Social Security

Law
(RA 11199)
Presented by:
Laroga & Yanez | Block MA
DEFINITION OF TERMS:
SSS - The Social Security System created by this Act.
Commission - The Social Security Commission.
Employer - Any person, natural or juridical, domestic or foreign, uses the services
of another person who is under his orders as regards the employment. Provided,
that a self-employed professional shall be both an employee and an employer at
the same time.
Employee - Any person who performs services for an employer in which either or
both mental and physical efforts are used and who receives compensation for
such service.
Dependent
the legal spouse entitled by law to receive support from the member.
legitimate, legitimated, or legally adopted, and illegitimate child who is
unmarried, not gainfully employed and has not reached 21 years of age, or if 21,
he is congenitally or while still a minor has been permanently incapacitated and
incapable of self-support, physically or mentally; and
the parent who is receiving regular support from the member
DEFINITION OF TERMS:
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.
Monthly Salary Credit - The compensation base for contributions and benefits as
indicated in the schedule for Employee’s Contributions.
Monthly - It is the period from one end of the last payroll period of the preceeding
month to the end of the last payroll period of the current month if the compensation is
an hourly, daily, or weekly basis; if on any other basis, “monthly” shall mean a period of
one month.
Contribution - amount paid to the SSS by the employee and by his employer in
accordance with section 18 of this Act.
Employment - Any service performed by an employee for his employer, except:
Services where there is no employer-employee relationship.
Service performed in the employ of the Philippine Government or instrumentality or
agency therof;
Service performed in the employ of a foreign government or international
organization, or their wholly-owned instrumentality:
DEFINITION OF TERMS:
Such other services performed by temporary and other employees which may be
excluded by regulation of the Commission. Employees of bona fide independent
conttractors shall not be deemed employees of the employer engaging the services of
said contractors.
Beneficiaries - the dependent spouse until he or she remarries, the dependent legitimate,
legitimated or legally adopted, and illegitimate children, who shall be primary beneficiaries
of the member.
Average Monthly Salary Credit - the result obtained by dividing the sum of the last 60
monthly salary credits immediately preceding the semester of contingency by 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.
Average Daily Salary Credit - the result obtained by dividing the sum of the 6 highest
monthly salary credits in the 12th month period immediately preceding the semester of
contingency by 180.
Semester - a period of 2 consecutive quarters ending in the quarter of contingency.
DEFINITION OF TERMS:
Quarter - a period of 3 consecutive calendar months ending on the last day of
March, June, September, and December.
Replacement Ratio - the sum of 20% and the quuotient obtained by ddividing
300 by the sum of 340 and the average monthly salary credit.
Credited Years of Services - the number of years you have contributed to the
SSS determines your credited years of service.
Member - the worker who is covered under Section 9 and Section 9-A of this Act.
Self-employed - any person whose income is not derived from employment, as
defined under this Act, as well as those workers enumerated
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.
Fixed Earnings - Recurring expense such as amortization of debt discount and
rentals for leased properties, including interest on funded and unfunded debt.
 Scope and Coverage
Sec. 9

Coverage in the SSS shall be cumpolsory upon:

1. All employees not over 60 years of age; and

2. Their employers.
provided:
any benefit already earned by the employees under private benefit plans shall not
be discontinued, reduced or otherwise impaired.

existing private plans shall be integrated with the plan of the SSS program. If an
employer already contributes more than what is required, they will only pay the
SSS contribution and continue contributing to the private plan with the
difference.

any changes, adjustments, modifications, elimination or improvements in the

benefits because of the reduced contribution must be agreed upon by both the
employers and the employees.

the private benefit plan of the employees shall remain under the employer’s
management and control, unless there is an existing agreement to the contrary.

this does not prevent employers and employees from negotiating and providing
benefits that go beyond what is mandated by this Act.
Voluntary Coverage:

