Republic of the Philippines other benefits, prescribe their duties and establish such methods and procedures as may
establish such methods and procedures as may be necessary
Congress of the Philippines
Metro Manila
Tenth Congress
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 furtheramended 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
a. the Secretary of Labor and Employment or his duly designated undersecretary,
b. the SSS president and
c. seven (7) appointive members,
a. three (3) of whom shall represent the workers' group, at least one of whom
shall be a woman;
b. three (3), the employers' group, at least one (1) of whom shall be a
woman;
c. 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
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) Forthy 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 of use of Number of Months
One thumb 10
One index finger 8
One middle finger 6
One right finger 5 allowances shall be promptly made by the employer every regular payday or on the fifteenth
One little finger 3
One big toe 6 all sick leaves of absence with full pay to the credit of the employee member shall have been
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
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
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.
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).

"(f) The provisions regarding the notification required of the member and the employer as well as the "SEC. 17. Fee of Agents, Attorneys, Etc. - No agent, attorney or other person in charge of the
period within which the claim for benefit or reimbursement may be filed shall apply to all claims filed preparation, filing or pursuing any claim for benefit under this Act shall demand or charge for his
with the SSS. 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
"SEC. 14-A. Maternity Leave Benefit. - A female member who has paid at least three (3) prohibited: Provided, however, That any member of the Philippine Bar who appears as counsel in any
monthly contributions in the twelve-month period immediately preceding the semester of case heard by the Commission shall be entitled to attorneys' fees not exceeding ten percent (10%) of
her childbirth or miscarriage shall be paid a daily maternity benefit equivalent to one hundred the benefits awarded by the Commission, which fees shall not be payable before the actual payment of
percent (100%) of her average daily salary credit for sixty (60) days or seventy-eight (78) days in case the benefits, and any stipulation to the contrary shall be null and void.
of caesarian delivery, subject to the following conditions: "Any violation of the provisions of this Section shall be punished by a fine of not less than Five hundred
"(a) That the employee shall have notified her employer of her pregnancy and the probable date of pesos (P500.00) nor more than Five thousand pesos (P5,000.00), or imprisonment for not less than six
her childbirth, which notice shall be transmitted to the SSS in accordance with the rules and (6) months nor more than one (1) year, or both, at the discretion of the court.
regulations it may provide;
"(b) The full payment shall be advanced by the employer within thirty (30) days from the filing of the "SEC. 18. Employee's Contributions. - (a) Beginning as of the last day of the calendar month when an
maternity leave application; employee's compulsory coverage takes effect and every month thereafter during his employment, the
"(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness employer shall deduct and withhold from such employee's monthly salary, wage, compensation or
benefits Provided by this Act for the same period for which daily maternity benefits have been earnings, the employee's contribution in an amount corresponding to his salary, wage, compensation or
received; earnings during the month in accordance with the following schedule:
"(d) That the maternity benefits Provided under this section shall be paid only for the first four (4) SALARY BRACKET RANGE OF COMPENSATION MONTHLY SALARY MO
deliveries or miscarriages; CREDIT
"(e) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the EM
amount of maternity benefits advanced to the employee by the employer upon receipt of satisfactory I 1,000.00 - 1,249.99 1000 50.
proof of such payment and legality thereof; and
"(f) That if an employee member should give birth or suffer miscarriage II 1,250.00 - 1,749.99 1500 76.
 without the required contributions having been remitted for her by her employer to the SSS, III 1,750.00 - 2,249.99 2000 101
or
IV 2,250.00 - 2,749.99 2500 126
 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 V 2,750.00 - 3,249.99 3000 152
employee member would otherwise have been entitled to.
VI 3,250.00 - 3,749.99 3500 177
"SEC. 15. Non-Transferability of Benefits. - The SSS shall promptly pay the benefits Provided in VII 3,750.00 - 4,249.99 4000 202
this Act to such persons as may be entitled thereto in accordance with the provisions of this
VIII 4,250.00 - 4,749.99 4500 228
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 IX 4,750.00 - 5,249.99 5000 253
before: Provided, further, That the beneficiary who is a national of a foreign country which does not
X 5,250.00 - 5,749.99 5500 278
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 XI 5,750.00 - 6,249.99 6000 304
notwithstanding the foregoing, where the best interest of the SSS will be served, the Commission may XII 6,250.00 - 6,749.99 6500 329
direct payments without regard to nationality or country of residence: Provided, further, That if the
 XIII 6,750.00 - 7,249.99 7000
XIV 7,250.00 - 7,749.99 7500
XV 7,750.00 - 8.249.99 8000
XVI 8,250.00 - 8,749.99 8500
XVII 8,750.00 - OVER 9000
"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 233.30
354.70 necessary action against the 588.00
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
380.00
time the benefit accrues, as250.00
the case may be. 630.00
"(c) Should any person, natural
403.30 266.70or juridical, default in any payment of contributions, the Commission
672.00
may also collect the same in either of the following ways:
430.70 283.30 714.00
"1. By an action in court, which shall hear and dispose of the case in preference to any other civil
action; or
456.00 300.00 756.00
"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.
 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:
“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.

“(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.
“(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.

“(b) Unless the service is extended by appropriate authorities, retirement shall be compulsory for an “(d) The following disabilities shall be deemed total and permanent:
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  “(1) complete loss of sight of both eyes;
with existing civil service rules and regulations.  “(2) loss of two (2) limbs at or above the ankle or wrist;
 “(3) permanent complete paralysis of two(2) limbs;
“SECTION 13-A. Conditions for Entitlement. — A member who retires from the service shall be  “(4) brain injury resulting in incurable imbecility or insanity; and
entitled to the retirement benefits in paragraph (a) of Section 13 hereof: Provided, That:  “(5) such other cases as may be determined by the GSIS.

(1) he has rendered at least fifteen (15) years of service; “SECTION 17. Permanent Partial Disability Benefits. —
(a) If the disability is partial, he shall receive a cash payment in accordance with a schedule of
(2) he is at least sixty (60) years of age at the time of retirement; and disabilities to be prescribed by the GSIS: Provided, That he satisfies either conditions (1) or (2) of
Section 16(a);
(3) he is not receiving a monthly pension benefit from permanent total disability.
“(b) The following disabilities shall be deemed permanent and partial:
“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 “(1) complete and permanent loss of the use of:
the GSIS’ actuary and approved by the Board in accordance with the rules and regulations prescribed (i) any finger
by the GSIS.’ (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:
o the basic survivorship pension which is fifty percent (50%) of the basic monthly
pension; and
o the dependent children’s pension not exceeding fifty percent (50%) of the basic
monthly pension.
“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:
 was in the service at the time of his death; or
 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:
o when the dependent spouse is the only survivor, he/she shall receive the
basic survivorship pension for life or until he/she remarries;
o 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;
o 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:
o 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
o in the absence of secondary beneficiaries, the benefits under this paragraph shall
be paid to his legal heirs.
o 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:
 an active member as defined under Section 2(e) of this Act; or
 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
 a pensioner, as defined in Section 2(o) of this Act; or
 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 SECTION 2. Declaration of Policy. - The State shall
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.
SECTION 1. Title. - This Act shall be known as the "Anti-Sexual Harassment Act of 1995."
 value the dignity of every individual,
 enhance the development of its human resources,
 guarantee full respect for human rights,
 and uphold the dignity of workers, employees, applicants for employment, students or those
undergoing training, instruction or education. Towards this end, all forms of sexual
harassment in the employment, education or training environment are hereby declared
unlawful.

“Criminal actions arising from violations of the provisions of this Act may be commenced by the GSIS SECTION 3. Work, Education or Training -Related, Sexual Harassment Defined. - Work, education
or by the aggrieved member, either under this Act or, in appropriate cases, under the Revised Penal or training-related sexual harassment is committed
Code.  by an employer,
 employee,
“SECTION 53. Implementing Rules and Regulations. — The implementing rules and regulations to carry  manager,
out the provisions of this Act shall be adopted and promulgated by the GSIS not later than ninety (90)  supervisor,
days after the approval of this Act.  agent of the employer,
 teacher,
“SECTION 54. Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges, Functions and  instructor,
Activities. — Nothing in this Act shall be construed to repeal, amend or limit any provision of existing  professor,
laws. Presidential Decrees and Letters of Instructions, not otherwise specifically inconsistent with the  coach,
provisions of this Act. trainor, or any other person who, having authority, influence or moral ascendancy over another in a
work or training or education environment, demands, requests or otherwise requires any sexual
“SECTION 55. Exclusiveness of Benefits. — Whenever other laws provide similar benefits for the same favor from the other, regardless of whether the demand, request or requirement for submission is
contingencies covered by this Act, the member who qualifies to the benefits shall have the option to accepted by the object of said Act.
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. (a) In a work-related or employment environment, sexual harassment is committed when:
(1) The sexual favor is made as a
“SECTION 56. Appropriations. — The amount necessary to carry out the provisions of this Act shall be  condition in the hiring or in the employment,
included in the respective budgets of the agencies in the national government obligation program of the  re-employment or continued employment of said individual, or
year following its enactment into law and thereafter.”  in granting said individual favorable compensation, terms of conditions,
promotions, or privileges;
SECTION 2. Separability Clause. — Should any provision of this Act or any part thereof be declared  or the refusal to grant the sexual favor results in limiting, segregating or
invalid, the other provisions, so far as they are separable from the invalid ones, shall remain in force classifying the employee which in any way would discriminate, deprive
and effect. ordiminish employment opportunities or otherwise adversely affect said
employee
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 (2) The above acts would impair the employee's rights or privileges under existing labor
effectivity of this Act shall remain in force and effect: Provided, further, That subsequent to the laws; or
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. (3) The above acts would result in an intimidating, hostile, or offensive environment for the
employee.
SECTION 4. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the Official (b) In an education or training environment, sexual harassment is committed:
Gazette or in at least two (2) newspapers of general circulation. (1) Against one who is under the care, custody or supervision of the offender;
(2) Against one whose education, training, apprenticeship or tutorship is entrusted to the
Approved: May 30, 1997 offender
(3) When the sexual favor is made a condition to the giving of a
Published in Malaya, The Philippine Star, Philippine Daily Inquirer, and the Manila Bulletin on June 9,  passing grade, or
1997. July 28, 1997.  the granting of honors and scholarships, or
 the payment of a stipend,
Published in the Official Gazette, Vol. 93 No. 29 page 4360 on July 21, 1997.  allowance or other benefits, privileges, or consideration;
(4) When the sexual advances result in an intimidating, hostile or offensive environment
for the student, trainee or apprentice.
Republic Act 7877 Any person who directs or induces another to commit any act of sexual harassment as herein
Anti-Sexual Harassment Act of 1995 defined, or who cooperates in the commission thereof by another without which it would not have
AN ACT DECLARING SEXUAL HARASSMENT UNLAWFUL IN THE EMPLOYMENT, EDUCATION OR been committed, shall also be held liable under this Act.
