March 2019

To our dear and valued members:

The Social Security System (SSS) is pleased to present this booklet containing
the text of Republic Act No. 11199, or the Social Security Act of 2018 — a law
repealing RA No. 1161, as amended by RA No. 8282, otherwise known as the
Social Security Act of 1997.
The grant of unemployment or involuntary separation benefits for the first time
in this country, the mandatory coverage of Overseas Filipino Workers, the
establishment of a Provident Fund exclusive to SSS members, the condonation
of penalties on delinquent contributions, and the legislated adjustments in
membership premium and monthly salary credits are among the landmark
provisions of RA No. 11199, which was signed into law by President Rodrigo R.
Duterte on 7 February 2019.
Anchored on the philosophical framework of instilling a “savings-and-investing
culture” and the value of WORK, SAVE, INVEST, AND PROSPER, this law paved
the way for a more responsive SSS. More importantly, RA No. 11199
strengthened the SSS as a pension fund and empowered the Social Security
Commission by according them autonomy and leeway in decision-making, fiscal
and investment management, and benefit package adjustments.
The legislators in both Houses of Congress, by working hand-in-hand with SSS
officials, succeeded in crafting a law that truly ensures universal, equitable, and
viable social security for Filipino workers in the private sector, here and
overseas.
May this publication effectively inform members of their basic rights and
privileges under the new SS Law and help them better appreciate how a robust
and viable social security program can build a more secure future for themselves
and their families.
Aurora C. Ignacio
SSS President & Chief Executive Officer
REPUBLIC ACT NO. 11199
AN ACT RATIONALIZING AND EXPANDING THE POWERS AND DUTIES OF THE
SOCIAL SECURITY COMMISSION TO ENSURE THE LONG-TERM VIABILITY OF
THE SOCIAL SECURITY SYSTEM, REPEALING FOR THE PURPOSE REPUBLIC
ACT NO. 1161, AS AMENDED BY REPUBLIC ACT NO. 8282, OTHERWISE KNOWN
AS THE “SOCIAL SECURITY ACT OF 1997”
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
SECTION 1. Short Title. – This Act shall be known as the “Social Security Act of
2018”.
SEC. 2. Declaration of Policy. – It is the policy of the State to establish, develop,
promote and perfect a sound and viable tax-exempt social security system
suitable to the needs of the people throughout the Philippines which shall
promote social justice through savings, and ensure meaningful social security
protection to members and their beneficiaries against the hazards of disability,
sickness, maternity, old age, death, and other contingencies resulting in loss of
income or financial burden. Towards this end, the State shall endeavor to extend
social security protection to Filipino workers, local or overseas, and their
beneficiaries.
In the pursuit of this policy, a social security program shall be developed
emphasizing the value of “work, save, invest and prosper”. The maximum
profitability of investible funds and resources of the program shall be ensured
through a culture of excellence in management grounded upon sound and
efficient policies employing internationally recognized best practices.
SEC. 3. Social Security System. – (a) To carry out the purposes of this Act, the
Social Security System, hereinafter referred to as “SSS”, a corporate body, with
principal place of business in Metro Manila, Philippines, is hereby created. In the
discharge of its mandated responsibilities under this Act, the SSS shall function
and operate as an independent and accountable government-owned and
-controlled corporation (GOCC) within the corporate governance standards and
principles of Republic Act No. 10149 (GCG Law), except as otherwise provided
herein.
The SSS shall be directed and controlled by a Social Security Commission,
hereinafter referred to as “Commission”, composed of the Secretary of Finance
as ex officio Chairperson, the SSS President and Chief Executive Officer as
Vice-Chairperson who shall automatically act as the Commission Chairperson in
the absence of the Finance Secretary, the Secretary of Labor and Employment,
as ex officio member, and six (6) appointive members, three (3) of whom shall
represent the workers’ group, at least one (1) of whom shall be a woman; three
(3), the employers’ group, at least one (1) of whom shall be a woman; all of whom
shall be appointed by the President of the Philippines and shall be of known
competence, probity, integrity and recognized expertise in any of the fields of
social security, pension fund, insurance, investment, banking and finance,
economics, management, law or actuarial science and with at least ten (10) years
of managerial or leadership experience. The six (6) members representing
workers and employers groups shall be chosen from among the nominees of
workers’ and employers’ organizations respectively, as endorsed by the
Governance Commission for GOCCs following the fit and proper rule and
standards on integrity, experience, education, training and competence. The
term of office of the regular appointive members of the Commission shall be
three (3) years, which can be extended for another term of three (3) years:
Provided, That the terms of the first six (6) appointive members shall be one (1),
two (2), and three (3) years for every two (2) members, respectively,
notwithstanding Section 17 of the GCG Law: Provided, further, That they shall
continue to hold office until their successors shall have been appointed and duly
qualified. All vacancies, prior to the expiration of term, shall be filled for the
unexpired term only.
