UNIVERSITY OF SAN JOSE RECOLETOS

Magallanes Street Cebu City

SOCIAL SECURITY SYSTEM LAW

[Republic Act 8282, as amended by RA 11199]

Prepared by:
TEAM GUNTHER

Alicante, Rholyn Marie P.

Cisneros, Lyka Angelique
Dico, Jeanilyn M.
Enumerables, Fritche
Gelicame, Janelle Karla
Sayruddin, Ken Lanvin

Agrarian Law and Social Legislation Class

7:00-9:00 PM SATURDAY

1
R.A. 8282, REPEALED BY R.A.11199.

On February 07, 2019, President Duterte approved R.A. No. 11199, otherwise
known as the “Social Security Act of 2018,” which expressly repealed R.A. No. 8282.

Q. Who are covered employers under the SSS Law or RA 8282, as

amended by RA 11199?

Suggested Answer:
a. An employer or any person who uses the services of another person in business,
trade, industry or any undertaking.
b. b. A social, civic, professional, charitable and other non-profit organizations which
hire the services of employees are considered “employers.”
c. c. A foreign government, international organization or its wholly-owned
instrumentality such as an embassy in the Philippines, may enter into an
administrative agreement with the SSS for the coverage of its Filipino employees.

Q. Who are compulsorily covered employees?

Suggested Answer:
a. A private employee, whether permanent, temporary or provisional, who is not
over 60 years old.
b. A domestic worker or kasambahay who has rendered at least one (1) month of
service.
c. c. A Filipino seafarer upon the signing of the standard contract of employment
between the seafarer and the manning agency which, together with the foreign
ship owner, act as employers.
d. d. An employee of a foreign government, international organization or their
wholly-owned instrumentality based in the Philippines, which entered into an
administrative agreement with the SSS for the coverage of its Filipino workers.
e. e. The parent, spouse or child below 21 years old of the owner of a single
proprietorship business.

Q. Are self-employed persons covered?

Suggested Answer:
Yes. A self-employed person is covered under the SSS Law. The law provides
that a self-employed person, regardless of trade, business or occupation, with an
income of at least P1,000 a month and not over 60 years old, should register with the
SSS.

2
Q. Who are self-employed persons?

Suggested Answer:
Included, but not limited to, are the following self-employed persons: (1) self-
employed professionals; (2) business partners, single proprietors and board directors;
(3) actors, actresses, directors, scriptwriters and news reporters who are not under an
employer-employee relationship; (4) professional athletes, coaches, trainers and
jockeys; (5) farmers and fisherfolks; and (6) workers in the informal sector such as
cigarette vendors, watch-your-car boys, hospitality girls, among others.
Note: A self-employed person shall be both employee and employer at the same
time.

Q. Who may be covered voluntarily under the SSS Law or RA 8282, as

amended by RA 11199?

Suggested Answer:
1. Separated Members - A member who is separated from employment or ceased to
be self-employed/OFW/non-working spouse and would like to continue
contributing;
2. Overseas FilipinoWorkers(OFWs) - A Filipino recruited in the Philippines by a
foreign-based employer for employment abroad or one who legitimately
entered a foreign country (i.e., tourist,student) and is eventually
employed; and
3. Non-working spouses of SSS members - A person legally married to a currently
employed and actively paying SSS member who devotes full time in the
management of household and family affairs may be covered on a
voluntary basis, provided there is the approval of the working spouse.
The person should never have been a member of the SSS. The
contributions will be based on 50 percent (50%) of the working
spouse’s last posted monthly salary credit but in no case shall it be
lower than P1,000.

Q. What is the effective date of coverage?

Suggested Answer:
A. For compulsory coverage:
1. For employer - Compulsory coverage of the employer shall take effect on the
first day of his operation or on the first day he hires employee/s. The
employer is given only 30 days from the date of employment of
employee to report the person for coverage to the SSS.
2. For employee - Compulsory coverage of the employee shall take effect on the
first day of his employment. 3. For self-employed - The compulsory

3
 coverage of the self-employed person shall take effect upon his
registration with the SSS or upon payment of the first valid
contribution, in case of initial coverage.
3. For self-employed - The compulsory coverage of the self-employed person shall
take effect upon his registration with the SSS or upon payment of the
first valid contribution, in case of initial coverage.
B. For voluntary coverage:
1. For an OFW – upon first payment of contribution, in case of initial coverage.
2. For a non-working spouse – upon first payment of contribution.
3. For a separated member – on the month he/she resumed payment of
contribution.

