Compiled by: Louis F.

Palma Gil
 Table of Contents
Employer-Employee Relationship ............................................................................................................................................................................... 3
3 Tests to determine Employer-Employee Relationship....................................................................................................................................... 3
Kinds of Employment ................................................................................................................................................................................................... 3
Probationary Employment ....................................................................................................................................................................................... 3
Regular Employee ..................................................................................................................................................................................................... 4
Project Employees...................................................................................................................................................................................................... 4
Seasonal Employee .................................................................................................................................................................................................... 5
Casual Employment .................................................................................................................................................................................................. 5
Fixed-Term Employment .......................................................................................................................................................................................... 5
Subcontracting versus Labor-Only contracting ......................................................................................................................................................... 5
Permissible Contracting ............................................................................................................................................................................................ 6
Labor-Only Contracting ............................................................................................................................................................................................ 7
Social Welfare Legislation ............................................................................................................................................................................................ 9
Social Security System Law (SSS Law) ....................................................................................................................................................................... 9
Sickness Benefit ........................................................................................................................................................................................................ 11
Maternity Benefits.................................................................................................................................................................................................... 12
Retirement Benefits.................................................................................................................................................................................................. 13
Disability Benefits .................................................................................................................................................................................................... 15
Death and Funeral Benefits .................................................................................................................................................................................... 16
Employee’s Compensation ..................................................................................................................................................................................... 18
RA 8291 – GSIS LAW ................................................................................................................................................................................................. 20
Compulsory Life Insurance Benefits under the Life Endowment ..................................................................................................................... 21
Policy (LEP) .............................................................................................................................................................................................................. 21
Retirement Benefits.................................................................................................................................................................................................. 21
Separation benefit .................................................................................................................................................................................................... 22
Unemployment Benefit ........................................................................................................................................................................................... 23
Disability benefits .................................................................................................................................................................................................... 23
Survivorship Benefits .............................................................................................................................................................................................. 25
Funeral benefits ........................................................................................................................................................................................................ 26
RA 7699 ......................................................................................................................................................................................................................... 26
Limited Portability law .............................................................................................................................................................................................. 26
PHILHEALTH BENEFITS (RA 7875, as amended by RA 9241) ........................................................................................................................ 27
PAG-IBIG BENEFITS (Republic Act No. 9679)..................................................................................................................................................... 28

SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 2

 Employer-Employee
Relationship
3 Tests to determine Employer-
Employee Relationship
I – Four Fold Test (SPDC)
1. Selection and engagement of the Employee
2. Payment of wages and salaries
3. Exercise of the power of dismissal
4. Exercise of the power to control the employee’s
conduct
II – Control Test
Whether the employer
• Controls OR has the reserved the right to control the
employee;
• Not only as to the result of the work to be done
• But also to the means and methods by which the result
is accomplished
III – 2 Tiered Test
1. Control Test – WON the employer controls or has the
right of control not only on the result but also the
means and methods to accomplish such result.
2. Economic Reality Test – WON the worker is
dependent on the employer for his continued
employment in that line of business.
Examples:
a. An employee that has served the company
exclusively for several years
b. Employee who receives check vouchers indicated
as salary or wage;
c. When the employee receives benefits, 13th month
pay, bonuses and allowances
d. Employee is registered under the SSS; and
company pays his premiums.
Notes:
• An Employer-Employee relationship is essential
because only those arising from such are cognizable by
the Labor Courts
• Employer-Employee relationship is contractual and
may be oral or written;
• The Stipulation in the contract is not controlling in
determining the existence of an Employer-Employee
relationship; The employment status of a person is
defined and prescribed by law and not by what the
parties say it should be
• Mode of salary or compensation payment is not
conclusive of their relationship;
o Payment by commission, piece rate basis, no
work no pay
• A retainer-fee agreement does not give rise to an
Employer-Employee relationship.
Kinds of Employment
5 General Kinds of Classification (Article 295 of Labor Code)
1. Regular
2. Project
3. Seasonal
4. Casual
5. Fixed-Term
2 Classification of Employment as to Nature of Work
1. Employees performing activities which are usually
necessary or desirable in the employer’s usual
business or trade
• Regular, Project, Seasonal employees
2. Those performing activities which are NOT usually
necessary or desirable in the business or trade
• Casual Employees
Probationary Employment
Who is a probationary employee?
1. One who for a given period
2. Is on observation, evaluation, and trial by an employer
3. During which the employer determines whether or not
he is qualified for permanent employment.
General Rule:
Probationary Employment should not exceed 6 months;
Exceptions:
1. When the employer and employee agree on a shorter
or longer period
2. When the nature of work to be performed by
employee requires a longer period
3. When a longer period is required and established by
company policy.
Absent any of these exceptions or if the work goes beyond 6
months the employee is deemed a regular employee
Reckoning point of probationary period:
From the date of appointment up to 6th month.
Probationary v Fixed Term
Both: involve a fixed period in terms of duration of
employment
Probationary Fixed Term
There is an intent to make No such intention exists and
their relationship regular the relationship terminates
after lapse of period. after lapse of period.
Security of Tenure
Probational Employee enjoys security of tenure within the
limited 6-month period; cannot be suspended or dismissed
without just cause or due process;
Grounds to terminate probationary employment
1. Just Cause
2. Authorized Cause
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 3
 3. When probationary employer fails to qualify as Those hired:
regular employee in accordance with reasonable 1. For a specified project or undertaking
standards known to the employer and employee at 2. Completion or termination of such project has been
start of employment. determined at time of their engagement
To prove project employment; employers MUST show:
Notes: 1. That the duration and scope of employment was
• Probationary period may be extended only upon specified at the time they were engaged
mutual agreement 2. That there was indeed a project
• Employment is deemed regular if employment
contract has no stipulation on probationary period 2 Categories of Project Employees
• Repetitive rehiring of probationary employee makes Those who perform:
him regular 1. A particular job WITHIN the regular or usual business
• Procedural due process is required only with just cause of the employer company BUT WHICH IS DISTINCT
or authorized cause termination; last ground need not AND SEPARATE and identifiable as such from other
require due process; undertakings of the compant
• Termination is valid only if done prior to lapse of a. Examples: a construction company which hires
probationary period additional workers for distinct construction
projects; or a Corporation for packaging and
manufacturing hires workers to repair furnaces
Regular Employee necessary in their usual business
Who is a regular employee? (Art 295) 2. A particular job that is NOT WITHIN the regular
1. Those engaged to perform activities which are usually business of the corporation
necessary or desirable in the usual business or trade of
the employer Project Employment v Regular Employment
2. Those who have rendered at least one(1) year of service Project Regular
with respect to the activity in which they are employes As to term Services are Enjoys security of
a. Whether such service is continuous or coterminous with the tenure and is entitled
broken; project; to remain until
3 ways to attain regular employment terminated in
1. By performing activities necessary and desirable accordance with the
2. By rendering at least 1 year of service recognized grounds
3. By probationary employment under the LC.
As to due If termination is Due process required
process brought because of depends on the
Notes:
completion of project grounds of
1. Law presumes regularity of employment
due process is termination cited.
a. Hence, an employee is deemed regular by
complied with even if
operation of law the moment the fact is
no prior notice of
established that the nature of his work is termination
directly related to the principal business of
the employer 6 indicators of Project Employment
2. Activities necessary and desirable include 1. Duration of project is reasonably determinable
performance of peripheral jobs indirectly related to the 2. Duration of project is defined in an employment
principal business of employer agreement and is made clear to the employee at the
3. Written agreement is immaterial to determine time of hiring
regularity of employment 3. Work or service performed is in connection with the
a. HOWEVER, there is a need to execute written particular project
employment contract if intention is to 4. Employee while not employed or awaiting
stipulate on such other kinds of employment engagement is free to offer his services to another
such as probationary, project, seasonal, employer
casual, or fixed term; absence will make 5. Termination of his employment in a particular project
employment regular. is reported to the Regional office of the DOLE having
4. Manner of payment of wage is immaterial jurisdiction over the workplace within 30 days
5. Act of rehiring employees over period of time without following date of separation from work
considering them as regular employees is evidence of 6. There is an undertaking in the employment contract by
bad faith. the employer to pay completion bonus to the project
employee;
Project Employees
Who are project employees? Notes:

SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 4

 • Project employees should be informed of their status
as such through an (indispensable) written contract of
project employment stating the duration of the project
employment as well as the particular work or service
to be performed
• Continuous, as opposed to intermittent, rehiring
shows that employee is regular.
• Work pool principle – refers to a group of workers
from which an employer like a construction company
draws the workers it deploys or assigns to its various
projects or any phase/s thereof. Members may consist
of non-project and project employees
• Project employees enjoy security of tenure only during
the term of their project employment
• Project employees are not entitled to separation pay
• They are presumed to have become regular employees
if allowed to work beyond completion of project
• Upon termination, employer has to report to dole.
• Payment of completion bonus is an indication of
project employment
Seasonal Employee
Who is a Seasonal Employee?
1. One whose work or service to be performed is seasonal
in nature
2. Employment is for the duration of the season
Notes:
1. They are not separated from service but are merely
considered as on leave of absence without pay until
they are re-employed. Their employment relationship
is never severed but only suspended.
Requisites to be a Regular Seasonal Employee
1. Seasonal employee should perform work or services
that are seasonal in nature;
2. They must also be employed for more than one(1)
season.
Casual Employment
Who is a casual employee?
1. One employed to perform work or service which is
merely incidental to the business of the employer
2. And such job is for a definite period made known to
the employee at the time of engagement.
Notes:
• Casual employee becomes a regular employee after 1
year of service by operation of law; without the need
of regular appointment papers and reckoned from
hiring date.
• Repeated hiring makes him regular.
Fixed-Term Employment
2 requisites for a valid fixed term employment:
1. The fixed period of employment was:
a. Knowingly and voluntarily agreed upon by
the parties
b. Without any force, duress, or improper
pressure being brought to bear upon the
employee
c. And absent any other circumstances vitiating
his consent
2. It satisfactorily appears that the employer and
employee dealt with each other on more or less equal
terms with no moral dominance whatever being
exercised by the employer on the employee
Absent these requisites; the fixed-term contract is illegal.
Notes:
• Fixed-term employment is valid even if the duties are
usually necessary and desirable to the employer’s
usual business or trade
• Notice of termination is not necessary
• Employee is deemed regular if:
o Fails to state specified period of employment
o Rendering work beyond 1 year
o Successive renewals of fixed-period contracts
o Employment on a day-to-day basis for a
temporary period
• Hiring of employees on a uniformly fixed 5-month
basis and replacing them upon the expiration of their
contracts with other workers with the same
employment is a circumvention to their right of
security of tenure (Pure Foods Corporation v NLRC
1997)
• OFWs can never acquire regular employment
Subcontracting versus
Labor-Only contracting
Art. 106. Contractor or subcontractor. Whenever an employer
enters into a contract with another person for the performance
of the former’s work, the employees of the contractor and of the
latter’s subcontractor, if any, shall be paid in accordance with
the provisions of this Code.
In the event that the contractor or subcontractor fails to pay the
wages of his employees in accordance with this Code, the
employer shall be jointly and severally liable with his
contractor or subcontractor to such employees to the extent of
the work performed under the contract, in the same manner and
extent that he is liable to employees directly employed by him.
The Secretary of Labor and Employment may, by appropriate
regulations, restrict or prohibit the contracting-out of labor to
protect the rights of workers established under this Code. In so
prohibiting or restricting, he may make appropriate distinctions
between labor-only contracting and job contracting as well as
differentiations within these types of contracting and determine
who among the parties involved shall be considered the
employer for purposes of this Code, to prevent any violation or
circumvention of any provision of this Code.
There is “labor-only” contracting where
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 5
(1)the person supplying workers to an employer does not have
substantial capital or investment in the form of tools,
equipment, machineries, work premises, among others, and the
(2)workers recruited and placed by such person are performing
activities which are directly related to the principal business of
such employer. In such cases, the person or intermediary shall
be considered merely as an agent of the employer who shall be
responsible to the workers in the same manner and extent as if
the latter were directly employed by him.
Art. 107. Indirect employer. The provisions of the immediately
preceding article shall likewise apply to any person,
partnership, association or corporation which, not being an
employer, contracts with an independent contractor for the
performance of any work, task, job or project.
Art. 108. Posting of bond. An employer or indirect employer
may require the contractor or subcontractor to furnish a bond
equal to the cost of labor under contract, on condition that the
bond will answer for the wages due the employees should the
contractor or subcontractor, as the case may be, fail to pay the
same.
Art. 109. Solidary liability. The provisions of existing laws to
the contrary notwithstanding, every employer or indirect
employer shall be held responsible with his contractor or
subcontractor for any violation of any provision of this Code.
For purposes of determining the extent of their civil liability
under this Chapter, they shall be considered as direct
employers.
Contractor – party who contracts with the principal
Subcontractor – party which contracts with the contractor
D.O. No. 174
• Contracting OR Subcontracting :
o An arrangement
o Whereby a principal agrees to farm out to a
contractor
o The performance or completion of a specific
job or work
o Within a definite period
o Regardless of whether such job or work is to
be performed or completed within or outside
the premises of the principal
• Contractor :
o Refers to any person or entity
o Engaged in legitimate contracting OR
subcontracting arrangement
o Providing services for a specific job or
undertaking
o farmed out by principal under a Service
Agreement
What is a Trilateral relationship?
A relationship in a contracting or subcontracting arrangement
Where there is a
1. service contract for a specific job, work, or service
a. Between the principal and contractor
2. And a contract of employment
a. between the contractor and its workers
3 parties involved:
1. Principal / Indirect Employer / statutory employer /
employer – natural or juridical entity who puts out or
farms out a job or work to the contractor
2. Contractor / direct employer
3. Contractor’s Employee – refers to the employee hired
by the contractor to perform the job ; they enjoy
security of tenure and enjoy rights and privileges
under the Labor Code and SSS benefits;
Employer-Employee Relationship
• Between the contractor and its employees engaged to
perform a specific job, work, or service, being
contracted with the principal.
• Principal is an indirect employer only in respect to the
solidary obligation to pay unpaid wages and other
unpaid benefits under the Service Agreement.
On termination
• Pre-termination not due to authorized causes – the
benefits shall be borne by the party at fault without
prejudice to liabilities under Service Agreement
• Expiration of Service Contract – employee may wait
for re-employment within 3 months before he resigns
or transfers to another contractor employer; if the
contractor does not provide new employment,
employee is entitled to separation benefits; Note; mere
expiration of Service Agreement is not a termination of
employment of the contractor’s employees who are its
regular employees;
Permissible Contracting
What are the requisites for Permissible Contracting (DO 174)
1. Contractor or subcontractor is engaged in
a. A distinct and independent business
b. And undertakes to perform the job or work in
its own responsibility according to its own
manner and method.
2. Substantial Capital or investment test; Contractor or
Subcontractor
a. has substantial capital to carry out the job
farmed out by the principal
b. on his own account, manner, method,
investment in the form of tools, equipment,
machinery and supervision
Amount is now fixed under DO 174;
• Corporations, partnerships, or cooperatives
o Paid-up capital stocks/shares of at least
5,000,000 or;
• Single Proprietorship
o Net worth of at least 5,000,000
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 6
 3. In performing the work farmed out, the contractor or
subcontractor is free from control and or direction of
the principal in all matters connected with the
performance of the work
a. Except; as to the result thereto
4. The Service Agreement ensures compliance with all
the rights and benefits for all employees of the
contractor or subcontractor under labor laws.
Absent any it shall be considered as LABOR-ONLY
CONTRACTING.
Labor-Only Contracting
What is Labor-Only Contracting?
1. An arrangement
2. where the contractor or subcontractor merely
a. Recruits
b. Supplies
c. Or places
Workers to perform a job or work for a principal
3. AND the following elements from DOLE DO 174 are
present:
a. Direct Relation to Principal’s Business Test;
Contractor or subcontractor does NOT have
either
i. Substantial capital
ii. Or Investments in the form of tools,
equipment, machineries,
supervision, work premises, among
others
iii. AND the
contractors/subcontractors
employees recruited and placed are
performing activities which are
directly related to the main business
operation of the principal
b. The contractor or subcontractor does NOT
exercise the right to control over the
performance of the work of the employee
Article 106 of the Labor Code absolutely and totally prohibits
Labor-only contracting
Contractors must register with the DOLE
It is mandatory for all persons or entitites acting as contractors
to register with the Regional Office of the Department of Labor
and Employment (DOLE) where it principally operates. Failure
to register will give rise to the presumption that the contractor
is engaged in labor-only contracting.
Other Prohibited Arrangements:
4. Cabo – group of persons under the guise of a labor
organization ehich supplies workers to an employer
with or without any monetary or other consideration
whether as an agent of the employer or an ostensible
independent contractor
5. In House Agency – a contractor managed by the
directly or indirectly principal; where the principal
owns any share of stock and operates mainly for the
principal
6. In House Cooperative – one that merely supplies
workers for the principal; managed directly by the
principal or any of its officers owns/represents any
equity or interest, and which operates solely or mainly
for the principal
7. Contracting out of job by reason of a strike or lockout
8. Contracting out of job being performed by a union to
interfere or restrain the employees’ exercise of right to
self-organization
9. Requiring contractor’s employees to perform jobs
which are currently being performed by the regular
employees of the principal
10. Requiring contractor’s employee to sign a precondition
to employment or an antedated resignation letter or
waiver of benefits or requiring him to be a member of
a cooperative
11. Repeated hiring by the contractor of employees of a
short duration
Effects of engaging in Labor-only contracting or other illicit
forms of employment:
1. Principal is deemed the direct employer; and is
responsible for all entitlements and benefits
2. Labor only contractor is treated as an agent of the
intermediary of the principal; representations of the
labor-only contractor will bind the principal
3. The principal and the labor-only contractor will be
solidarily treated as direct employer.
4. The labor-only contractor’s employees will become
employees of the principal, subject to the classifications
of employees under Article 295 of the labor code.
Permissible Subcontracting v Labor-only contracting
Permissible Subcontracting Labor-only Contracting
No employer-employee An employer-employee
relationship exists between relationship is created by law
the contractor’s employees between the principal and
and the principal the employees supplied by
the labor-only contractor
Principal is considered only Principal is the “direct
as “indirect employer” employer”
Solidary obligation is only The principal becomes
for a limited purpose so that solidarity liable with the
employees are paid their labor-only contractor to the
wages; other than this latter’s employees in the
principal is not liable for any same manner and extent that
claim made by contractor’s the principal is liable to the
employees employees directly hired by
him or her.
Contractor undertakes to Labor-only contractor
perform a specific job for the merely provides, supplies,
principal recruits, and places the
personnel to work for the
principal.
When is the Principal Solidarily liable with the contractor?
1. In case of violation of any provision of the Labor Code,
including failure of the contractor to pay wages of its
employees supplied to the principal
2. In case of labor-only contracting
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 7
Note: To hold the principal solidarily liable there is no need to
prove insolvency of the contractor; for so long as he FAILS to
pay wages of his employees.

SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 8

 Social Welfare
5. An Employee of a foreign government, international
organization or their wholly-owned instrumentality
a. Based in the Philippines
Legislation b. Which entered into an administrative
agreement with SSS for the coverage of its

Social Security System Filipino workers

6. Parent, spouse, child below 21 years old of the owner

Law (SSS Law)

of a single proprietorship business.
7. Self-Employed persons
Definitions: a. with an income of at least 1,000 a month
• An ER is any person who uses and pays for the services b. not over 60 years old
of another person in any business, trade, industry, or c. registered at the SSS
undertaking d. Includes but is not limited to:
• Compulsory coverage is the mandatory registration of i. Self-employed professionals
employees, employers and selfemployed persons with ii. Business partners, single proprietors,
the SSS, with corresponding payment and remittance and board director
of social security contributions. iii. Actors, actresses, director, scriptwriter,
• Voluntary coverage is the non-mandatory registration news reporters not under an employer-
and payment of social security contributions by employee relationship
a. non-working spouses (NWS), iv. Professional athletes, coaches, trainers,
b. overseas Filipino workers (OFWs), and jockers
c. and those covered under bilateral v. Farmers and fisherfolks
agreements. vi. Workers in informal sector such as
d. It also includes former employed/SE cigarette vendors, watch-your-car-boys,
hospitality girls;
members who wish to continue payment of
All provisions covering employees shall cover the self-employed which
social security contributions.
is both the employee and employer at the same time
•

Who are those that may avail voluntary coverage?

3 Which employers (ER) are compulsorily covered?
1. Separated members
1. A social, civic, professional, charitable, and other non-
a. Members who separate from employment or
profit organizations, which hire the services of
cease to be self-employed
employees are considered employers.
b. OFW
2. A foreign government, international organization or
c. Non-working spouse which would like to
its wholly-owned instrumentality such as an embassy
continue contributing
in the Philippines may enter into an administrative
2. Overseas Filipino Workers
agreement with the SSS for coverage of its Filipino
a. A Filipino recruited in the Philippines by a
employees
foreign-based employer
3. A household employer (HR) is one who uses the
b. One who entered a foreign country and is
services of a house helper; whomever pays the
eventually employed
compensation for such services – whether the
3. Non-working spouses of SSS members
husband, wife, or any other person – shall be deemed
a. Person legally married to a an active paying
the HR.
SS member
b. Who devotes full time in the management of
5 Which employees are compulsorily covered
the household and family affairs may be
1. Private employee
covered on a voluntary basis
a. Whether permanent, temporary or
c. Provided there is approval of the working
provisional
spouse
b. Who is not over 60 years old
d. The contribution is based on 50% of the
2. A domestic worker/Kasambahay
working spouses’ last posted monthly salary
a. who has rendered at least one month of
credit
service
e. But in no case shall it be lower than 1,000
b. not over 60 years of age
c. renders services exclusively in the HR’s home
Effective Date of coverage
3. A Filipino seafarer
Compulsory coverage
4. upon signing of the standard employment contract
1. Employer; on the first day of his operation OR on the
and actual deployment by the manning agency and the
first day he hires the employees
foreign principal, who are considered as the ERs.

SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 9

 a. Employer is given THIRTY(30) days from the a. Provided this organization entered into an
date of employment of employee to report the agreement with the Philippine government
person for coverage to the SSS for the inclusion of employees in the SSS
2. Employee; on the first day of his employment b. That the terms of such agreement conform
3. Self-Employed; upon his registration with the SSS OR with the provisions of RA 8282 on payment of
upon payment of first valid contribution contributions and benefits
Voluntary coverage c. That the provisions of the SSS Law shall be
1. OFW; upon first payment of contribution supplementary to such agreement.
2. Non-working spouse; upon first payment of 6. Services performed by temporary and other employees
contribution which may be excluded by regulation of the Social
3. Separated member; on the month he or she resumes Security Commission
payment of contribution a. Note: employees of independent contractors shall
not be deemed employees of the employer engaging
What is the effect if the employee is separated from the service of said contractors.
employment?
1. His employer’s contribution on his account and his Who are the dependent beneficiaries?
obligation to pay arising from that employment shall 1. Dependent spouse
cease at the end of the month of separation a. Until he or she remarries;
2. Employee shall be credited with all contributions paid or enters into common-
on his behalf law marriage;
3. Employee is entitled to benefits according to the 2. Dependent legitimate,
provisions of the SSS Law legitimated, or legally adopted,
illegitimate children
4. Employee MAY continue to pay total contributions to
a. Who are not 21 years of
maintain his right to full benefit
Primary age
Beneficiaries Dependent illegitimate children – are
What happens if a self-employed realizes no income in a given entitled to 50% of the share of the
month? legitimate, legitimated, or legally
1. He shall not be required to pay contributions for that adopted;
month • In the absence of the
2. He may continue paying contributions dependent legitimate and
3. shall be credited with all contributions paid on his legitimated the dependent
behalf illegitimate children shall be
4. entitled to benefits according to the provisions of the entitled to 100% of the benefits
SSS Law In the absence of the primary beneficiaries
5. MAY continue to pay total contributions to maintain the following shall be entitled to the benefits:
his right to full benefit 1. Dependent parents
2. Any other person designated by
6. Coverage begins on the month he or she resumes Secondary
the member as his or her secondary
payment of contribution Beneficiaries
beneficiary
• Provided there is no
Which EMPLOYERS are excluded from the coverage? dependent parent; and no
1. Government other primary beneficiary
a. Or any of its political subdivisions
b. Branches or instrumentalities The SSS benefits may be classified as:
c. GOCCs with original charters I - Social Security Benefits: S -M – R – D - D
1. Sickness
5 EMPLOYEES which are excluded from the coverage 2. Maternity
2. Employment purely casual 3. Retirement
a. and not for the purpose of occupation or 4. Disability
business of the employer 5. Death and Funeral
3. Service performed in connection with an alien vessel II - Employee’s compensation benefits
a. If employee is employed when such vessel is
OUTSIDE of the Philippines Social Security provides replacement income for workers in
4. Service performed in the employ of the Philippine times of death, disability, sickness, maternity and old age. The
Government
a. Or instrumentality or agency thereof EC program, started in 1975, provides double compensation
5. Service performed in the employ of a foreign effective June 1984 to the worker when the illness, death, or
government or international organization or their accident occurs during work-related activities, at the workplace
wholly-owned instrumentality or on the way to/from the workplace. EC benefits are granted
only to members with employers.
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 10