The fiduciary duties of a member of the Commission include the following:
(1) Act with utmost and undivided loyalty to the SSS;
(2) Act with due care, extraordinary diligence and skill in the conduct of business
and exercise utmost good faith in all transactions relating to his/her duties to
the SSS and its properties, and in his/her dealings with and for the SSS he/she
is held to the same strict rule of honesty and fair dealing between
himself/herself and his/her principal as other agent;
(3) Act for the benefit of the SSS and not for his/her own benefit;
(4) Not to profit as individual by virtue of his/her position and ensure that
profits received by him/her from the SSS’ properties or businesses revert to the
SSS and to hold the same as trustee for the benefit of the SSS and its members;
(5) Avoid conflicts of interest and not to acquire an interest adverse to or in
conflict with that of the SSS, while acting for the SSS or when dealing
individually with third persons and declare any interest he/she may have in any
particular matter before the Commission; and
(6) Apply sound business principles to ensure the financial soundness of the SSS.
The compensation, per diems, allowances and incentives of the appointive
members of the Commission shall be in accordance with and subject to GCG Law.
(b) The general conduct of the operations and management functions of the SSS
shall be vested in the SSS President who shall serve as the Chief Executive
Officer immediately responsible for carrying out the program of the SSS and the
policies of the Commission. The SSS President shall be appointed by the
President of the Philippines and shall be a person of known competence, probity,
integrity and recognized expertise in social security, pension fund, insurance,
investment, banking and finance, economics, management, law or actuarial
science.
The SSS President may be removed for a valid cause or any of the following
reasons in accordance with the requirement of due process:
(1) If he or she becomes physically or mentally incapacitated from discharging
the duties and responsibilities of the office, and such incapacity has lasted for
more than six (6) months;
(2) If he or she is guilty of acts or omissions which are of fraudulent or illegal
character or which are manifestly opposed to the aims and interests of the SSS;
(3) If he or she no longer possess the qualifications specified in this Act;
(4) If he or she does not meet the standards of performance based on the
evaluation by the Governance Commission for GOCCs under the GCG Law.
(c) An Office of the Actuary shall be created to conduct the necessary actuarial
studies and present recommendations on premiums, investments and other
related matters. The Commission, upon the recommendation of the SSS
President, shall appoint the Chief Actuary and such other personnel as may be
deemed necessary; prescribe their duties and establish such methods and
procedures as may be necessary to ensure the efficient, honest and economical
administration of the provisions and purposes of this Act: Provided, however,
That the personnel of the SSS below the rank of Vice-President shall be
appointed by the SSS President: Provided, further, That the personnel appointed
by the SSS President, except those below the rank of assistant manager, shall be
subject to the confirmation by the Commission: Provided, further, That the
personnel of the SSS shall be selected only from civil service eligibles and be
subject to civil service rules and regulations: Provided, finally, That the SSS
shall be exempt from the provisions of Republic Act No. 6758 and Republic Act
No. 7430.
The Chief Actuary of the SSS can only be removed by just causes which include
among others gross incompetence, gross inefficiency, disloyalty, conflict of
interest, dishonesty and serious misconduct.
(d) The Commission shall fix the reasonable compensation, allowances and other
benefits of all positions in the SSS, including its President and Chief Executive
Officer, based on a comprehensive job analysis and audit of actual duties and
responsibilities. The compensation plan shall be comparable with the prevailing
compensation plan in the Government Service Insurance System (GSIS), the
Bangko Sentral ng Pilipinas (BSP) and other government financial institutions
and shall be subject to periodic review by the Commission no more than once
every four (4) years without prejudice to merit reviews or increases based on
productivity and efficiency.
