Section 1.

Title • Decisions involving only questions of law go directly to the

Supreme Court. No appeal bond is required.
Social Security Act of 2018.
d. The Commission can issue a writ of execution to
Section 2. Declaration enforce its final decisions or awards, either on
its own initiative or at the request of an
• Promote a tax-exempt social security system. interested party.
• Emphasizes the value of “work, save, invest and • The Commission directs a city or provincial
prosper.” sheriff, or an appointed sheriff, to carry out
Section 3. SSS the enforcement.
• Refusal to comply with the decision or writ
• Principal place: Metro Manila. after being asked, is punishable for
• Composed of 9 members. contempt upon the Commission's
• Chairperson: Sec. of Finance. application, following Rule 71 of the Rules
• Vice Chair: SSS President. of Court.
• Ex officio mem: Sec. of Labor & Employment.
Section 6. Auditor and Counsel.
• 3 members rep of worker’s group; and
• 3 members rep of employer’s group; • Auditor: Chairman of COA
• At least 1 in each group shall be a woman. • Counsel: Secretary of Justice
• All are appointed by the president.
Section 7. Oaths, witnesses, and Records
• Members must have expertise in fields like
social security, finance, or law, with at least • Officials or employees of the Commission can
10 years of leadership experience. administer oaths, certify official acts, and issue
• Term: 3 years. Extendable for another 3. subpoenas when authorized.
• First six members have staggered initial terms of • Subpoenas may compel witnesses to attend
one, two, and three years. and require the production of documents and
• Vacancies are filled only for the remaining term. records relevant to any issues under this Act.
• Cases of noncompliance will be handled by the
Section 5. Disputes.
Commission according to the law.
a. Disputes related to matters under this Act will
be handled by the Commission.
• Cases can be heard by the Commission itself,
its members, or authorized hearing officers.
• Decisions must be made within 20 days after
all evidence is submitted.
• The process for filing and resolving disputes
will follow the rules set by the Commission.
b. Decisions made by the Commission become
final and enforceable 15 days after notification
unless appealed.
• Parties must exhaust all remedies with the
Commission before seeking judicial review.
• The Commission will be involved in any
court case regarding its decisions and can
be represented by its own attorney, the
Solicitor General, or a public prosecutor if
requested.
c. The Court of Appeals can review Commission
decisions on disputed matters, focusing on both
law and facts.
• Appeals must be filed within 15 days of
notification of the Commission's decision.
Summary Notes on Coverage Summary Notes Compulsory Coverage of the Self-
Employed
Compulsory Coverage
Coverage Requirements
• Who is Covered:
o All employees, including domestic • Compulsory for Self-Employed: Coverage in the
workers (kasambahays), under the age SSS is mandatory for specific self-employed
of 60. individuals as defined by the Commission.
o Employers of these employees are also
required to provide coverage. Categories of Self-Employed Individuals

Integration with Private Benefit Plans 1. Self-Employed Professionals: Includes various

licensed professions.
• Protection of Existing Benefits: 2. Business Owners: Partners and single
o Benefits already earned under private proprietors of businesses.
benefit plans cannot be discontinued 3. Media Professionals: Actors, actresses,
or reduced. directors, scriptwriters, and news
• Contribution Adjustments: correspondents not classified as employees.
o If an employer's contributions to a 4. Athletes and Coaches: Professional athletes,
private plan exceed SSS requirements, coaches, trainers, and jockeys.
they only need to pay the SSS 5. Farmers and Fishermen: Individual farmers and
contribution. fishermen.
o The employer can continue
contributing to the private plan, minus General Provisions
the amount contributed to the SSS,
ensuring total contributions remain • Applicability: All provisions applicable to
unchanged. covered employees also apply to self-employed
• Modifications to Private Plans: persons, unless stated otherwise.
o Any necessary changes to private
benefits due to integration must be
agreed upon between employers and
employees.
• Management of Private Plans:
o The private benefit plan remains under
the employer's management unless an
agreement states otherwise.
• Additional Benefits:
o Employers and employees can
negotiate for benefits beyond those
provided by the SSS.