TRAINING ENVIRONMENT, AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SEECTION 4. Duty of the Employer or Head of Office in a Work-related, Education or
Training Environment. - It shall be the duty of the employer or the head of the work-related,
educational or training environment or institution, to prevent or deter the commission of acts of
sexual harassment and to provide the procedures for the resolution, settlement or prosecution of acts
of sexual harassment. Towards this end, the employer or head of office shall:
(a) Promulgate appropriate rules and regulations in consultation with and joint1y approved by the
employees or students or trainees, through their duly designated representatives, prescribing the
procedure for the investigation of sexual harassment cases and the administrative sanctions therefor.
Administrative sanctions shall not be a bar to prosecution in the proper courts for unlawful acts of
sexual harassment.
The said rules and regulations issued pursuant to this subsection (a) shall include, among others,
guidelines on proper decorum in the workplace and educational or training institutions.
(b) Create a committee on decorum and investigation of cases on sexual harassment. The
committee shall conduct meetings, as the case may be, with officers and employees, teachers,
instructors, professors, coaches, trainors, and students or trainees to increase understanding and
prevent incidents of sexual harassment. It shall also conduct the investigation of alleged cases
constituting sexual harassment.
In the case of a work-related environment, the committee shall be composed of at least one (1)
representative each from the management, the union, if any, the employees from the supervisory
rank, and from the rank and file employees.
In the case of the educational or training institution, the committee shall be composed of at least
one (1) representative from the administration, the trainors, instructors, professors or coaches and
students or trainees, as the case may be.
The employer or head of office, educational or training institution shall disseminate or post a copy
of this Act for the information of all concerned.
SECTION 5. Liability of the Employer, Head of Office, Educational or Training Institution.
- The employer or head of office, educational or training institution shall be solidarily liable for
damages arising from the acts of sexual harassment committed in the employment, education or
training environment if the employer or head of office, educational or training institution is informed of
such acts by the offended party and no immediate action is taken.
SECTION 6. Independent Action for Damages. - Nothing in this Act shall preclude the victim of
work, education or training-related sexual harassment from instituting a separate and independent
action for damages and other affirmative relief.
SECTION 7. Penalties. - Any person who violates the provisions of this Act shall, upon conviction,
be penalized by imprisonment of not less than one (1) month nor more than six (6) months, or a fine
of not less than Ten thousand pesos (P10,000) nor more than Twenty thousand pesos (P20,000),
or both such fine and imprisonment at the discretion of the court.
Any action arising from the violation of the provisions of this Act shall prescribe in three (3) years.
SECTION 8. Separability Clause. - If any portion or provision of this Act is declared void or
unconstitutional, the remaining portions or provisions hereof shall not be affected by such declaration.
SECTION 9. Repealing Clause. - All laws, decrees, orders, rules and regulations, other issuances, or
parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
SECTION 10. Effectivity Clause.- This Act shall take effect fifteen (15) days after its complete
publication in at least two (2) national newspapers of general circulation.
Republic of the Philippines
Congress of the Philippines
Metro Manila
Twelfth Congress
Third Regular Session
Begun and held in Metro Manila, on Monday, the twenty-second day of July, two thousand three.
Republic Act No. 9262 March 08, 2004
AN ACT DEFINING VIOLENCE AGAINST WOMEN AND THEIR CHILDREN, PROVIDING FOR
PROTECTIVE MEASURES FOR VICTIMS, PRESCRIBING PENALTIES THEREFORE, AND FOR
OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title.- This Act shall be known as the "Anti-Violence Against Women and Their
Children Act of 2004".
SECTION 2. Declaration of Policy.- It is hereby declared that the State values the dignity of women
and children and guarantees full respect for human rights. The State also recognizes the need to
protect the family and its members particularly women and children, from violence and threats to their
personal safety and security.
Towards this end, the State shall exert efforts to address violence committed against women and
children in keeping with the fundamental freedoms guaranteed under the Constitution and the
Provisions of the Universal Declaration of Human Rights, the convention on the Elimination of all forms
of discrimination Against Women, Convention on the Rights of the Child and other international human
rights instruments of which the Philippines is a party.
SECTION 3. Definition of Terms.- As used in this Act,
(a) "Violence against women and their children" refers to any act or a series of acts committed by any
person against a woman who is his wife, former wife, or against a woman with whom the person has or
had a sexual or dating relationship, or with whom he has a common child, or against her child whether
legitimate or illegitimate, within or without the family abode, which result in or is likely to result in
physical, sexual, psychological harm or suffering, or economic abuse including threats of such acts,
battery, assault, coercion, harassment or arbitrary deprivation of liberty. It includes, but is not limited
to, the following acts:
A. "Physical Violence" refers to acts that include bodily or physical harm;
B. "Sexual violence" refers to an act which is sexual in nature, committed against a woman or her
child. It includes, but is not limited to:
a) rape, sexual harassment, acts of lasciviousness, treating a woman or her child as a sex object,
making demeaning and sexually suggestive remarks, physically attacking the sexual parts of the
victim's body, forcing her/him to watch obscene publications and indecent shows or forcing the woman
or her child to do indecent acts and/or make films thereof, forcing the wife and mistress/lover to live in
the conjugal home or sleep together in the same room with the abuser;
b) acts causing or attempting to cause the victim to engage in any sexual activity by force, threat of
force, physical or other harm or threat of physical or other harm or coercion;
c) Prostituting the woman or child.
C. "Psychological violence" refers to acts or omissions causing or likely to cause mental or emotional
suffering of the victim such as but not limited to intimidation, harassment, stalking, damage to
property, public ridicule or humiliation, repeated verbal abuse and mental infidelity. It includes causing
or allowing the victim to witness the physical, sexual or psychological abuse of a member of the family
to which the victim belongs, or to witness pornography in any form or to witness abusive injury to pets
or to unlawful or unwanted deprivation of the right to custody and/or visitation of common children.
D. "Economic abuse" refers to acts that make or attempt to make a woman financially dependent which
includes, but is not limited to the following:
1. withdrawal of financial support or preventing the victim from engaging in any legitimate profession,
occupation, business or activity, except in cases wherein the other spouse/partner objects on valid,
serious and moral grounds as defined in Article 73 of the Family Code;
2. deprivation or threat of deprivation of financial resources and the right to the use and enjoyment of
the conjugal, community or property owned in common;
3. destroying household property;
4. controlling the victims' own money or properties or solely controlling the conjugal money or
properties.
(b) "Battery" refers to an act of inflicting physical harm upon the woman or her child resulting to the
physical and psychological or emotional distress.
(c) "Battered Woman Syndrome" refers to a scientifically defined pattern of psychological and
behavioral symptoms found in women living in battering relationships as a result of cumulative abuse.
(d) "Stalking" refers to an intentional act committed by a person who, knowingly and without lawful
justification follows the woman or her child or places the woman or her child under surveillance directly
or indirectly or a combination thereof.
(e) "Dating relationship" refers to a situation wherein the parties live as husband and wife without the
benefit of marriage or are romantically involved over time and on a continuing basis during the course
of the relationship. A casual acquaintance or ordinary socialization between two individuals in a
business or social context is not a dating relationship.
(f) "Sexual relations" refers to a single sexual act which may or may not result in the bearing of a
common child.
(g) "Safe place or shelter" refers to any home or institution maintained or managed by the Department
of Social Welfare and Development (DSWD) or by any other agency or voluntary organization
accredited by the DSWD for the purposes of this Act or any other suitable place the resident of which is
willing temporarily to receive the victim.
(h) "Children" refers to those below eighteen (18) years of age or older but are incapable of taking care
of themselves as defined under Republic Act No. 7610. As used in this Act, it includes the biological
children of the victim and other children under her care.
SECTION 4. Construction.- This Act shall be liberally construed to promote the protection and safety of
victims of violence against women and their children.
SECTION 5. Acts of Violence Against Women and Their Children.- The crime of violence against
women and their children is committed through any of the following acts:
(a) Causing physical harm to the woman or her child;
(b) Threatening to cause the woman or her child physical harm;
(c) Attempting to cause the woman or her child physical harm;
(d) Placing the woman or her child in fear of imminent physical harm;
(e) Attempting to compel or compelling the woman or her child to engage in conduct which
the woman or her child has the right to desist from or desist from conduct which the woman
or her child has the right to engage in, or attempting to restrict or restricting the woman's or
her child's freedom of movement or conduct by force or threat of force, physical or other
harm or threat of physical or other harm, or intimidation directed against the woman or
child.
This shall include, but not limited to, the following acts committed with the purpose or effect
of controlling or restricting the woman's or her child's movement or conduct:
(1) Threatening to deprive or actually depriving the woman or her child
of custody to her/his family;
(2) Depriving or threatening to deprive the woman or her children of
financial support legally due her or her family, or deliberately providing
the woman's children insufficient financial support;
(3) Depriving or threatening to deprive the woman or her child of a legal
right;
(4) Preventing the woman in engaging in any legitimate profession,
occupation, business or activity or controlling the victim's own mon4ey
or properties, or solely controlling the conjugal or common money, or
properties;
(f) Inflicting or threatening to inflict physical harm on oneself for the
purpose of controlling her actions or decisions;
(g) Causing or attempting to cause the woman or her child to engage in
any sexual activity which does not constitute rape, by force or threat of
force, physical harm, or through intimidation directed against the woman
or her child or her/his immediate family;
(h) Engaging in purposeful, knowing, or reckless conduct, personally or
through another, that alarms or causes substantial emotional or
psychological distress to the woman or her child. This shall include, but
not be limited to, the following acts:
(1) Stalking or following the woman or her child in public or private
places;
(2) Peering in the window or lingering outside the residence of the
woman or her child;
(3) Entering or remaining in the dwelling or on the property of the
woman or her child against her/his will;
(4) Destroying the property and personal belongings or inflicting harm to
animals or pets of the woman or her child; and
(5) Engaging in any form of harassment or violence;
(i) Causing mental or emotional anguish, public ridicule or humiliation to
the woman or her child, including, but not limited to, repeated verbal
and emotional abuse, and denial of financial support or custody of minor
children of access to the woman's child/children.
SECTION 6. Penalties.- The crime of violence against women and their children, under Section 5
hereof shall be punished according to the following rules:
(a) Acts falling under Section 5(a) constituting attempted, frustrated or consummated parricide or
murder or homicide shall be punished in accordance with the provisions of the Revised Penal Code.
If these acts resulted in mutilation, it shall be punishable in accordance with the Revised Penal Code;
those constituting serious physical injuries shall have the penalty of prison mayor; those constituting
less serious physical injuries shall be punished by prision correccional; and those constituting slight
physical injuries shall be punished by arresto mayor.
