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RA 8282.

SOCIAL SECURITY ACT OF 1997

Enacted to establish and promote a tax-exempt social security system,


protecting members and beneficiaries against hazards of disability, sickness,
maternity, old age, death, and other contingencies

Timely and meaningful


Social Security Commission (SSC)
Corporate body, directing and controlling the Social Security System (SSS)
Composed of:
o
Secretary of Labor and Employment/Undersecretary;
o
SSS President;
o
7 appointive members (3 workers, 3 employers, 1 general public)
Chairman designated by President from among its members; term is 3
years
SSS President responsible for carrying out the programs and policies of the
Commission; with experience in technical and administrative fields related;
appointed by the President
SSC may appoint an actuary and other personnel as may be necessary.
Personnel of SSS shall be civil service eligible and subject to civil service
rules and regulations.
Powers and Duties of the SSC:
o
Adopt, amend, and rescind rules and regulations subject to the
approval of the President
o
Establish a provident fund for the members
o
Maintain a provident fund
o
Approve restructuring proposals for payment of due but unremitted
contributions and unpaid loan amortizations
o
Authorize registered cooperatives to act as collecting agents
o
Compromise or release any interest, penalty, or any civil liability to
SSS in connection with the investments authorized
o
Approve, confirm, or review any and all actions of SSS
Powers and Duties of the SSS:
o
Submit annually a public report of its activities including information
and recommendations on broad policies for the development of
SSS programs to the President and Congress
o
Require the actuary to submit a valuation report on the SSS benefit
program
o
Establish offices of the SSS
o
Enter into agreements or contracts for service and aid as needed
o
Adopt a budget of expenditures against funds available to SSS
o
Set up accounting system
o
Require reports, compilations, and analyses of statistical and
economical data and to make investigation as needed
o
Acquire and dispose of property as needed
o
Acquire or receive public or private property for housing projects
and maintenance of hospitals or schools
o
Sue and be sued in court
o
Perform other corporate acts necessary
KYLEENVR

CMS Estate v. SSS

The Social Security Law implements the general welfare mandate of the
Constitution and constitutes a legitimate exercise of the police power of the
State.

As held in the case of Philippine Blooming Mills Co., Inc., et al. vs. SSS:
Membership in the SSS is not a result of bilateral, consensual agreement
where the rights and obligations of the parties are defined by and subject to
their will, RA 1161 requires compulsory coverage of employees and
employers under the System. It is actually a legal imposition on said
employers and employees, designed to provide social security to the
workingmen. Membership in the SSS is therefore, in compliance with the
lawful exercise of the police power of the State, to which the principle of nonimpairment of the obligation of contract is not a proper defense.

Because of the broad social purpose of the Social Security Act, all doubts in
construing the Act should favor coverage rather than exemption.
In Re: Petition for Exemption from Coverage by the SSS
Roman Catholic Archbishop of Manila v. SSC

The request was based on the claim that the said Act is a labor law and does
not cover religious and charitable institutions but is limited to businesses and
activities organized for profit.

The coverage of the Social Security Law is predicated on the existence of an


employer-employee relationship of more or less permanent nature and
extends to employment of all kinds except those expressly excluded.

The definition of the term "employer" in the SS Law includes religious and
charitable institutions or entities not organized for profit.

This is made more evident by the fact that it contains an exception in which
said institutions or entities are not included. And, certainly, had the
Legislature really intended to limit the operation of the law to entities
organized for profit or gain, it would not have defined an "employer" in such a
way as to include the Government and yet make an express exception of it.

When RA 1161 was enacted, services performed in the employ of institutions


organized for religious or charitable purposes were expressly excluded from
coverage. That portion has been deleted by RA 1792, which took effect in
1957. This is clear indication that the Legislature intended to include
charitable and religious institutions within the scope of the law.