Contributions
Monthly contributions are based on the compensation of SSS
members and payable under the two (2) programs:
1. Social Security (SS) –
a. ELEVEN PERCENT (11%) of the monthly
salary credit (MSC)
b. not exceeding P16,000,
c. and paid by both employer (7.37%) and
employee (3.63%), effective January 1, 2014.
2. Employees Compensation (EC) – Starting January 1,
2007,
a. TEN PESOS (P10) for employees with an
Monthly Salary Credit (MSC) of P14,500 and
below,
b. and THIRTY PESOS (P30) for employees
with an MSC of P15,000 and up;
c. paid only by the employer.
Sickness Benefit
What is the sickness benefit?
daily cash allowance paid for the
number of days a member is unable to
work due to sickness or injury.
What are the Qualifications?
A member is qualified to avail of this benefit if:
1. He/She is unable to work due to sickness or injury
a. and confined either in a hospital or at home
for at least four (4) days;
2. He/She has paid at least three (3) months of
contributions
a. within the 12-month period immediately
before the semester of sickness or injury;
3. He/She has used up all current company sick leaves
with pay; and
4. He/She has notified regarding his/her sickness or
injury:
a. the Employer, or
b. directly the SSS,
i. if separated from employment,
ii. Voluntary Member or
iii. Self-Employed
How much is the sickness benefit?
equivalent to ninety percent (90%) of the member’s average
daily salary credit (ADSC).
Computation:
NOTE:
1. A quarter refers to three consecutive months ending
March, June, September or December.
a. Jan -March
b. April – June
c. July – September
d. Oct - December
2. A semester refers to two consecutive quarters ending
in the quarter of sickness.
3. Monthly salary credit (MSC) 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. Total MSC
5. Average Daily Salary Credit (ADSC)
6. Daily Sickness Allowance
1. Exclude the semester of sickness.
2. Count twelve (12) months backwards starting from the
month immediately before the semester of sickness
3. Identify the six (6) highest MSCs within the 12-month
period
4. Add the six (6) highest MSCs to get the total MSC.
5. Divide the total MSC by 180 days to get the ADSC.
6. Multiply the ADSC by ninety percent (90%) to get the
daily sickness allowance.
7. Multiply the daily sickness allowance by the approved
number of days to arrive at the amount of benefit due
For example, an SSS member got sick or was injured in October 2015
for 20 days:
a) The semester of sickness would be from July 2015 to
December 2015.
b) The 12-month period would be from July 2014 to June 2015,
within which the six (6) highest MSC will be chosen.
c) Let us assume that the six (6) highest MSC are P15,000
each. The total MSC would then be P90,000 (P15,000 x 6).
d) Divide the total MSC by 180 to get the ADSC, or P500
(P90,000 ÷ 180).
e) The daily sickness allowance is 90 percent (90%) of the
ADSC (P500 x 90%), or P450.
f) Multiply the daily sickness allowance by the number of sick
days (P450 x 20 days), resulting in a sickness benefit due of
P9,000.
How many days in a year can a member avail of the sickness
benefit?
maximum of 120 days in one (1) calendar year
Note:
a) Any unused portion of the allowable 120 days sickness
benefit cannot be carried forward nor added to the total
number of allowed compensable days for the following year.
b) The sickness benefit shall be paid for not more than 240 days
on account of the same illness. If the sickness or injury
still persists after 240 days, the claim will be considered a
disability claim.
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 11
Who should employee notify if he is sick?
a) An Employee should notify the Employer within five What are the qualifications to be entitled?
(5) calendar days after the start of sickness or injury. 1. She has paid at least three (3) monthly contributions
b) The Employer, in turn, must notify the SSS of the a. within the 12-month period immediately
confinement within (5) calendar days after receipt of preceding the semester of her childbirth or
the notification from the Employee miscarriage.
As to notification: 2. She has given the required notification of her
• 1 Year – notification by employer shall be made within pregnancy through her
1 year from start of confinement if the member’s a. Employer if employed, or
confinement is in a hospital. b. directly to the SSS, if a Self-employed or
• 10 days - If the member got sick or was injured while Voluntary Member or Member Separated
working or while he/she was within the company from Employment
premises, sickness notification shall be made within How much is the maternity benefit?
ten (10) days from the start of confinement The maternity benefit is equivalent to:
What about those separated from employment, self-employed, 1. 100 percent of the member’s average daily salary
or voluntary members? credit (ADSC)
• should notify the SSS directly within five (5) calendar 2. multiplied by
days after the start of confinement, a. 60 days for normal
• unless such confinement is in a hospital, in which case, delivery/miscarriage/ectopic pregnancy
notification should be made within one (1) year from without operation/hydatidiform mole (H-
start of confinement mole) and
b. 78 days for caesarean section
delivery/ectopic pregnancy with operation.
How is sickness benefit paid? Computation:
1. For employees: The payment of the daily sickness
allowance is advanced by the Employer every regular NOTE:
payday. The SSS will then reimburse the Employer of 7. A quarter refers to three consecutive months ending
the amount legally advanced upon receipt of March, June, September or December.
satisfactory proof of such payment and legality a. Jan -March
thereof. b. April – June
a. The SSS will reimburse the Employer only for c. July – September
confinements within the one-year period d. Oct - December
immediately preceding the date the claim for 8. A semester refers to two consecutive quarters ending
benefit or reimbursement is received by the in the quarter of sickness.
SSS, except for confinements in hospital. 9. Monthly salary credit (MSC) means the compensation
2. For members separated from employment, self- base for contributions and benefits related to the total
employed, voluntary members: paid directly by the SSS earnings for the month. The maximum covered
to the member separated from employment, SE and earnings or compensation is P16,000, effective January
VM through their single savings/current/cash 1, 2014.
card/prepaid account in SSS-accredited banks. 10. Total MSC
11. Average Daily Salary Credit (ADSC)
What is the prescribed period in filing a claim for sickness 12. Daily Maternity Allowance
benefit of a member confined in a hospital?
• For hospital confinement, - filed within one (1) year
from the date of discharge. 1. Exclude the semester of contingency
• For home confinement, - be filed within one (1) year (delivery/miscarriage/procedure).
from the start of illness. 2. Count twelve (12) months backwards starting from the
• Failure to file the claim within the prescribed period month immediately before the semester of
will result in the reduction of the benefit or the denial contingency.
of the claim. 3. Identify the six (6) highest MSC within the 12-month
period.
4. Add the six (6) highest MSCs to get the total MSC.
Maternity Benefits
5. Divide the total MSC by 180 days to get the ADSC.
What is a maternity benefit?
6. Multiply the daily maternity allowance either by 60 or
The maternity benefit is a daily cash
78 days, as the case may be, to get the total amount of
allowance granted to a female member
maternity benefit
(married or unmarried) who was unable
For example, an SSS member gave birth in December 2015.
to work due to childbirth or miscarriage
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 12
 a) The semester of contingency would be from July 2015 to 1. The maternity benefit is paid directly to them by the
December 2015. SSS thru their single savings/current/cash
b) The 12-month period before the semester of contingency card/prepaid account in an SSS-accredited bank.
would be from July 2014 to June 2015.
c) Let us assume that the six (6) highest MSC are P15,000 each.
Thus, the total MSC would be P90,000 (P15,000 x 6).
Retirement Benefits
d) The daily maternity allowance would be P500 (P90,000 ÷
180). What is a retirement benefit?
e) Depending on her maternity case, the total maternity benefit The retirement benefit is a cash
due would either be: benefit paid either in monthly
▪ P30,000 (P500 x 60 days) for normal pension or as lump sum to a member
delivery/miscarriage/ectopic pregnancy without who can no longer work due to old
operation/H-mole, or age
▪ P39,000 (P500 x 78 days) for caesarean delivery/ectopic
pregnancy with operation. What are the types of retirement benefit?
1. Monthly pension – a lifetime cash benefit paid to a retiree
How many deliveries are covered? on a regular monthly basis.
The maternity benefit shall be paid only for the first four (4) 2. Lump sum amount – one-time payment granted to a
deliveries or miscarriages. retiree.
a. The amount is equal to the total contributions
Note: paid by the member and/or by his/her
• A female member cannot claim for sickness benefit for Employers,
a period of 60 or 78 days, as the case may be, within b. including interest earned.
which she has been paid the maternity benefit.
• As a rule, no member can be entitled to two (2) benefits Qualifications?
for the same period. 1. Member must have paid at least 120 monthly
contributions prior to the semester of retirement and is
Notification to SSS any of the following, whichever is applicable:
As soon as a member’s pregnancy is confirmed, she must 1. at least 60 years old
immediately notify her o and separated from employment
1. ER (if employed) or o or has ceased to be an SE/
a. ER must, in turn, notify the SSS through the OFW/Household Helper (optional
submission of the Maternity Notification retirement);
Form immediately after the receipt from the 2. at least 65 years old
employee. o whether still employed/SE,
b. If the member gives birth or suffers o working as OFW/Household Helper
miscarriage but the contributions were not o or not (technical retirement);
remitted by the ER, the benefits that the 3. at least 55 years old
member would have been entitled to shall be o and separated from employment
paid by the ER. o or has ceased to be an SE,
2. the SSS directly (if separated from o if an “underground mineworker”
employment/SE/VM) (optional retirement);
of the pregnancy and the probable date of her childbirth at least 4. at least 60 years old
60 days from the date of conception. o whether still employed/SE or not,
o if an “underground mineworker”
How is maternity benefit paid? (technical retirement); or
For employed members. 5. a total disability pensioner
1. The benefit is advanced in full by the ER to the o who has recovered from disability and
qualified female employee o is at least 60 years old
2. within 30 days from date of filing of the maternity o (or at least 55 years old, if an
leave application. underground mineworker).
3. The SSS, in turn, shall immediately reimburse the ER 2. A former retiree-pensioner whose monthly pension
100 percent of the amount of maternity benefit was suspended due to reemployment/self-
advanced to the female employee upon receipt of employment
satisfactory proof of such payment and legality a. and is now separated from employment or
thereof. has ceased to be an SE.
For SE/VM or members separated from employment. 3. A member who is 60 years old and above,
a. but not yet 65,
b. with 120 contributions or more
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 13
 may continue paying as Voluntary Member up to 65
years old to avail of the higher amount of benefit.
Note: Underground mineworkers
• any person employed to extract mineral deposits
underground or whose workplace is beneath the
ground performing and coordinating activities for the
purpose of searching for and extracting mineral
deposits
• must have been employed as such for at least five (5)
years (either continuous or accumulated) prior to the
semester of retirement
• actual date of retirement should not be earlier than
March 13, 1998
• and the ER/s must be duly registered with the Bureau
of Mines as a mining company.
Who may qualify for lump-sum retirement amount?
1. Member is
a. at least 60 years old (or 55 years old, if an
underground mineworker) for optional
retirement,
b. or 65 years old (or 60 years old, if an
underground mineworker) for technical
retirement,
2. and has paid LESS THAN 120 monthly contributions
BUT HE IS GIVEN THE OPTION: A member filing for
retirement benefit and has paid less than 120 monthly
contributions shall be given the option to continue paying the
contributions as a VM to complete the 120 months to avail the
full benefits thru monthly pension
How much monthly pension if member retires after age 60 and
has contributed the required 120 monthly contributions?
The higher of the following:
1. Monthly pension computed at the earliest time
member could have retired
2. The monthly pension computed at the time the
member actually retires.
Computation for Monthly Pension:
Depends on the members’ paid contributions;
• Including credited years of service (CYS) and
• The number of dependent minor (not exceeding 5)
The monthly pension shall be the highest of:
1. The sum of
a. 300 plus 20% of the average monthly salary
credit
b. plus 2% of the average monthly salary credit
for each accredited year of service
c. in excess of 10 years;
2. 40% of the average monthly salary credit
3. If the monthly pension is paid for not less than 50
months:
a. 1,200 Provided that the credited year of
service is at least 10 or more but less than 20
years
b. Or 2,400 Provided that the credited year of
service is 20 years or more;
Option to receive 18-months advance pension;
• A retiree has the option to receive the first eighteen (18)
months pension in lump sum, discounted at a
preferential rate of interest to be determined by the
SSS.
• The Dependent’s Pension and 13th Month Pension are
excluded from the advanced 18 months pension.
• The retiree will receive the regular pension on the 19th
month and every month thereafter.
If the retirement pensioner resumes employment;
1. If he is less than 65 years old; his monthly pension is
suspended
2. If 65 years old he can claim for retirement benefit
employed or not.
Pensioner who resumes employment and retires is entitled:
A pensioner who retires more than once shall be entitled to the
higher of:
1. the monthly pension computed for the first retirement
claim; or
2. the re-computed monthly pension for the new claim
Other benefits for the retiree;
1. The retiree is entitled to a 13th Month Pension payable
every December.
2. retiree pensioners prior to the effectivity of RA 7875 on
March 4, 1995 are automatically considered members
of PhilHealth, and they and their legal dependents are
entitled to its hospitalization benefits.
3. retirees effective March 4, 1995 up to the present will
be entitled to hospitalization benefits under PhilHealth
only if they have contributed 120 monthly Medicare
contributions
a. The counting of 120 monthly contributions
shall start in 1972, when the Medical Care Act
of 1969 started implementation
Dependents of Retirees
Dependents of a retiree-member are entitled to Dependent’s
Pension, which is equivalent to
• ten percent (10%) of the member’s monthly pension
• or P250, whichever is higher.
Who are considered dependents of retirees?
1. Legitimate, legitimated, legally adopted and
illegitimate child who is
• unmarried;
• not gainfully employed; and
• has not reached 21 years of age, or if over 21 years
old, he/she is congenitally incapacitated or while
still a minor was permanently incapacitated and
incapable of self-support, physically or mentally.
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 14
 2. A child who has entered into a common-law
relationship and has not attained the age of eighteen
(18). However, upon reaching the age of 18, the child
shall stop receiving dependent’s pension
In cases where there are five (5) or more dependent legitimate,
legitimated, legally adopted and illegitimate children, the
dependent legitimate, legitimated, and legally adopted children
shall be preferred. Where there are less than five (5) legitimate,
legitimated, or legally adopted children, the illegitimate
children shall be considered to complete the maximum five (5)
dependents.
Payment of the dependents’ pension shall stop if the dependent:
• dies;
• reaches 21 years old, unless congenitally incapacitated,
or while still a minor was permanently incapacitated
and incapable of self-support, physically or mentally; is
gainfully employed;
• marries;
• enters into a common-law relationship upon attaining
at least 18 years of age; or
• attains the age of 18 while having a common-law
relationship.
What will happen to the monthly pension of a retiree in case of
death?
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 dependent’s pension.
3. If the retiree pensioner dies within 60 months from the
start of the monthly pension AND has no primary
beneficiaries,
a. the secondary beneficiaries shall be entitled to
a lump sum benefit equivalent to the
i. total monthly pensions
corresponding to the balance of the
five-year guaranteed period,
ii. excluding the dependent’s pension.
What is the prescriptive period in filing for claim for retirement
benefit?
There is no prescriptive period for the filing of initial retirement
benefit. However, all claims with the SSS and all petitions with
the SSC assailing said settled claims, should be filed within ten
(10) years from denial/settlement.
Disability Benefits
What is disability;
any “restriction or lack (resulting
from impairment) of ability to
perform an activity in the manner or
within the range considered normal
for a human being,”
Qualifications;
1. A member who suffers partial or total permanent
disability,
2. with at least one (1) monthly contribution paid to the
SSS prior to the semester of contingency, is qualified.
Types of Disability benefits:
1. Monthly pension – a cash benefit paid to a disabled
member who has paid at least 36 monthly
contributions to the SSS prior to the semester of
disability.
2. Lump sum amount – granted to those who have not
met the required 36 monthly contributions.
a. If the approved disability period is payable
for less than twelve (12) months, it is also
given in lump sum.
How much is monthly pension?
based on the member’s
1. number of paid contributions and
2. the years of membership prior to the semester of
contingency;
3. The minimum basic monthly pension is
a. P1,000 for members with less than ten (10)
credited years of service (CYS);
b. P1,200 with at least ten (10) CYS and
c. P2,400 with at least twenty (20) CYS.
Is monthly pension for life?
YES for member who suffers from permanent total disability;
4. the pension shall be suspended if;
a. the member recovers from the permanent
total disability,
b. or resumes employment,
c. or fails to report for the annual physical
examination upon notice by SSS.
The member who suffers from permanent partial disability shall
receive a monthly pension based on the equivalent number of
months of the degree of disability.
5. If the member’s condition due to same illness/injury
deteriorates, resulting in progression of his/her
disabling manifestations, he/she is entitled to claim
additional disability benefit
How is lump sum amount?
1. For permanent total disability, the
a. lump sum benefit is equivalent to the
monthly pension
i. multiplied by the number of
monthly contributions paid to the
SSS,
b. or twelve (12) times the monthly pension.
Whichever result is higher of the two will be the
member’s lump sum benefit.
2. For permanent partial disability,
a. the lump sum is equivalent to the monthly
pension
i. multiplied by the number of
monthly contributions,
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 15
 ii. multiplied by the percentage of
disability in relation to the whole
body;
b. or the monthly pension twelve (12) times the
percentage of disability,
whichever is higher.
Aside from disability benefit, what else can a disability
pensioner receive?
1. a supplemental allowance of P500
2. a 13th month pension payable every December.
3. For a partial disability pensioner, a 13th month
pension shall be paid, provided that the pension
duration is at least twelve (12) month
4. January 1, 2017, all total disability pensioners are also
entitled to an additional P1,000 benefit on top of their
computed basic monthly pension
5. Total disability pensioners and their legal
dependents prior to the effectivity of RA 7875 on
March 4, 1995 are entitled to the hospitalization
benefits under PhilHealth.
a. Total disability pensioners upon the
effectivity of RA 7875 on March 4, 1995 and
thereafter, are no longer covered except when
they have accumulated 120 Medicare
monthly contributions and have reached age
60 They need to register with PhilHealth for
the issuance of their PhilHealth ID card for
Non-Paying Members.
b. Those who wish to avail of PhilHealth
benefits may enroll in the Individually-
Paying Program (for SE/VM) or the
Sponsored Program of PhilHealth.
Are children of a disabled member entitled to the dependent’s
pension?
The dependent legitimate, legitimated, legally adopted and
illegitimate children, conceived on or before the date of
contingency of a total disability pensioner will each receive a
1. dependent’s pension equivalent to ten percent (10%)
of the member’s basic monthly pension,
2. or P250, whichever is higher
3. The additional P1,000 benefit (given starting January
1, 2017) is not included in the dependent’s pension.
Note:
• Only five (5) minor children, beginning from the
youngest, are entitled to the dependent’s pension.
• No substitution is allowed.
• Where there are legitimate and illegitimate minor
children, the legitimate, legitimated or legally adopted
ones will be preferred.
• Dependents of a partially disabled pensioner are not
entitled to the dependent’s pension
For how long will the dependent child receive the pension?
The dependent’s pension ends when the child
1. reaches 21 years of age,
2. gets married,
3. gets employed,
4. or dies
However, the dependent’s pension may be granted for life to
children who are over 21 years old, provided that they are
incapacitated and incapable of self-support due to physical or
mental disability that is congenital in nature or acquired during
minority.
Suspension of dependent’s pension;
1. the re-employment or resumption of self-employment
2. or the recovery of the disabled
3. member from permanent total disability
4. or failure to present himself/herself for examination at
least once a year upon notice by SSS
What will happen to the monthly pension of a disability
pensioner in case of his/her death?
1. the primary beneficiaries as of the date of disability,
shall be entitled to 100 percent of the monthly pension,
2. and the dependents to the dependent’s pension,
excluding the supplemental allowance
If the totally disabled pensioner
• has no primary beneficiaries
• and dies within 60 months from the start of the
monthly pension,
the secondary beneficiaries shall be entitled to a lump sum
benefit equivalent to the total monthly pensions corresponding
to the balance of the fiveyear guaranteed period, excluding the
supplemental allowance.
In the case of a partial disability pensioner, his monthly pension
is limited only to a certain number of months according to the
degree of his disability, or will stop when he retires or dies.
Prescriptive period for filing disability claims?
10 years from the date of occurrence of disability
Death and Funeral
Benefits
What is death benefit?
a cash benefit paid either in monthly
pension or lump sum to the
beneficiaries of a deceased member.
What are the types of death benefits?
1. Monthly pension – granted to the primary
beneficiaries of a deceased member who had paid 36
monthly contributions before the semester of death.
2. Lump sum amount – granted to the primary
beneficiaries of a deceased member who had paid less
than 36 monthly contributions before the semester of
death. In case of secondary beneficiaries, they are paid
a lump sum benefit only.
Which beneficiaries of a deceased member are eligible to receive
the death benefit?
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 16
The death benefit goes to the primary beneficiaries of the
deceased member.
1. These are the legitimate dependent spouse,
a. until he/she remarries,
2. and the dependent legitimate,
3. legitimated,
4. or legally adopted,
5. and illegitimate children
of the member who are not yet 21 years old or over 21 years old,
provided they are incapacitated and incapable of self-support
due to physical or mental disability which is congenital in
nature or acquired during minority.
In the absence of primary beneficiaries, the dependent parents
are considered the secondary beneficiaries.
In their absence, any other person designated by the member in
his/her SSS records are considered as the beneficiary.
If there is no designated beneficiary, the benefit shall be paid to
the deceased member’s legal heirs in accordance with the law of
succession under the Family Code of the Philippines.
How much is the monthly pension?
The basic monthly pension depends on
1. the member’s paid contributions,
2. including the Credited Years of Service (CYS) a
3. and the number of dependent minor children, which
should not exceed five (5).
4. The monthly pension is paid for not less than 60
months.
The amount of monthly pension will be the highest of:
1. the sum of P300 plus twenty percent (20%) of the
average monthly salary credit (AMSC) plus two
percent (2%) of the AMSC for each CYS in excess of ten
(10) years; or
2. forty percent (40%) of the AMSC; or
3. P1,000 if the member had less than ten (10) CYS; P1,200
if with at least ten (10) CYS; or P2,400 if with at least
twenty (20) CYS.
If the deceased is survived by less than 5 minor legitimate,
legitimated, or legally adopted children
The illegitimate minor children will be entitled to
1. 50% of the share of the legitimate, legitimated, or
legally adopted children in the basic pension
2. 100% of the dependents pension
How much is the lump sum benefit?
The primary beneficiaries of a deceased member who had paid
less than 36 monthly contributions shall be entitled to lump sum
benefit, which shall be the higher of:
1. monthly pension multiplied by the number of monthly
contributions paid prior to the semester of death; or
2. twelve (12) times the monthly pension.
Secondary beneficiaries of the deceased member shall be
entitled to a lump sum benefit equivalent to:
1. 36 times the monthly pension – if the member has
paid at least 36 monthly contributions prior to the
semester of death; OR
if the member has paid less than 36 monthly contributions prior
to the semester of death.
1. monthly pension times the number of monthly
contributions paid
2. or twelve (12) times the monthly pension, whichever
is higher
Other benefits
1. entitled to a 13th month pension payable every
December
2. funeral grant, which is paid to whomever shouldered
the funeral expenses of the deceased member.
3. Effective January 1, 2017, all death survivorship
pensioners shall receive an additional P1,000 benefit,
on top of the computed basic monthly pension.
a. However, in case of multiple death
survivorship beneficiaries, the P1,000
additional benefit shall be divided equally
among them.
4. Survivorship pensioners prior to the effectivity of RA
7875 on March 4, 1995 are also entitled to
hospitalization benefits under PhilHealth.
5. Survivorship pensioners upon the effectivity of RA
7875 on March 4, 1995 and up to present, are no longer
covered.
a. However, those who wish to avail of
PhilHealth benefits may enroll in the
Individually-Paying Program (SE/VM) or the
Sponsored Program of PhilHealth.
If the deceased member has not paid any single contribution, are
the beneficiaries still entitled to the death and funeral benefits?
The primary or secondary beneficiaries of a deceased member,
who had no contribution at all, but was reported for coverage
as an employee, shall be entitled to funeral benefit only.
Who are considered dependents of a deceased member and what
benefits are they entitled to?
• Dependents of a deceased member are entitled to
Dependent’s Pension, which is equivalent to ten
percent (10%) of the member’s monthly pension or
P250, whichever is higher.
• This is paid for each dependent child
conceived/legally adopted on or before the date of
death of the member,
• but not exceeding five (5) in number beginning with
the youngest and without substitution.
• Legitimate, legitimated, legally adopted, and
illegitimate child who is:
a. unmarried;
b. not gainfully employed; and
c. has not reached 21 years of age, or if over 21
years old, he/she is congenitally
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 17
 incapacitated or while still a minor was
permanently incapacitated and incapable of
self-support, physically or mentally.
• A child who has entered into a common-law
relationship and has not attained the age of eighteen
(18).
a. However, upon reaching the age of 18, the
Dependent’s Pension shall stop
• The additional P1,000 benefit (given starting January 1,
2017) is not included in the Dependent’s Pension.
For how long will the dependent child receive the pension?
Payment of the Dependents’ Pension shall stop if the
dependent:
1. dies;
2. reaches 21 years old, unless congenitally incapacitated;
or while still a minor has been permanently
incapacitated and incapable of self-support, physically
or mentally;
3. is gainfully employed;
4. marries;
5. enters into a common-law relationship upon attaining
at least eighteen (18) years of age; or
6. attains the age of eighteen (18) while having a
common-law relationship.
What is the prescriptive period in filing for claim for death
benefit?
There is no prescriptive period for the filing of initial death
benefit.
However, filing of requests for re-adjudication or adjustment of
settled death benefit claim must be filed within ten (10) years.
The reckoning point shall be as follows:
1. For claims settled prior to March 1, 2006, the 10-year
prescriptive period shall start on March 1, 2016.
2. For claims settled on or after March 1, 2006, the 10-year
prescriptive period shall start on the date of initial
settlement of the claim
Funeral Grant
The funeral grant is the amount given to whomever pays the
burial expenses of the deceased member or pensioner.
1. Starting August 1, 2015, the amount of the funeral
grant was increased to a variable amount ranging from
a minimum of P20,000 to a maximum of P40,000,
depending on
a. the member’s paid contributions a
b. and credited years of service (CYS).
Employee’s Compensation
What is The Employee’s
Compensation Program?
Employees’ Compensation (EC)
program assists workers and their
dependents in the event of work-
connected sickness or injury and its
resulting disability or death.
Who are covered under the EC program?
All SSS-registered Employers and their Employees are
compulsorily covered under the EC program and need not
register again under EC.
General Coverage;
1. All employers;
2. Every employee not over 60 eyars of age
3. An employee over 60 who had been paying
contributions to the GSIS/SSS prior to age 60 and has
not been compulsorily retired
4. Any employee covered by both GSIS and SSS and
compulsorily covered by both systems
Sectors of Employees covered;
1. All public sector employees including those of GOCCs
and LGUs covered by GSIS
2. All private sector employees covered by SSS
3. OFWs
a. Filipino seafarers compulsorily covered
under the SSS
b. Land-Based contract workers provided their
employer, natural or juridical is engaged in
any trade, industry or business undertaking
in the Philippines; otherwise, they shall not be
covered
What are the qualifications for EC benefits?
1. The EE should be duly reported to the SSS;
2. The EE’s sickness, injury or death is work-connected;
and
3. The SSS has been duly notified of such sickness, injury
or death.
Under what conditions can an injury, sickness or death be
compensable under EC?
A sickness, injury, disability or death resulting from an
employment accident is compensable if:
1. The EE is injured at the workplace while performing
official functions; or
2. The EE is executing an order for the ER; or
3. While performing an act to minister personal comfort;
or
4. Injury happened while going to or coming from the
workplace; or
5. Injury happened while engaged in company-
sponsored activity; or
6. Injury occurred while on-board a vehicle provided by
the company; or
7. Illness is listed as an occupational disease under PD
626.
No compensation will be allowed to an EE or the dependents if
the injury, sickness, disability or death is due to:
1. Intoxication;
2. Willful intention to injure or kill oneself or another; or
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 18
 3. Notorious negligence.
Start of the coverage of employees;
First day of their employment; coverage is compulsory in
nature
How much is the monthly contribution?
Only the Employer is required to remit monthly EC
contributions on behalf of the Employees
Effective January 1, 2007,
1. the required contribution is P10 for those with Monthly
Salary Credit of less than P15,000.
2. For those with Monthly Salary Credit of P15,000 and
above, the required contribution is P30
How long is the ER obliged to pay for the EC contributions of
the EE?
1. For as long as the EE works for him/her, the ER is
obliged to pay EC contributions. The obligation of the
ER ceases when an EE is separated from employment,
or if the EE dies during employment.
2. When a covered EE becomes disabled during
employment, the ER’s obligation to pay the monthly
contribution arising from the employment will be
suspended during the months when the EE is not
receiving salary or wages.
What should the EE do to file for an EC claim?
The Employer should be notified of the EE’s sickness, injury or
death within five (5) days from occurrence of the contingency.
Notice is not necessary if the contingency occurred during
working hours, at the place of work, and with the knowledge of
the employer or representative.
What should the ER do upon the EE’s submission of notice?
Pursuant to Section 2 Rule XVI - Employer’s Records and
Notices of PD 626 or the Employee’s Compensation Law, all ERs
are required to keep a logbook to record chronologically the
sickness, injury or death of their EEs, listing therein their names,
dates, and places of contingency and absences. Entries in the
logbook should be made within five (5) days from notice or
knowledge of the occurrence of the contingency. Within five (5)
days after entry in the logbook, the ER should report to SSS
those contingencies it deems to be work-connected.
Failure of the ER to keep a logbook or to give false information
or withhold material information already in possession shall
make the employer liable for fifty percent (50%) of the lump sum
equivalent of the income benefit to which the EE may be found
to be entitled, the payment of which shall accrue to the State
Insurance Fund.
Benefits under the EC program are in the form of either income
benefits or SERVICES and they consist of the following:
Medical Services, Appliances and Supplies – these are provided
to the afflicted member beginning on the first day of injury or
sickness, during the subsequent period of his/her disability,
and as the progress of his/her recovery may require, subject to
the expense limitation prescribed by the EC Commission.
These benefits, however, are limited to the ward services only
of an accredited hospital and physician. Ward services are all
services an in-patient would ordinarily receive in a hospital.
Rehabilitation Services – Rehabilitation is the process by which
there is provided a balanced program of remedial treatment,
vocational assessment and preparation designed to meet the
individual needs of each handicapped EE to restore him/her to
suitable employment (including assistance as may be within its
resources) to help each person with work-related disability
(PWRD) to develop his/her mental, vocational or social
potential.
Income Cash Benefit – provided for the following:
Temporary total disability or sickness. An income cash benefit
equivalent to ninety percent (90%) of the Average Daily Salary
Credit with a minimum of P10 and a maximum of P200
(effective November 1, 1996).
It is payable for a period not longer than 120 consecutive days
except where the injury or sickness still requires medical
attendance beyond 120 days but not to exceed 240 days.
However, the System may declare the total and permanent
status at any time after 120 days of continuous temporary total
disability as may be warranted by the degree of actual loss or
impairment of physical or mental functions of the member. The
Employer shall be liable for the benefit if such illness or injury
occurred before the Employee is duly reported for coverage to
the System.
Permanent total disability. This involves the loss of two limbs
at or above the ankle or wrists, permanent complete paralysis of
two limbs, or other similar conditions as evaluated by a Medical
Specialist.
This benefit is a monthly pension paid to the sick or injured
worker until death, plus ten percent (10%) for each of his/her
five (5) dependent children, beginning with the youngest child
and without substitution.
The monthly pension shall be guaranteed for five (5) years and
shall be suspended
1. if the EE is gainfully employed,
2. recovers from permanent total disability,
3. or fails to present himself/herself for examination at
least once a year upon notice by the SSS,
4. or fails to submit a quarterly medical report certified
by the attending physician as required under Section
5, Rule IV of the EC Law.
Beginning January 1, 1991, a permanent total or permanent
partial disability pensioner is given a Supplemental Allowance,
in addition to the monthly pension, as additional financial
assistance to meet the extra needs due to the disability. Effective
May 1, 1993, the supplemental allowance is P575 a month.
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 19

