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RA 8282 - SSS
Introduction
The concept of social security evolved from an age-old search
of man for protection against poverty, which breeds grave
social ills that not only threaten his survival but also erode his
sense of human dignity. It, therefore, becomes the duty of the
State to operate a mechanism that would provide such
protection to its people.
Legislative History
On Jan. 26, 1948, Pres. Manuel A. Roxas proposed a bill
seeking to establish a social security system for wage earners
and low-salaried employees. This was recommended to
Congress
in
his
State
of
the
Nation
Address.
After the death of President Roxas, Pres. Elpidio Quirino
created the Social Security Study Commission on July 7, 1948.
The creation of the Commission was his first official act upon
his assumption to office. Based on the report of the Study
Commission, a draft of the Social Security Act was submitted
to Congress.
In 1954, Rep. Floro Crisologo, Senators Cipriano Primicias and
Manuel Briones introduced bills based on the report of the
Social Security Study Commission in the House of
Representatives and in the Senate. These bills were
consolidated and enacted into Republic Act (RA) 1161, better
known
as
the
Social
Security
Act
of
1954.
However, business and labor groups objected to the Social
Security Act resulting in a deferment of its implementation.
In 1957, amendatory bills were presented in Congress. These
bills were the bases of RA 1792, which amended the original
Social Security Act.
On Sep. 1, 1957, the Social Security Act of 1954 or the Social
Security Law (SS Law) was finally implemented, marking a
significant milestone in the social security program.
Thus, with the implementation of the SS law, the government
also adopted the social insurance approach to social security,
covering the employed segment of the labor force in the
private sector. In 1993, household helpers earning at least
P1,000 were included in the compulsory coverage of
employees.
Vision
Viable protection through generations.
Universal protection provided to all residents of the
Philippines, citizens and non-citizens alike, regardless of creed,
gender, age, geographic location and economic status,
especially the disadvantaged.
Equitable - fair and uniform coverage to all; benefits shall be
meaningful and able to sustain a decent standard of living.
World-class service - prompt, accurate and courteous service
shall be provided.
Compulsory Coverage
Coverage of Employees
a. A private employee who is not over 60 years old
b. A household-helper earning at least P1,000 a month is
covered starting Sept. 1, 1993.
A household-helper is any person who renders
domestic or household services exclusively to a
household employer such driver, gardener, cook,
governess, and other similar occupations.
RP v. Asiapro Cooperative
Respondent Asiapro, as a cooperative, is composed of ownersmembers. Its primary objectives are to provide savings and
credit facilities and to develop other livelihood services for its
owners-members.
xxx
xxx
6.
Except claims for Employees Compensation,
Social Security, Medicare and maternity benefits, all other
claims, arising from employer-employee relations, including
those of persons in domestic or household service, involving
an amount exceeding five thousand pesos (P5,000.00)
regardless of whether accompanied with a claim for
reinstatement.
Although the aforesaid provision speaks merely of claims for
Social Security, it would necessarily include issues on the
coverage thereof, because claims are undeniably rooted in the
coverage by the system. Hence, the question on the existence
of an employer-employee relationship for the purpose of
determining the coverage of the Social Security System is
explicitly excluded from the jurisdiction of the NLRC and falls
within the jurisdiction of the SSC which is primarily charged
with the duty of settling disputes arising under the Social
Security Law of 1997.
In determining the existence of an employer-employee
relationship, the following elements are considered: (1) the
selection and engagement of the workers; (2) the payment of
wages by whatever means; (3) the power of dismissal; and (4)
the power to control the worker's conduct, with the latter
assuming primacy in the overall consideration. The most
important element is the employer's control of the employee's
conduct, not only as to the result of the work to be done, but
also as to the means and methods to accomplish.
All elements are present in this case.
First. It is expressly provided in the Service Contracts that it is
the respondent cooperative which has the exclusive discretion
in the selection and engagement of the owners-members as
well as its team leaders who will be assigned at Stanfilco.
Second. The weekly stipends or the so-called shares in the
service surplus given by the respondent cooperative to its
owners-members were in reality wages, as the same were
equivalent to an amount not lower than that prescribed by
existing labor laws, rules and regulations, including the wage
order applicable to the area and industry; or the same shall
not be lower than the prevailing rates of wages. It cannot be
SSS v. CA
Whether or not an agricultural laborer who was hired on
"pakyaw" basis can be considered an employee entitled to
compulsory coverage and corresponding benefits under the
Social Security Law.
