Social Security Act of 1997 (RA 8282)
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SOCIAL SECURITY ACT OF 1997 REPUBLIC ACT NO. 8282 AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEM THEREBY AMENDING FOR THIS PURPOSE, REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW. SECTION 1. Republic Act No. 1161, as amended, otherwise known as the "Social Security Law", is hereby further amended to read as follows: "SECTION 1. Short Title. ‐ This Act shall be known as the "Social Security Act of 1997." "SEC. 2. Declaration of Policy. ‐ It is the policy of the Republic of the Philippines to establish, develop, promote and perfect a sound and viable tax‐exempt social security service suitable to the needs of the people throughout the Philippines which shall promote social justice and provide meaningful 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 workers and their beneficiaries. "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. The SSS shall be directed and controlled by a Social Security Commission, hereinafter referred to as ‘Commission’, composed of the Secretary of Labor and Employment or his duly designated undersecretary, the SSS president and seven (7) appointive members, three (3) of whom shall represent the workers’ group, at least one of whom shall be a woman; three (3), the employers’ group, at least one (1) of whom shall be a woman; and one (1), the general public whose representative shall have adequate knowledge and experience regarding social security, to be appointed by the President of the Philippines. The six (6) members representing workers and employers shall be chosen from among the nominees of workers’ and employers’
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Transcript of Social Security Act of 1997 (RA 8282)
SOCIALSECURITYACTOF1997
REPUBLICACTNO.8282
ANACTFURTHERSTRENGTHENINGTHESOCIALSECURITYSYSTEMTHEREBYAMENDINGFORTHISPURPOSE,REPUBLICACTNO.1161,ASAMENDED,OTHERWISEKNOWNASTHESOCIALSECURITYLAW.
SECTION1.RepublicActNo.1161,asamended,otherwiseknownasthe"SocialSecurityLaw",isherebyfurtheramendedtoreadasfollows:
"SECTION1.ShortTitle.‐ThisActshallbeknownasthe"SocialSecurityActof1997."
"SEC.2.DeclarationofPolicy.‐ItisthepolicyoftheRepublicofthePhilippinestoestablish,develop,promoteandperfectasoundandviabletax‐exemptsocialsecurityservicesuitabletotheneedsofthepeoplethroughoutthePhilippineswhichshallpromotesocialjusticeandprovidemeaningfulprotectiontomembersandtheirbeneficiariesagainstthehazardsofdisability,sickness,maternity,oldage,death,andothercontingenciesresultinginlossofincomeorfinancialburden.Towardsthisend,theStateshallendeavortoextendsocialsecurityprotectiontoworkersandtheirbeneficiaries.
"SEC.3.SocialSecuritySystem.‐(a)TocarryoutthepurposesofthisAct,theSocialSecuritySystem,hereinafterreferredtoas‘SSS’,acorporatebody,withprincipalplaceofbusinessinMetroManila,Philippinesisherebycreated.TheSSSshallbedirectedandcontrolledbyaSocialSecurityCommission,hereinafterreferredtoas‘Commission’,composedoftheSecretaryofLaborandEmploymentorhisdulydesignatedundersecretary,theSSSpresidentandseven(7)appointivemembers,three(3)ofwhomshallrepresenttheworkers’group,atleastoneofwhomshallbeawoman;three(3),theemployers’group,atleastone(1)ofwhomshallbeawoman;andone(1),thegeneralpublicwhoserepresentativeshallhaveadequateknowledgeandexperienceregardingsocialsecurity,tobeappointedbythePresidentofthePhilippines.Thesix(6)membersrepresentingworkersandemployersshallbechosenfromamongthenomineesofworkers’andemployers’
organizations,respectively.TheChairmanoftheCommissionshallbedesignatedbythePresidentofthePhilippinesfromamongitsmembers.Thetermoftheappointivemembersshallbethree(3)years:Provided,Thatthetermsofthefirstsix(6)appointivemembersshallbeone(1),two(2)andthree(3)yearsforeverytwomembers,respectively:Provided,further,Thattheyshallcontinuetoholdofficeuntiltheirsuccessorsshallhavebeenappointedanddulyqualified.Allvacancies,priortotheexpirationoftheterm,shallbefilledfortheunexpiredtermonly.TheappointivemembersoftheCommissionshallreceiveatleasttwothousandfivehundredpesos(P2,500.00)perdiemforeachmeetingactuallyattendedbythembutnottoexceedTenthousandpesos(P10,000.00)amonth::Provided,ThatmembersoftheCommissionshallalsoreceiveaperdiemofatleastTwothousandfivehundredpesos(P2,500.00)butnottoexceedFifteenthousandpesos(P15,000.00)amonth:Provided,further,ThatsaidmembersoftheCommissionshallalsoreceivereasonabletransportationandrepresentationallowancesasmaybefixedbytheCommission,butnottoexceedTenthousandpesos(P10,000.00)amonth.
"(b)ThegeneralconductoftheoperationsandmanagementfunctionsoftheSSSshallbevestedintheSSSPresidentwhoshallserveasthechiefexecutiveofficerimmediatelyresponsibleforcarryingouttheprogramoftheSSSandthepoliciesoftheCommission.TheSSSPresidentshallbeapersonwhohashadpreviousexperienceinthetechnicalandadministrativefieldsrelatedtothepurposesofthisAct.HeshallbeappointedbythePresidentofthePhilippinesandshallreceivesalarytobefixedbytheCommissionwiththeapprovalofthePresidentofthePhilippines,payablefromthefundsoftheSSS.
"(c)TheCommission,upontherecommendationoftheSSSPresident,shallappointanactuary,andsuchotherpersonnelasmaybedeemednecessary,fixtheirreasonablecompensation,allowancesandotherbenefits,prescribetheirdutiesandestablishsuchmethodsandproceduresasmaybenecessarytoinsuretheefficient,honestandeconomicaladministrationoftheprovisionsandpurposesofthisAct:Provided,however,ThatthepersonneloftheSSSbelowtherankofVice‐PresidentshallbeappointedbytheSSSPresident:Provided,further,ThatthepersonnelappointedbytheSSSPresident,exceptthosebelowtherankofassistantmanager,shallbesubjecttotheconfirmationbytheCommission:Provided,further,ThatthepersonneloftheSSSshallbeselectedonlyfromcivilserviceeligiblesandbesubjecttocivilservicerulesandregulations:Provided,finally,ThattheSSSshallbeexemptfromtheprovisionsofRepublicActNo.6758andRepublicActNo.7430.
"SEC.4.PowersandDutiesoftheCommissionandSSS.‐(a)TheCommission.‐FortheattainmentofitsmainobjectivesassetforthinSection2hereof,theCommissionshallhavethefollowingpowersandduties:
"(1)Toadopt,amendandrescind,subjecttotheapprovalofthePresidentofthePhilippines,suchrulesandregulationsasmaybenecessarytocarryouttheprovisionsandpurposesofthisAct;
"(2)Toestablishaprovidentfundforthememberswhichwillconsistofvoluntarycontributionsofemployersand/oremployees,self‐employedandvoluntarymembersandtheirearnings,forthepaymentofbenefitstosuchmembersortheirbeneficiaries,subjecttosuchrulesandregulationsasitmaypromulgateandapprovedbythePresidentofthePhilippines;
"(3)TomaintainaprovidentfundwhichconsistsofcontributionsmadebyboththeSSSanditsofficialsandemployeesandtheirearnings,forthepaymentofbenefitstosuchofficialsandemployeesortheirheirsundersuchtermsandconditionsasitmayprescribe;
"(4)Toapproverestructuringproposalsforthepaymentofduebutunremittedcontributionsandunpaidloanamortizationsundersuchtermsandconditionsasitmayprescribe;
"(5)ToauthorizecooperativesregisteredwiththecooperativedevelopmentauthorityorassociationsregisteredwiththeappropriategovernmentagencytoactascollectingagentsoftheSSSwithrespecttotheirmembers:Provided,ThattheSSSshallaccreditthecooperativeorassociation:Provided,further,Thatthepersonsauthorizedtocollectarebonded;
"(6)Tocompromiseorrelease,inwholeorinpart,anyinterest,penaltyoranycivilliabilitytoSSSinconnectionwiththeinvestmentsauthorizedunderSection26hereof,undersuchtermsandconditionsasitmayprescribeandapprovedbythePresidentofthePhilippines;and
"(7)Toapprove,confirm,passuponorreviewanyandallactionsoftheSSSintheproperandnecessaryexerciseofitspowersanddutieshereinafterenumerated.
"(b)TheSocialSecuritySystem.‐SubjecttotheprovisionofSectionfour(4),paragraphseven(7)hereof,theSSSshallhavethefollowingpowersandduties:
"(1)TosubmitannuallynotlaterthanApril30,apublicreporttothePresidentofthePhilippinesandtotheCongressofthePhilippinescoveringitsactivitiesintheadministrationandenforcementofthisActduringtheprecedingyearincludinginformationandrecommendationsonbroadpoliciesforthedevelopmentandperfectionoftheprogramoftheSSS;
"(2)TorequiretheactuarytosubmitavaluationreportontheSSSbenefitprogrameveryfour(4)years,ormorefrequentlyasmaybenecessary,toundertakethenecessaryactuarialstudiesandcalculationsconcerningincreasesinbenefitstakingintoaccountinflationandthefinancialstabilityoftheSSS,andtoprovideforfeasibleincreasesinbenefitseveryfour(4)years,includingtheadditionofnewones,undersuchrulesandregulationsastheCommissionmayadopt,subjecttotheapprovalofthePresidentofthePhilippines:Provided,Thattheactuarialsoundnessofthereservefundshallbeguaranteed:Provided,further,Thatsuchincreasesinbenefitsshallnotrequireanyincreaseintherateofcontribution;
"(3)ToestablishofficesoftheSSStocoverasmanyprovinces,citiesandcongressionaldistricts,wheneverandwhereveritmaybeexpedient,necessaryandfeasible,andtoinspectorcausetobeinspectedperiodicallysuchoffices;
"(4)Toenterintoagreementsorcontractsforsuchserviceandaid,asmaybeneededfortheproper,efficientandstableadministrationoftheSSS;
"(5)Toadopt,fromtimetotime,abudgetofexpendituresincludingsalariesofpersonnel,againstallfundsavailabletotheSSSunderthisAct;
"(6)Tosetupitsaccountingsystemandprovidethenecessarypersonneltherefor;
"(7)Torequirereports,compilationsandanalysesofstatisticalandeconomicdataandtomakeinvestigationasmaybeneededfortheproperadministrationanddevelopmentoftheSSS;
"(8)Toacquireanddisposeofproperty,realorpersonal,whichmaybenecessaryorexpedientfortheattainmentofthepurposesofthisAct;
"(9)Toacquire,receive,orhold,bywayofpurchase,expropriationorotherwise,publicorprivatepropertyforthepurposeofundertakinghousingprojectspreferablyforthebenefitoflow‐incomemembersandforthemaintenanceofhospitalsandinstitutionsforthesick,agedanddisabled,aswellasschoolsforthemembersandtheirimmediatefamilies;
"(10)Tosueandbesuedincourt;and
"(11)ToperformsuchothercorporateactsasitmaydeemappropriatefortheproperenforcementofthisAct.
