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00) a
month: Provided , further, That said members of the
REPUBLIC ACT NO. 8282
Commission shall also receive reasonable transportation
and representation allowances as may be fixed by the
Commission, but not to exceed Ten thousand pesos
AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY (P10,000.00) a month.
SYSTEM THEREBY AMENDING FOR THIS PURPOSE,
REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE "(b) The general conduct of the operations and
KNOWN AS THE SOCIAL SECURITY LAW. management functions of the SSS shall be vested in the
SSS President who shall serve as the chief executive officer
immediately responsible for carrying out the program of
SECTION 1. Republic Act No. 1161, as amended, otherwise the SSS and the policies of the Commission. The SSS
known as the "Social Security Law", is hereby further President shall be a person who has had previous
amended to read as follows: experience in the technical and administrative fields
"SECTION 1. Short Title. - This Act shall be known as related to the purposes of this Act. He shall be appointed
the "Social Security Act of 1997." by the President of the Philippines and shall receive salary
to be fixed by the Commission with the approval of the
"SEC. 2. Declaration of Policy. - It is the policy of the President of the Philippines, payable from the funds of the
Republic of the Philippines to establish, develop, promote SSS.
and perfect a sound and viable tax-exempt social security
service suitable to the needs of the people throughout the "(c) The Commission, upon the recommendation of the
Philippines which shall promote social justice and provide SSS President, shall appoint an actuary, and such other
meaningful protection to members and their beneficiaries personnel as may be deemed necessary, fix their
against the hazards of disability, sickness, maternity, old reasonable compensation, allowances and other benefits,
age, death, and other contingencies resulting in loss of prescribe their duties and establish such methods and
income or financial burden. Towards this end, the State procedures as may be necessary to insure the efficient,
shall endeavor to extend social security protection to honest and economical administration of the provisions
workers and their beneficiaries. and purposes of this Act: Provided, however, That the
personnel of the SSS below the rank of Vice-President shall
"SEC. 3. Social Security System. - (a) To carry out the be appointed by the SSS President: Provided, further, That
purposes of this Act, the Social Security System, the personnel appointed by the SSS President, except
hereinafter referred to as ‘SSS’, a corporate body, with those below the rank of assistant manager, shall be
principal place of business in Metro Manila, Philippines is subject to the confirmation by the Commission: Provided,
hereby created. The SSS shall be directed and controlled further, That the personnel of the SSS shall be selected
by a Social Security Commission, hereinafter referred to only from civil service eligibles and be subject to civil
as ‘Commission’, composed of the Secretary of Labor and service rules and regulations: Provided, finally, That the
Employment or his duly designated undersecretary, the SSS shall be exempt from the provisions of Republic Act
SSS president and seven (7) appointive members, three (3) No. 6758 and Republic Act No. 7430.
of whom shall represent the workers’ group, at least one
of whom shall be a woman; three (3), the employers’ "SEC. 4. Powers and Duties of the Commission and SSS.