SC:
There was no shred of evidence to show that Tana was only a
seasonal worker. All witnesses, including Ayalde, testified that
Tana and his family resided in the plantation. The only logical
explanation for this set up was that Tana was working for most
part of the year exclusively for Ayalde. A closer scrutiny of the
records revealed that while Ayalde may not have directly
imposed on Tana the manner and methods to follow in
performing his tasks, she did exercise control through her
overseer. Under the circumstances, the relationship between
Ayalde and Tana has more of the attributes of employeremployee than that of an independent contractor hired to
perform a specific project.
Lazaro v. SSC
Is a sales supervisor of a company engaged in the sale of
home appliances an employee of such company?
SSC, as upheld by the Court of Appeals, found that Laudato
was a sales supervisor and not a mere agent. As such, Laudato
oversaw and supervised the sales agents of the company, and
thus was subject to the control of management as to how she
implements its policies and its end results. SC disinclined to
reverse this finding, in the absence of countervailing evidence
from Lazaro and also in light of the fact that Laudato's calling
cards from Royal Star indicate that she is indeed a sales
supervisor.
SSC v. Alba
Whether an administrator could be considered an employer?
Yes.
Far Alba was no ordinary administrator. He was no less than
the son of the hacienda's owner and as such he was an ownerin-waiting prior to his father's death.
Lamboso testified that he was selected and his services were
engaged by Far Alba himself. Corollarily, Far Alba held the
prerogative of terminating Lamboso's employment. Lamboso
also testified in a direct manner that he had been paid his
wages by Far Alba. This testimony was seconded by Lamboso's
co-worker.
Not to be forgotten is the definition of an employer under
Article 167 (f) of the Labor Code which deals with employees'
compensation and state insurance fund. It defines a person as
"any individual, partnership, firm, association, trust,
corporation or legal representative thereof". Plainly, Far Alba,
Dependents
(1) The legal spouse entitled by law to receive
support from the member;
(2) The legitimate, legitimated or legally adopted,
and illegitimate child who is unmarried, not
gainfully employed, and has not reached twentyone (21) years of age, or if over twenty-one (21)
years of age, he is congenitally or while still a minor
has been permanently incapacitated and incapable of
self-support, physically or mentally; and
(3) The parent who is receiving regular support from
the member
SSS v. Bailon
Clemente G. Bailon (Bailon) and Alice P. Diaz (Alice) contracted
marriage in Barcelona, Sorsogon.
More than 15 years later, Bailon filed before the then Court of
First Instance (CFI) of Sorsogon a petition to declare Alice
presumptively dead.
By Order, the CFI granted the petition.
Close to 13 years after his wife Alice was declared
presumptively dead, Bailon contracted marriage with Teresita
Jarque (respondent) in Casiguran, Sorsogon.
Bailon, who was a member of the Social Security System (SSS)
since 1960 and a retiree pensioner thereof, died.
Respondent thereupon filed a claim for funeral benefits, and
was granted P12,000 by the SSS
Cecilia Bailon-Yap (Cecilia), who claimed to be a daughter of
Bailon and one Elisa Jayona (Elisa) contested before the SSS
the release to respondent of the death and funeral benefits.
She claimed that Bailon contracted three marriages in his
lifetime, the first with Alice, the second with her mother Elisa,
and the third with respondent, all of whom are still alive; she,
together with her siblings, paid for Bailon's medical and
funeral expenses; and all the documents submitted by
respondent to the SSS in support of her claims are spurious
SSS cancelled the pension.
Respondent protested asserting that her marriage with Bailon
was not declared before any court of justice as bigamous or
unlawful, hence, it remained valid and subsisting for all legal
intents and purposes as in fact Bailon designated her as his
beneficiary.
When raised to SSC, it held that Teresita Jarque-Bailon is not
the legitimate spouse and primary beneficiary of SSS member
Clemente Bailon.
SC:
That the SSC is empowered to settle any dispute with respect
to SSS coverage, benefits and contributions, there is no doubt.
In so exercising such power, however, it cannot review, much
less reverse, decisions rendered by courts of law as it did in
the case at bar when it declared that the December 10, 1970
CFI Order was obtained through fraud and subsequently
disregarded the same, making its own findings with respect to
the validity of Bailon and Alice's marriage on the one hand and
the invalidity of Bailon and respondent's marriage on the
other.
In interfering with and passing upon the CFI Order, the SSC
virtually acted as an appellate court. The law does not give the
SSC unfettered discretion to trifle with orders of regular courts
in the exercise of its authority to determine the beneficiaries of
the SSS.
In the case at bar, as no step was taken to nullify, in
accordance with law, Bailon's and respondent's marriage prior
to the former's death in 1998, respondent is rightfully the
dependent spouse-beneficiary of Bailon.