Q. Who are excluded employers?

Suggested Answer:
Government and any of its political subdivisions, branches or instrumentalities,
including corporations owned or controlled by the Government with original charters.

Q. Who are excluded employees?

Suggested Answer:
Workers whose employment or service falls under any of the following circumstances
are not covered:
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 R.A. No. 8282 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

4
 5. Such other services performed by temporary and other employees which may be
excluded by regulation of the Social Security Commission. Employees of bona-
fide independent contractors shall not be deemed employees of the employer
engaging the service of said contractors.

Q. Who are the primary beneficiaries under the Social Security Law?

Suggested Answer:
The primary beneficiaries who shall be entitled to the benefits provided under the law
are the following:
(a) The dependent spouse until he or she remarries; and
(b) The dependent legitimate, legitimated or legally adopted, and illegitimate
children, subject to the following conditions:
(1) The share of the dependent illegitimate children shall be fifty percent
(50%) of the share of the legitimate, legitimated or legally adopted
children in the basic pension;
(2) In the absence of the dependent legitimate, legitimated or legally
adopted children of the member, his/her dependent illegitimate
children shall be entitled to one hundred percent (100%) of the
benefits.

Q. Who are the secondary beneficiaries under the Social Security Law?

Suggested Answer:
The secondary beneficiaries who shall be entitled to the benefits in the absence of the
primary beneficiaries are the following:
(a) The dependent parents; and
(b) In the absence of dependent parents, any other person designated by the
member.

Q. Pedro Tortilla and his employer were covered by the Social Security
System. Tortilla was legally married to Orpha de la Cruz, a plain
housewife with whom he had two minor, unmarried and
unemployed children. But for two years, he had been living with his
common-law wife, Dora Tea, with whom he had two minor,
unmarried and unemployed children. His jobless father stayed with
him. In his SSS record, he designated as beneficiary his best friend,
a 20- year-old student who was totally dependent on him for
support. In a car accident. Tortilla, Orpha de la Cruz and their two
children died. Who are entitled to the death benefits?

5
Suggested Answer:
Tortilla’s 2 minor illegitimate children are entitled to the benefits.
Section 8 (k) of RA 8262 provides that in the absence of the dependent spouse
and dependent legitimate, legitimated or legally adopted children of the member, his or
her dependent illegitimate children shall be entitled to one hundred percent (100%) of
the benefits.
In the instant case, Tortilla died together with his legal spouse and his legitimate
children. Thus, Tortilla's 2 minor illegitimate children who are also primary beneficiaries
will get 100% of the benefits. The presence of these 2 minor illegitimate children will
preclude Tortilla’s father from the benefits being only a secondary beneficiary. As for the
20-year old student who was Tortilla's best friend and designated as beneficiary, he
would only be entitled to death benefits, in the absence of either the primary and
secondary beneficiaries. Also under the law, a common law wife is not among those who
could be a beneficiary, either as primary or secondary.

Q. Who are considered dependents under the Social Security law?

Suggested Answer:
Section 8 (e) of RA 8262 provides the following persons as dependents:
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 and mentally; and
3. The parent who is receiving regular support from the member.

Q. Eduardo Serangco, an SSS member for 20 years, died on May 1,

1992. The records of SSS show that Serangco designated as his
beneficiaries his wife, Marietta Uy; his daughter Gloria Serangco,
born on June 30, 1979; and his son Jose Serangco, which was born
on July 16, 1981. On May 10, 1992, SSS granted Marietta Uy funeral
benefits. However, on May 16, 1992, Josefa Costa filed a claim for
death benefits alleging that she was married to the late Eduardo
Serangco on October 15, 1982 and dependent upon him for support.
She attached to her claim, copy of a marriage contract duly certified
and sealed by the civil registrar of Pasig, Rizal. Marietta Uy opposed
Josefa Costa’s claim, contending that she and her children, Gloria
and Jose Serangco, are entitled to death benefits because they were
the primary beneficiaries designated by the deceased Serangco. To
whom shall the SSS award death benefits? Why?

