REPUBLIC ACT NO.

1161
 AN ACT TO CREATE A SOCIAL
SECURITY SYSTEM PROVIDING
SICKNESS,
UNEMPLOYMENT RETIREMENT,
DISABILITY AND DEATH BENEFITS FOR
EMPLOYEES.
(THE SOCIAL SECURITY ACT OF 1997)
 - Approved on July 18,
1954,
implemented on September
1, 1957.
 DEVELOPMENT OF THE
LAW

1. R.A. No. 1792

-First amendatory act. Deleted the provisions on
unemployment benefits.

2. R.A. No. 2658

-SSS was broadened, the benefits increased and the
employment thereof liberalized.
 DEVELOPMENT OF THE LAW
3. R.A. No. 3839
-Retirement benefits were increased and the
minimum requirement for coverage was
removed.

4. R.A. No. 4482

-Reimbursable amount of sickness benefits
advanced by employers was increased.
 DEVELOPMENT OF THE LAW

● Thereafter, several other laws increasing the

amount of social security benefits were
promulgated namely; R. A. No. 4857, P.D.
Nos., 24, 177, 347, 735, 1202, 1636, E. O.
Nos. 28,102, R.A. Nos. 7322, and 8282, the
latter having been approved on May 1, 1997.
 RATIONALE BEHIND THE
ENACTMENT OF THE SOCIAL
SECURITY LAW
-The Social Security Law was enacted pursuant
to the policy of the State to establish, develop
and promote a sound and viable tax-exempt
social security system suitable to the needs of
the people throughout the Philippines and
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 of income or
financial burden.
 VALIDITY OF THE SOCIAL
SECURITY LAW
- The enactment of the Social Security Law is a
legitimate exercise of police power. It is in full
accord with the constitutional provisions on
the “promotion of social justice to insure the
well-being and economic security of all the
people.
 CONSTRUCTION OF THE
SOCIAL SECURITY LAW

- The provisions of the Social Security Law are

to be liberally construed in favor of those
seeking its benefits.
 THE SOCIAL SECURITY
LAW IS NOT A LAW ON
SUCCESSION

-It is not the heirs of the employees but the

designated beneficiaries who are to receive
the social security benefits. It is only when the
beneficiary is the estate, or when there is no
designated beneficiary or if the designation
is void, that the Social Security System is
required to pay the employer’s heirs.
 SOCIAL SECURITY LAW
IS NOT A PART OF THE
TAXATION SYSTEM
-Social Security Law is not part of the taxation
system because it is not intended for raising
revenues but for the promotion of the general
welfare.
COVERAGE
OF
SSS
A. Compulsary Coverage

a) All employees engaged in business in the

Philippines, including religious, charitable
or non-profit institutions;

a) All employees not over 60 years of age

Domestic helpers receiving

Php1,000/month
d) Aliens employed in the Philippines;

d) Self-employed persons, including but not

limited to the ff:

Self-employed professionals;

Partners and single proprietors of business;

Actors, actresses, directors, scriptwriters and
news correspondents;

Professional athletes, coaches, trainers and

jockeys;

Individual farmers and fishermen.

For employers- on the 1st day of his operation

For employees- on the 1st day of his

employment

For self-employed- upon his registration with

the SSS
 B. Voluntary Coverage

The ff. may be covered by the SSS on a

voluntary basis:

a) Spouses who devote full time to managing

the household and family affairs;

b) Filipinos recruited for overseas employment

by foreign- based employers.
 When a person has secured an
SSS Number does it mean that he
is already an SSS A MEMBER?
- No. Securing an SSS Number 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
paid at least one-month contribution.
 Can a member withdraw his
membership with the SSS?

- No. When a person registers for SSS

membership, he becomes a member for life.
Employees not covered by the
SSS Law:
a) Purely casual employees;

a) Employees serving on an alien vessel, when

such vessel is outside of the Philippines;

c) Employees of the Philippine government or

any of its instrumentalities and agencies;
d) Employees of foreign gov’t, international
organization, and their wholly-owned
instrumentality;

e) Temporary employees, if excluded by

regulation of the ssc;
Note: In the absence of a regulation
exempting temporary employees from
coverage, temporary employees are covered
because there is no way of telling whether or
not the said employees belong to a group or
class designated by regulation of the Social
Security Commission as exempt.
 Obligations of employer
under the Social Security
Law:

a) To make a timely report of its employees

for coverage; and

b) To make timely remittance of premiums.

 Effect of non-reporting or
non-remittance
- Such failure or refusal shall not prejudice the
right of the covered employee to social
security benefits. In short, the employee
would still be entitled to the social security
benefits.

- Will hold the employer liable to a 3% monthly

penalty from the date the contribution falls due
until paid.