group, at least one (1) of whom shall be a woman; and one - (a) The Commission.- For the attainment of its main
(1), the general public whose representative shall have objectives as set forth in Section 2 hereof, the Commission
adequate knowledge and experience regarding social shall have the following powers and duties:
security, to be appointed by the President of the "(1) To adopt, amend and rescind, subject to the approval
Philippines. The six (6) members representing workers and of the President of the Philippines, such rules and
employers shall be chosen from among the nominees of regulations as may be necessary to carry out the
workers’ and employers’ organizations, respectively. The provisions and purposes of this Act;
Chairman of the Commission shall be designated by the
President of the Philippines from among its members. The "(2) To establish a provident fund for the members which
term of the appointive members shall be three (3) will consist of voluntary contributions of employers and/or
years: Provided, That the terms of the first six (6) employees, self-employed and voluntary members and
appointive members shall be one (1), two (2) and three (3) their earnings, for the payment of benefits to such
years for every two members, respectively: Provided, members or their beneficiaries, subject to such rules and
further, That they shall continue to hold office until their regulations as it may promulgate and approved by the
successors shall have been appointed and duly qualified. President of the Philippines;
All vacancies, prior to the expiration of the term, shall be
"(3) To maintain a provident fund which consists of
filled for the unexpired term only. The appointive
contributions made by both the SSS and its officials and
members of the Commission shall receive at least two
employees and their earnings, for the payment of benefits
thousand five hundred pesos (P2,500.00) per diem for
to such officials and employees or their heirs under such
each meeting actually attended by them but not to exceed
terms and conditions as it may prescribe;
Ten thousand pesos (P10,000.00) a month:: Provided,That
members of the Commission shall also receive a per diem "(4) To approve restructuring proposals for the payment of
of at least Two thousand five hundred pesos (P2,500.00) due but unremitted contributions and unpaid loan
amortizations under such terms and conditions as it may may be needed for the proper administration and
prescribe; development of the SSS;
"(5) To authorize cooperatives registered with the "(8) To acquire and dispose of property, real or personal,
cooperative development authority or associations which may be necessary or expedient for the attainment
registered with the appropriate government agency to act of the purposes of this Act;
as collecting agents of the SSS with respect to their
"(9) To acquire, receive, or hold, by way of purchase,
members: Provided,That the SSS shall accredit the
expropriation or otherwise, public or private property for
cooperative or association: Provided, further,That the
the purpose of undertaking housing projects preferably for
persons authorized to collect are bonded;
the benefit of low-income members and for the
"(6) To compromise or release, in whole or in part, any maintenance of hospitals and institutions for the sick, aged
interest, penalty or any civil liability to SSS in connection and disabled, as well as schools for the members and their
with the investments authorized under Section 26 hereof, immediate families;
under such terms and conditions as it may prescribe and
"(10) To sue and be sued in court; and
approved by the President of the Philippines; and
"(11) To perform such other corporate acts as it may deem
"(7) To approve, confirm, pass upon or review any and all
appropriate for the proper enforcement of this Act.
actions of the SSS in the proper and necessary exercise of
its powers and duties hereinafter enumerated. "SEC. 5. Settlement of Disputes. - (a) Any dispute arising
under this Act with respect to coverage, benefits,
"(b) The Social Security System. - Subject to the provision
contributions and penalties thereon or any other matter
of Section four (4), paragraph seven (7) hereof, the SSS
related thereto, shall be cognizable by the Commission,
shall have the following powers and duties:
and any case filed with respect thereto shall be heard by
"(1) To submit annually not later than April 30, a public the Commission, or any of its members, or by hearing
report to the President of the Philippines and to the officers duly authorized by the Commission and decided
Congress of the Philippines covering its activities in the within twenty (20) days after the submission of the
administration and enforcement of this Act during the evidence. The filing, determination and settlement of
preceding year including information and disputes shall be governed by the rules and regulations
recommendations on broad policies for the development promulgated by the Commission.
and perfection of the program of the SSS;
"(b) Appeal to Courts. - Any decision of the Commission, in
"(2) To require the actuary to submit a valuation report on the absence of an appeal therefrom as herein provided,
the SSS benefit program every four (4) years, or more shall become final and executory fifteen (15) days after the
frequently as may be necessary, to undertake the date of notification, and judicial review thereof shall be
necessary actuarial studies and calculations concerning permitted only after any party claiming to be aggrieved
increases in benefits taking into account inflation and the thereby has exhausted his remedies before the
financial stability of the SSS, and to provide for feasible Commission. The Commission shall be deemed to be a
increases in benefits every four (4) years, including the party to any judicial action involving any such decision, and
addition of new ones, under such rules and regulations as may be represented by an attorney employed by the
the Commission may adopt, subject to the approval of the Commission, or when requested by the Commission, by
President of the Philippines: Provided,That the actuarial the Solicitor General or any public prosecutors.