These contributions are not in the nature of taxes on employment, rather,


they are intended for the protection of employees.
Settlement of Disputes:

Jurisdiction of the SSC:


o
Any dispute with respect to coverage, benefits, contributions and
penalties

Exhaustion of Administrative Remedies:


o
Decisions of the SSC becomes final in the absence of an appeal
after 15 days from notification

Judicial review shall be permitted only after any party claiming to be


aggrieved has exhausted his remedies before the SSC.
o
SSC shall be a party to any judicial action involving their decision
Court Review:
o
Decisions of the SSC may be reviewed by the Court of Appeals,
unless the decision involves only questions of law (SC).
Suppletory Application of the Rules of Court:
o
Rule 43 Court Review
o
Rule 71 Contempt
o

Definitions:

Employer:
o
Any person who carries on any trade, business, industry, or activity
and uses the services of another person who is under his orders
o
Except the Government

Employee:
o
Any person who performs services for an employer
o
Both mental and physical efforts are used
o
Receives compensation for such services
o
Employer-employee relationship

Self-employed both employer and employee

Dependents:
o
Legal spouse entitled by law to receive support from the member
o
Legitimate/legitimated/legally adopted/illegitimate, unmarried, not
gainfully employed, less than 21y/o (if over, permanently
incapacitated or incapable of self-support) child
o
Parent receiving regular support

Beneficiaries:
o
Primary: Dependent spouse until he or she remarries
o
Or: Dependent legitimate/illegitmate/legally adopted/illegitmate
children
(illegitimate:
50%
of
the
share
of
legitimate/legitimated/legally adopted)
o
Secondary: Dependent parents
o
If none: any other person designated by the member
Coverage (Universal Coverage)

Compulsory Coverage
o
All employees not over 60 years old and their employers
o
Any benefit earned by the employers under private benefit plans
existing shall not be discontinued, reduced, or impaired
o
Self-employed

Voluntary Coverage
o
Spouses who devote full-time managing the household
o
Filipinos recruited by foreign-based employers for employment
abroad
Effective Date of Coverage

For compulsory coverage of employer: on the first day of his operation

For the employee: on the first day of his employment


KYLEENVR

For self-employed: upon his registration with the SSS

Effect of Separation from Employment:

Employers contribution on employees account and obligation to pay


contributions shall cease at the end of the month of separation

Employee shall be credited with all contributions paid on his behalf and
entitled to benefits

Employee may continue to pay the total contributions to maintain his right to
full benefit
Effect of Interruption of Business or Professional Income:

Self-employed member shall not be required to pay contributions for the


month where he realizes no income

He is allowed to continue paying contributions, but no retroactive payment


Control
Test
for
Employer-Employee
relationship
Philippine Refining Co., Inc. v. Court of Appeals, SSC, SSS

Under the control test, We ascertain whether the employer controls or has
reserved the right to control the employee not only as to the result of the work
to be done but also as to the means and methods by which the same is
accomplished.
SSS v. Court of Appeals & Central Azucarera de Bais

Employment status is determined by law, not by agreement.

Where the employer therefore "controls or has reserved the right to control
the "employee" not only as to the result of the work to be done but also as to
the means and methods" by which it could be performed, then the employeeemployer
relationship
should
be
considered
as
existing.
Republic of the Philippines represented by the SSC & SSS v. Asiapro
Cooperative

Elements for the existence of employer-employee relationship:


1. Selection and management of workers
2. Payment of wages
3. Power of dismissal
4. Power to control workers conduct WON employer reserves right to
control not only the result of employees work, but also the means and
methods on how to achieve it.

The most important element is the employers control of the employees


conduct, not only as to the result of the work to be done, but also as to the
means and methods to accomplish.

The power of control refers to the existence of the power and not necessarily
to the actual exercise thereof. It is not essential for the employer to actually
supervise the performance of duties of the employee; it is enough that the
employer
has
the
right
to
wield
that
power.
Victor De Jesus vs. Court of Appeals

Only the following disputes are recognizable by SSC: benefits, contributions


and penalties
2

Prior consent of the Social Security System (SSS) is not essential before an
employee can commence a criminal action arising from a violation of the
Social Security Law.
Whether under the Social Security Law or "in appropriate cases under the
Revised Penal Code," the employee can institute criminal suits independently
of the SSS.
SSS is not vested with legal competence to adjudicate criminal complaints
and must necessarily seek recourse in the regular courts for the prosecution
of criminal actions arising from violations of the Revised Penal Code and the
Social Security Law

Pensions:

Monthly Pension

Dependents Pension
Benefits:

Maternity Leave Benefit


o
Female member
o
Paid at least 3 monthly contributions in the 12mo. period
immediately preceding the semester of her childbirth or miscarriage
o
Paid daily maternity benefit: 100% of daily salary credit for 60 days
or 78 (caesarean)
o
Conditions:

Prior notification to employer of pregnancy and probable


date of childbirth, which notice shall be transmitted to SSS

Full payment advanced by employer within 30d from filing


of maternity leave application

Payment of daily maternity benefits bars recovery of


sickness benefits for the same period of maternity benefits

Paid only for the first 4 deliveries/miscarriages

SSS shall reimburse the employer upon proof of payment

Employer shall pay SSS damages if employee member


gives birth/suffers miscarriage without the required
contributions having been remitted or if the SSS was not
notified of the pregnancy

Sickness Benefit
o
Member who paid at least 3 monthly contributions in the 12mo.
period immediately preceding the semester of sickness or injury
o
Confined for more than 3 days in the hospital or elsewhere with
SSS approval
o
Paid by employer or by SSS a daily sickness benefit (90% of daily
average salary credit)
o
For each day of compensable confinement
o
Conditions:

Not longer than 120 days in 1 calendar year; no unused


portion of the 120d will be carried forward/added to next
year

Not paid for more than 240d on account of same


confinement
KYLEENVR

Notification of employee to employer within 5d after start


of his confinement, unless unnecessary; if self-employed,
notification directly to SSS; confinement shall be deemed
to have started not earlier than the 5 th day immediately
preceding the date of notification
o
Compensable confinement begins on the first day of sickness
o
Payment shall be made by employer/SSS every regular payday
o
Allowance begins only after all sick leaves of absence with full pay
were exhausted
o
SSS shall reimburse the employer 100% upon proof, provided there
was notification within 5d
o
If employee notifies employer, but employer fails to notify SSS,
employer has no right to recover from SSS.
Permanent Disability Benefits
o
Permanent total disability of a member
o
Has paid at least 36 monthly contributions prior to the semester
of disability
o
Entitled to monthly pension
o
Permanent Total Disabilities:

Complete loss of sign of both eyes

Loss of two limbs at or above the ankle or wrists

Permanent complete paralysis of two limbs

Brain injury resulting to incurable imbecility or insanity

Such cases as determined and approved by SSS


o
If the required 36m payments were not met, he shall be entitled to a
lump sum benefit equivalent to the monthly pension times the
number of monthly contributions paid to SSS or 12x the monthly
pension, whichever is higher.
o
Member who received lump sum benefit and is reemployed/resumed self-employment not earlier than 1yr from date
of disability shall be subject to compulsory coverage again as a new
member.
o
Pensions shall be suspended upon:

Re-employment/Resumption of self-employment

Recovery of the disabled member from his PTD

Failure to present himself for examination at least once a


year upon notice by the SSS
o
Upon death, his primary beneficiaries shall be entitled to receive
monthly pension. If none, his secondary beneficiaries shall be
entitled to a lump sum benefit instead.
o
If disability is permanent partial, and it occurs before 36 monthly
contributions have been paid prior to the semester of disability, the
benefit shall be given in lump sum.
o
If disability is permanent total and occurs after 36 monthly
contributions have been paid, prior to the semester of disability, the
benefit shall be the monthly pension in the number of months
provided.
Retirement Benefit
o
Member who has paid at least 120 monthly contributions prior to
the semester of retirement

Has reached 60 or 65 years old


Already separated from employment or ceased to be self-employed
Entitled to monthly pension for as long as he lives
He has the option to receive his first 18 monthly pensions in lump
sum discounted at a preferential rate of interest
o
A member who is not qualified for pension benefits shall be entitled
to lump sum benefit of the total contributions paid by him
o
Pensions will be suspended upon re-employment or resumption of
a member who is less than 65
o
Upon death, his primary beneficiaries as of the date of his
retirement shall be entitled to receive the monthly pension
o
If none, and he dies within 60m from the start of his monthly
pension, his secondary beneficiaries are entitled to a lump sump
benefit of the total monthly pensions corresponding to the balance
of the five-year guaranteed period, excluding the dependents
pension
o
Monthly pension of member who retires after reaching 60, either:

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; OR

Monthly pension computed at the time when he actually


retires
Death Benefit
o
Death of a member who has paid at least 36 monthly
contributions prior to the semester of death
o
Primary beneficiaries shall be entitled to monthly pension
o
If none, secondary entitled to lump sum benefit (36x the monthly
pension)
o
If he has not paid the 36 monthly contributions, his
primary/secondary beneficiaries shall be entitled to a lump sum
benefit equivalent to the monthly pension times the number of
monthly contributions or 12x the monthly pension, whichever is
higher
Funeral Benefit
o
P12,000 in cash or in kind
o
To help defray the cost of funeral expenses upon the death of a
member
o
o
o
o

Anatolia Valencia v. Manila Yacht Club

SSS benefits different from employees compensation contemplated in the


Civil Code.