- Furthermore, the employer will be held criminally

liable for such violation.
 Good faith is not a defense
- The penalty for failure to remit premium
contributions is punitive in character, hence
good faith is not a defense. From the moment
the remittance of premiums due is delayed,
the
penalty immediately attaches to the delayed
premium payments by force of law.
 Demand is not a condition
precedent for remittance of
premium contributions

- The employer is duty-bound to remit the contributions

without need of any demand from
the employee. It is the legal obligation of every
employer to remit within the first seven days of the
month the contributions of the employee and the
employer to the SSS failing in which invites the
imposition of the penalty of 3 %.
 Contributions of the self-
employed
- The self- employed pays both the employer’s
and employee’s contribution. The monthly
earnings declared by the self-employed member
at the time of his registration shall be 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 for his monthly salary credit.
 Policy on the primacy of
regular employment over
self- employment
- If one is both an employee covered by the SSS and a
self - employed person, he shall pay the contributions
under both status and coverage. However, when
the combined contributions paid to the SSS as a regular
employee and as a self- employed member exceed the
maximum contributions based on the highest monthly
salary credit prevailing at the time od simultaneous
coverage, the excess shall be refunded accordingly to
the member. The excess contributions to be refunded
shall come from the self- employed contributions.
 Effect of interruption of
business or professional
income
- If the self- employed member does not earn
income in any given month, he is not required
to pay contributions for that month. He, may,
however be allowed to continue paying
contributions under the same rules and
regulations applicable to separated employee
member. Retroactive payment of contributions
is not allowed.
 Effect of separation from
employment
- When an employee under compulsory
coverage is separated from employment,
the
obligation of the employer and the
employee ta pay contributions arising from
that
employment ceases at the end of the month of
separation.
The Social Security
Benefits
1. Maternity leave benefit
2. Sickness benefit
Disability benefits
4. Retirement benefit
5. Death benefits
Funeral benefit
 Maternity Leave
Benefit (RA 11210,
The Expanded
Maternity Benefits
-The maternity leave benefit is available to a
female SSS member who:

a) Gives birth or suffers miscarriage/abortion;

and

b) Has paid at least 3 months monthly

contributions in the 12- month period
immediately preceding the semester of her
childbirth, abortion or miscarriage;

Note: The maternity leave benefit is

equivalent to 100% of the average daily salary
credit.
The duration of the
maternity leave is:
-Maternity leave of 105 days with full pay,
whether the eligible female employee gives
birth via
caesarian section or natural delivery.

-Maternity leave of 60 days with full pay in

cases of miscarriages (i.e., pregnancy loss
before the
20th week of gestation) or emergency
termination of pregnancy (i.e., pregnancy loss
on or after
the 20th week of gestation and includes
stillbirth).
-Allocation of 7 days of maternity leave credits
to the child’s father or an alternate caregiver.

-Additional maternity leave of 30 days without

pay in case of live childbirth provided a written
notice to the employer is given at least 45 days
before the end of her maternity leave. In case
of a medical emergency, prior notice is
excepted but subsequent notice is required.

-Additional maternity leave of 15 days with full

pay in case the eligible female employee is also
a solo parent as defined under Republic Act
No. 8972
● Note:
-Female workers with pending administrative cases are
entitled to the maternity leave benefits.

-The expanded maternity benefits apply regardless of

female worker’s employment status, civil status and
legitimacy of her child, and frequency of pregnancy.

-Maternity leave benefits should be availed by the

eligible female worker either before or after the actual
period of delivery in a continuous and uninterrupted
manner. Maternity leave can be used as combinations
of prenatal and postnatal leave provided that postnatal
care shall not be less than 60 days.
● In cases of live births, maternity leaves credits of 7
days may be allocated to the following:

a) Child’s father, whether or not married to the female

worker; or

a) Upon election of the mother taking into account the

best interest of the child, an alternate caregiver in
case of death, absence, or incapacity of the child
father who can be either

b1) a relative within the fourth degree of consanguinity;

or

b2) the current partner, regardless of sexual orientation

or gender identity, of the female worker
sharing the same household.
 Procedure for availment:
a) Employee should notify her employer of her
pregnancy and the probable date of her
childbirth which notice shall be transmitted to the
SSS;

b) The employer shall advance the payment within

30 days from the filing of the maternity leave
application; and

c) The SSS shall reimburse the employer the

amount paid upon receipt of satisfactory proof of
such payment and legality thereof;
● Note:
- It cannot be availed of simultaneously with
sickness benefit.
Sickness benefit
- Are daily cash allowances to help carry
through the employee and his family during his
confinement. It is stipend to enable the
employee and his family to provide themselves
with the bare necessities for subsistence when
he is not receiving his wage or salary.