"SEC.5.SettlementofDisputes.‐(a)AnydisputearisingunderthisActwithrespecttocoverage,benefits,contributionsandpenaltiesthereonoranyothermatterrelatedthereto,shallbecognizablebytheCommission,andanycasefiledwithrespecttheretoshallbeheardbytheCommission,oranyofitsmembers,orbyhearingofficersdulyauthorizedbytheCommissionanddecidedwithintwenty(20)daysafterthesubmissionoftheevidence.Thefiling,determinationandsettlementofdisputesshallbegovernedbytherulesandregulationspromulgatedbytheCommission.
"(b)AppealtoCourts.‐AnydecisionoftheCommission,intheabsenceofanappealtherefromashereinprovided,shallbecomefinalandexecutoryfifteen(15)daysafterthedateofnotification,andjudicialreviewthereofshallbepermittedonlyafteranypartyclaimingtobeaggrievedtherebyhasexhaustedhisremediesbeforetheCommission.TheCommissionshallbedeemedtobeapartytoanyjudicialactioninvolvinganysuchdecision,andmayberepresentedbyanattorneyemployedbytheCommission,orwhenrequestedbytheCommission,bytheSolicitorGeneraloranypublicprosecutors.
"(c)CourtReview.‐ThedecisionoftheCommissionuponanydisputedmattermaybereviewedbothuponthelawandthefactsbytheCourtofAppeals.Forthepurposeofsuchreview,theprocedureconcerningappealsfromtheRegionalTrialCourtshallbefollowedasfaraspracticableandconsistentwiththepurposesofthisAct.AppealfromadecisionoftheCommissionmustbetakenwithinfifteen(15)
daysfromnotificationofsuchdecision.IfthedecisionoftheCommissioninvolvesonlyquestionsoflaw,thesameshallbereviewedbytheSupremeCourt.Noappealbondshallberequired.Thecaseshallbeheardinasummarymanner,andshalltakeprecedenceoverallcases,exceptthatintheSupremeCourt,criminalcaseswhereinlifeimprisonmentordeathhasbeenimposedbythetrialcourtshalltakeprecedence.NoappealshallactasasupersedeasorastayoftheorderoftheCommissionunlesstheCommissionitself,ortheCourtofAppealsortheSupremeCourt,shallsoorder.
"(d)ExecutionofDecisions.‐TheCommissionmay,motupropriooronmotionofanyinterestedparty,issueawritofexecutiontoenforceanyofitsdecisionsorawards,afterithasbecomefinalandexecutory,inthesamemannerasthedecisionoftheRegionalTrialCourtbydirectingthecityorprovincialsherifforthesheriffwhomitmayappointtoenforcesuchfinaldecisionorexecutesuchwrit;andanypersonwhoshallfailorrefusetocomplywithsuchdecision,awardorwrit,afterbeingrequiredtodososhall,uponapplicationbytheCommissionpursuanttoRule71oftheRulesofCourt,bepunishedforcontempt.
"SEC.6.AuditorandCounsel.‐(a)TheChairmanoftheCommissiononAuditshallbetheex‐officioAuditoroftheSSS.Heorhisrepresentativeshallcheckandauditalltheaccounts,fundsandpropertiesoftheSSSinthesamemannerandasfrequentlyastheaccounts,fundsandpropertiesofthegovernmentarecheckedandauditedunderexistinglaws,andheshallhave,asfaraspracticable,thesamepowersanddutiesashehaswithrespecttothecheckingandauditingofpublicaccounts,fundsandpropertiesingeneral.
"(b)TheSecretaryofJusticeshallbetheex‐officiocounseloftheSSS.Heorhisrepresentativeshallactaslegaladviserandcounselthereof.
"SEC.7.Oaths,Witnesses,andProductionofRecords.‐WhenauthorizedbytheCommission,anofficialoremployeethereofshallhavethepowertoadministeroathandaffirmation,takedepositions,certifytoofficialacts,andissuesubpoenaandsubpoenaducestecumtocompeltheattendanceofwitnessesandtheproductionofbooks,papers,correspondenceandotherrecordsdeemednecessaryasevidenceinconnectionwithanyquestionarisingunderthisAct.AnycaseofcontumacyshallbedealtwithbytheCommissioninaccordancewithlaw.
"SEC.8.TermsDefined.‐ForpurposesofthisAct,thefollowingtermsshall,unlessthecontextindicatesotherwise,havethefollowingmeanings:
"(a)SSS‐TheSocialSecuritySystemcreatedbythisAct.
"(b)Commission‐TheSocialSecurityCommissionashereincreated.
"(c)Employer‐Anyperson,naturalorjuridical,domesticorforeign,whocarriesoninthePhilippinesanytrade,business,industry,undertaking,oractivityofanykindandusestheservicesofanotherpersonwhoisunderhisordersasregardstheemployment,excepttheGovernmentandanyofitspoliticalsubdivisions,branchesorinstrumentalities,includingcorporationsownedorcontrolledbytheGovernment:Provided,Thataself‐employedpersonshallbebothemployeeandemployeratthesametime.
"(d)Employee‐Anypersonwhoperformsservicesforanemployerinwhicheitherorbothmentalorphysicaleffortsareusedandwhoreceivescompensationforsuchservices,wherethereisanemployer‐employeerelationship:Provided,Thataself‐employedpersonshallbebothemployeeandemployeratthesametime.
"(e)Dependents‐Thedependentsshallbethefollowing:
"(1)Thelegalspouseentitledbylawtoreceivesupportfromthemember;
"(2)Thelegitimate,legitimatedorlegallyadopted,andillegitimatechildwhoisunmarried,notgainfullyemployed,andhasnotreachedtwenty‐one(21)yearsofage,orifovertwenty‐one(21)yearsofage,heiscongenitallyorwhilestillaminorhasbeenpermanentlyincapacitatedandincapableofself‐support,physicallyormentally;and
"(3)Theparentwhoisreceivingregularsupportfromthemember.
"(f)Compensation‐Allactualremunerationforemployment,includingthemandatedcost‐of‐livingallowance,aswellasthecashvalueofanyremunerationpaidinanymediumotherthancashexceptthatpartoftheremunerationinexcessofthemaximumsalarycreditasprovidedunderSectionEighteenofthisAct.
"(g)Monthlysalarycredit‐ThecompensationbaseforcontributionsandbenefitsasindicatedinthescheduleinSectionEighteenofthisAct.
"(h)Monthly‐Theperiodfromoneendofthelastpayrollperiodoftheprecedingmonthtotheendofthelastpayrollperiodofthecurrentmonthifcompensationisonhourly,dailyorweeklybasis;ifonanyotherbasis,‘monthly’shallmeanaperiodofone(1)month.
"(i)Contribution‐TheamountpaidtotheSSSbyandonbehalfofthemembersinaccordancewithSectionEighteenofthisAct.
"(j)Employment‐Anyserviceperformedbyanemployeeforhisemployerexcept:
"(1)Employmentpurelycasualandnotforthepurposeofoccupationorbusinessoftheemployer;
"(2)ServiceperformedonorinconnectionwithanalienvesselbyanemployeeifheisemployedwhensuchvesselisoutsidethePhilippines;
"(3)ServiceperformedintheemployofthePhilippineGovernmentorinstrumentalityoragencythereof;
"(4)Serviceperformedintheemployofaforeigngovernmentorinternationalorganization,ortheirwholly‐ownedinstrumentality:Provided,however,Thatthisexemptionnotwithstanding,anyforeigngovernment,internationalorganizationortheirwholly‐ownedinstrumentalityemployingworkersinthePhilippinesoremployingFilipinosoutsideofthePhilippines,mayenterintoanagreementwiththePhilippineGovernmentfortheinclusionofsuchemployeesintheSSSexceptthosealreadycoveredbytheirrespectivecivilserviceretirementsystems:Provided,further,ThatthetermsofsuchagreementshallconformwiththeprovisionsofthisActoncoverageandamountofpaymentofcontributionsandbenefits:Provided,
finally,ThattheprovisionsofthisActshallbesupplementarytoanysuchagreement;and
"(5)SuchotherservicesperformedbytemporaryandotheremployeeswhichmaybeexcludedbyregulationoftheCommission.Employeesofbonafideindependentcontractorsshallnotbedeemedemployeesoftheemployerengagingtheserviceofsaidcontractors.
"(k)Beneficiaries‐Thedependentspouseuntilheorsheremarries,thedependentlegitimate,legitimatedorlegallyadopted,andillegitimatechildren,whoshallbetheprimarybeneficiariesofthemember:Provided,Thatthedependentillegitimatechildrenshallbeentitledtofiftypercent(50%)oftheshareofthelegitimate,legitimatedorlegallyadoptedchildren:Provided,further,Thatintheabsenceofthedependentlegitimate,legitimatedchildrenofthemember,his/herdependentillegitimatechildrenshallbeentitledtoonehundredpercent(100%)ofthebenefits.Intheirabsence,thedependentparentswhoshallbethesecondarybeneficiariesofthemember.Intheabsenceofalltheforegoing,anyotherpersondesignatedbythememberashis/hersecondarybeneficiary.
"(l)Contingency‐Theretirement,death,disability,injuryorsicknessandmaternityofthemember.