Upon the death of an EC permanent total disability (PTD)
pensioner, the SSS will pay to the primary beneficiaries eighty
percent (80%) of the monthly pension if the cause of death is a
complication or natural consequence of previously-
compensated PTD. In addition, the dependents will be paid the
dependent’s pension. If the deceased pensioner has no primary
beneficiaries, the SSS will pay to the secondary beneficiaries the
remaining balance of the five-year guaranteed period, excluding
the dependent’s pension.
Permanent partial disability. This involves the loss of one
thumb, one arm, one index finger, one leg, or other similar
conditions as evaluated by a Medical Specialist.
A monthly pension is provided to the member, which is
equivalent to the pension for Permanent Total Disability , but
limited to the number of months designated by law for a
particular disability. However, if the pension duration of the
permanent partial disability is less than a year, the benefit is
paid one-time in lump sum.
Death. A monthly pension is provided to the deceased
member’s primary beneficiaries, plus ten percent (10%) of such
benefit for each of the dependent children, subject to some
limitations. In the absence of primary beneficiaries, the
secondary beneficiaries are entitled to the monthly pension but
not to exceed sixty (60) months. Under the EC program, a
funeral benefit grant will also be paid to any person who
actually shouldered the burial expenses of the deceased
member. As of September 1, 2013, this funeral benefit grant is
P20,000.
RA 8291 – GSIS LAW
Coverage; Compulsory membership; divided into those below
65 and above 65 years old;
1. All government personnel,
a. whether elective or appointive, irrespective of
status of appointment,
b. provided they are receiving fixed monthly
compensation and
c. have not reached the mandatory retirement
age of 65 years, are compulsorily covered as
members of the GSIS
d. and shall be required to pay contributions.
2. However, employees who have reached the
retirement age of 65 or more shall compulsorily
covered and be required to pay both the life and
retirement premiums under the following situations:
a. An elective official who at the time of election
to public office is below 65 years of age and
will be 65 years or more at the end of his term
of office, including the period/s of his re-
election to public office thereafter without
interruption.
b. Appointive officials who, before reaching the
mandatory age of 65, are appointed to
government position by the President of the
Republic of the Philippines and shall remain
in government service at age beyond 65.
c. Contractual employees including casuals and
other employees with an employee-
government agency relationship are also
compulsorily covered, provided they are
i. receiving fixed monthly
compensation and
ii. rendering the required number of
working hours for the month.
Classes of membership in the GSIS
Membership in the GSIS is classified either by type or status of
membership.
As to type of members, there are regular and special members:
Regular Members – are those employed by the government of
the Republic of the Philippines, national or local, legislative
bodies, government-owned and controlled corporations
(GOCC) with original charters, government financial
institutions (GFIs), who are required by law to remit regular
monthly contributions to the GSIS.
except
1. uniformed personnel of the Armed Forces of the
Philippines,
2. the Philippine National Police,
3. Bureau of Jail Management and Penology (BJMP)
4. and Bureau of Fire Protection (BFP)
Special Members – are
1. constitutional commissioners,
2. members of the judiciary,
3. including those with equivalent ranks,
who are required by law to remit regular monthly contributions
for life insurance policies to the GSIS in order to answer for their
life insurance benefits defined under RA 8291.
As to status of membership, there are active and inactive
members.
Active member – refers to a
1. member of the GSIS, whether regular or special,
2. who is still in the government service and together
with the government agency to which he belongs,
3. is required to pay the monthly contribution.
Inactive member – a member who
1. is separated from the service either by resignation,
retirement, disability, dismissal from the service,
retrenchment OR
2. who is deemed retired from the service under this Act.
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 20