soundness of the reserve fund shall be
"(c) Court Review. - The decision of the Commission upon
guaranteed: Provided, further, That such increases in
any disputed matter may be reviewed both upon the law
benefits shall not require any increase in the rate of
and the facts by the Court of Appeals. For the purpose of
contribution;
such review, the procedure concerning appeals from the
"(3) To establish offices of the SSS to cover as many Regional Trial Court shall be followed as far as practicable
provinces, cities and congressional districts, whenever and and consistent with the purposes of this Act. Appeal from
wherever it may be expedient, necessary and feasible, and a decision of the Commission must be taken within fifteen
to inspect or cause to be inspected periodically such (15) days from notification of such decision. If the decision
offices; of the Commission involves only questions of law, the
same shall be reviewed by the Supreme Court. No appeal
"(4) To enter into agreements or contracts for such service
bond shall be required. The case shall be heard in a
and aid, as may be needed for the proper, efficient and
summary manner, and shall take precedence over all
stable administration of the SSS;
cases, except that in the Supreme Court, criminal cases
"(5) To adopt, from time to time, a budget of expenditures wherein life imprisonment or death has been imposed by
including salaries of personnel, against all funds available the trial court shall take precedence. No appeal shall act as
to the SSS under this Act; a supersedeas or a stay of the order of the Commission
unless the Commission itself, or the Court of Appeals or
"(6) To set up its accounting system and provide the the Supreme Court, shall so order.
necessary personnel therefor;
"(d) Execution of Decisions. - The Commission may, motu
"(7) To require reports, compilations and analyses of proprio or on motion of any interested party, issue a writ
statistical and economic data and to make investigation as
of execution to enforce any of its decisions or awards, "(1) The legal spouse entitled by law to receive support
after it has become final and executory, in the same from the member;
manner as the decision of the Regional Trial Court by
"(2) The legitimate, legitimated or legally adopted, and
directing the city or provincial sheriff or the sheriff whom
illegitimate child who is unmarried, not gainfully
it may appoint to enforce such final decision or execute
employed, and has not reached twenty-one (21) years of
such writ; and any person who shall fail or refuse to
age, or if over twenty-one (21) years of age, he is
comply with such decision, award or writ, after being
congenitally or while still a minor has been permanently
required to do so shall, upon application by the
incapacitated and incapable of self-support, physically or
Commission pursuant to Rule 71 of the Rules of Court, be
mentally; and
punished for contempt.
"(3) The parent who is receiving regular support from the
"SEC. 6. Auditor and Counsel. - (a) The Chairman of the
member.
Commission on Audit shall be the ex-officio Auditor of the
SSS. He or his representative shall check and audit all the "(f) Compensation - All actual remuneration for
accounts, funds and properties of the SSS in the same employment, including the mandated cost-of-living
manner and as frequently as the accounts, funds and allowance, as well as the cash value of any remuneration
properties of the government are checked and audited paid in any medium other than cash except that part of
under existing laws, and he shall have, as far as the remuneration in excess of the maximum salary credit
practicable, the same powers and duties as he has with as provided under Section Eighteen of this Act.
respect to the checking and auditing of public accounts,
funds and properties in general. "(g) Monthly salary credit - The compensation base for
contributions and benefits as indicated in the schedule in
"(b) The Secretary of Justice shall be the ex-officio counsel Section Eighteen of this Act.
of the SSS. He or his representative shall act as legal
adviser and counsel thereof. "(h) Monthly - The period from one end of the last payroll
period of the preceding month to the end of the last
"SEC. 7. Oaths, Witnesses, and Production of Records. - payroll period of the current month if compensation is on
When authorized by the Commission, an official or hourly, daily or weekly basis; if on any other
employee thereof shall have the power to administer oath basis, ‘monthly’ shall mean a period of one (1) month.
and affirmation, take depositions, certify to official acts,
and issue subpoena and subpoena duces tecum to compel "(i) Contribution - The amount paid to the SSS by and on
the attendance of witnesses and the production of books, behalf of the members in accordance with Section
papers, correspondence and other records deemed Eighteen of this Act.
necessary as evidence in connection with any question "(j) Employment - Any service performed by an employee
arising under this Act. Any case of contumacy shall be for his employer except:
dealt with by the Commission in accordance with law.