Voluntary Coverage

• Spouses:
o Spouses who manage household affairs
full-time can opt for voluntary SSS
coverage unless they are engaged in
other vocations subject to mandatory
coverage.
Summary Notes Compulsory Coverage of Overseas Section 10. Effective Date of Coverage
Filipino Workers (OFWs)
a. Employer – 1st day of operation
(a) Coverage Requirements b. Employee – 1st day of employment
c. Self-Employed – upon registration
• Compulsory for all OFWs: Sea-based and land-
Section 11. Effect of Separation
based, under 60 years old.
• Benefits Provided: Includes retirement, death, • When an employee under compulsory coverage
disability, funeral, sickness, and maternity. is separated from their job, the employer’s
contributions and the employee's obligation to
(b) Manning Agencies pay contributions stop at the end of the month
of separation.
• Employer Responsibility: Manning agencies are
• The employee will still receive credit for all
considered employers of sea-based OFWs.
contributions made and can access benefits as
• Liability: They are jointly liable with principals
for violations of the Act. per the Act.
• Criminal Liability: Individuals managing • The employee has the option to continue paying
manning agencies can face criminal charges for total contributions to maintain their right to full
violations. benefits.

Section 12. Effect of No Income (Self-Emp)

(c) Land-based OFWs
• A self-employed member who earns no income
• Self-Employed Status: Treated as self- in a month is not required to pay contributions
employed unless covered by bilateral for that month.
agreements.
• However, they can continue making
contributions under the same rules that apply
(d) Bilateral Labor Agreements
to separated employees.
• Negotiation Mandate: DFA and DOLE to • Retroactive payments of contributions are not
negotiate agreements with host countries to allowed, except as specified in Section 22-A.
ensure employer contributions for land-based
OFWs.
• Reclassification: Once contributions are
secured, land-based OFWs are considered
compulsory employees rather than self-
employed.

(e) Enforcement

• Agencies' Role: DFA, DOLE, and SSS to ensure

coverage through agreements and
enforcement measures.

(f) Post-Employment Contributions

• Voluntary Continuation: OFWs can voluntarily

continue to pay contributions after ending
overseas employment.

(g) Permanent Migrants

• Coverage Extension: Provisions for Filipino

permanent migrants, including immigrants and
naturalized citizens.
Summary Notes on Monthly Pension Benefits Summary Notes on Retirement Benefits

1. Pension Calculation: 1. Eligibility for Monthly Pension:

o The monthly pension is the highest of: o Must have paid 120 monthly
1. Sum of: contributions before retirement.
▪ ₱300 plus o Age requirements:
▪ 20% of the average monthly salary ▪ 60 years: Must be separated from
credit plus employment or cease self-employment.
▪ 2% of the average monthly salary ▪ 65 years: Eligible regardless of
credit for each credited year of service employment status.
exceeding 10 years. o Option to receive the first 18 monthly
2. 40% of the average monthly pensions as a lump sum at a preferential
salary credit. interest rate.
3. ₱1,000. 2. Lump Sum Benefit:
o Minimum payment duration: 60 o If a member is 60 years old at retirement
months. and does not qualify for a pension:
2. Minimum Pension Rates: ▪ Entitled to a lump sum equal to total
o ₱1,200 for members with at least 10 contributions paid, provided they are
credited years of service. separated and not continuing
o ₱2,400 for members with at least 20 contributions.
credited years of service. 3. Suspension of Pension:
o Potential for increases based on o Monthly pension is suspended if the
actuarial soundness. retired member (under 65) is
3. Additional Benefit Allowance: reemployed or resumes self-
o An additional ₱1,000 monthly employment.
allowance for all retirement, death, 4. Death Benefits for Retired Members:
and disability pensioners receiving o Primary beneficiaries receive the
pensions from January 2017 onwards. monthly pension upon the member's
o Future allowances depend on actuarial death.
soundness and fund viability, as o If no primary beneficiaries exist and
determined by the Commission. death occurs within 60 months of starting
the pension, secondary beneficiaries
Summary Notes on Dependents’ Pension receive a lump sum equivalent to the
total monthly pensions for the remaining
1. Eligibility: five-year guaranteed period.
o Dependents’ pension is payable when 5. Monthly Pension Calculation:
the monthly pension is due to: o For retirees over 60, the pension is the
▪ Death higher of:
▪ Permanent total disability ▪ Computed at the earliest retirement
▪ Retirement eligibility.
2. Amount: ▪ Computed at the actual retirement
o The dependents’ pension is either: date.
▪ 10% of the monthly pension, or
▪ ₱250, whichever is higher.
3. Coverage for Children:
o Benefits apply for up to five dependent
children conceived before the
contingency.
o Payments start with the youngest child
and proceed without substitution.
4. Preference for Legitimate Children:
o In cases with both legitimate and
illegitimate children, legitimate
children are given preference.
Summary Notes on Death Benefits

