SOCIAL SECURITY

SYSTEM LAW
BLANCO, DELA CRUZ, DUARTE, PAGUYO,
RAMONES, RINION, SANTOS, & VALERO

I.
INTRODUCTION/BACKGROUN
D

Social Security Act of

1997
REPUBLIC ACT NO. 8282
AN ACT FURTHER STRENGTHENING
THE SOCIAL SECURITY

SYSTEM THEREBY AMENDING FOR THIS PURPOSE, REPUBLIC ACT

NO. 1161, AS AMENDED, OTHERWISE KNOWN AS THE SOCIAL
SECURITY LAW.

SSS was created into law on September 1, 1957 under RA

1161 and was amended under RA 8282 on May 1, 1997

DECLARATION OF POLICY

"It is the policy of the State to establish, develop,

promote and perfect a sound and viable taxexempt social security system suitable to the
needs of the people throughout the Philippines
which shall promote social justice and provide
meaningful protection to members and their
families against the hazards of disability, sickness,
maternity, old age, death and other contingencies
resulting in loss of income or financial burden.
Toward this end, the State shall endeavor to
extend social security protection to workers and
their beneficiaries." (Section 2, RA 8282)

STATEMENT OF MISSION

To manage a sound and viable social

security system which shall promote social
justice and provide meaningful protection to
members and their families against the
hazards of disability, sickness, maternity,
old age, death and other contingencies
resulting in loss of income or financial
burden.

STATEMENT OF VISION

A viable social security institution providing

universal and equitable social protection
through world-class service.

STATEMENT OF CORPORATE
VALUES

The SSS aims to institutionalize a corporate

culture that instills the core values of trust,
empowerment and teamwork.

II. Membership with

SSS

Membership is for life

When you register for SSS membership in any

capacity, either as an employee-member during
employment, or as a self-employed or voluntary
member, you become a member for life whereby
contributions remitted could no longer be withdrawn
or refunded. Your contributions then become savings
for the future which will serve as basis for the
granting of social security benefits in times of
contingencies. During such time that you fail to
remit contributions, you may still be eligible for the
benefits and loan privileges offered by SSS, provided
that you meet the necessary qualifying conditions

Types of coverage
under the SS
Program:
I.
II.

Compulsary Coverage
Voluntary Coverage

I. Compulsory Coverage

Employers
An employer, or any person who uses the services of
another person in business, trade, industry or any
undertaking.
A social, civic, professional, charitable and other nonprofit organization which hire the services of
employees are considered "employers."
A foreign government, international organization or
its wholly-owned instrumentality such as embassy in
the Philippines, may enter into an administrative
agreement with the SSS for the coverage of its
Filipino
employees.
Question:
Can employers hire employees without SS
numbers?
No. Section 24 (e) of the SS Law requires the presentation
of SS number as a condition for employment.

I. Compulsory Coverage

Employees

A private sector employee, whether permanent, temporary or provisional, who is

not over 60 years old.

A household-helper earning at least P1,000 a month is compulsorily covered

starting
Sept.
1,
1993.
A household-helper is any person who renders domestic or household services
exclusively to a household employer such as maid, gardener, cook, governess,
and other similar occupations, who is not a member of the family of the
household employer (HR) or his/her spouse.

A Filipino seafarer upon actual deployment by the manning agency which,

together with the foreign ship owner, act as employers.

An employee of a foreign government, international organization or their whollyowned instrumentality based in the Philippines, which entered into an
administrative agreement with the SSS for the coverage of its Filipino workers.

I. Compulsory Coverage

Self-Employed Persons
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. Included, but not limited to the following
are self-employed persons:
1. self-employed professionals;
2. partners, single proprietors of businesses and board directors of
corporations duly registered with appropriate government agencies;
3. actors, actresses, directors, scriptwriters and news correspondents
who do not fall within the definition of the term "employee;"
4. professional athletes, coaches, trainers and jockeys;
5. farmers and fisherfolks; and
6. workers in the informal sector such as market and ambulant
vendors, public utility transport drivers, tourism industry-related
workers, and others similarly situated.

What services are exempt from

compulsory coverage as employee?
Casual employment
Government service
Employment of single proprietor in his own
business

Problem:

A textile company hires 10 carpenters to repair

the roof of its factory which was destroyed by
typhoon Lando. Are the carpenters subject to
compulsory coverage under the SSS law?

