but not to exceed Fifteen thousand pesos (P15,000.
00) a
REPUBLIC ACT NO. 8282
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.
SECTION 1. Republic Act No. 1161, as amended, otherwise
known as the "Social Security Law", is hereby further
amended to read as follows:
"SECTION 1. Short Title. - This Act shall be known as
the "Social Security Act of 1997."
"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 the Secretary of Labor and
Employment or his duly designated undersecretary, the
SSS president and seven (7) appointive members, three (3)
of whom shall represent the workers’ group, at least one
of whom shall be a woman; three (3), the employers’
group, at least one (1) of whom shall be a woman; 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)
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 other benefits,
prescribe their duties and establish such methods and
procedures as may be necessary 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) Forth 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 payable not longer than the period designated in the
contributions, his primary or secondary beneficiaries shall following schedule:
be entitled to a lump sum benefit equivalent to the
COMPLETE
monthly pension times the number of monthly
AND PERMANENT NUMBER OF
contributions paid to the SSS or twelve (12) times the
LOSS OF USE OF MONTHS
monthly pension, whichever is higher.
One thumb 10
"SEC. 13-A. Permanent Disability Benefits. - (a) Upon the
One index finger 8
permanent total disability of a member who has paid at
One middle finger 6
least thirty-six (36) monthly contributions prior to the
One ring finger 5
semester of disability, he shall be entitled to the monthly
One little finger 3
pension: Provided, That if he has not paid the required
One big toe 6
thirty-six (36) monthly contributions, he shall be entitled
One hand 39
to a lump sum benefit equivalent to the monthly pension
One arm 50
times the number of monthly contributions paid to the SSS
One foot 31
or twelve (12) times the monthly pension, whichever is
One leg 46
higher. A member who (1) has received a lump sum
One ear 10
benefit; and (2) is reemployed or has resumed self-
Both ears 20
employment not earlier than one (1) year from the date of
Hearing of one ear 10
his disability shall again be subject to compulsory coverage
Hearing of both ears 50
and shall be considered a new member.
Sight of one eye 25
"(b) The monthly pension and dependents’ pension shall
"(g) The percentage degree of disability which is
be suspended upon the reemployment or resumption of
equivalent to the ratio that the designated number of
self-employment or the recovery of the disabled member
months of compensability bears to seventy-five (75),
from his permanent total disability or his failure to present
rounded to the next higher integer, shall not be additive
himself for examination at least once a year upon notice
for distinct, separate and unrelated permanent partial
by the SSS.
disabilities, but shall be additive for deteriorating and
"(c) Upon the death of the permanent total disability related permanent partial disabilities to a maximum of one
pensioner, his primary beneficiaries as of the date of hundred percent (100%), in which case, the member shall
disability shall be entitled to receive the monthly be deemed as permanently totally disabled.
pension: Provided, That if he has no primary beneficiaries
"(h) In case of permanent partial disability, the monthly
and he dies within sixty (60) months from the start of his
pension benefit shall be given in lump sum if it is payable
monthly pension, his secondary beneficiaries shall be
for less than twelve (12) months.
entitled to a lump sum benefit equivalent to the total
monthly pensions corresponding to the balance of the "(i) For the purpose of adjudicating retirement, death and
five-year guaranteed period excluding the dependents’ permanent total disability pension benefits, contributions
pension. shall be deemed paid for the months during which the
member received partial disability pension: Provided, That
"(d) The following disabilities shall be deemed permanent
such contributions shall be based on his last contribution
total:
prior to his disability.
"1. Complete loss of sight of both eyes;
"(j) Should a member who is on partial disability pension
"2. Loss of two limbs at or above the ankle or wrists; retire or die, his disability pension shall cease upon his
retirement or death.
"3. Permanent complete paralysis of two limbs;
"SEC. 13-B. Funeral Benefit. - A funeral grant equivalent to
"4. Brain injury resulting to incurable imbecility or insanity;
Twelve thousand pesos (P12,000.00) shall be paid, in cash
and
or in kind, to help defray the cost of funeral expenses upon
"5. Such cases as determined and approved by the SSS. the death of a member, including permanently totally
disabled member or retiree.
"(e) If the disability is permanent partial, and such
disability occurs before thirty-six (36) monthly "SEC. 14. Sickness Benefit. - (a) A member who has paid at
contributions have been paid prior to the semester of least three (3) monthly contributions in the twelve-month
disability, the benefit shall be such percentage of the lump period immediately preceding the semester of sickness or
sum benefit described in the preceding paragraph with injury and is confined therefor for more than three (3)
due regard to the degree of disability as the Commission days in a hospital or elsewhere with the approval of the
may determine. SSS, shall, for each day of compensable confinement or a
fraction thereof, be paid by his employer, or the SSS, if
"(f) If the disability is permanent total and such disability such person is unemployed or self-employed, a daily
occurs after thirty-six (36) monthly contributions have sickness benefit equivalent to ninety percent (90%) of his
been paid prior to the semester of disability, the benefit average daily salary credit, subject to the following
shall be the monthly pension for permanent total disability 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 allowances shall
be promptly made by the employer every regular payday
or on the fifteenth 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 all sick leaves of absence with full pay to the credit of
the employee member shall have been 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.
"(f) The provisions regarding the notification required of
the member and the employer as well as the period within
which the claim for benefit or reimbursement may be filed
shall apply to all claims filed with the SSS.
"SEC. 14-A. Maternity Leave Benefit. - A female member
who has paid at least three (3) monthly contributions in
the twelve-month period immediately preceding the
semester of her childbirth or miscarriage shall be paid a
daily maternity benefit equivalent to one hundred percent
(100%) of her average daily salary credit for sixty (60) days
or seventy-eight (78) days in case of caesarian delivery,
subject to the following conditions:
"(a) That the employee shall have notified her employer of
her pregnancy and the probable date of her childbirth,
which notice shall be transmitted to the SSS in accordance
with the rules and regulations it may provide;
"(b) The full payment shall be advanced by the employer
within thirty (30) days from the filing of the maternity
leave application;
"(c) That payment of daily maternity benefits shall be a bar
to the recovery of sickness benefits provided by this Act
for the same period for which daily maternity benefits
have been received;
"(d) That the maternity benefits provided under this
section shall be paid only for the first four (4) deliveries or
miscarriages;
"(e) That the SSS shall immediately reimburse the
employer of one hundred percent (100%) of the amount of
maternity benefits advanced to the employee by the
employer upon receipt of satisfactory proof of such
payment and legality thereof; and
"(f) That if an employee member should give birth or
suffer miscarriage without the required contributions
having been remitted for her by her employer to the SSS,
or 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 employee member would otherwise have been
entitled to.
"SEC. 15. Non-Transferability of Benefits. - The SSS shall
promptly pay the benefits provided in this Act to such
persons as may be entitled thereto in accordance with the
provisions of this 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 before: Provided, further, That the
beneficiary who is a national of a foreign country which (P500.00) nor more than Five thousand pesos (P5,000.00),
does not extend benefits to a Filipino beneficiary residing or imprisonment for not less than six (6) months nor more
in the Philippines, or which is not recognized by the than one (1) year, or both, at the discretion of the court.
Philippines, shall not be entitled to receive any benefit
"SEC. 18. Employee’s Contributions. - (a) Beginning as of
under this Act: Provided, further, That notwithstanding the
the last day of the calendar month when an employee’s
foregoing, where the best interest of the SSS will be
compulsory coverage takes effect and every month
served, the Commission may direct payments without
thereafter during his employment, the employer shall
regard to nationality or country of residence: Provided,
deduct and withhold from such employee’s monthly
further, That if the recipient is a minor or a person
salary, wage, compensation or earnings, the employee’s
incapable of administering his own affairs, the Commission
contribution in an amount corresponding to his salary,
shall appoint a representative under such terms and
wage, compensation or earnings during the month in
conditions as it may deem proper: Provided, further, That
accordance with the following schedule:
such appointment shall not be necessary in case the
recipient is under the custody of or living with the parents SALARY RANGE OF MONTHLY MONTHLY
or spouse of the member in which case the benefits shall CONTRIBUTION
be paid to such parents or spouse, as representative payee BRACKET COMPENSATION SALARY
of the recipient. Such benefits are not transferable and no CREDIT EMPLOYER EMPLOYEE TOTAL
power of attorney or other document executed by those
entitled thereto in favor of any agent, attorney or any I 1,000.00 -
other person for the collection thereof on their behalf 1,249.99 1000 50.70 33.30 84.00
shall be recognized, except when they are physically II 1,250.00 -
unable to collect personally such benefits:Provided, 1,749.99 1500 76.00 50.00 126.00
further, That in case of death benefits, if no beneficiary III 1,750.00 -
qualifies under this Act, said benefits shall be paid to the 2,249.99 2000 101.30 66.70 168.00
legal heirs in accordance with the law of succession. IV 2,250.00 -
2,749.99 2500 126.70 83.30 210.00
"SEC. 16. Exemption from Tax, Legal Process and Lien. -- All V 2,750.00 -
laws to the contrary notwithstanding, the SSS and all its 3,249.99 3000 152.00 100.00 252.00
assets and properties, all contributions collected and all VI 3,250.00 -
accruals thereto and income or investment earnings 3,749.99 3500 177.30 116.70 294.00
therefrom as well as all supplies, equipment, papers or VII 3,750.00 -
documents shall be exempt from any tax, assessment, fee, 4,249.99 4000 202.70 133.30 336.00
charge, or customs or import duty; and all benefit VIII 4,250.00 -
payments made by the SSS shall likewise be exempt from 4,749.99 4500 228.00 150.00 378.00
all kinds of taxes, fees or charges, and shall not liable to IX 4,750.00 -
attachments, garnishments, levy or seizure by or under 5,249.99 5000 253.30 166.70 420.00
any legal or equitable process whatsoever, either before X 5,250.00 -
or after receipt by the person or persons entitled thereto, 5,749.99 5500 278.70 183.70 462.40
except to pay any debt of the member to the SSS. No tax XI 5,750.00 -
measure of whatever nature enacted shall apply to the 6,249.99 6000 304.00 200.00 504.00
SSS, unless it expressly revokes the declared policy of the XII 6,250.00 -
State in Section 2 hereof granting tax-exemption to the 6,749.99 6500 329.30 216.78 546.00
SSS. Any tax assessment imposed against the SSS shall be XIII 6,750.00 -
null and void. (As amended by Sec. 9, P. D. No. 24, S. 1972; 7,249.99 7000 354.70 233.30 588.00
and Sec. 14, P. D. No. 735, S. 1975). XIV 7,250.00 -
7,749.99 7500 380.00 250.00 630.00
"SEC. 17. Fee of Agents, Attorneys, Etc. - No agent,
XV 7,750.00 -
attorney or other person in charge of the preparation,
8.249.99 8000 403.30 266.70 672.00
filing or pursuing any claim for benefit under this Act shall
XVI 8,250.00 -
demand or charge for his services any fee, and any
8,749.99 8500 430.70 283.30 714.00
stipulation to the contrary shall be null and void. The
XVII 8,750.00 -
retention or deduction of any amount from any benefit
OVER 9000 456.00 300.00 756.00
granted under this Act for the payment of fees for such
services is prohibited: Provided, however, That any "The foregoing schedule of contribution shall also apply to
member of the Philippine Bar who appears as counsel in self-employed and voluntary members.