Acts falling under Section 5(b) shall be punished by imprisonment of two degrees lower than the
prescribed penalty for the consummated crime as specified in the preceding paragraph but shall in no
case be lower than arresto mayor.
(b) Acts falling under Section 5(c) and 5(d) shall be punished by arresto mayor;
(c) Acts falling under Section 5(e) shall be punished by prision correccional;
(d) Acts falling under Section 5(f) shall be punished by arresto mayor;
(e) Acts falling under Section 5(g) shall be punished by prision mayor;
(f) Acts falling under Section 5(h) and Section 5(i) shall be punished by prision mayor.
If the acts are committed while the woman or child is pregnant or committed in the presence of her
child, the penalty to be applied shall be the maximum period of penalty prescribed in the section.
In addition to imprisonment, the perpetrator shall (a) pay a fine in the amount of not less than One
hundred thousand pesos (P100,000.00) but not more than three hundred thousand pesos
(300,000.00); (b) undergo mandatory psychological counseling or psychiatric treatment and shall
report compliance to the court.
SECTION 7. Venue.- The Regional Trial Court designated as a Family Court shall have original and
exclusive jurisdiction over cases of violence against women and their children under this law. In the
absence of such court in the place where the offense was committed, the case shall be filed in the
Regional Trial Court where the crime or any of its elements was committed at the option of the
compliant.
SECTION 8. Protection Orders.-
A protection order is an order issued under this act for the purpose of preventing further acts of
violence against a woman or her child specified in Section 5 of this Act and granting other necessary
relief. The relief granted under a protection order serve the purpose of safeguarding the victim from
further harm, minimizing any disruption in the victim's daily life, and facilitating the opportunity and
ability of the victim to independently regain control over her life. The provisions of the protection order
shall be enforced by law enforcement agencies. The protection orders that may be issued under this
Act are the barangay protection order (BPO), temporary protection order (TPO) and permanent
protection order (PPO). The protection orders that may be issued under this Act shall include any, some
or all of the following reliefs:
(a) Prohibition of the respondent from threatening to commit or committing, personally or
through another, any of the acts mentioned in Section 5 of this Act;
(b) Prohibition of the respondent from harassing, annoying, telephoning, contacting or
otherwise communicating with the petitioner, directly or indirectly;
(c) Removal and exclusion of the respondent from the residence of the petitioner, regardless
of ownership of the residence, either temporarily for the purpose of protecting the petitioner,
or permanently where no property rights are violated, and if respondent must remove
personal effects from the residence, the court shall direct a law enforcement agent to
accompany the respondent has gathered his things and escort respondent from the
residence;
 (d) Directing the respondent to stay away from petitioner and designated family or
household member at a distance specified by the court, and to stay away from the residence,
school, place of employment, or any specified place frequented by the petitioner and any
designated family or household member;
(e) Directing lawful possession and use by petitioner of an automobile and other essential
personal effects, regardless of ownership, and directing the appropriate law enforcement
officer to accompany the petitioner to the residence of the parties to ensure that the
petitioner is safely restored to the possession of the automobile and other essential personal
effects, or to supervise the petitioner's or respondent's removal of personal belongings;
(f) Granting a temporary or permanent custody of a child/children to the petitioner;
(g) Directing the respondent to provide support to the woman and/or her child if entitled to
legal support. Notwithstanding other laws to the contrary, the court shall order an
appropriate percentage of the income or salary of the respondent to be withheld regularly by
the respondent's employer for the same to be automatically remitted directly to the woman.
Failure to remit and/or withhold or any delay in the remittance of support to the woman
and/or her child without justifiable cause shall render the respondent or his employer liable
for indirect contempt of court;
(h) Prohibition of the respondent from any use or possession of any firearm or deadly
weapon and order him to surrender the same to the court for appropriate disposition by the
court, including revocation of license and disqualification to apply for any license to use or
possess a firearm. If the offender is a law enforcement agent, the court shall order the
offender to surrender his firearm and shall direct the appropriate authority to investigate on
the offender and take appropriate action on matter;
(i) Restitution for actual damages caused by the violence inflicted, including, but not limited
to, property damage, medical expenses, childcare expenses and loss of income;
(j) Directing the DSWD or any appropriate agency to provide petitioner may need; and
(k) Provision of such other forms of relief as the court deems necessary to protect and
provide for the safety of the petitioner and any designated family or household member,
provided petitioner and any designated family or household member consents to such relief.
Any of the reliefs provided under this section shall be granted even in the absence of a
decree of legal separation or annulment or declaration of absolute nullity of marriage.
The issuance of a BPO or the pendency of an application for BPO shall not preclude a
petitioner from applying for, or the court from granting a TPO or PPO.
SECTION 9. Who may file Petition for Protection Orders. – A petition for protection order may be
filed by any of the following:
(a) the offended party;
(b) parents or guardians of the offended party;
(c) ascendants, descendants or collateral relatives within the fourth civil degree of
consanguinity or affinity;
(d) officers or social workers of the DSWD or social workers of local government units (LGUs);
(e) police officers, preferably those in charge of women and children's desks;
(f) Punong Barangay or Barangay Kagawad;
(g) lawyer, counselor, therapist or healthcare provider of the petitioner;
(h) At least two (2) concerned responsible citizens of the city or municipality where the
violence against women and their children occurred and who has personal knowledge of the
offense committed.
SECTION 10. Where to Apply for a Protection Order. – Applications for BPOs shall follow the rules on
venue under Section 409 of the Local Government Code of 1991 and its implementing rules and
regulations. An application for a TPO or PPO may be filed in the regional trial court, metropolitan trial
court, municipal trial court, municipal circuit trial court with territorial jurisdiction over the place of
residence of the petitioner: Provided, however, That if a family court exists in the place of residence of
the petitioner, the application shall be filed with that court.
SECTION 11. How to Apply for a Protection Order. – The application for a protection order must be in
writing, signed and verified under oath by the applicant. It may be filed as an independent action or as
incidental relief in any civil or criminal case the subject matter or issues thereof partakes of a violence
as described in this Act. A standard protection order application form, written in English with translation
to the major local languages, shall be made available to facilitate applications for protections order, and
shall contain, among other, the following information:
(a) names and addresses of petitioner and respondent;
(b) description of relationships between petitioner and respondent;
(c) a statement of the circumstances of the abuse;
(d) description of the reliefs requested by petitioner as specified in Section 8 herein;
(e) request for counsel and reasons for such;
(f) request for waiver of application fees until hearing; and
(g) an attestation that there is no pending application for a protection order in another court.
If the applicants is not the victim, the application must be accompanied by an affidavit of the applicant
attesting to (a) the circumstances of the abuse suffered by the victim and (b) the circumstances of
consent given by the victim for the filling of the application. When disclosure of the address of the
victim will pose danger to her life, it shall be so stated in the application. In such a case, the applicant
shall attest that the victim is residing in the municipality or city over which court has territorial
jurisdiction, and shall provide a mailing address for purpose of service processing.
An application for protection order filed with a court shall be considered an application for both a TPO
and PPO.
Barangay officials and court personnel shall assist applicants in the preparation of the application. Law
enforcement agents shall also extend assistance in the application for protection orders in cases
brought to their attention.
SECTION 12. Enforceability of Protection Orders. – All TPOs and PPOs issued under this Act shall be
enforceable anywhere in the Philippines and a violation thereof shall be punishable with a fine ranging
from Five Thousand Pesos (P5,000.00) to Fifty Thousand Pesos (P50,000.00) and/or imprisonment of
six (6) months.
SECTION 13. Legal Representation of Petitioners for Protection Order. – If the woman or her child
requests in the applications for a protection order for the appointment of counsel because of lack of
economic means to hire a counsel de parte, the court shall immediately direct the Public Attorney's
Office (PAO) to represent the petitioner in the hearing on the application. If the PAO determines that
the applicant can afford to hire the services of a counsel de parte, it shall facilitate the legal
representation of the petitioner by a counsel de parte. The lack of access to family or conjugal
resources by the applicant, such as when the same are controlled by the perpetrator, shall qualify the
petitioner to legal representation by the PAO.
However, a private counsel offering free legal service is not barred from representing the petitioner.
SECTION 14. Barangay Protection Orders (BPOs); Who May Issue and How. - Barangay Protection
Orders (BPOs) refer to the protection order issued by the Punong Barangay ordering the perpetrator to
desist from committing acts under Section 5 (a) and (b) of this Act. A Punong Barangay who receives
applications for a BPO shall issue the protection order to the applicant on the date of filing after ex
parte determination of the basis of the application. If the Punong Barangay is unavailable to act on the
application for a BPO, the application shall be acted upon by any available Barangay Kagawad. If the
BPO is issued by a Barangay Kagawad the order must be accompanied by an attestation by
the Barangay Kagawad that the Punong Barangay was unavailable at the time for the issuance of the
BPO. BPOs shall be effective for fifteen (15) days. Immediately after the issuance of an ex parte BPO,
the Punong Barangay or Barangay Kagawad shall personally serve a copy of the same on the
respondent, or direct any barangay official to effect is personal service.
The parties may be accompanied by a non-lawyer advocate in any proceeding before the Punong
Barangay.
SECTION 15. Temporary Protection Orders. – Temporary Protection Orders (TPOs) refers to the
protection order issued by the court on the date of filing of the application after ex parte determination
that such order should be issued. A court may grant in a TPO any, some or all of the reliefs mentioned
in this Act and shall be effective for thirty (30) days. The court shall schedule a hearing on the issuance
of a PPO prior to or on the date of the expiration of the TPO. The court shall order the immediate
personal service of the TPO on the respondent by the court sheriff who may obtain the assistance of
law enforcement agents for the service. The TPO shall include notice of the date of the hearing on the
merits of the issuance of a PPO.
SECTION 16. Permanent Protection Orders. – Permanent Protection Order (PPO) refers to protection
order issued by the court after notice and hearing.
Respondents non-appearance despite proper notice, or his lack of a lawyer, or the non-availability of
his lawyer shall not be a ground for rescheduling or postponing the hearing on the merits of the
issuance of a PPO. If the respondents appears without counsel on the date of the hearing on the PPO,
the court shall appoint a lawyer for the respondent and immediately proceed with the hearing. In case
the respondent fails to appear despite proper notice, the court shall allow ex parte presentation of the
evidence by the applicant and render judgment on the basis of the evidence presented. The court shall
allow the introduction of any history of abusive conduct of a respondent even if the same was not
directed against the applicant or the person for whom the applicant is made.
The court shall, to the extent possible, conduct the hearing on the merits of the issuance of a PPO in
one (1) day. Where the court is unable to conduct the hearing within one (1) day and the TPO issued is
due to expire, the court shall continuously extend or renew the TPO for a period of thirty (30) days at
each particular time until final judgment is issued. The extended or renewed TPO may be modified by
the court as may be necessary or applicable to address the needs of the applicant.