1. Eligibility for Monthly Pension:

o Condition: Member must have paid at
least 36 monthly contributions before
death.
o Beneficiaries: Primary beneficiaries
entitled to a monthly pension.
2. Secondary Beneficiaries:
o If no primary beneficiaries exist,
secondary beneficiaries receive a lump
sum equivalent to 36 times the
monthly pension.
3. Insufficient Contributions:
o If the member has not paid the
required 36 contributions:
Beneficiaries receive a lump sum equal
to:
▪ Monthly pension × number of
contributions paid, or
▪ 12 times the monthly pension,
whichever is higher.

Funeral Grant

o A funeral grant of ₱12,000.00 will be provided,

either in cash or in kind, to assist with funeral
expenses upon the death of a member,
including permanently totally disabled
members or retirees.
Summary of Permanent Total and Partial Disability Permanent Partial Disability
Benefits
1. Before 36 Contributions:
Permanent Total Disability o If the disability occurs before reaching
36 contributions, the benefit is a
1. Eligibility: percentage of a lump sum based on the
o Must have paid at least 36 monthly degree of disability.
contributions before the semester of 2. After 36 Contributions:
disability. o Monthly pension is granted, limited to
o Monthly pension granted upon a specified number of months
permanent total disability. depending on the nature of the
2. Lump Sum Alternative: disability (e.g., loss of a thumb: 10
o If fewer than 36 contributions, a lump months).
sum is given, calculated as the monthly 3. Compensability Ratios:
pension times the number of o The percentage of disability is
contributions paid or 12 times the calculated based on the ratio of
monthly pension, whichever is higher. compensable months to 75, capped at
3. Reemployment: 100% for related disabilities.
o If a member who received a lump sum 4. Lump Sum for Short Duration:
becomes reemployed or self-employed o For benefits payable for less than 12
within one year of disability, they will months, the monthly pension is given
be considered a new member under in a lump sum.
compulsory coverage. 5. Contribution Consideration:
4. Suspension of Benefits: o Contributions are deemed paid for
o Monthly pensions and dependents' months during which a member
pensions are suspended upon receives partial disability benefits,
reemployment, recovery, or failure to based on the last contribution before
present for annual examination. disability.
5. Beneficiaries: 6. Cessation of Benefits:
o Upon the member's death, primary o If a member on partial disability
beneficiaries receive the monthly pension retires or dies, their disability
pension. pension ceases.
o If no primary beneficiaries exist and the
member dies within 60 months of
receiving the pension, secondary
beneficiaries get a lump sum for the
remaining guaranteed period.
6. Definition of Permanent Total Disability:
o Includes complete loss of sight in both
eyes, loss of two limbs, permanent
paralysis of two limbs, severe brain
injury, and other cases approved by
SSS.
Daily Sickness Benefit Summary will only cover days starting from the tenth
calendar day before the notification to the SSS.
1. Eligibility:
o Must have at least 3 monthly 6. Claim Filing Period: Reimbursements can only
contributions in the 12 months before be made for confinement occurring within one
sickness/injury. year before the claim is received by the SSS,
o Confinement must exceed 3 days, with except for hospital confinements, which must
SSS approval. be filed within one year from the last day of
2. Benefit Amount: confinement.
o Daily benefit: 90% of average daily 7. Employer Obligations
salary credit.
3. Conditions: • Consequences of Failure to Notify: If an
o Duration: employer fails to notify the SSS within the
▪ Maximum of 120 days per required period, they cannot recover the daily
calendar year (unused days do allowance they advanced to the employee.
not carry over).
▪ Maximum of 240 days for a 8. Claims and Interest
single confinement.
• Adjudication Period: The SSS must adjudicate
o Notification:
reimbursement claims within two months of
▪ Employee must notify
employer within 5 calendar receipt. If payment is delayed beyond one
days of sickness. month after this period, the reimbursement will
▪ Notification is not needed if accrue simple interest of 1% per month until
hospitalized or if the injury paid.
occurred at work.
9. General Provisions
▪ Unemployed/self-employed
must notify SSS within 5 days, • The same notification and claim filing
unless hospitalized. requirements apply to all claims submitted to
▪ If notification is late, the SSS, ensuring consistency and
confinement is considered to
accountability in the claims process.
start no earlier than 5 days
before the notification.
4. Compensable Confinement

• Start of Confinement: The compensable period

begins on the first day of sickness. Payments for
benefits should be made by the employer on
regular paydays (the 15th and last day of the
month) or directly by the SSS for self-employed
or unemployed members.

