SSS Act of 2018 (RA 11199)

Policy

1. SSS was created by the State to provide tax-exempt social insurance against
hazards of death, old age, disability, etc. Different from ECC because the
contingencies are not qualified and need not be work-related at all.
2. SSS Law is in accord with constitutional provision of “promotion of social
justice to insure the well-being and economic security of all the people.”

Composition

1. SSS is the implementing arm of the SSS Act.

2. The corporate body is directed and controlled by the Social Security
Commission (9):
a. Secretary of Finance – ex officio chair
b. SSS President – vice-chair
c. Secretary of Labor – ex officio member
d. 6 appointive members:
i. 3 from workers’ sector, 1 of which is a woman
ii. 3 from employers’ sector, 1 of which is a woman

Jurisdiction

1. Commission has jurisdiction over disputes arising under the SSS Act
regarding coverage, benefits, collection, contributions, and penalties.
2. Commission has no authority to condone penalties for late payment, but may
adjudicate over claim for damages.
3. Appeal lies with the CA under Rule 43, within 15 days from notice of
judgment.
General Provisions

1. Benefits are non-transferrable by the person entitled to collect benefits.

2. Agents, attorneys (in fact), or other persons CANNOT demand fees for
services, or retain a portion of any benefit, in preparing, filing, or pursuing
any claim of a member.
a. Bar members who appear as counsel in any case heard by the
Commission is entitled to attorney’s fees NOT exceeding 10% of
benefits awarded, payable only upon actual payment of such benefits.
b. Any stipulation contrary to any of the foregoing is VOID.
3. Benefits under the SSS Law are guaranteed by the State, who insures the
solvency of the SSS.
4. SSS and all its properties, including funds held in trust by it, are exempted
from taxes, writs, and liens.
a. Provident fund of SSS is not for revenue, but for general welfare.
5. Late payment of monthly contributions has NO retroactive effect, except in
case of self-employed members, whose quarterly contributions are effective
retroactively for such covered months.

Coverage

Compulsory Coverage

1. All employees, including kasambahays or domestic workers, not over 60

years of age;
 NOTE: An employee is one under an employer-employee relationship with
an employer which is NOT the government, or any of its political
subdivisions, branches, or instrumentalities, or GOCCs with original charter
(Sec. 8)
2. Self-employed persons, including, but not limited to:
a. All self-employed professionals;
b. Partners and single proprietors of businesses;
c. Actors and actresses, directors, scriptwriters, and news correspondents
NOT FALLING within the definition of an “employee;”
d. Professional athletes, coaches, trainers, and jockeys; and
e. Individual farmers and fishermen
NOTE: A self-employed person is both the employer and the employee (id);
all provisions of the Act applicable to employees shall also be applicable to
self-employed persons unless otherwise provided (Sec. 9-A).
3. All sea-based and land-based OFWs as defined under RA 10022, provided
they are not over 60 years of age.
NOTE: Notwithstanding this definition, permanent migrants and permanent
residents are apparently EXCLUDED (Sec. 9-B(g)).
a. In case of sea-based OFWs:
i. Manning agencies are agents of their principals and are
considered as employers of sea-based OFWs.
ii. Manning agencies are SOLIDARILY LIABLE with their
principals with respect to civil liabilities incurred for any
violation of the Act.
iii. Persons having direct control, management, or direction of such
agencies shall be held criminally liable for any act or omission
penalized under the Act.
 b. In case of land-based OFWs:
i. Considered as self-employed persons, but;
ii. The DFA, DOLE, etc. are mandated to negotiate with host
countries to ensure that the employers of land-based OFWs pay
the required contributions; in which case, such land-based
OFWs shall no longer be considered as self-employed persons.

Voluntary Coverage

1. Spouses who devote full time to managing the household and family affairs;
2. OFWs who, after termination of overseas employment, continue to pay
contributions;
3. Permanent Filipino migrants, Filipino immigrants, permanent residents, and
naturalized citizens of their host countries.