Answer: No. The employment is purely casual and

not for the purpose of the occupation or business
of the employer. Their engagement is occasioned
by the passage of the typhoon; they are not hired
on the regular basis.

Problem:
Maning, a carpenter is hired by the paper
manufacturing firm to work in its maintenance
department. Considering that the work of
carpenter is not directly related to paper
manufacturing, is the employment of Maning
purely casual?
Answer: No. The employment of Maning is
REGULAR and not casual. Although his work as a
carpenter has no direct relation to paper
manufacturing, his employment is not
intermittent or dependent upon the occurrence of
a contingency. He reports to work even if there
are no repairs to be made.

II. Voluntary Coverage

Separated Members
A member who is separated from employment or ceased to be a
self-employed/overseas Filipino worker/non-working spouse may
opt to become a Voluntary Member and continue paying SSS
contributions on his/her own account.

Question: What is the effect of a member's separation from

employment?

Upon separation from employment, employer's obligation to pay members SSS contributions
ceases. However member shall still be credited with all the contributions paid on his behalf and
remain entitled to SSS benefits and privileges, as long as he/she meet the necessary qualifying
conditions.
Member may opt to continue paying the total contributions as a voluntary member to maintain
his/her right to full benefits.
In case of re-employment with the private sector, he/she can stop paying as a voluntary member
and resume payment of contributions as an employee-member through his/her employer.
In case of re-employment with the public sector wherein he/she will be covered by the GSIS)
member may opt to continue paying SSS contributions as a voluntary member to enjoy social
security benefits under both institutions .

II. Voluntary Coverage

Overseas Filipino Workers (OFWs)

A Filipino recruited in the Philippines by a
foreign-based employer for employment
abroad; having a source of income in a
foreign country; and permanent resident in
a foreign country.

II. Voluntary Coverage

Non-Working Spouse 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 as a Non-Working Spouse,
provided
there
is
the
approval
of
the
working
spouse.
The Non-Working Spouse should have never been a member of the SSS
and his/her contributions shall be based on 50 percent of the working
spouse's last posted monthly salary credit, but in no case shall it be lower
than P1,000.
Question: When a person has secured an SS number, does it
mean that he/she is already a covered SSS member and
therefore, has the right to social security benefits?

Issuance of SS number does not immediately qualify you for coverage or benefits. You
must first be employed in an occupation subject to and reported for SSS coverage.
However, once you become a covered SSS member, you become a member for life. The
contributions that you remit become savings for the future that will serve as basis for
the granting of social security benefits in times of contingencies. Membership cannot be
withdrawn and contributions paid cannot refunded.

III. BENEFICIARIES

A. Primary beneficiaries- The primary beneficiaries of a member are

the legitimate dependent spouse until he or she remarries, the
dependent legitimate, legitimated or legally adopted, and illegitimate
children, who are not yet 21 years old.

A spouse who claims entitlement to death benefits as a primary

beneficiary under the Social Security Law must establish two
qualifying factors, to wit: (1) that he/she is the legitimate spouse;
and (2) that he/she is dependent upon the member for support.
(SOCIAL SECURITY COMMISSION and SSS, vs. TERESA G. FAVILA G.R. No. 170195, March 28, 2011)

B. Secondary beneficiaries:If the member is single and without

children, the benefits will go to the dependent parents who are
considered the secondary beneficiaries.

NOTE: In the absence of both primary and secondary

beneficiaries, any other person designated by the member in
his/her SSS records shall be considered as the beneficiary.

Problem:

B, a bachelor, dies after being a member of SSS for 10 years.

Death Benefits are claimed by Miss L, his girlfriend, a
designated beneficiary. The claim is contested by Bs brother
arguing that he is preferred over Miss L. Decide with reason.

Answer: Miss L is entitled to the death benefit because the

brother is not among the primary or the secondary
beneficiaries specified by law. On the other hand, since B
had no blood relatives qualified to be his primary or second
beneficiaries, he could designate any other person like Miss
L as his beneficiary.

Problem:

Eddie designated Maria, his live-in partner as his beneficiary under

SSS law. Upon his death, his unemployed married son by his
deceased spouse questioned the designation of Maria on the ground
that as the only legal heir of Eddie, he has the superior right to the
death benefit under the SSS law. Who is entitled to the death
benefit,? Why?

