Republic Act No.

8282 May 01, 1997

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

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::

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 "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."

"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'
organizations, respectively. The Chairman of the Commission shall be designated by the President of the Philippines from
among its members. The term of the appointive members shall be 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 members, respectively: 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 the term, shall be filled for the unexpired term only. The appointive members of the Commission
shall receive at least two thousand five hundred pesos (P2,500.00) per diem for each meeting actually attended by them but
not to exceed Ten thousand pesos (P10,000.00) a month:: Provided, That members of the Commission shall also receive a per
diem of at least Two thousand five hundred pesos (P2,500.00) but not to exceed Fifteen thousand pesos (P15,000.00) a
month: Provided , further, That said members of the Commission shall also receive reasonable transportation and
representation allowances as may be fixed by the Commission, but not to exceed Ten thousand pesos (P10,000.00) a month.

"(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 a person who has had previous experience in the technical and administrative
fields related to the purposes of this Act. He shall be appointed by the President of the Philippines and shall receive salary to
be fixed by the Commission with the approval of the President of the Philippines, payable from the funds of the SSS.

"(c) The Commission, upon the recommendation of the SSS President, shall appoint an actuary, and such other personnel as
may be deemed necessary, fix their reasonable compensation, allowances and other benefits, prescribe their duties and
establish such methods and procedures as may be necessary to insure 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.

"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 adopt, amend and rescind, subject to the approval of the President of the Philippines, 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 voluntary contributions of employers
and/or employees, self-employed and voluntary members and their earnings, for the payment of benefits to such
members or their beneficiaries, subject to such rules and regulations as it may promulgate and approved by the
President of the Philippines;

"(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 approve restructuring proposals for the payment of due but unremitted contributions and unpaid loan
amortizations under such terms and conditions as it may prescribe;

"(5) 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;

"(6) 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 and
approved by the President of the Philippines; and

"(7) 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 four (4), paragraph seven (7) 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 actuary to submit a valuation report on the SSS benefit program every four (4) 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, 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, subject to the approval of the President of the Philippines: Provided, That the actuarial
soundness of the reserve fund shall be guaranteed: Provided, further, That such increases in benefits shall not
require any increase in the rate of contribution;

"(3) To establish offices of the SSS to cover as many provinces, cities and congressional districts, 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, from time to time, a budget of expenditures including salaries of personnel, against all funds available
to the SSS under this Act;

"(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 investigation as may
be needed for the proper administration and development of the SSS;

"(8) To acquire and dispose of property, real or personal, which may be necessary or expedient for the attainment of
the purposes of this Act;

"(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 sue and be sued in court; and

"(11) 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 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 prosecutors.

"(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 is 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 in excess of the
maximum salary credit as Provided under Section Eighteen of this Act.

"(g) Monthly salary credit - The compensation base for contributions and benefits as indicated in the schedule in Section
Eighteen of this Act.

"(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 Section Eighteen of this
Act.

"(j) Employment - Any service performed by an employee for his employer except:

"(1) Employment purely casual and not for the purpose of occupation or business of the employer;

"(2) Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel
is outside the Philippines;

"(3) Service performed in the employ of the Philippine Government or instrumentality or agency thereof;

"(4) 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

"(5) 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 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 of 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 Nine and Section Nine-A 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 Nine-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 or 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 not over sixty (60) years of age and
their employers: Provided, That in the case of domestic helpers, their monthly income shall not be less than One thousand
pesos (P1,000.00) a month: Provided, further, That any benefit already earned by the employees under private benefit plans
existing at the time of the approval of this Act shall not be discontinued, reduced or otherwise impaired: Provided, further,
That private plans which are existing and in force at the time of compulsory coverage shall be integrated with the plan of the
SSS in such a way where the 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.

"(c) Filipinos recruited by foreign-based employers for employment abroad 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:

"1. All self-employed professionals;

"2. Partners and single proprietors of businesses;

"3. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the
term "employee" in Section 8 (d) of this Act;

"4. Professional athletes, coaches, trainers and jockeys; and

"5. Individual farmers and fishermen.

"Unless otherwise specified herein, all provisions of this Act applicable to covered employees shall also be applicable to the
covered self-employed persons.

"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 realizes no income in any given
month, he shall not be required to pay contributions for that month. He may, however, be allowed to continue paying
contributions under the same rules and regulations applicable to a separated employee member: Provided, That no retroactive
payment of contributions shall be allowed other than as prescribed under Section Twenty-two-A hereof.

"SEC. 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) Forth 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.

"SEC. 12-A. Dependents' Pension. - Where monthly pension is payable on account of death, permanent total disability or
retirement, dependents' pension equivalent to ten percent (10%) of the monthly pension or Two hundred fifty pesos
(P250.00), whichever is higher, shall also be paid for each dependent child conceived on or before the date of the contingency
but not exceeding five (5), beginning with the youngest and without substitution: Provided, That where there are legitimate or
illegitimate children, the former shall be preferred.

SEC. 12-B. Retirement Benefits. - (a) A member who has paid at least one hundred twenty (120) monthly contributions prior
to the semester of retirement and who: (1) has reached the age of sixty (60) years and is already separated from employment
or has ceased to be self-employed; or (2) has reached the age of sixty-five (65) years, shall be entitled for as long as he lives
to the monthly pension: Provided, That he shall have the option to receive his first eighteen (18) monthly pensions in lump
sum discounted at a preferential rate of interest to be determined by the SSS.

"(b) A covered member who is sixty (60) years old at retirement and who does not qualify for pension benefits under
paragraph (a) above, shall be entitled to a lump sum benefit equal to the total contributions paid by him and on his behalf:
Provided, That he is separated from employment and is not continuing payment of contributions to the SSS on his own.

"(c) The monthly pension shall be suspended upon the reemployment or resumption of self-employment of a retired member
who is less than sixty-five (65) years old. He shall again be subject to Section Eighteen and his employer to Section Nineteen
of this Act.

"(d) Upon the death of the retired member, his primary beneficiaries as of the date of his retirement shall be entitled to
receive the monthly pension: Provided, That if he has no primary beneficiaries and he dies within sixty (60) months from the
start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total
monthly pensions corresponding to the balance of the five-year guaranteed period, excluding the dependents' pension.

"(e) The monthly pension of a member who retires after reaching age sixty (60) shall be the higher of either: (1) the monthly
pension computed at the earliest time he could have retired had he been separated from employment or ceased to be self-
employed plus all adjustments thereto; or (2) the monthly pension computed at the time when he actually retires.

"SEC. 13. Death Benefits. - Upon the death of a member who has paid at least thirty-six (36) monthly contributions prior to
the semester of death, his primary beneficiaries shall be entitled to the monthly pension: Provided, That if he has no primary
beneficiaries, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to thirty-six (36) times the
monthly pension. If he has not paid the required thirty-six (36) monthly contributions, his primary or secondary beneficiaries
shall be entitled to a lump sum benefit equivalent to the monthly pension times the number of monthly contributions paid to
the SSS or twelve (12) times the monthly pension, whichever is higher.

"SEC. 13-A. Permanent Disability Benefits. - (a) Upon the permanent total disability of a member who has paid at least
thirty-six (36) monthly contributions prior to the semester of disability, he shall be entitled to the monthly pension: Provided,
That if he has not paid the required thirty-six (36) monthly contributions, he shall be entitled to a lump sum benefit equivalent
to the monthly pension times the number of monthly contributions paid to the SSS or twelve (12) times the monthly pension,
whichever is higher. A member who (1) has received a lump sum benefit; and (2) is reemployed or has resumed self-
employment not earlier than one (1) year from the date of his disability shall again be subject to compulsory coverage and
shall be considered a new member.

"(b) The monthly pension and dependents' pension shall be suspended upon the reemployment or resumption of self-
employment or the recovery of the disabled member from his permanent total disability or his failure to present himself for
examination at least once a year upon notice by the SSS.

"(c) Upon the death of the permanent total disability pensioner, his primary beneficiaries as of the date of disability shall be
entitled to receive the monthly pension: Provided, That if he has no primary beneficiaries and he dies within sixty (60)
months from the start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to
the total monthly pensions corresponding to the balance of the five-year guaranteed period excluding the dependents'
pension.

"(d) The following disabilities shall be deemed permanent total:

"1. Complete loss of sight of both eyes;

"2. Loss of two limbs at or above the ankle or wrists;

"3. Permanent complete paralysis of two limbs;

"4. Brain injury resulting to incurable imbecility or insanity; and

"5. Such cases as determined and approved by the SSS.

"(e) If the disability is permanent partial, and such disability occurs before thirty-six (36) monthly contributions have been
paid prior to the semester of disability, the benefit shall be such percentage of the lump sum benefit described in the
preceding paragraph with due regard to the degree of disability as the Commission may determine.

"(f) If the disability is permanent total and such disability occurs after thirty-six (36) monthly contributions have been paid
prior to the semester of disability, the benefit shall be the monthly pension for permanent total disability payable not longer
than the period designated in the following schedule:

Complete and permanent loss Number of

of use of Months
One thumb 10
One index finger 8
One middle finger 6
One right finger 5
One little finger 3
One big toe 6
One hand 39
One arm 50
One foot 31
One leg 46
One ear 10
Both ears 20
Hearing of one ear 10
Hearing of both ears 50
 Sight of one eye 25

"(g) The percentage degree of disability which is equivalent to the ratio that the designated number of months of
compensability bears to seventy-five (75), rounded to the next higher integer, shall not be additive for distinct, separate and
unrelated permanent partial disabilities, but shall be additive for deteriorating and related permanent partial disabilities to a
maximum of one hundred percent (100%), in which case, the member shall be deemed as permanently totally disabled.

"(h) In case of permanent partial disability, the monthly pension benefit shall be given in lump sum if it is payable for less
than twelve (12) months.

"(i) For the purpose of adjudicating retirement, death and permanent total disability pension benefits, contributions shall be
deemed paid for the months during which the member received partial disability pension: Provided, That such contributions
shall be based on his last contribution prior to his disability.

"(j) Should a member who is on partial disability pension retire or die, his disability pension shall cease upon his retirement
or death.

"SEC. 13-B. Funeral Benefit. - A funeral grant equivalent to Twelve thousand pesos (P12,000.00) shall be paid, in cash or in
kind, to help defray the cost of funeral expenses upon the death of a member, including permanently totally disabled member
or retiree.

"SEC. 14. Sickness Benefit. - (a) A member who has paid at least three (3) monthly contributions in the twelve-month period
immediately preceding the semester of sickness or injury and is confined therefor for more than three (3) days in a hospital or
elsewhere with the approval of the SSS, shall, for each day of compensable confinement or a fraction thereof, be paid by his
employer, or the SSS, if such person is unemployed or self-employed, a daily sickness benefit equivalent to ninety percent
(90%) of his average daily salary credit, subject to the following conditions:

"(1) In no case shall the daily sickness benefit be paid longer than one hundred twenty (120) days in one (1) calendar year,
nor shall any unused portion of the one hundred twenty (120) days of sickness benefit granted under this section be carried
forward and added to the total number of compensable days allowable in the subsequent year;

"(2) The daily sickness benefit shall not be paid for more than two hundred forty (240) days on account of the same
confinement; and

"(3) The employee member shall notify his employer of the fact of his sickness or injury within five (5) calendar days after
the start of his confinement unless such confinement is in a hospital or the employee became sick or was injured while
working or within the premises of the employer in which case, notification to the employer is necessary: Provided, That if the
member is unemployed or self-employed, he shall directly notify the SSS of his confinement within five (5) calendar days
after the start thereof unless such confinement is in a hospital in which case notification is also not necessary: Provided,
further, That in cases where notification is necessary, the confinement shall be deemed to have started not earlier than the
fifth day immediately preceding the date of notification.

"(b) The compensable confinement shall begin on the first day of sickness, and the payment of such allowances shall be
promptly made by the employer every regular payday or on the fifteenth and last day of each month, and similarly in the case
of direct payment by the SSS, for as long as such allowances are due and payable: Provided, That such allowance shall begin
only after all sick leaves of absence with full pay to the credit of the employee member shall have been exhausted.

"(c) One hundred percent (100%) of the daily benefits Provided in the preceding paragraph shall be reimbursed by the SSS to
said employer upon receipt of satisfactory proof of such payment and legality thereof: Provided, That the employer has
notified the SSS of the confinement within five (5) calendar days after receipt of the notification from the employee member:
Provided, further, That if the notification to the SSS is made by the employer beyond five (5) calendar days after receipt of
the notification from the employee member, said employer shall be reimbursed only for each day of confinement starting
from the tenth calendar day immediately preceding the date of notification to the SSS: Provided, finally, That the SSS shall
reimburse the employer or pay the unemployed member only for confinement within the one-year period immediately
preceding the date the claim for benefit or reimbursement is received by the SSS, except confinement in a hospital in which
case the claim for benefit or reimbursement must be filed within one (1) year from the last day of confinement.
"(d) Where the employee member has given the required notification but the employer fails to notify the SSS of the
confinement or to file the claim for reimbursement within the period prescribed in this section resulting in the reduction of
the benefit or denial of the claim, such employer shall have no right to recover the corresponding daily allowance he
advanced to the employee member as required in this section.

"(e)The claim of reimbursement shall be adjudicated by the SSS within a period of two (2) months from receipt thereof:
Provided, That should no payment be received by the employer within one (1) month after the period prescribed herein for
adjudication, the reimbursement shall thereafter earn simple interest of one percent (1%) per month until paid.

"(f) The provisions regarding the notification required of the member and the employer as well as the period within which the
claim for benefit or reimbursement may be filed shall apply to all claims filed with the SSS.

"SEC. 14-A. Maternity Leave Benefit. - A female member who has paid at least three (3) monthly contributions in the twelve-
month period immediately preceding the semester of her childbirth or miscarriage shall be paid a daily maternity benefit
equivalent to one hundred percent (100%) of her average daily salary credit for sixty (60) days or seventy-eight (78) days in
case of caesarian delivery, subject to the following conditions:

"(a) That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth, which
notice shall be transmitted to the SSS in accordance with the rules and regulations it may provide;

"(b) The full payment shall be advanced by the employer within thirty (30) days from the filing of the maternity leave
application;

"(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits Provided by this Act for the
same period for which daily maternity benefits have been received;

"(d) That the maternity benefits Provided under this section shall be paid only for the first four (4) deliveries or miscarriages;

"(e) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the amount of maternity
benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof;
and

"(f) That if an employee member should give birth or suffer miscarriage without the required contributions having been
remitted for her by her employer to the SSS, or without the latter having been previously notified by the employer of the time
of the pregnancy, the employer shall pay to the SSS damages equivalent to the benefits which said employee member would
otherwise have been entitled to.