Effectivity of membership
effective date of membership shall be the date of the member’s
assumption to duty on his original appointment or election to
public office.
What happens if you are separated from office?
A member separated from the service by reason of resignation,
retirement, disability, dismissal from the service, retrenchment
or in any manner of separation from the government agency to
which he is employed, shall continue to be a member although
classified under inactive status and his membership shall be
maintained in the database of GSIS. Whatever future benefits he
is entitled to shall be payable to the member once they become
due.
Who are excluded from compulsory coverage
1. Uniformed personnel of the Armed Forces of the
Philippines (AFP), Philippine National Police (PNP),
Bureau of Fire Protection (BFP) and Bureau of Jail
Management and Penology (BJMP);
2. Barangay and Sanggunian Officials who are not
receiving fixed monthly compensation;
3. Contractual Employees who are not receiving fixed
monthly compensation; and
4. Employees who do not have monthly regular hours of
work and are not receiving fixed monthly
compensation.
Beneficiaries
(a) legitimate spouse dependent for support on the member or
pensioner,
(b) legitimate/legitimated legally adopted child, including the
illegitimate child, who is unmarried, not gainfully
employed, not over the age of majority, or is over the age
of majority but incapacitated and incapable of self-support
due to a mental or physical defect acquired prior to age of
majority, and
(c) (Secondary beneficiary) the parents dependent upon the
member for support.
Gainful occupation - Any productive activity that provides
income of at least equal to the prevailing minimum
compensation of government employees
Compulsory Life Insurance Benefits
under the Life Endowment
Policy (LEP)
Entitled to;
(a) Maturity benefits, which is the face amount payable to the
member upon maturity of the policy.
(b) Cash Surrender Value, which are earned values during
the term of the insurance payable to the member when he
is separated from the service before maturity date of the
policy or when he is considered as a case of PTD.
(c) Death Benefit, which is the face value of the policy payable
to designated beneficiary/beneficiaries or legal heirs, in
the absence of the former, upon the death of a member.
(d) Accidental Death Benefit (ADB) is an additional benefit
equivalent to the amount of Death Benefit when the
member dies by accident.
a. In this connection, proof must be presented to
sufficiently establish that the cause of the
member’s death is accidental. The right to
present sufficient proof to show that death
was accidental shall prescribe if the claim for
ADB is filed four (4) years after the death of
the member.
(e) Cash Dividend. A policyholder is entitled to dividends
subject to the guidelines as approved by the GSIS Board.
This is not a guaranteed benefit.
Retirement Benefits
What are retirement benefits?
retirement benefit consists of a monthly pension which is
computed based on years of creditable service and AMC for the
last 3 years.
Eligibility to Qualify;
(a) has rendered at least Fifteen (15) years of service;
(b) is at least Sixty (60) years of age; and
(c) is not receiving a monthly pension benefit from permanent
total disability.
Retirement benefit options
(a) Five (5) year lump sum equivalent to sixty (60) months of
the BMP, subject to qualification requirements,
a. less all outstanding obligations of the
member in accordance with the CLIP,
b. plus an old-age pension benefit equal to the
BMP payable for life, starting on the first day
of the month following the expiration of the
five year guaranteed period; or
(b) A cash payment benefit equivalent to eighteen (18) times
of the BMP, subject to qualification requirements,
a. less all outstanding obligations of the
member in accordance with the CLIP,
b. plus monthly pension for life payable on the
first month following the date of retirement;
Change of retirement benefit option; not allowed;
Change of Retirement Benefit Option under RA 8291. Change of
retirement benefit option from eighteen (18) months cash
payment plus immediate pension to five (5) year lump sum, or
vice versa, shall not be allowed.
Conversion; not allowed
(a) Conversion in the mode of retirement from R.A. No. 8291
to any other retirement laws and vice versa administered
by the GSIS shall not be allowed.
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 21
(b) Those who became GSIS members prior to the
implementation of this Act shall have the option to retire
under PD 1146, RA 660, or RA 1616, subject to eligibility.
Processing of Retirement Benefits of Members Who Died While
their Claims are Being Processed
For those qualified for retirement benefits:
a. If the deceased member opted for five year lump sum benefit
as indicated in his/her claim for retirement application,
• his legal heirs shall be entitled to five-year
lump sum benefit equivalent to sixty (60)
months basic monthly pension (BMP).
• However, the survivorship pension to
qualified primary beneficiaries, if any, shall
be granted after the end of the 5-year
guaranteed period, but filing of claim for
survivorship benefit should be done before
the end of the 4-year prescription period.
b. If the deceased member opted for immediate pension as
indicated in his/her claim for retirement benefit
• his legal heirs shall be entitled to retirement benefits
equivalent to eighteen (18) months of BMP,
• plus accrued pension, if any, up to the date of death of
the retiree.
• The corresponding survivorship pension shall be paid
to the qualified primary beneficiaries, if any, and shall
be computed from the date of death of the retiree,
subject to filing of claim
In case the deceased member failed to indicate in his/her
retirement option, it shall be computed as if he/she opted for
immediate pension
For those not qualified for retirement benefits, the GSIS shall
determine if he/she is qualified to other applicable benefits
under RA 8291 or such other laws administered by the GSIS.
Effects of Re-employment
RULE: When a retired/separated member is re-employed or
reinstated in the service,
• his/her previous services credited at the time of
his/her retirement/separation for which a and Survivorship Pensioners is required on their birth
corresponding benefit had been awarded, shall be
excluded in the computation of service.
• In effect, he/she shall be considered a new entrant.
EXCEPTION: However, for those who retired prior to the
enactment of RA 8291, the previous services of a
retired/separated member may be added in the computation of
his creditable services (subject to premium-based policy) upon
subsequent retirement under RA 8291 only when both
conditions are met:
a. the retiree re-entered government service
before June 24, 1997; and
b. the total amount of benefit previously
received, if any, including the prescribed
interest was refunded to GSIS on or before
March 2, 2006
Computation of Total Service
1. Total Length of Service (TLS) is the number of years
in government service regardless of status of
employment, with or without premium contributions.
2. For purposes of computing the total length of service
under part-time status of employment, services shall
be converted to their full-time equivalent using forty-
hour week and fifty two-week a year as basis.
3. The computation of creditable service for the purpose
of determining the amount of benefits payable shall
include the period or periods of service with the
required premium contributions.
4. The Average Monthly Compensation shall be
computed on the basis of the average salary of the
member for the last 36 months of creditable service
immediately preceding his retirement or separation.
a. basis for computing the AMC of a separated
or retired member requesting for
computation of benefits shall be the
prevailing policy on AMC at the time the
claim is being processed.
5. Computation of Revalued Monthly Compensation =
AMC plus Seven Hundred Pesos (P700.00).
6. Computation of Basic Monthly Pension – As a
general rule, the BMP shall only be computed for those
members or dependents/heirs of members who are
eligible to receive benefits under this law. It shall be
computed on the basis of a percentage of the Revalued
Average Monthly Contribution at the rate of 2.5% for
every year of creditable service, but in no case shall it
exceed 90% of the AMC of the member;
a. The formula for computing BMP shall be:
BMP = RAMC x (2.5% x RCS)
Notes:
• Regardless of the date of retirement, the monthly
pension shall commence on the 1st day of the month
following the month of retirement
• Annual Renewal of Active Status (ARAS) of Old Age
month every year
• Effects of Non-renewal of Active Status as Pensioner:
o a. Suspension of payment of monthly pension
o b. Non-entitlement to cash gift if status is
suspended at the time of declaration
o c. Non-entitlement to pension increase if
status is suspended at the time of declaration
Separation benefit
Separation benefit is EITHER one of the following
I - For those members who are separated from service and who
have at least 3 years of service but less than 15 years shall be
entitled to
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 22
 1. cash payment equivalent to 100% of the member’s
AMC for each year of creditable service, In cases of reemployment, all accumulated unemployment
2. but not less than P12,000.00, benefit paid to the employee during his/her entire membership
3. payable upon reaching age 60, or upon his separation with the GSIS shall be deducted without interest from the
if he is already 60 years of age at the time of separation. separation or retirement benefits, as the case maybe, to which
the member may be entitled to upon his voluntary resignation,
II - A cash payment equivalent to eighteen (18) times the basic separation or retirement.
monthly pension payable at the time of resignation or
separation, Disability benefits
• provided the member resigns or separates from the
service after he has rendered at least 15 years of service
Disability
and is below 60 years of age,
refers to any
• plus an old-age pension benefit equal to the basic
1. loss or impairment of the normal functions of the
monthly pension payable monthly for life upon
physical and/or mental faculties of a member,
reaching the age of sixty (60).
2. which permanently or temporarily prevents him to
continue with his work or engage in any other gainful
III - Reckoning Date of Separation of Uniformed PNP, BJMP and
occupation
BFP Personnel shall be February 1, 1996. The computation of
3. resulting in the loss of income.
benefit shall be based on their basic monthly salary (premium-
based) when they ceased to be members of the GSIS.
Basis of reckoning
corresponding disability benefits for each kind of disability shall
Processing of Separation Benefit of Members Who Died While
be granted to a member based on the duration of incapacity to
Their Claims are Being Processed
work and actual loss of income.
1. If the member dies during the pendency of his claim
for separation benefit and he has rendered at least 15
Kinds of Disability
years of creditable service, his legal heirs shall be
1. Permanent Total Disability; disability due to injury or
entitled to receive
disease causing complete, irreversible and permanent
a. cash payment equivalent to eighteen (18)
incapacity that will permanently disable a member to work
times the basic monthly pension,
or to engage in gainful occupation
b. plus accrued BMP, if any, up to the date of
• a. complete loss of sight for both eyes; b. loss of two
death of the member.
limbs at or above the ankle or wrists; c. permanent
c. Thereafter, the primary beneficiaries shall be
complete paralysis of two limbs; and d. brain injury
entitled to survivorship pension.
resulting in incurable imbecility or insanity. e. such
2. If the member dies during the pendency of his claim
other cases as may be determined and approved by the
for separation benefit and he has rendered less than
GSIS
15 years of creditable service, his legal heirs shall be
1. Permanent Partial Disability; complete and permanent
entitled to
loss of any of the following
a. cash payment equivalent to one hundred
• a.1. any finger a.2. any toe a.3. one arm; a.4. one hand;
percent (100%) of AMC for each year of
a.5. one foot; a.6. one leg a.7. one or both ears; a.8.
creditable service,
hearing of one or both ears; a.9. sight of one eye; a.10.
b. but not less than Twelve Thousand Pesos
such other cases as may be determined and approved
(P12,000.00).
by the GSIS
2. Temporary Total Disability; when the impaired physical
Unemployment Benefit and/or mental faculties can be rehabilitated and/or
restored to their normal functions, but such disability shall
3 Qualifications result in temporary incapacity to work or to engage in any
1. he/she was a permanent employee at time of gainful occupation.
separation;
2. his/her separation was involuntary Types of disabilities that are not compensable?
a. due to the abolition of his/her office or 1. Those as a result of grave misconduct
position resulting from reorganization; and 2. Participation in riots
3. he/she has been paying the required premium 3. Gross and inexcusable negligence
contributions for at least one (1) year but less than 15 4. Under the influence of drugs or alcohol
years prior to separation. 5. Or willful intention to injure or kill himself or another