Answer: Maria, being the designated beneficiary is entitled to the

death benefit. In the absence of the dependent spouse, dependent
children and dependent parents, any other person designated by the
covered employee shall be the beneficiary. The son, although
unemployed is not considered dependent, since he is already
married. He cannot rely on his being the legal heir as basis for his
claim for death benefits.

IV. CONTRIBUTION

Monthly contributions based on the gross compensation of SSS members are payable
under two programs, as follows:
SSS- 9.4% of the average monthly compensation not exceeding P15,000
Employee share is 3.33%
Employer
share is 6.07%
For non-working spouse of the MSC of the working spouse
EC- 1% or (P10.00)of average monthly and payable only by the employer.
(P30.00) for employees earning P15,000.00/mo
OFW is not less than 5,000 MSC
Question: What is the effect of non-reporting and non-remittance of
contributions?

To the Employee
The employee is still entitled to SS benefits even if the employer fails or refuses to remit the SSS contributions.

To the Employer
An employer who does not report temporary or provisional employees is violating the SS law. The employer is liable to
the employees and must:
pay the benefits of those who die, become disabled , get sick or reach retirement age;
pay all unpaid contributions plus a penalty of three percent per month; and
be held liable for a criminal offense punishable by fine and/or imprisonment.

To the Self-employed Person and Voluntary Member

A self-employed person who fails to register with the SSS may be subjected to fines and/or imprisoned. However, in
the event the self-employed or voluntary member does not realize earnings in a given month, payment of SSS
contributions for that month is no longer required.
Self-employed and voluntary members may pay their monthly contributions prospectively or in advance, but never
retroactively to cover month/s when no contribution payments were remitted.
In the case of the covered Non-Working Spouse, if he/she later becomes employed, self-employed or an OFW, the
membership shall be reclassified accordingly as employed or self-employed or OFW.

V. BENEFITS
I.
II.
III.
IV.
V.

Sickness Benefits
Maternity Benefits
Disability Benefits
Retirement Benefits
Death Benefits/Funeral

Sickness Benefits

BENEFIT COMPUTATION:
1. Exclude the semester of sickness
A semester refers to two consecutive quarters ending in the quarter of sickness.
A quarter refers to three consecutive months ending March, June, September or
December.

2. Count 12 months backwards starting from the month immediately

before the semester of sickness.
3. Identify the six highest monthly salary credits within the 12-month
period
Monthly salary credit salary credit means the compensation base for
contributions and benefits related to the total earnings for the month. (The maximum
covered earnings or compensation is P16,000 effective January 1, 2014).

4. Add the six highest monthly salary credits to get the total
monthly salary credit.
5. Divide the total monthly salary credits by 180 days to get the
average daily salary credit.
6. Multiply the average daily salary credit by 90 percent to get the
daily sickness allowance.
7. Multiply the daily sickness allowance by approved number of
days to arrive at the amount of benefit due.

For example, let us say that an SSS member gets sick or injured in October 2013 for 20 days:
a. The semester of sickness would be from July 2013 to December 2013.
b. The 12-month period would be from July 2012 to June 2013 within which the six highest monthly salary credits
will be chosen.
c. Let us assume that the six highest monthly salary credits are P15, 000 each. The total monthly
credit would
be P90, 000 (P15, 000 x 6)
d. The total monthly salary credit would be divided by 180 to get the average daily salary credit of P500
(P90,000/180).
e. The daily sickness allowance is 90 percent of the of the average daily salary credit
or P450 (P500 x 90%).
f. The sickness benefit due is P9,000 (P450 x 20 days).

IMPORTANT!

The payment of the daily sickness allowance is advanced by the employer every regular payday. The SSS will then
reimburse the employer of the amount legally advanced upon receipt of satisfactory proof of such payment and
legality thereof. For unemployed, self-employed or voluntary members, the sickness benefit will be paid directly by
the SSS to the member.
The SSS will reimburse the employer only for confinements within the one year period immediately preceding and
the date the claim for benefit or reimbursement is received by the SSS, except for confinements in hospital.