"SEC. 15. Non-Transferability of Benefits. - The SSS shall promptly pay the benefits Provided in this Act to such persons as
may be entitled thereto in accordance with the provisions of this Act: Provided, That the SSS shall pay the retirement benefits
on the day of contingency to qualified members who have submitted the necessary documents at least six (6) months before:
Provided, further, That the beneficiary who is a national of a foreign country which does not extend benefits to a Filipino
beneficiary residing in the Philippines, or which is not recognized by the Philippines, shall not be entitled to receive any
benefit under this Act: Provided, further, That notwithstanding the foregoing, where the best interest of the SSS will be
served, the Commission may direct payments without regard to nationality or country of residence: Provided, further, That if
the recipient is a minor or a person incapable of administering his own affairs, the Commission shall appoint a representative
under such terms and conditions as it may deem proper: Provided, further, That such appointment shall not be necessary in
case the recipient is under the custody of or living with the parents or spouse of the member in which case the benefits shall
be paid to such parents or spouse, as representative payee of the recipient. Such benefits are not transferable and no power of
attorney or other document executed by those entitled thereto in favor of any agent, attorney or any other person for the
collection thereof on their behalf shall be recognized, except when they are physically unable to collect personally such
benefits: Provided, further, That in case of death benefits, if no beneficiary qualifies under this Act, said benefits shall be
paid to the legal heirs in accordance with the law of succession.

"SEC. 16. Exemption from Tax, Legal Process and Lien. -- All laws to the contrary notwithstanding, the SSS and all its assets
and properties, all contributions collected and all accruals thereto and income or investment earnings therefrom as well as all
supplies, equipment, papers or documents shall be exempt from any tax, assessment, fee, charge, or customs or import duty;
and all benefit payments made by the SSS shall likewise be exempt from all kinds of taxes, fees or charges, and shall not
liable to attachments, garnishments, levy or seizure by or under any legal or equitable process whatsoever, either before or
after receipt by the person or persons entitled thereto, except to pay any debt of the member to the SSS. No tax measure of
whatever nature enacted shall apply to the SSS, unless it expressly revokes the declared policy of the State in Section 2
hereof granting tax-exemption to the SSS. Any tax assessment imposed against the SSS shall be null and void. (As amended
by Sec. 9, P.D. No. 24, S. 1972; and Sec. 14, P. D. No. 735, S. 1975).

"SEC. 17. Fee of Agents, Attorneys, Etc. - No agent, attorney or other person in charge of the preparation, filing or pursuing
any claim for benefit under this Act shall demand or charge for his services any fee, and any stipulation to the contrary shall
be null and void. The retention or deduction of any amount from any benefit granted under this Act for the payment of fees
for such services is prohibited: Provided, however, That any member of the Philippine Bar who appears as counsel in any
case heard by the Commission shall be entitled to attorneys' fees not exceeding ten percent (10%) of the benefits awarded by
the Commission, which fees shall not be payable before the actual payment of the benefits, and any stipulation to the contrary
shall be null and void.

"Any violation of the provisions of this Section shall be punished by a fine of not less than Five hundred pesos (P500.00) nor
more than Five thousand pesos (P5,000.00), or imprisonment for not less than six (6) months nor more than one (1) year, or
both, at the discretion of the court.

"SEC. 18. Employee's Contributions. - (a) Beginning as of the last day of the calendar month when an employee's
compulsory coverage takes effect and every month thereafter during his employment, the employer shall deduct and withhold
from such employee's monthly salary, wage, compensation or earnings, the employee's contribution in an amount
corresponding to his salary, wage, compensation or earnings during the month in accordance with the following schedule:

SALARY RANGE OF MONTHLY MONTHLY CONTRIBUTION

BRACKET COMPENSATION SALARY EMPLOYER EMPLOYEE TOTAL
CREDIT
I 1,000.00 - 1,249.99 1000 50.70 33.30 84.00
II 1,250.00 - 1,749.99 1500 76.00 50.00 126.00
III 1,750.00 - 2,249.99 2000 101.30 66.70 168.00
IV 2,250.00 - 2,749.99 2500 126.70 83.30 210.00
V 2,750.00 - 3,249.99 3000 152.00 100.00 252.00
VI 3,250.00 - 3,749.99 3500 177.30 116.70 294.00
VII 3,750.00 - 4,249.99 4000 202.70 133.30 336.00
VIII 4,250.00 - 4,749.99 4500 228.00 150.00 378.00
IX 4,750.00 - 5,249.99 5000 253.30 166.70 420.00
X 5,250.00 - 5,749.99 5500 278.70 183.70 462.40
XI 5,750.00 - 6,249.99 6000 304.00 200.00 504.00
XII 6,250.00 - 6,749.99 6500 329.30 216.78 546.00
XIII 6,750.00 - 7,249.99 7000 354.70 233.30 588.00
XIV 7,250.00 - 7,749.99 7500 380.00 250.00 630.00
XV 7,750.00 - 8.249.99 8000 403.30 266.70 672.00
XVI 8,250.00 - 8,749.99 8500 430.70 283.30 714.00
XVII 8,750.00 - OVER 9000 456.00 300.00 756.00

"The foregoing schedule of contribution shall also apply to self-employed and voluntary members.

"The maximum monthly salary credit shall be Nine thousand pesos (P9,000.00) effective January Nineteen hundred and
ninety six (1996); Provided, That it shall be increased by One thousand pesos (P1,000.00) every year thereafter until it shall
have reached Twelve thousand pesos (P12,000.00) by Nineteen hundred and ninety nine (1999): Provided, further, That the
minimum and maximum monthly salary credits as well as the rate of contributions may be fixed from time to time by the
Commission through rules and regulations taking into consideration actuarial calculations and rate of benefits, subject to the
approval of the President of the Philippines.
"SEC. 19. Employer's Contributions. - (a) Beginning as of the last day of the month when an employee's compulsory
coverage takes effect and every month thereafter during his employment, his employer shall pay, with respect to such
covered employee, the employer's contribution in accordance with the schedule indicated in Section Eighteen of this Act.
Notwithstanding any contract to the contrary, an employer shall not deduct, directly or indirectly, from the compensation of
his employees covered by the SSS or otherwise recover from them the employer's contributions with respect to such
employees.

"(b) The remittance of such contributions by the employer shall be supported by a quarterly collection list to be submitted to
the SSS at the end of each calendar quarter indicating the correct ID number of the employer, the correct names and the SSS
numbers of the employees and the total contributions paid for their account during the quarter.

"SEC. 19-A. Contributions of the Self-Employed Member. - The contributions to the SSS of the self-employed member shall
be determined in accordance with Section Eighteen of this Act: Provided, That the monthly earnings declared by the self-
employed member at the time of his registration with the SSS shall be considered as his monthly compensation and he shall
pay both the employer and the employee contributions: Provided, further, That the contributions of self-employed persons
earning One thousand pesos (P1,000.00) monthly or below may be reduced by the Commission.

"The monthly earnings declared by the self-employed member at the time of his registration shall remain the basis of his
monthly salary credit, unless he makes another declaration of his monthly earnings, in which case such latest declaration
becomes the new basis of his monthly salary credit.

"SEC. 20. Government Contribution. - As the contribution of the Government to the operation of the SSS, Congress shall
annually appropriate out of any funds in the National Treasury not otherwise appropriated, the necessary sum or sums to meet
the estimated expenses of the SSS for each ensuing year. In addition to this contribution, Congress shall appropriate from
time to time such sum or sums as may be needed to assure the maintenance of an adequate working balance of the funds of
the SSS as disclosed by suitable periodic actuarial studies to be made of the operations of the SSS.

"SEC. 21. Government Guarantee. -- The benefits prescribed in this Act shall not be diminished and to guarantee said
benefits the Government of the Republic of the Philippines accepts general responsibility for the solvency of the SSS.

"SEC. 22. Remittance of Contributions. -- (a) The contributions imposed in the preceding Section shall be remitted to the SSS
within the first ten (10) days of each calendar month following the month for which they are applicable or within such time as
the Commission may prescribe. Every employer required to deduct and to remit such contributions shall be liable for their
payment and if any contribution is not paid to the SSS as herein prescribed, he shall pay besides the contribution a penalty
thereon of three percent (3%) per month from the date the contribution falls due until paid. If deemed expedient and advisable
by the Commission, the collection and remittance of contributions shall be made quarterly or semi-annually in advance, the
contributions payable by the employees to be advanced by their respective employers: Provided, That upon separation of an
employee, any contribution so paid in advance but not due shall be credited or refunded to his employer.

"(b) The contributions payable under this Act in cases where an employer refuses or neglects to pay the same shall be
collected by the SSS in the same manner as taxes are made collectible under the National Internal Revenue Code, as
amended. Failure or refusal of the employer to pay or remit the contributions herein prescribed shall not prejudice the right of
the covered employee to the benefits of the coverage.

"The right to institute the necessary action against the employer may be commenced within twenty (20) years from the time
the delinquency is known or the assessment is made by the SSS, or from the time the benefit accrues, as the case may be.

"(c) Should any person, natural or juridical, default in any payment of contributions, the Commission may also collect the
same in either of the following ways:

"1. By an action in court, which shall hear and dispose of the case in preference to any other civil action; or

"2. By issuing a warrant to the Sheriff of any province or city commanding him to levy upon and sell any real and
personal property of the debtor. The Sheriff's sale by virtue of said warrant shall be governed by the same procedure
prescribed for executions against property upon judgments by a court of record.
"(d) The last complete record of monthly contributions paid by the employer or the average of the monthly contributions paid
during the past three (3) years as of the date of filing of the action for collection shall be presumed to be the monthly
contributions payable by and due from the employer to the SSS for each of the unpaid month, unless contradicted and
overcome by other evidence: Provided, That the SSS shall not be barred from determining and collecting the true and correct
contributions due the SSS even after full payment pursuant to this paragraph, nor shall the employer be relieved of his
liability under Section Twenty-eight of this Act.

"SEC. 22-A. Remittance of Contributions of Self-Employed Member. - Self-employed members shall remit their monthly
contributions quarterly on such dates and schedules as the Commission may specify through rules and regulations: Provided,
That no retroactive payment of contributions shall be allowed, except as Provided in this Section.

"SEC. 23. Method of Collection and Payment. - The SSS shall require a complete and proper collection and payment of
contributions and proper identification of the employer and the employee. Payment may be made in cash, checks, stamps,
coupons, tickets, or other reasonable devices that the Commission may adopt.

"SEC. 24. Employment Records and Reports. - (a) Each employer shall immediately report to the SSS the names, ages, civil
status, occupations, salaries and dependents of all his employees who are subject to compulsory coverage: Provided, That if
an employee subject to compulsory coverage should die or become sick or disabled or reach the age of sixty (60) without the
SSS having previously received any report or written communication about him from his employer, the said employer shall
pay to the SSS damages equivalent to the benefits to which said employee member would have been entitled had his name
been reported on time by the employer to the SSS, except that in case of pension benefits, the employer shall be liable to pay
the SSS damages equivalent to the accumulated pension due as of the date of settlement of the claim or to the five (5) years'
pension, including dependents' pension: Provided, further, That if the contingency occurs within thirty (30) days from the
date of employment, the employer shall be relieved of his liability for damages: Provided, further, That any person or entity
engaging the services of an independent contractor shall be subsidiarily liable with such contractor for any civil liability
incurred by the latter under this Act: Provided, finally, That the same person or entity engaging the services of an
independent contractor shall require such contractor to post a surety bond to guarantee the payment of the worker's benefits.

"(b) Should the employer misrepresent the true date of employment of the employee member or remit to the SSS
contributions which are less than those required in this Act or fail to remit any contribution due prior to the date of
contingency, resulting in a reduction of benefits, the employer shall pay to the SSS damages equivalent to the difference
between the amount of benefit to which the employee member or his beneficiary is entitled had the proper contributions been
remitted to the SSS and the amount payable on the basis of contributions actually remitted: Provided, That if the employee
member or his beneficiary is entitled to pension benefits, damages shall be equivalent to the accumulated pension due as of
the date of settlement of the claim or to the five (5) years' pension, whichever is higher, including dependents' pension.

"In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof, the employer shall also be liable for the
corresponding unremitted contributions and penalties thereon.

"(c) The records and reports duly accomplished and submitted to the SSS by the employer or the member, as the case may be,
shall be kept confidential by the SSS except in compliance with a subpoena duces tecum issued by the Court, shall not be
divulged without the consent of the SSS President or any official of the SSS duly authorized by him, shall be presumed
correct as to the data and other matters stated therein, unless the necessary corrections to such records and reports have been
properly made by the parties concerned before the right to the benefit being claimed accrues, and shall be made the basis for
the adjudication of the claim. If as a result of such adjudication the SSS in good faith pays a monthly pension to a beneficiary
who is inferior in right to another beneficiary or with whom another beneficiary is entitled to share, such payments shall
discharge the SSS from liability unless and until such other beneficiary notifies the SSS of his claim prior to the payments.

"(d) Every employer shall keep true and accurate work records for such period and containing such information as the
Commission may prescribe, in addition to an "Annual Register of New and Separated Employees" which shall be secured
from the SSS wherein the employer shall enter on the first day of employment or on the effective date of separation, the
names of the persons employed or separated from employment, their SSS numbers, and such other data that the Commission
may require and said annual register shall be submitted to the SSS in the month of January of each year. Such records shall be
open for inspection by the SSS or its authorized representatives quarterly or as often as the SSS may require.

"The SSS may also require each employer to submit, with respect to the persons in his employ, reports needed for the
effective administration of this Act.
"(e) Each employer shall require, as a condition to employment, the presentation of a registration number secured by the
prospective employee from the SSS in accordance with such procedure as the SSS may adopt: Provided, That in case of
employees who have been assigned registration numbers by virtue of a previous employment, such numbers originally
assigned to them should be used for purposes of this Section: Provided, further, That the issuance of such registration
numbers by the SSS shall not exempt the employer from complying with the provisions of paragraph (a) of this Section.

"(f) Notwithstanding any law to the contrary, microfilm, or non-erasable optical disk and other similar archival media copies
of original SSS records and reports, duly certified by the official custodian thereof, shall have the same evidentiary value as
the originals and be admissible as evidence in all legal proceedings.

"(g) Notwithstanding any law to the contrary, local government units shall, prior to issuing any annual business license or
permit, require submission of certificate of SSS coverage and compliance with the provisions of this Act: Provided, That the
certification or clearance shall be issued by the SSS within five (5) working days from receipt of the request.

"SEC. 24-A. Report and Registration of the Self-Employed Member. - Each covered self-employed person shall, within thirty
(30) days from the first day he started the practice of his profession or business operations register and report to the SSS his
name, age, civil status, and occupation, average monthly net income and his dependents.

"SEC. 25. Deposits and Disbursements. - All money paid to or collected by the SSS every year under this Act, and all
accruals thereto shall be deposited, administered and disbursed in the same manner and under the same conditions and
requirements as Provided by law for other public special funds: Provided, That not more than twelve percent (12%) of the
total yearly contributions plus three percent (3%) of other revenues shall be disbursed for operational expenses such as
salaries and wages, supplies and materials, depreciation and the maintenance of offices of the SSS: Provided, further, That if
the expenses in any year are less than the maximum amount permissible, the difference shall not be availed of as additional
expenses in the following years.