SEC. 4. Powers and Duties of the Commission and SSS. –
(a) The Commission. – For the attainment of its main objectives as set forth in
Section 2 hereof, the Commission shall have the following powers and duties:
(1) To formulate, adopt, amend and/or rescind such rules and regulations as may
be necessary to carry out the provisions and purposes of this Act;
(2) To establish a Provident Fund for the members which will consist of
contributions of employers and employees, self-employed, OFW and voluntary
members based on (i) the SSS contribution rate in excess of twelve percent
(12%), or (ii) monthly salary credit in excess of Twenty thousand pesos
(P20,000.00) up to the prescribed maximum monthly salary credit and their
earnings, for the payment of benefits to such members or their beneficiaries in
addition to the benefits provided for under this Act: Provided, That a member
may contribute voluntarily in excess of the prescribed SSS contribution rate
and/or the maximum monthly salary credit, subject to such rules and
regulations as the Commission may promulgate;
(3) To maintain a Provident Fund which consists of contributions made by both
the SSS and its officials and employees and their earnings, for the payment of
benefits to such officials and employees or their heirs under such terms and
conditions as it may prescribe;
(4) To conduct continuing actuarial and statistical studies and valuations to
determine the financial condition of the SSS and taking into consideration such
studies and valuations and the limitations herein provided, to re-adjust the
benefits, contributions, premium rates, interest rates or the allocation or
re-allocation of the funds to the contingencies covered;
(5) To approve restructuring proposals for the payment of due but unremitted
contributions and unpaid loan amortizations under such terms and conditions as
it may prescribe;
(6) To authorize cooperatives registered with the Cooperative Development
Authority or associations registered with the appropriate government agency to
act as collecting agents of the SSS with respect to their members: Provided, That
the SSS shall accredit the cooperative or association: Provided, further, That the
persons authorized to collect are bonded;
(7) To compromise or release, in whole or in part, any interest, penalty or any
civil liability to SSS in connection with the investments authorized under
Section 26 hereof, under such terms and conditions as it may prescribe;
(8) Any law to the contrary notwithstanding, to condone, enter into a
compromise or release, in whole or in part, such penalties imposed upon
delinquent social security contributions regardless of the amount involved under
such valid terms and conditions it may prescribe through rules and regulations
when the financial position of the employer demonstrates a clear inability to pay
the assessed delinquency arising from economic crisis, serious business losses or
financial reverses, or resulting from natural calamity or man-made disaster
without fault on the part of the employer.
Provided, That the Social Security Commission shall, immediately after the
passage of this Act, institute a condonation of penalties of delinquent employers
under Republic Act No. 10361, subject to such rules and regulations as the
Social Security Commission may provide.
The Commission shall submit to the office of the President of the Philippines,
the Senate and the House of Representatives an annual report on the exercise of
the powers under this provision, stating therein the following facts and
information, among others: names and addresses of employers whose penalty
delinquencies have been subjected to compromise or condonation; amount
involved; amount compromised or condoned and the underlying reasons and
justifications thereon, to determine that said powers are reasonably exercised
and that the SSS is not unduly prejudiced;
(9) To implement the rate of contributions as well as the minimum and
maximum monthly salary credits in accordance with the following schedule
effective January of the year of implementation as follows:​
​
Year of Implementation ; Contribution Rate ;​ Share​ Monthly Salary Credit
Employer Employee​ Minimum
Maximum
2019​ ​ ​ ​ 12%​ ​ 8%​ 4%​ P 2,000.00 P
20,000.00
2020​ ​ ​ ​ 12%​ ​ 8%​ 4%​ P 2,000.00 P
20,000.00
2021​ ​ ​ ​ 13%​ ​ 8.5%​ 4.5% P 3,000.00 P 25,000.00
2022​ ​ ​ ​ 13%​ ​ 8.5%​ 4.5% P 3,000.00 P 25,000.00
2023​ ​ ​ ​ 14%​ ​ 9.5%​ 4.5% P 4,000.00 P 30,000.00
2024​ ​ ​ ​ 14%​ ​ 9.5%​ 4.5% P 4,000.00 P 30,000.00
2025​ ​ ​ ​ 15%​ ​ 10%​ 5%​ P 5,000.00 P
35,000.00
​
​
​
​
Provided, That the domestic workers or “kasambahays” as defined under
Republic Act No. 10361 or the Batas Kasambahay who are receiving a monthly
income lower than minimum monthly salary credit prescribed under this Act
shall pay contributions based on their actual monthly salary: Provided, further,
That members, who are subject to compulsory coverage and receiving a monthly
income lower than the minimum monthly salary credit or more than the
maximum monthly salary credit, and their employers, shall pay the SSS
contributions based on the current minimum monthly salary credit or the
maximum monthly salary credit, respectively, as provided in this Act.