• Exhaustion of Sick Leave: Benefits will only

begin once all sick leave with full pay has been
used.

5. Reimbursement to Employers

• Reimbursement Rate: Employers will be

reimbursed 100% of the daily benefits paid to
employees once they provide satisfactory proof
of payment.

• Notification Timeline: Employers must notify

the SSS of the confinement within five calendar
days of receiving notification from the
employee. If they fail to do so, reimbursement
Maternity Benefits for Female Members Unemployment Insurance or Involuntary Separation
Benefits
1. Eligibility: A female member must have paid at
least three monthly contributions in the twelve 1. Eligibility:
months before childbirth or miscarriage.
o Must be under 60 years old.
2. Benefit Amount:
o Must have paid at least 36 months of
• Daily maternity benefit: 100% of the contributions, with 12 of those within
average daily salary credit. the 18 months before involuntary
unemployment or separation.
• Duration: 60 days for normal delivery;
78 days for cesarean delivery. 2. Benefit Amount:

3. Conditions: o Monthly cash payments equivalent to

50% of the average monthly salary
• Notification: The employee must notify credit.
her employer of her pregnancy and
expected delivery date, which must be o Maximum duration: 2 months.
forwarded to the SSS.
3. Limitations:
• Payment Timing: Employers must
o Benefits can only be claimed once
advance full payment of maternity
every 3 years.
benefits within 30 days after receiving
the maternity leave application. o In cases of multiple compensable
contingencies, only the highest benefit
• Exclusivity: Receipt of maternity will be paid, following Commission
benefits excludes eligibility for sickness rules.
benefits for the same period.

• Limit on Claims: Maternity benefits

apply only to the first four deliveries or
miscarriages.

4. Reimbursement:

• The SSS will reimburse employers 100%

of the maternity benefits paid upon
receiving proof of payment.

5. Employer Liability:

• If contributions were not remitted or if

the employer failed to notify the SSS of
the pregnancy, the employer must pay
damages equivalent to the benefits the
employee would have received.
Summary Notes on Non-Transferability of Benefits Summary Notes on SEC. 16: Exemption from Tax, Legal
Process, and Lien
1. Payment of Benefits
1. General Exemption
• The SSS is responsible for promptly paying
benefits to entitled persons as outlined in the • The SSS and all its assets, properties,
Act. contributions, and income (including
• Retirement benefits are paid on the day of investment earnings) are exempt from:
contingency if the necessary documents are o Taxes
submitted at least six months in advance. o Assessments
o Fees
2. Eligibility Based on Nationality o Charges
o Customs or import duties
• Foreign beneficiaries from countries that do
not provide reciprocal benefits to Filipinos, or 2. Exemption of Benefit Payments
countries unrecognized by the Philippines, are
not entitled to benefits. • All benefit payments made by the SSS are also
• The Commission may allow payments exempt from:
regardless of nationality if it serves the SSS's o Taxes
best interests. o Fees
o Charges
3. Representation for Minors or Incapacitated • These payments cannot be subjected to
Individuals attachments, garnishments, levies, or seizures
by any legal or equitable process.
• If a recipient is a minor or incapable of
managing their affairs, the Commission will 3. Debt to SSS
appoint a representative.
• No appointment is needed if the recipient lives • The only exception to the non-attachment of
with their parents or spouse, who can receive benefits is for debts owed by the member to
the benefits directly as a representative payee. the SSS.

4. Non-Transferability of Benefits 4. Tax Measures

• Benefits cannot be transferred, and no power • No tax measure can be applied to the SSS unless
of attorney will be recognized for collection, it explicitly revokes the established tax-
except for those physically unable to collect in exemption policy outlined in Section 2 of the
person. Act.
• Any tax assessment against the SSS is deemed
5. Death Benefits null and void.