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.
Compulsory Coverage of the Self-
Employed:
Coverage in the SSS shall also be compulsory upon all
self-employed persons as may be determined by the
Commission under such rules and regulations as it “If the self-employed
may prescribe: realizes no income in
All self-employed professionals any given month, he
Partners and single proprietors of businesses
shall not be required
Actors and actresses, directors, scriptwriters and
to pay contributions
news correspondents who do not fall within the
for that month.
definition of the term “employee”
Professional athletes, coaches, trainers, and
jockeys;
Individual farmers and fishermen.
Compulsory Coverage of Overseas
Filipino Workers:
a. Coverage in the SSS shall be compulsory upon all sea-based and land-based
OFWs, provided, that they are not over 60 years old.

b. Manning agencies are considered as employers of sea-based OFWs. Thus,

manning agencies are jointly and severally or solidarily liable with their principals
with respect to the civil liabilities.

c. Land-based OFWs are compulsory members of SSS and considered as self-

employed.

d.the DFA, DOLE and all agencies involved in deploying OFWs are mandated to
negotiate bilateral labor agreements with the OFWs host countries to ensure the
payment of the SSS required contibution. Thus, land-based OFW shall no longer be
considered as self-employed. Instead, they shall be considered compulsorily
covered employees.
Compulsory Coverage of Overseas
Filipino Workers:
e. the DFA, DOLE, and the SSS shall ensure compulsory coverage of
OFWs through bilateral social security and labor agreements and other
measures for enforcement.

f. Upon the termination of their employment, OFWs may continue to

pay contributions on a voluntarily basis to maintain their rights to full
benefits.

g. Filipino permanent migrants, including Filipino immigrants,

permanent residents and naturalized citizens of their host countries
may be covered by the SSS on a voluntarily basis.
PENSION, RETIREMENT AND
OTHER BENEFITS
 MONTHLY PENSION
Shall be the highest of the ff:
a. The sum of the ff:
I. 300 pesos; plus
II. 20% of the monthly average salary credit; plus
III. 2% of the average monthly salary credit for each
credited year of service in excess of 10 years; or

b. 40% of the average monthly salary credit; or

c. 1,000 pesos
 MONTHLY PENSION

DEPENDENT’S PENSION

equivalent to 10% of the monthly pension or 250

pesos, whichever is higher, shall also be paid for
each dependent child conceived on or before the
date of contingency but not exceeding 5, beginning
with the youngest and without substitution.
 RETIREMENT BENEFITS
A member shall be entitled to the monthly pension for as long as
he lives if the following conditions are met:

a. the member has paid at least 120 monthly contributions.

b.the member has reached the age of 60 and is already

separated from employment or has ceased to be self-employed
or has reached the age of 65 years.

c If not qualified for the pension benefits above, member shall be

entitled to a lump sum benefit equal to the total contributions
paid by him and on his behalf
 DEATH BENEFITS
Upon the covered employee’s death,

1. He has paid at least 36 monthly contributions prior to the

semester of death. His beneficiaries shall be entitled to the
monthly pension and his dependents to the dependents’
pension.
2. If he has not paid the required 36 monthly contributions, his
primary or secondary beneficiaries shall be entitled to
whichever is higher between:
a. the lump sum benefit equivalent to the monthly pension
times the number of monthly contributions paid to the SSS
b. 12 times the monthly pension
 PERMANENT DISABILITY BENEFITS
Upon the permanent total disability of a member
1. If he has paid at least 36 monthly contributions prior to
the semester of disability, he shall be entitled to the
monthly pension.
2. If he has not paid the required 36 monthly contributions,
he shall be entitled to the higher between:
a. the lump sum benefit equivalent to the monthly
pension times the number of monthly contributions paid to
the SSS
b. 12 times the monthly pension
 PERMANENT DISABILITY BENEFITS

Monthly pension and dependents’