any case heard by the Commission shall be entitled to
attorneys’ fees not exceeding ten percent (10%) of the "The maximum monthly salary credit shall be Nine
benefits awarded by the Commission, which fees shall not thousand pesos (P9,000.00) effective January Nineteen
be payable before the actual payment of the benefits, and hundred and ninety six (1996); Provided, That it shall be
any stipulation to the contrary shall be null and void. increased by One thousand pesos (P1,000.00) every year
thereafter until it shall have reached Twelve thousand
"Any violation of the provisions of this Section shall be pesos (P12,000.00) by Nineteen hundred and ninety nine
punished by a fine of not less than Five hundred pesos (1999): Provided, further, That the minimum and
maximum monthly salary credits as well as the rate of remitted to the SSS within the first ten (10) days of each
contributions may be fixed from time to time by the calendar month following the month for which they are
Commission through rules and regulations taking into applicable or within such time as the Commission may
consideration actuarial calculations and rate of benefits, prescribe. Every employer required to deduct and to remit
subject to the approval of the President of the Philippines. such contributions shall be liable for their payment and if
any contribution is not paid to the SSS as herein
"SEC. 19. Employer’s Contributions. - (a) Beginning as of
prescribed, he shall pay besides the contribution a penalty
the last day of the month when an employee’s compulsory
thereon of three percent (3%) per month from the date
coverage takes effect and every month thereafter during
the contribution falls due until paid. If deemed expedient
his employment, his employer shall pay, with respect to
and advisable by the Commission, the collection and
such covered employee, the employer’s contribution in
remittance of contributions shall be made quarterly or
accordance with the schedule indicated in Section
semi-annually in advance, the contributions payable by the
Eighteen of this Act. Notwithstanding any contract to the
employees to be advanced by their respective
contrary, an employer shall not deduct, directly or
employers: Provided, That upon separation of an
indirectly, from the compensation of his employees
employee, any contribution so paid in advance but not due
covered by the SSS or otherwise recover from them the
shall be credited or refunded to his employer.
employer’s contributions with respect to such employees.
"(b) The contributions payable under this Act in cases
"(b) The remittance of such contributions by the employer
where an employer refuses or neglects to pay the same
shall be supported by a quarterly collection list to be
shall be collected by the SSS in the same manner as taxes
submitted to the SSS at the end of each calendar quarter
are made collectible under the National Internal Revenue
indicating the correct ID number of the employer, the
Code, as amended. Failure or refusal of the employer to
correct names and the SSS numbers of the employees and
pay or remit the contributions herein prescribed shall not
the total contributions paid for their account during the
prejudice the right of the covered employee to the
quarter.
benefits of the coverage.
"SEC. 19-A. Contributions of the Self-Employed Member. -
"The right to institute the necessary action against the
The contributions to the SSS of the self-employed member
employer may be commenced within twenty (20) years
shall be determined in accordance with Section Eighteen
from the time the delinquency is known or the assessment
of this Act: Provided, That the monthly earnings declared
is made by the SSS, or from the time the benefit accrues,
by the self-employed member at the time of his
as the case may be.
registration with the SSS shall be considered as his
monthly compensation and he shall pay both the employer "(c) Should any person, natural or juridical, default in any
and the employee contributions: Provided, further, That payment of contributions, the Commission may also
the contributions of self-employed persons earning One collect the same in either of the following ways:
thousand pesos (P1,000.00) monthly or below may be
"1. By an action in court, which shall hear and dispose of
reduced by the Commission.
the case in preference to any other civil action; or
"The monthly earnings declared by the self-employed
"2. By issuing a warrant to the Sheriff of any province or
member at the time of his registration shall remain the
city commanding him to levy upon and sell any real and
basis of his monthly salary credit, unless he makes another
personal property of the debtor. The Sheriff’s sale by
declaration of his monthly earnings, in which case such
virtue of said warrant shall be governed by the same
latest declaration becomes the new basis of his monthly
procedure prescribed for executions against property
salary credit.
upon judgments by a court of record.
"SEC. 20. Government Contribution. - As the contribution
"(d) The last complete record of monthly contributions
of the Government to the operation of the SSS, Congress
paid by the employer or the average of the monthly
shall annually appropriate out of any funds in the National
contributions paid during the past three (3) years as of the
Treasury not otherwise appropriated, the necessary sum
date of filing of the action for collection shall be presumed
or sums to meet the estimated expenses of the SSS for
to be the monthly contributions payable by and due from
each ensuing year. In addition to this contribution,
the employer to the SSS for each of the unpaid month,
Congress shall appropriate from time to time such sum or
unless contradicted and overcome by other
sums as may be needed to assure the maintenance of an
evidence: Provided, That the SSS shall not be barred from
adequate working balance of the funds of the SSS as
determining and collecting the true and correct
disclosed by suitable periodic actuarial studies to be made
contributions due the SSS even after full payment
of the operations of the SSS.
pursuant to this paragraph, nor shall the employer be
"SEC. 21. Government Guarantee. -- The benefits relieved of his liability under Section Twenty-eight of this
prescribed in this Act shall not be diminished and to Act.
guarantee said benefits the Government of the Republic of
"SEC. 22-A. Remittance of Contributions of Self-Employed
the Philippines accepts general responsibility for the
Member. - Self-employed members shall remit their
solvency of the SSS.
monthly contributions quarterly on such dates and
"SEC. 22. Remittance of Contributions. -- (a) The schedules as the Commission may specify through rules
contributions imposed in the preceding Section shall be and regulations: Provided, That no retroactive payment of
contributions shall be allowed, except as provided in this by the Court, shall not be divulged without the consent of
Section. the SSS President or any official of the SSS duly authorized
by him, shall be presumed correct as to the data and other
"SEC. 23. Method of Collection and Payment. - The SSS
matters stated therein, unless the necessary corrections to
shall require a complete and proper collection and
such records and reports have been properly made by the
payment of contributions and proper identification of the
parties concerned before the right to the benefit being
employer and the employee. Payment may be made in
claimed accrues, and shall be made the basis for the
cash, checks, stamps, coupons, tickets, or other
adjudication of the claim. If as a result of such adjudication
reasonable devices that the Commission may adopt.
the SSS in good faith pays a monthly pension to a
"SEC. 24. Employment Records and Reports. - (a) Each beneficiary who is inferior in right to another beneficiary
employer shall immediately report to the SSS the names, or with whom another beneficiary is entitled to share,
ages, civil status, occupations, salaries and dependents of such payments shall discharge the SSS from liability unless
all his employees who are subject to compulsory and until such other beneficiary notifies the SSS of his
coverage: Provided, That if an employee subject to claim prior to the payments.
compulsory coverage should die or become sick or
"(d) Every employer shall keep true and accurate work
disabled or reach the age of sixty (60) without the SSS
records for such period and containing such information as
having previously received any report or written
the Commission may prescribe, in addition to an "Annual
communication about him from his employer, the said
Register of New and Separated Employees" which shall be
employer shall pay to the SSS damages equivalent to the
secured from the SSS wherein the employer shall enter on
benefits to which said employee member would have
the first day of employment or on the effective date of
been entitled had his name been reported on time by the
separation, the names of the persons employed or
employer to the SSS, except that in case of pension
separated from employment, their SSS numbers, and such
benefits, the employer shall be liable to pay the SSS
other data that the Commission may require and said
damages equivalent to the accumulated pension due as of
annual register shall be submitted to the SSS in the month
the date of settlement of the claim or to the five (5) years’
of January of each year. Such records shall be open for
pension, including dependents’ pension: Provided,
inspection by the SSS or its authorized representatives
further, That if the contingency occurs within thirty (30)
quarterly or as often as the SSS may require.
days from the date of employment, the employer shall be
relieved of his liability for damages: Provided, further, That "The SSS may also require each employer to submit, with
any person or entity engaging the services of an respect to the persons in his employ, reports needed for
independent contractor shall be subsidiarily liable with the effective administration of this Act.
such contractor for any civil liability incurred by the latter
"(e) Each employer shall require, as a condition to
under this Act: Provided, finally, That the same person or
employment, the presentation of a registration number
entity engaging the services of an independent contractor
secured by the prospective employee from the SSS in
shall require such contractor to post a surety bond to
accordance with such procedure as the SSS may
guarantee the payment of the worker’s benefits.
adopt: Provided, That in case of employees who have been
"(b) Should the employer misrepresent the true date of assigned registration numbers by virtue of a previous
employment of the employee member or remit to the SSS employment, such numbers originally assigned to them
contributions which are less than those required in this Act should be used for purposes of this Section: Provided,
or fail to remit any contribution due prior to the date of further, That the issuance of such registration numbers by
contingency, resulting in a reduction of benefits, the the SSS shall not exempt the employer from complying
employer shall pay to the SSS damages equivalent to the with the provisions of paragraph (a) of this Section.
difference between the amount of benefit to which the
"(f) Notwithstanding any law to the contrary, microfilm, or
employee member or his beneficiary is entitled had the
non-erasable optical disk and other similar archival media
proper contributions been remitted to the SSS and the
copies of original SSS records and reports, duly certified by
amount payable on the basis of contributions actually
the official custodian thereof, shall have the same
remitted: Provided, That if the employee member or his
evidentiary value as the originals and be admissible as
beneficiary is entitled to pension benefits, damages shall
evidence in all legal proceedings.
be equivalent to the accumulated pension due as of the
date of settlement of the claim or to the five (5) years’ "(g) Notwithstanding any law to the contrary, local
pension, whichever is higher, including dependents’ government units shall, prior to issuing any annual
pension. business license or permit, require submission of
certificate of SSS coverage and compliance with the
"In addition to the liability mentioned in the preceding
provisions of this Act: Provided, That the certification or
paragraphs (a) and (b) hereof, the employer shall also be
clearance shall be issued by the SSS within five (5) working
liable for the corresponding unremitted contributions and
days from receipt of the request.
penalties thereon.
"SEC. 24-A. Report and Registration of the Self-Employed
"(c) The records and reports duly accomplished and
Member. - Each covered self-employed person shall,
submitted to the SSS by the employer or the member, as
within thirty (30) days from the first day he started the
the case may be, shall be kept confidential by the SSS
practice of his profession or business operations register
except in compliance with a subpoena duces tecum issued
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."

SEC. 2. Separability Clause. - If any provision of this Act is

declared invalid, the other provisions not affected thereby
shall remain valid.

SEC. 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.

SEC. 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.
“Except for the 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:
“(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.
“(b) Unless the service is extended by appropriate
authorities, retirement shall be compulsory for an
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 with existing civil
service rules and regulations.