For example, SSS receives the employer's reimbursement claim on Oct. 3, 2013 for the sickness period September
23 to Oct. 14, 2012. The employer will be reimbursed for the period Oct. 4 to 14,2012 only as Sept. 23 to Oct. 3,
2012 falls outside the prescribed one-year period for reimbursement claim.
For hospital confinement, the claim for benefit must be filed within one (1) year from the last day of confinement
from the hospital. For home confinement, the claim for reimbursement by the employer must be filed within one (1)
year from the start of illness. Failure to file the claim within the prescribed period will result to denial of the claim.
A member can be granted sickness benefit for a maximum of 120 days in one calendar year. Any unused portion of
the allowable 120 days sickness benefit cannot be carried forward and added to the total number of allowed
compensable days for the following year.
The sickness benefit shall not be paid for more than 240 days on account of the same illness. If the sickness or
injury still persists after 240 days, his claim will be considered a disability claim.

Sickness Benefits
A daily cash allowance paid for the number of days a
member is unable to work due to sickness

QUALIFYING CONDITIONS:
The member is unable to work due to sickness or injury and is confined
either in a hospital or at home for at least four days;
He/she has paid at least three months of contributions within the 12month period immediately before the semester of sickness; He/she has
used up all company sick leaves with pay for the current year and has
duly notified his/her employer;
He/she must notify the SSS directly by filing a sickness benefit
application if he/she is separated from employment, a voluntary or selfemployed member.

AMOUNT OF BENEFIT:
The amount of the member's daily Sickness Benefit allowance is
equivalent to ninety percent (90%) of his/her average daily salary credit.
The Sickness Benefit is granted up to a maximum of 120 days in one
calendar year.

Maternity Benefits
A daily cash allowance granted to a female member
who is unable to work due to childbirth or miscarriage

QUALIFYING CONDITIONS:
The member has paid at least three months of contributions within the
12-month period immediately before the semester of her childbirth or
miscarriage;
If employed, she must has given notification of her pregnancy through
her employer;
She must directly notify the SSS if she is separated from employment, a
voluntary or self-employed member.

AMOUNT OF BENEFIT:
The amount of the daily Maternity Benefit allowance is equivalent to one
hundred percent (100%) of her average daily salary credit, multiplied by
60 days in case of normal delivery or miscarriage, or by 78 days for
caesarian section delivery.
The Maternity Benefit is granted up to the first four deliveries or
miscarriages only.

Maternity Benefits

BENEFIT COMPUTATION:
1. Exclude the semester of contingency
A semester refers to two consecutive quarters ending in the quarter of sickness.
A quarter refers to three consecutive months ending March, June, September or
December.

2. Count 12 months backwards starting from the month immediately

before the semester of contingency.
3. Identify the six highest monthly salary credits within the 12-month
period
Monthly salary credit salary credit means the compensation base for
contributions and benefits related to the total earnings for the month. (The maximum
covered earnings or compensation is P16,000 effective January 1, 2014).

4. Add the six highest monthly salary credits to get the total monthly
salary credit.
5. Divide the total monthly salary credits by 180 days to get the average
daily salary credit. This is equivalent to the daily maternity allowance.
6. Multiply the daily maternity allowance by 60 (for normal delivery or
miscarriage) or 78 days (for caesarean section delivery) to get the total
amount of maternity benefit.

For example, let us say that an SSS member gives birth in December 2013.
a. The semester of contingency would be from July 2013 to December 2013.
b. The 12-month period before the semester of contingency would be from July 2012 to June 2013.
c. Let us assume that the six highest monthly salary credits are P15,000 each. Thus, the total
monthly salary credit would be P90,000 (P15, 000 x 6).
d. The daily maternity allowance would be P500 (P90,000/180).
e. The total maternity benefit due would be P30,000 (P500 x 60 days) for normal
delivery/miscarriage/ectopic pregnancy not requiring operation, or P39,000 (P500 x
78) for caesarian cases or ectopic pregnancy requiring operation.
IMPORTANT!
The maternity benefit shall be paid only for the first four (4) deliveries or miscarriages starting
May 24, 1997 when the Social Security Act of 1997 (RA8282) took effect.
For employed members, the benefit is advanced by the employer to the qualified employee,
in full, within 30 days from the date of filing of the maternity leave application. The SSS, in turn,
shall immediately reimburse the employer 100 percent of the amount of maternity benefit
advanced to the female employee upon receipt of satisfactory proof of such payment and
legality thereof.
If the employee member gives birth or suffers miscarriage without the required contributions
having been remitted by the employer, or the employer fails to notify the SSS, the employer will
be required to pay to the SSS damages equivalent to the benefits the employee would
otherwise have been entitled to.