Re-employment: pension shall be suspended upon:

not earlier than 1 year from 1. re-employment or resumption

the date of his disability of self-employment
2. recovery of the disabled
subject to compulsory
member from his permanent
coverage total disability or
considered a new member 3. His failure to present himself
for examination at least once a
year upon notice by the SSS.
 PERMANENT DISABILITY BENEFITS
The following disabilities shall be deemed permanent
total:

Complete loss of sight of both eyes;

Loss of two limbs at or above the ankle or wrists;
Permanent complete paralysis of two limbs;
Brain injury resulting to incurable imbecility or
insanity; and
Such cases as determined and approved by the
SSS
 FUNERAL BENEFITS

A funeral grant of 12,000 pesos shall be

paid to help defray the cost of funeral
expenses upon the death of a covered
member, permanently totally disabled
employee or employer
 SICKNESS OF BENEFITS

A covered employee who has paid at least 3 monthly

contributions, confined more than 3 days in a hospital
or elsewhere with the Commission’s approval, shall,
for each day of compensable confinement or fraction
thereof, be paid by his employer, or the SSS, if such
person is unemployed, an allowance equivalent to
90% of his average daily salary credit
 SICKNESS BENEFITS
1. paid longer than 120 days in 1 calendar year, nor shall any
unused portion of the 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. daily sickness benefit shall not be paid from more than
240 days on account of the same confinement; and
3. employee member shall notify his employer within 5
calendar days after the start of his confinement. If
unemployed, he shall directly notify the SSS
SICKNESS BENEFITS
Sickness benefit starts from the first day of 100% of the daily
illness.
benefits shall be
• Payment schedule: reimbursed by the
- Employer: Every regular payday or 15th/last day
SSS to said employer
of each month.
- SSS (direct payment): Follows the same upon receipt of
schedule as employers. satisfactory proof of
• Benefit continues as long as it's due and
such payment and
payable. legality thereof

• Benefit starts only after using all sick leave with

full pay.
 MATERNITY LEAVE BENEFITS

Female workers in the government or private

sector shall be granted 105 days maternity leave
with full pay and an option to extend for an
additional 30 days without pay.

Solo parent: Additional 15 days maternity leave

with full pay.
 MATERNITY LEAVE BENEFITS
PRIVATE SECTOR:

Employee must notify employer of

pregnancy and expected childbirth date,
with notification forwarded to SSS. SSS reimburses the employer
100% of advanced benefits
Employer advances full payment within 30 upon proof of payment.
days of leave application.
Employer pays damages to
SSS if employee doesn't meet
Daily maternity benefits replace sickness contribution or notification
benefits for the same period. requirements.

Benefits only cover the first four deliveries

or miscarriages.
 Eligible members:
Under 60 years old
Made at least 36 monthly
contributions
UNEMPLOYMENT. 12 contributions within the last 18
months before unemployment
INSURANCE OR
INVOLUNTARY Benefits:
50% of average monthly salary
SEPARATION BENEFITS for a maximum of 2 months

Claiming:
Only once every 3 years for
involuntary unemployment
EXEMPTION FROM TAX, LEGAL PROCESS AND LIEN
No taxes, assessments, fees, charges, or customs/import duties
on:
SSS itself
All assets and properties
Contributions and income/investment earnings
Supplies, equipment, documents

Benefit payments exempt from:

All taxes, fees, charges

Benefit payments cannot be:

Attached, garnished, levied, or seized
EXEMPTION FROM TAX, LEGAL PROCESS AND LIEN
FEE OF AGENTS, ATTORNEYS, ETC.:
No fees allowed for:
Agents
Attorneys
Others involved in filing/pursuing SSS claims

Any agreements for such fees are invalid.

Withholding benefits for fee payment is prohibited.