“SECTION 13-A. Conditions for Entitlement. — A member
who retires from the service shall be entitled to the
retirement benefits in paragraph (a) of Section 13 hereof:
Provided, That:
(1) he has rendered at least fifteen (15) years of service;
(2) he is at least sixty (60) years of age at the time of
retirement; and
(3) he is not receiving a monthly pension benefit from
permanent total disability.
“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 the GSIS’
actuary and approved by the Board in accordance with the
rules and regulations prescribed by the GSIS.
“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.
“(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.
“(d) The following disabilities shall be deemed total and
permanent:
“(1) complete loss of sight of both eyes;
“(2) loss of two (2) limbs at or above the ankle or wrist;
“(3) permanent complete paralysis of two(2) limbs;
“(4) brain injury resulting in incurable imbecility or
insanity; and
“(5) such other cases as may be determined by the GSIS.
“SECTION 17. Permanent Partial Disability Benefits. — (a)
If the disability is partial, he shall receive a cash payment
in accordance with a schedule of disabilities to be
prescribed by the GSIS: Provided, That he satisfies either
conditions (1) or (2) of Section 16(a);
“(b) The following disabilities shall be deemed permanent
and partial:
“(1) complete and permanent loss of the use of:
(i) any finger
(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:
(1) the basic survivorship pension which is fifty percent
(50%) of the basic monthly pension; and
(2) the dependent children’s pension not exceeding fifty
percent (50%) of the basic monthly pension.
(3)
“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:
(i) was in the service at the time of his death; or
(ii) 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:
(1) when the dependent spouse is the only survivor,
he/she shall receive the basic survivorship pension for life
or until he/she remarries;
(2) 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;
(3) 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:
(1) 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
(2) in the absence of secondary beneficiaries, the benefits
under this paragraph shall be paid to his legal heirs.
(d) 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:
(a) an active member as defined under Section 2(e) of this
Act; or
(b) 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
(c) a pensioner, as defined in Section 2(o) of this Act; or
(d) 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 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.
“Criminal actions arising from violations of the provisions
of this Act may be commenced by the GSIS or by the
aggrieved member, either under this Act or, in appropriate
cases, under the Revised Penal Code.
“SECTION 53. Implementing Rules and Regulations. — The
implementing rules and regulations to carry out the
provisions of this Act shall be adopted and promulgated by
the GSIS not later than ninety (90) days after the approval
of this Act.
“SECTION 54. Non-impairment of Benefits, Powers,
Jurisdiction, Rights, Privileges, Functions and Activities. —
Nothing in this Act shall be construed to repeal, amend or
limit any provision of existing laws. Presidential Decrees
and Letters of Instructions, not otherwise specifically
inconsistent with the provisions of this Act.
“SECTION 55. Exclusiveness of Benefits. — Whenever
other laws provide similar benefits for the same
contingencies covered by this Act, the member who
qualifies to the benefits shall have the option to 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.

“SECTION 56. Appropriations. — The amount necessary to

carry out the provisions of this Act shall be included in the
respective budgets of the agencies in the national
government obligation program of the year following its
enactment into law and thereafter.”

SECTION 2. Separability Clause. — Should any provision of

this Act or any part thereof be declared invalid, the other
provisions, so far as they are separable from the invalid
ones, shall remain in force and effect.

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 effectivity of this Act shall remain in force
and effect: Provided, further, That subsequent to the
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.

SECTION 4. Effectivity. — This Act shall take effect fifteen

(15) days after its publication in the Official Gazette or in
at least two (2) newspapers of general circulation.

Approved: May 30, 1997

REPUBLIC ACT NO. 8371
AN ACT TO RECOGNIZE, PROTECT AND PROMOTE
THE RIGHTS OF INDIGENOUS CULTURAL
COMMUNITIES/INDIGENOUS PEOPLES, CREATING
A NATIONAL COMMISSION ON INDIGENOUS
PEOPLES, ESTABLISHING IMPLEMENTING
MECHANISMS, APPROPRIATING FUNDS
THEREFOR, AND FOR OTHER PURPOSES
CHAPTER I
General Provisions
SECTION 1. Short Title. — This Act shall be
known as “The Indigenous Peoples’ Rights Act of 1997”.
SECTION 2. Declaration of State Policies. — The
State shall recognize and promote all the rights of
Indigenous Cultural Communities/Indigenous Peoples
(ICCs/IPs) hereunder enumerated within the framework of
the Constitution:
a) The State shall recognize and promote the rights
of ICCs/IPs within the framework of national unity and
development;
b) The State shall protect the rights of ICCs/IPs to
their ancestral domains to ensure their economic, social and
cultural well being and shall recognize the applicability of
customary laws governing property rights or relations in
determining the ownership and extent of ancestral domain;
c) The State shall recognize, respect and protect the
rights of ICCs/IPs to preserve and develop their cultures,
traditions and institutions. It shall consider these rights in
the formulation of national laws and policies;
d) The State shall guarantee that members of the
ICCs/IPs regardless of sex, shall equally enjoy the full
measure of human rights and freedoms without distinction
or discrimination;
e) The State shall take measures, with the
participation of the ICCs/IPs concerned, to protect their
rights and guarantee respect for their cultural integrity, and
to ensure that members of the ICCs/IPs benefit on an equal
footing from the rights and opportunities which national
laws and regulations grant to other members of the
population; and
f) The State recognizes its obligations to respond
to the strong expression of the ICCs/IPs for cultural
integrity by assuring maximum ICC/IP participation in the
direction of education, health, as well as other services of
ICCs/IPs, in order to render such services more responsive
to the needs and desires of these communities.
Towards these ends, the State shall institute and establish
the necessary mechanisms to enforce and guarantee the
realization of these rights, taking into consideration their
customs, traditions, values, beliefs, interests and
institutions, and to adopt and implement measures to
protect their rights to their ancestral domains.
CHAPTER II
Definition of Terms
SECTION 3. Definition of Terms. — For purposes
of this Act, the following terms shall mean:
a) Ancestral Domains — Subject to Section 56
hereof, refer to all areas generally belonging to ICCs/IPs
comprising lands, inland waters, coastal areas, and natural
resources therein, held under a claim of ownership,
occupied or possessed by ICCs/IPs, by themselves or
through their ancestors, communally or individually since
time immemorial, continuously to the present except when
interrupted by war, force majeure or displacement by force,
deceit, stealth or as a consequence of government projects
or any other voluntary dealings entered into by government
and private individuals/corporations, and which are
necessary to ensure their economic, social and cultural
welfare. It shall include ancestral lands, forests, pasture,
residential, agricultural, and other lands individually owned
whether alienable and disposable or otherwise, hunting
grounds, burial grounds, worship areas, bodies of water,
mineral and other natural resources, and lands which may
no longer be exclusively occupied by ICCs/IPs but from
which they traditionally had access to for their subsistence
and traditional activities, particularly the home ranges of
ICCs/IPs who are still nomadic and/or shifting cultivators;
b) Ancestral Lands — Subject to Section 56 hereof,
refers to land occupied, possessed and utilized by
individuals, families and clans who are members of the
ICCs/IPs since time immemorial, by themselves or through
their predecessors-in-interest, under claims of individual or
traditional group ownership, continuously, to the present
except when interrupted by war, force majeure or
displacement by force, deceit, stealth, or as a consequence
of government projects and other voluntary dealings
entered into by government and private
individuals/corporations, including, but not limited to,
residential lots, rice terraces or paddies, private forests,
swidden farms and tree lots;
c) Certificate of Ancestral Domain Title — refers
to a title formally recognizing the rights of possession and
ownership of ICCs/IPs over their ancestral domains
identified and delineated in accordance with this law;
d) Certificate of Ancestral Lands Title — refers to
a title formally recognizing the rights of ICCs/IPs over their
ancestral lands;
e) Communal Claims — refer to claims on land,
resources and rights thereon, belonging to the whole
community within a defined territory;
f) Customary Laws — refer to a body of written
and/or unwritten rules, usages, customs and practices
traditionally and continually recognized, accepted and
observed by respective ICCs/IPs;
g) Free and Prior Informed Consent — as used in
this Act shall mean the consensus of all members of the
ICCs/IPs to be determined in accordance with their
respective customary laws and practices, free from any
external manipulation, interference and coercion, and
obtained after fully disclosing the intent and scope of the
activity, in a language and process understandable to the
community;
h) Indigenous Cultural Communities/Indigenous
Peoples — refer to a group of people or homogenous
societies identified by self-ascription and ascription by
others, who have continuously lived as organized
community on communally bounded and defined territory,
and who have, under claims of ownership since time
immemorial, occupied, possessed and utilized such
territories, sharing common bonds of language, customs,
traditions and other distinctive cultural traits, or who have,
through resistance to political, social and cultural inroads of
colonization, non-indigenous religions and cultures,
became historically differentiated from the majority of
Filipinos. ICCs/IPs shall likewise include peoples who are
regarded as indigenous on account of their descent from the
populations which inhabited the country, at the time of
conquest or colonization, or at the time of inroads of non-
indigenous religions and cultures, or the establishment of
present state boundaries, who retain some or all of their
own social, economic, cultural and political institutions, but
who may have been displaced from their traditional
domains or who may have resettled outside their ancestral
domains;
i) Indigenous Political Structures — refer to
organizational and cultural leadership systems, institutions,
relationships, patterns and processes for decision-making
and participation, identified by ICCs/IPs such as, but not
limited to, Council of Elders, Council of Timuays, Bodong
Holders, or any other tribunal or body of similar nature;
j) Individual Claims — refer to claims on land and
rights thereon which have been devolved to individuals,
families and clans including, but not limited to, residential
lots, rice terraces or paddies and tree lots;
k) National Commission on Indigenous Peoples
(NCIP) — refers to the office created under this Act, which
shall be under the Office of the President, and which shall
be the primary government agency responsible for the
formulation and implementation of policies, plans and
programs to recognize, protect and promote the rights of
ICCs/IPs;
l) Native Title — refers to pre-conquest rights to
lands and domains which, as far back as memory reaches,
have been held under a claim of private ownership by
ICCs/IPs, have never been public lands and are thus
indisputably presumed to have been held that way since
before the Spanish Conquest;
m) Nongovernment Organization — refers to a
private, nonprofit voluntary organization that has been
organized primarily for the delivery of various services to
the ICCs/IPs and has an established track record for
effectiveness and acceptability in the community where it
serves;
n) People’s Organization — refers to a private,
nonprofit voluntary organization of members of an ICC/IP
which is accepted as representative of such ICCs/IPs;
o) Sustainable Traditional Resource Rights — refer
to the rights of ICCs/IPs to sustainably use, manage, protect
and conserve a) land, air, water, and minerals; b) plants,
animals and other organisms; c) collecting, fishing and
hunting grounds; d) sacred sites; and e) other areas of
economic, ceremonial and aesthetic value in accordance
with their indigenous knowledge, beliefs, systems and
practices; and
p) Time Immemorial — refers to a period of time
when as far back as memory can go, certain ICCs/IPs are
known to have occupied, possessed in the concept of
owner, and utilized a defined territory devolved to them, by
operation of customary law or inherited from their
ancestors, in accordance with their customs and traditions.