"(m)Averagemonthlysalarycredit‐Theresultobtainedbydividingthesumofthelastsixty(60)monthlysalarycreditsimmediatelyprecedingthesemesterofcontingencybysixty(60),ortheresultobtainedbydividingthesumofallthemonthlysalarycreditspaidpriortothesemesterofcontingencybythenumberofmonthlycontributionspaidinthesameperiod,whicheverisgreater:Provided,Thattheinjuryorsicknesswhichcausedthedisabilityshallbedeemedasthepermanentdisabilityforthepurposeofcomputingtheaveragemonthlysalarycredit.
"(n)Averagedailysalarycredit‐Theresultobtainedbydividingthesumofthesix(6)highestmonthlysalarycreditsinthetwelve‐monthperiodimmediatelyprecedingthesemesterofcontingencybyonehundredeighty(180).
"(o)Semester‐Aperiodoftwo(2)consecutivequartersendinginthequarterofcontingency.
"(p)Quarter‐Aperiodofthree(3)consecutivecalendarmonthsendingonthelastdayofMarch,June,SeptemberandDecember.
"(q)Creditedyearsofservice‐ForamembercoveredpriortoJanuarynineteenhundredandeightyfive(1985)minusthecalendaryearofcoverageplusthenumberofcalendaryearsinwhichsix(6)ormorecontributionshavebeenpaidfromJanuarynineteenhundredandeightyfive(1985)uptothecalendaryearcontainingthesemesterpriortothecontingency.ForamembercoveredinorafterJanuarynineteenhundredandeightyfive(1985),thenumberofcalendaryearsinwhichsix(6)ormorecontributionshavebeenpaidfromtheyearofcoverageuptothecalendaryearcontainingthesemesterpriortothecontingency:Provided,ThattheCommissionmayprovideforadifferentnumberofcontributionsinacalendaryearforittobeconsideredasacreditedyearofservice.
"(r)Member‐TheworkerwhoiscoveredunderSectionNineandSectionNine‐AofthisAct.
"(s)Self‐employed‐Anypersonwhoseincomeisnotderivedfromemployment,asdefinedunderthisAct,aswellasthoseworkersenumeratedinSectionNine‐Ahereof.
"(t)Netearnings‐Netincomebeforeincometaxesplusnon‐cashchargessuchasdepreciationanddepletionappearingintheregularfinancialstatementoftheissuingorassuminginstitution.
"(u)Fixedcharges‐Recurringexpensesuchasamortizationofdebtdiscountorrentalsforleasedproperties,includinginterestonfundedandunfundeddebt.
"SEC.9.Coverage.‐(a)CoverageintheSSSshallbecompulsoryuponallemployeesnotoversixty(60)yearsofageandtheiremployers:Provided,Thatinthecaseofdomestichelpers,theirmonthlyincomeshallnotbelessthanOnethousandpesos(P1,000.00)amonth:Provided,further,ThatanybenefitalreadyearnedbytheemployeesunderprivatebenefitplansexistingatthetimeoftheapprovalofthisActshallnotbediscontinued,reducedorotherwiseimpaired:Provided,further,ThatprivateplanswhichareexistingandinforceatthetimeofcompulsorycoverageshallbeintegratedwiththeplanoftheSSSinsuchawaywheretheemployer’scontributiontohisprivateplanismorethanthatrequiredofhiminthisAct,heshall
paytotheSSSonlythecontributionrequiredofhimandheshallcontinuehiscontributiontosuchprivateplanlesshiscontributiontotheSSSsothattheemployer’stotalcontributiontohisbenefitplanandtotheSSSshallbethesameashiscontributiontohisprivatebenefitplanbeforethecompulsorycoverage:Provided,further,Thatanychanges,adjustments,modifications,eliminationsorimprovementsinthebenefitstobeavailableundertheremainingprivateplan,whichmaybenecessarytoadoptbyreasonofthereducedcontributionstheretoasaresultoftheintegration,shallbesubjecttoagreementsbetweentheemployersandemployeesconcerned:Provided,further,Thattheprivatebenefitplanwhichtheemployershallcontinueforhisemployeesshallremainundertheemployer’smanagementandcontrolunlessthereisanexistingagreementtothecontrary:Provided,finally,ThatnothinginthisActshallbeconstruedasalimitationontherightofemployersandemployeestoagreeonandadoptbenefitswhichareoverandabovethoseprovidedunderthisAct.
"(b)Spouseswhodevotefulltimetomanagingthehouseholdandfamilyaffairs,unlesstheyarealsoengagedinothervocationoremploymentwhichissubjecttomandatorycoverage,maybecoveredbytheSSSonavoluntarybasis.
"(c)Filipinosrecruitedbyforeign‐basedemployersforemploymentabroadmaybecoveredbytheSSSonavoluntarybasis.
"SEC.9‐A.CompulsoryCoverageoftheSelf‐Employed.‐CoverageintheSSSshallalsobecompulsoryuponsuchself‐employedpersonsasmaybedeterminedbytheCommissionundersuchrulesandregulationsasitmayprescribe,includingbutnotlimitedtothefollowing:
"1.Allself‐employedprofessionals;
"2.Partnersandsingleproprietorsofbusinesses;
"3.Actorsandactresses,directors,scriptwritersandnewscorrespondentswhodonotfallwithinthedefinitionoftheterm"employee"inSection8(d)ofthisAct;
"4.Professionalathletes,coaches,trainersandjockeys;and
"5.Individualfarmersandfishermen.
"Unlessotherwisespecifiedherein,allprovisionsofthisActapplicabletocoveredemployeesshallalsobeapplicabletothecoveredself‐employedpersons.
"SEC.10.EffectiveDateofCoverage.‐Compulsorycoverageoftheemployershalltakeeffectonthefirstdayofhisoperationandthatoftheemployeeonthedayofhisemployment:Provided,Thatthecompulsorycoverageoftheself‐employedpersonshalltakeeffectuponhisregistrationwiththeSSS.
"SEC.11.EffectofSeparationfromEmployment.‐Whenanemployeeundercompulsorycoverageisseparatedfromemployment,hisemployer’scontributiononhisaccountandhisobligationtopaycontributionsarisingfromthatemploymentshallceaseattheendofthemonthofseparation,butsaidemployeeshallbecreditedwithallcontributionspaidonhisbehalfandentitledtobenefitsaccordingtotheprovisionsofthisAct.Hemay,however,continuetopaythetotalcontributionstomaintainhisrighttofullbenefit.
"SEC.11‐A.EffectofInterruptionofBusinessorProfessionalIncome.‐Iftheself‐employedrealizesnoincomeinanygivenmonth,heshallnotberequiredtopaycontributionsforthatmonth.Hemay,however,beallowedtocontinuepayingcontributionsunderthesamerulesandregulationsapplicabletoaseparatedemployeemember:Provided,ThatnoretroactivepaymentofcontributionsshallbeallowedotherthanasprescribedunderSectionTwenty‐two‐Ahereof.
"SEC.12.MonthlyPension.‐(a)Themonthlypensionshallbethehighestofthefollowingamounts:
"(1)Thesumofthefollowing:
"(i)Threehundredpesos(P300.00;plus
"(ii)Twentypercent(20%)oftheaveragemonthlysalarycredit;plus
"(iii)Twopercent(2%)oftheaveragemonthlysalarycreditforeachcreditedyearofserviceinexcessoften(10)years;or
"(2)Forthpercent(40%)oftheaveragemonthlysalarycredit;or
"(3)Onethousandpesos(P1,000.00):Provided,Thatthemonthlypensionshallinnocasebepaidforanaggregateamountoflessthansixty(60)months.
"(b)Notwithstandingtheprecedingparagraph,theminimumpensionshallbeOnethousandtwohundredpesos(P1,200.00)formemberswithatleastten(10)creditedyearsofserviceandTwothousandfourhundredpesos(P2,400.00)forthosewithtwenty(20)creditedyearsofservice.
"SEC.12‐A.Dependents’Pension.‐Wheremonthlypensionispayableonaccountofdeath,permanenttotaldisabilityorretirement,dependents’pensionequivalenttotenpercent(10%)ofthemonthlypensionorTwohundredfiftypesos(P250.00),whicheverishigher,shallalsobepaidforeachdependentchildconceivedonorbeforethedateofthecontingencybutnotexceedingfive(5),beginningwiththeyoungestandwithoutsubstitution:Provided,Thatwheretherearelegitimateorillegitimatechildren,theformershallbepreferred.
SEC.12‐B.RetirementBenefits.‐(a)Amemberwhohaspaidatleastonehundredtwenty(120)monthlycontributionspriortothesemesterofretirementandwho:(1)hasreachedtheageofsixty(60)yearsandisalreadyseparatedfromemploymentorhasceasedtobeself‐employed;or(2)hasreachedtheageofsixty‐five(65)years,shallbeentitledforaslongashelivestothemonthlypension:Provided,Thatheshallhavetheoptiontoreceivehisfirsteighteen(18)monthlypensionsinlumpsumdiscountedatapreferentialrateofinteresttobedeterminedbytheSSS.
"(b)Acoveredmemberwhoissixty(60)yearsoldatretirementandwhodoesnotqualifyforpensionbenefitsunderparagraph(a)above,shallbeentitledtoalumpsumbenefitequaltothetotalcontributionspaidbyhimandonhisbehalf:Provided,
ThatheisseparatedfromemploymentandisnotcontinuingpaymentofcontributionstotheSSSonhisown.
"(c)Themonthlypensionshallbesuspendeduponthereemploymentorresumptionofself‐employmentofaretiredmemberwhoislessthansixty‐five(65)yearsold.HeshallagainbesubjecttoSectionEighteenandhisemployertoSectionNineteenofthisAct.
"(d)Uponthedeathoftheretiredmember,hisprimarybeneficiariesasofthedateofhisretirementshallbeentitledtoreceivethemonthlypension:Provided,Thatifhehasnoprimarybeneficiariesandhedieswithinsixty(60)monthsfromthestartofhismonthlypension,hissecondarybeneficiariesshallbeentitledtoalumpsumbenefitequivalenttothetotalmonthlypensionscorrespondingtothebalanceofthefive‐yearguaranteedperiod,excludingthedependents’pension.
"(e)Themonthlypensionofamemberwhoretiresafterreachingagesixty(60)shallbethehigherofeither:(1)themonthlypensioncomputedattheearliesttimehecouldhaveretiredhadhebeenseparatedfromemploymentorceasedtobeself‐employedplusalladjustmentsthereto;or(2)themonthlypensioncomputedatthetimewhenheactuallyretires.