"SEC. 26. Investment of Reserve Funds. - All revenues of the SSS that are not needed to meet the current administrative and
operational expenses incidental to the carrying out of this Act shall be accumulated in a fund to be known as the "Reserve
Fund." Such portions of the Reserve Fund as are not needed to meet the current benefit obligations thereof shall be known as
the "Investment Reserve Fund" which the Commission shall manage and invest with the skill, care, prudence and diligence
necessary under the circumstances then prevailing that a prudent man acting in like capacity and familiar with such matters
would exercise in the conduct of an enterprise of a like character and with similar aims. Pursuant thereto, and in line with the
basic principles of safety, good yield and liquidity, the Commission shall invest the funds to earn an annual income not less
than the average rates of treasury bills or any other acceptable market yield indicator in any or in all of the following:

"(a) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the Philippines, or in
bonds, securities, promissory notes or other evidence of indebtedness to which the full faith, credit and unconditional
guarantee of the Government of the Philippines is pledged;

"(b) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the Philippines, or any
agencies or instrumentalities to finance domestic infrastructure projects such as roads, bridges, ports, telecommunications,
and other similar projects: Provided, That the instruments issued by an agency or instrumentality of the government shall be
guaranteed by the Government of the Philippines or any government financial institution or acceptable multilateral agency:
Provided, further, That the SSS shall have priority over the revenues of the projects: Provided, finally, That such investments
shall not exceed thirty percent (30%) of the Investment Reserve Fund;

"(c) In bonds, securities, promissory notes or other evidence of indebtedness of government financial institutions or
government corporations with acceptable credit or guarantee: Provided, That such investments shall not exceed thirty percent
(30%) of the Investment Reserve Fund;

"(d) In bonds, securities, promissory notes or other evidence of indebtedness of any bank doing business in the Philippines
and in good standing with the Bangko Sentral ng Pilipinas to finance loans to private corporations doing business in the
Philippines, including schools, hospitals, small-and-medium scale industries, cooperatives and non-governmental
organizations, in which case the collaterals or securities shall be assigned to the SSS under such terms and conditions as the
Commission may prescribe: Provided, That in the case of bank deposits, they shall not exceed at any time the unimpaired
capital and surplus or total private deposits of the depository bank, whichever is smaller: Provided, further, That said bank
shall first have been designated as a depository for this purpose by the Monetary Board of the Bangko Sentral ng Pilipinas:
Provided, finally, That such investments shall not exceed forty percent (40%) of the Investment Reserve Fund;

"(e) In bonds, securities, promissory notes or other evidence of indebtedness of shelter agencies of the National Government
or financial intermediaries to finance housing loans of members; and in long-term direct individual or group housing loans
giving priority to the low-income groups, up to a maximum of ninety percent (90%) of the appraised value of the properties
to be mortgaged by the borrowers; and

"In short and medium term loans to members such as salary, educational, livelihood, marital, calamity and emergency loans:
Provided, That not more than thirty five percent (35%) of the Investment Reserve Fund at any time shall be invested for
housing purposes: Provided, further, That not more than ten percent (10%) of the Investment Reserve Fund shall be invested
in short and medium term loans;

"(f) In bonds, securities, promissory notes or other evidence of indebtedness of educational or medical institutions to finance
the construction, improvement and maintenance of schools and hospitals and their equipment and facilities: Provided, That
such investments shall not exceed ten percent (10%) of the Investment Reserve Fund;

"(g) In real estate property, including shares of stocks involving real estate property, and investment secured by first
mortgages on real estate or other collaterals acceptable to the SSS: Provided, That such projects and investments shall, in the
determination of the Commission, redound to the benefit of the SSS, its members, as well as the general public: Provided,
further, That investment in real estate property, including shares of stocks involving real estate property shall not exceed five
percent (5%) of the Investment Reserve Fund: Provided, finally, That investments in other income earning projects and
investments secured by first mortgages or other collaterals shall not exceed twenty five percent (25%) of the Investment
Reserve Fund;

"(h) In bonds, debentures, securities, promissory notes or other evidence of indebtedness of any prime corporation or
multilateral institutions to finance domestic projects: Provided, That the issuing or assuming entity or its predecessors shall
not have defaulted in the payment of interest on any of its securities and that during each of any three (3) including the last
two (2) of the five (5) fiscal years next preceding the date of acquisition by the SSS of such bonds, debentures or other
evidence of indebtedness, the net earnings of the issuing or assuming institution available for its fixed charges, as defined in
this Act, shall have been not less than one and one-quarter times the total of its fixed charges for such year: Provided, further,
That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund;

"(i) In preferred or common shares of stocks listed or about to be listed in the stock exchange or options or warrants to such
stocks or, subject to prior approval of the Bangko Sentral ng Pilipinas, such other risk management instruments of any prime
or solvent corporation or financial institution created or existing under the laws of the Philippines with proven track record of
profitability over the last three (3) years and payment of dividends at least once over the same period: Provided, That such
investments shall not exceed thirty percent (30%) of the Investment Reserve Fund;

"(j) In domestic or foreign mutual funds in existence for at least three (3) years; Provided, That such investments shall not
exceed twenty percent (20%) of the Investment Reserve Fund: Provided, further, That investments in foreign mutual funds
shall not exceed one percent (1%) of the Investment Reserve Fund in the first year which shall be increased by one percent
(1%) for each succeeding year, but in no case shall it exceed seven and one-half percent (7.5%) of the Investment Reserve
Fund;

"(k) In foreign currency deposits or triple "A" foreign currency denominated debts, prime and non-speculative equities, and
other Bangko Sentral ng Pilipinas approved financial instruments or other assets issued in accordance with the existing laws
of the countries where such financial instruments are issued: Provided, That these instruments or assets are listed in bourses
of the respective countries where these instruments or assets are issued: Provided, further, That the issuing company has
proven track of record of profitability over the last three (3) years and a record of regular dividend pay-out over the same
period: Provided, finally, That such investments shall not exceed one percent (1%) of the Investment Reserve Fund in the
first year which shall be increased by one percent (1%) for each succeeding year, but in no case shall it exceed seven and
one-half percent (7.5%) of the Investment Reserve Fund;

"(l) In loans secured by such collaterals like cash, government securities or guarantees of multilateral institutions: Provided,
That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund; and
"(m) In other Bangko Sentral ng Pilipinas approved investment instruments with the same intrinsic quality as those
enumerated in paragraphs (a) to (l) hereof, subject to the policies and guidelines which the Commission may formulate.

"No portion of the Investment Reserve Fund or income thereof shall accrue to the general fund of the National Government
or to any of its agencies or instrumentalities, including government-owned or controlled corporations, except as may be
allowed under this Act: Provided, That no portion of the Investment Reserve Fund shall be invested for any purpose or in any
instrument, institution or industry over and above the prescribed cumulative ceilings as follows:

40% in private securities

35% in housing

30% in real estate related investments

10% in short and medium-term member loans

30% in government financial institutions and corporations

30% in infrastructure projects

15% in any particular industry

7.5% in foreign-currency denominated investments

"SEC. 26-A. Fund Managers. - As part of its investment operations, the SSS may appoint local or, in the absence thereof,
foreign fund managers to manage the Investment Reserve Fund, as it may deem appropriate.

"SEC. 26-B. Mortgagor Insurance Account. - (a) As part of its investment operations, the SSS shall act as insurer of all or
part of its interest on SSS properties mortgaged to the SSS, or lives of mortgagors whose properties are mortgaged to the
SSS. For this purpose, the SSS shall establish a separate account to be known as the "Mortgagors' Insurance Account." All
amounts received by the SSS in connection with the aforesaid insurance operations shall be placed in the Mortgagors'
Insurance Account. The assets and liabilities of the Mortgagors' Insurance Account shall at all times be clearly identifiable
and distinguishable from the assets and liabilities in all other accounts of the SSS. Notwithstanding any provision of law to
the contrary, the assets held in the Mortgagors' Insurance Account shall not be chargeable with the liabilities arising out of
any other business the SSS may conduct but shall be held and applied exclusively for the benefit of the owners or
beneficiaries of the insurance contracts issued by the SSS under this paragraph.

"(b) The SSS may insure any of its interest or part thereof with any private company or reinsurer. The Insurance Commission
or its authorized representatives shall make an examination into the financial condition and methods of transacting business
of the SSS at least once in two (2) years, but such examination shall be limited to the insurance operation of the SSS as
authorized under this paragraph and shall not embrace the other operations of the SSS; and the report of said examination
shall be submitted to the Commission and a copy thereof shall be furnished the Office of the President of the Philippines
within a reasonable time after the close of the examination: Provided, That for each examination, the SSS shall pay to the
Insurance Commission an amount equal to the actual expense of the Insurance Commission in the conduct of examination,
including the salaries of the examiners and of the actuary of the Insurance Commission who have been assigned to make such
examination for the actual time spent in said examination: Provided, further, That the general law on insurance and the rules
and regulations promulgated thereunder shall have suppletory application insofar as it is not in conflict with this Act and its
rules and regulations.

"SEC. 27. Records and Reports. - The SSS President shall keep and cause to keep records of operations of the funds of the
SSS and of disbursements thereof and all accounts of payments made out of said funds. During the month of January of each
year, the SSS President shall prepare for submission to the President of the Philippines and to Congress of the Philippines a
report of operations of the SSS during the preceding year, including statistical data on the number of persons covered and
benefited, their occupations and employment status, the duration and amount of benefits paid, the finances of the SSS at the
close of the said year, and recommendations. He shall also cause to be published in two (2) newspapers of general circulation
in the Philippines a synopsis of the annual report, showing in particular the status of the finances of the SSS and the benefits
administered.

"SEC. 28. Penal Clause. - (a) Whoever, for the purpose of causing any payment to be made under this Act, or under an
agreement thereunder, where none is authorized to be paid, shall make or cause to be made false statement or representation
as to any compensation paid or received or whoever makes or causes to be made any false statement of a material fact in any
claim for any benefit payable under this Act, or application for loan with the SSS, or whoever makes or causes to be made
any false statement, representation, affidavit or document in connection with such claim or loan, shall suffer the penalties
Provided for in Article One hundred seventy-two of the Revised Penal Code.

"(b) Whoever shall obtain or receive any money or check under this Act or any agreement thereunder, without being entitled
thereto with intent to defraud any member, employer or the SSS, shall be fined not less than Five thousand pesos (P5,000.00)
nor more than Twenty thousand pesos (P20,000.00) and imprisoned for not less than six (6) years and one (1) day nor more
than twelve (12) years.

"(c) Whoever buys, sells, offers for sale, uses, transfers or takes or gives in exchange, or pledges or gives in pledge, except as
authorized in this Act or in regulations made pursuant thereto, any stamp, coupon, ticket, book or other device, prescribed
pursuant to Section Twenty-three hereof by the Commission for the collection or payment of contributions required herein,
shall be fined not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or
imprisoned for not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the
court.

"(d) Whoever, with intent to defraud, alters, forges, makes or counterfeits any stamp, coupon, ticket, book or other device
prescribed by the Commission for the collection or payment of any contribution required herein, or uses, sells, lends, or has
in his possession any such altered, forged or counterfeited materials, or makes, uses, sells or has in his possession any such
altered, forged, material in imitation of the material used in the manufacture of such stamp, coupon, ticket, book or other
device, shall be fined not less than Five thousand pesos (P5,000.00) non more than Twenty thousand pesos (P20,000.00) or
imprisoned for not less than six years (6) and one (1) day nor more than twelve (12) years, or both, at the discretion of the
court.

"(e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations promulgated by the
Commission, shall be punished by a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand
pesos (P20,000.00), or imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years, or both,
at the discretion of the court: Provided, That where the violation consists in failure or refusal to register employees or
himself, in case of the covered self-employed or to deduct contributions from the employees' compensation and remit the
same to the SSS, the penalty shall be a fine of not less Five thousand pesos (P5,000.00) nor more than Twenty thousand
pesos (P20,000.00) and imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years.

"(f) If the act or omission penalized by this Act be committed by an association, partnership, corporation or any other
institution, its managing head, directors or partners shall be liable for the penalties Provided in this Act for the offense.

"(g) Any employee of the SSS who receives or keeps funds or property belonging, payable or deliverable to the SSS and who
shall appropriate the same, or shall take or misappropriate, or shall consent, or through abandonment or negligence, shall
permit any other person to take such property or funds, wholly or partially, or shall otherwise be guilty of misappropriation of
such funds or property, shall suffer the penalties Provided in Article Two hundred seventeen of the Revised Penal Code.

"(h) Any employer who, after deducting the monthly contributions or loan amortizations from his employee's compensation,
fails to remit the said deduction to the SSS within thirty (30) days from the date they became due, shall be presumed to have
misappropriated such contributions or loan amortizations and shall suffer the penalties Provided in Article Three hundred
fifteen of the Revised Penal Code.

"(i) Criminal action arising from a violation of the provisions of this Act may be commenced by the SSS or the employee
concerned either under this Act or in appropriate cases under the Revised Penal Code: Provided, That such criminal action
may be filed by the SSS in the city or municipality where the SSS office is located, if the violation was committed within its
territorial jurisdiction or in Metro Manila, at the option of the SSS.
 "SEC. 29. Government Aid. - The establishment of the SSS shall not disqualify the members and employers from receiving
such government assistance, financial or otherwise, as may be Provided.

"SEC. 30. Transitory Clause. - Any employer who is delinquent or has not remitted all contributions due and payable to the
SSS may, within six (6) months from the effectivity of this Act, remit said contributions or submit a proposal to pay the same
in installment within a period of not more than twelve (12) months from the effectivity of this Act without incurring the
prescribed penalty, subject to the implementing rules and regulations which the Commission may prescribe: Provided, That
the employer submits the corresponding collection lists together with the remittance or proposal to pay in installments:
Provided, further, That in case the employer fails to remit contributions within the six-month grace period or defaults in the
payment of any amortization Provided the approved proposal, the prescribed penalty shall be imposed from the time the
contributions first became due as Provided in Section 22 (a) hereof."

Section 2. Separability Clause. - If any provision of this Act is declared invalid, the other provisions not affected thereby shall remain
valid.

Section 3. Repealing Clause. - All laws, proclamations, executive orders, rules and regulations or parts thereof inconsistent with this
Act are hereby repealed, modified or amended accordingly: Provided, That no person shall be deemed to be vested with any property
or other right by virtue of the enactment or operation of this Act.

Section 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at
least two (2) national newspapers of general circulation whichever comes earlier.

Approved: May 01, 1997

May 30, 1997

REPUBLIC ACT NO. 8291

AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS AMENDED, EXPANDING AND INCREASING THE
COVERAGE AND BENEFITS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM, INSTITUTING REFORMS
THEREIN AND FOR OTHER PURPOSES

SECTION 1. Presidential Decree No. 1146, as amended, otherwise known as the "Revised Government Service Insurance Act of
1977", is hereby further amended to read as follows:

"SECTION 1. Title. The short title of this Act shall be: 'The Government Service Insurance System Act of 1997.'