CHAPTER III
Rights to Ancestral Domains
SECTION 4. Concept of Ancestral Lands/Domains.
— Ancestral lands/domains shall include such concepts of
territories which cover not only the physical environment
but the total environment including the spiritual and
cultural bonds to the areas which the ICCs/IPs possess,
occupy and use and to which they have claims of
ownership.
SECTION 5. Indigenous Concept of Ownership. —
Indigenous concept of ownership sustains the view that
ancestral domains and all resources found therein shall
serve as the material bases of their cultural integrity. The
indigenous concept of ownership generally holds that
ancestral domains are the ICC’s/IP’s private but
community property which belongs to all generations and
therefore cannot be sold, disposed or destroyed. It likewise
covers sustainable traditional resource rights.
SECTION 6. Composition of Ancestral
Lands/Domains. — Ancestral lands and domains shall
consist of all areas generally belonging to ICCs/IPs as
referred under Sec. 3, items (a) and (b) of this Act.
SECTION 7. Rights to Ancestral Domains. — The
rights of ownership and possession of ICCs/IPs to their
ancestral domains shall be recognized and protected. Such
rights shall include:
a) Right of Ownership. — The right to claim
ownership over lands, bodies of water traditionally and
actually occupied by ICCs/IPs, sacred places, traditional
hunting and fishing grounds, and all improvements made
by them at any time within the domains;
b) Right to Develop Lands and Natural Resources.
— Subject to Section 56 hereof, right to develop, control
and use lands and territories traditionally occupied, owned,
or used; to manage and conserve natural resources within
the territories and uphold the responsibilities for future
generations; to benefit and share the profits from allocation
and utilization of the natural resources found therein; the
right to negotiate the terms and conditions for the
exploration of natural resources in the areas for the purpose
of ensuring ecological, environmental protection and the
conservation measures, pursuant to national and customary
laws; the right to an informed and intelligent participation
in the formulation and implementation of any project,
government or private, that will affect or impact upon the
ancestral domains and to receive just and fair compensation
for any damages which they may sustain as a result of the
project; and the right to effective measures by the
government to prevent any interference with, alienation and
encroachment upon these rights;
c) Right to Stay in the Territories. — The right to
stay in the territory and not to be removed therefrom. No
ICCs/IPs will be relocated without their free and prior
informed consent, nor through any means other than
eminent domain. Where relocation is considered necessary
as an exceptional measure, such relocation shall take place
only with the free and prior informed consent of the
ICCs/IPs concerned and whenever possible, they shall be
guaranteed the right to return to their ancestral domains, as
soon as the grounds for relocation cease to exist. When
such return is not possible, as determined by agreement or
through appropriate procedures, ICCs/IPs shall be provided
in all possible cases with lands of quality and legal status at
least equal to that of the land previously occupied by them,
suitable to provide for their present needs and future
development. Persons thus relocated shall likewise be fully
compensated for any resulting loss or injury;
d) Right in Case of Displacement. — In case
displacement occurs as a result of natural catastrophes, the
State shall endeavor to resettle the displaced ICCs/IPs in
suitable areas where they can have temporary life support
systems: Provided, That the displaced ICCs/IPs shall have
the right to return to their abandoned lands until such time
that the normalcy and safety of such lands shall be
determined: Provided, further, That should their ancestral
domain cease to exist and normalcy and safety of the
previous settlements are not possible, displaced ICCs/IPs
shall enjoy security of tenure over lands to which they have
been resettled: Provided, furthermore, That basic services
and livelihood shall be provided to them to ensure that their
needs are adequately addressed;
e) Right to Regulate Entry of Migrants. — Right to
regulate the entry of migrant settlers and organizations into
the domains;
f) Right to Safe and Clean Air and Water. — For
this purpose, the ICCs/IPs shall have access to integrated
systems for the management of their inland waters and air
space;
g) Right to Claim Parts of Reservations. — The
right to claim parts of the ancestral domains which have
been reserved for various purposes, except those reserved
and intended for common public welfare and service; and
h) Right to Resolve Conflict. — Right to resolve
land conflicts in accordance with customary laws of the
area where the land is located, and only in default thereof
shall the complaints be submitted to amicable settlement
and to the Courts of Justice whenever necessary.
SECTION 8. Rights to Ancestral Lands. — The
right of ownership and possession of the ICCs/IPs to their
ancestral lands shall be recognized and protected.
a) Right to transfer land/property. — Such right
shall include the right to transfer land or property rights
to/among members of the same ICCs/IPs, subject to
customary laws and traditions of the community concerned.
b) Right to Redemption. — In cases where it is
shown that the transfer of land/property rights by virtue of
any agreement or devise, to a non-member of the concerned
ICCs/IPs is tainted by the vitiated consent of the ICCs/IPs,
or is transferred for an unconscionable consideration or
price, the transferor ICC/IP shall have the right to redeem
the same within a period not exceeding fifteen (15) years
from the date of transfer.
SECTION 9. Responsibilities of ICCs/IPs to their
Ancestral Domains. — ICCs/IPs occupying a duly certified
ancestral domain shall have the following responsibilities:
a) Maintain Ecological Balance. — To preserve,
restore, and maintain a balanced ecology in the ancestral
domain by protecting the flora and fauna, watershed areas,
and other reserves;
b) Restore Denuded Areas. — To actively initiate,
undertake and participate in the reforestation of denuded
areas and other development programs and projects subject
to just and reasonable remuneration; and
c) Observe Laws. — To observe and comply with
the provisions of this Act and the rules and regulations for
its effective implementation.
SECTION 10. Unauthorized and Unlawful Intrusion.
— Unauthorized and unlawful intrusion upon, or use of any
portion of the ancestral domain, or any violation of the
rights hereinbefore enumerated, shall be punishable under
this law. Furthermore, the Government shall take measures
to prevent non-ICCs/IPs from taking advantage of the
ICCs/IPs customs or lack of understanding of laws to
secure ownership, possession of land belonging to said
ICCs/IPs.
SECTION 11. Recognition of Ancestral Domain
Rights. — The rights of ICCs/IPs to their ancestral domains
by virtue of Native Title shall be recognized and respected.
Formal recognition, when solicited by ICCs/IPs concerned,
shall be embodied in a Certificate of Ancestral Domain
Title (CADT), which shall recognize the title of the
concerned ICCs/IPs over the territories identified and
delineated.
SECTION 12. Option to Secure Certificate of Title
Under Commonwealth Act 141, as amended, or the Land
Registration Act 496. — Individual members of cultural
communities, with respect to their individually-owned
ancestral lands who, by themselves or through their
predecessors-in-interest, have been in continuous
possession and occupation of the same in the concept of
owner since time immemorial or for a period of not less
than thirty (30) years immediately preceding the approval
of this Act and uncontested by the members of the same
ICCs/IPs shall have the option to secure title to their
ancestral lands under the provisions of Commonwealth Act
141, as amended, or the Land Registration Act 496.
For this purpose, said individually-owned ancestral lands,
which are agricultural in character and actually used for
agricultural, residential, pasture, and tree farming purposes,
including those with a slope of eighteen percent (18%) or
more, are hereby classified as alienable and disposable
agricultural lands.
The option granted under this section shall be exercised
within twenty (20) years from the approval of this Act.
CHAPTER IV
Right to Self-Governance and Empowerment
SECTION 13. Self-Governance. — The State
recognizes the inherent right of ICCs/IPs to self-
governance and self-determination and respects the
integrity of their values, practices and institutions.
Consequently, the State shall guarantee the right of
ICCs/IPs to freely pursue their economic, social and
cultural development.
SECTION 14. Support for Autonomous Regions. —
The State shall continue to strengthen and support the
autonomous regions created under the Constitution as they
may require or need. The State shall likewise encourage
other ICCs/IPs not included or outside Muslim Mindanao
and the Cordilleras to use the form and content of their
ways of life as may be compatible with the fundamental
rights defined in the Constitution of the Republic of the
Philippines and other internationally recognized human
rights.
SECTION 15. Justice System, Conflict Resolution
Institutions, and Peace Building Processes. — The
ICCs/IPs shall have the right to use their own commonly
accepted justice systems, conflict resolution institutions,
peace building processes or mechanisms and other
customary laws and practices within their respective
communities and as may be compatible with the national
legal system and with internationally recognized human
rights.
SECTION 16. Right to Participate in Decision-
Making. — ICCs/IPs have the right to participate fully, if
they so choose, at all levels of decision-making in matters
which may affect their rights, lives and destinies through
procedures determined by them as well as to maintain and
develop their own indigenous political structures.
Consequently, the State shall ensure that the ICCs/IPs shall
be given mandatory representation in policy-making bodies
and other local legislative councils.
SECTION 17. Right to Determine and Decide
Priorities for Development. — The ICCs/IPs shall have the
right to determine and decide their own priorities for
development affecting their lives, beliefs, institutions,
spiritual well-being, and the lands they own, occupy or use.
They shall participate in the formulation, implementation
and evaluation of policies, plans and programs for national,
regional and local development which may directly affect
them.
SECTION 18. Tribal Barangays. — The ICCs/IPs
living in contiguous areas or communities where they form
the predominant population but which are located in
municipalities, provinces or cities where they do not
constitute the majority of the population, may form or
constitute a separate barangay in accordance with the Local
Government Code on the creation of tribal barangays.
SECTION 19. Role of Peoples Organizations. — The
State shall recognize and respect the role of independent
ICCs/IPs organizations to enable the ICCs/IPs to pursue
and protect their legitimate and collective interests and
aspirations through peaceful and lawful means.
SECTION 20. Means for Development/Empowerment
of ICCs/IPs. — The Government shall establish the means
for the full development/empowerment of the ICCs/IPs
own institutions and initiatives and, where necessary,
provide the resources needed therefor.
CHAPTER V
Social Justice and Human Rights
SECTION 21. Equal Protection and Non-
discrimination of ICCs/IPs. — Consistent with the equal
protection clause of the Constitution of the Republic of the
Philippines, the Charter of the United Nations, the
Universal Declaration of Human Rights including the
Convention on the Elimination of Discrimination Against
Women and International Human Rights Law, the State
shall, with due recognition of their distinct characteristics
and identity, accord to the members of the ICCs/IPs the
rights, protections and privileges enjoyed by the rest of the
citizenry. It shall extend to them the same employment
rights, opportunities, basic services, educational and other
rights and privileges available to every member of the
society. Accordingly, the State shall likewise ensure that
the employment of any form of force or coercion against
ICCs/IPs shall be dealt with by law.