"SEC.13.DeathBenefits.‐Uponthedeathofamemberwhohaspaidatleastthirty‐six(36)monthlycontributionspriortothesemesterofdeath,hisprimarybeneficiariesshallbeentitledtothemonthlypension:Provided,Thatifhehasnoprimarybeneficiaries,hissecondarybeneficiariesshallbeentitledtoalumpsumbenefitequivalenttothirty‐six(36)timesthemonthlypension.Ifhehasnotpaidtherequiredthirty‐six(36)monthlycontributions,hisprimaryorsecondarybeneficiariesshallbeentitledtoalumpsumbenefitequivalenttothemonthlypensiontimesthenumberofmonthlycontributionspaidtotheSSSortwelve(12)timesthemonthlypension,whicheverishigher.
"SEC.13‐A.PermanentDisabilityBenefits.‐(a)Uponthepermanenttotaldisabilityofamemberwhohaspaidatleastthirty‐six(36)monthlycontributionspriortothesemesterofdisability,heshallbeentitledtothemonthlypension:Provided,Thatifhehasnotpaidtherequiredthirty‐six(36)monthlycontributions,heshallbeentitledtoalumpsumbenefitequivalenttothemonthlypensiontimesthenumberofmonthlycontributionspaidtotheSSSortwelve(12)timesthemonthlypension,whicheverishigher.Amemberwho(1)hasreceivedalumpsumbenefit;and(2)is
reemployedorhasresumedself‐employmentnotearlierthanone(1)yearfromthedateofhisdisabilityshallagainbesubjecttocompulsorycoverageandshallbeconsideredanewmember.
"(b)Themonthlypensionanddependents’pensionshallbesuspendeduponthereemploymentorresumptionofself‐employmentortherecoveryofthedisabledmemberfromhispermanenttotaldisabilityorhisfailuretopresenthimselfforexaminationatleastonceayearuponnoticebytheSSS.
"(c)Uponthedeathofthepermanenttotaldisabilitypensioner,hisprimarybeneficiariesasofthedateofdisabilityshallbeentitledtoreceivethemonthlypension:Provided,Thatifhehasnoprimarybeneficiariesandhedieswithinsixty(60)monthsfromthestartofhismonthlypension,hissecondarybeneficiariesshallbeentitledtoalumpsumbenefitequivalenttothetotalmonthlypensionscorrespondingtothebalanceofthefive‐yearguaranteedperiodexcludingthedependents’pension.
"(d)Thefollowingdisabilitiesshallbedeemedpermanenttotal:
"1.Completelossofsightofbotheyes;
"2.Lossoftwolimbsatorabovetheankleorwrists;
"3.Permanentcompleteparalysisoftwolimbs;
"4.Braininjuryresultingtoincurableimbecilityorinsanity;and
"5.SuchcasesasdeterminedandapprovedbytheSSS.
"(e)Ifthedisabilityispermanentpartial,andsuchdisabilityoccursbeforethirty‐six(36)monthlycontributionshavebeenpaidpriortothesemesterofdisability,thebenefitshallbesuchpercentageofthelumpsumbenefitdescribedintheprecedingparagraphwithdueregardtothedegreeofdisabilityastheCommissionmaydetermine.
"(f)Ifthedisabilityispermanenttotalandsuchdisabilityoccursafterthirty‐six(36)monthlycontributionshavebeenpaidpriortothesemesterofdisability,thebenefitshallbethemonthlypensionforpermanenttotaldisabilitypayablenotlongerthantheperioddesignatedinthefollowingschedule:
COMPLETE
ANDPERMANENTNUMBEROF
LOSSOFUSEOFMONTHS
Onethumb10
Oneindexfinger8
Onemiddlefinger6
Oneringfinger5
Onelittlefinger3
Onebigtoe6
Onehand39
Onearm50
Onefoot31
Oneleg46
Oneear10
Bothears20
Hearingofoneear10
Hearingofbothears50
Sightofoneeye25
"(g)Thepercentagedegreeofdisabilitywhichisequivalenttotheratiothatthedesignatednumberofmonthsofcompensabilitybearstoseventy‐five(75),roundedtothenexthigherinteger,shallnotbeadditivefordistinct,separateandunrelatedpermanentpartialdisabilities,butshallbeadditivefordeterioratingandrelatedpermanentpartialdisabilitiestoamaximumofonehundredpercent(100%),inwhichcase,themembershallbedeemedaspermanentlytotallydisabled.
"(h)Incaseofpermanentpartialdisability,themonthlypensionbenefitshallbegiveninlumpsumifitispayableforlessthantwelve(12)months.
"(i)Forthepurposeofadjudicatingretirement,deathandpermanenttotaldisabilitypensionbenefits,contributionsshallbedeemedpaidforthemonthsduringwhichthememberreceivedpartialdisabilitypension:Provided,Thatsuchcontributionsshallbebasedonhislastcontributionpriortohisdisability.
"(j)Shouldamemberwhoisonpartialdisabilitypensionretireordie,hisdisabilitypensionshallceaseuponhisretirementordeath.
"SEC.13‐B.FuneralBenefit.‐AfuneralgrantequivalenttoTwelvethousandpesos(P12,000.00)shallbepaid,incashorinkind,tohelpdefraythecostoffuneralexpensesuponthedeathofamember,includingpermanentlytotallydisabledmemberorretiree.
"SEC.14.SicknessBenefit.‐(a)Amemberwhohaspaidatleastthree(3)monthlycontributionsinthetwelve‐monthperiodimmediatelyprecedingthesemesterofsicknessorinjuryandisconfinedthereforformorethanthree(3)daysinahospitalorelsewherewiththeapprovaloftheSSS,shall,foreachdayofcompensableconfinementorafractionthereof,bepaidbyhisemployer,ortheSSS,ifsuchpersonisunemployedorself‐employed,adailysicknessbenefitequivalenttoninetypercent(90%)ofhisaveragedailysalarycredit,subjecttothefollowingconditions:
"(1)Innocaseshallthedailysicknessbenefitbepaidlongerthanonehundredtwenty(120)daysinone(1)calendaryear,norshallanyunusedportionoftheonehundredtwenty(120)daysofsicknessbenefitgrantedunderthissectionbecarriedforwardandaddedtothetotalnumberofcompensabledaysallowableinthesubsequentyear;
"(2)Thedailysicknessbenefitshallnotbepaidformorethantwohundredforty(240)daysonaccountofthesameconfinement;and
"(3)Theemployeemembershallnotifyhisemployerofthefactofhissicknessorinjurywithinfive(5)calendardaysafterthestartofhisconfinementunlesssuchconfinementisinahospitalortheemployeebecamesickorwasinjuredwhile
workingorwithinthepremisesoftheemployerinwhichcase,notificationtotheemployerisnecessary:Provided,Thatifthememberisunemployedorself‐employed,heshalldirectlynotifytheSSSofhisconfinementwithinfive(5)calendardaysafterthestartthereofunlesssuchconfinementisinahospitalinwhichcasenotificationisalsonotnecessary:Provided,further,Thatincaseswherenotificationisnecessary,theconfinementshallbedeemedtohavestartednotearlierthanthefifthdayimmediatelyprecedingthedateofnotification.
"(b)Thecompensableconfinementshallbeginonthefirstdayofsickness,andthepaymentofsuchallowancesshallbepromptlymadebytheemployereveryregularpaydayoronthefifteenthandlastdayofeachmonth,andsimilarlyinthecaseofdirectpaymentbytheSSS,foraslongassuchallowancesaredueandpayable:Provided,Thatsuchallowanceshallbeginonlyafterallsickleavesofabsencewithfullpaytothecreditoftheemployeemembershallhavebeenexhausted.
"(c)Onehundredpercent(100%)ofthedailybenefitsprovidedintheprecedingparagraphshallbereimbursedbytheSSStosaidemployeruponreceiptofsatisfactoryproofofsuchpaymentandlegalitythereof:Provided,ThattheemployerhasnotifiedtheSSSoftheconfinementwithinfive(5)calendardaysafterreceiptofthenotificationfromtheemployeemember:Provided,further,ThatifthenotificationtotheSSSismadebytheemployerbeyondfive(5)calendardaysafterreceiptofthenotificationfromtheemployeemember,saidemployershallbereimbursedonlyforeachdayofconfinementstartingfromthetenthcalendardayimmediatelyprecedingthedateofnotificationtotheSSS:Provided,finally,ThattheSSSshallreimbursetheemployerorpaytheunemployedmemberonlyforconfinementwithintheone‐yearperiodimmediatelyprecedingthedatetheclaimforbenefitorreimbursementisreceivedbytheSSS,exceptconfinementinahospitalinwhichcasetheclaimforbenefitorreimbursementmustbefiledwithinone(1)yearfromthelastdayofconfinement.
"(d)WheretheemployeememberhasgiventherequirednotificationbuttheemployerfailstonotifytheSSSoftheconfinementortofiletheclaimforreimbursementwithintheperiodprescribedinthissectionresultinginthereductionofthebenefitordenialoftheclaim,suchemployershallhavenorighttorecoverthecorrespondingdailyallowanceheadvancedtotheemployeememberasrequiredinthissection.
"(e)TheclaimofreimbursementshallbeadjudicatedbytheSSSwithinaperiodoftwo(2)monthsfromreceiptthereof:Provided,Thatshouldnopaymentbereceivedbytheemployerwithinone(1)monthaftertheperiodprescribedhereinfor
adjudication,thereimbursementshallthereafterearnsimpleinterestofonepercent(1%)permonthuntilpaid.
"(f)TheprovisionsregardingthenotificationrequiredofthememberandtheemployeraswellastheperiodwithinwhichtheclaimforbenefitorreimbursementmaybefiledshallapplytoallclaimsfiledwiththeSSS.