The court may grant any, some or all of the reliefs specified in Section 8 hereof in a PPO. A PPO shall
be effective until revoked by a court upon application of the person in whose favor the order was
issued. The court shall ensure immediate personal service of the PPO on respondent.
The court shall not deny the issuance of protection order on the basis of the lapse of time between the
act of violence and the filing of the application.
Regardless of the conviction or acquittal of the respondent, the Court must determine whether or not
the PPO shall become final. Even in a dismissal, a PPO shall be granted as long as there is no clear
showing that the act from which the order might arise did not exist.
SECTION 17. Notice of Sanction in Protection Orders. – The following statement must be printed in
bold-faced type or in capital letters on the protection order issued by the Punong Barangay or court:
"VIOLATION OF THIS ORDER IS PUNISHABLE BY LAW."
SECTION 18. Mandatory Period For Acting on Applications For Protection Orders – Failure to act on an
application for a protection order within the reglementary period specified in the previous section
without justifiable cause shall render the official or judge administratively liable.
SECTION 19. Legal Separation Cases. – In cases of legal separation, where violence as specified in
this Act is alleged, Article 58 of the Family Code shall not apply. The court shall proceed on the main
case and other incidents of the case as soon as possible. The hearing on any application for a
protection order filed by the petitioner must be conducted within the mandatory period specified in this
Act.
SECTION 20. Priority of Application for a Protection Order. – Ex parte and adversarial hearings to
determine the basis of applications for a protection order under this Act shall have priority over all
other proceedings. Barangay officials and the courts shall schedule and conduct hearings on
applications for a protection order under this Act above all other business and, if necessary, suspend
other proceedings in order to hear applications for a protection order.
SECTION 21. Violation of Protection Orders. – A complaint for a violation of a BPO issued under this
Act must be filed directly with any municipal trial court, metropolitan trial court, or municipal circuit
trial court that has territorial jurisdiction over the barangay that issued the BPO. Violation of a BPO
shall be punishable by imprisonment of thirty (30) days without prejudice to any other criminal or civil
action that the offended party may file for any of the acts committed.
A judgement of violation of a BPO ma be appealed according to the Rules of Court. During trial and
upon judgment, the trial court may motu proprio issue a protection order as it deems necessary
without need of an application.
Violation of any provision of a TPO or PPO issued under this Act shall constitute contempt of court
punishable under Rule 71 of the Rules of Court, without prejudice to any other criminal or civil action
that the offended party may file for any of the acts committed.
SECTION 22. Applicability of Protection Orders to Criminal Cases. – The foregoing provisions on
protection orders shall be applicable in impliedly instituted with the criminal actions involving violence
against women and their children.
SECTION 23. Bond to Keep the Peace. – The Court may order any person against whom a protection
order is issued to give a bond to keep the peace, to present two sufficient sureties who shall undertake
that such person will not commit the violence sought to be prevented.
Should the respondent fail to give the bond as required, he shall be detained for a period which shall in
no case exceed six (6) months, if he shall have been prosecuted for acts punishable under Section 5(a)
to 5(f) and not exceeding thirty (30) days, if for acts punishable under Section 5(g) to 5(I).
The protection orders referred to in this section are the TPOs and the PPOs issued only by the courts.
SECTION 24. Prescriptive Period. – Acts falling under Sections 5(a) to 5(f) shall prescribe in twenty
(20) years. Acts falling under Sections 5(g) to 5(I) shall prescribe in ten (10) years.
SECTION 25. Public Crime. – Violence against women and their children shall be considered a public
offense which may be prosecuted upon the filing of a complaint by any citizen having personal
knowledge of the circumstances involving the commission of the crime.
SECTION 26. Battered Woman Syndrome as a Defense. – Victim-survivors who are found by the
courts to be suffering from battered woman syndrome do not incur any criminal and civil liability
notwithstanding the absence of any of the elements for justifying circumstances of self-defense under
the Revised Penal Code.
In the determination of the state of mind of the woman who was suffering from battered woman
syndrome at the time of the commission of the crime, the courts shall be assisted by expert
psychiatrists/ psychologists.
SECTION 27. Prohibited Defense. – Being under the influence of alcohol, any illicit drug, or any other
mind-altering substance shall not be a defense under this Act.
SECTION 28. Custody of children. – The woman victim of violence shall be entitled to the custody and
support of her child/children. Children below seven (7) years old older but with mental or physical
disabilities shall automatically be given to the mother, with right to support, unless the court finds
compelling reasons to order otherwise.
A victim who is suffering from battered woman syndrome shall not be disqualified from having custody
of her children. In no case shall custody of minor children be given to the perpetrator of a woman who
is suffering from Battered woman syndrome.
SECTION 29. Duties of Prosecutors/Court Personnel. – Prosecutors and court personnel should
observe the following duties when dealing with victims under this Act:
a) communicate with the victim in a language understood by the woman or her child; and
b) inform the victim of her/his rights including legal remedies available and procedure, and privileges
for indigent litigants.
SECTION 30. Duties of Barangay Officials and Law Enforcers. – Barangay officials and law enforcers
shall have the following duties:
(a) respond immediately to a call for help or request for assistance or protection of the victim by
entering the necessary whether or not a protection order has been issued and ensure the safety of the
victim/s;
(b) confiscate any deadly weapon in the possession of the perpetrator or within plain view;
(c) transport or escort the victim/s to a safe place of their choice or to a clinic or hospital;
(d) assist the victim in removing personal belongs from the house;
(e) assist the barangay officials and other government officers and employees who respond to a call for
help;
(f) ensure the enforcement of the Protection Orders issued by the Punong Barangy or the courts;
(g) arrest the suspected perpetrator wiithout a warrant when any of the acts of violence defined by this
Act is occurring, or when he/she has personal knowledge that any act of abuse has just been
committed, and there is imminent danger to the life or limb of the victim as defined in this Act; and
(h) immediately report the call for assessment or assistance of the DSWD, social Welfare Department
of LGUs or accredited non-government organizations (NGOs).
Any barangay official or law enforcer who fails to report the incident shall be liable for a fine not
exceeding Ten Thousand Pesos (P10,000.00) or whenever applicable criminal, civil or administrative
liability.
SECTION 31. Healthcare Provider Response to Abuse – Any healthcare provider, including, but not
limited to, an attending physician, nurse, clinician, barangay health worker, therapist or counselor who
suspects abuse or has been informed by the victim of violence shall:
(a) properly document any of the victim's physical, emotional or psychological injuries;
(b) properly record any of victim's suspicions, observations and circumstances of the examination or
visit;
(c) automatically provide the victim free of charge a medical certificate concerning the examination or
visit;
(d) safeguard the records and make them available to the victim upon request at actual cost; and
(e) provide the victim immediate and adequate notice of rights and remedies provided under this Act,
and services available to them.
SECTION 32. Duties of Other Government Agencies and LGUs – Other government agencies and LGUs
shall establish programs such as, but not limited to, education and information campaign and seminars
or symposia on the nature, causes, incidence and consequences of such violence particularly towards
educating the public on its social impacts.
It shall be the duty of the concerned government agencies and LGU's to ensure the sustained education
and training of their officers and personnel on the prevention of violence against women and their
children under the Act.
SECTION 33. Prohibited Acts. – A Punong Barangay, Barangay Kagawad or the court hearing an
application for a protection order shall not order, direct, force or in any way unduly influence he
applicant for a protection order to compromise or abandon any of the reliefs sought in the application
for protection under this Act. Section 7 of the Family Courts Act of 1997 and Sections 410, 411, 412
and 413 of the Local Government Code of 1991 shall not apply in proceedings where relief is sought
under this Act.
Failure to comply with this Section shall render the official or judge administratively liable.
SECTION 34. Persons Intervening Exempt from Liability. – In every case of violence against women
and their children as herein defined, any person, private individual or police authority or barangay
official who, acting in accordance with law, responds or intervenes without using violence or restraint
greater than necessary to ensure the safety of the victim, shall not be liable for any criminal, civil or
administrative liability resulting therefrom.
SECTION 35. Rights of Victims. – In addition to their rights under existing laws, victims of violence
against women and their children shall have the following rights:
(a) to be treated with respect and dignity;
(b) to avail of legal assistance form the PAO of the Department of Justice (DOJ) or any public legal
assistance office;
(c) To be entitled to support services form the DSWD and LGUs'
(d) To be entitled to all legal remedies and support as provided for under the Family Code; and
(e) To be informed of their rights and the services available to them including their right to apply for a
protection order.
SECTION 36. Damages. – Any victim of violence under this Act shall be entitled to actual,
compensatory, moral and exemplary damages.
SECTION 37. Hold Departure Order. – The court shall expedite the process of issuance of a hold
departure order in cases prosecuted under this Act.
SECTION 38. Exemption from Payment of Docket Fee and Other Expenses. – If the victim is an
indigent or there is an immediate necessity due to imminent danger or threat of danger to act on an
application for a protection order, the court shall accept the application without payment of the filing
fee and other fees and of transcript of stenographic notes.
SECTION 39. Inter-Agency Council on Violence Against Women and Their Children (IAC-VAWC). In
pursuance of the abovementioned policy, there is hereby established an Inter-Agency Council on
Violence Against Women and their children, hereinafter known as the Council, which shall be composed
of the following agencies:
(a) Department of Social Welfare and Development (DSWD);
(b) National Commission on the Role of Filipino Women (NCRFW);
(c) Civil Service Commission (CSC);
(d) Commission on Human rights (CHR)
(e) Council for the Welfare of Children (CWC);
(f) Department of Justice (DOJ);
(g) Department of the Interior and Local Government (DILG);
(h) Philippine National Police (PNP);
(i) Department of Health (DOH);
(j) Department of Education (DepEd);
(k) Department of Labor and Employment (DOLE); and
(l) National Bureau of Investigation (NBI).
These agencies are tasked to formulate programs and projects to eliminate VAW based on their
mandates as well as develop capability programs for their employees to become more sensitive to the
needs of their clients. The Council will also serve as the monitoring body as regards to VAW initiatives.
The Council members may designate their duly authorized representative who shall have a rank not
lower than an assistant secretary or its equivalent. These representatives shall attend Council meetings
in their behalf, and shall receive emoluments as may be determined by the Council in accordance with
existing budget and accounting rules and regulations.
SECTION 40. Mandatory Programs and Services for Victims. – The DSWD, and LGU's shall provide the
victims temporary shelters, provide counseling, psycho-social services and /or, recovery, rehabilitation
programs and livelihood assistance.
The DOH shall provide medical assistance to victims.