The rate of penalty on unpaid loan amortizations shall be determined and fixed
by the Commission from time to time through rules and regulations on the basis
of applicable actuarial studies, rate of benefits, inflation, and other relevant
socioeconomic data;
(10) To develop and administer a special social security program for workers,
with unique economic, social, and geographic situations, as determined by the
Commission: Provided, That the program may have different contributions and
benefits that are proportionately calculated which must be fair, equitable,
actuarially sound and viable: Provided, further, That the special program shall
enjoy the same legal privileges as the regular social security program; and
(11) To approve, confirm, pass upon or review any and all actions of the SSS in
the proper and necessary exercise of its powers and duties hereinafter
enumerated.
(b) The Social Security System. – Subject to the provision of Section 4,
Subsection (a) (11) hereof, the SSS shall have the following powers and duties:
(1) To submit annually not later than April 30, a public report to the President of
the Philippines and to the Congress of the Philippines covering its activities in
the administration and enforcement of this Act during the preceding year
including information and recommendations on broad policies for the
development and perfection of the program of the SSS;
(2) To require the Chief Actuary to submit a valuation report on the SSS benefit
program every three (3) years, or more frequently as may be necessary, to
undertake the necessary actuarial studies and calculations concerning increases
in benefits taking into account inflation and the financial stability of the SSS,
the individual income gap and poverty threshold for the elderly, similar benefits
provided by other social protection programs of the government; and to provide
for feasible increases in benefits every four (4) years, including the addition of
new ones, under such rules and regulations as the Commission may adopt:
Provided, That the actuarial soundness of the reserve fund shall be guaranteed;
(3) To establish offices of the SSS to cover as many provinces, cities and
congressional districts, including foreign countries whenever and wherever it
may be expedient, necessary and feasible, and to inspect or cause to be
inspected periodically such offices;
(4) To enter into agreements or contracts for such service and aid, as may be
needed for the proper, efficient and stable administration of the SSS;
(5) To adopt or approve the annual and supplemental budget of receipts and
expenditures including salaries and allowances of the SSS personnel, against all
funds available to the SSS under this Act, and to authorize such capital and
operating expenditures and disbursements of the SSS as may be necessary and
proper for the effective management and operation of the SSS;
(6) To set up its accounting system and provide the necessary personnel
therefor;
(7) To require reports, compilations and analyses of statistical and economic
data and to make investigations as may be needed for the proper administration
and development of the SSS;
(8) To acquire, develop and dispose of property, real or personal, on its own, or
through a joint venture arrangement with the public and/or private sector,
which may be necessary or expedient for the attainment of the purposes of this
Act;
No injunction or restraining order issued by any court, tribunal or office shall
bar, impede or delay the sale, development or disposition by the SSS of its
property except on questions of ownership and national or public interest;
(9) To acquire, receive, or hold, by way of purchase, expropriation or otherwise,
public or private property for the purpose of undertaking housing projects
preferably for the benefit of low-income members and for the maintenance of
hospitals and institutions for the sick, aged and disabled, as well as schools for
the members and their immediate families;
(10) To enter into agreement with the GSIS or any other entity, enterprise,
corporation or partnership for the benefit of members transferring from one
system to another subject to the provision of Republic Act No. 7699, otherwise
known as the Portability Law;
(11) To sue and be sued in court; and
(12) To perform such other corporate acts as it may deem appropriate for the
proper enforcement of this Act.