Employee is not barred from availing of both.

Basis of claiming under the Workmens Compensation Act: responsibility of


the industry due to the hazards involved in their employment

Basis of claiming under the SSL: membership and contribution; employees


put up their own money
Employees Contributions

KYLEENVR

When it begins: as of the last day of the calendar month when an


employees compulsory coverage takes effect and every month thereafter
during his employment
How: employer deducts and withholds from employees monthly salary the
latters contribution
Maximum monthly salary credit: P12K

Employees Contributions

When it begins: as of the last day of the month when an employees


compulsory coverage takes effect and every month during his employment

Employer pays contribution in accordance with the schedule

Employer shall not deduct from the compensation of his employees covered
by the SSS or otherwise recover from them the employers contributions with
respect to such employees

Remittance: supported by a quarterly collection list with the ID# of the


employer, names & SSS #s of the employees, and the total contributions paid
for their account
Contributions of the Self-Employed

Monthly earnings declared shall be considered monthly compensation.

Monthly earnings declared at the time of his registration remains the basis of
his monthly salary credit, unless he makes another declaration.
Government Contribution

Congress shall annually appropriate funds in the National Treasury not


appropriated for the expenses of SSS for each year

Congress shall also appropriate from time to time sums needed to assure the
maintenance of an adequate working balance of SSS funds assessed by
periodic actuarial studies
Remittance

Contributions shall be remitted to SSS within the first 10d of each month
following the month for which they are applicable or as the SSC prescribes

Penalty:
o
Employers who fail to remit and pay contributions shall have a
penalty of 3% per month from the date they failed to pay

If employer refuses or neglects to pay, it may be collected as how taxes are


collected.

Employers failure to pay or remit shall not prejudice the employee.

Right to institute action against employer may be commenced within 20d


from delinquency is known by the SSS or from the time benefit accrues

If any person defaults in payment of contribution, SSS may also collect:


o
Action in court
o
Warrant to the Sheriff commanding him to levy upon and sell any
real and personal property of the debtor

Self-Employed:
o
Remit quarterly on dates and schedules as the SSC may specify
o
No retroactive payment
4

Method of Collection and Payment

Proper identification of employer and employee

May be made in cash, checks, stamps, coupons, tickets or other reasonable


devices as the SSC may adopt
Employment Records and Reports

Employer shall report to SSS the names, ages, civil status, occupations,
salaries, and dependents of all employees subject to compulsory coverage

Confidential except in compliance with subpoena duces tecum and with


consent of SSS President or any authorized SSS official

Presumed correct as to the data and other matters, unless necessary


corrections have been properly reported BEFORE the right of benefit accrues
(data correction)

Annual Register of New and Separate Employees

Employers shall require prospect employees to present SSS registration


number before employment

Self-Employed:
o
Register and report name, age, civil status, occupation and average
monthly net income, and dependents
o
Within 30d from when he started his profession/business
Damages

Employer shall pay SSS damages if a member-employee dies/becomes


sick/reach 60 without SSS receiving any report from employer equiv. to the
benefits which the ME would have been entitled to; but in pension, equiv. to
accumulated pension.
o
BUT if contingency occurred within 30d from date of employment,
employer shall be relieved of liability for damages

Misrepresentation by employer
o
Employer misrepresents the true date of employment; or
o
Remit contributions less than those required; or
o
Fail to remit any contribution due
o
Pay damages equiv. to difference of the amount of benefit and the
amount payable on the basis of the contributions actually remitted
United Christian Missionary Society v. Social Security Commission

Given the absence of an express provision, SSC no power to condone


penalty.

Good faith or bad faith is irrelevant because penalty attaches from the
moment the remittance of premium dues is delayed.

The SSC is a mere trustee of the funds, which actually belongs to the
members.

Proper procedure: pay the penalty and question it afterwards.

Churches and religious groups are not exempted from coverage.


SSS v. Valderrama Lumber Manufacturers Co., Inc

Exception to absence of power to condone: where a law (PD 24) expressly


grants SSC to condone penalties for a period of time.