The State shall ensure that the fundamental human rights
and freedoms as enshrined in the Constitution and relevant
international instruments are guaranteed also to indigenous
women. Towards this end, no provision in this Act shall be
interpreted so as to result in the diminution of rights and
privileges already recognized and accorded to women
under existing laws of general application.
SECTION 22. Rights During Armed Conflict. —
ICCs/IPs have the right to special protection and security in
periods of armed conflict. The State shall observe
international standards, in particular, the Fourth Geneva
Convention of 1949, for the protection of civilian
populations in circumstances of emergency and armed
conflict, and shall not recruit members of the ICCs/IPs
against their will into the armed forces, and in particular,
for use against other ICCs/IPs; nor recruit children of
ICCs/IPs into the armed forces under any circumstance; nor
force indigenous individuals to abandon their lands,
territories and means of subsistence, or relocate them in
special centers for military purposes under any
discriminatory condition.
SECTION 23. Freedom from Discrimination and
Right to Equal Opportunity and Treatment. — It shall be
the right of the ICCs/IPs to be free from any form of
discrimination, with respect to recruitment and conditions
of employment, such that they may enjoy equal
opportunities for admission to employment, medical and
social assistance, safety as well as other occupationally-
related benefits, informed of their rights under existing
labor legislation and of means available to them for redress,
not subject to any coercive recruitment systems, including
bonded labor and other forms of debt servitude; and equal
treatment in employment for men and women, including
the protection from sexual harassment.
Towards this end, the State shall, within the framework of
national laws and regulations, and in cooperation with the
ICCs/IPs concerned, adopt special measures to ensure the
effective protection with regard to the recruitment and
conditions of employment of persons belonging to these
communities, to the extent that they are not effectively
protected by laws applicable to workers in general.
ICCs/IPs shall have the right to association and freedom for
all trade union activities and the right to conclude collective
bargaining agreements with employers’ organizations.
They shall likewise have the right not to be subject to
working conditions hazardous to their health, particularly
through exposure to pesticides and other toxic substances.
SECTION 24. Unlawful Acts Pertaining to
Employment. — It shall be unlawful for any person:
a) To discriminate against any ICC/IP with respect
to the terms and conditions of employment on account of
their descent. Equal remuneration shall be paid to ICC/IP
and non-ICC/IP for work of equal value; and
b) To deny any ICC/IP employee any right or
benefit herein provided for or to discharge them for the
purpose of preventing them from enjoying any of the rights
or benefits provided under this Act.
SECTION 25. Basic Services. — The ICCs/IPs have
the right to special measures for the immediate, effective
and continuing improvement of their economic and social
conditions, including in the areas of employment,
vocational training and retraining, housing, sanitation,
health and social security. Particular attention shall be paid
to the rights and special needs of indigenous women,
elderly, youth, children and differently-abled persons.
Accordingly, the State shall guarantee the right of ICCs/IPs
to government’s basic services which shall include, but not
limited to, water and electrical facilities, education, health,
and infrastructure.
SECTION 26. Women. — ICC/IP women shall enjoy
equal rights and opportunities with men, as regards the
social, economic, political and cultural spheres of life. The
participation of indigenous women in the decision-making
process in all levels, as well as in the development of
society, shall be given due respect and recognition.
The State shall provide full access to education, maternal
and child care, health and nutrition, and housing services to
indigenous women. Vocational, technical, professional and
other forms of training shall be provided to enable these
women to fully participate in all aspects of social life. As
far as possible, the State shall ensure that indigenous
women have access to all services in their own languages.
SECTION 27. Children and Youth. — The State shall
recognize the vital role of the children and youth of
ICCs/IPs in nation-building and shall promote and protect
their physical, moral, spiritual, intellectual and social well-
being. Towards this end, the State shall support all
government programs intended for the development and
rearing of the children and youth of ICCs/IPs for civic
efficiency and establish such mechanisms as may be
necessary for the protection of the rights of the indigenous
children and youth.
SECTION 28. Integrated System of Education. — The
State shall, through the NCIP, provide a complete, adequate
and integrated system of education, relevant to the needs of
the children and young people of ICCs/IPs.
CHAPTER VI
Cultural Integrity
SECTION 29. Protection of Indigenous Culture,
Traditions and Institutions. — The State shall respect,
recognize and protect the right of ICCs/IPs to preserve and
protect their culture, traditions and institutions. It shall
consider these rights in the formulation and application of
national plans and policies.
SECTION 30. Educational Systems. — The State
shall provide equal access to various cultural opportunities
to the ICCs/IPs through the educational system, public or
private cultural entities, scholarships, grants and other
incentives without prejudice to their right to establish and
control their educational systems and institutions by
providing education in their own language, in a manner
appropriate to their cultural methods of teaching and
learning. Indigenous children/youth shall have the right to
all levels and forms of education of the State.
SECTION 31. Recognition of Cultural Diversity. —
The State shall endeavor to have the dignity and diversity
of the cultures, traditions, histories and aspirations of the
ICCs/IPs appropriately reflected in all forms of education,
public information and cultural-educational exchange.
Consequently, the State shall take effective measures, in
consultation with ICCs/IPs concerned, to eliminate
prejudice and discrimination and to promote tolerance,
understanding and good relations among ICCs/IPs and all
segments of society. Furthermore, the Government shall
take effective measures to ensure that the State-owned
media duly reflect indigenous cultural diversity. The State
shall likewise ensure the participation of appropriate
indigenous leaders in schools, communities and
international cooperative undertakings like festivals,
conferences, seminars and workshops to promote and
enhance their distinctive heritage and values.
SECTION 32. Community Intellectual Rights. —
ICCs/IPs have the right to practice and revitalize their own
cultural traditions and customs. The State shall preserve,
protect and develop the past, present and future
manifestations of their cultures as well as the right to the
restitution of cultural, intellectual, religious, and spiritual
property taken without their free and prior informed
consent or in violation of their laws, traditions and customs.
SECTION 33. Rights to Religious, Cultural Sites and
Ceremonies. — ICCs/IPs shall have the right to manifest,
practice, develop, and teach their spiritual and religious
traditions, customs and ceremonies; the right to maintain,
protect and have access to their religious and cultural sites;
the right to use and control of ceremonial objects; and, the
right to the repatriation of human remains. Accordingly, the
State shall take effective measures, in cooperation with the
ICCs/IPs concerned, to ensure that indigenous sacred
places, including burial sites, be preserved, respected and
protected. To achieve this purpose, it shall be unlawful to:
a) Explore, excavate or make diggings on
archeological sites of the ICCs/IPs for the purpose of
obtaining materials of cultural values without the free and
prior informed consent of the community concerned; and
b) Deface, remove or otherwise destroy artifacts
which are of great importance to the ICCs/IPs for the
preservation of their cultural heritage.
SECTION 34. Right to Indigenous Knowledge
Systems and Practices and to Develop own Sciences and
Technologies. — ICCs/IPs are entitled to the recognition of
the full ownership and control and protection of their
cultural and intellectual rights. They shall have the right to
special measures to control, develop and protect their
sciences, technologies and cultural manifestations,
including human and other genetic resources, seeds,
including derivatives of these resources, traditional
medicines and health practices, vital medicinal plants,
animals and minerals, indigenous knowledge systems and
practices, knowledge of the properties of fauna and flora,
oral traditions, literature, designs, and visual and
performing arts.
SECTION 35. Access to Biological and Genetic
Resources. — Access to biological and genetic resources
and to indigenous knowledge related to the conservation,
utilization and enhancement of these resources, shall be
allowed within ancestral lands and domains of the ICCs/IPs
only with a free and prior informed consent of such
communities, obtained in accordance with customary laws
of the concerned community.
SECTION 36. Sustainable Agro-Technical
Development. — The State shall recognize the right of
ICCs/IPs to a sustainable agro-technological development
and shall formulate and implement programs of action for
its effective implementation. The State shall likewise
promote the bio-genetic and resource management systems
among the ICCs/IPs and shall encourage cooperation
among government agencies to ensure the successful
sustainable development of ICCs/IPs.
SECTION 37. Funds for Archeological and Historical
Sites. — The ICCs/IPs shall have the right to receive from
the national government all funds especially earmarked or
allocated for the management and preservation of their
archeological and historical sites and artifacts with the
financial and technical support of the national government
agencies.
CHAPTER VII
National Commission on Indigenous Peoples (NCIP)
SECTION 38. National Commission on Indigenous
Cultural Communities/Indigenous Peoples (NCIP). — To
carry out the policies herein set forth, there shall be created
the National Commission on ICCs/IPs (NCIP), which shall
be the primary government agency responsible for the
formulation and implementation of policies, plans and
programs to promote and protect the rights and well-being
of the ICCs/IPs and the recognition of their ancestral
domains as well as the rights thereto.
SECTION 39. Mandate. — The NCIP shall protect
and promote the interest and well-being of the ICCs/IPs
with due regard to their beliefs, customs, traditions and
institutions.
SECTION 40. Composition. — The NCIP shall be an
independent agency under the Office of the President and
shall be composed of seven (7) Commissioners belonging
to ICCs/IPs, one (1) of whom shall be the Chairperson. The
Commissioners shall be appointed by the President of the
Philippines from a list of recommendees submitted by
authentic ICCs/IPs: Provided, That the seven (7)
Commissioners shall be appointed specifically from each of
the following ethnographic areas: Region I and the
Cordilleras; Region II; the rest of Luzon; Island Groups
including Mindoro, Palawan, Romblon, Panay and the rest
of the Visayas; Northern and Western Mindanao; Southern
and Eastern Mindanao; and Central Mindanao: Provided,
That at least two (2) of the seven (7) Commissioners shall
be women.
SECTION 41. Qualifications, Tenure, Compensation.
— The Chairperson and the six (6) Commissioners must be
natural born Filipino citizens, bona fide members of the
ICCs/IPs as certified by his/her tribe, experienced in ethnic
affairs and who have worked for at least ten (10) years with
an ICC/IP community and/or any government agency
involved in ICC/IP, at least 35 years of age at the time of
appointment, and must be of proven honesty and integrity:
Provided, That at least two (2) of the seven (7)
Commissioners shall be members of the Philippine Bar:
Provided, further, That the members of the NCIP shall hold
office for a period of three (3) years, and may be subject to
re-appointment for another term: Provided, furthermore,
That no person shall serve for more than two (2) terms.
Appointment to any vacancy shall only be for the
unexpired term of the predecessor and in no case shall a
member be appointed or designated in a temporary or
acting capacity: Provided, finally, That the Chairperson and
the Commissioners shall be entitled to compensation in
accordance with the Salary Standardization Law.
SECTION 42. Removal from Office. — Any member
of the NCIP may be removed from office by the President,
on his own initiative or upon recommendation by any
indigenous community, before the expiration of his term
for cause and after complying with due process requirement
of law.
SECTION 43. Appointment of Commissioners. —
The President shall appoint the seven (7) Commissioners of
the NCIP within ninety (90) days from the effectivity of
this Act.
