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SSS LAW (R.A. 8282) 4.

Service performed in the employ of the PHILIPPINE


GOVERNMENT, instrumentality or agency thereof; and
Declaration of Policy 5. Service performed in the employ of a FOREIGN
To establish, develop, promote and perfect a sound and viable GOVERNMENT, international organization or their
tax-exempt social security service suitable to the needs of the wholly-owned instrumentality.
people throughout the Philippines which shall promote social
justice and provide meaningful protection to members and their Primary Beneficiaries
beneficiaries against the hazards of disability, sickness, maternity, 1. The dependent Spouse until he or she remarries; and
old age, death, and other contingencies resulting in loss of 2. The dependent legitimate, legitimated, legally adopted
income or financial burden. Towards this end, the State shall and illegitimate Children.
endeavor to extend social security protection to workers and their Provided: dependent ILLEGITIMATE children shall be entitled to
beneficiaries. (Sec. 2) 50% of the share of the legitimate, legitimated or legally adopted
children.
Employer- any person, natural or juridical, domestic or foreign, Provided: in the ABSENCE of the dependent legitimate,
who carries on in the Philippines any trade, business, industry, legitimated, and legally adopted children of the member, the
undertaking, or activity of any kind and uses the services of independent illegitimate children shall be entitled to 100% of the
another person who is under his orders as regards the benefits.
employment, except the Government and any of its political Note: A wife who is already separated de facto from her husband
subdivisions, branches or instrumentalities, including corporations cannot be said to be dependent for support upon the husband,
owned or controlled by the Government: Provided, That a self- absent any showing to the contrary. Conversely, if it is proved that
employed person shall be both employee and employer at the the husband and wife were still living together at the time of his
same time. 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
Employee - Any person who performs services for an employer in providing for herself. (SSS v. Aguas)
which either or both mental or physical efforts are used and who
receives compensation for such services, where there is an Secondary Beneficiaries
employer-employee relationship: Provided, That a self-employed 1. In the absence of the primary beneficiaries, the
person shall be both employee and employer at the same time. Dependent Parents; or
2. In the absence of all the foregoing, any other person
Self-Employed- any person whose income is not derived from designated by the covered employee.
employment, shall be the employer and employee at the same
time. Contingency - The retirement, death, disability, injury or sickness
and maternity of the member.
Dependents-
1. The legal spouse entitled by law to receive support from Coverage
the member; Compulsory
2. The legitimate, legitimated or legally adopted and 1. All employees not over 60 years of age and their
illegitimate child who is unmarried, not gainfully employers;
employed and has not reached 21 years of age or if 21 2. A domestic worker who has rendered at least 1 month of
years of age, he is congenitally incapacitated or while service shall be covered by the SSS
still a minor, he has been permanently incapacitated and 3. Self-employed persons as may be determined by the
incapable of self-support, physically and mentally; and Commission, including but not limited to the following:
3. The parent who is receiving regular support from the a. Self-employed Professionals
member. b. Partners and single proprietors
c. Actors and actresses, directors, scriptwriters
Compensation- refers to all actual remuneration for employment, and news correspondents who do not fall within
including the mandated cost-of-living allowance, as well as the the definition of the term employee in this
cash value of any remuneration paid in any medium other than section
cash except that part of the remuneration in excess of the d. Professional athletes, coaches, trainers, and
maximum salary credit. jockeys
(All remuneration + COLA + cash value of other remunerations e. Individual farmers and fishermen.
not paid in cash) Limitations
1. Any benefit earned by the employees under private
Employment- any service performed by an employee for his benefit plans existing at the time of the approval of the
employer except: Act shall not be discontinued, reduced or impaired.
1. Employment purely CASUAL and not for the purpose of 2. Private plans which are existing and in force at the time
occupation or business of the employer; of compulsory coverage shall be integrated with the plan
2. Services performed on or in connection with an ALIEN of the SSS in such a way where the employers
VESSEL by an employee if he is employed when such contribution to his private plan is more than that required
vessel is outside the Philippines; of him in this Act, he shall pay to the SSS only the
3. Services performed by TEMPORARY employees, which contribution to such private plan less his contribution to
may be excluded by regulation of the Commission. the SSS so that the employers total contribution to his
Employees of bona fide independent contractors shall benefit plan and to the SSS shall be the same as his
not be deemed employees of the employer engaging the contribution to his private benefit plan before the
service of said contractors; compulsory coverage.