Exception: Lawyers representing members before the SSS

Commission:Maximum fee: 10% of awarded benefits.
Fee payable only after benefit payment.
Agreements exceeding these terms are invalid.
EXEMPTION FROM TAX, LEGAL PROCESS AND LIEN
FEE OF AGENTS, ATTORNEYS, ETC.:
No fees allowed for:
Agents
Attorneys
Others involved in filing/pursuing SSS claims

Any agreements for such fees are invalid.

Withholding benefits for fee payment is prohibited.

Exception: Lawyers representing members before the SSS

Commission:Maximum fee: 10% of awarded benefits.
Fee payable only after benefit payment.
Agreements exceeding these terms are invalid.
EMPLOYEE’S AND EMPLOYER’S CONTRIBUTION

the above rates equally applies to self-employed, voluntary and other members.
 Contributions from Self-
employed Member
Basis:
monthly earnings declared at the time of
registration.

Amount to pay:
both the employer and employee
contributions.

SE member earning monthly incomes of one

thousand pesos (P1,000.00) or below may have
their contributions reduced by the Commission.
REMITTANCE OF
CONTRIBUTIONS
(Sec. 22)
 Remittance of Contribution
A. Contributions must be remitted to the SSS within the first 10
days of each calendar month following the applicable month or
within the timeframe prescribed by the Commission.

Collection and Remittance of Contribution: Quarterly or semi-

annually in advance by employers. Upon separation, any
overpaid contributions not yet due will be credited or refunded
to the employer.
Failure to Remit Contributions: Employers failing to remit
contributions on time will incur a penalty of two percent (2%)
per month from the due date until paid.
 Remittance of Contribution
B. If an employer refuses or neglects to pay contributions, the
SSS will collect them in the same manner as taxes under the
National Internal Revenue Code.

Failure or refusal of the employer to pay contributions will not

prejudice the covered employee's right to benefits.
Prescription of action: The employee has the right to institute
necessary action against the employer within twenty (20)
years from the time of delinquency or assessment by the SSS,
or from the time benefits accrue.
 Remittance of Contribution
C. The Commission may collect defaulted contributions from any person,
natural or juridical, through the following methods:

(1) Court Action: The Commission may initiate legal action in court,
which will prioritize and resolve the case ahead of other civil actions.
(2) Sheriff's Warrant: The Commission may issue a warrant to the
Sheriff of any province or city, instructing them to levy (seize) upon
and sell any real and personal property of the debtor.
 Remittance of Contribution
D. The last complete record of monthly contributions paid by the
employer or the average of the monthly contributions paid during the
past three (3) years as of the date of filing of the action for collection
shall be presumed to be the monthly contributions payable by and due
from the employer to the SSS for each of the unpaid months, unless
contradicted and overcome by other evidence.
The SSS retains the right to determine and collect the true and correct
contributions even after full payment under this provision, and the
employer remains liable under Section Twenty-eight of this Act.
Remittance of Contributions of the Self-employed: SE members
shall remit their monthly contributions quarterly as per the dates and
schedules specified by the Commission through rules and regulations.
Retroactive payment of contributions is not allowed, except as
provided in this Section.

Method of Collection and Payment: The SSS shall require a

complete and proper collection and payment of contributions,
along with proper identification of the employer and the
employee.
Payments may be made in various forms, including cash, checks,
stamps, coupons, tickets, or other reasonable devices adopted
by the Commission.
 EMPLOYMENT
RECORDS AND REPORT
(Sec. 24)
 Employment Records and Reports
Effect of Failure to report an employee
A. Report the names, ages, civil for coverage:
status, occupations, salaries, 1. Damages equivalent to the benefits
and dependents of all the employee would have received if
employees subject to reported on time. SE members will
compulsory coverage to the SSS. not receive corresponding benefits.
Covered SE members must 2. Damages equivalent to the higher of
submit the same report either the accumulated pension due
within 30 days of the as of the claim settlement date or
effective date of coverage. five (5) years' pension, including
dependents' pension.

EXP: Contigency occur within 30 days from day of employment.