SECTION 41. Counseling and Treatment of Offenders. – The DSWD shall provide rehabilitative
counseling and treatment to perpetrators towards learning constructive ways of coping with anger and
emotional outbursts and reforming their ways. When necessary, the offender shall be ordered by the
Court to submit to psychiatric treatment or confinement.
SECTION 42. Training of Persons Involved in Responding to Violence Against Women and their
Children Cases. – All agencies involved in responding to violence against women and their children
cases shall be required to undergo education and training to acquaint them with:
a. the nature, extend and causes of violence against women and their children;
b. the legal rights of, and remedies available to, victims of violence against women and their children;
c. the services and facilities available to victims or survivors;
d. the legal duties imposed on police officers to make arrest and to offer protection and assistance; and
e. techniques for handling incidents of violence against women and their children that minimize the
likelihood of injury to the officer and promote the safety of the victim or survivor.
The PNP, in coordination with LGU's shall establish an education and training program for police officers
and barangay officials to enable them to properly handle cases of violence against women and their
children.
SECTION 43. Entitled to Leave. – Victims under this Act shall be entitled to take a paid leave of
absence up to ten (10) days in addition to other paid leaves under the Labor Code and Civil Service
Rules and Regulations, extendible when the necessity arises as specified in the protection order.
Any employer who shall prejudice the right of the person under this section shall be penalized in
accordance with the provisions of the Labor Code and Civil Service Rules and Regulations. Likewise, an
employer who shall prejudice any person for assisting a co-employee who is a victim under this Act
shall likewise be liable for discrimination.
SECTION 44. Confidentiality. – All records pertaining to cases of violence against women and their
children including those in the barangay shall be confidential and all public officers and employees and
public or private clinics to hospitals shall respect the right to privacy of the victim. Whoever publishes
or causes to be published, in any format, the name, address, telephone number, school, business
address, employer, or other identifying information of a victim or an immediate family member,
without the latter's consent, shall be liable to the contempt power of the court.
Any person who violates this provision shall suffer the penalty of one (1) year imprisonment and a fine
of not more than Five Hundred Thousand pesos (P500,000.00).
SECTION 45. Funding – The amount necessary to implement the provisions of this Act shall be
included in the annual General Appropriations Act (GAA).
The Gender and Development (GAD) Budget of the mandated agencies and LGU's shall be used to
implement services for victim of violence against women and their children.
SECTION 46. Implementing Rules and Regulations. – Within six (6) months from the approval of this
Act, the DOJ, the NCRFW, the DSWD, the DILG, the DOH, and the PNP, and three (3) representatives
from NGOs to be identified by the NCRFW, shall promulgate the Implementing Rules and Regulations
(IRR) of this Act.
SECTION 47. Suppletory Application – For purposes of this Act, the Revised Penal Code and other
applicable laws, shall have suppletory application.
SECTION 48. Separability Clause. – If any section or provision of this Act is held unconstitutional or
invalid, the other sections or provisions shall not be affected.
SECTION 49. Repealing Clause – All laws, Presidential decrees, executive orders and rules and
regulations, or parts thereof, inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.
SECTION 50. Effectivity – This Act shall take effect fifteen (15) days from the date of its complete
publication in at least two (2) newspapers of general circulation.
Every employee in the Philippines is entitled to leave of absence. There are different types of paid
leaves in the country and they can be quite confusing. Especially for hopeful fresh graduates who just
got their first job.
When I was job hunting, one of the factors I looked into when choosing an employer was the benefits I
am entitled to. It is important that my potential boss values work-life balance. Sure, I can be
workaholic at times, but I still want to be able to enjoy life and spend time with my family. I believe
that taking time off from work every once in a while is healthy.
Different Types of Paid Leaves
Employers granting employees annual leaves and sick leaves are not mandatory under Philippine Law.
But Paternal and Maternal leaves, Service Incentive Leave, and Special Leave for Women, to name a
few, are.
1. Sick Leave (SL)
Employees who can’t report to work due to sickness or disability can apply for sick leave. Employees
can also avail SL if they have family members who are ill and needs taking care of. Usually this is
equivalent to 15 days and can be converted to cash by the end of the year.
Sick leave can be filed on the day the employee returns to work. If an employee exceeds three days or
filed in advance, the filed SL must be accompanied with a medical certificate.
2. Vacation Leave (VL)
As mentioned earlier, employers are not mandated by law to grant vacation leaves to their employees.
So it’s a good thing that workplaces have now understood that we all have lives outside our jobs and
how important family and self time is. Employees can avail vacation leaves for whatever personal
reasons. This is, however, under the condition that the supervisor or manager approves it.
3. Service Incentive Leave (SIL)
The SIL is the alternative option for employers who don’t grant their employees sick or vacation leaves.
By law, companies are required to grant their staff, who have worked for them for a year, SIL
equivalent to five days. These five days can be used either as sick or vacation leave. If not used during
the year, employers can pay it’s money equivalent when the year ends.
4. Maternity Leave (ML)
It takes time to recover from giving birth, plus mothers have to spend some time with their newborn
after. Women who’ve worked in the government sector for at least two years are eligible to avail 60
days of paid maternity leave on top of their vacation and sick leaves.
Female members of SSS who have made three monthly contributions, at least twelve months before
giving birth, are also eligible for maternity leave. Normal delivery allows 60 days of fully paid leave,
while 78 days for caesarian delivery.
5. Paternity Leave
Fathers can also take some time off after their wife has given birth. The law requires employers to give
seven days of paternity leave, with full pay, for male employees. Take note that this can only be
availed for the first four deliveries of the legitimate spouse. It is also non-convertible to cash and non-
cumulative.
6. Parental Leave
It’s hard to take care of children, especially if you’re a single parent. In case you didn’t know, single
parents are eligible for seven days of parental leave. That is, as long as they have rendered at least a
year of service to the company and that they have the sole custody and responsibility of the kids.
Employees must submit a Solo Parent Identification Card or documentation from DSWD to the HR
Department if they wish to avail parental leave.
7. Rehabilitation Leave
Employees who have sustained injury and disability whilst on duty can avail rehabilitation leave.
However, the frequency and duration will be dependent on a medical authority’s recommendation.
The rehabilitation leave should not exceed six months. Also note that any absences of employees
availing this leave are not deducted from their vacation and sick leave credits.
8. Study Leave
Study leave is also offered by employers to qualified staff who are about to take their bar or board
exams. With study leave, employees can get up to six months off work, fully paid, to prepare for their
exams.
Why Paid Leaves Are Important To Know
Getting time off from work every now and then is a good way of reestablishing work-life balance. As an
employee, you deserve a vacation after working so hard for your company. For employers, providing
such benefits to their staff is a good way of keeping them for years to come.
If you are a new HR employee, this article will be helpful to understand the different types of paid
leaves stated above. Give it enough time and you can assist the employees if they have questions
which leaves they’re entitled to.
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. 10606
AN ACT AMENDING REPUBLIC ACT NO. 7875, OTHERWISE KNOWN AS THE "NATIONAL
HEALTH INSURANCE ACT OF 1995″, AS AMENDED, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Section 1 of Republic Act No. 7875, as amended, is hereby amended to read as follows:
"SECTION 1. Short Title. – This Act shall be known as the ‘National Health Insurance Act of 2013′."
Section 2. Section 2 of the same Act is hereby amended to read as follows:
"SEC. 2. Declaration of Principles and Policies. – It is hereby declared the policy of the State to adopt
an integrated and comprehensive approach to health development which shall endeavor to make
essential goods, health and other social services available to all the people at affordable cost and to
provide free medical care to paupers. Towards this end, the State shall provide comprehensive health
care services to all Filipinos through a socialized health insurance program that will prioritize the health
care needs of the underprivileged, sick, elderly, persons with disabilities (PWDs), women and children
and provide free health care services to indigents.
"Pursuant to this policy, the State shall adopt the following principles:
"x x x."
Section 3. Section 4 of the same Act is hereby further amended to read as follows:
"SEC. 4. Definition of Terms. – For the purpose of this Act, the following terms shall be defined as
follows:
"x x x
"(f) Dependent – The legal dependents of a member are:
"x x x
"(4) the parents who are sixty (60) years old or above whose monthly income is below an amount to
be determined by the Corporation in accordance with the guiding principles set forth in Article I of this
Act; and
"(5) parents with permanent disability that render them totally dependent on the member for
subsistence.
"x x x
"(l) Fee-for-service – A fee pre-determined by the Corporation for each service delivered by a health
care provider based on the bill. The payment system shall be based on a pre-negotiated schedule
promulgated by the Corporation.
"x x x
"(q) Indigent – A person who has no visible means of income, or whose income is insufficient for the
subsistence of his family, as identified by the Department of Social Welfare and Development (DSWD)
based on specific criteria set for this purpose in accordance with the guiding principles set forth in
Article I of this Act.
"x x x
"(s) Member – Any person whose premiums have been regularly paid to the National Health Insurance
Program who may be a paying member, a sponsored member, or a lifetime member.
"x x x
"(ff) Retiree – A member of the Program who has reached the age of retirement as provided for by law
or who was retired on account of permanent disability as certified by the employer and the Corporation.
"x x x
"(mm) Abandoned Children – Children who have no known family willing and capable to take care of
them and are under the care of the DSWD, orphanages, churches and other institutions.
"(nn) Case-based Payment – Hospital payment method that reimburses to hospitals a predetermined
fixed rate for each treated case or disease; also called per case payment.
"(oo) Health Technology Assessment – A field of science that investigates the value of a health
technology such as procedure, process, products, or devices, specifically on their quality, relative cost-
effectiveness and safety. It usually involves the science of epidemiology and economics. It has
implications on policy, decision to adopt and invest in these technologies, or in health benefit coverage.
"(pp) Informal Sector – Units engaged in the production of goods and services with the primary
objective of generating employment and income for the persons concerned. It consists of households,
unincorporated enterprises that are market and nonmarket producers of goods, as well as market
producers of services.
"These enterprises are operated by own-account workers, which may employ unpaid family workers as
well as occasional, seasonally hired workers.
"To this sector belong, among others, street hawkers, market vendors, pedicab and tricycle drivers,
small construction workers and home-based industries and services.
"(qq) Other Self-earning Individuals – Individuals who render services or sell goods as a means of
livelihood outside of an employer-employee relationship, or as a career, but do not belong to the
informal sector. These include businessmen, entrepreneurs, actors, actresses and other performers,
news correspondents, professional athletes, coaches, trainers, and other individuals as recognized by
the Department of Labor and Employment (DOLE) and/or the Bureau of Internal Revenue (BIR).
"(rr) Out-patient Services – Health services such as diagnostic consultation, examination, treatment,
surgery and rehabilitation on an out-patient basis.
"(ss) Professional Practitioners – Include doctors, lawyers, certified public accountants, and other
practitioners required to pass government licensure examinations in order to practice their professions.