• If no qualifying beneficiary exists, death

benefits will be paid to the legal heirs according
to succession laws.
Summary Notes on Fee of Agents, Attorneys, Etc. Summary Notes on Employee’s Contributions

1. Prohibition of Fees for Claims 1. Deduction of Contributions

• No agent, attorney, or individual may charge a • Starting from the last day of the month when
fee for services related to preparing, filing, or an employee’s compulsory coverage begins,
pursuing claims for benefits under this Act. employers must:
• Any agreements to the contrary are considered o Deduct the employee’s contributions
null and void. from their monthly salary or earnings.

2. Deduction from Benefits 2. Calculation of Contributions

• It is prohibited to deduct or retain any amounts • The amount deducted corresponds to the
from benefits for the payment of fees for these employee’s salary and follows:
services. o The monthly salary credits.
o The schedule and rate of contributions
3. Attorneys’ Fees established by the Commission.

• Philippine Bar members representing clients in 3. Application to Other Members

cases heard by the Commission can receive
attorneys’ fees, limited to: • The rules for contributions apply not only to
o 10% of the benefits awarded by the employees but also to:
Commission. o Self-employed individuals.
o Fees are payable only after the actual o Voluntary members.
payment of benefits. o Other applicable members under the
SSS provisions.
4. Penalties for Violations

• Violations of this section can result in:

o A fine of ₱500 to ₱5,000, or
o Imprisonment of 6 months to 1 year, or
o Both, at the court's discretion.
Section 19: Employer's Contributions

(a) Contribution Requirements Section 20: Government Contribution

• Timing: Employers must start paying • Annual Appropriation: Congress must allocate
contributions from the last day of the month necessary funds from the National Treasury
when an employee's coverage begins, each year to cover the estimated expenses of
continuing monthly. the SSS.
• Amount: Contributions follow the schedule • Additional Funding: Congress may provide
outlined in Section 18. extra funds as needed to maintain an adequate
• No Deductions: Employers cannot deduct or working balance, based on periodic actuarial
recover these contributions from employees’ studies.
compensation, regardless of any contracts.

(b) Remittance and Reporting

Section 21: Government Guarantee
• Quarterly Submission: Employers must submit
a quarterly collection list to the SSS at the end • Benefit Assurance: The government guarantees
of each calendar quarter. that the benefits outlined in the Act will not be
• Information Required: reduced.
o Employer's ID number • Solvency Responsibility: The Republic of the
o Names and SS numbers of employees Philippines assumes overall responsibility for
o Total contributions paid for the ensuring the financial stability of the SSS.
quarter.

Section 19-A: Contributions of the Self-Employed

• Contribution Basis: Self-employed individuals

contribute to the SSS based on the schedule in
Section 18.
• Average Monthly Net Earnings:
o At registration, self-employed
members declare their average
monthly net earnings, which are
considered their monthly
compensation.
o Contributions include both employer
and employee shares.
• Definition of Net Earnings:
o Calculated from net income of the
business or profession, as shown in the
previous year’s income tax return.
o Excludes rental income, dividends,
interest, and other non-business-
related incomes.
• Adjusting Earnings Declaration:
o The declared average monthly net
earnings remain the basis for
contributions unless the member
updates this declaration at the start of
the year based on the latest income tax
return.
o The new declaration will then serve as
the basis for contributions moving
forward.
Section 22: Remittance of Contributions • Post-Grace Period Penalty: If contributions are
not remitted within the grace period, the 3%
(a) Contribution Payment Schedule penalty applies from the original due date.