3. Any changes, adjustments, modifications, eliminations, credited year of service in excess of 10 years;
or improvements in the benefits of the remaining private or
plan after the integration shall be subject to agreements b. 40% of monthly salary credit; or
between the employers and the employees concerned c. P1,000, provided that the monthly pension shall
4. The private benefit plan which the employer shall in no case be paid for an aggregate amount of
continue for his employees shall remain under the less than 60 months
Employers management and control unless there is an Minimum Pension
existing agreement to the contrary; and P1,200- for members with at least 10 years credited service
5. Nothing in this act shall be construed as a limitation on P2,400- for members with at least 20 years credited service
the right of employers and employees to agree on and
adopt benefits which are over and above those provided Dependents Pension
under this Act. a. Equivalent to 10% of monthly pensioner P250,
whichever is higher;
Voluntary b. Payable on account of death, permanent total
1. Spouses who devote full time to managing the disability or retirement; and
household and family affairs c. Payable to each dependent child conceived on
2. Persons separated from employment to maintain his or before the date of the contingency but not
right to full benefits exceeding 5, beginning with the youngest and
3. Self-employed who realizes no income for a certain without substitution, with preference on
month legitimate children
4. Filipinos recruited by foreign-based employers for Note: the monthly pension and dependents pension shall be
employment abroad. suspended upon the reemployment or resumption of self-
employment or the recovery of the disabled member from his
By Agreement permanent total disability or his failure to present himself for
Any foreign government, international organization, or their examination at least once a year upon notice by the SSS
wholly-owned instrumentality employing workers in the
Philippines, may enter into an agreement with the Philippine 2. Death Benefits and Permanent Disability Benefits
Government for the inclusion of such employees in the SSS
except those already covered by their respective civil service Death Benefits Permanent Total
retirement systems. Disability Benefits
Cause Death Permanent total
Effective Date of Coverage disability
1. Employer- on the first day of his operation Requisite Member has paid at least 36 monthly
2. Employee- on the first day of his employment contributions prior to the semester of death
3. Self employed- upon his registration with the SSS or disability
4. Domestic Worker- upon rendering at least 1 month of Benefits Monthly pension
service Payable to Whom Primary Member
beneficiaries.
Effects of Separation from Employment If none, secondary
1. Employers contribution on his account ceases at the beneficiaries are
end of the month of separation entitled to a lump
2. Employees obligation to contribute ceases at the end of sum benefit equal
the month of separation to 36 times the
3. But said employee shall be credited with all contributions monthly pension
paid on his behalf and entitled to benefits according to Failure to make 36 Benefits shall be a lump sum equal to the
the provisions of this act monthly payments monthly pension times the number of
4. He may however, continue to pay the total contributions monthly contributions paid to SSS or 12
to maintain his right to full benefit. times the monthly pensions, whichever is
higher.
Effect of Interruption of Business or Professional Income of
Self-Employed Individual Injuries Deemed as Permanent Total Disabilites
1. He shall not be required to pay contributions for that a. Complete loss of sight of both Eyes
month. b. Loss of 2 limbs at or above the ankle or wrists
2. He may, however, be allowed to continue paying c. Permanent complete paralysis of 2 limbs
contributions under the same rules applicable to a d. Brain injury resulting to incurable imbecility or insanity
separated covered employee member. e. Such cases as determined and approved by the SSS
3. No retroactive payment of contributions shall be allowed
other than as prescribed under sec. 22-A 3. Funeral Benefits
A funeral grant of P20,000 is given to whoever pays the burial
Benefits expenses of the deceased member of the family.