SEC. 5. Settlement of Disputes. – (a) Any dispute arising under this Act with
respect to coverage, benefits, contributions and penalties thereon or any other
matter related thereto, shall be cognizable by the Commission, and any case
filed with respect thereto shall be heard by the Commission, or any of its
members, or by hearing officers duly authorized by the Commission and decided
within the mandatory period of twenty (20) days after the submission of the
evidence. The filing, determination and settlement of disputes shall be governed
by the rules and regulations promulgated by the Commission.
(b) Appeal to Courts. – Any decision of the Commission, in the absence of an
appeal therefrom as herein provided, shall become final and executory fifteen
(15) days after the date of notification, and judicial review thereof shall be
permitted only after any party claiming to be aggrieved thereby has exhausted
his remedies before the Commission. The Commission shall be deemed to be a
party to any judicial action involving any such decision, and may be represented
by an attorney employed by the Commission, or when requested by the
Commission, by the Solicitor General or any public prosecutor.
(c) Court Review. – The decision of the Commission upon any disputed matter
may be reviewed both upon the law and the facts by the Court of Appeals. For
the purpose of such review, the procedure concerning appeals from the Regional
Trial Court shall be followed as far as practicable and consistent with the
purposes of this Act. Appeal from a decision of the Commission must be taken
within fifteen (15) days from notification of such decision. If the decision of the
Commission involves only questions of law, the same shall be reviewed by the
Supreme Court. No appeal bond shall be required. The case shall be heard in a
summary manner, and shall take precedence over all cases, except that in the
Supreme Court, criminal cases wherein life imprisonment or death has been
imposed by the trial court shall take precedence. No appeal shall act as a
supersedeas or a stay of the order of the Commission unless the Commission
itself, or the Court of Appeals or the Supreme Court, shall so order.
(d) Execution of Decisions. – The Commission may, motu proprio or on motion of
any interested party, issue a writ of execution to enforce any of its decisions or
awards, after it has become final and executory, in the same manner as the
decision of the Regional Trial Court by directing the city or provincial sheriff or
the sheriff whom it may appoint to enforce such final decision or execute such
writ; and any person who shall fail or refuse to comply with such decision, award
or writ, after being required to do so shall, upon application by the Commission
pursuant to Rule 71 of the Rules of Court, be punished for contempt.
SEC. 6. Auditor and Counsel. – (a) The Chairman of the Commission on Audit
shall be the ex officio Auditor of the SSS. He or his representative shall check
and audit all the accounts, funds and properties of the SSS in the same manner
and as frequently as the accounts, funds and properties of the government are
checked and audited under existing laws, and he shall have, as far as practicable,
the same powers and duties as he has with respect to the checking and auditing
of public accounts, funds and properties in general.
(b) The Secretary of Justice shall be the ex officio counsel of the SSS. He or his
representative shall act as legal adviser and counsel thereof.
SEC. 7. Oaths, Witnesses, and Production of Records. – When authorized by the
Commission, an official or employee thereof shall have the power to administer
oath and affirmation, take depositions, certify to official acts, and issue
subpoena and subpoena duces tecum to compel the attendance of witnesses and
the production of books, papers, correspondence and other records deemed
necessary as evidence in connection with any question arising under this Act.
Any case of contumacy shall be dealt with by the Commission in accordance
with law.
SEC. 8. Terms Defined. – For purposes of this Act, the following terms shall,
unless the context indicates otherwise, have the following meanings:
(a) SSS – The Social Security System created by this Act.
(b) Commission – The Social Security Commission as herein created.
(c) Employer – Any person, natural or juridical, domestic or foreign, who carries
on in the Philippines any trade, business, industry, undertaking, or activity of
any kind and uses the services of another person who is under his orders as
regards the employment, except the Government and any of its political
subdivisions, branches or instrumentalities, including corporations owned or
controlled by the Government: Provided, That a self-employed person shall be
both employee and employer at the same time.
(d) Employee – Any person who performs services for an employer in which
either or both mental or physical efforts are used and who receives
compensation for such services, where there in an employer-employee
relationship: Provided, That a self-employed person shall be both employee and
employer at the same time.
(e) Dependents – The dependents shall be the following:
(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.
(f) Compensation – All actual remuneration for employment, including the
mandated cost-of-living allowance, as well as the cash value of any remuneration
paid in any medium other than cash except that part of the remuneration
received during the month in excess of the maximum salary credit as provided in
this Act.
