SSS LAW (R.A. 8282)
Service performed in the employ of the PHILIPPINE
Declaration of Policy
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. 2)
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.
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.
Self-Employed- any person whose income is not derived from
employment, shall be the employer and employee at the same
time.
Dependents-
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 21 years of age or if 21
years of age, he is congenitally incapacitated or while
still a minor, he has been permanently incapacitated and
incapable of self-support, physically and mentally; and
3. The parent who is receiving regular support from the
member.
Compensation- refers to 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.
(All remuneration + COLA + cash value of other remunerations
not paid in cash)
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. Services performed on or in connection with an ALIEN
VESSEL by an employee if he is employed when such
vessel is outside the Philippines;
3. Services performed by TEMPORARY 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;
4.
GOVERNMENT, instrumentality or agency thereof; and
5. Service performed in the employ of a FOREIGN
GOVERNMENT, international organization or their
wholly-owned instrumentality.
Primary Beneficiaries
1. The dependent Spouse until he or she remarries; and
2. The dependent legitimate, legitimated, legally adopted
and illegitimate Children.
Provided: dependent ILLEGITIMATE children shall be entitled to
50% of the share of the legitimate, legitimated or legally adopted
children.
Provided: in the ABSENCE of the dependent legitimate,
legitimated, and legally adopted children of the member, the
independent illegitimate children shall be entitled to 100% of the
benefits.
Note: A wife who is already separated de facto from her husband
cannot be said to be dependent for support upon the husband,
absent any showing to the contrary. Conversely, if it is proved that
the husband and wife were still living together at the time of his
death, it would be safe to presume that she was dependent on the
husband for support unless it is shown that she is capable of
providing for herself. (SSS v. Aguas)
Secondary Beneficiaries
1. In the absence of the primary beneficiaries, the
Dependent Parents; or
2. In the absence of all the foregoing, any other person
designated by the covered employee.
Contingency - The retirement, death, disability, injury or sickness
and maternity of the member.
Coverage
Compulsory
1. All employees not over 60 years of age and their
employers;
2. A domestic worker who has rendered at least 1 month of
service shall be covered by the SSS
3. Self-employed persons as may be determined by the
Commission, including but not limited to the following:
a. Self-employed Professionals
b. Partners and single proprietors
c. Actors and actresses, directors, scriptwriters
and news correspondents who do not fall within
the definition of the term employee in this
section
d. Professional athletes, coaches, trainers, and
jockeys
e. Individual farmers and fishermen.
Limitations
1. Any benefit earned by the employees under private
benefit plans existing at the time of the approval of the
Act shall not be discontinued, reduced or impaired.
2. 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 employers
contribution to his private plan is more than that required
of him in this Act, he shall pay to the SSS only the
contribution to such private plan less his contribution to
the SSS so that the employers 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.
 3. Any changes, adjustments, modifications, eliminations,
or improvements in the benefits of the remaining private
plan after the integration shall be subject to agreements
between the employers and the employees concerned
4. The private benefit plan which the employer shall
continue for his employees shall remain under the
Employers management and control unless there is an
existing agreement to the contrary; and
5. 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.
Voluntary
1. Spouses who devote full time to managing the
household and family affairs
2. Persons separated from employment to maintain his
right to full benefits
3. Self-employed who realizes no income for a certain
month
4. Filipinos recruited by foreign-based employers for
employment abroad.
By Agreement
Any foreign government, international organization, or their
wholly-owned instrumentality employing workers in 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.
Effective Date of Coverage
1. Employer- on the first day of his operation
2. Employee- on the first day of his employment
3. Self employed- upon his registration with the SSS
4. Domestic Worker- upon rendering at least 1 month of
service
Effects of Separation from Employment
1. Employers contribution on his account ceases at the
end of the month of separation
2. Employees obligation to contribute ceases at the end of
the month of separation
3. But said employee shall be credited with all contributions
paid on his behalf and entitled to benefits according to
the provisions of this act
4. He may however, continue to pay the total contributions
to maintain his right to full benefit.
Effect of Interruption of Business or Professional Income of
Self-Employed Individual
1. He shall not be required to pay contributions for that
month.
2. He may, however, be allowed to continue paying
contributions under the same rules applicable to a
separated covered employee member.
3. No retroactive payment of contributions shall be allowed
other than as prescribed under sec. 22-A
Benefits
1. Monthly Pension
Monthly pension shall be the highest of the following:
a. P300 + 20% of average monthly salary credit +
2% of average monthly salary credit for each
credited year of service in excess of 10 years;
or
b. 40% of monthly salary credit; or
c. P1,000, provided that the monthly pension shall
in no case be paid for an aggregate amount of
less than 60 months
Minimum Pension
P1,200- for members with at least 10 years credited service
P2,400- for members with at least 20 years credited service
Dependents Pension
a. Equivalent to 10% of monthly pensioner P250,
whichever is higher;
b. Payable on account of death, permanent total
disability or retirement; and
c. Payable to each dependent child conceived on
or before the date of the contingency but not
exceeding 5, beginning with the youngest and
without substitution, with preference on
legitimate children
Note: 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
2. Death Benefits and Permanent Disability Benefits
Death Benefits Permanent Total
Disability Benefits
Cause Death Permanent total
disability