1. Monthly Pension
Monthly pension shall be the highest of the following: 4. Sickness Benefits- daily allowance paid to a covered
a. P300 + 20% of average monthly salary credit + employee who becomes sick and is confined in a
2% of average monthly salary credit for each 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 2. Members of the AFP, subject to the condition that they
member, provided that: must settle first their financial obligation with the GSIS
a. In no case shall be paid longer than 120 days in 3. Contractuals who have no ER-EE relationship with the
1 calendar year agencies they serve
b. Unused portion may not be carried forward and 4. Purely Casual employees.
added to total number of compensable days
allowable in the subsequent year Note: All members of the GSIS shall have life insurance,
c. Shall not be paid for more than 240 days on retirement, and all other social security protections such as
account of the same confinement disability, survivorship, separation, and unemployment benefits.
Exception: Members of the Judiciary and Constitutional
5. Maternity Leave Benefits commissions shall have life insurance only.
Covered female member is entitled to a daily maternity benefit
equivalent to 100% of her average daily salary credit for 60 days Computation of Service
or 78 days in case of ceasarian. From the date of original appointment/election, including periods
of service at different times under on or more employers, those
Non-Transferability of Benefits performed overseas under the authority of the Republic of the
General Rule: The SSS shall promptly pay the benefits provided Philippines, and those that may be prescribed by the GSIS.
to Persons Entitled thereto in accordance with this Act.
All services credited for retirement, resignation or separation for
Restrictions which corresponding benefits have been awarded shall be
a) The SSS shall pay the retirement benefits on the excluded in the computation of service in case of reinstatement in
day of contingency to qualified members who have the service of an employer and subsequent retirement or
submitted the necessary documents at least 6 separation, which is compensable under this Act.
months before.
b) The beneficiary, who is a national of a foreign Effect of Separation from Service
country which does not extend benefits to a Filipino The member shall continue to be a member, and entitled to
beneficiary residing in the Philippines, or which is whatever benefits he has qualified to in the even of any
not recognized by the Philippines, shall not be contingency compensable under this Act.
entitled to receive any benefit under this Act.
c) Where the best interest of the SSS will be served, Employer- the national government, its political subdivisions,
the commission may direct payments without regard branches, agencies, or instrumentalities, including GOCCs and
to nationality or country of residence. financial institutions with original charters, the constitutional
d) If the recipient is a minor or incapable of commissions and the judiciary.
administering his own affairs, the commission shall
appoint a representative. Such appointment shall Employee/Member- any person receiving compensation while in
not be necessary in case the recipient is under the the service of an employer, whether by election or appointment,
custody of or living with the parents or spouse of the irrespective of the status of appointment, including barangay, and
member in which case the benefits shall be paid to Sanggunian officials.
such parents or spouse, as representative payee of
the recipient. Dependents
e) Such benefits are not transferrable and no power of a) The legitimate spouse dependent for support upon the
attorney or other document executed by those member or pensioner
entitled thereto in favor of any agent, attorney or any b) The legitimate, legitimated, legally adopted, or
other person for the collection thereof on their behalf illegitimate child who is:
shall be recognized, except when they are a. Unmarried, not gainfully employed, not over the
physically unable to collect personally such benefits. age of majority; or
f) In case of death benefits, if no beneficiary qualifies b. Is over the age of majority but incapacitated
under this Act, said benefits shall be paid to the and incapable of self-support due to a mental or
legal heirs in accordance with the law of succession. physical defect acquired prior to age of majority
c) Parents dependent upon the member for support
Note: All contributions collected and all benefit payment received
and given by SSS are exempt from taxes. Primary Beneficiary- includes the legal dependent spouse until
he/she remarries and the dependent children.
Benefits under the SSS Law do not form part of the estate of Secondary Beneficiary- includes the dependent parents and
the covered employee. subject to the restrictions on the dependent children, the
legitimate DESCENDANTS
GSIS LAW (R.A. 8291)
Coverage Compensation- is the basic pay or salary received by an
Membership in the GSIS shall be compulsory for all government employee, pursuant to his election/appointment, excluding per
employees receiving compensation who have not reached the diems, bonuses, overtime pay, honoraria, allowances and any
compulsory retirement age irrespective of employment status. other emoluments received in addition to the basic pay which are
not integrated into the basic pay under existing laws.
Exceptions to the Compulsory Coverage
1. Members of the PNP, subject to the condition that they LIMITED PORTABILITY (R.A. 7699)
must settle first their financial obligation with the GSIS;
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.