Suggested Answer:

6
 Marieta Uy and her two minor children shall be entitled to the death benefits.
The law provides that, the primary beneficiaries of a deceased employee are the
dependent spouse until he/she remarries, the dependent legitimate, legitimated, or
legally adopted children and illegitimate children. A dependent spouse is the legitimate
spouse dependent for support upon the employee and dependent children are
legitimate, legitimated or legally adopted children, who are unmarried, not gainfully
employed and not over twenty one years of age, or over twenty one years of age,
provided that they are congenitally incapacitated and incapable of self-support.
In the case at hand, Gloria and Jose Serangco are dependent children because
they are still not over twenty one years of age assuming that they are also unmarried
and are not gainfully employed. The legitimate wife of the deceased employee is
Marietta Uy and not Josefa Costa. The marriage of the deceased employee to Josefa
Costa is bigamous.
Thus, Marietta is primary beneficiary together with her children Gloria and Jose.
As such primary beneficiaries, SSS should award to them the death benefits arising from
the death of Eduardo Serangco.

Q. In determining the entitlement of benefits, is SSS empowered to

determine the validity of marriages?

Suggested Answer:
No, only the courts can determined the validity of marriages.
However in the case of SSS vs. Azote, the Court held that although the SSS is not
intrinsically empowered to determine the validity of marriages, it is required by Sec. 4
par (b) (7) of RA No.8282 to examine available statistical and economic data to ensure
that the benefits fall into the rightful beneficiaries.

Q. What are the classifications of benefits?

Suggested Answer:
The SSS benefits may be classified into two (2) as follows:
1) Social security benefits:
2) Employees’ compensation benefits.

Q. What are the benefits under the Social Security System?

A. MONTHLY PENSION (Sec. 12, R.A. 11199)

The monthly pension shall be the highest of the following amounts:

1) P300 + [20% x (average monthly credit)] + [2% x (average monthly credit)
x (# of cash credit years of service in excess of 10 years)]
2) 40% x [average monthly credit]

7
 3) P1000, provided that the monthly pension shall in no case be paid for an
aggregate amount of less than 60 months [Sec.12(a)]
4) Notwithstanding the above mentioned, minimum pension is:
a) P1,200 - members with at least 10 years credit service
b) P 2,400 - members with at least 20 years

B. DEPENDENTS’ PENSION (Sec. 12-A, R.A. 11199)

1. Paid on account of members’

a. Death
b. Permanent total disability, or
c. Retirement
2. Paid to each child conceived on or prior to contingency, but not exceeding 5,
beginning with the youngest and preferring the legitimate
3. Amount is either P250 or 10% of the monthly pension as computed above,
whichever is higher.

C. RETIREMENT BENEFITS (Sec. 12-B, R.A. 11199)

It is a cash benefit either in monthly pension or lump sum paid to a member who
can no longer work due to old age.

Qualified member:
1. A member who is 60 years old, separated from employment or ceased to be
self-employed, and has paid at least 120 monthly contributions prior to the
semester of retirement.
2. A member who is 65 years old whether employed or not and has paid at least
120 monthly contributions prior to the semester of retirement.

What are the types of retirement benefits?

1. Monthly pension
2. Lump sum amount

Aside from retirement benefit, retiree is entitled to a 13th monthly pension payable
every December.

All retiree pensioners prior to effectivity of RA 7875 on March 4, 1995 are

automatically considered members of PhilHealth and he and his legal dependents are
entitled to its hospitalization benefits.
Period of entitlement is from retirement until death. The monthly pension shall be
suspended upon the reemployment or resumption of self-employment of a retired
member who is less than 65 years old.

8
 - Monthly pension
The monthly pension of a member who retires after reaching age 60 shall
be the highest 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.
- Lump Sum Alternative
The member may opt to receive the first 8 monthly pensions in lump sum
but such is discounted at a preferential rate of interest to be determined by the
SSS.

Lump Sum Eligibility (Equal to total contributions)

A covered member who is 60 years old at retirement and who does
not qualify for pension benefits (see requisites for eligibility) 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.

In Case of Death of Member

1. H
is/her primary beneficiaries as of the date of his/her retirement shall be
entitled to receive the monthly pension;
2. I
f he/she has no primary beneficiaries AND he/she dies within 60 months from
the start of his/her monthly pension, his/her secondary beneficiaries shall be
entitled to a lump sum benefit equivalent to the total monthly pensions
corresponding to the balance of the 5 year guaranteed period, excluding the
dependents’ pension.

D. PERMANENT DISABILITY BENEFITS (Sec. 13-A, R.A. 11199)

Disability is any restriction or lack (lack from impairment) of ability to perform an

activity in the manner or within the range considered normal for a human being.