Employment services excluded
1. Purely casual employment and not for the purpose of
occupation or business of the employer (Mansal v PP
Go-Checo Lumber Co.GR No.L-8017)
2. Services performed or in connection with an alien
vessel by an employee if he/she is employed when
such vessel is outside the Philippines
3. Services performed in the employ of the Philippine
government
4. Service performed in the employ of a foreign
government or international organization, or their
wholly-owned instrumentality unless there is an
5.
Duties of employee-members
Among others:
Secure SS number
Duties of employer-members
Among others:
Sickness benefit
Notice required:
As soon as pregnancy is confirmed, member must notify
immediately employer or SSS, if unemployed, etc. and
probable date of childbirth at least 60 days from date of
conception. Employer must in turn notify SSS after receipt of
notification. Failure to observe the rule may result in denial.
Can a member apply for sickness benefit if she has been paid
maternity benefit?
No, because as a rule, no member can be entitled to two
benefits for the same period.
Disability Benefit
Disability any restriction or lack (lack from impairment) of
ability to perform an activity in the manner or within the range
considered normal for a human being.
Impairment any loss or abnormality of psychological,
physiological, or anatomical structure or function.
Who is qualified?
A member who suffers partial or total permanent disability
with at least one monthly contribution paid to the SSS prior to
the semester of contingency.
Some partial permanent disabilities:
one thumb
one index finger
one middle finger
one ring finger
one little finger
hearing of one ear
hearing of both ears
sight of one eye
Ortega v. SSC
Claims under the Labor Code for compensation and under the
Social Security Law for benefits are not the same as to their
nature and purpose.
On the one hand, the pertinent provisions of the Labor Code
govern compensability of work-related disabilities or when
there is loss of income due to work-connected or workaggravated injury or illness.
On the other hand, the benefits under the Social Security Law
are intended to provide insurance or protection against the
hazards or risks of disability, sickness, old age or death, inter
alia, irrespective of whether they arose from or in the course of
the employment.
And unlike under the Social Security Law, a disability is total
and permanent under the Labor Code if as a result of the
injury or sickness the employee is unable to perform any
gainful occupation for a continuous period exceeding 120 days
regardless of whether he loses the use of any of his body
parts.
Types of disability benefits:
Monthly pension cash benefit paid to a disabled member who
has paid at least 36 monthly contributions to the SSS prior to
the semester of disability.
Dycaico v. SSS
Bonifacio S. Dycaico, member of the SSS, In his self-employed
data record, he named the petitioner, Elena P. Dycaico, and
their eight children as his beneficiaries. At that time, Bonifacio
and Elena lived together as husband and wife without the
benefit of marriage.
In June 1989, Bonifacio was considered retired and began
receiving his monthly pension from the SSS. He continued to
receive the monthly pension until he passed away on June 19,
1997. A few months prior to his death, however, Bonifacio
married the petitioner on January 6, 1997.
Shortly after Bonifacio's death, the petitioner filed with the SSS
an application for survivor's pension. Her application, however,
was denied on the ground that under Section 12-B(d) of
Republic Act (Rep. Act) No. 8282 or the Social Security Law 2
she could not be considered a primary beneficiary of Bonifacio
as of the date of his retirement.
Sec. 12-B. Retirement Benefits
xxx
xxx
xxx
(d) Upon the death of the retired member, his primary
beneficiaries as of the date of his retirement shall be
entitled to receive the monthly pension. . . .
SSC opined that under Section 12-B(d) of Rep. Act No. 8282,
the primary beneficiaries who are entitled to survivor's
pension are those who qualify as such as of the date of
retirement of the deceased member. Hence, the petitioner,
who was not then the legitimate spouse of Bonifacio as of the
date of his retirement, could not be considered his primary
beneficiary.
SC:
The proviso "as of the date of his retirement" in Section 12B(d) of Rep. Act No. 8282, which qualifies the term "primary
(2)
Those dependent spouses whose respective
marriages to SSS members were contracted after the
latter's retirement.
For Underground Mineworkers:
1. Has reached the age of 55 years old and is an
underground mineworker for at least 5 years (either
continuous or accumulated) prior to the semester of
retirement but whose actual date of retirement is not
earlier than March 13, 1998; separated from
employment or in the case of self-employed, has
ceased self-employment, and has paid at least 120
monthly contributions prior to the semester of
retirement.
2. has reached the age of 60 years old whether
employed or not and has paid at least 120 monthly
contributions prior to the semester of retirement.
Types of retirement benefits:
1. Monthly pension
2. Lump sum amount
Aside from retirement benefit, retiree is entitled to a 13 th
month pension payable every December. All retiree pensioners
prior to effectivity of RA 7875 on March 4, 1995 are
automatically considered members of PhilHealth and he and
his legal dependents are entitled to its hospitalization benefits.