For separated/voluntary/self-employed members, the amount of benefit is paid directly to

them by the SSS.
A female member cannot claim for sickness benefit for a period of 60 days for normal delivery
or miscarriage or 78 days for caesarean delivery within which she has been paid the maternity
benefit. As a rule, no member can be entitled to two benefits for the same period.

Disability Benefits

The following disabilities shall be permanent total:

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

QUALIFYING CONDITIONS:
The member is unable to work due to sickness or injury and is confined
either in a hospital or at home for at least four days;
He/she has paid at least three months of contributions within the 12month period immediately before the semester of sickness; He/she has
used up all company sick leaves with pay for the current year and has
duly notified his/her employer;
He/she must notify the SSS directly by filing a sickness benefit
application if he/she is separated from employment, a voluntary or selfemployed member.

AMOUNT OF BENEFIT:
The amount of the member's daily Sickness Benefit allowance is
equivalent to ninety percent (90%) of his/her average daily salary credit.
The Sickness Benefit is granted up to a maximum of 120 days in one
calendar year.

IMPORTANT!
The monthly pension and dependents pension shall be suspended
upon the reemployment or resumption of self-employment or the
recovery of the disabled member from his permanent total
disability or his failure to present himself for examination at least
once a year upon notice by the SSS.
Upon the death of the permanent total disability pensioner, his
primary beneficiaries as of the date of disability shall be entitled
to receive the monthly pension: Provided, That if he has no
primary beneficiaries and he dies within sixty (60) months from
the start of his monthly pension, his secondary beneficiaries shall
be entitled to a lump sum benefit equivalent to the total monthly
pensions corresponding to the balance of the five-year guaranteed
period excluding the dependents pension.

Retirement Benefits

The retirement benefit either in monthly pension or

lump sum paid to a member who can no longer work
due to old age.

QUALIFYING CONDITIONS:
The member is at least 60 years old (optional retirement), separated from
employment or has ceased to be self-employed; and had paid at least 120
monthly contributions prior to the semester of retirement; OR
The member is 65 years old (mandatory retirement), whether employed or not,
and had paid at least 120 monthly contributions prior to the semester of
retirement.
To qualify for a retirement pension, the member must have paid at least 120
monthly contributions prior to the semester of retirement; If with less than 120
monthly contributions, he/she is granted a lump sum amount.

There are two types of retirement benefit:

Monthly pension - a lifetime cash benefit paid to a retiree who has paid at least
120 monthly contributions to the SSS prior to the semester of retirement.
Lump Sum amount - granted to a retiree who has not paid the required 120
monthly contributions. It is equal to the total contributions paid by the member and
by the employer including interest.

Monthly Pension
If qualified, the member is granted a monthly Retirement Pension, plus a 13th Month Pension
payable every December.
If the member has dependent minor children, they are given a Dependent's Pension equivalent
to ten percent (10%) of the member's monthly pension or P250, whichever is higher. Only five
(5) minor children, beginning from the youngest, are entitled to Dependent's Pension. No
substitution is allowed.
The lowest monthly Retirement Pension is P1,200 if the member has 120 monthly contributions
or with at least ten (10) credited years of service (CYS); P2,400 if with at least 20 CYS. The
monthly pension is paid for not less than 60 months.

A member who retires after age 60 with a total of 120 monthly contributions may be qualified
to a monthly pension based on whichever is higher of the following:

the monthly pension computed at the earliest time the member could have retired had been
separated from employment or ceased to be self-employed plus all adjustments thereto; or
the monthly pension computed at the time when the member actually retires.
The dependents' allowance stops when the child reaches 21 years old, gets married, gets
employed, or dies. However, the dependents' allowance is granted for life for children who are
over 21 years old, if they are incapacitated and incapable of self-support due to physical or
mental defect that is congenital or acquired during minority.