 Employment Records and Reports
B. If the employer misrepresents the true date of
employment of the employee member or remits
contributions less than those required by the Act, resulting
in a reduction of benefits, the employer must pay damages
to the SSS to the extent of the reduction. The employer is
also liable for the payment of corresponding unremitted
contributions and penalties.
 Employment Records and Reports
C. Records and reports submitted to the SSS by employers
or members are kept confidential by the SSS, except in
compliance with a subpoena duces tecum (a court order
requiring the production of evidence) issued by the courts.
Conditions:
(1) Disclosure requires consent from the SSS President
or authorized official.
(2) Presumed correct as to the data and other matters.
(3) Basis for claim adjudication (the legal process of
resolving a dispute).
 Employment Records and Reports
D. Keep true and accurate work records as the Commission prescribes.
This includes an "Annual Register of New and Separated Employees"
obtained from the SSS, where the employer records the names, SSS
numbers, and other required data of employees hired or separated.
Submission: The annual register must be submitted to the SSS each
year in January.
Inspection: Records are subject to quarterly or as-needed
inspections by the SSS or its authorized representatives.
Employers may be required to submit additional reports concerning
their employees as needed for effective administration of the Act by
the SSS.
 Employment Records and Reports
Require prospective employees to present a registration
number obtained from the SSS as a condition of
employment.
If employees have been previously assigned registration
numbers due to previous employment, those numbers should
be used.
Issuance of registration numbers by the SSS does not
exempt the employer from complying with the provisions
outlined in paragraph (a) of this Section.
 Employment Records and Reports

F. Microfilm, non-erasable optical disk, and similar

archival media copies of original SSS records and reports,
or certified copies by the official custodian, hold the same
evidentiary value as the originals and be admissible as
evidence in all legal proceedings, notwithstanding any
contrary law.
 Employment Records and Reports
G. Local government units (LGUs) must require submission
of a certificate of SSS coverage and compliance with the
provisions of the Act before issuing any annual business
license or permit.
The SSS must issue the certification or clearance within
five (5) working days from receipt of the request.
 PENAL
CLAUSES
(Sec. 28)
 Penal Clauses
Offense Penalty
Making any false statement or representation: Prision
For the purpose of causing any payment Correccional in
to be made under this Act, where none is its medium and
authorized to be paid. maximum
False statements regarding compensation periods and a
paid or received, or other material facts, in fine of not more
claims for benefits or loan applications than P5,000.
with the SSS. (Art. 172, Revised
Penal Code)
 Penal Clauses
Offense Penalty
1. Unauthorized buying, selling, exchanging, Fine: P5,000 -
or any form of transfer of specified P20,000; and
devices used for contribution collection. Imprisonment:
2. Altering, forging, counterfeiting, or 6yrs and 1 day-
possessing altered/forged materials of 12yrs, or both at
specified devices used for contribution the discretion
collection with intent to defraud.
of the court
3. Failure or refusal to comply with the
provisions of the Act or its regulations.
 Penal Clauses
If an act or omission penalized by this Act is committed by any
juridical persons, its managing head, directors, or partners shall
be liable for the penalties provided in this Act for the offense.

Malversation of Public Funds:

Any SSS employee who unlawfully takes or misappropriates
funds or property belonging to the SSS will face penalties as
outlined in Article 217 of the Revised Penal Code.
 Penal Clauses
Employer's Failure to Remit; presumption:
An employer who deducts monthly contributions or loan
payments from an employee's compensation but fails to
remit these deductions to the SSS within thirty (30) days is
presumed to have misappropriated such contributions.

Penalty:
The employer shall suffer the penalties outlined for
Estafa/Swindling as provided in Article 315 of the Revised
Penal Code.
GAME TIME!
BASKETBALL
1. What is the SSS contribution
rate for 2024?
2. Remittance to the SSS shall be
made within how many days of
each calendar month?
Thank
you very
much!