"A. DEFINITIONS

"SECTION 2. Definition of Terms. Unless the context otherwise indicates, the following terms shall mean:

"(a) GSIS The Government Service Insurance System created by Commonwealth Act No. 186;

"(b) Board The Board of Trustees of the Government Service Insurance System;

"(c) Employer The national government, its political subdivisions, branches, agencies or instrumentalities, including government-
owned or controlled corporations, and financial institutions with original charters, the constitutional commissions and the judiciary;

"(d) Employee or Member Any person, receiving compensation while in the service of an employer as defined herein, whether by
election or appointment, irrespective of status of appointment, including barangay and sanggunian officials;

"(e) Active Member A member who is not separated from the service;
"(f) Dependents Dependents shall be the following: (a) the legitimate spouse dependent for support upon the member or pensioner;
(b) the legitimate, legitimated, legally adopted child, including the illegitimate child, who is unmarried, not gainfully employed, not
over the age of majority, or is over the age of majority but incapacitated and incapable of self-support due to a mental or physical
defect acquired prior to age of majority; and (c) the parents dependent upon the member for support;

"(g) Primary beneficiaries The legal dependent spouse until he/she

remarries and the dependent children;

"(h) Secondary beneficiaries The dependent parents and, subject to the restrictions on dependent children, the legitimate
descendants;

"(i) Compensation The basic pay or salary received by an employee, pursuant to his election/appointment, excluding per diems,
bonuses, overtime pay, honoraria, allowances and any other emoluments received in addition to the basic pay which are not integrated
into the basic pay under existing laws;

"(j) Contribution The amount payable to the GSIS by the member and the employer in accordance with Section 5 of this Act;

"(k) Current Daily Compensation The actual daily compensation or the actual monthly compensation divided by the number of
working days in the month of contingency but not to exceed twenty-two (22) days;

"(l) Average Monthly Compensation (AMC) The quotient arrived at after dividing the aggregate compensation received by the
member during his last thirty-six (36) months of service preceding his separation/retirement/disability/death by thirty-six (36), or by
the number of months he received such compensation if he has less than thirty-six (36) months of service: Provided, That the average
monthly compensation shall in no case exceed the amount and rate as may be respectively set by the Board under the rules and
regulations implementing this Act as determined by the actuary of the GSIS: Provided, further, That initially the average monthly
compensation shall not exceed Ten thousand pesos (P10,000.00), and premium shall be nine percent (9%) and twelve percent (12%)
for employee and employer covering the AMC limit and below; and two percent (2%) and twelve percent (12%) for employee and
employer covering the compensation above the AMC limit;

"(m) Revalued average monthly compensation An amount equal to one hundred seventy percent (170%) of the first One thousand
pesos (P1,000) of the average monthly compensation plus one hundred percent (100%) of the average monthly compensation in
excess of One thousand pesos (P1,000);

"(n) Lump sum The basic monthly pension multiplied by sixty (60);

"(o) Pensioner Any person receiving old-age or permanent total disability pension or any person who has received the lump sum
excluding one receiving survivorship pension benefits as defined in Section 20 of this Act;

"(p) Gainful Occupation Any productive activity that provided the member with income at least equal to the minimum
compensation of government employees;

"(q) Disability Any loss or impairment of the normal functions of the physical and/or mental faculty of a member which reduces or
eliminates his/her capacity to continue with his/her current gainful occupation or engage in any other gainful occupation;

"(r) Total Disability Complete incapacity to continue with his present employment or engage in any gainful occupation due to the
loss or impairment of the normal functions of the physical and/or mental faculties of the member;

"(s) Permanent Total Disability Accrues or arises when recovery from the impairment mentioned in Section 2(Q) is medically
remote;

"(t) Temporary Total Disability Accrues or arises when the impaired physical and/or mental faculties can be rehabilitated and/or
restored to their normal functions;

"(u) Permanent Partial Disability Accrues or arises upon the irrevocable loss or impairment of certain portion/s of the physical
faculties, despite which the member is able to pursue a gainful occupation.
"B. MEMBERSHIP IN THE GSIS

"SECTION 3. Compulsory Membership. Membership in the GSIS shall be compulsory for all employees receiving compensation
who have not reached the compulsory retirement age, irrespective of employment status, except members of the Armed Forces of the
Philippines and the Philippine National Police, subject to the condition that they must settle first their financial obligation with the
GSIS, and contractuals who have no employer and employee relationship with the agencies they serve.

"Except for the members of the judiciary and constitutional commissions who shall have life insurance only, all members of the GSIS
shall have life insurance, retirement, and all other social security protection such as disability, survivorship, separation, and
unemployment benefits.

"SECTION 4. Effect of Separation from the Service. A member separated from the service shall continue to be a member, and shall
be entitled to whatever benefits he has qualified to in the event of any contingency compensable under this Act.

"C. SOURCES OF FUNDS

"SECTION 5. Contributions. (a) It shall be mandatory for the member and the employer to pay the monthly contributions specified
in the following schedule:

"Monthly Compensation Percentage of Monthly

Compensation Payable by

Member Employer

I. Maximum Average

Monthly Compensation

(AMC) Limit and Below 9.0% 12.0%

II. Over the Maximum AMC Limit

III.

Up to the Maximum AMC Limit 9.0% 12.0%

In Excess of the AMC Limit 2.0% 12.0%

"Members of the judiciary and constitutional commissioners shall pay three percent (3%) of their monthly compensation as personal
share, and their employers a corresponding three percent (3%) share for their life insurance coverage.

"(b) The employer shall include in its annual appropriation the necessary amounts for its share of the contributions indicated above,
plus any additional premiums that may be required on account of the hazards or risks of its employees' occupation.

"(c) It shall be mandatory and compulsory for all employers to include the payment of contributions in their annual appropriations.
Penal sanctions shall be imposed upon employers who fail to include the payment of contributions in their annual appropriations or
otherwise fail to remit the accurate/exact amount of contributions on time, or delay the remittance of premium contributions to the
GSIS. The heads of offices and agencies shall be administratively liable for non-remittance or delayed remittance of premium
contributions to the GSIS.

"SECTION 6. Collection and Remittance of Contributions. (a) The employer shall report to the GSIS the names of all its
employees, their corresponding employment status, positions, salaries and such other pertinent information, including subsequent
changes therein, if any, as may be required by the GSIS; the employer shall deduct each month from the monthly salary or
compensation of each employee the contribution payable by him in accordance with the schedule prescribed in the rules and
regulations implementing this Act.

"(b) Each employer shall remit directly to the GSIS the employees' and employers' contributions within the first ten (10) days of the
calendar month following the month to which the contributions apply. The remittance by the employer of the contributions to the
GSIS shall take priority over and above the payment of any and all obligations, except salaries and wages of its employees.

"SECTION 7. Interests on Delayed Remittances. Agencies which delay the remittance of any and all monies due the GSIS shall be
charged interests as may be prescribed by the Board but not less than two percent (2%) simple interest per month. Such interest shall
be paid by the employers concerned.

"SECTION 8. Government Guarantee. The government of the Republic of the Philippines hereby guarantees the fulfillment of the
obligations of the GSIS to its members as and when they fall due.

"D. BENEFITS

"SECTION 9. Computation of the Basic Monthly Pension. (a) the basic monthly pension is equal to:

"1) thirty-seven and one-half percent (37.5%) of the revalued average monthly compensation; plus

"2) two and one-half percent (2.5%) of said revalued average monthly compensation for each year of service in excess of fifteen (15)
years: Provided, That the basic monthly pension shall not exceed ninety percent (90%) of the average monthly compensation.

"(b) The basic monthly pension may be adjusted upon the recommendation of the President and General Manager of the GSIS and
approved by the President of the Philippines in accordance with the rules and regulations prescribed by the GSIS: Provided, however,
That the basic monthly pension shall not be less than One thousand and three hundred pesos (P1,300.00): Provided, further, That the
basic monthly pension for those who have rendered at least twenty (20) years of service after the effectivity of this Act shall not be
less than Two thousand four hundred pesos (P2,400.00) a month.

"SECTION 10. Computation of Service. (a) The computation of service for the purpose of determining the amount of benefits
payable under this Act shall be from the date of original appointment/election, including periods of service at different times under
one or more employers, those performed overseas under the authority of the Republic of the Philippines, and those that may be
prescribed by the GSIS in coordination with the Civil Service Commission.

"(b) All service credited for retirement, resignation or separation for which corresponding benefits have been awarded under this Act
or other laws shall be excluded in the computation of service in case of reinstatement in the service of an employer and subsequent
retirement or separation which is compensable under this Act.

"For the purpose of this section the term service shall include full time service with compensation: Provided, That part time and other
services with compensation may be included under such rules and regulations as may be prescribed by the GSIS.

"SEPARATION BENEFITS

"SECTION 11. Separation Benefits. The separation benefit shall consist of: (a) a cash payment equivalent to one hundred percent
(100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve thousand pesos
(P12,000) payable upon reaching sixty (60) years of age or upon separation, whichever comes later: Provided, That the member
resigns or separates from the service after he has rendered at least three (3) years of service but less than fifteen (15) years; or

"(b) A cash payment equivalent to eighteen (18) times his basic monthly pension payable at the time of resignation or separation, plus
an old-age pension benefit equal to the basic monthly pension payable monthly for life upon reaching the age of sixty (60): Provided,
That the member resigns or separates from the service after he has rendered at least fifteen (15) years of service and is below sixty
(60) years of age at the time of resignation or separation.

"SECTION 12. Unemployment or Involuntary Separation Benefits. Unemployment benefits in the form of monthly cash payments
equivalent to fifty percent (50%) of the average monthly compensation shall be paid to a permanent employee who is involuntarily
separated from the service due to the abolition of his office or position usually resulting from reorganization: Provided, That he has
been paying integrated contributions for at least one (1) year prior to separation. Unemployment benefits shall be paid in accordance
with the following schedule:

"Contributions Made Benefit Duration

1 year but less than 3 years 2 months

3 or more years but less than 6 years 3 months

6 or more years but less than 9 years 4 months

9 or more years but less than 11 years 5 months

11 or more years but less than 15 years 6 months

"The first payment shall be equivalent to two (2) monthly benefits. A seven-day (7) waiting period shall be imposed on succeeding
monthly payments.

"All accumulated unemployment benefits paid to the employee during his entire membership with the GSIS shall be deducted from
voluntary separation benefits.

"The GSIS shall prescribe the detailed guidelines in the operationalization of this section in the rules and regulations implementing
this Act.

"RETIREMENT BENEFITS

"SECTION 13. Retirement Benefits. (a) Retirement benefit shall be:

"(1) the lump sum payment as defined in this Act payable at the time of retirement plus an old-age pension benefit equal to the basic
monthly pension payable monthly for life, starting upon expiration of the five-year (5) guaranteed period covered by the lump sum; or

"(2) cash payment equivalent to eighteen (18) months of his basic monthly pension plus monthly pension for life payable immediately
with no five-year (5) guarantee.

"(b) Unless the service is extended by appropriate authorities, retirement shall be compulsory for an employee at sixty-five (65) years
of age with at least fifteen (15) years of service: Provided, That if he has less than fifteen (15) years of service, he may be allowed to
continue in the service in accordance with existing civil service rules and regulations.

"SECTION 13-A. Conditions for Entitlement. A member who retires from the service shall be entitled to the retirement benefits in
paragraph (a) of Section 13 hereof: Provided, That:

(1) he has rendered at least fifteen (15) years of service;

(2) he is at least sixty (60) years of age at the time of retirement; and

(3) he is not receiving a monthly pension benefit from permanent total disability.

"SECTION 14. Periodic Pension Adjustment. The monthly pension of all pensioners including all those receiving survivorship
pension benefits shall be periodically adjusted as may be recommended by the GSIS' actuary and approved by the Board in accordance
with the rules and regulations prescribed by the GSIS.

"PERMANENT DISABILITY BENEFITS

"SECTION 15. General Conditions for Entitlement. A member who suffers permanent disability for reasons not due to his grave
misconduct, notorious negligence, habitual intoxication, or willful intention to kill himself or another, shall be entitled to the benefits
provided for under Sections 16 and 17 immediately following, subject to the corresponding conditions therefor.

"SECTION 16. Permanent Total Disability Benefits. (a) If the permanent disability is total, he shall receive a monthly income
benefit for life equal to the basic monthly pension effective from the date of disability: Provided, That:

(1) he is in the service at the time of disability; or

(2) if separated from the service, he has paid at least thirty-six (36) monthly contributions within the five (5) year period
immediately preceding his disability, or has paid a total of at least one hundred eighty (180) monthly contributions, prior
to his disability: Provided, further, That if at the time of disability, he was in the service and has paid a total of at least
one hundred eighty (180) monthly contributions, in addition to the monthly income benefit, he shall receive a cash
payment equivalent to eighteen (18) times his basic monthly pension: Provided, finally, That a member cannot enjoy the
monthly income benefit for permanent disability and the old-age retirement simultaneously.

"(b) If a member who suffers permanent total disability does not satisfy conditions (1) and (2) in paragraph (a) of this section but has
rendered at least three (3) years service at the time of his disability, he shall be advanced the cash payment equivalent to one hundred
percent (100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve
Thousand pesos (P12,000) which should have been his separation benefit.

"(c) Unless the member has reached the minimum retirement age, disability benefit shall be suspended when:

"(1) he is reemployed or

"(2) he recovers from disability as determined by the GSIS, whose decision shall be final and binding; or

"(3) he fails to present himself for medical examination when required by the GSIS.

"(d) The following disabilities shall be deemed total and permanent:

"(1) complete loss of sight of both eyes;

"(2) loss of two (2) limbs at or above the ankle or wrist;

"(3) permanent complete paralysis of two(2) limbs;

"(4) brain injury resulting in incurable imbecility or insanity; and

"(5) such other cases as may be determined by the GSIS.

"SECTION 17. Permanent Partial Disability Benefits. (a) If the disability is partial, he shall receive a cash payment in accordance
with a schedule of disabilities to be prescribed by the GSIS: Provided, That he satisfies either conditions (1) or (2) of Section 16(a);

"(b) The following disabilities shall be deemed permanent and partial:

"(1) complete and permanent loss of the use of:

(i) any finger

(ii) any toe

(iii) one arm

(iv) one hand

(v) one foot

(vi) one leg

(vii) one or both ears

(viii) hearing of one or both ears

(ix) sight of one eye

"(2) such other cases as may be determined by the GSIS.

"TEMPORARY DISABILITY BENEFITS

"SECTION 18. Temporary Total Disability Benefit. (a) A member who suffers temporary total disability for reasons not due to any
of the conditions enumerated in Section 15 hereof shall be entitled to seventy-five percent (75%) of his current daily compensation for
each day or fraction thereof of temporary disability benefit not exceeding one hundred twenty (120) days in one calendar year after
exhausting all his sick leave credits and collective bargaining agreement sick leave benefits, if any, but not earlier than the fourth day
of his temporary total disability: Provided, That:

"(1) he is in the service at the time of his disability; or

"(2) if separated, he has rendered at least three (3) years of service and has paid at least six (6) monthly contributions in the twelve-
month period immediately preceding his disability.

Provided, however, That a member cannot enjoy the temporary total disability benefit and sick leave pay simultaneously: Provided,
further, That if the disability requires more extensive treatment that lasts beyond one hundred twenty (120) days, the payment of the
temporary total disability benefit may be extended by the GSIS but not to exceed a total of two hundred forty (240) days.

"(b) The temporary total disability benefit shall in no case be less than Seventy pesos (P70.00) a day.

"(c) The notices required of the member and the employer, the mode of payment, and the other requirements for entitlement to
temporary total disability benefits shall be provided in the rules and regulations to be prescribed by the GSIS.

"SECTION 19. Non-scheduled Disability. For injuries or illnesses resulting in a disability not listed in the schedule of partial/total
disability, as provided herein, the GSIS shall determine the nature of the disability and the corresponding benefits therefor.