"SEC.14‐A.MaternityLeaveBenefit.‐Afemalememberwhohaspaidatleastthree(3)monthlycontributionsinthetwelve‐monthperiodimmediatelyprecedingthesemesterofherchildbirthormiscarriageshallbepaidadailymaternitybenefitequivalenttoonehundredpercent(100%)ofheraveragedailysalarycreditforsixty(60)daysorseventy‐eight(78)daysincaseofcaesariandelivery,subjecttothefollowingconditions:
"(a)Thattheemployeeshallhavenotifiedheremployerofherpregnancyandtheprobabledateofherchildbirth,whichnoticeshallbetransmittedtotheSSSinaccordancewiththerulesandregulationsitmayprovide;
"(b)Thefullpaymentshallbeadvancedbytheemployerwithinthirty(30)daysfromthefilingofthematernityleaveapplication;
"(c)ThatpaymentofdailymaternitybenefitsshallbeabartotherecoveryofsicknessbenefitsprovidedbythisActforthesameperiodforwhichdailymaternitybenefitshavebeenreceived;
"(d)Thatthematernitybenefitsprovidedunderthissectionshallbepaidonlyforthefirstfour(4)deliveriesormiscarriages;
"(e)ThattheSSSshallimmediatelyreimbursetheemployerofonehundredpercent(100%)oftheamountofmaternitybenefitsadvancedtotheemployeebytheemployeruponreceiptofsatisfactoryproofofsuchpaymentandlegalitythereof;and
"(f)ThatifanemployeemembershouldgivebirthorsuffermiscarriagewithouttherequiredcontributionshavingbeenremittedforherbyheremployertotheSSS,orwithoutthelatterhavingbeenpreviouslynotifiedbytheemployerofthetimeofthepregnancy,theemployershallpaytotheSSSdamagesequivalenttothebenefitswhichsaidemployeememberwouldotherwisehavebeenentitledto.
"SEC.15.Non‐TransferabilityofBenefits.‐TheSSSshallpromptlypaythebenefitsprovidedinthisActtosuchpersonsasmaybeentitledtheretoinaccordancewiththeprovisionsofthisAct:Provided,ThattheSSSshallpaytheretirementbenefitsonthedayofcontingencytoqualifiedmemberswhohavesubmittedthenecessarydocumentsatleastsix(6)monthsbefore:Provided,further,ThatthebeneficiarywhoisanationalofaforeigncountrywhichdoesnotextendbenefitstoaFilipinobeneficiaryresidinginthePhilippines,orwhichisnotrecognizedbythePhilippines,shallnotbeentitledtoreceiveanybenefitunderthisAct:Provided,further,Thatnotwithstandingtheforegoing,wherethebestinterestoftheSSSwillbeserved,theCommissionmaydirectpaymentswithoutregardtonationalityorcountryofresidence:Provided,further,Thatiftherecipientisaminororapersonincapableofadministeringhisownaffairs,theCommissionshallappointarepresentativeundersuchtermsandconditionsasitmaydeemproper:Provided,further,Thatsuchappointmentshallnotbenecessaryincasetherecipientisunderthecustodyoforlivingwiththeparentsorspouseofthememberinwhichcasethebenefitsshallbepaidtosuchparentsorspouse,asrepresentativepayeeoftherecipient.Suchbenefitsarenottransferableandnopowerofattorneyorotherdocumentexecutedbythoseentitledtheretoinfavorofanyagent,attorneyoranyotherpersonforthecollectionthereofontheirbehalfshallberecognized,exceptwhentheyarephysicallyunabletocollectpersonallysuchbenefits:Provided,further,Thatincaseofdeathbenefits,ifnobeneficiaryqualifiesunderthisAct,saidbenefitsshallbepaidtothelegalheirsinaccordancewiththelawofsuccession.
"SEC.16.ExemptionfromTax,LegalProcessandLien.‐‐Alllawstothecontrarynotwithstanding,theSSSandallitsassetsandproperties,allcontributionscollectedandallaccrualstheretoandincomeorinvestmentearningstherefromaswellasallsupplies,equipment,papersordocumentsshallbeexemptfromanytax,assessment,fee,charge,orcustomsorimportduty;andallbenefitpaymentsmadebytheSSSshalllikewisebeexemptfromallkindsoftaxes,feesorcharges,andshallnotliabletoattachments,garnishments,levyorseizurebyorunderanylegalorequitableprocesswhatsoever,eitherbeforeorafterreceiptbythepersonorpersonsentitledthereto,excepttopayanydebtofthemembertotheSSS.NotaxmeasureofwhatevernatureenactedshallapplytotheSSS,unlessitexpresslyrevokesthedeclaredpolicyoftheStateinSection2hereofgrantingtax‐exemptiontotheSSS.AnytaxassessmentimposedagainsttheSSSshallbenullandvoid.(AsamendedbySec.9,P.D.No.24,S.1972;andSec.14,P.D.No.735,S.1975).
"SEC.17.FeeofAgents,Attorneys,Etc.‐Noagent,attorneyorotherpersoninchargeofthepreparation,filingorpursuinganyclaimforbenefitunderthisActshalldemandorchargeforhisservicesanyfee,andanystipulationtothecontraryshallbenullandvoid.TheretentionordeductionofanyamountfromanybenefitgrantedunderthisActforthepaymentoffeesforsuchservicesisprohibited:Provided,however,ThatanymemberofthePhilippineBarwhoappearsascounselinanycaseheardbytheCommissionshallbeentitledtoattorneys’feesnotexceedingtenpercent(10%)ofthebenefitsawardedbytheCommission,whichfeesshallnotbepayablebeforetheactualpaymentofthebenefits,andanystipulationtothecontraryshallbenullandvoid.
"AnyviolationoftheprovisionsofthisSectionshallbepunishedbyafineofnotlessthanFivehundredpesos(P500.00)normorethanFivethousandpesos(P5,000.00),orimprisonmentfornotlessthansix(6)monthsnormorethanone(1)year,orboth,atthediscretionofthecourt.
"SEC.18.Employee’sContributions.‐(a)Beginningasofthelastdayofthecalendarmonthwhenanemployee’scompulsorycoveragetakeseffectandeverymonththereafterduringhisemployment,theemployershalldeductandwithholdfromsuchemployee’smonthlysalary,wage,compensationorearnings,theemployee’scontributioninanamountcorrespondingtohissalary,wage,compensationorearningsduringthemonthinaccordancewiththefollowingschedule:
SALARYRANGEOFMONTHLYMONTHLYCONTRIBUTION
BRACKETCOMPENSATIONSALARY
CREDITEMPLOYEREMPLOYEETOTAL
I1,000.00‐1,249.99100050.7033.3084.00
II1,250.00‐1,749.99150076.0050.00126.00
III1,750.00‐2,249.992000101.3066.70168.00
IV2,250.00‐2,749.992500126.7083.30210.00
V2,750.00‐3,249.993000152.00100.00252.00
VI3,250.00‐3,749.993500177.30116.70294.00
VII3,750.00‐4,249.994000202.70133.30336.00
VIII4,250.00‐4,749.994500228.00150.00378.00
IX4,750.00‐5,249.995000253.30166.70420.00
X5,250.00‐5,749.995500278.70183.70462.40
XI5,750.00‐6,249.996000304.00200.00504.00
XII6,250.00‐6,749.996500329.30216.78546.00
XIII6,750.00‐7,249.997000354.70233.30588.00
XIV7,250.00‐7,749.997500380.00250.00630.00
XV7,750.00‐8.249.998000403.30266.70672.00
XVI8,250.00‐8,749.998500430.70283.30714.00
XVII8,750.00‐OVER9000456.00300.00756.00
"Theforegoingscheduleofcontributionshallalsoapplytoself‐employedandvoluntarymembers.
"ThemaximummonthlysalarycreditshallbeNinethousandpesos(P9,000.00)effectiveJanuaryNineteenhundredandninetysix(1996);Provided,ThatitshallbeincreasedbyOnethousandpesos(P1,000.00)everyyearthereafteruntilitshallhavereachedTwelvethousandpesos(P12,000.00)byNineteenhundredandninetynine(1999):Provided,further,ThattheminimumandmaximummonthlysalarycreditsaswellastherateofcontributionsmaybefixedfromtimetotimebytheCommissionthroughrulesandregulationstakingintoconsiderationactuarialcalculationsandrateofbenefits,subjecttotheapprovalofthePresidentofthePhilippines.
"SEC.19.Employer’sContributions.‐(a)Beginningasofthelastdayofthemonthwhenanemployee’scompulsorycoveragetakeseffectandeverymonththereafterduringhisemployment,hisemployershallpay,withrespecttosuchcoveredemployee,theemployer’scontributioninaccordancewiththescheduleindicatedinSectionEighteenofthisAct.Notwithstandinganycontracttothecontrary,anemployershallnotdeduct,directlyorindirectly,fromthecompensationofhisemployeescoveredbytheSSSorotherwiserecoverfromthemtheemployer’scontributionswithrespecttosuchemployees.
"(b)TheremittanceofsuchcontributionsbytheemployershallbesupportedbyaquarterlycollectionlisttobesubmittedtotheSSSattheendofeachcalendarquarterindicatingthecorrectIDnumberoftheemployer,thecorrectnamesandtheSSSnumbersoftheemployeesandthetotalcontributionspaidfortheiraccountduringthequarter.
"SEC.19‐A.ContributionsoftheSelf‐EmployedMember.‐ThecontributionstotheSSSoftheself‐employedmembershallbedeterminedinaccordancewithSectionEighteenofthisAct:Provided,Thatthemonthlyearningsdeclaredbytheself‐employedmemberatthetimeofhisregistrationwiththeSSSshallbeconsideredashismonthlycompensationandheshallpayboththeemployerandtheemployeecontributions:Provided,further,Thatthecontributionsofself‐employedpersonsearningOnethousandpesos(P1,000.00)monthlyorbelowmaybereducedbytheCommission.
"Themonthlyearningsdeclaredbytheself‐employedmemberatthetimeofhisregistrationshallremainthebasisofhismonthlysalarycredit,unlesshemakesanotherdeclarationofhismonthlyearnings,inwhichcasesuchlatestdeclarationbecomesthenewbasisofhismonthlysalarycredit.
"SEC.20.GovernmentContribution.‐AsthecontributionoftheGovernmenttotheoperationoftheSSS,CongressshallannuallyappropriateoutofanyfundsintheNationalTreasurynototherwiseappropriated,thenecessarysumorsumstomeettheestimatedexpensesoftheSSSforeachensuingyear.Inadditiontothiscontribution,CongressshallappropriatefromtimetotimesuchsumorsumsasmaybeneededtoassurethemaintenanceofanadequateworkingbalanceofthefundsoftheSSSasdisclosedbysuitableperiodicactuarialstudiestobemadeoftheoperationsoftheSSS.