Impairment is any loss or abnormality of psychological, physiological, or

anatomical structure or function.
Qualified member
A member who suffers partial or total permanent disability with at least
one monthly contribution paid to the SSS prior to the semester of contingency.

Eligibility

1. A 36 monthly contributions prior to the semester of disability.

9
 Note: This is the same as death benefit, but permanent disability pension
is paid directly to the member.

2. In case the permanently disabled member dies, he/she is given the same
treatment as a retiree dying.

3. For permanent partial disability, the pension is not lifetime. It shall be paid
in lump sum if the period is less than 12 months.

Ex. loss of thumb entitles member to 10 months of pension; loss of arm

entitles member to 50 months.

4. For multiple partial disabilities, they shall be additive when related or

deteriorating - the percentage shall be equal to the number of months the
partial disability is entitled to, divided by 75 months.

Ex. loss of sight in 1 eye - 25/75; loss of arm = 50/75

If both occur due to same cause, then 25/75 + 50/75 = 100% (as if it
were a permanent total disability)

Some partial permanent disabilities:

one thumb one little finger
one big toe one leg
one index finger hearing of one ear
one hand one ear
one arm hearing of both ears
one ring finger both ears
one foot sight of one eye

Some total permanent disabilities are:

1. Complete loss of sight of both eyes
2. Loss of two limbs at or above the ankles or wrists
3. Permanent complete paralysis of two limbs
4. Brain injury resulting to incurable imbecility or insanity
5. Such cases as determined and approved by SSS

What are the types of disability benefits?

Monthly pension – cash benefit paid to a disabled member who has paid at least
36 monthly contributions to the SSS prior to the semester of disability. In
addition to monthly pension, supplemental allowance of P500 is paid to the
total or partial disability pensioner.
Lump sum amount – granted to those who have not paid the required 36
monthly contributions.

10
Lump Sum Alternative
A member is entitled to a lump sum benefit equivalent to the monthly pension x
number of monthly contributions paid to the SSS or 12 times the monthly pension,
whichever is higher. To be entitled, he must not have paid at least 36 monthly
contributions.

Subject to compulsory coverage again

A member who:
1. Received a lump sum benefit, and
2. Is reemployed or resumed self-employment not earlier than 1 year from
date of disability, shall be subject to compulsory coverage and considered
a new member.

Death of Member
1. His/her primary beneficiaries as of the date of his/her retirement shall be
entitled to receive the monthly pension;
2. If he/she has no primary beneficiaries AND he/she dies within 60 months from
the start of his/her monthly pension, his/her secondary beneficiaries shall be
entitled to a lump sum benefit equivalent to the total monthly pensions
corresponding to the balance of the 6 year guaranteed period, excluding the
dependents’ pension.

CASE: Ortega v. SSC

Claims under the Labor Code for compensation and under the Social Security
Law for benefits are not the same as to their nature and purpose. On the one hand,
the pertinent provisions of the Labor Code govern compensability of work-related
disabilities or when there is loss of income due to work-connected or work-
aggravated injury or illness.

On the other hand, the benefits under the Social Security Law are intended to
provide insurance or protection against the hazards or risks of disability, sickness, old
age or death, inter alia, irrespective of whether they arose from or in the course of
the employment. And unlike under the Social Security Law, a disability is total and
permanent under the Labor Code if as a result of the injury or sickness the employee
is unable to perform any gainful occupation for a continuous period exceeding 120
days regardless of whether he loses the use of any of his body parts.

Q. Is monthly pension for life?

Suggested Answer:
The member who suffers from permanent total disability shall receive monthly
pension for life. However, the said monthly pension shall be suspended: (1) if he
recovers from his permanent total disability; (2) if he resumes employment; (3) if he

11
 fails to report for annual physical exam upon notice by SSS. Domiciliary service (if
member is unable to report to SSS for exam) can be requested.
The member who suffers from permanent partial disability shall receive his
monthly pension for the duration of a certain number of months assessed based on
the degree of his disability.
Q. What is the prescriptive period in filing a disability claim?

Suggested Answer:
The prescriptive period in filing a disability claim is 10 years from the date of
occurrence of disability.

E. DEATH BENEFITS (Sec. 13, R.A. 11199)

It is a cash benefit either in monthly pension or lump sum paid to the beneficiaries of
a deceased member.