"SURVIVORSHIP BENEFITS

"SECTION 20. Survivorship Benefits. When a member or pensioner dies, the beneficiaries shall be entitled to survivorship benefits
provided in Sections 21 and 22 hereunder subject to the conditions therein provided for. The survivorship pension shall consist of:

(1) the basic survivorship pension which is fifty percent (50%) of the basic monthly pension; and

(2) the dependent children's pension not exceeding fifty percent (50%) of the basic monthly pension.

(3)

"SECTION 21. Death of a Member. (a) Upon the death of a member, the primary beneficiaries shall be entitled to:

(1) survivorship pension: Provided, That the deceased:

 (i) was in the service at the time of his death; or

(ii) if separated from the service, has at least three (3) years of service at the time of his death and has paid thirty-six (36)
monthly contributions within the five-year period immediately preceding his death; or has paid a total of at least one hundred eighty
(180) monthly contributions prior to his death; or

(2) the survivorship pension plus a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for
every year of service: Provided, That the deceased was in the service at the time of his death with at least three (3) years of service; or

(3) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid
contributions, but not less than Twelve thousand pesos (P12,000.00): Provided, That the deceased has rendered at least three (3) years
of service prior to his death but does not qualify for the benefits under the item (1) or (2) of this paragraph.

(b) The survivorship pension shall be paid as follows:

(1) when the dependent spouse is the only survivor, he/she shall receive the basic survivorship pension for life or
until he/she remarries;

(2) when only dependent children are the survivors, they shall be entitled to the basic survivorship pension for as
long as they are qualified, plus the dependent children's pension equivalent to ten percent (10%) of the basic monthly pension
for every dependent child not exceeding five (5), counted from the youngest and without substitution;

(3) when the survivors are the dependent spouse and the dependent children, the dependent spouse shall receive the
basic survivorship pension for life or until he/she remarries, and the dependent children shall receive the dependent children's
pension mentioned in the immediately preceding paragraph (2) hereof.

(c) In the absence of primary beneficiaries, the secondary beneficiaries shall be entitled to:

(1) the cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year
of service he paid contributions, but not less than Twelve thousand pesos (P12,000): Provided, That the member is in the
service at the time of his death and has at least three (3) years of service; or

(2) in the absence of secondary beneficiaries, the benefits under this paragraph shall be paid to his legal heirs.

(d) For purposes of the survivorship benefits, legitimate children shall include legally adopted and legitimate children.

"SECTION 22. Death of a Pensioner. Upon the death of an old-age pensioner or a member receiving the monthly income benefit
for permanent disability, the qualified beneficiaries shall be entitled to the survivorship pension defined in Section 20 of this Act,
subject to the provisions of paragraph (b) of Section 21 hereof. When the pensioner dies within the period covered by the lump sum,
the survivorship pension shall be paid only after the expiration of the said period.

"FUNERAL BENEFITS

"SECTION 23. Funeral Benefit. The amount of funeral benefit shall be determined and specified by the GSIS in the rules and
regulations but shall not be less than Twelve thousand pesos (P12,000.00): Provided, That it shall be increased to at least Eighteen
thousand pesos (P18,000.00) after five (5) years and shall be paid upon the death of:

(a) an active member as defined under Section 2(e) of this Act; or

(b) a member who has been separated from the service, but who may be entitled to future benefit pursuant to Section 4 of this Act; or

(c) a pensioner, as defined in Section 2(o) of this Act; or

(d) a retiree who at the time of his retirement was of pensionable age under this Act but who opted to retire under Republic Act No.
1616.
"LIFE INSURANCE BENEFITS

"SECTION 24. Compulsory Life Insurance. All employees except for Members of the Armed Forces of the Philippines (AFP) and
the Philippine National Police (PNP) shall, under such terms and conditions as may be promulgated by the GSIS, be compulsorily
covered with life insurance, which shall automatically take effect as follows:

(1) for those employed after the effectivity of this Act, their insurance shall take effect on the date of their employment;

(2) for those whose insurance will mature after the effectivity of this Act, their insurance shall be deemed renewed on the day
following the maturity or expiry date of their insurance;

(3) for those without any life insurance as of the effectivity of this Act, their insurance shall take effect following said effectivity.

"SECTION 25. Dividends. An annual dividend may be granted to all members of the GSIS whose life insurance is in force for at
least one (1) year in accordance with a dividend allocation formula to be determined by the GSIS.

"SECTION 26. Optional Insurance. Subject to the rules and regulations prescribed by the GSIS, a member may apply for insurance
and/or pre-need coverage embracing life, health, hospitalization, education, memorial plans, and such other plans as may be designed
by the GSIS, for himself and/or his dependents. Any employer may likewise apply for group insurance coverage for its employees.
The payment of the premiums/installments for optional insurance and pre-need products may be made by the insured or his employer
and/or any person acceptable to the GSIS.

"SECTION 27. Reinsurance. The GSIS may reinsure any of its interests or part thereof with any private company or reinsurer
whether domestic or foreign: Provided, That the GSIS shall submit an annual report on its reinsurance operations to the Insurance
Commission.

"E. ADJUDICATION OF CLAIMS AND DISPUTES

"SECTION 28. Prescription. Claims for benefits under this Act except for life and retirement shall prescribe after four (4) years
from the date of contingency.

"SECTION 29. Facility of Payment. The GSIS shall prescribe rules and regulations to facilitate payment of benefit, proceeds, and
claims under this Act and any other laws administered by the GSIS. Payments made by the GSIS prior to its receipt of an adverse
claim, to a beneficiary or claimant subsequently found not entitled thereto, shall not bar the legal and eligible recipient to his right to
demand the payment of benefits, proceeds, and claims from the GSIS, who shall, however, have a right to institute the appropriate
action in a court of law against the ineligible recipient.

"SECTION 30. Settlement of Disputes. The GSIS shall have original and exclusive jurisdiction to settle any dispute arising under
this Act and any other laws administered by the GSIS.

The Board may designate any member of the Board, or official of the GSIS who is a lawyer, to act as hearing officer to receive
evidence, make findings of fact and submit recommendations thereon. The hearing officer shall submit his findings and
recommendations, together with all the documentary and testimonial evidence to the Board within thirty (30) working days from the
time the parties have closed their respective evidence and filed their last pleading. The Board shall decide the case within thirty (30)
days from the receipt of the hearing officer's findings and recommendations. The cases heard directly by the Board shall be decided
within thirty (30) working days from the time they are submitted by the parties for decision.

"SECTION 31. Appeals. Appeals from any decision or award of the Board shall be governed by Rules 43 and 45 of the 1997 Rules
of Civil Procedure adopted by the Supreme Court on April 8, 1997 which will take effect on July 1, 1997: Provided, That pending
cases and those filed prior to July 1, 1997 shall be governed by the applicable rules of procedure: Provided, further, That the appeal
shall take precedence over all other cases except criminal cases when the penalty of life imprisonment or death or reclusion perpetua is
imposable.

The appeal shall not stay the execution of the order or award unless ordered by the Board, by the Court of Appeals or by the Supreme
Court and the appeal shall be without prejudice to the special civil action of certiorari when proper.
"SECTION 32. Execution of Decision. When no appeal is perfected and there is no order to stay by the Board, by the Court of
Appeals or by the Supreme Court, any decision or award of the Board shall be enforced and executed in the same manner as decisions
of the Regional Trial Court. For this purpose, the Board shall have the power to issue to the city or provincial sheriff or its appointed
sheriff such writs of execution as may be necessary for the enforcement of such decision or award, and any person who shall fail or
refuse to comply with such decision, award, writ or process after being required to do so, shall, upon application by the GSIS, be
punished for contempt.

"SECTION 33. Oaths, Witnesses, and Production of Records. When authorized by the Board, an official or employee of the GSIS
shall have the power to administer oath and affirmation, take depositions, certify to official acts, and issue subpoena ad testificandum
and subpoena duces tecum to compel the attendance of witnesses and the production of books, papers, correspondences, and other
records deemed necessary as evidence in connection with any question arising under this Act. Any case of contumacy shall be dealt
with in accordance with the provisions of Section 580 of the Revised Administrative Code.

"F. FUNDS OF THE GSIS

"SECTION 34. Funds. All contributions payable under Section 5 of this Act together with the earnings and accruals thereon shall
constitute the GSIS Social Insurance Fund. The said Fund shall be used to finance the benefits administered by the GSIS under this
Act. In addition, the GSIS shall administer the optional insurance fund for the insurance coverage described in Section 26 hereof, the
employees' Compensation Insurance Fund created under P.D. 626, as amended, the General Insurance Fund created under Act No.
656, as amended, and such other special funds existing or that may be created for special groups or persons rendering services to the
government. The GSIS shall maintain the required reserves to guarantee the fulfillment of its obligations under this Act.

"The funds of the GSIS shall not be used for purposes other than what are provided for under this Act. Moreover, no portion of the
funds of the GSIS or income thereof shall accrue to the General Fund of the national government and its political subdivisions,
instrumentalities and other agencies including government-owned and controlled corporations except as may be allowed under this
Act.

"SECTION 35. Deposits and Disbursements. All revenues collected and all accruals thereto shall be deposited, administered and
disbursed in accordance with the law. A maximum expense loading of twelve percent (12%) of the yearly revenues from all sources
may be disbursed for administrative and operational expenses except as may be otherwise approved by the President of the Philippines
on the basis of actuarial and management studies.

"SECTION 36. Investment of Funds. The funds of the GSIS which are not needed to meet the current obligations may be invested
under such terms and conditions and rules and regulations as may be prescribed by the Board: Provided, That investments shall satisfy
the requirements of liquidity, safety/security and yield in order to ensure the actuarial solvency of the funds of the GSIS: Provided,
further, That the GSIS shall submit an annual report on all investments made to both Houses of Congress of the Philippines, to wit:

(a) in interest-bearing bonds or securities or other evidence of indebtedness of the Government of the Philippines;

(b) In interest-bearing deposits or securities in any domestic bank doing business in the Philippines: Provided, That in the case of such
deposits, these shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank,
whichever is smaller: Provided, further, That said bank has prior designation as a depository for the purpose by the Monetary Board of
the Central Monetary Authority;

(c) in direct housing loans to members and group housing projects secured by first mortgage, giving priority to the low income groups
and in short-and-medium-term loans to members such as salary, policy, educational, emergency, stock purchase plan and other similar
loans: Provided, That no less than forty percent (40%) of the investable fund of the GSIS Social Insurance Fund shall be invested for
these purposes;

(d) in bonds, securities, promissory notes or other evidence of indebtedness of educational or medical institutions to finance the
construction, improvement and maintenance of schools and hospitals;

(e) in real estate property including shares of stocks involving real estate property and investments secured by first mortgages on real
estate or other collaterals acceptable to the GSIS: Provided, That such investments shall, in the determination of the Board, redound to
the benefit of the GSIS, its members, as well as the general public;
(f) In debt instruments and other securities traded in the secondary markets;

(g) In loans to, or in bonds, debentures, promissory notes or other evidence of indebtedness of any solvent corporation created or
existing under the laws of the Philippines;

(h) In common and preferred stocks of any solvent corporation or financial institution created or existing under the laws of the
Philippines listed in the stock exchange with proven track record or profitability over the last three (3) years and payment of dividends
at least once over the same period;

(i) In domestic mutual funds including investments related to the operations of mutual funds; and

(j) In foreign mutual funds and in foreign currency deposits or foreign currency-denominated debts, non-speculative equities and other
financial instruments or other assets issued in accordance with existing laws of the countries where such financial instruments are
issued: Provided, That these instruments or assets are listed in bourses of the respective countries where these instruments or assets are
issued: Provided, further, That the issuing company has proven track record of profitability over the last three (3) years and payment
of dividends at least once over the same period.

"SECTION 37. Records and Reports. The GSIS shall keep and cause to keep such records as may be necessary for the purpose of
making actuarial studies, calculations and valuations of the funds of the GSIS including such data needed in the computation of rates
of disability, mortality, morbidity, separation and retirement among the members and any other information useful for the adjustment
of the benefits of the members. The GSIS shall maintain appropriate books of accounts to record its assets, liabilities, income,
expenses, receipts and disbursements of funds and other financial transactions and operations.

"SECTION 38. Examination and Valuation of the Funds. The GSIS shall make a periodic actuarial examination and valuation of its
funds in accordance with accepted actuarial principles.

"SECTION 39. Exemption from Tax, Legal Process and Lien. It is hereby declared to be the policy of the State that the actuarial
solvency of the funds of the GSIS shall be preserved and maintained at all times and that contribution rates necessary to sustain the
benefits under this Act shall be kept as low as possible in order not to burden the members of the GSIS and their employers. Taxes
imposed on the GSIS tend to impair the actuarial solvency of its funds and increase the contribution rate necessary to sustain the
benefits of this Act. Accordingly, notwithstanding any laws to the contrary, the GSIS, its assets, revenues including all accruals
thereto, and benefits paid, shall be exempt from all taxes, assessments, fees, charges or duties of all kinds. These exemptions shall
continue unless expressly and specifically revoked and any assessment against the GSIS as of the approval of this Act are hereby
considered paid. Consequently, all laws, ordinances, regulations, issuances, opinions or jurisprudence contrary to or in derogation of
this provision are hereby deemed repealed, superseded and rendered ineffective and without legal force and effect.

"Moreover, these exemptions shall not be affected by subsequent laws to the contrary unless this section is expressly, specifically and
categorically revoked or repealed by law and a provision is enacted to substitute or replace the exemption referred to herein as an
essential factor to maintain or protect the solvency of the fund, notwithstanding and independently of the guaranty of the national
government to secure such solvency or liability.

"The funds and/or the properties referred to herein as well as the benefits, sums or monies corresponding to the benefits under this Act
shall be exempt from attachment, garnishment, execution, levy or other processes issued by the courts, quasi-judicial agencies or
administrative bodies including Commission on Audit (COA) disallowances and from all financial obligations of the members,
including his pecuniary accountability arising from or caused or occasioned by his exercise or performance of his official functions or
duties, or incurred relative to or in connection with his position or work except when his monetary liability, contractual or otherwise,
is in favor of the GSIS.

"G. ADMINISTRATION

"SECTION 40. Implementing Body. The Government Service Insurance System as created under Commonwealth Act No. 186
shall implement the provisions of this Act.