(g) Monthly salary credit – The compensation base for contributions and benefits
as indicated in this Act: Provided, That in the computation of benefits, the
maximum monthly salary credit to be considered shall be Twenty thousand
pesos (P20,000.00), until adjusted as provided in Section 4(a)(9).
(h) Monthly – The period from one end of the last payroll period of the preceding
month to the end of the last payroll period of the current month if compensation
is on hourly, daily or weekly basis; if on any other basis, ‘monthly’ shall mean a
period of one (1) month.
(i) Contribution – The amount paid to the SSS by and on behalf of the members
in accordance with the schedule provided in this Act.
(j) Employment – Any service performed by an employee for his employer except:
(1) Services where there is no employer-employee relationship in accordance
with existing labor laws, rules, regulations and jurisprudence;
(2) Service performed in the employ of the Philippine Government or
instrumentality or agency thereof;
(3) Service performed in the employ of a foreign government or international
organization, or their wholly-owned instrumentality: Provided, however, That
this exemption notwithstanding, any foreign government, international
organization or their wholly-owned instrumentality employing workers in the
Philippines or employing Filipinos outside of the Philippines, may enter into an
agreement with the Philippine Government for the inclusion of such employees
in the SSS except those already covered by their respective civil service
retirement systems: Provided, further, That the terms of such agreement shall
conform with the provisions of this Act on coverage and amount of payment of
contributions and benefits: Provided, finally, That the provisions of this Act shall
be supplementary to any such agreement; and
(4) Such other services performed by temporary and other employees which may
be excluded by regulation of the Commission. Employees of bona fide
independent contractors shall not be deemed employees of the employer
engaging the service of said contractors.
(k) 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 or legally
adopted children of the member, his/her dependent illegitimate children shall be
entitled to one hundred percent (100%) of the benefits. 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.
(l) Contingency – The retirement, death, disability, injury or sickness and
maternity of the member.
(m) Average monthly salary credit – The result obtained by dividing the sum of
the last sixty (60) monthly salary credits immediately preceding the semester of
contingency by sixty (60), or the result obtained by dividing the sum of all the
monthly salary credits paid prior to the semester of contingency by the number
of monthly contributions paid in the same period, whichever is greater:
Provided, That the injury or sickness which caused the disability shall be
deemed as the permanent disability for the purpose of computing the average
monthly salary credit.
(n) Average daily salary credit – The result obtained by dividing the sum of the
six (6) highest monthly salary credits in the twelve-month period immediately
preceding the semester of contingency by one hundred eighty (180).
(o) Semester – A period of two (2) consecutive quarters ending in the quarter of
contingency.
(p) Quarter – A period of three (3) consecutive calendar months ending on the
last day of March, June, September and December.
(q) Credited years of service – For a member covered prior to January nineteen
hundred and eighty-five (1985) minus the calendar year for coverage plus the
number of calendar years in which six (6) or more contributions have been paid
from January nineteen hundred and eighty-five (1985) up to the calendar year
containing the semester prior to the contingency. For a member covered in or
after January nineteen hundred and eighty-five (1985), the number of calendar
years in which six (6) or more contributions have been paid from the year of
coverage up to the calendar year containing the semester prior to the
contingency: Provided, That the Commission may provide for a different number
of contributions in a calendar year for it to be considered as a credited year of
service.
(r) Member – The worker who is covered under Section 9, Section 9-A and
Section 9-B of this Act.
(s) Self-employed – Any person whose income is not derived from employment, as
defined under this Act, as well as those workers enumerated in Section 9-A
hereof.
(t) Net earnings – Net income before income taxes plus non-cash charges such as
depreciation and depletion appearing in the regular financial statement of the
issuing or assuming institution.
(u) Fixed charges – Recurring expense such as amortization of debt discount and
rentals for leased properties, including interest on funded and unfunded debt.​
​
SEC. 9. Coverage. – (a) Coverage in the SSS shall be compulsory upon all
employees including kasambahays or domestic workers not over sixty (60) years
of age and their employers: Provided, 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
employer’s 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 employer’s 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 employer’s 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.