Requisite Member has paid at least 36 monthly
contributions prior to the semester of death
or disability
Benefits Monthly pension
Payable to Whom Primary Member
beneficiaries.
If none, secondary
beneficiaries are
entitled to a lump
sum benefit equal
to 36 times the
monthly pension
Failure to make 36 Benefits shall be a lump sum equal to the
monthly payments monthly pension times the number of
monthly contributions paid to SSS or 12
times the monthly pensions, whichever is
higher.
Injuries Deemed as Permanent Total Disabilites
a. Complete loss of sight of both Eyes
b. Loss of 2 limbs at or above the ankle or wrists
c. Permanent complete paralysis of 2 limbs
d. Brain injury resulting to incurable imbecility or insanity
e. Such cases as determined and approved by the SSS
3. Funeral Benefits
A funeral grant of P20,000 is given to whoever pays the burial
expenses of the deceased member of the family.
4. Sickness Benefits- daily allowance paid to a covered
employee who becomes sick and is confined in a
hospital for more than 3 days or elsewhere with the
Commission Approval. Such daily allowance should be
 equivalent to 90% of the daily salary credit of such
member, provided that:
a. In no case shall be paid longer than 120 days in
1 calendar year
b. Unused portion may not be carried forward and
added to total number of compensable days
allowable in the subsequent year
c. Shall not be paid for more than 240 days on
account of the same confinement
5. Maternity Leave Benefits
Covered female member is entitled to a daily maternity benefit
equivalent to 100% of her average daily salary credit for 60 days
or 78 days in case of ceasarian.
Non-Transferability of Benefits
General Rule: The SSS shall promptly pay the benefits provided
to Persons Entitled thereto in accordance with this Act.
Restrictions
a) The SSS shall pay the retirement benefits on the
day of contingency to qualified members who have
submitted the necessary documents at least 6
months before.
b) 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.
c) Where the best interest of the SSS will be served,
the commission may direct payments without regard
to nationality or country of residence.
d) If the recipient is a minor or incapable of
administering his own affairs, the commission shall
appoint a representative. 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.
e) Such benefits are not transferrable 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.
f) 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.
Note: All contributions collected and all benefit payment received
and given by SSS are exempt from taxes.
Benefits under the SSS Law do not form part of the estate of
the covered employee.
GSIS LAW (R.A. 8291)
Coverage
Membership in the GSIS shall be compulsory for all government
employees receiving compensation who have not reached the
compulsory retirement age irrespective of employment status.
Exceptions to the Compulsory Coverage
1. Members of the PNP, subject to the condition that they
must settle first their financial obligation with the GSIS;
2. Members of the AFP, subject to the condition that they
must settle first their financial obligation with the GSIS
3. Contractuals who have no ER-EE relationship with the
agencies they serve
4. Purely Casual employees.
Note: All members of the GSIS shall have life insurance,
retirement, and all other social security protections such as
disability, survivorship, separation, and unemployment benefits.
Exception: Members of the Judiciary and Constitutional
commissions shall have life insurance only.
Computation of Service
From the date of original appointment/election, including periods
of service at different times under on or more employers, those
performed overseas under the authority of the Republic of the
Philippines, and those that may be prescribed by the GSIS.
All services credited for retirement, resignation or separation for
which corresponding benefits have been awarded 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.
Effect of Separation from Service
The member shall continue to be a member, and entitled to
whatever benefits he has qualified to in the even of any
contingency compensable under this Act.
Employer- the national government, its political subdivisions,
branches, agencies, or instrumentalities, including GOCCs and
financial institutions with original charters, the constitutional
commissions and the judiciary.
Employee/Member- any person receiving compensation while in
the service of an employer, whether by election or appointment,
irrespective of the status of appointment, including barangay, and
Sanggunian officials.
Dependents
a) The legitimate spouse dependent for support upon the
member or pensioner
b) The legitimate, legitimated, legally adopted, or
illegitimate child who is:
a. Unmarried, not gainfully employed, not over the
age of majority; or
b. 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
c) Parents dependent upon the member for support
Primary Beneficiary- includes the legal dependent spouse until
he/she remarries and the dependent children.
Secondary Beneficiary- includes the dependent parents and
subject to the restrictions on the dependent children, the
legitimate DESCENDANTS
Compensation- is 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.
LIMITED PORTABILITY (R.A. 7699)
Contributions- refers to that paid by the employer or worker
either to the GSIS or SSS on account of the workers
membership.

Totalization- refers to the process of adding up the periods of

creditable services or contributions under each of the systems, for
purposes of eligibility and computation of benefits.

Portability- refers to the transfer of funds for the account and

benefit of a worker who transfers from one system to the other.

Covered Workers
1. Those who transfer employment from public to private
sector or vice-versa; or
2. Employed in both private or public sectors.

The creditable services or contributions in both systems

shall be:
1. Credited to their service or contribution record in each of
the systems; and
2. Totalized for purposes of old age, disability, survivorship,
and other benefits in case the covered member does not
qualify for SSS or GSIS benefits in either or both
systems without totalization.
Note: in case of overlapping periods of membership, it shall be
credited only once for purposes of totalization.

Proportionality of Benefits
Benefits to be paid by the system shall be in proportion to the
number of contributions actually remitted to that system.

Note: All contributions paid by such member personally, and

those that were paid by his employers to both systems (SSS and
GSIS) shall be considered in the processing of benefits which he
can claim from either or both systems.