• Deadline: Contributions must be remitted to

the SSS within the first seven days of each
month following the applicable month, or as Section 22-A: Remittance of Contributions of Self-
prescribed by the Commission. Employed
• Penalty for Late Payment: If contributions are
not paid on time, a penalty of 3% per month • Payment Schedule: Self-employed members
applies until paid. must remit their monthly contributions
• Advance Payments: The Commission may allow quarterly, following dates specified by the
quarterly or semi-annual advance payments, Commission.
with any excess contributions refunded or • Late Payment Penalty: A penalty of 3% per
credited to the employer upon employee month for late payments applies, as outlined in
separation. Section 22(a).
• Collection Procedures: The methods of
(b) Collection for Non-Payment collection for penalties and contributions
detailed in Sections 22(b), (c), and (d) also apply
• Tax Collection Method: If an employer neglects to self-employed members.
to pay, the SSS can collect contributions as tax
debts under the National Internal Revenue
Code.
• Employee Rights: Employees retain their right Section 23: Method of Collection and Payment
to benefits regardless of the employer's
payment status. • Collection Requirements: The SSS requires
• Time Limit for Action: Legal action can be complete and proper collection of
initiated within 20 years of the delinquency contributions, ensuring proper identification of
being known or the benefit accruing. both the employer and the employee.
• Payment Methods: Contributions can be paid in
(c) Collection Methods for Defaults various forms, including cash, checks, stamps,
coupons, tickets, or any other reasonable
1. Court Action: The SSS can file a lawsuit to method approved by the Commission.
collect unpaid contributions, which will take
precedence over other civil actions.
2. Warrant Issuance: The SSS can issue a warrant
to levy and sell the debtor's real and personal
property.

(d) Presumption of Contributions

• Monthly Contribution Records: The last

recorded monthly contributions or the average
over the past three years will be presumed due
for unpaid months, unless proven otherwise.
• Ongoing Liability: The SSS can still determine
and collect the correct contributions even after
the employer makes some payments.

(e) Grace Period for Delinquent Employers

• Penalty Waiver: Employers who have not

remitted contributions can do so within six
months without incurring the 3% penalty.
Section 24: Employment Records and Reports (e) Employee Registration Requirement

(a) Employer Reporting Requirements • SSS Registration Number: Employers must

require employees to present an SSS
• Immediate Reporting: Employers must report registration number as a condition of
the names, ages, civil status, occupations, employment.
salaries, and dependents of all employees • Use of Previous Numbers: Employees
subject to compulsory coverage. previously assigned registration numbers must
• Liability for Non-Reporting: If an employee dies, use those numbers, and this requirement does
becomes sick or disabled, or reaches age 60 not exempt employers from reporting
without prior reporting, the employer must pay obligations.
damages equivalent to the benefits owed. For
pension benefits, the employer must pay (f) Evidentiary Value of Records
damages equal to five years’ worth of monthly
pension. • Microfilm Copies: Certified microfilm copies of
• Grace Period: If the contingency occurs within original SSS records and reports hold the same
30 days of employment, the employer is not evidentiary value as originals and are
liable for damages. admissible in legal proceedings.

(b) Misrepresentation Consequences

• Misrepresentation Penalty: If an employer Section 24-A: Report and Registration of the Self-
misrepresents the employment date or under- Employed
remits contributions, resulting in reduced
benefits, they must pay damages equivalent to • Reporting Requirements: Self-employed
the reduction. individuals must report their name, age, civil
• Unremitted Contributions: Employers are also status, occupation, average monthly net
liable for any unremitted contributions and income, and dependents to the SSS within 30
associated penalties. days of coverage activation.
• Benefit Limitation: If an individual fails to report
(c) Confidentiality and Record Accuracy within the 30-day period and subsequently
dies, becomes sick, disabled, or reaches age 60,
• Confidentiality: Employee and employer the SSS will not provide the corresponding
records submitted to the SSS are confidential benefits.
and cannot be disclosed without proper
authorization or subpoena.
• Presumed Accuracy: Records are presumed
correct unless corrections are made prior to Section 25: Deposit and Disbursements
claiming benefits. Payments made in good faith
by the SSS discharge them from liability unless • Fund Management: All money collected by the
another beneficiary claims prior. SSS is to be deposited, managed, and disbursed
according to laws governing other public
(d) Record-Keeping Requirements special funds.
• Expense Limits:
• Accurate Records: Employers must maintain o A maximum of 12% of total yearly
accurate employment records and an "Annual contributions plus 3% of other
Register of New and Separated Employees." revenues can be used for salaries,
• Information Required: This register must office equipment, operational
include employment dates, names, SSS expenses, and maintaining regional
numbers, and other required data, submitted offices.
to the SSS annually in January. o If actual expenses are below the
• Inspection Rights: SSS representatives may maximum allowed in a given year, the
inspect these records quarterly or as needed. unused portion cannot be carried over
as additional spending in subsequent
years.
Section 26: Investment of Reserve Funds Section 27: Records and Reports