Amount, Duration and Payment Of Unemployment Benefit.- Entitlement in case of two or more injuries
The amount of unemployment benefit is equivalent to 50% of Compensable only once for the overlapping periods.
the AMC
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 23
4 Grounds for Suspension of benefit
1. Re-employed
2. Recovers from his or her disability
3. Fails to present himself for medical examination when
required by GSIS
4. Is receiving any other pension either from GSIS or
another local or foreign institution or organization
Computation of Benefit;
1. Permanent TOTAL Disability
a. A member who becomes permanently and
totally disabled shall be entitled to the
monthly income benefits for life equivalent to
the basic monthly pension (BMP) effective
from the date of disability.
2. Permanent PARTIAL Disability
a. the period of entitlement to PPD benefit shall
be determined after due medical evaluation;
b. but such period of entitlement to the benefit
shall not exceed 12 months for the same
contingency.
c. Only the leave of absence/s without pay
incurred during the period of entitlement,
duly certified by the authorized officer of the
agency where he is employed, shall be
compensable.
d. The amount of PPD benefit shall be computed
by dividing the BMP by 30 days and
multiplying the quotient by the number of
compensable calendar days of leave of
absence without pay (LWOP).
3. Temporary TOTAL Disability
a. The period of entitlement to TTD benefit shall
be determined after due medical evaluation
and proof of actual loss of work resulting in
loss of income by way of the incurred actual
number of days of leave of absence/s without
pay duly certified by the authorized officer of
the agency where he is employed;
b. but such period of entitlement to the benefit
shall not exceed 120 days in one calendar
year.
c. However, if the disability requires more
extensive treatment that lasts beyond 120
days, the payment of the TTD may be
extended by the GSIS but not to exceed a total
of 240 days.
d. Only the leave of absence/s without pay
incurred during the period of entitlement
shall be compensable. Entitlement, however,
shall start from the fourth day of the
disability.
e. The amount of TTD benefit shall be computed
by
i. multiplying 75% of the daily salary
of the member by the number of
days of disability based on the
medical evaluation but not to exceed
240 days for the same contingency.
ii. However, the computed daily salary
shall not be less than seventy pesos
(P70.00) but not to exceed P340.00
per day.
f. For the purpose of computing the
corresponding benefit of inactive members
for each kind of disability, the BMP, with
respect to PTD and PPD, and daily salary,
with respect to TTD, shall be computed as of
the time of separation from GSIS.
Conditions to be entitled to
• PERMANENT TOTAL DISABILITY benefits
• PERMANENT PARTIAL
• TEMPORARY TOTAL
1. he/she is in the service at the time of disability;
a. OR if separated from the service,
i. he has paid at least thirty six (36)
months contributions
ii. within the five year (5) period
immediately preceding his/her
disability; OR
iii. has paid a total of at least one
hundred eighty (180) months
contributions prior to his/her
disability;
2. he/she is gainfully employed prior to the
commencement of disability resulting in loss of income
as evidenced by any incontrovertible proof thereof;
3. he/she is not a registered member of any social
insurance institution; and
4. he/she is not receiving any other pension either from
GSIS or another local or foreign institution or
organization
Additional cash payments;
In addition to the monthly income benefits for life,
1. a cash payment equivalent to eighteen (18) times
his/her basic monthly pension (BMP),
a. shall be paid to a member who was in the
service at the time of his/her permanent total
disability and who has paid a total of one
hundred eighty (180) monthly contributions
2. A separated member
a. who has at least three (3) years of service
b. and becomes permanently and totally
disabled
c. but has not paid a total of at least one
hundred eighty (180) monthly contributions
prior to his/her disability
shall be entitled only to cash payment equivalent to
one hundred percent (100%) of his/her average
monthly compensation for each year of service with
paid contributions but not less than twelve thousand
pesos (P12,000.00).
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 24

Forfeiture of disability benefits; FOR FAILURE TO:
1. have himself/herself medically treated by a physician
when required by the GSIS; or
2. take the prescribed medications ; or
3. have himself/herself confined in a hospital without
justifiable reason, when such confinement is required
by the GSIS; or
4. avail himself/herself of such rehabilitation facilities as
may be duly recommended by the GSIS and made
available for him/her; or
5. Observe such precautionary and /or preventive
measures as prescribed by a physician or expressly
required of him/her to prevent the aggravation or
continuance of his/her disability.
Survivorship Benefits
Survivorship benefits upon death of member or pensioner
When a member or pensioner dies, the beneficiaries shall be
entitled to the following survivorship benefits, whichever is
applicable:
1. Survivorship pension consisting of:
a. the basic survivorship pension which is fifty
percent (50%) of the BMP; and
b. the dependent children’s pension equivalent
to 10% of the BMP for each child but not to
exceed fifty percent (50%) of the BMP
2. Cash payment equivalent to eighteen (18) months BMP
3. Cash payment equivalent to one hundred percent
(100%) of the AMC for every year of service with paid
contributions but not less than Twelve Thousand Pesos
(P12,000.00).
Survivorship benefit of member in ACTIVE Service
1. If at the time of death, a member was in the service and
has rendered at least fifteen (15) years of creditable
service;
a. his primary beneficiaries shall receive the
i. survivorship pension and
ii. cash payment equivalent to 18 x the
BMP; or
b. in the absence of primary beneficiaries, his
secondary beneficiaries shall receive the
i. cash payment equivalent to 18 x the
BMP; or
c. in the absence of secondary beneficiaries, the
legal heirs shall receive
i. the cash payment equivalent to 18 x
the BMP
2. If at the time of death, the member was in the service
with less than fifteen (15) years of creditable service;
a. his primary beneficiaries shall receive the
i. cash payment equivalent to 100% of
the AMC for every year of creditable
service.
Survivorship benefits of INACTIVE members
Primary beneficiaries of inactive members who have at least 15
years of creditable service shall receive the survivorship pension
only.
1. -Primary beneficiaries of inactive members
-who have at least 3 years but less than 15 years of
creditable service
-and were less than 60 years old at the time of death
a. shall receive the cash payment equivalent to
100% of the AMC for every year of creditable
service,
b. but not less than P12,000.00.
2. -Primary beneficiaries of inactive members
-who have less than 15 years of creditable service
-but were at least 60 years old at the time of separation
-and have received the corresponding separation
benefit, shall not be entitled to survivorship benefits.
a. However, if the member has not received yet
his separation benefit within four years after
his/her separation,
i. the primary beneficiaries shall
receive the cash benefit equivalent to
100% of the inactive member’s AMC
for every year of creditable service,
ii. but not less than P12,000.00.
How is it paid?
a. When the dependent spouse is the only survivor,
• he shall receive the basic survivorship pension;
b. When only the dependent children are the survivors, they
shall be
• entitled only to the dependent children’s pension
equivalent to 10% of the BMP for every dependent
child, not exceeding five (5), counted from the
youngest and without substitution;
c. When the survivors are the dependent spouse and the
dependent children,
• the dependent spouse shall receive the basic
survivorship pension for life or
• until he remarries or cohabits,
• and the dependent children shall receive the
dependent children’s pension.
d. When the dependent spouse and dependent children are
already receiving the basic survivorship pension and
dependent children’s pension, respectively,
• any subsequent death, emancipation or
disqualification of any one of them shall not entitle the
other beneficiaries to the forfeited share.
e. In the absence of a natural guardian,
• the guardian de facto of dependent children, as well as
the physically or mentally incapacitated dependent
children, must file a Petition for Guardianship to be
able to claim the survivorship benefits on behalf of the
dependent children.
f. When the pensioner dies within the 5-year period after
receiving the five-year lump sum,
• the survivorship pension shall be paid only after the
end of the said five-year period.
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 25