- Equivalent to 90% of the average daily salary

credit payable for each day of compensable
confinement or fraction thereof. The
compensable confinement begins on the first
day of sickness.
 The sickness benefit is available
to an SSS member who:

a) Has paid at least 3 monthly contributions in the

12- month period immediately preceding the
semester of sickness

b) Was confined for more than 3 days in a

hospital or elsewhere with the approval of the
SSS;

c) Has exhausted the company sick leave with

pay, if any.
 Sickness benefit

● Note: The daily sickness benefit cannot be

paid longer than 120 days in one calendar
year. It cannot be paid more than 240 days
on account of the same confinement.
Unused portion of the 120 days cannot be
carried forward to the subsequent year.
 Procedure for availment of
sickness benefit by employees:
a) The employee should notify his employer
of the fact of his sickness or injury within 5
calendar days after the start of his
confinement.

Note:
- If the notice of sickness or injury was filed
after 5 days, the confinement shall be deemed
to have started not earlier than the 5th
day immediately preceding the date of
notification.
Note:
-If the SSS member is unemployed or self-
employed, he shall directly notify the SSS
of his confinement within 5 calendar days
after the star thereof.

-Notice is not necessary of the employee was

confined in a hospital or if the employee
became sick or was injured while working or
within the premises of the employer.
 Procedure for availment of sickness
benefit by employees:

The employer shall advance the sickness

allowances and pay the employee every
regular pay day;

c) The SSS shall reimburse the amount paid

by the employer upon satisfactory proof of
payment and legality thereof.
Note:
- If the notification to the SSS was made by the
employer after 5 calendar days from receipt of
the notification from the employee, the
employer shall be reimbursed only for each
day of confinement starting from the tenth
calendar day preceding the date of notification
to the SSS.
Note:
- The SSS shall reimburse the employer
only for confinement within the 1 year
period immediately preceding the date of
claim for reimbursement, except
confinement in a hospital in which case the
claim for benefit or reimbursement must be
filed within 1 year the last day of
confinement.
Note:
- If the employee has given the required
notification but the employer failed to notify
the
SSS of the confinement or to file the claim for
reimbursement within the prescribed period,
resulting in the reduction of the benefit or
denial of the claim, the employer cannot
recover the daily allowance he advanced to the
employee.
Note:
- The claim for reimbursement shall be
adjudicated by the SSS within 2 months from
receipt thereof. If the employer does not
receive the reimbursement within 1 month
from the prescribed 2- month period for
adjudication, the reimbursement shall
thereafter earn simple interest of 1% per
month until paid.
Disability Benefit
A member who suffers partial or total
disability with at least one monthly
contribution paid to the SSS prior to
the semester of contingency is
qualified.
Partial Disability
A complete and permanent loss or
use of any of the following body
parts, but which does not totally
prevent a member from engaging in
any gainful occupation.
one thumb sight of one eye
one index finger one big toe
one middle finger one hand one arm
one ring finger one foot one leg
one little finger one ear or both
ears
hearing of one ear
hearing of both ears
Permanent Total Disability
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
Monthly Pension
A cash benefit paid to a disabled member
who has paid at least 36 monthly
contributions to the SSS prior to the
semester of disability.
1. Only totally and permanently disabled
members will receive a lifetime monthly
pension.
The monthly pension of a partially
disabled member is paid up to a certain
number of months only, according to the
degree of disability.
 Additional allowance/s:

a. Supplemental

b. Dependents
Supplemental Allowance
A supplemental allowance of P500.00 is
paid to the total or partial disability
pensioner
● Each receive a dependent's allowance
equivalent to 10 percent of the
member's pension, or P250, whichever
is higher.
● Only five minor children, beginning from
the youngest are entitled to the
dependent's allowance.
Dependents
Who are qualified?
Minor children of the pensioner with
Permanent total disability that are:
1. Legitimate
2. Legitimated
3. Legally adopted
4. Illegitimate children
The dependent's allowance stops when
1. child reaches 21 years old
2. Gets married
3. Gets employed
4. Dies.
NOTE:
The dependent's allowance is granted for
life to children who are over 21 years old,
provided, they are incapacitated and
incapable of self-support due to physical or
mental defect which is congenital or
acquired during minority.
Lump Sum Amount
Granted to those who have not paid the
required 36 monthly contributions, and for
disability claims whose approved pension
duration is less than 12 months.
 Permanent total disability,
The lump sum benefit is 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.
 Permanent partial disability
The lump sum is equivalent to the monthly
pension times the number of monthly
contributions times the percentage of
disability in relation to the whole body or
the monthly pension times 12 times the
percentage of disability, whichever is
higher.
 Suspension of allowance
1. Reemployment
2. Resumption of self-employment
3. Recovery of the disabled member from
permanent total disability
4. Failure to present himself/herself for
examination at least once a year upon
notice by SSS.
RETIREMENT
BENEFITS
 Who are qualified?
1. Member is 60 years old, separated from
employment or ceased to be self-employed, and
has paid at least 120 monthly contributions prior
to the semester of retirement.
2. Member is 65 years old, whether employed or
not, and has paid at least 120 monthly
contributions prior to the semester of retirement.
3. Underground Mineworkers:
 Requirements
1. Retirement Claim Application
2. DDR Signature Card
3. DDR Savings Account form;
4. Certificate of Separation from last employer
(if member is less than 65 years old) ;
5. Passbook or ATM Card (if pension);
6. Certified true copies of birth or baptismal
certificate of dependent children;
 Requirements