"(tt) Traditional and Alternative Health Care – The application of traditional knowledge, skills and
practice of alternative health care or healing methods which include reflexology, acupuncture,
massage, accupressure, chiropractics, nutritional therapy and other similar methods in accordance with
the accreditation guidelines set forth by the Corporation and the Food and Drug Administration (FDA).
"(uu) Lifetime Member – A former member who has reached the age of retirement under the law and
has paid at least one hundred twenty (120) monthly premium contributions.
"(vv) Members in the Formal Economy – Workers with formal contracts and fixed terms of employment
including workers in the government and private sector, whose premium contribution payments are
equally shared by the employee and the employer.
"(ww) Members in the Informal Economy – Workers who are not covered by formal contracts or
agreements and whose premium contributions are self-paid or subsidized by another individual through
a defined criteria set by the Corporation.
"(xx) Migrant Workers – Documented or undocumented Filipinos who are engaged in a remunerated
activity in another country of which they are not citizens.
"(yy) Sponsored Member – A member whose contribution is being paid by another individual,
government agency, or private entity according to the rules as may be prescribed by the Corporation."
Section 4. Section 6 of the same Act is hereby amended to read as follows:
"SEC. 6. Mandatory Coverage. – All citizens of the Philippines shall be covered by the National Health
Insurance Program. In accordance with the principles of universality and compulsory coverage
enunciated in Section 2(b) and 2(l) hereof, implementation of the Program shall ensure sustainability of
coverage and continuous enhancement of the quality of service: Provided, That the Program shall be
compulsory in all provinces, cities and municipalities nationwide, notwithstanding the existence of LGU-
based health insurance programs: Provided, further, That the Corporation, Department of Health
(DOH), local government units (LGUs), and other agencies including nongovernmental organizations
(NGOs) and other national government agencies (NGAs) shall ensure that members in such localities
shall have access to quality and cost-effective health care services."
Section 5. Section 7 of the same Act is hereby amended to read as follows:
"SEC. 7. Enrollment. – The Corporation shall enroll beneficiaries in order for them to avail of benefits
under this Act with the assistance of the financial arrangements provided by the Corporation under the
following categories:
"(a) Members in the formal economy;
"(b) Members in the informal economy;
"(c) Indigents;
"(d) Sponsored members; and
"(e) Lifetime members.
"The process of enrollment shall include the identification of beneficiaries, issuance of appropriate
documentation specifying eligibility to benefits, and indicating how membership was obtained or is
being maintained."
Section 6. Section 8 of the same Act is hereby amended to read as follows:
"SEC. 8. Health Insurance Identification (ID) Card and ID Number. – In conjunction with the enrollment
provided above, the Corporation through its local office shall issue a health insurance ID with a
corresponding ID number which shall be used for purposes of identification, eligibility verification, and
utilization recording. The issuance of this ID card shall be accompanied by a clear explanation to the
enrollee of his rights, privileges and obligations as a member. A list of health care providers accredited
by the Local Health Insurance Office shall likewise be provided to the member together with the ID
card.
"The absence of the ID card shall not prejudice the right of any member to avail of benefits or medical
services under the National Health Insurance Program (NHIP).
"This health insurance ID card with a corresponding ID number shall be recognized as a valid
government identification and shall be presented and honored in transactions requiring the verification
of a person’s identity."
Section 7. Section 10 of the same Act is hereby amended to read as follows:
"SEC. 10. Benefit Package. –
"Members and their dependents are entitled to the following minimum services, subject to the
limitations specified in this Act and as may be determined by the Corporation:
"(a) Inpatient hospital care:
"(1) room and board;
"(2) services of health care professionals;
"(3) diagnostic, laboratory, and other medical examination services;
"(4) use of surgical or medical equipment and facilities;
"(5) prescription drugs and biologicals, subject to the limitations stated in Section 37 of this Act; and
"(6) inpatient education packages;
"(b) Outpatient care:
"(1) services of health care professionals;
"(2) diagnostic, laboratory, and other medical examination services;
"(3) personal preventive services; and
"(4) prescription drugs and biologicals, subject to the limitations described in Section 37 of this Act;
"(c) Emergency and transfer services; and
"(d) Such other health care services that the Corporation and the DOH shall determine to be
appropriate and cost-effective.
"These services and packages shall be reviewed annually to determine their financial sustainability and
relevance to health innovations, with the end in view of quality assurance, increased benefits and
reduced out-of-pocket expenditure."
Section 8. Section 11 of the same Act is hereby further amended to read as follows:
"SEC. 11. Excluded Personal Health Services. – The Corporation shall not cover expenses for health
services which the Corporation and the DOH consider cost-ineffective through health technology
assessment.
"The Corporation may institute additional exclusions and limitations as it may deem reasonable in
keeping with its protection objectives and financial sustainability."
Section 9. Section 12 of the same Act is hereby amended to read as follows:
"SEC. 12. Entitlement to Benefits. – A member whose premium contributions for at least three (3)
months have been paid within six (6) months prior to the first day of availment, including those of the
dependents, shall be entitled to the benefits of the Program: Provided, That such member can show
that contributions have been made with sufficient regularity: Provided, further, That the member is not
currently subject to legal penalties as provided for in Section 44 of this Act.
"The following need not pay the monthly contributions to be entitled to the Program’s benefits:
"(a) Retirees and pensioners of the SSS and GSIS prior to the effectivity of this Act; and
"(b) Lifetime members."
Section 10. Section 16 of the same Act is hereby amended to read as follows:
"SEC. 16. Powers and Functions. – The Corporation shall have the following powers and functions:
"x x x
"(c) To supervise the provision of health benefits and to set standards, rules, and regulations necessary
to ensure quality of care, appropriate utilization of services, fund viability, member satisfaction, and
overall accomplishment of Program objectives;
"x x x
"(j) To negotiate and enter into contracts with health care institutions, professionals, and other
persons, juridical or natural, regarding the pricing, payment mechanisms, design and implementation
of administrative and operating systems and procedures, financing, and delivery of health services in
behalf of its members;
"x x x
"(m) To visit, enter and inspect facilities of health care providers and employers during office hours,
unless there is reason to believe that inspection has to be done beyond office hours, and where
applicable, secure copies of their medical, financial, and other records and data pertinent to the claims,
accreditation, premium contribution, and that of their patients or employees, who are members of the
Program;
"x x x
"(p) To keep records of the operations of the Corporation and investments of the National Health
Insurance Fund;
"(q) To establish and maintain an electronic database of all its members and ensure its security to
facilitate efficient and effective services;
"(r) To invest in the acceleration of the Corporation’s information technology systems;
"(s) To conduct an information campaign on the principles of the NHIP to the public and to accredited
health care providers. This campaign must include the current benefit packages provided by the
Corporation, the mechanisms to avail of the current benefit packages, the list of accredited and
disaccredited health care providers, arid the list of offices/branches where members can pay or check
the status of paid health premiums;
"(t) To conduct post-audit on the quality of services rendered by health care providers;
"(u) To establish an office, or where it is not feasible, designate a focal person in every Philippine
Consular Office in all countries where there are Filipino citizens. The office or the focal person shall,
among others, process, review and pay the claims of the overseas Filipino workers (OFWs);
"(v) Notwithstanding the provisions of any law to the contrary, to impose interest and/or surcharges of
not exceeding three percent (3%) per month, as may be fixed by the Corporation, in case of any delay
in the remittance of contributions which are due within the prescribed period by an employer, whether
public or private. Notwithstanding the provisions of any law to the contrary, the Corporation may also
compromise, waive or release, in whole or in part, such interest or surcharges imposed upon employers
regardless of the amount involved under such valid terms and conditions it may prescribe;
"(w) To endeavor to support the use of technology in the delivery of health care services especially in
farflung areas such as, but not limited to, telemedicine, electronic health record, and the establishment
of a comprehensive health database;
"(x) To monitor compliance by the regulatory agencies with the requirements of this Act and to carry
out necessary actions to enforce compliance;
"(y) To mandate the national agencies and LGUs to require proof of PhilHealth membership before
doing business with a private individual or group;
"(z) To accredit independent pharmacies and retail drug outlets; and
"(aa) To perform such other acts as it may deem appropriate for the attainment of the objectives of the
Corporation and for the proper enforcement of the provisions of this Act."
Section 11. Section 17 of the same Act, is hereby amended to read as follows:
"SEC. 17. Quasi-Judicial Powers. – The Corporation, to carry out its tasks more effectively, shall be
vested with the following powers:
"(a) Subject to the respondent’s right to due process, to conduct investigations for the determination of
a question, controversy, complaint, or unresolved grievance brought to its attention, and render
decisions, orders, or resolutions thereon. It shall proceed to hear and determine the case even in the
absence of any party who has been properly served with notice to appear. It shall conduct its
proceedings or any part thereof in public or in executive session; adjourn its hearings to any time and
place; refer technical matters or accounts to an expert and to accept his reports as evidence; direct
parties to be joined in or excluded from the proceedings; and give all such directions as it may deem
necessary or expedient in the determination of the dispute before it;
"x x x
"(c) Subject to the respondent’s right to due process, to suspend temporarily, revoke permanently, or
restore the accreditation of a health care provider or the right to benefits of a member and/or impose
fines. The decision shall immediately be executory, even pending appeal, when the public interest so
requires and as may be provided for in the implementing rules and regulations. Suspension of
accreditation shall not exceed six (6) months. Suspension of the rights of members shall not exceed six
(6) months.
"The revocation of a health care provider’s accreditation shall operate to disqualify him from obtaining
another accreditation in his own name, under a different name, or through another person, whether
natural or juridical.
"The Corporation shall not be bound by the technical rules of evidence."
Section 12. Section 18 of the same Act is hereby further amended to read as follows:
"SEC. 18. The Board of Directors. –
"(a) Composition. – The Corporation shall be governed by a Board of Directors hereinafter referred to
as the Board, composed of the following members:
"The Secretary of Health;
"The Secretary of Labor and Employment or a permanent representative;
"The Secretary of the Interior and Local Government or a permanent representative;
"The Secretary of Social Welfare and Development or a permanent representative;
"The Secretary of the Department of Finance (DOF) or a permanent representative;
"The President and Chief Executive Officer (CEO) of the Corporation;
"The SSS Administrator or a permanent representative;
"The GSIS General Manager or a permanent representative;
"The Vice Chairperson for the basic sector of the National Anti-Poverty Commission or a permanent
representative;
"The Chairperson of the Civil Service Commission (CSC) or a permanent representative;
"A permanent representative of Filipino migrant workers;
"A permanent representative of the members in the informal economy;
"A permanent representative of the members in the formal economy;
"A representative of employers;
"A representative of health care providers to be endorsed by their national associations of health care
institutions and medical health professionals;
"A permanent representative of the elected local chief executives to be endorsed by the League of
Provinces, League of Cities and League of Municipalities; and
"An independent director to be appointed by the Monetary Board.