A pensioner who retires more than once shall be entitled to the higher of:
the monthly pension computed for the first retirement claim; or
the re-computed monthly pension for the new claim

Lump Sum Pension

The retiree-member has the option to receive the first 18 months' pension
paid out in Lump Sum, but discounted at a preferential rate of interest to
be determined by the SSS. The member shall start receiving his pension on
the 19th month, and every month thereafter. This option for advance
payment shall be exercised only when filing the first retirement claim. It is
only the advanced pension payments that are discounted on the date of
payment; the dependent's allowance and 13th month pension are
excluded from the advanced 18-month pension amount.
The monthly pension is paid thru the member's designated bank thru
which he wishes to receive his pension benefits under the "Mag-Impok sa
Bangko" program. This became mandatory effective September 1,1993.
Upon approval of the claim, the SSS will send the member a notice voucher
indicating when to withdraw the benefit from the bank.

Other Benefits
1.
2.

The retiree is entitled to a 13th month pension payable every

December.
All retiree pensioners prior to the effectivity of RA 7875 on
March 4, 1995 are automatically considered members of
PhilHealth and, along with their legal dependents, are entitled
to PhilHealth hospitalization benefits. On the other hand,
retirees effective March 4,1995 up to the present will be
entitled to PhilHealth hospitalization benefits only if they have
contributed 120 monthly Philhealth/Medicare contributions.
The counting of 120 monthly contributions shall start in 1972,
when the Medical Care Act of 1969 started implementation.
A copy of the DDR print-out indicating the type of claim is
retirement in nature and the effectivity date of the pension, or
in its absence, a copy of retiree-pensioner certification issued
by SSS shall be required. They need to register under
Philhealth for the issuance of a Philhealth ID card for nonpaying members.

IMPORTANT!
Upon the death of a retiree pensioner, the primary beneficiaries
shall be entitled to 100 percent of the monthly pension, and the
dependents to the dependents' allowance.
If the retiree pensioner dies within sixty (60) months from the
start of the monthly pension and has no primary beneficiaries, the
secondary beneficiaries shall be entitled to a Lump Sum benefit
equivalent to the total monthly pensions corresponding to the
balance of the five-year guaranteed pension period, excluding the
dependents' allowance.
In case the retiree-member who is less than 65 years old resumes
employment or self-employment, the monthly pension shall be
suspended and the member shall again be subjected to
compulsory coverage.
If the retiree-member is 65 years old and older, he can resume
employment or self-employment without prejudice to his monthly
pension and without need for compulsory coverage.

Death Benefits / Funeral

Death: A cash benefit granted either as a monthly pension or a
Lump Sum amount to the beneficiaries of a deceased member.
Funeral: A funeral grant of P20,000 to whoever paid for the burial
expenses of
the deceased member.

QUALIFYING CONDITIONS:

A monthly Death Pension is granted to the member's primary beneficiary (legitimate

spouse until he/she remarries, and dependent legitimate, legitimated or legally
adopted, and illegitimate children) if the member has paid at least 36 monthly
contributions prior to the semester of death;
A lump sum amount is granted to the primary beneficiary if the deceased member
has less than 36 monthly contributions.
If there are no primary beneficiaries, the member's secondary beneficiaries
(dependent parents) shall be given a lump sum amount.

AMOUNT OF BENEFIT:

If qualified, the member's primary beneficiary is granted a monthly Death Pension,

plus a 13th Month Pension payable every December.
If the member has dependent minor children, they are given a Dependent's Pension
equivalent to ten percent (10%) of the primary beneficiary's monthly pension or
P250, whichever is higher. Only five (5) minor children, beginning from the youngest,
are entitled to Dependent's Pension. No substitution is allowed.
The lowest monthly Death Pension is P1,000 if the member has less than ten (10)
credited years of service (CYS); P1,200 if with at least 10 CYS; and P2,400 if with at
least 20 CYS.

VI. PENAL CLAUSE

Violations committed by employers:

failure to register workers for SSS coverage,

refusal to cooperate with SSS account officers and
non-remittance of contributions.
Those who deduct SSS contributions and loan payments from workers
salaries without remitting these to the SSS are also liable for estafa or
swindling under the Revised Penal Code,
Non-remittance of contributions is the most common violation of
employers, accounting for four out of every five cases filed by SSS.
Under the Social Security Act of 1997, delinquent employers face six to 12
years in prison and a maximum fine of P20,000. They will also be charge
with a stiff monthly penalty of three percent on overdue contributions of
employees.