Eligibility
36 monthly contributions prior to the semester of death

Benefit
1. Monthly pension to primary beneficiaries, or
2. If no primary beneficiaries, lump sum equivalent to 36 times the monthly
pension to secondary beneficiaries

If ineligible/has not paid 36 monthly contributions

A lump sum benefit which shall be that which is higher between the ff. will be
given to the beneficiaries:
a. (monthly pension) x 12, or
b. (monthly pension) x (# of monthly contributions)

Beneficiaries
Primary:
(1) Legitimate dependent spouse until the person remarries;
(2) dependent legitimate, legitimated or legally adopted and illegitimate
children who are not yet 21 years old.

Secondary: In the absence of primary, dependent parents.

In their absence, any other person designated by member in record.

The Monthly pension depends on member’s paid contributions, including the credited
years of service (CYS) and the number of dependent minor children but not to exceed
five.

In addition to death benefit, beneficiaries are entitled to 13th month pension payable
every December and funeral benefit expenses which is paid to whoever shouldered

12
the funeral expenses of the deceased member. Funeral grant is P20,000 (effective
Sept. 1, 2000).

Q. If deceased member is survived by legitimate, legitimated or legally

adopted and illegitimate children, how is monthly pension to be
divided?

Suggested Answer:
If survived by less than five, the illegitimate minor children will be entitled to
50% of the share of the legitimate, legitimated or legally adopted and 100% of the
dependents’ pension (equivalent to 10% of the member’s monthly pension or P250
whichever is higher). Only five minor children, beginning from the youngest, are
entitled to dependents’ pension. When there are more than 5, the legitimate,
legitimated or legally adopted shall be preferred.

Q. For how long will the dependent child receive the pension?

Suggested Answer:
When the child reaches 21 years old, gets married, gets employed or dies.
However, the dependents’ pension is granted for life to children who are over 21
years old, provided they are incapacitated and incapable of self-support due to
physical or mental disability which is congenital and acquired during minority.

Q. A is an employee of B who in turn registered A with the Social

Security System as required by law. Unfortunately, B did not remit
A’s contributions to the System. In the course of his employment, A
met a serious accident requiring his hospitalization.
(1) Suppose he decides to retire from the firm because of the
accident, is he entitled to recover retirement benefits under
the System? Explain your answer.
(2) Suppose that he died because of the accident, are his heirs
entitled to death benefits under the System? Explain your
answer.

Suggested Answer:
(1) A is entitled to receive benefits from the Social Security System even if his
employer did not remit A’s contribution to the System because the Social
Security Law provides (in Sec. 22(b) that the failure or refusal of the employer
to pay or remit contributions shall not prejudice the right of the covered
employee to the benefits of the coverage. But A is not entitled to retirement
benefits in the form of a monthly pension unless at the time of the accident, he
has reached the age of sixty years and has paid at least 120 monthly
contributions prior to the semester of the accident. (Sec. 12-B, Social Security
Law).

13
 (2) The heirs are not entitled, but his primary beneficiaries or in the absence of
primary beneficiaries, his secondary beneficiaries are entitled.

F. FUNERAL BENEFIT (Sec. 13-B, R.A. 11199)

This grant is found under Section 13-B of R.A. 1119. This benefit is intended to help
defray the cost of funeral expenses upon death.
Rule 24, Section 2 of the IRR provides that this amount may be adjusted as may be
determined by the Commission:
i. Php12,000.00 – effective May 24, 1997;
ii. Php15,000.00 – effective September 1, 1998;
iii. Php20,000.00 – effective September 1, 2000; or
iv. A variable amount ranging from a minimum of Php20,000.00 to a
maximum of Php40,000.00 depending on the member’s number of
contributions – effective August 1, 2015

G. LOAN

Social Security Commission Resolution No. 669, SSS Circular No. 21-P and 52 pertain
to treatment of salary loans, which sometimes provide for more flexible payment
terms or condonation for delinquent payers.

Eligibility
a. For a one-month loan, the member-borrower must have thirty six (36) posted
monthly contributions, six (6) of which should be within the last twelve (12)
months prior to the month of filing the application.
b. For a two-month loan, the member-borrower must have seventy two (72)
posted monthly contributions, six (6) of which should be within the last twelve
(12) months prior to the month of filing the application.
o For employed member-borrower, his/her employer must be updated in
the payment of contributions;
o The member-borrower has not been granted final benefit i.e., total
disability payment, retirement and death;
o The member-borrower must be under sixty-five (65) years of age at the
time of application; and
o The member-borrower has not been disqualified due to fraud committed
against the SSS.