"The Secretary of Health shall be the ex officio Chairperson while the President and CEO of the
Corporation shall be the Vice Chairperson of the Board.
"(b) Appointment and Tenure. – Except for ex officio members, the other members of the Board shall
be appointed by the President of the Philippines in accordance with the provisions of Republic Act No.
10149, otherwise known as the ‘GOCC Governance Act of 2011′: Provided, That sectoral board
members shall be appointed by the President of the Philippines upon the recommendation of the
Chairperson and after due consultations with the sectors concerned.
"The term of office of the appointive members of the Board shall be in accordance with Republic Act No.
10149.
"x x x."
Section 13. Section 19 of the same Act is hereby amended to read as follows:
"SEC. 19. The President of the Corporation. –
"(a) Appointment and Tenure. – The President of the Philippines shall appoint the President and CEO of
the Corporation, hereinafter referred to as the President, upon the recommendation of the Board. The
President shall have a tenure of one (1) year in accordance with the provisions of Republic Act No.
10149.
"x x x."
Section 14. Section 20 of the same Act is hereby amended to read as follows:
"SEC. 20. Health Finance Policy Research. – Among the staff departments that will be established by
the Corporation shall be the Health Finance Policy Research Department, which shall have the following
duties and functions:
"x x x
"(f) submission for consideration of program of quality assurance, utilization review, and technology
assessment;
"(g) submission of recommendations on policy and operational issues that will help the Corporation
meet the objectives of this Act; and
"(h) conduct of client-satisfaction surveys and research in order to assess outcomes of service rendered
by health care providers."
Section 15. Section 24 of the same Act is hereby amended to read as follows:
"SEC. 24. Creation of the National Health Insurance Fund. – There is hereby created a National Health
Insurance Fund, hereinafter referred to as the Fund, that shall consist of:
"(a) Contribution from Program members;
"(b) Other appropriations earmarked by the national and local governments purposely for the
implementation of the Program;
"(c) Subsequent appropriations provided for under Sections 46 and 47 of this Act;
"(d) Donations and grants-in-aid; and
"(e) All accruals thereof."
Section 16. Section 26 of the same Act is hereby amended to read as follows:
"SEC. 26. Financial Management. – The use, disposition, investment, disbursement, administration and
management of the National Health Insurance Fund, including any subsidy, grant or donation received
for program operations shall be governed by applicable laws and in the absence thereof, existing
resolutions of the Board of Directors of the Corporation, subject to the following limitations:
"(a) All funds under the management and control of the Corporation shall be subject to all rules and
regulations applicable to public funds.
"(b) The Corporation is authorized to charge to the various funds under its control the costs of
administering the Program. Such costs may include administration, monitoring, marketing and
promotion, research and development, audit and evaluation, information services, and other necessary
activities for the effective management of the Program. The total annual costs for these shall not
exceed the sum total of the following:
"(1) Four percent (4%) of the total premium contributions collected during the immediately preceding
year;
"(2) Four percent (4%) of the total reimbursements or total cost of health services paid by the
Corporation in the immediately preceding year; and
"(3) Five percent (5%) of the investment earnings generated during the immediately preceding year.
"The period for implementation of the cost ceiling provided under this section shall not be later than
five (5) years from the effectivity of this Act during which period, the total annual cost shall not exceed
the sum total of the following:
"(i) Five percent (5%) of the total contributions;
"(ii) Five percent (5%) of the total reimbursements; and
"(iii) Five percent (5%) of the investment earnings generated during the immediately preceding year."
Section 17. Section 27 of the same Act is hereby amended to read as follows:
"SEC. 27. Reserve Fund. – The Corporation shall set aside a portion of its accumulated revenues not
needed to meet the cost of the current year’s expenditures as reserve funds: Provided, That the total
amount of reserves shall not exceed a ceiling equivalent to the amount actuarially estimated for two
(2) years’ projected Program expenditures: Provided, further, That whenever actual reserves exceed
the required ceiling at the end of the Corporation’s fiscal year, the excess of the Corporation’s reserve
fund shall be used to increase the Program’s benefits, decrease the member’s contributions, and
augment the health facilities enhancement program of the DOH.
"The remaining portion of the reserve fund that are not needed to meet the current expenditure
obligations or used for the abovementioned programs shall be placed in investments to earn an
average annual income at prevailing rates of interest and shall be known as the ‘Investment Reserve
Fund’ which shall be invested in any or all of the following:
"(a) In interest-bearing bonds, securities or other evidences of indebtedness of the Government of the
Philippines, or in bonds, securities, promissory notes and other evidences of indebtedness to which full
faith and credit and unconditional guarantee of the Republic of the Philippines is pledged;
"(b) In debt securities and corporate bonds issuances: Provided, That such securities and bonds are
rated triple ‘A’ by authorized accredited domestic rating agencies: Provided, further, That the issuing or
assuming entity or its predecessor shall not have defaulted in the payment of interest on any of its
securities and that during each of any three (3) including last two (2) of the five (5) fiscal years next
preceding the date of acquisition by the Corporation of such bonds, securities or other evidences of
indebtedness, the net earnings of the issuing or assuming institution available for its recurring
expenses, such as amortization of debt discount and rentals for leased properties, including interest on
funded and unfunded debt, shall have been not less than one and one quarter (1 ¼) times the total of
the recurring expenses for such year: Provided, further, That such investment shall not exceed fifteen
percent (15%) of the investment reserve fund;
"(c) In interest-bearing deposits and loans to or securities in any domestic bank doing business in the
Philippines: Provided, That in the case of such deposits, this 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;
"(d) In preferred stocks of any solvent corporation or institution created or existing under the laws of
the Philippines: Provided, That the issuing, assuming, or guaranteeing entity or its predecessor has
paid regular dividends upon its preferred or guaranteed stocks for a period of at least three (3) years
immediately preceding the date of investment in such preferred or guaranteed stocks: Provided,
further, That if the stocks are guaranteed the amount of stocks so guaranteed is not in excess of fifty
percent (50%) of the amount of the preferred common stocks as the case may be of the issuing
corporation: Provided, furthermore, That if the corporation or institution has not paid dividends upon its
preferred stocks, the corporation or institution has sufficient retained earnings to declare dividends for
at least two (2) years on such preferred stocks and in common stocks of any solvent corporation or
institution created or existing under the laws of the Philippines in the stock exchange with proven track
record of profitability and payment of dividends over the last three (3) years; and
"(e) In bonds, securities, promissory notes or other evidences of indebtedness of accredited and
financially sound medical institutions exclusively to finance the construction, improvement and
maintenance of hospitals and other medical facilities: Provided, That such securities and instruments
are backed up by the guarantee of the Republic of the Philippines or the issuing medical institution and
the issued securities and bonds are both rated triple ‘A’ by authorized accredited domestic rating
agencies: Provided, further, That said investments shall not exceed ten percent (10%) of the total
investment reserve fund.
"As part of its investments operations, the Corporation may hire institutions with valid trust licenses as
its external local fund managers to manage the investment reserve fund, as it may deem appropriate,
through public bidding. The fund managers shall submit annual reports on investment performance to
the Corporation.
"The Corporation shall set up the following funds:
"(1) A fund to secure benefit payouts to members prior to their becoming lifetime members;
"(2) A fund to secure payouts to lifetime members; and
"(3) A fund for any optional supplemental benefits that are subject to additional contributions.
"A portion of each of the above funds shall be identified as current and kept in liquid instruments. In no
case shall said portion be considered part of invested assets.
"Another portion of the said funds shall be allocated for lifetime members within six (6) months after
the effectivity of this Act. Said amount shall be determined by an actuary or pre-calculated based on
the most recent valuation of liabilities.
"The Corporation shall allocate a portion of all contributions to the fund for lifetime members based on
an allocation to be determined by the PHIC actuary based on a pre-determined percentage using the
current average age of members and the current life expectancy and morbidity curve of Filipinos.
"The Corporation shall manage the supplemental benefits and the lifetime members’ fund in an
actuarially sound manner.
"The Corporation shall manage the supplemental benefits fund to the minimum required to ensure that
the supplemental benefit payments are secure."
Section 18. Section 28 of the same Act is hereby amended to read as follows:
"SEC. 28. Contributions. – All members who can afford to pay shall contribute to the Fund, in
accordance with a reasonable, equitable and progressive contribution schedule to be determined by the
Corporation on the basis of applicable actuarial studies and in accordance with the following guidelines:
"(a) Members in the formal economy and their employers shall continue paying the same monthly
contributions as provided for by law until such time that the Corporation shall have determined a new
contribution schedule: Provided, That their monthly contributions shall not exceed five percent (5%) of
their respective monthly salaries.
"It shall be mandatory for all government agencies to include the payment of premium contribution in
their respective annual appropriations: Provided, further, That any increase in the premium
contribution of the national government as employer shall only become effective upon inclusion of said
amount in the annual General Appropriations Act.
"(b) Contributions from members in the informal economy shall be based primarily on household
earnings and assets. Those from the lowest income segment who do not qualify for full subsidy under
the means test rule of the DSWD shall be entirely subsidized by the LGUs or through cost sharing
mechanisms between/among LGUs and/or legislative sponsors and/or other sponsors and/or the
member, including the national government: Provided, That the identification of beneficiaries who shall
receive subsidy from LGUs shall be based on a list to be provided by the DSWD through the same
means test rule or any other appropriate statistical method that may be adopted for said purpose.
"(c) Contributions made in behalf of indigent members shall not exceed the minimum contributions for
employed members.
"(d) The required number of monthly premium contributions to qualify as a lifetime member may be
increased by the Corporation to sustain the financial viability of the Program: Provided, That the
increase shall be based on actuarial estimate and study."
Section 19. Section 29 of the same Act is hereby further amended to read as follows:
"SEC. 29. Payment for Indigent Contributions. – Premium contributions for indigent members as
identified by the DSWD through a means test or any other appropriate statistical method shall be fully
subsidized by the national government. The amount necessary shall be included in the appropriations
for the DOH under the annual General Appropriations Act."
Section 20. A new Section 29-A shall be added to read as follows:
"SEC. 29-A. Payment for Sponsored Members’ Contributions. –
"(a) The premium contributions of orphans, abandoned and abused minors, out-of-school youths,
street children, PWDs, senior citizens and battered women under the care of the DSWD, or any of its
accredited institutions run by NGOs or any nonprofit private organizations, shall be paid by the DSWD
and the funds necessary for their inclusion in the Program shall be included in the annual budget of the
DSWD.
"(b) The needed premium contributions of all barangay health workers, nutrition scholars and other
barangay workers and volunteers shall be fully borne by the LGUs concerned.
"(c) The annual premium contributions of househelpers shall be fully paid by their employers, in
accordance with the provisions of Republic Act No. 10361 or the ‘Kasambahay Law’."