"SEC.21.GovernmentGuarantee.‐‐ThebenefitsprescribedinthisActshallnotbediminishedandtoguaranteesaidbenefitstheGovernmentoftheRepublicofthePhilippinesacceptsgeneralresponsibilityforthesolvencyoftheSSS.
"SEC.22.RemittanceofContributions.‐‐(a)ThecontributionsimposedintheprecedingSectionshallberemittedtotheSSSwithinthefirstten(10)daysofeachcalendarmonthfollowingthemonthforwhichtheyareapplicableorwithinsuchtimeastheCommissionmayprescribe.Everyemployerrequiredtodeductandto
remitsuchcontributionsshallbeliablefortheirpaymentandifanycontributionisnotpaidtotheSSSashereinprescribed,heshallpaybesidesthecontributionapenaltythereonofthreepercent(3%)permonthfromthedatethecontributionfallsdueuntilpaid.IfdeemedexpedientandadvisablebytheCommission,thecollectionandremittanceofcontributionsshallbemadequarterlyorsemi‐annuallyinadvance,thecontributionspayablebytheemployeestobeadvancedbytheirrespectiveemployers:Provided,Thatuponseparationofanemployee,anycontributionsopaidinadvancebutnotdueshallbecreditedorrefundedtohisemployer.
"(b)ThecontributionspayableunderthisActincaseswhereanemployerrefusesorneglectstopaythesameshallbecollectedbytheSSSinthesamemannerastaxesaremadecollectibleundertheNationalInternalRevenueCode,asamended.Failureorrefusaloftheemployertopayorremitthecontributionshereinprescribedshallnotprejudicetherightofthecoveredemployeetothebenefitsofthecoverage.
"Therighttoinstitutethenecessaryactionagainsttheemployermaybecommencedwithintwenty(20)yearsfromthetimethedelinquencyisknownortheassessmentismadebytheSSS,orfromthetimethebenefitaccrues,asthecasemaybe.
"(c)Shouldanyperson,naturalorjuridical,defaultinanypaymentofcontributions,theCommissionmayalsocollectthesameineitherofthefollowingways:
"1.Byanactionincourt,whichshallhearanddisposeofthecaseinpreferencetoanyothercivilaction;or
"2.ByissuingawarranttotheSheriffofanyprovinceorcitycommandinghimtolevyuponandsellanyrealandpersonalpropertyofthedebtor.TheSheriff’ssalebyvirtueofsaidwarrantshallbegovernedbythesameprocedureprescribedforexecutionsagainstpropertyuponjudgmentsbyacourtofrecord.
"(d)Thelastcompleterecordofmonthlycontributionspaidbytheemployerortheaverageofthemonthlycontributionspaidduringthepastthree(3)yearsasofthedateoffilingoftheactionforcollectionshallbepresumedtobethemonthlycontributionspayablebyandduefromtheemployertotheSSSforeachoftheunpaidmonth,unlesscontradictedandovercomebyotherevidence:Provided,That
theSSSshallnotbebarredfromdeterminingandcollectingthetrueandcorrectcontributionsduetheSSSevenafterfullpaymentpursuanttothisparagraph,norshalltheemployerberelievedofhisliabilityunderSectionTwenty‐eightofthisAct.
"SEC.22‐A.RemittanceofContributionsofSelf‐EmployedMember.‐Self‐employedmembersshallremittheirmonthlycontributionsquarterlyonsuchdatesandschedulesastheCommissionmayspecifythroughrulesandregulations:Provided,Thatnoretroactivepaymentofcontributionsshallbeallowed,exceptasprovidedinthisSection.
"SEC.23.MethodofCollectionandPayment.‐TheSSSshallrequireacompleteandpropercollectionandpaymentofcontributionsandproperidentificationoftheemployerandtheemployee.Paymentmaybemadeincash,checks,stamps,coupons,tickets,orotherreasonabledevicesthattheCommissionmayadopt.
"SEC.24.EmploymentRecordsandReports.‐(a)EachemployershallimmediatelyreporttotheSSSthenames,ages,civilstatus,occupations,salariesanddependentsofallhisemployeeswhoaresubjecttocompulsorycoverage:Provided,Thatifanemployeesubjecttocompulsorycoverageshoulddieorbecomesickordisabledorreachtheageofsixty(60)withouttheSSShavingpreviouslyreceivedanyreportorwrittencommunicationabouthimfromhisemployer,thesaidemployershallpaytotheSSSdamagesequivalenttothebenefitstowhichsaidemployeememberwouldhavebeenentitledhadhisnamebeenreportedontimebytheemployertotheSSS,exceptthatincaseofpensionbenefits,theemployershallbeliabletopaytheSSSdamagesequivalenttotheaccumulatedpensiondueasofthedateofsettlementoftheclaimortothefive(5)years’pension,includingdependents’pension:Provided,further,Thatifthecontingencyoccurswithinthirty(30)daysfromthedateofemployment,theemployershallberelievedofhisliabilityfordamages:Provided,further,ThatanypersonorentityengagingtheservicesofanindependentcontractorshallbesubsidiarilyliablewithsuchcontractorforanycivilliabilityincurredbythelatterunderthisAct:Provided,finally,Thatthesamepersonorentityengagingtheservicesofanindependentcontractorshallrequiresuchcontractortopostasuretybondtoguaranteethepaymentoftheworker’sbenefits.
"(b)ShouldtheemployermisrepresentthetruedateofemploymentoftheemployeememberorremittotheSSScontributionswhicharelessthanthoserequiredinthisActorfailtoremitanycontributionduepriortothedateofcontingency,resultinginareductionofbenefits,theemployershallpaytotheSSSdamagesequivalenttothedifferencebetweentheamountofbenefittowhichtheemployeememberorhisbeneficiaryisentitledhadthepropercontributionsbeen
remittedtotheSSSandtheamountpayableonthebasisofcontributionsactuallyremitted:Provided,Thatiftheemployeememberorhisbeneficiaryisentitledtopensionbenefits,damagesshallbeequivalenttotheaccumulatedpensiondueasofthedateofsettlementoftheclaimortothefive(5)years’pension,whicheverishigher,includingdependents’pension.
"Inadditiontotheliabilitymentionedintheprecedingparagraphs(a)and(b)hereof,theemployershallalsobeliableforthecorrespondingunremittedcontributionsandpenaltiesthereon.
"(c)TherecordsandreportsdulyaccomplishedandsubmittedtotheSSSbytheemployerorthemember,asthecasemaybe,shallbekeptconfidentialbytheSSSexceptincompliancewithasubpoenaducestecumissuedbytheCourt,shallnotbedivulgedwithouttheconsentoftheSSSPresidentoranyofficialoftheSSSdulyauthorizedbyhim,shallbepresumedcorrectastothedataandothermattersstatedtherein,unlessthenecessarycorrectionstosuchrecordsandreportshavebeenproperlymadebythepartiesconcernedbeforetherighttothebenefitbeingclaimedaccrues,andshallbemadethebasisfortheadjudicationoftheclaim.IfasaresultofsuchadjudicationtheSSSingoodfaithpaysamonthlypensiontoabeneficiarywhoisinferiorinrighttoanotherbeneficiaryorwithwhomanotherbeneficiaryisentitledtoshare,suchpaymentsshalldischargetheSSSfromliabilityunlessanduntilsuchotherbeneficiarynotifiestheSSSofhisclaimpriortothepayments.
"(d)EveryemployershallkeeptrueandaccurateworkrecordsforsuchperiodandcontainingsuchinformationastheCommissionmayprescribe,inadditiontoan"AnnualRegisterofNewandSeparatedEmployees"whichshallbesecuredfromtheSSSwhereintheemployershallenteronthefirstdayofemploymentorontheeffectivedateofseparation,thenamesofthepersonsemployedorseparatedfromemployment,theirSSSnumbers,andsuchotherdatathattheCommissionmayrequireandsaidannualregistershallbesubmittedtotheSSSinthemonthofJanuaryofeachyear.SuchrecordsshallbeopenforinspectionbytheSSSoritsauthorizedrepresentativesquarterlyorasoftenastheSSSmayrequire.
"TheSSSmayalsorequireeachemployertosubmit,withrespecttothepersonsinhisemploy,reportsneededfortheeffectiveadministrationofthisAct.
"(e)Eachemployershallrequire,asaconditiontoemployment,thepresentationofaregistrationnumbersecuredbytheprospectiveemployeefromtheSSSinaccordancewithsuchprocedureastheSSSmayadopt:Provided,Thatincaseofemployeeswhohavebeenassignedregistrationnumbersbyvirtueofapreviousemployment,suchnumbersoriginallyassignedtothemshouldbeusedforpurposesofthisSection:Provided,further,ThattheissuanceofsuchregistrationnumbersbytheSSSshallnotexempttheemployerfromcomplyingwiththeprovisionsofparagraph(a)ofthisSection.
"(f)Notwithstandinganylawtothecontrary,microfilm,ornon‐erasableopticaldiskandothersimilararchivalmediacopiesoforiginalSSSrecordsandreports,dulycertifiedbytheofficialcustodianthereof,shallhavethesameevidentiaryvalueastheoriginalsandbeadmissibleasevidenceinalllegalproceedings.
"(g)Notwithstandinganylawtothecontrary,localgovernmentunitsshall,priortoissuinganyannualbusinesslicenseorpermit,requiresubmissionofcertificateofSSScoverageandcompliancewiththeprovisionsofthisAct:Provided,ThatthecertificationorclearanceshallbeissuedbytheSSSwithinfive(5)workingdaysfromreceiptoftherequest.
"SEC.24‐A.ReportandRegistrationoftheSelf‐EmployedMember.‐Eachcoveredself‐employedpersonshall,withinthirty(30)daysfromthefirstdayhestartedthepracticeofhisprofessionorbusinessoperationsregisterandreporttotheSSShisname,age,civilstatus,andoccupation,averagemonthlynetincomeandhisdependents.