Death Benefit
It is a cash benefit either in monthly pension or lump sum paid
to the beneficiaries of a deceased member.
Types of death benefit:
1. Monthly pension
2. Lump sum amount
Beneficiaries:
Primary: (1) Legitimate dependent spouse until the
person
remarries;
(2)
dependent
legitimate,
legitimated or legally adopted and illegitimate
children who are not yet 21 years old.
Secondary: In the absence of primary, dependent
parents.
In their absence, any other person designated by
member in record.
Signey v. SSS
husband and wife were still living together at the time of his
death, it would be safe to presume that she was dependent on
the husband for support, unless it is shown that she is capable
of providing for herself.
Respondent herself admits that she left the conjugal abode on
two (2) separate occasions, to live with two different men. The
first was in 1965, less than one year after their marriage, when
she contracted a second marriage to Domingo Talens. The
second time she left Antonio was in 1983 when she went to
the US, obtained a divorce, and later married an American
citizen.
In fine, these uncontroverted facts remove her from qualifying
as a primary beneficiary of her deceased husband.
Monthly pension depends on members paid contributions,
including the credited years of service (CYS) and the number
of dependent minor children but not to exceed five.
In addition to death benefit, beneficiaries are entitled to 13 th
month pension payable every December and funeral benefit
expenses which is paid to whoever shouldered the funeral
expenses of the deceased member. Funeral grant is P20,000
(effective Sept. 1, 2000).
If deceased member is survived by legitimate, legitimated or
legally adopted and illegitimate children, how is monthly
pension to be divided?
If survived by less than five, the illegitimate minor children will
be entitled to 50% of the share of the legitimate, legitimated
or legally adopted and 100% of the dependents pension
(equivalent to 10% of the members monthly pension or P250
whichever is higher). Only five minor children, beginning from
the youngest, are entitled to dependents pension. When there
are more than 5, the legitimate, legitimated or legally adopted
shall be preferred.
For how long will the dependent child receive the pension?
When the child reaches 21 years old, gets married, gets
employed or dies. However, the dependents pension is
granted for life to children who are over 21 years old, provided
they are incapacitated and incapable of self-support due to
physical or mental disability which is congenital and acquired
during minority.
Contributions
SSS 10.4% of the monthly salary credit not exceeding
P15,000 and payable by both employer (7.07%) and employee
(3.33%) effective Jan. 1, 2007.
EC Starting Jan. 1, 2007, P10 for a monthly salary credit of
P14,500 and below and P30 for employees with an MSC of
P15,000 and payable only by employer.
SS Number
The SS number assigned to a member is the lifetime number
and must always be used in all transactions with the SSS. The
member should not secure another number at any other time.
If the member wishes to secure another SS card and cannot
remember the SS number, it is advisable to inquire from the
SSS servicing branch.
If a member has more than one SS number, this will cause
delay in processing of the claim for benefits or loans in the
future. Thus, it is important that a member should have only
one SS number. Therefore, he/she should write or visit the SSS
servicing branch to request for the cancellation of the other
Lo v. CA
Private respondents application was denied because the SSS
records showed that he became a member only in 1983, and
contributions in his favor were remitted only from October
1983 to September 1984. As private respondent knew that
SSS contributions were deducted from his salary since
compulsory SSS coverage took effect in 1957, he filed a
petition with the Social Security Commission against Jose Lo
and his son Rafael Lo, who took over the management of the
company. The Commission upheld private respondent's claim
and ordered petitioner and Jose Lo to remit to the SSS the
unpaid contribution in favor of private respondent, including
penalties and charges.
Petitioner filed a petition for review with the Court of Appeals,
which affirmed the decision of the Commission. When the
appellate court denied his motion for reconsideration,
petitioner filed this petition for review by certiorari. He
contended that the lower court erred in ruling that the claim
had not yet prescribed. Petitioner claimed that Payment of SS
premium, as stated in the Decision, is an obligation created by
law hence, without need of demand, it becomes due on the
date when such payment should be made. Hence, under
Article 1150 [of the Civil Code], the right of action to recover
unremitted SS premium accrues on the date it is payable and
may be brought beginning such date.
SC:
Supreme Court dismissed the petition, and affirmed the
decision of the Court of Appeals. Section 22 (b), par. 2, of
Republic Act No. 1161, or the SSS Law, expressly provides that
the right to institute the necessary action against the
employer may be commenced within twenty years from the
time the delinquency is known or the assessment is made by
the SSS, or from the time the benefit accrues, as the case may
be. The provision is clear that the period of prescription
commences to run only upon the discovery of the violation,
which took place in 1985. When the complaint was filed on
August 14, 1985, less than one year had passed since private
respondent discovered the delinquency. Therefore, the claim
was timely instituted.