Loan Amount

14
 a. A one-month salary loan is equivalent to the average of the member-
borrower’s latest posted 12-Month Salary Credits, or amount applied for,
whichever is lower.
b. A two-month salary loan is equivalent to twice the average of the member-
borrower’s latest posted 12-Month Salary Credits, rounded to the next higher
monthly salary credit, or the amount applied for, whichever is lower.
c. The net amount of the loan shall be the difference between the approved loan
amount and all outstanding balance of short-term member loans.
d. The loan amount shall be payable within two (2) years in 24 monthly
installments.
e. A service fee of 1% of the loan amount shall be charged and deducted from
the proceeds of the loan.
f. The loan shall be charged an interest of 10% per annum based on diminishing
principal balance until loan is fully paid.
g. Any loan amortization not remitted on due date shall bear a penalty of 1% per
month until loan is fully paid.
h. Loan Renewal shall be allowed after payment of at least 50% of the original
principal amount and at least 50% of the term has lapsed. The proceeds of
the renewal loan is the amount after the outstanding balance of the previous
loan has been deducted.

H. SICKNESS BENEFIT (Sec. 14, R.A. 11199)

Eligibility
1. Has paid at least three (3) months of contribution in the twelve-month (12)
period immediately before the semester of sickness or injury;
2. Confined for more than three (3) days either in a hospital or elsewhere with
SSS approval;
3. Employer has been notified in the case of employee-members or that SSS has
been directly notified in the case of unemployed members, voluntary
members, and self-employed members

Benefit
Daily Sickness Benefit which is equivalent to 90% of his average daily salary credit.
Conditions
1. Benefit shall begin only after all sick leaves and other paid absences have
been exhausted;
2. Benefit is paid for not longer than one hundred twenty (120) days in one (1)
calendar year. Further, any unused portion cannot be carried over to the next
calendar year;
3. Benefit shall not be paid for more than two hundred forth (240) days on
account of the same confinement; and

15
 4. For employed members, that employer has been notified within five (5)
calendar days after the start of confinement. For unemployed, voluntary, and
self-employed members, that SSS has been directly notified within five (5)
calendar days after the start of confinement

Exception:
- notification is not necessary if confinement is in the hospital.
- notification is also not necessary if employed-member became
sick or was injured while working within the premises of the
employer

Reimbursement of SSS to Employer

Upon satisfactory proof of payment and legality of sickness benefits,
reimbursement shall be made by the SSS if the following conditions are met:
1. If employer notified SSS of the confinement within 5 calendar days after
receipt of the notification from the employee-member - 100%
Reimbursement
2. If the notification to SSS is made beyond 5 calendar days after receipt of
notification from the employee-member – Reimbursement is only for
each day of confinement starting from the 10th calendar day immediately
preceding the date of notification to SSS.

SSS shall reimburse the employer or pay the unemployed member only for
confinement within the 1 year period immediately preceding the date the claim
for benefit/reimbursement is received by SSS.

Exception:
Hospital Confinement – the claim for benefit or reimbursement
must be filed within 1 year from the last day of confinement.

I. MATERNITY LEAVE BENEFITS (amended by R.A. No. 11210 or the 105-Day

Expanded Maternity Benefit)

Eligibility
1. Female member; and
2. Paid at least three (3) monthly contributions in the twelve-month (12) period
immediately preceding the semester of her childbirth, miscarriage, or emergency
termination of pregnancy.

Benefit
Daily Maternity Benefit equivalent to one hundred percent (100%) of her average
daily salary credit for one hundred five (105) days for childbirth, regardless of the
type of delivery, or sixty (60) days for miscarriage or emergency termination of
pregnancy.

Conditions

16
 1. Employed-member have notified her employer of her pregnancy and the
probable date of her childbirth;
2. This benefit shall be a bar to the recovery of sickness benefits provided in this
Act for the same period for which daily maternity benefits have been received;

Coverage
Covers only the first four deliveries or miscarriages

Employer’s Reimbursement
Full payment shall be advanced by the employer within 30 days from filing the
maternity leave application

SSS shall reimburse the employer of 100% of the amount of maternity benefits
advanced upon receipt of satisfactory proof of payment and legality thereof

J. UNEMPLOYMENT INSURANCE or INVOLUNTARY SEPARATION BENEFITS (Sec.

14-B, R.A. 11199)

Eligibility
1. Member is not over 60 years of age
2. Paid at least 36 months contributions, 12 months of which should be in the 18 th
month period immediately preceding the involuntary unemployment or separation

Benefit
Monthly cash payments equivalent to 50% of the average monthly salary credit for a
maximum of 2 months.