7. Certified of cessation of business or

practice of profession (for self-employed
members who are less than 65 years old);
8. Certified true copy of marriage certificate
9. Proofs of filiation for illegitimate dependent
children
10. UMID or SSS biometrics ID card or two (2)
other valid IDs, both with signature and at
least one (1) with photo and date of birth.
NOTE:
• Upon the death of a retiree pensioner, the primary
beneficiaries shall be entitled to 100 percent of the
monthly pension, and the dependents to the
dependents'
allowance.
● If the retiree pensioner dies within sixty (60) months
from the start of the monthly
pension and has no primary beneficiaries, the
secondary beneficiaries shall be entitled to a
lumpsum benefit equivalent to the total monthly
pensions corresponding to the balance of the five-
year guaranteed pension period, excluding the
dependents' allowance.
NOTE:
● In case the retiree-member who is less than 65
years old resumes employment or self-
employment, the monthly pension shall be
suspended and the member shall again be
subjected to compulsory coverage.
● If the retiree-member is 65 years old and older,
he can resume employment or self- employment
without prejudice to his monthly pension and
without need for compulsory coverage.
DEATH BENEFITS
Who are considered the primary beneficiaries?

The primary beneficiaries of a member are the legitimate

dependent spouse until he or she remarries, the dependent
legitimate, legitimated or legally adopted, and illegitimate
children, who are not yet 21 years old.

If the member is single and without children, the benefits will

go to the dependent parents who are considered the
secondary beneficiaries.

In the absence of both primary and secondary beneficiaries,

any other person designated by the member in his/her SSS
records shall be considered as the beneficiary.
 Requisites
● For Pension - the deceased member must
have paid at least 36 monthly contributions
before the semester of death.
● For Lumpsum Amount - granted to the
primary beneficiaries of a deceased
member who had paid less than 36
monthly contributions before the semester
of death.
 Requirements
1. Death Claim Application
2. Affidavit of Death Benefit,
3. Filer's Affidavit (Sinumpaang Sanaysay)
4. Joint Affidavit of Two Disinterested
Persons,
5. Application for Appointment as
Representative Payeee
6. Report of Death, if death is work-related
 Requirements
6. Claimant's photo, signature form and valid
IDs
7. If claimant is spouse of the deceased,
marriage certificate and birth certificates of
minor
children (
8. If single, the deceased member's birth
certificate and marriage certificate of parents
9. Certified true copy of deceased member's
death certificate
 Requirements
10. Certified true copy of deceased member's death
certificate
11. certified/issued by LCR/NSO, if member died in the
Philippines
12. issued by vital statistics/census office or equivalent
agency and certified by the Philippine
Embassy/Consultat, if member died abroad
13. For pension - Single savings account passbook or ATM
card with validated deposit slip or
Cash Card Enrollment Form (photocopy and presentation of
original for validation)
 Dependents and Beneficiaries

If a deceased member is survived by less

than five minor children who are:
1. Legitimate
2. legitimated or legally adopted
3. illegitimate children
4. conceived on or before the date of
retirement of a retiree
 The dependents' allowance stops when:

1. the child reaches 21 years old

2. gets married
3. gets employed
4. Dies.
FUNERAL BENEFITS
A funeral grant of P20,000 (effective
September 1, 2000) is given to whoever pays
the burial expenses of the deceased member
or pension
 Qualifications:

Self-employed/ non-working spouse/ OFW

members
the deceased SSS member must have paid at
least one (1) monthly contribution, for his/her
beneficiaries to be entitled to the funeral benefit.

Employed members and those separated from

employment
the deceased must be reported for coverage by
his/her employer, even if no contribution was
paid, for his/her beneficiaries to be entitled to the
funeral benefits.
 Requirements

1. Claim for Funeral Benefit (SSS Form BPN-

103)
2. Filer's Affidavit (Sinumpaang Sanaysay)
3. Death certificate duly certified by the Local
Civil Registrar
4. Official Receipt of payment issued by the
funeral parlor
5. Affidavit of funeral expense
end