SECTION 44. Powers and Functions. — To
accomplish its mandate, the NCIP shall have the following
powers, jurisdiction and function:
a) To serve as the primary government agency
through which ICCs/IPs can seek government assistance
and as the medium, through which such assistance may be
extended;
b) To review and assess the conditions of ICCs/IPs
including existing laws and policies pertinent thereto and to
propose relevant laws and policies to address their role in
national development;
c) To formulate and implement policies, plans,
programs and projects for the economic, social and cultural
development of the ICCs/IPs and to monitor the
implementation thereof;
d) To request and engage the services and support
of experts from other agencies of government or employ
private experts and consultants as may be required in the
pursuit of its objectives;
e) To issue certificate of ancestral land/domain
title;
f) Subject to existing laws, to enter into contracts,
agreements, or arrangement, with government or private
agencies or entities as may be necessary to attain the
objectives of this Act, and subject to the approval of the
President, to obtain loans from government lending
institutions and other lending institutions to finance its
programs;
g) To negotiate for funds and to accept grants,
donations, gifts and/or properties in whatever form and
from whatever source, local and international, subject to the
approval of the President of the Philippines, for the benefit
of ICCs/IPs and administer the same in accordance with the
terms thereof; or in the absence of any condition, in such
manner consistent with the interest of ICCs/IPs as well as
existing laws;
h) To coordinate development programs and
projects for the advancement of the ICCs/IPs and to
oversee the proper implementation thereof;
i) To convene periodic conventions or assemblies
of IPs to review, assess as well as propose policies or plans;
j) To advise the President of the Philippines on all
matters relating to the ICCs/IPs and to submit within sixty
(60) days after the close of each calendar year, a report of
its operations and achievements;
k) To submit to Congress appropriate legislative
proposals intended to carry out the policies under this Act;
l) To prepare and submit the appropriate budget to
the Office of the President;
m) To issue appropriate certification as a pre-
condition to the grant of permit, lease, grant, or any other
similar authority for the disposition, utilization,
management and appropriation by any private individual,
corporate entity or any government agency, corporation or
subdivision thereof on any part or portion of the ancestral
domain taking into consideration the consensus approval of
the ICCs/IPs concerned;
n) To decide all appeals from the decisions and acts
of all the various offices within the Commission;
o) To promulgate the necessary rules and
regulations for the implementation of this Act;
p) To exercise such other powers and functions as
may be directed by the President of the Republic of the
Philippines; and
q) To represent the Philippine ICCs/IPs in all
international conferences and conventions dealing with
indigenous peoples and other related concerns.
SECTION 45. Accessibility and Transparency. —
Subject to such limitations as may be provided by law or by
rules and regulations promulgated pursuant thereto, all
official records, documents and papers pertaining to official
acts, transactions or decisions, as well as research data used
as basis for policy development of the Commission shall be
made accessible to the public.
SECTION 46. Offices within the NCIP. — The NCIP
shall have the following offices which shall be responsible
for the implementation of the policies hereinafter provided:
a) Ancestral Domains Office — The Ancestral
Domain Office shall be responsible for the identification,
delineation and recognition of ancestral lands/domains. It
shall also be responsible for the management of ancestral
lands/domains in accordance with a master plan as well as
the implementation of the ancestral domain rights of the
ICCs/IPs as provided in Chapter III of this Act. It shall also
issue, upon the free and prior informed consent of the
ICCs/IPs concerned, certification prior to the grant of any
license, lease or permit for the exploitation of natural
resources affecting the interests of ICCs/IPs or their
ancestral domains and to assist the ICCs/IPs in protecting
the territorial integrity of all ancestral domains. It shall
likewise perform such other functions as the Commission
may deem appropriate and necessary;
b) Office on Policy, Planning and Research — The
Office on Policy, Planning and Research shall be
responsible for the formulation of appropriate policies and
programs for ICCs/IPs such as, but not limited to, the
development of a Five-Year Master Plan for the ICCs/IPs.
Such plan shall undergo a process such that every five
years, the Commission shall endeavor to assess the plan
and make ramifications in accordance with the changing
situations. The Office shall also undertake the
documentation of customary law and shall establish and
maintain a Research Center that would serve as a
depository of ethnographic information for monitoring,
evaluation and policy formulation. It shall assist the
legislative branch of the national government in the
formulation of appropriate legislation benefiting ICCs/IPs;
c) Office of Education, Culture and Health — The
Office on Culture, Education and Health shall be
responsible for the effective implementation of the
education, cultural and related rights as provided in this
Act. It shall assist, promote and support community
schools, both formal and non-formal, for the benefit of the
local indigenous community, especially in areas where
existing educational facilities are not accessible to members
of the indigenous group. It shall administer all scholarship
programs and other educational rights intended for ICC/IP
beneficiaries in coordination with the Department of
Education, Culture and Sports and the Commission on
Higher Education. It shall undertake, within the limits of
available appropriation, a special program which includes
language and vocational training, public health and family
assistance program and related subjects.
It shall also identify ICCs/IPs with potential training in the
health profession and encourage and assist them to enroll in
schools of medicine, nursing, physical therapy and other
allied courses pertaining to the health profession.
Towards this end, the NCIP shall deploy a representative in
each of the said offices who shall personally perform the
foregoing task and who shall receive complaints from the
ICCs/IPs and compel action from appropriate agency. It
shall also monitor the activities of the National Museum
and other similar government agencies generally intended
to manage and preserve historical and archeological
artifacts of the ICCs/IPs and shall be responsible for the
implementation of such other functions as the NCIP may
deem appropriate and necessary;
d) Office on Socio-Economic Services and Special
Concerns — The Office on Socio-Economic Services and
Special Concerns shall serve as the Office through which
the NCIP shall coordinate with pertinent government
agencies specially charged with the implementation of
various basic socio-economic services, policies, plans and
programs affecting the ICCs/IPs to ensure that the same are
properly and directly enjoyed by them. It shall also be
responsible for such other functions as the NCIP may deem
appropriate and necessary;
e) Office of Empowerment and Human Rights —
The Office of Empowerment and Human Rights shall
ensure that indigenous socio-political, cultural and
economic rights are respected and recognized. It shall
ensure that capacity building mechanisms are instituted and
ICCs/IPs are afforded every opportunity, if they so choose,
to participate in all levels of decision-making. It shall
likewise ensure that the basic human rights, and such other
rights as the NCIP may determine, subject to existing laws,
rules and regulations, are protected and promoted;
f) Administrative Office — The Administrative
Office shall provide the NCIP with economical, efficient
and effective services pertaining to personnel, finance,
records, equipment, security, supplies and related services.
It shall also administer the Ancestral Domains Fund; and
g) Legal Affairs Office — There shall be a Legal
Affairs Office which shall advice the NCIP on all legal
matters concerning ICCs/IPs and which shall be
responsible for providing ICCs/IPs with legal assistance in
litigation involving community interest. It shall conduct
preliminary investigation on the basis of complaints filed
by the ICCs/IPs against a natural or juridical person
believed to have violated ICCs/IPs rights. On the basis of
its findings, it shall initiate the filing of appropriate legal or
administrative action to the NCIP.
SECTION 47. Other Offices. — The NCIP shall have
the power to create additional offices as it may deem
necessary subject to existing rules and regulations.
SECTION 48. Regional and Field Offices. — Existing
regional and field offices shall remain to function under the
strengthened organizational structure of the NCIP. Other
field offices shall be created wherever appropriate and the
staffing pattern thereof shall be determined by the NCIP:
Provided, That in provinces where there are ICCs/IPs but
without field offices, the NCIP shall establish field offices
in said provinces.
SECTION 49. Office of the Executive Director. —
The NCIP shall create the Office of the Executive Director
which shall serve as its secretariat. The Office shall be
headed by an Executive Director who shall be appointed by
the President of the Republic of the Philippines upon
recommendation of the NCIP on a permanent basis. The
staffing pattern of the office shall be determined by the
NCIP subject to the existing rules and regulations.
SECTION 50. Consultative Body. — A body
consisting of the traditional leaders, elders and
representatives from the women and youth sectors of the
different ICCs/IPs shall be constituted by the NCIP from
time to time to advise it on matters relating to the problems,
aspirations and interests of the ICCs/IPs.
CHAPTER VIII
Delineation and Recognition of Ancestral Domains
SECTION 51. Delineation and Recognition of
Ancestral Domains. — Self-delineation shall be the guiding
principle in the identification and delineation of ancestral
domains. As such, the ICCs/IPs concerned shall have a
decisive role in all the activities pertinent thereto. The
Sworn Statement of the Elders as to the scope of the
territories and agreements/pacts made with neighboring
ICCs/IPs, if any, will be essential to the determination of
these traditional territories. The Government shall take the
necessary steps to identify lands which the ICCs/IPs
concerned traditionally occupy and guarantee effective
protection of their rights of ownership and possession
thereto. Measures shall be taken in appropriate cases to
safeguard the right of the ICCs/IPs concerned to land which
may no longer be exclusively occupied by them, but to
which they have traditionally had access for their
subsistence and traditional activities, particularly of
ICCs/IPs who are still nomadic and/or shifting cultivators.
SECTION 52. Delineation Process. — The
identification and delineation of ancestral domains shall be
done in accordance with the following procedures:
a) Ancestral Domains Delineated Prior to this Act.
— The provisions hereunder shall not apply to ancestral
domains/lands already delineated according to DENR
Administrative Order No. 2, series of 1993, nor to ancestral
lands and domains delineated under any other
community/ancestral domain program prior to the
enactment of this law. ICCs/IPs whose ancestral
lands/domains were officially delineated prior to the
enactment of this law shall have the right to apply for the
issuance of a Certificate of Ancestral Domain Title
(CADT) over the area without going through the process
outlined hereunder;
b) Petition for Delineation. — The process of
delineating a specific perimeter may be initiated by the
NCIP with the consent of the ICC/IP concerned, or through
a Petition for Delineation filed with the NCIP, by a
majority of the members of the ICCs/IPs;
c) Delineation Proper. — The official delineation
of ancestral domain boundaries including census of all
community members therein, shall be immediately
undertaken by the Ancestral Domains Office upon filing of
the application by the ICCs/IPs concerned. Delineation will
be done in coordination with the community concerned and
shall at all times include genuine involvement and
participation by the members of the communities
concerned;
d) Proof Required. — Proof of Ancestral Domain
Claims shall include the testimony of elders or community
under oath, and other documents directly or indirectly
attesting to the possession or occupation of the area since
time immemorial by such ICCs/IPs in the concept of
owners which shall be any one (1) of the following
authentic documents:
1) Written accounts of the ICCs/IPs customs and
traditions;
2) Written accounts of the ICCs/IPs political
structure and institution;
3) Pictures showing long term occupation such as
those of old improvements, burial grounds, sacred places
and old villages;
4) Historical accounts, including pacts and
agreements concerning boundaries entered into by the
ICCs/IPs concerned with other ICCs/IPs;
5) Survey plans and sketch maps;
6) Anthropological data;
7) Genealogical surveys;
8) Pictures and descriptive histories of traditional
communal forests and hunting grounds;
9) Pictures and descriptive histories of traditional
landmarks such as mountains, rivers, creeks, ridges, hills,
terraces and the like; and
10) Write-ups of names and places derived from the
native dialect of the community.
e) Preparation of Maps. — On the basis of such
investigation and the findings of fact based thereon, the
Ancestral Domains Office of the NCIP shall prepare a
perimeter map, complete with technical descriptions, and a
description of the natural features and landmarks embraced
therein;
f) Report of Investigation and Other Documents.