Benefits

1. Retirement benefit (monthly pension);

2. Death benefit (monthly pension);
3. Permanent disability benefit (monthly pension);
4. Funeral benefit (lump-sum);
5. Sickness benefit (90% average delay salary credit);
6. Maternity leave benefit (100% daily average salary credit);
7. Involuntary separation benefit (50% average monthly salary credit).

Pension
 1. Applicable only in cases of retirement, death, or permanent disability
benefits.
2. In case of retirement or permanent disability, it is the member himself who
will receive it.
3. For death benefits, or where the member dies while receiving retirement or
permanent disability benefits, the primary beneficiaries will receive it:
a. Dependent spouse until he or she remarries; and
b. Dependent legitimate, legitimated, or legally adopted, and illegitimate
children.
4. In case of absence, it will be the secondary beneficiaries who will receive it:
a. Dependent parents; or
b. Any other person designated by the member as secondary beneficiary.

Dependent’s Pension

1. Applicable only to pensioners, i.e. retirement, death, or permanent disability

dependent pensioners.
2. 10% of the monthly pension or P250, whichever is higher
3. Dependents are as follows:
a. Legal spouse entitled by law to receive support from the member;
b. The legitimate, legitimated, legally adopted, and illegitimate child
who:
i. Is unmarried; and
ii. Has not reached 21 years of age;
iii. Or if over 21, he is congenitally incapacitated or while still a
minor has been permanently incapacitated and incapable of
self-support;
 iv. The parent who is receiving regular support from the member.
4. Notwithstanding the foregoing, it appears the SSS law only gives
dependent’s pension to children.
5. Each child conceived on or before date of contingency
a. Not exceeding 5 children;
b. Beginning with the youngest;
c. No substitution;
d. Where there are legitimate and illegitimate children, the former shall
be preferred.
6.

Retirement Benefit

1. Pensioner – gets monthly pension as long as he lives:

a. Member has paid at least 120 monthly contributions; AND
i. Has reached age 60 and separated from employment/no longer
self-employed; or
ii. Has reached age 65
2. Non-pensioner – gets a lump sum benefit equivalent to his total
contributions:
a. Member who is 60 years old at retirement, who does not qualify
above, provided he is separated from employment and does not
continue contributions voluntarily.
3. Pension is suspended when he is re-employed or resumes self-employment.
4. If he dies, primary beneficiaries will receive his pension.
5. If he has no primary beneficiaries, and he dies within 60 months from the
start of his pension, secondary beneficiaries will receive lump sum.
Death Benefit

1. If made at least 36 monthly contributions prior to semester of death, primary

beneficiaries (or if none, the secondary beneficiaries) are entitled to monthly
pension.
2. If less than 36 monthly contributions, entitled to monthly pension x number
of contributions made, or 12x monthly pension, whichever is higher.

Permanent Disability Benefits

1. Permanent total disability:

a. Does not mean a state of absolute helplessness. It means disablement
to do the same or similar kind of work that the member was trained
for and accustomed to perform.
b. If made at least 36 months contribution prior to semester of disability,
entitled to monthly pension.
c. If less than 36 monthly contributions, entitled to monthly pension x
number of contributions made, or 12x monthly pension, whichever is
higher.
d. The following are total disabilities:
i. Complete loss of sight of both eyes;
ii. Loss of 2 limbs at or above the ankle or wrists;
iii. Permanent complete paralysis of 2 limbs;
iv. Brain injury resulting in incurable imbecility or insanity; and
v. Such cases as determined and approved by the SSS.
2. Permanent partial disability:
a. Only entitled if made at least 36 monthly contributions prior to
semester of disability.
 b. Number of months in which monthly pension is payable depends on
what member/body part was lost. E.g. 1 arm = 50 months.
c. If entitlement is for less than 12 months, benefit shall be given in
lump sum. E.g. 1 thumb = 10 months.
3. If he dies, his primary beneficiaries as of date of TOTAL disability will
receive monthly pension.
4. If he has no primary beneficiaries, and he dies within 60 months from the
start of his pension, secondary beneficiaries will receive lump sum.
5. For purpose of computing benefits regarding retirement, death, and
permanent total disability pension benefits, months during which he receives
partial disability benefits are deemed covered.
6. If he dies or retires, the PARTIAL disability pension ceases.