Frequency of claiming benefit

An employee who is involuntarily unemployed can only claim unemployment benefits
once every 3 years.

In case of concurrence of 2 or more compensable contingencies, only the highest

benefit shall be paid, subject to the rules and regulations that the Commission may
prescribe.

Q. May the Social Security System (SSS) sue or can be sued?

Suggested Answer:
The Social Security System is a juridical entity with a personality separate and
distinct from the Government. The System’s own organic act specifically provides that it
can sue or be sued in Court. These words “sue and be sued” embrace all civil process
incident to a legal action. The law itself has given the private citizen a remedy for the
enforcement and protection of his rights. A private citizen, therefore, may bring a suit

17
against it for varied objectives, such as in this case, to obtain compensation in damages
arising from contract and even for tort. (SSS v. CA, 120 SCRA 707)

Q. Who are the members of the Social Security Commission (SSC)

Suggested Answer:
The SSC is composed of the following:
1. Secretary of Finance as ex officio Chairperson;
2. the SSS President and Chief Executive Officer as Vice-Chairperson who shall
automatically act as the Commission Chairperson in the absence of thie Finance
Secretary;
3. the Secretary of Labor and Employment, as ex officio member;
4. and six (6) appointive members:
- three (3) of whom shall represent the workers’ group with at least one (1)
of whom shall be a woman; and
- three (3), the employers’ group with at least one (1) of whom shall be a
woman;
all of whom shall be appointed by the President of the Philippines and shall be of
known competence, probity, integrity and recognized expertise in any of the fields
of social security, pension fund, insurance, investment, banking and finance,
economics, management, law or actuarial science and with at least ten (10) years of
managerial or leadership experience.

Q. Who has jurisdiction over disputes under the Social Security Act?

Suggested Answer:
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 Social Security 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 the mandatory period of 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. (Section 5[a], R.A. 11199)

Q. When does the decision of the SSC become final and executory?

Suggested Answer:
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

18
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 prosecutor. (Section
5[b], R.A. 11199)

Q. Where can you appeal decisions by the SSC?

Suggested Answer:
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.

REPUBLIC ACT NO. 7699

PORTABILITY LAW

Q. What is Portability
Portability shall refer to the transfer of funds for the account and benefit of a
worker who transfers from one system to the other. (Section 1(b), Rule III of R.A. No.
7699)

Q. Who are covered under Limited Portability Scheme?

All worker‐members of the Government Service Insurance System (GSIS) and/or
Social Security System (SSS) who transfer from one sector to another, and who wish to
retain their membership in both Systems (Section 1, Rule I of R.A. No. 7699)

Q. What are the benefits that may be availed?

 Old-age benefit
 Disability benefit
 Survivorship benefit
 Sickness benefit
 Medicare benefit
 Other benefits common to both system

Q. How Limited Portability Scheme Beneficial to SSS and GSIS

members?

19
 R.A. 7699 was enacted to enable those from the private sector who transfer to
the government service or from the government sector to the private sector to combine
their years of service and contributions which have been credited with the SSS or GSIS,
as the case may be, to satisfy the required number of years of service for entitlement to
the benefits under the applicable laws.

Q. How does Limited Portability of Funds work?

The process involved in the prompt payment of money benefits to eligible
members shall be the joint responsibility of the GSIS and SSS. (Section 1, Rule IV of RA
No. 7699).
The System or Systems responsible for the payment of money benefits due a covered
worker shall release the same within fifteen (15) working days from receipt of the claim,
subject to the submission of the required documents and availability of the complete
employee/employer records in the System. (Section 2, Rule IV of RA No. 7699)

Q. What is Totalization?
Refers to the process of adding up the periods of creditable services or
contributions under each of the Systems (SSS, GSIS) - for purposes of eligibility and
computation of benefits. (Section 2 (E), Rule V of RA No. 7699)

Q. What constitutes Contribution?

Shall refer to the contributions paid by the employer or worker to either the
Government Service Insurance System (GSIS) or the Social Security System (SSS) on
account of the workers’ membership.