If the act or omission penalized by this Act be committed by an association,

partnership, corporation or any other institution, its managing head, directors or
partners shall be liable for the penalties provided in this Act for the offense.

Criminal action arising from a violation of the provisions of this Act may be
commenced by the SSS or the employee concerned either under this Act or in
appropriate cases under the Revised Penal Code:

Venue: That such criminal action may be filed by the SSS in the city or municipality
where the SSS office is located, if the violation was committed within its territorial
jurisdiction or in Metro Manila, at the option of the SSS.

VII. SETTLEMENT OF
DISPUTES

Coverage: Dispute with respect to coverage, benefits, contributions and penalties

thereon or any other matter related thereto.

Who has Jurisdiction: Social Security Commission (Commission)

Decision: must be decided within twenty (20) days after the submission of the evidence.

Governing Rules: The filing, determination and settlement of disputes shall be governed
by the rules and regulations promulgated by the Commission.

Appeal to Court: Any decision of the Commission, in the absence of an appeal there from
as herein provided, shall become final and executory fifteen (15) days after the date of
notification.

Exhaustion of Administrative Remedies: Judicial review shall be permitted only after

any party claiming to be aggrieved thereby has exhausted his remedies before the
Commission.

Commission as a Party: The Commission shall be deemed to be a party to any judicial

action involving any such decision, and may be represented by an attorney employed by the
Commission, or when requested by the Commission, by the Solicitor General or any public
prosecutors.

Court Review.
Court of Appeals : Decision of the Commission based both upon the law and the facts by
the which must be taken within fifteen (15) days from notification of such decision.
Supreme Court : If the decision of the Commission involves only questions of law,
No appeal bond shall be required.
The case shall be heard in a summary manner, and
shall take precedence over all cases, except that in the Supreme Court, criminal cases
wherein life imprisonment or death has been imposed by the trial court shall take
precedence.
No appeal shall act as a supersedeas or a stay of the order of the Commission unless the
Commission itself, or the Court of Appeals or the Supreme Court, shall so order

Execution of Decisions. - The Commission may, motu

proprio or on motion of any interested party, issue a writ of
execution to enforce any of its decisions or awards, after it
has become final and executory,
in the same manner as the decision of the RTC

Contempt : Any person who shall fail or refuse to comply

with such decision, award or writ, after being required to do
so shall, upon application by the Commission pursuant to
Rule 71 of the Rules of Court, be punished for contempt.

LOANS

SALARY LOAN
A cash loan granted to an employed, currently- paying selfemployed or voluntary member. It is intended to meet the
member's short-term credit needs.
SSS offers housing loan options to qualified members.

HOUSING LOANS
Direct Housing Loan Facility for Workers' Organization Members
TheDirect Housing Loan Facility for Workers' Organization Members
(WOMs)aims to provide socialized and low-cost housing to workers who are
bonafide members of duly registered and accredited workers' organizations.
WOMs refer to any association of workers in the private sector duly registered
with the DOLE, the Securities and Exchange Commission, or the Cooperative
Development Authority. It shall include any trade union center, federation,
national union, local/chapter or independent union as defined in Book V of the
Labor Code.

Direct Housing Loan Facilit

y for OFWs
TheDirect Housing Loan Facility for Overseas Filipino Workers (OFW)is
designed to support the Government's shelter program, which aims to provide
socialized and low-cost housing to overseas Filipino contract workers.
An OFW is a private sector worker who is:
Currently deployed with a contract processed through the POEA or authenticated by the
Embassy abroad
With employment contracts which are awaiting renewal/deployment; however, release of loan
shall be made upon renewal/employment
A Filipino national but who is now a citizen or immigrant of a foreign countries but is
interested in buying a housing unit for his family who is still in the country
A long-term resident overseas Filipinos who wish to avail of housing packages either for
themselves when they retire or when they visit the Philippines and/or for their extended
families

House Repair/Improvement
Loan
TheHousing Loan for Repairs and/or Improvementsis a
lending program of the Social Security System (SSS) available
either directly from the SSS or thru its accredited participating
financial institutions (PFIs).

Assumption of Mortg

age
Assumption of Mortgageis a lending program of the
Social Security System (SSS) allowing a member in good
standing to assume the updated principal balance of an
existing SSS housing loan.

THANK YOU!