Funeral Benefit

1. P12,000 paid in cash or kind to help defray costs of funeral expenses upon
death of a member.

Sickness Benefit

1. It is not payment or reimbursement for hospitalization, medical treatment, or

medicine. It is a daily cash allowance to help carry through the employee
and his family during his confinement. It is stipend for when the employee is
not receiving his wage or salary.
2. Available when:
a. He has paid at least 3 monthly contributions in the 12-month period
immediately preceding the semester of sickness;
b. Confined for more than 3 days in a hospital or elsewhere with the
approval of the SSS; and
 c. Exhausted company sick leave with pay, if any.
3. Cannot be paid longer than 120 days in one calendar year. Cannot be paid
for more than 240 days on account of the same confinement. Unused portion
of the 120 cannot be carried over to the subsequent year.
4. Process of availment:
a. Must notify employer of sickness within 5 calendar days after start of
confinement. If not notified within such days, confinement deemed to
have started not earlier than the 5th day immediately preceding date of
notification.
b. If unemployed or self-employed, must notify SSS.
c. Notice not necessary if employee confined is in hospital or if
employer became sick or injured while working or within premises of
employer.

Maternity Leave Benefit

See discussion under the Expanded Maternity Leave Act.

Involuntary Separation Benefits or Unemployment Insurance

1. If a member gets fired, laid off, or otherwise involuntarily separated from his
employment, he shall get monthly cash payments equivalent to 50% of his
average monthly salary credit for a MAXIMUM of 2 months.
2. Conditions:
a. Not over 60 years old;
b. Has paid at least 36 monthly contributions, 12 months of which
should be in the 18-month period immediately preceding the
separation;
c. Can only claim benefits once every 3 years; and
 d. If there is any other contingency, only the higher shall be paid.

GSIS Act of 1997 (P.D. No. 1146, as amended by R.A. No. 8291)

Policy

The State, for the general welfare, provides social insurance to those in
government service.

Composition

1. The Government Service Insurance System, implementing arm of the GSIS

Act, is directed and controlled by the Board of Trustees (8):
a. GSIS President
b. 7 other members, appointed by RP President, 3 of whom representing
leading associations of government employees.
2. The members select who shall be the chair and vice-chair.
3. Chairman of COA is ex-officio auditor of GSIS.

Jurisdiction

1. Exclusive and original jurisdiction to settle any dispute arising under this
Act is with the System.
2. Board of Trustees may designate a member or officer of GSIS to hear
disputes.
3. Appeal lies with CA under Rule 43.

Coverage

Compulsory Membership
 1. All government personnel, receiving fixed monthly compensation, and have
not reached mandatory retirement age of 65 years old, whether elective or
appointive;
NOTE: Reason for mandatory retirement is public policy—to maintain
efficiency in government service, and to give retiring public servants
opportunity to enjoy the remainder of their lives.
2. Elective officials who will be more than 65 years old at the end of his term;
3. Appointive officials of the RP President remaining in office after reaching
65 years old; and
4. Contractual or casual employees receiving fixed monthly wage, and are
under an Employer-Employee relationship.

Exclusions from Coverage:

1. Uniformed personnel of AFP, PNP, BFP, and BJMP;

NOTE: AFP benefits are covered under R.A. No. 610; PNP under R.A. No.
4864; the two latter under the ECC.
2. Baranggay and Sangunian officials NOT receiving fixed monthly wage;
3. Contractual employees not receiving fixed monthly wage or not under an
Employer-Employee relationship; and
4. Employees of GOCCs without original charter.