KYLEENVR

In this case, Valderrama already paid more than its back premiums and a
portion of the penalties imposed. Therefore, their unpaid balance must be
deemed remitted and condoned pursuant to PD 24.

Republic Act No. 9903: Social Security Condonation Law of 2009


Employers who has not remitted all contributions due may:
o
Remit the contributions; or
o
Submit a proposal to pay in installments (upon approval, all pending
cases shall be withdrawn without prejudice to refilling)
If employer fails to remit in full or defaults in payment of any installment,
penalties are deemed reimposed.
Ramon J. Farolan v. Court of Appeals, SSC & SSS

Whoever has the liability at the time of adjudication of SSC bears the
satisfaction of claims.
Penal Clause

Any person who makes or causes to be made a false statement or


representation for the purpose of claiming any benefit, application of
loan, or in connection with such

Any person who obtains or receive any money without being entitled
with intent to defraud

Whoever buys, sells, offers, uses, any stamp, coupon, etc prescribed for
the collection of payment of contributions

Whoever alters, forges, counterfeits stamps, etc with intent to defaud

Whoever fails or refuses to comply with SSL

SSS employees who misappropriate funds or property of the SSS

Employers who fails to remit after deducting


Notes:

Legal Assessment - basis if employer fails to submit an updated remittance;


subject to change by presentment of evidence

E1 - personal data sheet; upon registration

E4 - data amendment form; children, spouse

R1/R1-A - employers

R3 - contribution collection list

R8 - data change form

Marriage Certificate trumps all other evidence.

Prescription: 10 years if not claimed

Membership coverage has expanded and has now included jeepney drivers,
market vendors, etc.

Where do SSS get funds? Investment and contributions

A beneficiary who is a national of a foreign country which does not extend


benefits to a Filipino beneficiary residing in the PH, or which is not recognized
by the PH, shall not be entitled to receive any benefit.
o
However, SSC may direct payments without regard to nationality or
country of residence if its in the best interest of the Commission.

If recipient is a minor, SSC shall appoint a representative.


o
Not necessary if under the custody/living with parents
5

Benefits are NOT transferrable and NO SPA or other documents for collection
on their behalf shall be recognized.
o
Except when physically unable to collect personally
o
If death benefits, legal heirs (succession)
If there is an erroneous payment, SSS may recover.
o
At times, good or bad faith matters

KYLEENVR

RA 9262. ANTI-VIOLENCE AGAINST WOMEN AND THEIR CHILDREN ACT

Valuing the dignity of women and children

Guarantees full respect for human rights

Protect the family and its members particularly women and children
Violence Against Women and Children

Any act or series of acts committed by any person:


o
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
o
Against a child, legitimate or not, within or without the family abode

Resulting in physical, sexual, or psychological harm or suffering or economic


abuse including threats

Physical violence bodily or physical harm

Sexual violence rape, sexual harassment, prostituting, etc.

Psychological violence causing or likely to cause mental or emotional


suffering

Economic abuse make or attempt to make a woman financially dependent

Battered Woman Syndrome pattern of psychological and behavioral


symptoms found in women living in battering relationships as a result of
cumulative abuse

Dating Relationship parties live as husband and wife without the benefit of
marriage or are romantically involved over time and on a continuing basis

Children below 18 or older but incapable of taking care of themselves


Acts of Violence
(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;
KYLEENVR

(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.
Protection Orders

Issued for the purpose of preventing further acts of violence

Enforced by law enforcement agencies

Barangay Protection Order

Temporary Protection Order

Permanent Protection Order

Who may file:


o
(a) the offended party;
o
(b) parents or guardians of the offended party;
o
(c) ascendants, descendants or collateral relatives within the fourth civil
degree of consanguinity or affinity;
o
(d) officers or social workers of the DSWD or social workers of local
government units (LGUs);
o
(e) police officers, preferably those in charge of women and children's
desks;
o
(f) Punong Barangay or Barangay Kagawad;
o
(g) lawyer, counselor, therapist or healthcare provider of the petitioner;
o
(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.
Notes:
VAWC is considered a public offense
Victims who are found to be suffering from BWS do not incur any criminal or
civil liability
Woman victim of violence entitled to the custody and support of children
An Inter-Agency Council on VAWC was created tasked to formulate
programs and projects to eliminate such violence and to develop their
employees to be more sensitive to the victims needs