• However, filing of claim for survivorship benefit
should be done before the end of the 4-year
prescription period.
Conditions for entitlement to survivorship benefits
1. not engaged in any gainful occupation as defined in
Sec 2 (p) of RA 8291;
2. the surviving spouse and the deceased member were
living together as husband and wife;
3. not gainfully engaged in a business or economic
activity (selfemployed);
4. employed/engaged in a business or economic activity
but receiving income less than the minimum
compensation of government employees.
5. not receiving any other pension from the GSIS or
another local or foreign institution or organization;
and
6. In the case of the dependent spouse, payment of the
basic survivorship pension shall discontinue when he
remarries, cohabits, or engages in common-law
relationship.
Funeral benefits
To whom payable;
It is payable to any qualified individual, in accordance
with the following order of priority:
a. Legitimate spouse,
b. Legitimate child who spent for the funeral services, or
c. Any other person who can show incontrovertible proof
that he shouldered the funeral expenses of the deceased
Amount
1. The prevailing amount approved by the Board of
Trustees at the time of death of the member or
pensioner.
2. For uniformed members of the PNP, BJMP and BFP,
the amount of funeral benefit is fixed at P10,000.00.
Conditions for entitlement; Funeral benefit shall be paid upon
the death of:
1. an active member; or
2. a member who has been separated from the service
with more than 15 years of creditable service, but
entitled to future separation or retirement benefits; or
3. old age or disability pensioner; or
4. a retiree who at the time of his retirement
o is at least 60 years of age and
o with at least 20 years of service but who opts
to retire under RA 1616 on or after June 24,
1997; or
5. a member who retired under RA 1616 prior to June 24,
1997 with at least twenty (20) years of service,
regardless of age.
RA 7699
Limited Portability law
Rationale
R.A. No. 7699 was enacted
• to enable those from the private sector who transfer to
the government service
• or from the government sector to the private sector
• to combine their years of service and contributions
which have been credited with the SSS or GSIS, as the
case may be,
• to satisfy the required number of years of service for
entitlement to the benefits under the applicable laws.
DUAL PURPOSE
Totalization
refers to the process of adding up the periods of creditable
services or contributions under each of the Systems, SSS or GSIS,
for the purpose of eligibility and computation of benefits.
Portability
refers to the transfer of funds for the account and benefit of a
worker who transfers from one system to the other.
Applicablity
1. apply to active or inactive members of either System
(GSIS/SSS)
2. as of the date of its effectivity on May 20, 1994
Coverage
1. R.A. No. 7699 and its implementing rules apply to all
worker-members of the GSIS and/or SSS who transfer
from the public sector to the private sector or vice-
versa,
2. or who wish to retain their membership in both
Systems
Creditability of Totalization
1. shall have his creditable services or contributions
in both Systems (GSIS and SSS) credited to his
service or contribution record in each of the
Systems
2. and shall be totalized for purposes of old-age,
disability, survivorship and other benefits
3. in case the covered member does not qualify for
such benefits in either or both Systems without
totalization
4. provided, however, that overlapping periods of
membership shall be credited only once for
purposes of totalization.
Note:
• The processes involved in the prompt payment of
money benefits to eligible members are the joint
responsibility of the GSIS and SSS
• The System or Systems responsible for the payment of
money benefits due a covered worker shall release the
same within fifteen (15) working days from receipt of
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 26
 the claim, subject to the submission of the required
documents and availability of complete
employee/employer records in the System or Systems
Contributions;
1. All contributions paid by such member personally and
those that were paid by his employers to both Systems
(GSIS and SSS) shall be considered in the processing of
benefits
2. he can claim from either or both Systems
a. provided, however, that the amount of
benefits to be paid by one System shall be in
proportion to the number of contributions
actually remitted to that System
Creditable Services
All creditable services or periods of contributions made
continuously or in the aggregate of a worker under either of the
sectors shall be added up and considered for purposes of
eligibility and computation of benefits.
Creditable Services in so far as PUBLIC sector is concerned refer
to
1. All previous services rendered by an
official/employee pursuant to an appointment,
whether permanent, provisional or temporary;
2. All previous services rendered by an
official/employee pursuant to a duly-approved
appointment to a position in the Civil Service
with compensation or salary;
3. The period during which an official or employee
was on authorized sick leave of absence without
pay not exceeding one (1) year;
4. The period during which an official or employee
was out of the service as a result of illegal
termination of his services as finally decided by
the proper authorities; and
5. All previous services with compensation or
salary rendered by elective officials
Periods of Contribution for PRIVATE sector
“periods of contributions” for the private sector refers to the
periods during which a person renders services for an employer
with compensation or salary, and during which contributions
were paid to the SSS.
Benefits
1. Old-age benefit;
2. Disability benefit;
3. Survivorship benefit;
4. Sickness benefit;
5. Medicare benefit, provided that the member shall
claim said benefit from the System where he was
last a member; and
6. Such other benefits common to both Systems that
may be availed of through totalization.
Totalization applies in the following instances
1. if a worker is not qualified for any benefits from
both Systems; or
2. if a worker in the public sector is not qualified
for any benefits from the GSIS; or
3. if a worker in the private sector is not qualified
for any benefits from the SSS.
totalization applies in all cases so that the contributions made
by the worker-member in both Systems shall provide maximum
benefits which otherwise will not be available. In no case shall
the contribution be lost or forfeited.
What if the worker is STILL not qualified even after
totalization?
the member will then get whatever benefits correspond to
his/her contributions in either or both Systems
Effect if the worker qualifies for BOTH systems
If a worker qualifies for benefits in both Systems, totalization
shall not apply.
PHILHEALTH BENEFITS
(RA 7875, as amended by
RA 9241)
What is the National Health Insurance Program (NHIP)
(Medicare)
a health insurance program for SSS members and their
dependents whereby the healthy subsidize the sick who may
find themselves in need of financial assistance when they get
hospitalized.
What is the PhilHealth?
Philippine Health Insurance Corporation or PhilHealth is the
mandated administrator of the Medicare program (now known
as NHIP) under the National Health Insurance Act of 1995
(Republic Act 7875).
Coverage
1. Members In The Formal Economy - includes
a. those with formal contracts and fixed terms
of employment
b. including workers in the government and
private sector, whose premium contribution
payments are equally shared by the employee
and the employer.
2. Sponsored Members - includes members whose
contributions are being paid for by another individual,
government agencies, or private entities.
3. Members In The Informal Economy - includes a wide
range of individuals and sectors ranging from the self-
earning to migrant workers.
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 27
 4. Lifetime Members - members who
a. have reached the age of retirement under the
law
b. and have paid at least 120 monthly premium
contributions.
5. Indigent Members - persons who
a. have no visible means of income,
b. OR whose income is insufficient for family
subsistence, as identified by the Department
of Social Welfare and Development (DSWD),
based on specific criteria.
6. Senior Citizens - those who
a. are 60 years old and above
b. and are not currently covered by any of the
existing membership categories of PhilHealth
Benefits
A unified benefit package for all PhilHealth members;
1. Inpatient hospital care:
a. Room and board; • Services of health care
professionals; • Diagnostic, laboratory, and
other medical examination services; • Use of
surgical or medical equipment and facilities;
• Prescription drugs and biologicals, subject
to the limitations stated in Section 37 of RA
7875; and • Inpatient education packages.
2. Outpatient care:
a. Services of health care professionals; •
Diagnostic, laboratory, and other medical
examination services; • Personal preventive
services; • Prescription drugs and biologicals,
subject to the limitations described in Section
37 of RA 7875; and • Emergency and transfer
services.
PAG-IBIG BENEFITS
(Republic Act No. 9679)
What is the Home Development Mutual Fund?
The Home Development Mutual Fund, otherwise known as
Pag-IBIG (Pagtutulungan sa kinabukasan: Ikaw, Bangko,
Industriya at Gobyerno) Fund
• is a mutual provident savings system for private and
government employees and other earning groups,
• supported by matching mandatory contributions of
their respective employers
• with housing as the primary investment.
Coverage – Mandatory membership & Voluntary membership
Mandatory Coverage
All employees who are or ought to be covered by the Social
Security System (SSS), provided that actual membership in the
SSS shall not be a condition precedent to the mandatory
coverage in the Fund. It shall include, but are not limited to:
1. A private employee, whether permanent, temporary,
or provisional who is not over sixty (60) years old;
2. A household helper earning at least P1,000.00 a month.
a. A household helper is any person who
renders domestic services exclusively to a
household such as a driver, gardener, cook,
governess, and other similar occupations;
3. A Filipino seafarer
a. upon the signing of the standard contract of
employment between the seafarer and the
manning agency, which together with the
foreign ship owner, acts as the employer;
4. A self-employed person
a. regardless of trade, business or occupation,
b. with an income of at least P1,000.00 a month
and not over sixty (60) years old;
5. An expatriate
a. who is not more than sixty (60) years old and
b. is compulsorily covered by the Social Security
System (SSS), regardless of citizenship, nature
and duration of employment, and the manner
by which the compensation is paid. In the
absence of an explicit exemption from SSS
coverage, the said expatriate, upon
assumption of office, shall be covered by the
Fund.
c. An expatriate shall refer to a citizen of
another country who is living and working in
the Philippines.
All employees who are subject to mandatory coverage by the
Government Service Insurance System (GSIS), regardless of
their status of appointment, including members of the judiciary
and constitutional commissions;
1. Uniformed members of
a. the Armed Forces of the Philippines,
b. the Bureau of Fire Protection,
c. the Bureau of Jail Management and Penology,
and
d. the Philippine National Police;
2. Filipinos employed by foreign-based employers,
a. whether they are deployed here or abroad or
a combination thereof.
Voluntary Coverage
An individual at least 18 years old but not more than 65 years
old may register with the Fund under voluntary membership.
However,
• said individual shall be required to comply with the
set of rules and regulations for Pag-IBIG members
including the amount of contribution and schedule of
payment.
• In addition, they shall be subject to the eligibility
requirements in the event of availment of loans and
other programs/benefits offered by the Fund.
Eligibilty requirements for Volutnary Coverage;
1. Non-working spouses
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 28
 o who devote full time to managing the
household and family affairs,
o unless they also engage in another vocation or
employment which is subject to mandatory
coverage,
o provided the employed spouse is a registered
Pag-IBIG member AND consents to the Fund
membership of the non-working spouse;
2. Filipino employees of foreign government or
international organization,
o or their wholly-owned instrumentality based
in the Philippines, in the absence of an
administrative agreement with the Fund;
3. Employees of an employer who is granted a waiver or
suspension of coverage by the Fund under RA 9679;
4. Leaders and members of religious groups;
5. A member separated from employment, local or
abroad, or ceased to be selfemployed but would like to
continue paying his/her personal contribution.
o Such member may be a pensioner, investor,
or any other individual with passive income
or allowances;
6. Public officials or employees who are not covered by
the GSIS such as
o Barangay Officials, including Barangay
Chairmen, Barangay Council Members,
Chairmen of the Barangay Sangguniang
Kabataan, and Barangay Secretaries and
Treasurers;
7. Such other earning individuals/groups as may be
determined by the Board by rules and regulations
Benefits (S-S-H)
The Fund offers its members the following benefits:
1. Savings
2. Short Term Loans
3. Housing Programs
Savings
• contributions that a member makes together with the
employer counterpart are credited to his Total
Accumulated Value (TAV)
• A member contributing two percent of his monthly
compensation doubles his savings immediately with
the addition of the employer counterpart contribution
• Meanwhile, a member contributing one percent of his
monthly compensation triples his savings as the
employer counterpart remains at two percent.
• members’ contributions are deducted from the gross
income prior to computation of the income tax.
• Members’ savings earn annual dividends that are also
tax-free.
Short-Term Loan Programs
• are meant to provide assistance to its members,
provided:
o they are active
o and have made at least 24 monthly
contributions.
• There are two short-term loan programs that a
member may avail of when the need arises.
o The Multi-Purpose Loan Program was
designed to help finance members’
immediate
▪ medical,
▪ educational
▪ or livelihood needs;
▪ minor home improvement,
▪ purchase of appliance and furniture,
▪ and other related needs.
o Meanwhile, the Calamity Loan Program is
extended to members who have been affected
by a recent calamity, as proven by a
declaration of calamity in their area of
residence.
Housing Programs
that an eligible member may avail of in the form of housing
loans are either
1. the End-User Financing Program or the
2. Magaang Pabahay, Disenteng Buhay Program.
End-User Financing Program
a member may avail of a loan to finance any of the following:
1. Purchase of a fully developed lot not exceeding one
1,000 square meters, which should be within a
residential area;
2. Purchase of a residential house and lot, townhouse or
condominium unit, inclusive of a parking slot. The unit
may be:
i. Old or brand new; • A property
mortgaged with the Fund; or • An
acquired asset, which is disposed of
through sealed public bidding,
negotiated sale, or the Rent-to-Own
Program.
3. Construction or completion of a residential unit on a
lot owned by the member;
4. Home improvement, i.e. any alteration in an existing
residential unit intended by a homeowner to be a
permanent integral part of the property, which will
enhance its durability and material value;
5. Refinancing of an existing mortgage with an institution
acceptable to the Fund, provided that:
a. • The loan is not in default within the 12
months prior to the date of application;
b. • The said loan has a repayment history of at
two years with the original mortgagee
6. Combination of loan purposes, which shall be limited
to the following:
a. • Purchase of a fully developed lot not
exceeding 1,000square meters and
construction of a residential unit thereon;
b. • Purchase of a residential unit, whether old
or new, with home improvement;
SOCIAL LEGISLATION 1st EXAMINATION REVIEWER | 29
 c. • Refinancing of an existing mortgage with
home improvement; Monthly Contribution
d. • Refinancing of an existing mortgage,
specifically a lot loan, with construction of a
residential unit thereon.

Magaang Pabahay, Disenteng Buhay Program

The maximum monthly compensation used in computing the
a qualified member may purchase an acquired asset of the
employee contributions is currently set at P5,000. This means
Fund either in cash or through a housing loan at very
that the maximum member contribution and employer
reasonable prices.
counterpart per month are both currently P100.
• A buyer who purchases an acquired asset in cash is
entitled to a 20% discount on the property’s sales price,
• while a buyer who purchases through a housing loan
is entitled to a 15% discount on the property’s sales
END OF COVERAGE
price.

to qualify for a Pag-IBIG housing loan, a member must satisfy

the following requirements:
1. Must be a member under the Pag-IBIG I for at least 24 DISSEMINATION POLICY
months, as evidenced by the remittance of at least 24 The copying, printing, reading, sharing, utilizing, and
monthly contributions at the time of loan application. possessing of this reviewer is STRICTLY ALLOWED. Share
2. Not more than 65 years old at the date of loan the notes and share the love.
application and must be insurable; provided further
that he is not more than 70 years old at loan maturity; Here’s to being future attorneys soon in God’s perfect timing.
3. Has the legal capacity to acquire and encumber real
property;
4. Has passed satisfactory background/credit and
employment/business checks conducted by the
developer and the Pag-IBIG Fund;
5. Has no outstanding Pag-IBIG housing loan, either as a
principal borrower or co- borrower;
6. Has not availed of a Pag-IBIG housing loan that was
foreclosed, cancelled, bought back due to default, or
subjected to dacion en pago, which shall include cases
where the borrower is no longer interested to pursue
the loan and surrenders the property;
7. May have an outstanding Pag-IBIG multi-purpose
loan but which is updated in payments at the time of
loan application. A member whose multi-purpose loan
is in arrears shall be required to pay his arrears over
the counter to update his account.

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