Classes of GSIS Membership

1. Special/Regular
a. Special – constitutional commissioners, members of judiciary, and
others of equivalent rank required to remit to GSIS
b. Regular – any other personnel
2. Active/Inactive
 a. Active – still in government service
b. Inactive separated from service by resignation, retirement, disability,
dismissal from service, retrenchment, or deemed retired under the Act

Benefits

1. Retirement benefit;
2. Survivorship benefit;
3. Permanent total disability benefit;
4. Permanent partial disability benefit;
5. Temporary total disability benefit;
6. Funeral benefit;
7. Life insurance benefit;
8. Separation benefit;
9. Involuntary separation benefit;

Separation Benefit

1. For members resigning or are separated after rendering at least 3 years but
less than 15 – Cash payment of 100% average monthly compensation per
year service, but not less than P12,000.
2. For members resigning or are separated after rendering at least 15 years of
service AND is below 60 years old – Cash payment of 18x basic monthly
pension PLUS old-age pension monthly for life upon reaching 60 years old.

Involuntary Separation Benefit

1. Conditions:
a. Permanent employee at the time of separation;
b. His office was abolished; and
c. Paying premiums for at least 1 year prior to separation.
 2. Benefit is monthly cash payment of 50% his average monthly compensation,
payable for a certain number of months depending on number of years in
service. E.g. 6 months for 11 years but less than 15 years of service.

Retirement Benefit

1. Conditions:
a. Rendered at least 15 years of service;
b. At least 60 years old at time of retirement; and
c. Not receiving monthly pension for permanent total disability.
2. Benefit is either:
a. 5-year lump sum of 60x basic monthly pension PLUS old-age pension
for life after 5 years; or
b. Cash payment of 18x basic monthly pension PLUS monthly pension
for life.
3. If member dies, primary beneficiaries will receive the benefit in the same
manner.

Survivorship Benefit

1. Survivorship pension (50% basic monthly pension):

a. Deceased was in service at time of death; or
b. If separated from service, paid the required contributions.
2. Survivorship pension + cash payment of average monthly compensation x
YEARS OF SERVICE:
a. Deceased was in service at time of death; and
b. Rendered at least 3 years of service
3. Cash payment of average monthly compensation x YEARS OF SERVICE:
a. Deceased has rendered at least 3 years of service prior to death;
 b. But does not qualify for survivorship pension.
4. Survivorship pension is paid to:
a. Dependent spouse – if only survivor, receives for life until remarriage.
b. Dependent children – if they are only survivors, receive for as long as
qualified, plus dependent children’s pension.
c. Primary beneficiaries – if dependent spouse and children survive,
spouse receives pension and children receive dependent’s pension
(10% basic monthly pension, not exceeding 5, counted from youngest,
without substitution)
d. If no primary beneficiaries, paid to secondary beneficiaries if:
i. Deceased was in service at time of death; and
ii. Has at least 3 years of service.
e. If no beneficiaries, legal heirs.

Permanent Total Disability Benefit

1. PTD means disability caused by injury or disease resulting in complete,

irreversible, and permanent incapacity to work or engage in any gainful
occupation.
2. Disabilities contemplated are the same with SSS (e.g. complete loss of
eyesight for both eyes)
3. If PTD was suffered while in service – basic monthly pension for life PLUS
cash payment of 18x basic monthly pension.
4. If PTD was suffered after separation from service – basic monthly pension
for life.
5. Cannot enjoy PTD benefits and old-age pension simultaneously.
6. Disqualified if disability was caused by:
a. His grave misconduct;
 b. Notorious negligence;
c. Habitual intoxication; or
d. Willful intention to kill himself or another.