"SECTION 41. Powers and Functions of the GSIS. The GSIS shall exercise the following powers and functions:
(a) 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, as well as the effective exercise of the powers and functions, and the discharge of duties and responsibilities of the GSIS,
its officers and employees;

(b) to adopt or approve the annual and supplemental budget of receipts and expenditures including salaries and allowances of the GSIS
personnel; to authorize such capital and operating expenditures and disbursements of the GSIS as may be necessary and proper for the
effective management and operation of the GSIS;

(c) to invest the funds of the GSIS, directly or indirectly, in accordance with the provisions of this Act;

(d) to acquire, utilize or dispose of, in any manner recognized by law, real or personal property in the Philippines or elsewhere
necessary to carry out the purposes of this Act;

(e) to conduct continuing actuarial and statistical studies and valuations to determine the financial condition of the GSIS and taking
into consideration such studies and valuations and the limitations herein provided, re-adjust the benefits, contributions, premium rates,
interest rates or the allocation or re-allocation of the funds to the contingencies covered;

(f) to have the power of succession;

(g) to sue and be sued;

(h) to enter into, make, perform and carry out contracts of every kind and description with any person, firm or association or
corporation, domestic or foreign;

(i) to carry on any other lawful business whatsoever in pursuance of, or in connection with the provisions of this Act;

(j) to have one or more offices in and outside of the Philippines, and to conduct its business and exercise its powers throughout and in
any part of the Republic of the Philippines and/or in any or all foreign countries, states and territories: Provided, That the GSIS shall
maintain a branch office in every province where there exists a minimum of fifteen thousand (15,000) membership;

(k) to borrow funds from any source, private or government, foreign or domestic, only as an incident in the securitization of housing
mortgages of the GSIS and on account of its receivables from any government or private entity;

(l) to invest, own or otherwise participate in equity in any establishment, firm or entity;

(m) to approve appointments in the GSIS except appointments to positions which are policy determining, primarily confidential or
highly technical in nature according to the Civil Service rules and regulations: Provided, That all positions in the GSIS shall be
governed by a compensation and position classification system and qualifications standards approved by the GSIS Board of Trustees
based on a comprehensive job analysis and audit of actual duties and responsibilities: Provided, further, That the compensation plan
shall be comparable with the prevailing compensation plans in the private sector and shall be subject to the periodic review by the
Board no more than once every four (4) years without prejudice to yearly merit reviews or increases based on productivity and
profitability;

(n) to design and adopt an Early Retirement Incentive Plan (ERIP) and/or financial assistance for the purpose of retirement for its own
personnel;

(o) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits extended to
members or other persons, whether natural or juridical;

(p) to enter into agreement with the Social Security System 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;

(q) to be able to float proper instrument to liquefy long-term maturity by pooling funds for short-term secondary market;
(r) to submit annually, not later than June 30, a public report to the President of the Philippines and the Congress of the Philippines
regarding 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 programs of the GSIS;

(s) to maintain a provident fund, which consists of contributions made by both the GSIS 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;

(t) to approve and adopt guidelines affecting investments, insurance coverage of government properties, settlement of claims,
disposition of acquired assets, privatization or expansion of subsidiaries, development of housing projects, increased benefit and loan
packages to members, and the enforcement of the provisions of this Act;

(u) any provision of law to the contrary notwithstanding, to authorize the payment of extra remuneration to the officials and
employees directly involved in the collection and/or remittance of contributions, loan repayments, and other monies due to the GSIS at
such rates and under such conditions as it may adopt. Provided, That the best interest of the GSIS shall be observed thereby;

(v) to determine, fix and impose interest upon unpaid premiums due from employers and employees;

(w) to ensure the collection or recovery of all indebtedness, liabilities and/or accountabilities, including unpaid premiums or
contributions in favor of the GSIS arising from any cause or source whatsoever, due from all obligors, whether public or private. The
Board shall demand payment or settlement of the obligations referred to herein within thirty (30) days from the date the obligation
becomes due, and in the event of failure or refusal of the obligor or debtor to comply with the demand, to initiate or institute the
necessary or proper actions or suits, criminal, civil or administrative or otherwise, before the courts, tribunals, commissions, boards, or
bodies of proper jurisdiction within thirty (30) days reckoned from the expiry date of the period fixed in the demand within which to
pay or settle the account;

(x) to design and implement programs that will promote and mobilize savings and provide additional resources for social security
expansion and at the same time afford individual members appropriate returns on their savings/investments. The programs shall be so
designed as to spur socio-economic take-off and maintain continued growth; and

(y) to exercise such powers and perform such other acts as may be necessary, useful, incidental or auxiliary to carry out the provisions
of this Act, or to attain the purposes and objectives of this Act.

"SECTION 42. The Board of Trustees; Its Composition; Tenure and Compensation. The corporate powers and functions of the
GSIS shall be vested in and exercised by the Board of Trustees composed of the President and General Manager of the GSIS and eight
(8) other members to be appointed by the President of the Philippines, one (1) of whom shall be either the President of the Philippine
Public School Teachers Association (PPSTA) or the President of the Philippine Association of School Superintendents (PASS),
another two (2) shall represent the leading organizations or associations of government employees/retirees, another four (4) from the
banking, finance, investment, and insurance sectors, and one (1) recognized member of the legal profession who at the time of
appointment is also a member of the GSIS. The Trustees shall elect from among themselves a Chairman while the President and
General Manager of the GSIS shall automatically be the vice-chairman.

The Trustees, except the President and General Manager who shall cease as trustee upon his separation, shall hold office for six (6)
years without reappointment, or until their successors are duly appointed and qualified. Vacancy, other than through the expiration of
the term, shall be filled for the unexpired term only. The members of the Board shall be entitled to a per diem of Two thousand five
hundred pesos (P2,500) for each board meeting actually attended by them, but not to exceed Ten thousand pesos (P10,000) a month
and reasonable transportation and representation allowances as may be fixed by the Board.

"SECTION 43. Powers and Functions of the Board of Trustees. The Board of Trustees shall have the following powers and
functions:

"(a) to formulate the policies, guidelines and programs to effectively carry out the purposes of this Act;

"(b) to promulgate such rules and regulations as may be necessary or proper for the effective exercise of the powers and functions as
well as the discharge of the duties and responsibilities of the GSIS, its officers and employees;
"(c) upon the recommendation of the President and General Manager, to approve the annual and supplemental budget of receipts and
expenditures of the GSIS, and to authorize such operating and capital expenditures and disbursements of the GSIS as may be
necessary or proper for the effective management, operation and administration of the GSIS;

"(d) upon the recommendation of the President and General Manager, to approve the GSIS' organizational and administrative
structures and staffing pattern, and to establish, fix, review, revise and adjust the appropriate compensation package for the officers
and employees of the GSIS with reasonable allowances, incentives, bonuses, privileges and other benefits as may be necessary or
proper for the effective management, operation and administration of the GSIS, which shall be exempt from Republic Act No. 6758,
otherwise known as the Salary Standardization Law and Republic Act No. 7430, otherwise known as the Attrition Law;

"(e) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits extended to its
members or other persons, whether natural or juridical;

"(f) the provision of any law to the contrary notwithstanding, to compromise or release, in whole or in part, any claim or settle liability
to the GSIS, regardless of the amount involved, under such terms and conditions as it may impose for the best interest of the GSIS;

"(g) to approve and adopt guidelines affecting investments, insurance coverage of government properties, settlement of claims,
disposition of acquired assets, development of housing projects, increased benefit and loan packages to members, and the enforcement
of the provisions of this Act;

"(h) to determine, fix and impose interest upon unpaid or unremitted premiums and/or contributions; and

"(i) to do and perform any and all acts necessary, proper or incidental to the attainment of the purposes and objectives of this Act.

"SECTION 44. Appointment, Qualifications, and Compensation of the President and General Manager and of Other Personnel.
The President and General Manager of the GSIS shall be its Chief Executive Officer and shall be appointed by the President of the
Philippines. He shall be a person with management and investments expertise necessary for the effective performance of his duties and
functions under this Act.

"The GSIS President and General Manager shall be assisted by one or more executive vice-presidents, senior vice-presidents, vice-
presidents and managers in addition to the usual supervisory and rank and file positions who shall be appointed and removed by the
President and General Manager with the approval of the Board, in accordance with the existing Civil Service rules and regulations.

"SECTION 45. Powers and Duties of the President and General Manager. The President and General Manager of the GSIS shall
among others, execute and administer the policies and resolutions approved by the board and direct and supervise the administration
and operations of the GSIS. The President and General Manager, subject to the approval of the Board, shall appoint the personnel of
the GSIS, remove, suspend or otherwise discipline them for cause, in accordance with existing Civil Service rules and regulations, and
prescribe their duties and qualifications to the end that only competent persons may be employed.

"SECTION 46. Auditor. (a) The Chairman of the Commission on Audit shall be the ex officio auditor of the GSIS. For this
purpose, he may appoint a representative who shall be the Auditor of the GSIS, and the necessary personnel to assist said
representative in the performance of his duties.

"(b) The Chairman of the Commission on Audit or his authorized representative, shall submit to the Board soon after the close of each
calendar year, an audited statement showing the financial condition and progress of the GSIS for the calendar year just ended.

"SECTION 47. Legal Counsel. The Government Corporate Counsel shall be the legal adviser and consultant of the GSIS, but the
GSIS may assign to the Office of the Government Corporate Counsel (OGCC) cases for legal action or trial, issues for legal opinions,
preparation and review of contracts/agreements and others, as the GSIS may decide or determine from time to time: Provided,
however, That the present legal services group in the GSIS shall serve as its in-house legal counsel.

"The GSIS may, subject to approval by the proper court, deputize any personnel of the legal service group to act as special sheriff in
the enforcement of writs and processes issued by the court, quasi-judicial agencies or administrative bodies in cases involving the
GSIS.
"SECTION 48. Powers of the Insurance Commission. The Insurance Commissioner or his authorized representatives shall make an
examination of the financial condition and methods of transacting business of the GSIS at least once every three (3) years and the
report of said examination shall be submitted to the Board of Trustees and copies thereof be furnished the Office of the President of
the Philippines and the two Houses of the Congress of the Philippines within five (5) days after the close of examination: Provided,
however, That for each examination the GSIS shall pay the office of the Insurance Commissioner an amount equal to the actual
expenses incurred by the said office in the conduct of the examination, including the salaries of the examiners and of the actuary of
such examination for the actual time spent.

"H. GENERAL PROVISIONS

"SECTION 49. Dispensation of Social Insurance Benefits. (a) The GSIS shall pay the retirement benefits to the employee on his
last day of service in the government: Provided, That all requirements are submitted to the GSIS within a reasonable period prior to
the effective date of the retirement;

"(b) The GSIS shall discontinue the processing and adjudication of retirement claims under R.A. No. 1616 except refund of retirement
premium and R.A. No. 910. Instead, all agencies concerned shall process and pay the gratuities of their employees. The Board shall
adopt the proper rules and procedures for the implementation of this provision.

"SECTION 50. Development and disposition of Acquired Assets. The GSIS shall have the right to develop and dispose of its
acquired assets obtained in the ordinary course of its business. To add value to, improve profitability on, and/or enhance the
marketability of an acquired asset, the GSIS may further develop/renovate the same either with its own capital or through a joint
venture arrangement with private companies or individuals.

"The GSIS may sell its acquired assets in accordance with existing Commission on Audit (COA) rules and regulations for an amount
not lower than the current market value of the property. For this purpose, the GSIS shall conduct an annual appraisal of its property or
acquired assets to determine its current market value. All notices of sale shall be published in newspapers of general circulation.

"No injunction or restraining order issued by any court, commission, tribunal or office shall bar, impede or delay the sale and
disposition by the GSIS of its acquired assets except on questions of ownership and national or public interest.

"SECTION 51. Government Assistance to the GSIS. The GSIS may call upon any employer for such assistance as may be
necessary in the discharge of its duties and functions.

"L. PENAL PROVISIONS

"SECTION 52. Penalty. (a) Any person found to have participated directly or indirectly in the commission of fraud, collusion,
falsification, or misrepresentation in any transaction with the GSIS whether for him or for some other persons, shall suffer the
penalties provided for in Article 172 of the Revised Penal Code.

"(b) Whoever shall obtain or receive any money or check invoking any provision of this Act or any agreement thereunder, without
being entitled thereto with the intent to defraud any member, any employer, the GSIS, or any third party, shall be punished by a fine of
not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) or by imprisonment of not less than
six (6) years and one (1) day to twelve (12) years, or both, at the discretion of the court.

"(c) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations adopted by the GSIS shall be
punished by a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or by
imprisonment of not less than six (6) years and one (1) day to twelve (12) years, or both, at the discretion of the court.

"(d) The treasurer, finance officer, cashier, disbursing officer, budget officer or other official or employee who fails to include in the
annual budget the amount corresponding to the employer and employee contributions, or who fails or refuses or delays by more than
thirty (30) days from the time such amount becomes due and demandable, or to deduct the monthly contributions of the employee
shall, upon conviction by final judgment, suffer the penalties of imprisonment from six (6) months and one (1) day to six (6) years,
and a fine of not less than Three thousand pesos (P3,000.00) but not more than Six thousand pesos (P6,000.00), and in addition shall
suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the
government.
"(e) Any employee or member who receives or keeps fund or property belonging, payable or deliverable to the GSIS and appropriates
the same, or takes or misappropriates or uses the same to any purpose other than that authorized by this Act, or permits another person
to take, misappropriate or use said fund or property by expressly consenting thereto, or through abandonment or negligence, or is
otherwise guilty of the misappropriation of said fund or property, in whole or in part, shall suffer the penalties provided in Article 217
of the Revised Penal Code, and in addition shall suffer absolute perpetual disqualification from holding public office and from
practicing any profession or calling licensed by the government.

"(f) Any employee, who after deducting the monthly contribution or loan amortization from a member's compensation, fails to remit
the same to the GSIS within thirty (30) days from the date they should have been remitted under Section 6(a) shall be presumed to
have misappropriated such contribution or loan amortization and shall suffer the penalties provided in Article 315 of the Revised
Penal Code, and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any
profession or calling licensed by the government.

"(g) The heads of the offices of the national government, its political subdivisions, branches, agencies and instrumentalities, including
government-owned or controlled corporations and government financial institutions, and the personnel of such offices who are
involved in the collection of premium contributions, loan amortization and other accounts due the GSIS who shall fail, refuse or delay
the payment, turnover, remittance or delivery of such accounts to the GSIS within thirty (30) days from the time that the same shall
have been due and demandable shall, upon conviction by final judgment, suffer the penalties of imprisonment of not less than one (1)
year nor more than five (5) years and a fine of not less than Ten thousand pesos (P10,000.00) nor more than Twenty thousand pesos
(P20,000.00), and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any
profession or calling licensed by the government.

"(h) The officers and/or personnel referred to in paragraph (g) of this section shall be liable not only criminally but also civilly to the
GSIS or to the employee or member concerned in the form of damages, including surcharges and interests.

"(i) For the charges or complaints referred to in paragraph (g) of this Section, the liabilities therein set forth shall be construed as
waiver of the State of its immunity from suit, hence, the above-mentioned officials and/or personnel may not invoke the defense of
non-suability of the State.

"(j) Failure of the Members of the GSIS Board, including the chairman and the vice-chairman, to comply with the provisions of
paragraph (w) of Section 41 hereof, shall subject them to imprisonment of not less than six (6) months nor more than one (1) year or a
fine of not less than Five thousand pesos (P5,000.00) nor more than Ten thousand pesos (P10,000.00) without prejudice to any civil or
administrative liability which may also arise therefrom.

"Criminal actions arising from violations of the provisions of this Act may be commenced by the GSIS or by the aggrieved member,
either under this Act or, in appropriate cases, under the Revised Penal Code.

"SECTION 53. Implementing Rules and Regulations. The implementing rules and regulations to carry out the provisions of this
Act shall be adopted and promulgated by the GSIS not later than ninety (90) days after the approval of this Act.