Penal Clause
Who are liable and what are the penalties.
Who can file?
(i) Criminal action arising from a violation of the provisions of
this Act may be commenced by the SSS or the employee
concerned either under this Act or in appropriate cases under
the Revised Penal Code: Provided, That such criminal action
may be filed by the SSS in the city or municipality where the
SSS office is located, if the violation was committed within its
territorial jurisdiction or in Metro Manila, at the option of the
SSS. Consent by the SSS is not required
Garcia v. SSC
SSC
found Garcia, the sole surviving director of Impact
Corporation, petitioner herein, liable for unremitted SSS
contributions.
Tan v. Ballena
In answer to criminal complaint for violation of SS law,
petitioners interposed the defenses of lack of criminal intent
and good faith as their failure to remit was brought about by
alleged economic difficulties, and they have already agreed to
settle their obligations with the SSS through a memorandum of
agreement to pay in installments.
SC:
As held by the Court of Appeals, the claims of good faith and
absence of criminal intent for the petitioners' acknowledged
non-remittance of the respondents' contributions deserve
scant consideration. The violations charged in this case pertain
to the SSS Law, which is a special law. As such, it belongs to a
class of offenses known as mala prohibita.
Social Security Commission
Composed of the Secretary of Labor and Employment or his
duly designated undersecretary, the SSS president and seven
(7) appointive members, three (3) of whom shall represent the
workers group, at least one of whom shall be a woman; three
(3), the employers group, at least one (1) of whom shall be a
woman; and one (1), the general public whose representative
shall have adequate knowledge and experience regarding
social security, to be appointed by the President of the
Philippines.
To carry out the purposes of this Act, the Social Security
System, hereinafter referred to as SSS, a corporate body,
with principal place of business in Metro Manila, Philippines is
created.
The System shall be directed and controlled by the SSC.
Any dispute arising under RA 8282 with respect to coverage,
benefits, contributions and penalties thereon or any other
respondents
were
entitled
to
OTHERS IN SSS:
Chua vs. CA
P.
1.EMPLOYER
AND
EMPLOYEE:
WORKMEN'S
COMPENSATION; EMPLOYER, WHEN LIABLE. When an
employee suffers personal injury from any accident arising
out of and in the course of his employment . . . his
employer shall pay compensation . . . As to the finding of
the court that the employment of the appellant was
merely casual, because it was not continuous, it was
already held by us that it is not the continuity of
employment that renders the employer responsible but
whether the work of the laborer is part of the business or
occupation of the employer. In order that an employer
may not be responsible for any injury to a laborer it is
necessary that the "employment is purely casual and is
not for the purposes of the occasion or business of the
employer."
Effectivity of Coverage
Compulsory coverage
1.
For an employee
employment
2.
on
the
first
day
of
SLIDE 6
RA 8291 - GSIS
Introduction
Effectivity
of retirement laws
PD 1146
RA 660
RA 1616
Appointive or elective
9%
2%
Member Employer
12%
12%
employer
Date of remittance?
Determination
of
eligibility
to
and
computation of benefits will be made subject
to deduction of contribution arrearages and
service loans accounts plus surcharges from
proceeds of claim
Penal provisions?
Retirement
Separation
Unemployment
Disability
Survivorship
Unemployment benefit
Separation benefit
Improvement of existing benefits?
Increase
in
the
Revalued
Average
Monthly
Compensation (RAMC): from P140 to P700
Retirement
Conditions:
automatically forfeited
Any finger
Any toe
One arm
One hand
Prescriptive Period?
- 4 years from date of contingency except
life & retirement benefits which do not prescribe.
Tax Exemption
RUBIA V. GSIS
- exemption of GSIS from execution
does not cover refund of amortization payment
GSIS Vs NLRC
Private respondents were security guards of a security agency
assigned to Tacloban branch of GSIS.
o
The security guards thereafter filed an illegal
dismissal against the agency and GSIS, separation pay, salary
differential, 13th month and unpaid salary
o
GSIS filed the present petition contending the error
committed because it is exempt from execution per charter.
o
SC:
The fact that there is no actual and direct employeremployee relationship between petitioner and respondents
does not absolve the former from liability for the latters
monetary claims. When petitioner contracted DNLs security
services, petitioner became an indirect employer of
respondents, pursuant to Article 107 of the Labor Code.
Gamogamo vs PNOC