— A complete copy of the preliminary census and a report
of investigation, shall be prepared by the Ancestral
Domains Office of the NCIP;
g) Notice and Publication. — A copy of each
document, including a translation in the native language of
the ICCs/IPs concerned shall be posted in a prominent
place therein for at least fifteen (15) days. A copy of the
document shall also be posted at the local, provincial and
regional offices of the NCIP, and shall be published in a
newspaper of general circulation once a week for two (2)
consecutive weeks to allow other claimants to file
opposition thereto within fifteen (15) days from date of
such publication: Provided, That in areas where no such
newspaper exists, broadcasting in a radio station will be a
valid substitute: Provided, further, That mere posting shall
be deemed sufficient if both newspaper and radio station
are not available;
h) Endorsement to NCIP. — Within fifteen (15)
days from publication, and of the inspection process, the
Ancestral Domains Office shall prepare a report to the
NCIP endorsing a favorable action upon a claim that is
deemed to have sufficient proof. However, if the proof is
deemed insufficient, the Ancestral Domains Office shall
require the submission of additional evidence: Provided,
That the Ancestral Domains Office shall reject any claim
that is deemed patently false or fraudulent after inspection
and verification: Provided, further, That in case of
rejection, the Ancestral Domains Office shall give the
applicant due notice, copy furnished all concerned,
containing the grounds for denial. The denial shall be
appealable to the NCIP: Provided, furthermore, That in
cases where there are conflicting claims among ICCs/IPs
on the boundaries of ancestral domain claims, the Ancestral
Domains Office shall cause the contending parties to meet
and assist them in coming up with a preliminary resolution
of the conflict, without prejudice to its full adjudication
according to the section below.
i) Turnover of Areas Within Ancestral Domains
Managed by Other Government Agencies. — The
Chairperson of the NCIP shall certify that the area covered
is an ancestral domain. The secretaries of the Department
of Agrarian Reform, Department of Environment and
Natural Resources, Department of the Interior and Local
Government, and Department of Justice, the Commissioner
of the National Development Corporation, and any other
government agency claiming jurisdiction over the area shall
be notified thereof. Such notification shall terminate any
legal basis for the jurisdiction previously claimed;
j) Issuance of CADT . — ICCs/IPs whose
ancestral domains have been officially delineated and
determined by the NCIP shall be issued a CADT in the
name of the community concerned, containing a list of all
those identified in the census; and
k) Registration of CADTs. — The NCIP shall
register issued certificates of ancestral domain titles and
certificates of ancestral lands titles before the Register of
Deeds in the place where the property is situated.
SECTION 53. Identification, Delineation and
Certification of Ancestral Lands. —
a) The allocation of lands within any ancestral
domain to individual or indigenous corporate (family or
clan) claimants shall be left to the ICCs/IPs concerned to
decide in accordance with customs and traditions;
b) Individual and indigenous corporate claimants of
ancestral lands which are not within ancestral domains,
may have their claims officially established by filing
applications for the identification and delineation of their
claims with the Ancestral Domains Office. An individual or
recognized head of a family or clan may file such
application in his behalf or in behalf of his family or clan,
respectively;
c) Proofs of such claims shall accompany the
application form which shall include the testimony under
oath of elders of the community and other documents
directly or indirectly attesting to the possession or
occupation of the areas since time immemorial by the
individual or corporate claimants in the concept of owners
which shall be any of the authentic documents enumerated
under Sec. 52 (d) of this Act, including tax declarations and
proofs of payment of taxes;
d) The Ancestral Domains Office may require from
each ancestral claimant the submission of such other
documents, Sworn Statements and the like, which in its
opinion, may shed light on the veracity of the contents of
the application/claim;
e) Upon receipt of the applications for delineation
and recognition of ancestral land claims, the Ancestral
Domains Office shall cause the publication of the
application and a copy of each document submitted
including a translation in the native language of the
ICCs/IPs concerned in a prominent place therein for at least
fifteen (15) days. A copy of the document shall also be
posted at the local, provincial, and regional offices of the
NCIP and shall be published in a newspaper of general
circulation once a week for two (2) consecutive weeks to
allow other claimants to file opposition thereto within
fifteen (15) days from the date of such publication:
Provided, That in areas where no such newspaper exists,
broadcasting in a radio station will be a valid substitute:
Provided, further, That mere posting shall be deemed
sufficient if both newspapers and radio station are not
available;
f) Fifteen (15) days after such publication, the
Ancestral Domains Office shall investigate and inspect
each application, and if found to be meritorious, shall cause
a parcellary survey of the area being claimed. The
Ancestral Domains Office shall reject any claim that is
deemed patently false or fraudulent after inspection and
verification. In case of rejection, the Ancestral Domains
Office shall give the applicant due notice, copy furnished
all concerned, containing the grounds for denial. The denial
shall be appealable to the NCIP. In case of conflicting
claims among individuals or indigenous corporate
claimants, the Ancestral Domains Office shall cause the
contending parties to meet and assist them in coming up
with a preliminary resolution of the conflict, without
prejudice to its full adjudication according to Sec. 62 of this
Act. In all proceedings for the identification or delineation
of the ancestral domains as herein provided, the Director of
Lands shall represent the interest of the Republic of the
Philippines; and
g) The Ancestral Domains Office shall prepare and
submit a report on each and every application surveyed and
delineated to the NCIP, which shall, in turn, evaluate the
report submitted. If the NCIP finds such claim meritorious,
it shall issue a certificate of ancestral land, declaring and
certifying the claim of each individual or corporate (family
or clan) claimant over ancestral lands.
SECTION 54. Fraudulent Claims. — The Ancestral
Domains Office may, upon written request from the
ICCs/IPs, review existing claims which have been
fraudulently acquired by any person or community. Any
claim found to be fraudulently acquired by, and issued to,
any person or community may be cancelled by the NCIP
after due notice and hearing of all parties concerned.
SECTION 55. Communal Rights. — Subject to
Section 56 hereof, areas within the ancestral domains,
whether delineated or not, shall be presumed to be
communally held: Provided, That communal rights under
this Act shall not be construed as co-ownership as provided
in Republic Act No. 386, otherwise known as the New
Civil Code.
SECTION 56. Existing Property Rights Regimes. —
Property rights within the ancestral domains already
existing and/or vested upon effectivity of this Act, shall be
recognized and respected.
SECTION 57. Natural Resources within Ancestral
Domains. — The ICCs/IPs shall have priority rights in the
harvesting, extraction, development or exploitation of any
natural resources within the ancestral domains. A non-
member of the ICCs/IPs concerned may be allowed to take
part in the development and utilization of the natural
resources for a period of not exceeding twenty-five (25)
years renewable for not more than twenty-five (25) years:
Provided, That a formal and written agreement is entered
into with the ICCs/IPs concerned or that the community,
pursuant to its own decision making process, has agreed to
allow such operation: Provided, finally, That the NCIP may
exercise visitorial powers and take appropriate action to
safeguard the rights of the ICCs/IPs under the same
contract.
SECTION 58. Environmental Considerations. —
Ancestral domains or portions thereof, which are found to
be necessary for critical watersheds, mangroves, wildlife
sanctuaries, wilderness, protected areas, forest cover, or
reforestation as determined by appropriate agencies with
the full participation of the ICCs/IPs concerned shall be
maintained, managed and developed for such purposes. The
ICCs/IPs concerned shall be given the responsibility to
maintain, develop, protect and conserve such areas with the
full and effective assistance of government agencies.
Should the ICCs/IPs decide to transfer the responsibility
over the areas, said decision must be made in writing. The
consent of the ICCs/IPs should be arrived at in accordance
with its customary laws without prejudice to the basic
requirements of existing laws on free and prior informed
consent: Provided, That the transfer shall be temporary and
will ultimately revert to the ICCs/IPs in accordance with a
program for technology transfer: Provided, further, That no
ICCs/IPs shall be displaced or relocated for the purpose
enumerated under this section without the written consent
of the specific persons authorized to give consent.
SECTION 59. Certification Precondition. — All
departments and other governmental agencies shall
henceforth be strictly enjoined from issuing, renewing, or
granting any concession, license or lease, or entering into
any production-sharing agreement, without prior
certification from the NCIP that the area affected does not
overlap with any ancestral domain. Such certification shall
only be issued after a field-based investigation is conducted
by the Ancestral Domains Office of the area concerned:
Provided, That no certification shall be issued by the NCIP
without the free and prior informed and written consent of
ICCs/IPs concerned: Provided, further, That no department,
government agency or government-owned or -controlled
corporation may issue new concession, license, lease, or
production sharing agreement while there is a pending
application for a CADT: Provided, finally, That the
ICCs/IPs shall have the right to stop or suspend, in
accordance with this Act, any project that has not satisfied
the requirement of this consultation process.
SECTION 60. Exemption from Taxes. — All lands
certified to be ancestral domains shall be exempt from real
property taxes, special levies, and other forms of exaction
except such portion of the ancestral domains as are actually
used for large-scale agriculture, commercial forest
plantation and residential purposes or upon titling by
private persons: Provided, That all exactions shall be used
to facilitate the development and improvement of the
ancestral domains.
SECTION 61. Temporary Requisition Powers. —
Prior to the establishment of an institutional surveying
capacity whereby it can effectively fulfill its mandate, but
in no case beyond three (3) years after its creation, the
NCIP is hereby authorized to request the Department of
Environment and Natural Resources (DENR) survey teams
as well as other equally capable private survey teams,
through a Memorandum of Agreement (MOA), to delineate
ancestral domain perimeters. The DENR Secretary shall
accommodate any such request within one (1) month of its
issuance: Provided, That the Memorandum of Agreement
shall stipulate, among others, a provision for technology
transfer to the NCIP.
SECTION 62. Resolution of Conflicts. — In cases of
conflicting interest, where there are adverse claims within
the ancestral domains as delineated in the survey plan, and
which can not be resolved, the NCIP shall hear and decide,
after notice to the proper parties, the disputes arising from
the delineation of such ancestral domains: Provided, That if
the dispute is between and/or among ICCs/IPs regarding
the traditional boundaries of their respective ancestral
domains, customary process shall be followed. The NCIP
shall promulgate the necessary rules and regulations to
carry out its adjudicatory functions: Provided, further, That
any decision, order, award or ruling of the NCIP on any
ancestral domain dispute or on any matter pertaining to the
application, implementation, enforcement and
interpretation of this Act may be brought for Petition for
Review to the Court of Appeals within fifteen (15) days
from receipt of a copy thereof.
