanent total and such
disability occurs after thirty-six (36) monthly
contributions have been paid prior to the
semester of disability, the benefit shall be the
monthly pension for permanent total disability
 Disabilities Deemed Permanent Total:
1. Complete loss of sight of both eyes;
2. Loss of two limbs at or above the ankle or
wrists;
3. Permanent complete paralysis of two limbs;
4. Brain injury resulting to incurable imbecility
or insanity; and
5. Such cases as determined and approved by
the SSS.
 Funeral Benefit.
A funeral grant equivalent to Twelve thousand
pesos (P12,000.00) shall be paid, in cash or in
kind, to help defray the cost of funeral
expenses upon the death of a member,
including permanently totally disabled
member or retiree.
 Sickness Benefit
A member who has paid at least three (3) monthly
contributions in the twelve-month period immediately
preceding the semester of sickness or injury and is
confined therefor for more than three (3) days in a
hospital or elsewhere with the approval of the SSS,
shall, for each day of compensable confinement or a
fraction thereof, be paid by his employer, or the SSS, if
such person is unemployed or self-employed, a daily
sickness benefit equivalent to ninety percent (90%) of
his average daily salary credit
In no case shall the daily sickness benefit be paid
longer than one hundred twenty (120) days in one (1)
calendar year
The daily sickness benefit shall not be paid for more
than two hundred forty (240) days on account of the
same confinement
 Maternity Leave Benefit
A female member who has paid at least three (3)
monthly contributions in the twelve-month period
immediately preceding the semester of her childbirth
or miscarriage shall be paid a daily maternity benefit
equivalent to one hundred percent (100%) of her
average daily salary credit for sixty (60) days or
seventy-eight (78) days in case of caesarian delivery
That the maternity benefits provided under this section
shall be paid only for the first four (4) deliveries or
miscarriages
That the SSS shall immediately reimburse the employer
of one hundred percent (100%) of the amount of
maternity benefits advanced to the employee by the
employer upon receipt of satisfactory proof of such
payment and legality thereof
 Employees Contributions
Beginning as of the last day of the calendar
month when an employees compulsory
coverage takes effect and every month
thereafter during his employment, the
employer shall deduct and withhold from such
employees monthly salary, wage,
compensation or earnings, the employees
contribution in an amount corresponding to
his salary, wage, compensation or earnings
during the month
 Employers Contributions
Beginning as of the last day of the month when
an employees compulsory coverage takes effect
and every month thereafter during his
employment, his employer shall pay, with respect
to such covered employee, the employers
contribution in accordance with the schedule
indicated in Section Eighteen of this Act.
Notwithstanding any contract to the contrary, an
employer shall not deduct, directly or indirectly,
from the compensation of his employees covered
by the SSS or otherwise recover from them the
employers contributions with respect to such
employees.
 Contributions of the Self-Employed
Member
The monthly earnings declared by the self-
employed member at the time of his
registration shall remain the basis of his
monthly salary credit, unless he makes
another declaration of his monthly earnings,
in which case such latest declaration becomes
the new basis of his monthly salary credit.
 Penal Clause
Any employer who, after deducting the monthly
contributions or loan amortizations from his employees
compensation, fails to remit the said deduction to the SSS
within thirty (30) days from the date they became due,
shall be presumed to have misappropriated such
contributions or loan amortizations and shall suffer the
penalties provided in Article Three hundred fifteen of the
Revised Penal Code.
Criminal action arising from a violation of the provisions of
this Act may be commenced by the SSS or the employee
concerned either under this Act or in appropriate cases
under the Revised Penal Code: Provided, That such criminal
action may be filed by the SSS in the city or municipality
where the SSS office is located, if the violation was
committed within its territorial jurisdiction or in Metro
Manila, at the option of the SSS