Social Security Act of 1997 (RA 8282)

Salient Features of the SSS Law

Employer - Any person, natural or judicial,
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 employer. A self-employed
person shall be both employee and employer at
the same time.
Exempt employer: government and any of its
political subdivisions,
branches and
instrumentality, including GOCCs (Government
Owned and Controlled Corporations.
Beneficiaries:
1. Primary Beneficiaries
a. Dependent Spouse until remarriage
b. Dependent Legitimate or Legitimated or
Legally
Adopted and
Illegitimate
Children
2. Secondary Beneficiaries - Dependent Parents
3. Other Beneficiaries - Absent primary and
secondary beneficiaries, any other person
designated by member as secondary beneficiary.
As to DEATH BENEFITS, If no beneficiary
qualifies under the Act, benefits shall be paid to
Legal Heirs in accordance with Law of
Succession.
SSS (Social Security System) Benefits
1. Monthly Pension - minimum pension is 1,200
for members with at least ten (10) credited
years of service and 2,400 for those with
twenty (20) credited years of service.
2. Dependents Pension - 10% of the monthly
pension or 250 whichever is higher. Limit - 4
children
3. Retirement
4. Death
5. Permanent Disability
6. Funeral
7. Sickness
8. Maternity (ONLY 1ST FOUR (4) DELIVERIES OR
MISCARRIAGES)
Coverage
1. Compulsory 1. All employees not over
sixty (60) years of age and their employers
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
2. Self-employed
employees as may be determined by the
Commission under such rules and regulations as
it may prescribe, including, but limited to: all
a. Self-employed professionals;

b. partners and single-proprietors of

business;
c. actors and actresses, directors,
scriptwriters
and news correspondents not
employees;
d. professional athletes, coaches, trainers
and

their

jockeys, and
e. individual farmers and fishermen; upon
registration with the SSS.

3. Domestic helpers who are sixty

years of age and below with a monthly income of
not less than P1,000 on the date of their
employment
4. individual farmers and
fishermen under SS (Social Security) rules and
regulations
2. Voluntary - 1. Filipinos recruited by foreignbased employers for employment abroad
2. Employee separated from
employment
3. Self-employed realizes no income
4. Spouse who devotes full time
managing household and family affairs unless
specifically mandatorily covered
3. By Arrangement - any foreign government,
international organization or wholly owned
instrumentality employing workers in the
Philippines or employing Filipinos outside the
Philippines may enter agreement with
Philippines for inclusion of such employees in SSS
EXCEPT those already covered by their
respective civil service retirement system.
Exceptions From Coverage
1. Employment purely casual and not for purpose
occupation, or business employer
2. Service performed on or in connection with
alien vessel, if
employed when such vessel is outside of
Philippines
3. Employees of Philippine government or
instrumentality or agency thereof
4. Service performed in the employee of a foreign
government, or international organizations, of
wholly owned instrumentality employing
workers in the Philippines or employing Filipinos
outside of the Philippines
5. Services performed by temporary and other
employees excluded by SSS regulation;
employees of bonafide independent contractors
shall not be deemed employees of the
employer engaging the services of an
independent contractor
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 first day of his employment
Provided, That the compulsory coverage of! the
self-mployed person shall take effect upon his
registration with the SSS.