SECTION 63. Applicable Laws. — Customary laws,
traditions and practices of the ICCs/IPs of the land where
the conflict arises shall be applied first with respect to
property rights, claims and ownerships, hereditary
succession and settlement of land disputes. Any doubt or
ambiguity in the application and interpretation of laws shall
be resolved in favor of the ICCs/IPs.
SECTION 64. Remedial Measures. — Expropriation
may be resorted to in the resolution of conflicts of interest
following the principle of the “common good”. The NCIP
shall take appropriate legal action for the cancellation of
officially documented titles which were acquired illegally:
Provided, That such procedure shall ensure that the rights
of possessors in good faith shall be respected: Provided,
further, That the action for cancellation shall be initiated
within two (2) years from the effectivity of this Act:
Provided, finally, That the action for reconveyance shall be
within a period of ten (10) years in accordance with
existing laws.
CHAPTER IX
Jurisdiction and Procedures for Enforcement of Rights
SECTION 65. Primacy of Customary Laws and
Practices. — When disputes involve ICCs/IPs, customary
laws and practices shall be used to resolve the dispute.
SECTION 66. Jurisdiction of the NCIP. — The NCIP,
through its regional offices, shall have jurisdiction over all
claims and disputes involving rights of ICCs/IPs: Provided,
however, That no such dispute shall be brought to the NCIP
unless the parties have exhausted all remedies provided
under their customary laws. For this purpose, a certification
shall be issued by the Council of Elders/Leaders who
participated in the attempt to settle the dispute that the same
has not been resolved, which certification shall be a
condition precedent to the filing of a petition with the
NCIP.
SECTION 67. Appeals to the Court of Appeals. —
Decisions of the NCIP shall be appealable to the Court of
Appeals by way of a petition for review.
SECTION 68. Execution of Decisions, Awards,
Orders. — Upon expiration of the period herein provided
and no appeal is perfected by any of the contending parties,
the Hearing Officer of the NCIP, on its own initiative or
upon motion by the prevailing party, shall issue a writ of
execution requiring the sheriff or the proper officer to
execute final decisions, orders or awards of the Regional
Hearing Officer of the NCIP.
SECTION 69. Quasi-Judicial Powers of the NCIP. —
The NCIP shall have the power and authority:
a) To promulgate rules and regulations governing
the hearing and disposition of cases filed before it as well
as those pertaining to its internal functions and such rules
and regulations as may be necessary to carry out the
purposes of this Act;
b) To administer oaths, summon the parties to a
controversy, issue subpoenas requiring the attendance and
testimony of witnesses or the production of such books,
papers, contracts, records, agreements and other document
of similar nature as may be material to a just determination
of the matter under investigation or hearing conducted in
pursuance of this Act;
c) To hold any person in contempt, directly or
indirectly, and impose appropriate penalties therefor; and
d) To enjoin any or all acts involving or arising
from any case pending before it which, if not restrained
forthwith, may cause grave or irreparable damage to any of
the parties to the case or seriously affect social or economic
activity.
SECTION 70. No Restraining Order or Preliminary
Injunction. — No inferior court of the Philippines shall
have jurisdiction to issue any restraining order or writ of
preliminary injunction against the NCIP or any of its duly
authorized or designated offices in any case, dispute or
controversy arising from, necessary to, or interpretation of
this Act and other pertinent laws relating to ICCs/IPs and
ancestral domains.
CHAPTER X
Ancestral Domains Fund
SECTION 71. Ancestral Domains Fund. — There is
hereby created a special fund, to be known as the Ancestral
Domains Fund, an initial amount of One hundred thirty
million pesos (P130,000,000) to cover compensation for
expropriated lands, delineation and development of
ancestral domains. An amount of Fifty million pesos
(P50,000,000) shall be sourced from the gross income of
the Philippine Charity Sweepstakes Office (PCSO) from its
lotto operation, Ten million pesos (P10,000,000) from the
gross receipts of the travel tax of the preceding year, the
fund of the Social Reform Council intended for survey and
delineation of ancestral lands/domains, and such other
source as the government may deem appropriate.
Thereafter, such amount shall be included in the annual
General Appropriations Act. Foreign as well as local funds
which are made available for the ICCs/IPs through the
government of the Philippines shall be coursed through the
NCIP. The NCIP may also solicit and receive donations,
endowments and grants in the form of contributions, and
such endowments shall be exempted from income or gift
taxes and all other taxes, charges or fees imposed by the
government or any political subdivision or instrumentality
thereof.
CHAPTER XI
Penalties
SECTION 72. Punishable Acts and Applicable
Penalties. — Any person who commits violation of any of
the provisions of this Act, such as, but not limited to,
unauthorized and/or unlawful intrusion upon any ancestral
lands or domains as stated in Sec. 10, Chapter III, or shall
commit any of the prohibited acts mentioned in Sections 21
and 24, Chapter V, Section 33, Chapter VI hereof, shall be
punished in accordance with the customary laws of the
ICCs/IPs concerned: Provided, That no such penalty shall
be cruel, degrading or inhuman punishment: Provided,
further, That neither shall the death penalty or excessive
fines be imposed. This provision shall be without prejudice
to the right of any ICCs/IPs to avail of the protection of
existing laws. In which case, any person who violates any
provision of this Act shall, upon conviction, be punished by
imprisonment of not less than nine (9) months but not more
than twelve (12) years or a fine of not less than One
hundred thousand pesos (P100,000) nor more than Five
hundred thousand pesos (P500,000) or both such fine and
imprisonment upon the discretion of the court. In addition,
he shall be obliged to pay to the ICCs/IPs concerned
whatever damage may have been suffered by the latter as a
consequence of the unlawful act.
SECTION 73. Persons Subject to Punishment. — If
the offender is a juridical person, all officers such as, but
not limited to, its president, manager, or head of office
responsible for their unlawful act shall be criminally liable
therefor, in addition to the cancellation of certificates of
their registration and/or license: Provided, That if the
offender is a public official, the penalty shall include
perpetual disqualification to hold public office.
CHAPTER XII
Merger of the Office for Northern Cultural Communities
(ONCC) and the Office for Southern Cultural Communities
(OSCC)
SECTION 74. Merger of ONCC/OSCC. — The
Office for Northern Cultural Communities (ONCC) and the
Office of Southern Cultural Communities (OSCC), created
under Executive Order Nos. 122-B and 122-C respectively,
are hereby merged as organic offices of the NCIP and shall
continue to function under a revitalized and strengthened
structures to achieve the objectives of the NCIP: Provided,
That the positions of Staff Directors, Bureau Directors,
Deputy Executive Directors and Executive Directors,
except positions of Regional Directors and below, are
hereby phased-out upon the effectivity of this Act:
Provided, further, That officials and employees of the
phased-out offices who may be qualified may apply for
reappointment with the NCIP and may be given prior rights
in the filling up of the newly created positions of NCIP,
subject to the qualifications set by the Placement
Committee: Provided, furthermore, That in the case where
an indigenous person and a non-indigenous person with
similar qualifications apply for the same position, priority
shall be given to the former. Officers and employees who
are to be phased-out as a result of the merger of their
offices shall be entitled to gratuity a rate equivalent to one
and a half (1 ½) months salary for every year of continuous
and satisfactory service rendered or the equivalent nearest
fraction thereof favorable to them on the basis of the
highest salary received. If they are already entitled to
retirement or gratuity, they shall have the option to select
either such retirement benefits or the gratuity herein
provided. Officers and employees who may be reinstated
shall refund such retirement benefits or gratuity received:
Provided, finally, That absorbed personnel must still meet
the qualifications and standards set by the Civil Service and
the Placement Committee herein created.
SECTION 75. Transition Period. — The
ONCC/OSCC shall have a period of six (6) months from
the effectivity of this Act within which to wind up its
affairs and to conduct audit of its finances.
SECTION 76. Transfer of Assets/Properties. — All
real and personal properties which are vested in, or
belonging to, the merged offices as aforestated shall be
transferred to the NCIP without further need of
conveyance, transfer or assignment and shall be held for the
same purpose as they were held by the former offices:
Provided, That all contracts, records and documents
relating to the operations of the merged offices shall be
transferred to the NCIP. All agreements and contracts
entered into by the merged offices shall remain in full force
and effect unless otherwise terminated, modified or
amended by the NCIP.
SECTION 77. Placement Committee. — Subject to
rules on government reorganization, a Placement
Committee shall be created by the NCIP, in coordination
with the Civil Service Commission, which shall assist in
the judicious selection and placement of personnel in order
that the best qualified and most deserving persons shall be
appointed in the reorganized agency. The Placement
Committee shall be composed of seven (7) commissioners
and an ICCs’/IPs’ representative from each of the first and
second level employees association in the Offices for
Northern and Southern Cultural Communities
(ONCC/OSCC), nongovernment organizations (NGOs)
who have served the community for at least five (5) years
and peoples organizations (POs) with at least five (5) years
of existence. They shall be guided by the criteria of
retention and appointment to be prepared by the
consultative body and by the pertinent provisions of the
civil service law.
CHAPTER XIII
Final Provisions
SECTION 78. Special Provision. — The City of
Baguio shall remain to be governed by its Charter and all
lands proclaimed as part of its townsite reservation shall
remain as such until otherwise reclassified by appropriate
legislation: Provided, That prior land rights and titles
recognized and/or acquired through any judicial,
administrative or other processes before the effectivity of
this Act shall remain valid: Provided, further, That this
provision shall not apply to any territory which becomes
part of the City of Baguio after the effectivity of this Act.
SECTION 79. Appropriations. — The amount
necessary to finance the initial implementation of this Act
shall be charged against the current year’s appropriation of
the ONCC and the OSCC. Thereafter, such sums as may be
necessary for its continued implementation shall be
included in the annual General Appropriations Act.
SECTION 80. Implementing Rules and Regulations.
— Within sixty (60) days immediately after appointment,
the NCIP shall issue the necessary rules and regulations, in
consultation with the Committees on National Cultural
Communities of the House of Representatives and the
Senate, for the effective implementation of this Act.
SECTION 81. Saving Clause. — This Act will not in
any manner adversely affect the rights and benefits of the
ICCs/IPs under other conventions, recommendations,
international treaties, national laws, awards, customs and
agreements.
SECTION 82. Separability Clause. — In case any
provision of this Act or any portion thereof is declared
unconstitutional by a competent court, other provisions
shall not be affected thereby.
SECTION 83. Repealing Clause. — Presidential
Decree No. 410, Executive Order Nos. 122-B and 122-C,
and all other laws, decrees, orders, rules and regulations or
parts thereof inconsistent with this Act are hereby repealed
or modified accordingly.
SECTION 84. Effectivity. — This Act shall take
effect fifteen (15) days upon its publication in the Official
Gazette or in any two (2) newspapers of general circulation.
Approved: October 29, 1997