Section 21. A new Section 29-B shall be added to read as follows:
"SEC. 29-B. Coverage of Women About to Give Birth. – The annual required premium for the coverage
of unenrolled women who are about to give birth shall be fully borne by the national government
and/or LGUs and/or legislative sponsor which shall be determined through the means testing protocol
recognized by the DSWD."
Section 22. Section 32 of the same Act is hereby further amended to read as follows:
"SEC. 32. Accreditation Eligibility. – All health care providers, as enumerated in Section 4(o) hereof and
operating for at least three (3) years may apply for accreditation: Provided, That a health care provider
which has not operated for at least three (3) years may likewise apply and qualify for accreditation if it
complies with all the other accreditation requirements of and further meets any of the following
conditions:
"(a) Its managing health care professional has had a working experience in another accredited health
care institution for at least three (3) years;
"(b) It operates as a tertiary facility or its equivalent;
"(c) It operates in a LGU where the accredited health care provider cannot adequately or fully service
its population; and
"(d) Other conditions as may be determined by the Corporation.
"A health care provider found guilty of any violation of this Act shall not be eligible to apply for the
renewal of accreditation."
Section 23. Section 34 of the same Act is hereby amended to read as follows:
"SEC. 34. Provider Payment Mechanisms. – The following mechanisms for public and private providers
shall he allowed in the Program:
"(a) Fee-for-service payments – payments made by the Corporation for professional fees or hospital
charges, or both, based on arrangements with health care providers. This fee shall be based on a
schedule to be established by the Board which shall be reviewed periodically but hot less than every
three (3) years;
"(b) Capitation of health care professionals and facilities, or networks of the same including HMOs,
medical cooperatives, and other legally formed health service groups;
"(c) Case-based payment;
"(d) Global budget; and
"(e) Such other provider payment mechanisms that may be determined and adopted by the
Corporation.
"Subject to the approval of the Board, the Corporation may adopt other payment mechanism that are
most beneficial to the members and the Corporation.
"Each PhilHealth local office shall recommend the appropriate payment mechanism within its
jurisdiction for approval by the Corporation. Special consideration shall be given to payment for
services rendered by public and private health care providers serving remote or medically underserved
areas."
Section 24. A new Section 34-A shall be added to read as follows:
"SEC. 34-A. Other Provider Payment Guidelines. – No other fee or expense shall be charged to the
indigent patient, subject to the guidelines issued by the Corporation.
"All payments for professional services rendered by salaried public providers shall be allowed to be
retained by the health facility in which services are rendered and be pooled and distributed among
health personnel. Charges paid to public facilities shall be retained by the individual facility in which
services were rendered and for which payment was made. Such revenues shall be used to primarily
defray operating costs other than salaries, to maintain or upgrade equipment, plant or facility, and to
maintain or improve the quality of service in the public sector."
Section 25. Section 35 of the same Act is hereby deleted and replaced with a new section to read as
follows:
"SEC. 35. Reimbursement and Period to File Claims. – All claims for reimbursement or payment for
services rendered shall be filed within a period of sixty (60) calendar days from the date of discharge of
the patient from the health care provider.
"The period to file the claim may be extended for such reasonable causes determined by the
Corporation."
Section 26. Section 36 of the same Act is hereby deleted and replaced with a new section to read as
follows:
"SEC. 36. Role of Local Government Units (LGUs). – Consistent with the mandates for each political
subdivision under Republic Act No. 7160 or ‘The Local Government Code of 1991′, LGUs shall provide
basic health care services.
"To augment their funds, LGUs shall invest the capitation payments given to them by the Corporation
on health infrastructures or equipment, professional fees, drugs and supplies, or information
technology and database: Provided, That basic health care services, as defined by the DOH and the
Corporation, shall be ensured especially with the end in view of improving maternal, infant and child
health:
Provided, further, That the capitation payments shall be segregated and placed into a special trust fund
created by LGUs and be accessed for the use of such mandated purpose."
Section 27. Section 41 of the same Act is hereby amended to read as follows:
"SEC. 41. Grievance and Appeal Procedures. – A member, a dependent, or a health care provider may
file a complaint for grievance based on any of the above grounds, in accordance with the following
procedures:
"(a) A complaint for grievance must be filed with the Corporation which shall refer such complaint to
the Grievance and Appeal Review Committee. The Grievance and Appeal Review Committee shall rule
on the complaint through a notice of resolution within sixty (60) calendar days from receipt thereof.
"(b) Appeals from the decision of the Grievance and Appeal Review Committee must be filed with the
Board within thirty (30) calendar days from receipt of the notice of resolution.
"x x x."
Section 28. Section 42 of the same Act is hereby amended to read as follows:
"SEC. 42. Grievance and Appeal Review Committee. – The Board shall create a Grievance and Appeal
Review Committee, composed of five (5) members, hereinafter referred to as the Committee, which,
subject to the procedures enumerated above, shall receive and recommend appropriate action on
complaints from members and health care providers relative to this Act and its implementing rules and
regulations.
"The Committee shall have as one of its members a representative of any of the accredited health care
providers as endorsed by the DOH."
Section 29. Section 44 of the same Act is hereby further amended to read as follows:
"SEC. 44. Penal Provisions. – Any violation of the provisions of this Act, after due notice and hearing,
shall suffer the following penalties:
"(a) Violation by an Accredited Health Care Provider – Any accredited health care provider who
commits a violation, abuse, unethical practice or fraudulent act which tends to undermine or defeat the
objectives of the Program shall be punished with a fine of not less than Fifty thousand pesos
(P50,000.00) but not more than One hundred thousand pesos (P100,000.00) or suspension of
accreditation from three (3) months to the whole term of accreditation, or both, at the discretion of the
Corporation: Provided, That recidivists may no longer be accredited as a participant of the Program;
"(b) Violations of a Member – Any member who commits any violation of this Act independently or in
connivance with the health care provider for purposes of wrongfully claiming NHIP benefits or
entitlement shall be punished with a fine of not less than Five thousand pesos (P5,000.00) or
suspension from availment of NHIP benefits for not less than three (3) months but not more than six
(6) months, or both, at the discretion of the Corporation.
"(c) Violations of an Employer –
"(1) Failure/Refusal to Register/Deduct/Remit the Contributions – Any employer who fails or refuses to
register employees, regardless of their employment status, or to deduct contributions from the
employee’s compensation or remit the same to the Corporation shall be punished with a fine of not less
than Five thousand pesos (P5,000.00) multiplied by the total number of employees of the firm.
"Any employer or any officer authorized to collect contributions under this Act who, after collecting or
deducting the monthly contributions from his employee’s compensation, fails to remit the said
contributions to the Corporation within thirty (30) days from the date they become due shall be
presumed to have misappropriated such contributions.
"(2) Unlawful Deductions – Any employer or officer who shall deduct directly or indirectly from the
compensation of the covered employees or otherwise recover from them his own contribution on behalf
of such employees shall be punished with a fine of Five thousand pesos (P5,000.00) multiplied by the
total number of affected employees.
"If the act or omission penalized by this Act be committed by an association, partnership, corporation
or any other institution, its managing directors or partners or president or general manager, or other
persons responsible for the commission of the said act shall be liable for the penalties provided for in
this Act.
"(3) Misappropriation of Funds by Employees of the Corporation – Any employee of the Corporation
who receives or keeps funds or property belonging, payable or deliverable to the Corporation, 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, shall
likewise be liable for misappropriation of funds or property and shall be punished with a fine not less
than Ten thousand pesos (P10,000.00) nor more than Twenty thousand pesos (P20,000.00). Any
shortage of the funds or loss of the property upon audit shall be deemed prima facie evidence of the
offense.
"(d) Other Violations – Other violations of the provisions of this Act or of the rules and regulations
promulgated by the Corporation shall be punished with a fine of not less than Five thousand pesos
(P5,000.00) but not more than Twenty thousand pesos (P20,000.00).
"All other violations involving funds of the Corporation shall be governed by the applicable provisions of
the Revised Penal Code or other laws, taking into consideration the rules on collection, remittances,
and investment of funds as may be promulgated by the Corporation.
"The Corporation may enumerate circumstances that will mitigate or aggravate the liability of the
offender or erring health care provider, member or employer.
"Despite the cessation of operation by a health care provider or termination of practice of an
independent health care professional while the complaint is being heard, the proceeding against them
shall continue until the resolution of the case.1avvphi1
"The dispositive part of the decision requiring payment of fines, reimbursement of paid claim or denial
of payment shall be immediately executory."
Section 30. A new Section 56 is hereby added to read as follows and the numbering of the succeeding
sections are adjusted accordingly:
"SEC. 56. Requisites for Issuance or Renewal of License or Permits. – Notwithstanding any law to the
contrary, all government agencies issuing professional or business license or permit, shall require all
applicants to submit certificate or proof of payment of PhilHealth premium contributions, prior to the
issuance or renewal of such license or permit."
Section 31. Section 54 of the same Act is hereby further amended to read as follows:
"SEC. 54. Oversight Provision. – There is hereby created a Joint Congressional Oversight Committee to
conduct a regular review of the NHIP which shall entail a systematic evaluation of the Program’s
performance, impact or accomplishments with respect to its objectives or goals. The Oversight
Committee shall be composed of five (5) members from the Senate and five (5) members from the
House of Representatives to be appointed by the Senate President and the Speaker of the House of
Representatives, respectively. The Oversight Committee shall be jointly chaired by the Chairpersons of
the Senate Committee on Health and Demography and the House of Representatives Committee on
Health.
"The National Economic and Development Authority, in coordination with the National Statistics Office
and the National Institutes of Health of the University of the Philippines shall undertake studies to
validate the accomplishments of the Program. Such validation studies shall include an assessment of
the enrollees’ satisfaction of the benefit package and services provided by the Corporation. These
validation studies, as well as an annual report, on the performance of the Corporation shall be
submitted to the Congressional Oversight Committee.
The Corporation shall annually transfer 0.001% of its income in the previous year for the purpose of
conducting these studies.
Section 32. Section 49 of the same Act is hereby amended to read as follows:
"SEC. 49. Implementing Rules and Regulations. – Within sixty (60) days from the effectivity of this Act,
the Corporation, in coordination with the DOH, shall issue the necessary rules and regulations for its
effective implementation."
Section 33. Separability Clause. – If any part or provision of this Act shall be held unconstitutional or
invalid, other provisions which are not affected thereby shall continue to be in full force and effect.
Section 34. Repealing Clause. – All laws, issuances or parts thereof inconsistent with this Act are
hereby repealed or modified accordingly.
Section 35. Effectivity. – This Act shah sake effect fifteen (15) days after its publication in the Official
Gazette or in at least two (2) newspapers of general circulation.
Approved,