SEC. 9-A. Compulsory Coverage of the Self-Employed. – Coverage in the SSS shall
also be compulsory upon such self-employed persons as may be determined by
the Commission under such rules and regulations as it may prescribe, including
but not limited to the following:
(a) All self-employed professionals;
(b) Partners and single proprietors of businesses;
(c) 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;
(d) Professional athletes, coaches, trainers and jockeys; and
(e) Individual farmers and fishermen.
Unless otherwise specified herein, all provisions of this Act applicable to covered
employees shall also be applicable to the covered self-employed persons.
SEC. 9-B. Compulsory Coverage of Overseas Filipino Workers (OFWs). –
(a) Coverage in the SSS shall be compulsory upon all sea-based and land-based
OFWs as defined under Republic Act No. 8042, otherwise known as the Migrant
Workers and Overseas Filipinos Act of 1995, as amended by Republic Act No.
10022: Provided, That they are not over sixty (60) years of age.
All benefit provisions under this Act shall apply to all covered OFWs. The
benefits include, among others, retirement, death, disability, funeral, sickness
and maternity.
(b) Manning agencies are agents of their principals and are considered as
employers of sea-based OFWs.
For purposes of the implementation of this Act, any law to the contrary
notwithstanding manning agencies are jointly and severally or solidarity liable
with their principals with respect to the civil liabilities incurred for any violation
of this Act.
The persons having direct control, management or direction of the manning
agencies shall be held criminally liable for any act or omission penalized under
this Act notwithstanding Section 28(f) hereof.
(c) Land-based OFWs are compulsory members of the SSS and considered in the
same manner as self-employed persons under such rules and regulations that the
Commission shall prescribe.
(d) The Department of Foreign Affairs (DFA), the Department of Labor and
Employment (DOLE) and all its agencies involved in deploying OFWs for
employment abroad are mandated to negotiate bilateral labor agreements with
the OFWs’ host countries to ensure that the employers of land-based OFWs,
similar to the principals of sea-based OFWs, pay the required SSS contributions,
in which case these land-based OFWs shall no longer be considered in the same
manner as self-employed persons in this Act. Instead, they shall be considered as
compulsorily covered employees with employer and employee shares in
contributions that shall be provided for in the bilateral labor agreements and
their implementing administrative agreements: Provided, That in countries
which already extend social security coverage to OFWs, the DFA through the
Philippine embassies and the DOLE shall negotiate further agreements to serve
the best interests of the OFWs.
(e) The DFA, the DOLE and the SSS shall ensure compulsory coverage of OFWs
through bilateral social security and labor agreements and other measures for
enforcement.
(f) Upon the termination of their employment overseas, OFWs may continue to
pay contributions on a voluntary basis to maintain their rights to full benefits.
(g) Filipino permanent migrants, including Filipino immigrants, permanent
residents and naturalized citizens of their host countries may be covered by the
SSS on a voluntary basis.
SEC. 10. 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: Provided, That the compulsory coverage of the
self-employed person shall take effect upon his registration with the SSS.
SEC. 11. Effect of Separation from Employment. – When an employee under
compulsory coverage is separated from employment, his employer’s contribution
on his account and his obligation to pay contributions arising from that
employment shall cease at the end of the month of separation, but said
employee shall be credited with all contributions paid on his behalf and entitled
to benefits according to the provisions of this Act. He may, however, continue to
pay the total contributions to maintain his right to full benefit.
SEC. 11-A. Effect of Interruption of Business or Professional Income. – If the
self-employed member 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 (22)-A
hereof.
SEC. 12. Monthly Pension. –
(a) The monthly pension shall be the highest of the following amounts:
(1) The sum of the following:
(i) Three hundred pesos (P300.00); plus
(ii) Twenty percent (20%) of the average monthly salary credit; plus
(iii) Two percent (2%) of the average monthly salary credit for each credited year
of service in excess of ten (10) years; or
(2) Forty percent (40%) of the average monthly salary credit; or
(3) One thousand pesos (P1,000.00): Provided, That the monthly pension shall in
no case be paid for an aggregate amount of less than sixty (60) months.
(b) Notwithstanding the preceding paragraph, the minimum pension shall be One
thousand two hundred pesos (P1,200.00) for members with at least ten (10)
credited years of service and Two thousand four hundred pesos (P2,400.00) for
those with twenty (20) credited years of service: Provided, That the Commission,
upon determination of actuarial soundness, may provide pension increase than
the amounts specified herein.