"SEC.25.DepositsandDisbursements.‐AllmoneypaidtoorcollectedbytheSSSeveryyearunderthisAct,andallaccrualstheretoshallbedeposited,administeredanddisbursedinthesamemannerandunderthesameconditionsandrequirementsasprovidedbylawforotherpublicspecialfunds:Provided,Thatnotmorethantwelvepercent(12%)ofthetotalyearlycontributionsplusthreepercent(3%)ofotherrevenuesshallbedisbursedforoperationalexpensessuchassalariesandwages,suppliesandmaterials,depreciationandthemaintenanceofofficesoftheSSS:Provided,further,Thatiftheexpensesinanyyeararelessthanthemaximumamountpermissible,thedifferenceshallnotbeavailedofasadditionalexpensesinthefollowingyears.
"SEC.26.InvestmentofReserveFunds.‐AllrevenuesoftheSSSthatarenotneededtomeetthecurrentadministrativeandoperationalexpensesincidentaltothecarryingoutofthisActshallbeaccumulatedinafundtobeknownasthe"ReserveFund."SuchportionsoftheReserveFundasarenotneededtomeetthecurrentbenefitobligationsthereofshallbeknownasthe"InvestmentReserveFund"whichtheCommissionshallmanageandinvestwiththeskill,care,prudenceanddiligencenecessaryunderthecircumstancesthenprevailingthataprudentmanactinginlikecapacityandfamiliarwithsuchmatterswouldexerciseintheconductofanenterpriseofalikecharacterandwithsimilaraims.Pursuantthereto,andinlinewiththebasicprinciplesofsafety,goodyieldandliquidity,theCommissionshallinvestthefundstoearnanannualincomenotlessthantheaverageratesoftreasurybillsoranyotheracceptablemarketyieldindicatorinanyorinallofthefollowing:
"(a)Inbonds,securities,promissorynotesorotherevidenceofindebtednessoftheGovernmentofthePhilippines,orinbonds,securities,promissorynotesorotherevidenceofindebtednesstowhichthefullfaith,creditandunconditionalguaranteeoftheGovernmentofthePhilippinesispledged;
"(b)Inbonds,securities,promissorynotesorotherevidenceofindebtednessoftheGovernmentofthePhilippines,oranyagenciesorinstrumentalitiestofinancedomesticinfrastructureprojectssuchasroads,bridges,ports,telecommunications,andothersimilarprojects:Provided,ThattheinstrumentsissuedbyanagencyorinstrumentalityofthegovernmentshallbeguaranteedbytheGovernmentofthePhilippinesoranygovernmentfinancialinstitutionoracceptablemultilateralagency:Provided,further,ThattheSSSshallhavepriorityovertherevenuesoftheprojects:Provided,finally,Thatsuchinvestmentsshallnotexceedthirtypercent(30%)oftheInvestmentReserveFund;
"(c)Inbonds,securities,promissorynotesorotherevidenceofindebtednessofgovernmentfinancialinstitutionsorgovernmentcorporationswithacceptablecreditorguarantee:Provided,Thatsuchinvestmentsshallnotexceedthirtypercent(30%)oftheInvestmentReserveFund;
"(d)Inbonds,securities,promissorynotesorotherevidenceofindebtednessofanybankdoingbusinessinthePhilippinesandingoodstandingwiththeBangkoSentralngPilipinastofinanceloanstoprivatecorporationsdoingbusinessinthePhilippines,includingschools,hospitals,small‐and‐mediumscaleindustries,cooperativesandnon‐governmentalorganizations,inwhichcasethecollateralsorsecuritiesshallbeassignedtotheSSSundersuchtermsandconditionsastheCommissionmayprescribe:Provided,Thatinthecaseofbankdeposits,theyshall
notexceedatanytimetheunimpairedcapitalandsurplusortotalprivatedepositsofthedepositorybank,whicheverissmaller:Provided,further,ThatsaidbankshallfirsthavebeendesignatedasadepositoryforthispurposebytheMonetaryBoardoftheBangkoSentralngPilipinas:Provided,finally,Thatsuchinvestmentsshallnotexceedfortypercent(40%)oftheInvestmentReserveFund;
"(e)Inbonds,securities,promissorynotesorotherevidenceofindebtednessofshelteragenciesoftheNationalGovernmentorfinancialintermediariestofinancehousingloansofmembers;andinlong‐termdirectindividualorgrouphousingloansgivingprioritytothelow‐incomegroups,uptoamaximumofninetypercent(90%)oftheappraisedvalueofthepropertiestobemortgagedbytheborrowers;and
"Inshortandmediumtermloanstomemberssuchassalary,educational,livelihood,marital,calamityandemergencyloans:Provided,Thatnotmorethanthirtyfivepercent(35%)oftheInvestmentReserveFundatanytimeshallbeinvestedforhousingpurposes:Provided,further,Thatnotmorethantenpercent(10%)oftheInvestmentReserveFundshallbeinvestedinshortandmediumtermloans;
"(f)Inbonds,securities,promissorynotesorotherevidenceofindebtednessofeducationalormedicalinstitutionstofinancetheconstruction,improvementandmaintenanceofschoolsandhospitalsandtheirequipmentandfacilities:Provided,Thatsuchinvestmentsshallnotexceedtenpercent(10%)oftheInvestmentReserveFund;
"(g)Inrealestateproperty,includingsharesofstocksinvolvingrealestateproperty,andinvestmentsecuredbyfirstmortgagesonrealestateorothercollateralsacceptabletotheSSS:Provided,Thatsuchprojectsandinvestmentsshall,inthedeterminationoftheCommission,redoundtothebenefitoftheSSS,itsmembers,aswellasthegeneralpublic:Provided,further,Thatinvestmentinrealestateproperty,includingsharesofstocksinvolvingrealestatepropertyshallnotexceedfivepercent(5%)oftheInvestmentReserveFund:Provided,finally,Thatinvestmentsinotherincomeearningprojectsandinvestmentssecuredbyfirstmortgagesorothercollateralsshallnotexceedtwentyfivepercent(25%)oftheInvestmentReserveFund;
"(h)Inbonds,debentures,securities,promissorynotesorotherevidenceofindebtednessofanyprimecorporationormultilateralinstitutionstofinance
domesticprojects:Provided,Thattheissuingorassumingentityoritspredecessorsshallnothavedefaultedinthepaymentofinterestonanyofitssecuritiesandthatduringeachofanythree(3)includingthelasttwo(2)ofthefive(5)fiscalyearsnextprecedingthedateofacquisitionbytheSSSofsuchbonds,debenturesorotherevidenceofindebtedness,thenetearningsoftheissuingorassuminginstitutionavailableforitsfixedcharges,asdefinedinthisAct,shallhavebeennotlessthanoneandone‐quartertimesthetotalofitsfixedchargesforsuchyear:Provided,further,Thatsuchinvestmentsshallnotexceedthirtypercent(30%)oftheInvestmentReserveFund;
"(i)Inpreferredorcommonsharesofstockslistedorabouttobelistedinthestockexchangeoroptionsorwarrantstosuchstocksor,subjecttopriorapprovaloftheBangkoSentralngPilipinas,suchotherriskmanagementinstrumentsofanyprimeorsolventcorporationorfinancialinstitutioncreatedorexistingunderthelawsofthePhilippineswithproventrackrecordofprofitabilityoverthelastthree(3)yearsandpaymentofdividendsatleastonceoverthesameperiod:Provided,Thatsuchinvestmentsshallnotexceedthirtypercent(30%)oftheInvestmentReserveFund;
"(j)Indomesticorforeignmutualfundsinexistenceforatleastthree(3)years;Provided,Thatsuchinvestmentsshallnotexceedtwentypercent(20%)oftheInvestmentReserveFund:Provided,further,Thatinvestmentsinforeignmutualfundsshallnotexceedonepercent(1%)oftheInvestmentReserveFundinthefirstyearwhichshallbeincreasedbyonepercent(1%)foreachsucceedingyear,butinnocaseshallitexceedsevenandone‐halfpercent(7.5%)oftheInvestmentReserveFund;
"(k)Inforeigncurrencydepositsortriple"A"foreigncurrencydenominateddebts,primeandnon‐speculativeequities,andotherBangkoSentralngPilipinasapprovedfinancialinstrumentsorotherassetsissuedinaccordancewiththeexistinglawsofthecountrieswheresuchfinancialinstrumentsareissued:Provided,Thattheseinstrumentsorassetsarelistedinboursesoftherespectivecountrieswheretheseinstrumentsorassetsareissued:Provided,further,Thattheissuingcompanyhasproventrackofrecordofprofitabilityoverthelastthree(3)yearsandarecordofregulardividendpay‐outoverthesameperiod:Provided,finally,Thatsuchinvestmentsshallnotexceedonepercent(1%)oftheInvestmentReserveFundinthefirstyearwhichshallbeincreasedbyonepercent(1%)foreachsucceedingyear,butinnocaseshallitexceedsevenandone‐halfpercent(7.5%)oftheInvestmentReserveFund;
"(l)Inloanssecuredbysuchcollateralslikecash,governmentsecuritiesorguaranteesofmultilateralinstitutions:Provided,Thatsuchinvestmentsshallnotexceedthirtypercent(30%)oftheInvestmentReserveFund;and
"(m)InotherBangkoSentralngPilipinasapprovedinvestmentinstrumentswiththesameintrinsicqualityasthoseenumeratedinparagraphs(a)to(l)hereof,subjecttothepoliciesandguidelineswhichtheCommissionmayformulate.
"NoportionoftheInvestmentReserveFundorincomethereofshallaccruetothegeneralfundoftheNationalGovernmentortoanyofitsagenciesorinstrumentalities,includinggovernment‐ownedorcontrolledcorporations,exceptasmaybeallowedunderthisAct:Provided,ThatnoportionoftheInvestmentReserveFundshallbeinvestedforanypurposeorinanyinstrument,institutionorindustryoverandabovetheprescribedcumulativeceilingsasfollows:
40%inprivatesecurities
35%inhousing
30%inrealestaterelatedinvestments
10%inshortandmedium‐termmemberloans
30%ingovernmentfinancialinstitutionsandcorporations
30%ininfrastructureprojects
15%inanyparticularindustry
7.5%inforeign‐currencydenominatedinvestments
"SEC.26‐A.FundManagers.‐Aspartofitsinvestmentoperations,theSSSmayappointlocalor,intheabsencethereof,foreignfundmanagerstomanagetheInvestmentReserveFund,asitmaydeemappropriate.