• Reserve Fund Creation: Revenues not required • Record Keeping: The administrator is
for current administrative expenses are responsible for maintaining records of the
accumulated in a "Reserve Fund." operations, funds, and disbursements of the
• Investment Reserve Fund: Portions of the System.
Reserve Fund not needed for immediate • Annual Report: Each January, the administrator
benefit obligations are invested to achieve an prepares a report for the President and
average annual income of at least 9%. Congress, detailing:
o Operations of the System from the
Investment Options: previous year.
o Statistical data on covered individuals,
1. Government Bonds: Investments in interest- their occupations, employment status,
bearing bonds or securities backed by the and benefits paid.
Government of the Philippines. o Financial status at year-end.
o Recommendations for improvements.
2. Domestic Bank Deposits: Interest-bearing
• Public Disclosure: A synopsis of the annual
deposits or securities in domestic banks,
capped by the bank's unimpaired capital or report, particularly on the financial status and
total private deposits. benefits administered, is published in two
3. Loans to Government: Loans or advances to the newspapers of general circulation in the
National Government for infrastructure Philippines.
projects, with tolls collected by the SSS.
4. Housing Loans: Direct housing loans to covered
employees and group housing projects,
prioritizing low-income groups, capped at 30%
of the Investment Reserve Fund.
5. Employee Loans: Short and medium-term loans
to employees for salary, education, calamity, or
emergency needs, capped at 10% of the
Investment Reserve Fund.
6. Income-Earning Projects: Investments in
projects secured by first mortgages on real
estate, aimed at benefiting the SSS and its
members.
7. Mortgagors' Insurance Account: SSS can insure
its interests on properties mortgaged to it,
establishing a separate account for insurance
operations.
8. Private Insurers: SSS may insure its interests
with private companies, with examinations
conducted by the Insurance Commission every
two years.
9. Corporate Bonds: Bonds or debentures from
solvent corporations, provided the issuer has a
solid payment history and meets specific
financial criteria, capped at 10%.
10. Preferred Stocks: Investments in preferred
stocks of solvent corporations with a history of
regular dividends, capped at 10%.
11. Common Stocks: Investments in common
stocks of solvent corporations listed on the
stock exchange, with proven profitability,
capped at 10%.
Section 28: Penal Clause Section 29: Government Aid

Offenses and Penalties: • Eligibility for Assistance: Establishing the Social

Security System does not prevent covered
1. False Statements: employees and employers from receiving
o Making false statements to cause government assistance, whether financial or
unauthorized payments under the Act otherwise.
can lead to penalties under Article 172
of the Revised Penal Code.
2. Fraudulent Payments:
o Receiving payments without Section 30: Separability Clause
entitlement with intent to defraud can
result in a fine of ₱500 to ₱5,000 and • Invalid Provisions: If any provision of this Act is
imprisonment from six months to one declared invalid, the remaining provisions will
year. continue to be effective, and the invalidity will
3. Unauthorized Use of Instruments: not affect their application to other individuals
o Buying, selling, or using stamps, or situations.
coupons, or other devices without
authorization can incur fines and
imprisonment.
4. Forgery and Counterfeiting: Section 31: Saving Clause
o Altering or counterfeiting payment
instruments may lead to fines of • Amendment Rights: The Assembly retains the
₱1,000 to ₱10,000 or imprisonment right to amend, alter, or repeal any part of this
from one to five years. Act. No person shall have vested rights based
5. Non-Compliance: solely on the enactment or operation of this
o Failing to comply with the Act or Act.
regulations can result in fines and
imprisonment. Employers failing to
register employees or remit
contributions face specific penalties. Section 32: Effectivity
6. Corporate Liability:
o If an association or corporation
• Commencement: This Act shall take effect upon
commits an offense, its managing head
its approval.
or directors may be held liable.
7. Misappropriation by Employees:
o Employees who misappropriate funds
belonging to the System face penalties
under Article 217 of the Revised Penal
Code.
8. Employer Misappropriation:
o Employers who fail to remit deducted
contributions within thirty days are
presumed to have misappropriated
those funds and may face penalties
under Article 315 of the Revised Penal
Code.
9. Criminal Actions:
o Criminal actions for violations can be
initiated by the SSS or affected
employees, with the option for the SSS
to file in the jurisdiction of the relevant
provincial or regional office.