Permanent Partial Disability Benefit

1. PPD means member is incapacitated to work for a limited period of time

because of complete and permanent loss of certain body parts.
2. Disabilities contemplated are the same with SSS (e.g. loss of one hand)
3. Benefit is cash payment in accordance with GSIS-prescribed schedule.
4. Conditions:
a. Member in service at time of disability;
b. If not in service at time of disability:
i. Made required contributions;
ii. Gainfully employed prior to disability;
iii. Not a registered member of any social insurance institution; and
iv. Not receiving any other pension.
5. Same disqualifications as PTD.

Temporary Total Disability Benefit

1. TTD means member is momentarily incapacitated to work or engage in any

gainful occupation as a result of impairment of physical or mental faculties,
but can be rehabilitated or restored.
2. Benefit is 75% of current daily compensation for each day of disability.
3. Period cannot exceed 120 days in one calendar year. Extendible to only 240
days.
4. Conditions:
a. Member in service at time of disability;
 b. If not in service at time of disability:
i. Rendered at least 3 years of service;
ii. Made the required contributions
c. Must have exhausted all sick leave credits
5. Disqualifications are same with PTD.

Suspension and Forfeiture of Disability Benefits

1. Suspended when:
a. He is re-employed or recovers from disability as determined by GSIS;
or
b. Fails to present himself for medical exam when required by GSIS.
2. Forfeited when member fails to:
a. Have himself medically treated when required by GSIS;
b. Take prescribed medications;
c. Have himself confined in a hospital when required by GSIS;
d. Avail himself of rehabilitation facilities when recommended by GSIS;
e. Observe preventive measures prescribed by physician to prevent
aggravation of disability.

Funeral Benefit

1. Intended to defray expenses incident to burial and funeral of members.

2. Benefit is prevailing amount set by the board (currently P30,000).
3. For uniformed personnel of PNP, BFP, or BJMP, P10,000.
4. Payable to the following, in the same order of priority:
a. Legitimate spouse
b. Legitimate child who spent for funeral services
 c. Any other person with incontrovertible proof that he shouldered such
expenses.

Life Insurance Benefit

1. Compulsory for all employees, except members of AFP and PNP.

Limited Portability Law (R.A. No. 7699)

1. Purpose:
a. Portability – transfer of funds for the account and benefit of a worker
who transfers from one system to another.
b. Totalization – process of adding up the period of creditable services or
contributions under each of the Systems, for purposes of eligibility
and computation benefits.
i. Creditable services include all previous services rendered,
whether appointive or elective (public) and all the time
contributions were paid (private).
ii. Includes authorized sick leave and period of unemployment in
case of illegal termination.
2. Coverage – applicable to all worker-members of GSIS and/or SSS who
transfer from one sector to another.
3. Totalization shall apply only where the worker is:
a. Not qualified for any benefits under both systems;
b. Not qualified for any benefits in GSIS; or
c. Not qualified for any benefits in SSS.

Retirement Pay Law (R.A. No. 2641)

1. Covers only employees in the private sector, except employees of retail,
service, and agricultural establishments or operations regularly employing
NOT MORE than 10 employees.
2. Kinds of retirement:
a. Optional retirement – when the employee reaches 60 years old OR has
served at least 5 years in said establishment, unless there is a
retirement plan/CBA providing for more favorable terms.
b. Compulsory retirement – when the employee reaches 65 years old.
3. Benefits:
a. If there is a retirement plan or CBA, whatever is provided therein, but
not less than the statutory requirements.
b. In the absence thereof, employee is entitled to retirement pay of at
least ½ monthly salary for every year of service; a fraction of at least
6 months is considered 1 year. ½ month salary includes:
i. 15 days salary based on latest salary rate (including facilities
but excluding COLA);
ii. Cash equivalent of 5 SIL credits;
iii. 1/12 of the 13th month pay; and
iv. Any other benefits agreed to be included.
c. Tax exempt if BIR requirements are met (e.g. benefit plan is approved
by BIR)