"SEC.26‐B.MortgagorInsuranceAccount.‐(a)Aspartofitsinvestmentoperations,theSSSshallactasinsurerofallorpartofitsinterestonSSSpropertiesmortgagedtotheSSS,orlivesofmortgagorswhosepropertiesaremortgagedtotheSSS.Forthispurpose,theSSSshallestablishaseparateaccounttobeknownasthe"Mortgagors’InsuranceAccount."AllamountsreceivedbytheSSSinconnectionwiththeaforesaidinsuranceoperationsshallbeplacedintheMortgagors’InsuranceAccount.TheassetsandliabilitiesoftheMortgagors’InsuranceAccountshallatalltimesbeclearlyidentifiableanddistinguishablefromtheassetsandliabilitiesinallotheraccountsoftheSSS.Notwithstandinganyprovisionoflawtothecontrary,theassetsheldintheMortgagors’InsuranceAccountshallnotbechargeablewiththeliabilitiesarisingoutofanyotherbusinesstheSSSmayconductbutshallbeheldandappliedexclusivelyforthebenefitoftheownersorbeneficiariesoftheinsurancecontractsissuedbytheSSSunderthisparagraph.
"(b)TheSSSmayinsureanyofitsinterestorpartthereofwithanyprivatecompanyorreinsurer.TheInsuranceCommissionoritsauthorizedrepresentativesshallmakeanexaminationintothefinancialconditionandmethodsoftransactingbusinessoftheSSSatleastonceintwo(2)years,butsuchexaminationshallbelimitedtotheinsuranceoperationoftheSSSasauthorizedunderthisparagraphandshallnotembracetheotheroperationsoftheSSS;andthereportofsaidexaminationshallbesubmittedtotheCommissionandacopythereofshallbefurnishedtheOfficeofthePresidentofthePhilippineswithinareasonabletimeafterthecloseoftheexamination:Provided,Thatforeachexamination,theSSSshallpaytotheInsuranceCommissionanamountequaltotheactualexpenseoftheInsuranceCommissionintheconductofexamination,includingthesalariesoftheexaminersandoftheactuaryoftheInsuranceCommissionwhohavebeenassignedtomakesuchexaminationfortheactualtimespentinsaidexamination:Provided,further,ThatthegenerallawoninsuranceandtherulesandregulationspromulgatedthereundershallhavesuppletoryapplicationinsofarasitisnotinconflictwiththisActanditsrulesandregulations.
"SEC.27.RecordsandReports.‐TheSSSPresidentshallkeepandcausetokeeprecordsofoperationsofthefundsoftheSSSandofdisbursementsthereofandallaccountsofpaymentsmadeoutofsaidfunds.DuringthemonthofJanuaryofeachyear,theSSSPresidentshallprepareforsubmissiontothePresidentofthePhilippinesandtoCongressofthePhilippinesareportofoperationsoftheSSSduringtheprecedingyear,includingstatisticaldataonthenumberofpersons
coveredandbenefited,theiroccupationsandemploymentstatus,thedurationandamountofbenefitspaid,thefinancesoftheSSSatthecloseofthesaidyear,andrecommendations.Heshallalsocausetobepublishedintwo(2)newspapersofgeneralcirculationinthePhilippinesasynopsisoftheannualreport,showinginparticularthestatusofthefinancesoftheSSSandthebenefitsadministered.
"SEC.28.PenalClause.‐(a)Whoever,forthepurposeofcausinganypaymenttobemadeunderthisAct,orunderanagreementthereunder,wherenoneisauthorizedtobepaid,shallmakeorcausetobemadefalsestatementorrepresentationastoanycompensationpaidorreceivedorwhoevermakesorcausestobemadeanyfalsestatementofamaterialfactinanyclaimforanybenefitpayableunderthisAct,orapplicationforloanwiththeSSS,orwhoevermakesorcausestobemadeanyfalsestatement,representation,affidavitordocumentinconnectionwithsuchclaimorloan,shallsufferthepenaltiesprovidedforinArticleOnehundredseventy‐twooftheRevisedPenalCode.
"(b)WhoevershallobtainorreceiveanymoneyorcheckunderthisActoranyagreementthereunder,withoutbeingentitledtheretowithintenttodefraudanymember,employerortheSSS,shallbefinednotlessthanFivethousandpesos(P5,000.00)normorethanTwentythousandpesos(P20,000.00)andimprisonedfornotlessthansix(6)yearsandone(1)daynormorethantwelve(12)years.
"(c)Whoeverbuys,sells,offersforsale,uses,transfersortakesorgivesinexchange,orpledgesorgivesinpledge,exceptasauthorizedinthisActorinregulationsmadepursuantthereto,anystamp,coupon,ticket,bookorotherdevice,prescribedpursuanttoSectionTwenty‐threehereofbytheCommissionforthecollectionorpaymentofcontributionsrequiredherein,shallbefinednotlessthanFivethousandpesos(P5,000.00)normorethanTwentythousandpesos(P20,000.00),orimprisonedfornotlessthansix(6)yearsandone(1)daynormorethantwelve(12)years,orboth,atthediscretionofthecourt.
"(d)Whoever,withintenttodefraud,alters,forges,makesorcounterfeitsanystamp,coupon,ticket,bookorotherdeviceprescribedbytheCommissionforthecollectionorpaymentofanycontributionrequiredherein,oruses,sells,lends,orhasinhispossessionanysuchaltered,forgedorcounterfeitedmaterials,ormakes,uses,sellsorhasinhispossessionanysuchaltered,forged,materialinimitationofthematerialusedinthemanufactureofsuchstamp,coupon,ticket,bookorotherdevice,shallbefinednotlessthanFivethousandpesos(P5,000.00)nonmorethanTwentythousandpesos(P20,000.00)orimprisonedfornotlessthansixyears(6)
andone(1)daynormorethantwelve(12)years,orboth,atthediscretionofthecourt.
"(e)WhoeverfailsorrefusestocomplywiththeprovisionsofthisActorwiththerulesandregulationspromulgatedbytheCommission,shallbepunishedbyafineofnotlessthanFivethousandpesos(P5,000.00)normorethanTwentythousandpesos(P20,000.00),orimprisonmentfornotlessthansix(6)yearsandone(1)daynormorethantwelve(12)years,orboth,atthediscretionofthecourt:Provided,Thatwheretheviolationconsistsinfailureorrefusaltoregisteremployeesorhimself,incaseofthecoveredself‐employedortodeductcontributionsfromtheemployees’compensationandremitthesametotheSSS,thepenaltyshallbeafineofnotlessFivethousandpesos(P5,000.00)normorethanTwentythousandpesos(P20,000.00)andimprisonmentfornotlessthansix(6)yearsandone(1)daynormorethantwelve(12)years.
"(f)IftheactoromissionpenalizedbythisActbecommittedbyanassociation,partnership,corporationoranyotherinstitution,itsmanaginghead,directorsorpartnersshallbeliableforthepenaltiesprovidedinthisActfortheoffense.
"(g)AnyemployeeoftheSSSwhoreceivesorkeepsfundsorpropertybelonging,payableordeliverabletotheSSSandwhoshallappropriatethesame,orshalltakeormisappropriate,orshallconsent,orthroughabandonmentornegligence,shallpermitanyotherpersontotakesuchpropertyorfunds,whollyorpartially,orshallotherwisebeguiltyofmisappropriationofsuchfundsorproperty,shallsufferthepenaltiesprovidedinArticleTwohundredseventeenoftheRevisedPenalCode.
"(h)Anyemployerwho,afterdeductingthemonthlycontributionsorloanamortizationsfromhisemployee’scompensation,failstoremitthesaiddeductiontotheSSSwithinthirty(30)daysfromthedatetheybecamedue,shallbepresumedtohavemisappropriatedsuchcontributionsorloanamortizationsandshallsufferthepenaltiesprovidedinArticleThreehundredfifteenoftheRevisedPenalCode.
"(i)CriminalactionarisingfromaviolationoftheprovisionsofthisActmaybecommencedbytheSSSortheemployeeconcernedeitherunderthisActorinappropriatecasesundertheRevisedPenalCode:Provided,ThatsuchcriminalactionmaybefiledbytheSSSinthecityormunicipalitywheretheSSSofficeislocated,iftheviolationwascommittedwithinitsterritorialjurisdictionorinMetroManila,attheoptionoftheSSS.
"SEC.29.GovernmentAid.‐TheestablishmentoftheSSSshallnotdisqualifythemembersandemployersfromreceivingsuchgovernmentassistance,financialorotherwise,asmaybeprovided.
"SEC.30.TransitoryClause.‐AnyemployerwhoisdelinquentorhasnotremittedallcontributionsdueandpayabletotheSSSmay,withinsix(6)monthsfromtheeffectivityofthisAct,remitsaidcontributionsorsubmitaproposaltopaythesameininstallmentwithinaperiodofnotmorethantwelve(12)monthsfromtheeffectivityofthisActwithoutincurringtheprescribedpenalty,subjecttotheimplementingrulesandregulationswhichtheCommissionmayprescribe:Provided,Thattheemployersubmitsthecorrespondingcollectionliststogetherwiththeremittanceorproposaltopayininstallments:Provided,further,Thatincasetheemployerfailstoremitcontributionswithinthesix‐monthgraceperiodordefaultsinthepaymentofanyamortizationprovidedtheapprovedproposal,theprescribedpenaltyshallbeimposedfromthetimethecontributionsfirstbecamedueasprovidedinSection22(a)hereof."
SEC.2.SeparabilityClause.‐IfanyprovisionofthisActisdeclaredinvalid,theotherprovisionsnotaffectedtherebyshallremainvalid.
SEC.3.RepealingClause.‐Alllaws,proclamations,executiveorders,rulesandregulationsorpartsthereofinconsistentwiththisActareherebyrepealed,modifiedoramendedaccordingly:Provided,ThatnopersonshallbedeemedtobevestedwithanypropertyorotherrightbyvirtueoftheenactmentoroperationofthisAct.
SEC.4.EffectivityClause.‐ThisActshalltakeeffectfifteen(15)daysafteritscompletepublicationintheOfficialGazetteorinatleasttwo(2)nationalnewspapersofgeneralcirculationwhichevercomesearlier.
Approved:May01,1997
(Sgd.)FIDELV.RAMOS
PresidentofthePhilippines