"SECTION 54. Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges, Functions and Activities. Nothing in this Act
shall be construed to repeal, amend or limit any provision of existing laws. Presidential Decrees and Letters of Instructions, not
otherwise specifically inconsistent with the provisions of this Act.

"SECTION 55. Exclusiveness of Benefits. Whenever other laws provide similar benefits for the same contingencies covered by
this Act, the member who qualifies to the benefits shall have the option to choose which benefits will be paid to him. However, if the
benefits provided by the law chosen are less than the benefits provided under this Act, the GSIS shall pay only the difference.

"SECTION 56. Appropriations. The amount necessary to carry out the provisions of this Act shall be included in the respective
budgets of the agencies in the national government obligation program of the year following its enactment into law and thereafter."

SECTION 2. Separability Clause. Should any provision of this Act or any part thereof be declared invalid, the other provisions, so
far as they are separable from the invalid ones, shall remain in force and effect.

SECTION 3. Repealing Clause. All laws and any other law or parts of law specifically inconsistent herewith are hereby repealed or
modified accordingly: Provided, That the rights under existing laws, rules and regulations vested upon or acquired by an employee
who is already in the service as of the effectivity of this Act shall remain in force and effect: Provided, further, That subsequent to the
effectivity of this Act, a new employee or an employee who has previously retired or separated and is reemployed in the service shall
be covered by the provisions of this Act.

SECTION 4. Effectivity. This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two (2)
newspapers of general circulation.

Approved: May 30, 1997

Published in Malaya, The Philippine Star, Philippine Daily Inquirer, and the Manila Bulletin on June 9, 1997. July 28, 1997.

Published in the Official Gazette, Vol. 93 No. 29 page 4360 on July 21, 1997.

Republic Act No. 10361

January 18, 2013

S. No. 78
H. No. 6144

Republic of the Philippines

Congress of the Philippines
Metro Manila
Fifteenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-third day of July, two thousand twelve.

[REPUBLIC ACT NO. 10361]

AN ACT INSTITUTING POLICIES FOR THE PROTECTION

AND WELFARE OF DOMESTIC WORKERS

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

ARTICLE I

GENERAL PROVISIONS

SECTION 1. Short Title. This Act shall be known as the Domestic Workers Act or Batas Kasambahay.

SEC. 2. Declaration of Policies. It is hereby declared that:

(a) The State strongly affirms labor as a primary social force and is committed to respect, promote, protect and realize the fundamental
principles and rights at work including, but not limited to, abolition of child labor, elimination of all forms of forced labor,
discrimination in employment and occupation, and trafficking in persons, especially women and children;

(b) The State adheres to internationally accepted working conditions for workers in general, and establishes labor standards for
domestic workers in particular, towards decent employment and income, enhanced coverage of social protection, respect for human
rights and strengthened social dialogue;
(c) The State recognizes the need to protect the rights of domestic workers against abuse, harassment, violence, economic exploitation
and performance of work that is hazardous to their physical and mental health; and

(d) The State, in protecting domestic workers and recognizing their special needs to ensure safe and healthful working conditions,
promotes gender-sensitive measures in the formulation and implementation of policies and programs affecting the local domestic
work.

SEC. 3. Coverage. This Act applies to all domestic workers employed and working within the country.

SEC. 4. Definition of Terms. As used in this Act, the term:

(a) Debt bondage refers to the rendering of service by the domestic worker as security or payment for a debt where the length and
nature of service is not clearly defined or when the value of the service is not reasonably applied in the payment of the debt.

(b) Deployment expenses refers to expenses that are directly used for the transfer of the domestic worker from place of origin to the
place of work covering the cost of transportation. Advances or loans by the domestic worker are not included in the definition of
deployment expenses.

(c) Domestic work refers to work performed in or for a household or households.

(d) Domestic worker or Kasambahay refers to any person engaged in domestic work within an employment relationship such as, but
not limited to, the following: general househelp, nursemaid or yaya, cook, gardener, or laundry person, but shall exclude any person
who performs domestic work only occasionally or sporadically and not on an occupational basis.

The term shall not include children who are under foster family arrangement, and are provided access to education and given an
allowance incidental to education, i.e. baon, transportation, school projects and school activities.

(e) Employer refers to any person who engages and controls the services of a domestic worker and is party to the employment
contract.

(f) Household refers to the immediate members of the family or the occupants of the house that are directly provided services by the
domestic worker.

(g) Private Employment Agency (PEA) refers to any individual, legitimate partnership, corporation or entity licensed to engage in the
recruitment and placement of domestic workers for local employment.

(h) Working children, as used under this Act, refers to domestic workers who are fifteen (15) years old and above but below eighteen
(18) years old.

ARTICLE II

RIGHTS AND PRIVILEGES

SEC. 5. Standard of Treatment. The employer or any member of the household shall not subject a domestic worker or kasambahay
to any kind of abuse nor inflict any form of physical violence or harassment or any act tending to degrade the dignity of a domestic
worker.

SEC. 6. Board, Lodging and Medical Attendance. The employer shall provide for the basic necessities of the domestic worker to
include at least three (3) adequate meals a day and humane sleeping arrangements that ensure safety.

The employer shall provide appropriate rest and assistance to the domestic worker in case of illnesses and injuries sustained during
service without loss of benefits.

At no instance shall the employer withdraw or hold in abeyance the provision of these basic necessities as punishment or disciplinary
action to the domestic worker.
SEC. 7. Guarantee of Privacy. Respect for the privacy of the domestic worker shall be guaranteed at all times and shall extend to all
forms of communication and personal effects. This guarantee equally recognizes that the domestic worker is obliged to render
satisfactory service at all times.

SEC. 8. Access to Outside Communication. The employer shall grant the domestic worker access to outside communication during
free time: Provided, That in case of emergency, access to communication shall be granted even during work time. Should the domestic
worker make use of the employers telephone or other communication facilities, the costs shall be borne by the domestic worker,
unless such charges are waived by the employer.

SEC. 9. Right to Education and Training. The employer shall afford the domestic worker the opportunity to finish basic education
and may allow access to alternative learning systems and, as far as practicable, higher education or technical and vocational training.
The employer shall adjust the work schedule of the domestic worker to allow such access to education or training without hampering
the services required by the employer.

SEC. 10. Prohibition Against Privileged Information. All communication and information pertaining to the employer or members of
the household shall be treated as privileged and confidential, and shall not be publicly disclosed by the domestic worker during and
after employment. Such privileged information shall be inadmissible in evidence except when the suit involves the employer or any
member of the household in a crime against persons, property, personal liberty and security, and chastity.

ARTICLE III

PRE-EMPLOYMENT

SEC. 11. Employment Contract. An employment contract shall be executed by and between the domestic worker and the employer
before the commencement of the service in a language or dialect understood by both the domestic worker and the employer. The
domestic worker shall be provided a copy of the duly signed employment contract which must include the following:

(a) Duties and responsibilities of the domestic worker;

(b) Period of employment;

(c) Compensation;

(d) Authorized deductions;

(e) Hours of work and proportionate additional payment;

(f) Rest days and allowable leaves;

(g) Board, lodging and medical attention;

(h) Agreements on deployment expenses, if any;

(i) Loan agreement;

(j) Termination of employment; and

(k) Any other lawful condition agreed upon by both parties.

The Department of Labor and Employment (DOLE) shall develop a model employment contract for domestic workers which shall, at
all times, be made available free of charge to domestic workers, employers, representative organizations and the general public. The
DOLE shall widely disseminate information to domestic workers and employers on the use of such model employment contract.

In cases where the employment of the domestic worker is facilitated through a private employment agency, the PEA shall keep a copy
of all employment contracts of domestic workers and shall be made available for verification and inspection by the DOLE.
SEC. 12. Pre-Employment Requirement. Prior to the execution of the employment contract, the employer may require the following
from the domestic worker:

(a) Medical certificate or a health certificate issued by a local government health officer;

(b) Barangay and police clearance;

(c) National Bureau of Investigation (NBI) clearance; and

(d) Duly authenticated birth certificate or if not available, any other document showing the age of the domestic worker such as voters
identification card, baptismal record or passport.

However, Section 12(a), (b), (c) and (d) shall be standard requirements when the employment of the domestic worker is facilitated
through the PEA.

The cost of the foregoing shall be borne by the prospective employer or agency, as the case may be.

SEC. 13. Recruitment and Finders Fees. Regardless of whether the domestic worker was hired through a private employment
agency or a third party, no share in the recruitment or finders fees shall be charged against the domestic worker by the said private
employment agency or third party.

SEC. 14. Deposits for Loss or Damage. It shall be unlawful for the employer or any other person to require a domestic worker to
make deposits from which deductions shall be made for the reimbursement of loss or damage to tools, materials, furniture and
equipment in the household.

SEC. 15. Prohibition on Debt Bondage. It shall be unlawful for the employer or any person acting on behalf of the employer to place
the domestic worker under debt bondage.

SEC. 16. Employment Age of Domestic Workers. It shall be unlawful to employ any person below fifteen (15) years of age as a
domestic worker. Employment of working children, as defined under this Act, shall be subject to the provisionsof Section 10(A),
paragraph 2 of Section 12-A, paragraph 4 of Section 12-D, and Section 13 of Republic Act No. 7610, as amended, otherwise known as
the Special Protection of Children Against Child Abuse, Exploitation and Discrimination Act.

Working children shall be entitled to minimum wage, and all benefits provided under this Act.

Any employer who has been sentenced by a court of law of any offense against a working child under this Act shall be meted out with
a penalty one degree higher and shall be prohibited from hiring a working child.

SEC. 17. Employers Reportorial Duties. The employers shall register all domestic workers under their employment in the Registry
of Domestic Workers in the barangay where the employers residence is located. The Department of the Interior and Local
Government (DILG) shall, in coordination with the DOLE, formulate a registration system for this purpose.

SEC. 18. Skills Training, Assessment and Certification. To ensure productivity and assure quality services, the DOLE, through the
Technical Education and Skills Development Authority (TESDA), shall facilitate access of domestic workers to efficient training,
assessment and certification based on a duly promulgated training regulation.

ARTICLE IV

EMPLOYMENT TERMS AND CONDITIONS

SEC. 19. Health and Safety. The employer shall safeguard the health and safety of the domestic worker in accordance with laws,
rules and regulations, with due consideration of the peculiar nature of domestic work.

SEC. 20. Daily Rest Period. The domestic worker shall be entitled to an aggregate daily rest period of eight (8) hours per day.
SEC. 21. Weekly Rest Period. The domestic worker shall be entitled to at least twenty-four (24) consecutive hours of rest in a week.
The employer and the domestic worker shall agree in writing on the schedule of the weekly rest day of the domestic worker: Provided,
That the employer shall respect the preference of the domestic worker as to the weekly rest day when such preference is based on
religious grounds. Nothing in this provision shall deprive the domestic worker and the employer from agreeing to the following:

(a) Offsetting a day of absence with a particular rest day;

(b) Waiving a particular rest day in return for an equivalent daily rate of pay;

(c) Accumulating rest days not exceeding five (5) days; or

(d) Other similar arrangements.

SEC. 22. Assignment to Nonhousehold Work. No domestic worker shall be assigned to work in a commercial, industrial or
agricultural enterprise at a wage rate lower than that provided for agricultural or nonagricultural workers. In such cases, the domestic
worker shall be paid the applicable minimum wage.

SEC. 23. Extent of Duty. The domestic worker and the employer may mutually agree for the former to temporarily perform a task
that is outside the latters household for the benefit of another household. However, any liability that will be incurred by the domestic
worker on account of such arrangement shall be borne by the original employer. In addition, such work performed outside the
household shall entitle the domestic worker to an additional payment of not less than the existing minimum wage rate of a domestic
worker. It shall be unlawful for the original employer to charge any amount from the said household where the service of the domestic
worker was temporarily performed.

SEC 24. Minimum Wage. The minimum wage of domestic workers shall not be less than the following:

(a) Two thousand five hundred pesos (P2,500.00) a month for those employed in the National Capital Region (NCR);

(b) Two thousand pesos (P2,000.00) a month for those employed in chartered cities and first class municipalities; and

(c) One thousand five hundred pesos (P1,500.00) a month for those employed in other municipalities.

After one (1) year from the effectivity of this Act, and periodically thereafter, the Regional Tripartite and Productivity Wage Boards
(RTPWBs) shall review, and if proper, determine and adjust the minimum wage rates of domestic workers.

SEC 25. Payment of Wages. Payment of wages shall be made on time directly to the domestic worker to whom they are due in cash
at least once a month. The employer, unless allowed by the domestic worker through a written consent, shall make no deductions from
the wages other than that which is mandated by law. No employer shall pay the wages of a domestic worker by means of promissory
notes, vouchers, coupons, tokens, tickets, chits, or any object other than the cash wage as provided for under this Act.

The domestic worker is entitled to a thirteenth month pay as provided for by law.

SEC. 26. Pay Slip. The employer shall at all times provide the domestic worker with a copy of the pay slip containing the amount
paid in cash every pay day, and indicating all deductions made, if any. The copies of the pay slip shall be kept by the employer for a
period of three (3) years.

SEC. 27. Prohibition on Interference in the Disposal of Wages. It shall be unlawful for the employer to interfere with the freedom of
any domestic worker to dispose of the latters wages. The employer shall not force, compel or oblige the domestic worker to purchase
merchandise, commodities or other properties from the employer or from any other person, or otherwise make use of any store or
services of such employer or any other person.

SEC 28. Prohibition Against Withholding of Wages. It shall be unlawful for an employer, directly or indirectly, to withhold the
wages of the domestic worker. If the domestic worker leaves without any justifiable reason, any unpaid salary for a period not
exceeding fifteen (15) days shall be forfeited. Likewise, the employer shall not induce the domestic worker to give up any part of the
wages by force, stealth, intimidation, threat or by any other means whatsoever.
SEC. 29. Leave Benefits. A domestic worker who has rendered at least one (1) year of service shall be entitled to an annual service
incentive leave of five (5) days with pay: Provided, That any unused portion of said annual leave shall not be cumulative or carried
over to the succeeding years. Unused leaves shall not be convertible to cash.

SEC. 30. Social and Other Benefits. A domestic worker who has rendered at least one (1) month of service shall be covered by the
Social Security System (SSS), the Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund or
Pag-IBIG, and shall be entitled to all the benefits in accordance with the pertinent provisions provided by law.

Premium payments or contributions shall be shouldered by the employer. However, if the domestic worker is receiving a wage of Five
thousand pesos (P5,000.00) and above per month, the domestic worker shall pay the proportionate share in the premium payments or
contributions, as provided by law.

The domestic worker shall be entitled to all other benefits under existing laws.

SEC. 31. Rescue and Rehabilitation of Abused Domestic Workers. Any abused or exploited domestic worker shall be immediately
rescued by a municipal or city social welfare officer or a social welfare officer from the Department of Social Welfare and
Development (DSWD) in coordination with the concerned barangay officials. The DSWD and the DILG shall develop a standard
operating procedure for the rescue and rehabilitation of abused domestic workers, and in coordination with the DOLE, for possible
subsequent job placement.

