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.
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.
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.