CREDITABLE SERVICES (Public Sector)

1. All previous services render by an official/employee pursuant to:
 Appointment whether permanent, provisional or temporary
 Duly approved appointment to a position in the Civil Service with
compensation or salary
2. The period during which an official/employee was:
 On authorized sick leave of absence without pay not exceeding one
(1) year
 Out of service as a result of illegal termination of his service as
finally decided by the proper authorities
3. All previous services with compensation or salary rendered by elective officials.

PERIOD OF CONTRIBUTION (Private Sector)

Shall refer to the periods during which a person renders services for an employer
with compensation or salary and during which contributions were paid to SSS.

20
Q. How about a self-employed?
Considered as an employee and an employer at the same time.

Q. Who are eligible?

Workers has SATISFIED the requirements for entitlement to the benefits
provided for under the Act.
Overlapping of Periods
Refer to the periods during which a worker simultaneously contributes to both
Systems.

Q. How Totalization Works?

All creditable services or periods of contributions made continuously or in the
aggregate of a worker under either of the Sectors shall be added up and considered for
purposes of eligibility and computation of benefits. (Rule V, Section 1).

All services rendered or contributions paid by a member personally and those

that were paid by the employers to either System shall be considered in the computation
of benefits, which may be claimed from either or both Systems. However, the amount of
benefits to be paid by one System shall be in proportion to the services
rendered/periods of contributions made to that System. (Rule V, Section 2)

For purposes of computation of benefits, totalization applies in ALL CASES so that

the contributions made by the worker-member in both Systems shall provide maximum
benefits which otherwise will not be available. In no case shall the contribution be lost
or forfeited.

INSTANCES WHERE TOTALIZATION SHALL APPLY (RULE V, SECTION 3):

a. If a worker is not qualified for any benefits from both systems; or
b. If a worker in the public sector is not qualified for any benefits from the GSIS; or
c. If the worker in the private sector is not qualified for any benefits from the SSS.

Q. What happens when after totalization, the worker-member still does

not qualify for any benefit (RULE III, Section 1(j)) as listed in the
law?
The member will then get whatever benefits correspond to his/her contributions
in either or both Systems (RULE V, Section 4). However, if a worker qualifies for benefits
in both Systems, totalization shall not apply! (Rule V, Section 5)

Q. Who are responsible for the process of Totalization?

21
 The process of totalization of creditable services or periods of contributions and
computation of benefits provided for under the Act shall be the joint responsibility of the
GSIS and the SSS. (Rule V, Section 6)

Q. How many times can a member avail of totalization of creditable

services?
Overlapping periods of creditable services or contributions in both Systems shall
be credited only once for purposes of totalization.

GAMOGAMO V. PNOC SHIPPING AND TRANSPORT CORP (GR NO. 141707)

Totalization of service credits is only resorted to when the retiree does not qualify
for benefits in either or both of the System. In this case, since the petitioner may be
entitled to some benefits from the GSIS, he cannot avail of the benefits under RA 7699.

Q. Luisito has been working with Lima Land for 20 years. Wanting to
work in the public sector, Luisito applied with and was offered a job
at Livecor. Before accepting the offer, he wanted to consult you
whether the payments that he and Lima Land had made to the
Social Security System (SSS) can be transferred or credited to the
Government Service Insurance System (GSIS). What would you
advice?

Suggested Answer:
Yes. Under RA 7699, otherwise known as the Portability Law, one may combine
his years of service in the private sector represented by his contributions to the Social
Security System (SSS) with his government service and contributions to the GSIS. The
contributions shall be totalized for purposes of old-age, disability, survivorship and other
benefits in case the covered member does not qualify for such benefits in either or both
Systems without totalization.

Q. What are the responsibilities of the GSIS and SSS?

1. The GSIS and the SSS shall be responsible for the recording and documentation of
the creditable services and/or periods of contributions of the members respectively.
2. Accreditation of services or periods of contributions of the members shall be
undertaken by the GSIS for the public sector and by the SSS for the private sector.
3. Complaints and questions relative to the creditable services or periods of
contributions as well as computation of benefits shall be brought before the System
concerned and shall be resolved in accordance with the policies and procedures
adopted by the said System.

Q. What are the effects of separation from employment?

22
1. Employer’s contribution, and employee’s obligation to pay contribution both
cease at the end of the month of separation
2. Employee shall be credited with all contributions paid on his behalf and
entitled to all benefits set forth by law.

THE END

23