ARTICLE V

POST EMPLOYMENT

SEC. 32. Termination of Service. Neither the domestic worker nor the employer may terminate the contract before the expiration of
the term except for grounds provided for in Sections 33 and 34 of this Act. If the domestic worker is unjustly dismissed, the domestic
worker shall be paid the compensation already earned plus the equivalent of fifteen (15) days work by way of indemnity. If the
domestic worker leaves without justifiable reason, any unpaid salary due not exceeding the equivalent fifteen (15) days work shall be
forfeited. In addition, the employer may recover from the domestic worker costs incurred related to the deployment expenses, if any:
Provided, That the service has been terminated within six (6) months from the domestic workers employment.

If the duration of the domestic service is not determined either in stipulation or by the nature of the service, the employer or the
domestic worker may give notice to end the working relationship five (5) days before the intended termination of the service.

The domestic worker and the employer may mutually agree upon written notice to pre-terminate the contract of employment to end
the employment relationship.

SEC. 33. Termination Initiated by the Domestic Worker. The domestic worker may terminate the employment relationship at any
time before the expiration of the contract for any of the following causes:

(a) Verbal or emotional abuse of the domestic worker by the employer or any member of the household;

(b) Inhuman treatment including physical abuse of the domestic worker by the employer or any member of the household;

(c) Commission of a crime or offense against the domestic worker by the employer or any member of the household;

(d) Violation by the employer of the terms and conditions of the employment contract and other standards set forth under this law;

(e) Any disease prejudicial to the health of the domestic worker, the employer, or member/s of the household; and

(f) Other causes analogous to the foregoing.

SEC. 34. Termination Initiated by the Employer. An employer may terminate the services of the domestic worker at any time before
the expiration of the contract, for any of the following causes:
(a) Misconduct or willful disobedience by the domestic worker of the lawful order of the employer in connection with the formers
work;

(b) Gross or habitual neglect or inefficiency by the domestic worker in the performance of duties;

(c) Fraud or willful breach of the trust reposed by the employer on the domestic worker;

(d) Commission of a crime or offense by the domestic worker against the person of the employer or any immediate member of the
employers family;

(e) Violation by the domestic worker of the terms and conditions of the employment contract and other standards set forth under this
law;

(f) Any disease prejudicial to the health of the domestic worker, the employer, or member/s of the household; and

(g) Other causes analogous to the foregoing.

SEC. 35. Employment Certification. Upon the severance of the employment relationship, the employer shall issue the domestic
worker within five (5) days from request a certificate of employment indicating the nature, duration of the service and work
performance.

ARTICLE VI

PRIVATE EMPLOYMENT AGENCIES

SEC. 36. Regulation of Private Employment Agencies (PEAs). The DOLE shall, through a system of licensing and regulation, ensure
the protection of domestic workers hired through the PEAs.

The PEA shall be jointly and severally liable with the employer for all the wages, wage-related benefits, and other benefits due a
domestic worker.

The provision of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines, on qualifications
of the PEAs with regard to nationality, networth, owners and officers, office space and other requirements, as well as
nontransferability of license and commission of prohibited practices, shall apply.

In addition, PEAs shall have the following responsibilities:

(a) Ensure that domestic workers are not charged or levied any recruitment or placement fees;

(b) Ensure that the employment agreement between the domestic worker and the employer stipulates the terms and conditions of
employment and all the benefits prescribed by this Act;

(c) Provide a pre-employment orientation briefing to the domestic worker and the employer about their rights and responsibilities in
accordance with this Act;

(d) Keep copies of employment contracts and agreements pertaining to recruited domestic workers which shall be made available
during inspections or whenever required by the DOLE or local government officials;

(e) Assist domestic workers with respect to complaints or grievances against their employers; and

(f) Cooperate with government agencies in rescue operations involving abused or exploited domestic workers.

ARTICLE VII
 SETTLEMENT OF DISPUTES

SEC. 37. Mechanism for Settlement of Disputes. All labor-related disputes shall be elevated to the DOLE Regional Office having
jurisdiction over the workplace without prejudice to the filing of a civil or criminal action in appropriate cases. The DOLE Regional
Office shall exhaust all conciliation and mediation efforts before a decision shall be rendered.

Ordinary crimes or offenses committed under the Revised Penal Code and other special penal laws by either party shall be filed with
the regular courts.

ARTICLE VIII

SPECIAL PROVISIONS

SEC. 38. Information Program. The DOLE shall, in coordination with the DILG, the SSS, the PhilHealth and Pag-IBIG develop and
implement a continuous information dissemination program on the provisions of this Act, both at the national and local level,
immediately after the enactment of this law.

SEC. 39. Araw Ng Mga Kasambahay. The date upon which the President shall approve this Domestic Workers Act shall be
designated as the Araw ng mga Kasambahay.

ARTICLE IX

PENAL AND MISCELLANEOUS PROVISIONS

SEC. 40. Penalty. Any violation of the provisions of this Act declared unlawful shall be punishable with a fine of not less than Ten
thousand pesos (P10,000.00) but not more than Forty thousand pesos (P40,000.00) without prejudice to the filing of appropriate civil
or criminal action by the aggrieved party.

SEC. 41. Transitory Provision; Non-Diminution of Benefits. All existing arrangements between a domestic worker and the employer
shall be adjusted to conform to the minimum standards set by this Act within a period of sixty (60) days after the effectivity of this
Act: Provided, That adjustments pertaining to wages shall take effect immediately after the determination and issuance of the
appropriate wage order by the RTWPBs: Provided, further, That nothing in this Act shall be construed to cause the diminution or
substitution of any benefits and privileges currently enjoyed by the domestic worker hired directly or through an agency.

SEC. 42. Implementing Rules and Regulations. Within ninety (90) days from the effectivity of this Act, the Secretary of Labor and
Employment, the Secretary of Social Welfare and Development, the Secretary of the Interior and Local Government, and the Director
General of the Philippine National Police, in coordination with other concerned government agencies and accredited nongovernment
organizations (NGOs) assisting domestic workers, shall promulgate the necessary rules and regulations for the effective
implementation of this Act.

ARTICLE X

FINAL PROVISIONS

SEC. 43. Separability Clause. If any provision or part of this Act is declared invalid or unconstitutional, the remaining parts or
provisions not affected shall remain in full force and effect.

SEC. 44. Repealing Clause. All articles or provisions of Chapter III (Employment of Househelpers) of Presidential Decree No. 442,
as amended and renumbered by Republic Act No. 10151 are hereby expressly repealed. All laws, decrees, executive orders, issuances,
rules and regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 45. Effectivity Clause. This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at
least two (2) national newspapers of general circulation.

Approved,
 (Sgd.) FELICIANO BELMONTE JR. (Sgd.) JUAN PONCE ENRILE
Speaker of the House President of the Senate
of Representatives

This Act which is a consolidation of Senate Bill No. 78 and House Bill No. 6144 was finally passed by the Senate and the House of
Representatives on November 27, 2012 and November 26, 2012, respectively.

(Sgd.) MARILYN B. BARUA-YAP (Sgd.) EMMA LIRIO-REYES

Secretary General Secretary of the Senate
House of Representatives

Republic Act No. 8972

November 7, 2000

S. No. 1404

H. No. 10615

Republic of the Philippine

Congress of the Philippines

Metro Manila

Eleventh Congress

Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-fourth day of July, two thousand.

REPUBLIC ACT NO. 8972

AN ACT PROVIDING FOR BENEFITS AND PRIVILEGES TO SOLO PARENTS AND THEIR CHILDREN,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines Congress assembled:

Section 1. Title. This Act shall be known as the Solo Parents Welfare Act of 2000.

Section 2. Declaration of Policy. It is the policy of the State to promote the family as the foundation of the nation, strengthen its
solidarity and ensure its total development. Towards this end, it shall develop a comprehensive program of services for solo parents
and their children to be carried out by the Department of Social Welfare and Development (DSWD), the Department of Health
(DOH), the Department of Education, Culture and Sports (DECS), the Department of the Interior and Local Government (DILG), the
Commission on Higher Education (CHED), the Technical Education and Skills Development Authority (TESDA), the National
Housing Authority (NHA), the Department of Labor and Employment (DOLE) and other related government and nongovernment
agencies.

Section 3. Definition of Terms. Whenever used in this Act, the following terms shall mean as follows:

(a) Solo parent any individual who falls under any of the following categories:

(1) A woman who gives birth as a result of rape and other crimes against chastity even without a final conviction of the offender:
Provided, That the mother keeps and raises the child;
(2) Parent left solo or alone with the responsibility of parenthood due to death of spouse;

(3) Parent left solo or alone with the responsibility of parenthood while the spouse is detained or is serving sentence for a criminal
conviction for at least one (1) year;

(4) Parent left solo or alone with the responsibility of parenthood due to physical and/or mental incapacity of spouse as certified by a
public medical practitioner;

(5) Parent left solo or alone with the responsibility of parenthood due to legal separation or de facto separation from spouse for at least
one (1) year, as long as he/she is entrusted with the custody of the children;

(6) Parent left solo or alone with the responsibility of parenthood due to declaration of nullity or annulment of marriage as decreed by
a court or by a church as long as he/she is entrusted with the custody of the children;

(7) Parent left solo or alone with the responsibility of parenthood due to abandonment of spouse for at least one (1) year;

(8) Unmarried mother/father who has preferred to keep and rear her/his child/children instead of having others care for them or give
them up to a welfare institution;

(9) Any other person who solely provides parental care and support to a child or children;

(10) Any family member who assumes the responsibility of head of family as a result of the death, abandonment, disappearance or
prolonged absence of the parents or solo parent.

A change in the status or circumstance of the parent claiming benefits under this Act, such that he/she is no longer left alone with the
responsibility of parenthood, shall terminate his/her eligibility for these benefits.

(b) Children refer to those living with and dependent upon the solo parent for support who are unmarried, unemployed and not
more than eighteen (18) years of age, or even over eighteen (18) years but are incapable of self-support because of mental and/or
physical defect/disability.

(c) Parental responsibility with respect to their minor children shall refer to the rights and duties of the parents as defined in
Article 220 of Executive Order No. 209, as amended, otherwise known as the Family Code of the Philippines.

(d) Parental leave shall mean leave benefits granted to a solo parent to enable him/her to perform parental duties and
responsibilities where physical presence is required.

(e) Flexible work schedule is the right granted to a solo parent employee to vary his/her arrival and departure time without
affecting the core work hours as defined by the employer.

Section 4. Criteria for Support. Any solo parent whose income in the place of domicile falls below the poverty threshold as set by
the National Economic and Development Authority (NEDA) and subject to the assessment of the DSWD worker in the area shall be
eligible for assistance: Provided, however, That any solo parent whose income is above the poverty threshold shall enjoy the benefits
mentioned in Sections 6, 7 and 8 of this Act.

Section 5. Comprehensive Package of Social Development and Welfare Services. A comprehensive package of social development
and welfare services for solo parents and their families will be developed by the DSWD, DOH, DECS, CHED, TESDA, DOLE, NHA
and DILG, in coordination with local government units and a nongovernmental organization with proven track record in providing
services for solo parents.

The DSWD shall coordinate with concerned agencies the implementation of the comprehensive package of social development and
welfare services for solo parents and their families. The package will initially include:

(a) Livelihood development services which include trainings on livelihood skills, basic business management, value orientation and
the provision of seed capital or job placement.
(b) Counseling services which include individual, peer group or family counseling. This will focus on the resolution of personal
relationship and role conflicts.

(c) Parent effectiveness services which include the provision and expansion of knowledge and skills of the solo parent on early
childhood development, behavior management, health care, rights and duties of parents and children.

(d) Critical incidence stress debriefing which includes preventive stress management strategy designed to assist solo parents in coping
with crisis situations and cases of abuse.

(e) Special projects for individuals in need of protection which include temporary shelter, counseling, legal assistance, medical care,
self-concept or ego-building, crisis management and spiritual enrichment.

Section 6. Flexible Work Schedule. The employer shall provide for a flexible working schedule for solo parents: Provided, That the
same shall not affect individual and company productivity: Provided, further, That any employer may request exemption from the
above requirements from the DOLE on certain meritorious grounds.

Section 7. Work Discrimination. No employer shall discriminate against any solo parent employee with respect to terms and
conditions of employment on account of his/her status.

Section 8. Parental Leave. In addition to leave privileges under existing laws, parental leave of not more than seven (7) working
days every year shall be granted to any solo parent employee who has rendered service of at least one (1) year.

Section 9. Educational Benefits. The DECS, CHED and TESDA shall provide the following benefits and privileges:

(1) Scholarship programs for qualified solo parents and their children in institutions of basic, tertiary and technical/skills education;
and

(2) Nonformal education programs appropriate for solo parents and their children.

The DECS, CHED and TESDA shall promulgate rules and regulations for the proper implementation of this program.

Section 10. Housing Benefits. Solo parents shall be given allocation in housing projects and shall be provided with liberal terms of
payment on said government low-cost housing projects in accordance with housing law provisions prioritizing applicants below the
poverty line as declared by the NEDA.

Section 11. Medical Assistance. The DOH shall develop a comprehensive health care program for solo parents and their children.
The program shall be implemented by the DOH through their retained hospitals and medical centers and the local government units
(LGUs) through their provincial/district/city/municipal hospitals and rural health units (RHUs).

Section 12. Additional Powers and Functions of the DSWD. The DSWD shall perform the following additional powers and
functions relative to the welfare of solo parents and their families:

(a) Conduct research necessary to: (1) develop a new body of knowledge on solo parents; (2) define executive and legislative
measures needed to promote and protect the interest of solo parents and their children; and (3) assess the effectiveness of programs
designed for disadvantaged solo parents and their children;

(b) Coordinate the activities of various governmental and nongovernmental organizations engaged in promoting and protecting the
interests of solo parents and their children; and

(c) Monitor the implementation of the provisions of this Act and suggest mechanisms by which such provisions are effectively
implemented.

Section 13. Implementing Rules and Regulations. An interagency committee headed by the DSWD, in coordination with the DOH,
DECS, CHED, TESDA, DOLE, NHA, and DILG is hereby established which shall formulate, within ninety (90) days upon the
effectivity of this Act, the implementing rules and regulations in consultation with the local government units, nongovernment
organizations and peoples organizations.

Section 14. Appropriations. The amount necessary to carry out the provisions of this Act shall be included in the budget of
concerned government agencies in the General Appropriations Act of the year following its enactment into law and thereafter.

Section 15. Repealing Clause. All laws, decrees, executive orders, administrative orders or parts thereof inconsistent with the
provisions of this Act are hereby repealed, amended or modified accordingly.

Section 16. Separability Clause. If any provision of this Act is held invalid or unconstitutional, other provisions not affected thereby
shall continue to be in full force and effect.

Section 17. Effectivity Clause. This Act shall take effect fifteen (15) days following its complete publication in the Official Gazette
or in at least two (2) newspaper of general circulation.

Approved,

(Sgd.) MANUEL B. VILLAR, JR. (Sgd.) FRANKLIN M. DRILON

Speaker of the House President of the Senate

of Representatives

This Act, which is a consolidation of Senate Bill No. 1404 and House Bill No. 10615 was finally passed by the Senate and the house
of Representatives on August 30, 2000 and September 26, 2000, respectively.

(Sgd.) ROBERTO P. NAZARENO (Sgd.) EMMA LIRIO REYES

Secretary General Acting Secretary of the Senate

House of Representatives