"(1) Employment purely casual and not for the purpose of
"SEC. 8. Terms Defined. - For purposes of this Act, the occupation or business of the employer;
following terms shall, unless the context indicates
otherwise, have the following meanings: "(2) Service performed on or in connection with an alien
vessel by an employee if he is employed when such vessel
"(a) SSS - The Social Security System created by this Act. is outside the Philippines;
"(b) Commission - The Social Security Commission as "(3) Service performed in the employ of the Philippine
herein created. Government or instrumentality or agency thereof;
"(c) Employer- Any person, natural or juridical, domestic or "(4) Service performed in the employ of a foreign
foreign, who carries on in the Philippines any trade, government or international organization, or their wholly-
business, industry, undertaking, or activity of any kind and owned instrumentality: Provided, however, That this
uses the services of another person who is under his exemption notwithstanding, any foreign government,
orders as regards the employment, except the international organization or their wholly-owned
Government and any of its political subdivisions, branches instrumentality employing workers in the Philippines or
or instrumentalities, including corporations owned or employing Filipinos outside of the Philippines, may enter
controlled by the Government: Provided, That a self- into an agreement with the Philippine Government for the
employed person shall be both employee and employer at inclusion of such employees in the SSS except those
the same time. already covered by their respective civil service retirement
"(d) Employee - Any person who performs services for an systems: Provided, further, That the terms of such
employer in which either or both mental or physical agreement shall conform with the provisions of this Act on
efforts are used and who receives compensation for such coverage and amount of payment of contributions and
services, where there is an employer-employee benefits: Provided, finally, That the provisions of this Act
relationship: Provided, That a self-employed person shall shall be supplementary to any such agreement; and
be both employee and employer at the same time. "(5) Such other services performed by temporary and
"(e) Dependents - The dependents shall be the following: other employees which may be excluded by regulation of
the Commission. Employees of bona fide independent
contractors shall not be deemed employees of the well as those workers enumerated in Section Nine-A
employer engaging the service of said contractors. hereof.
"(k) Beneficiaries - The dependent spouse until he or she "(t) Net earnings - Net income before income taxes plus
remarries, the dependent legitimate, legitimated or legally non-cash charges such as depreciation and depletion
adopted, and illegitimate children, who shall be the appearing in the regular financial statement of the issuing
primary beneficiaries of the member: Provided, That the or assuming institution.
dependent illegitimate children shall be entitled to fifty
"(u) Fixed charges - Recurring expense such as
percent (50%) of the share of the legitimate, legitimated or
amortization of debt discount or rentals for leased
legally adopted children: Provided, further, That in the
properties, including interest on funded and unfunded
absence of the dependent legitimate, legitimated children
debt.
of the member, his/her dependent illegitimate children
shall be entitled to one hundred percent (100%) of the "SEC. 9. Coverage. - (a) Coverage in the SSS shall be
benefits. In their absence, the dependent parents who compulsory upon all employees not over sixty (60) years of
shall be the secondary beneficiaries of the member. In the age and their employers: Provided, That in the case of
absence of all the foregoing, any other person designated domestic helpers, their monthly income shall not be less
by the member as his/her secondary beneficiary. than One thousand pesos (P1,000.00) a month: Provided,
further, That any benefit already earned by the employees
"(l) Contingency - The retirement, death, disability, injury
under private benefit plans existing at the time of the
or sickness and maternity of the member.
approval of this Act shall not be discontinued, reduced or
"(m) Average monthly salary credit - The result obtained otherwise impaired: Provided, further, That private plans
by dividing the sum of the last sixty (60) monthly salary which are existing and in force at the time of compulsory
credits immediately preceding the semester of coverage shall be integrated with the plan of the SSS in
contingency by sixty (60), or the result obtained by such a way where the employer’s contribution to his
dividing the sum of all the monthly salary credits paid prior private plan is more than that required of him in this Act,
to the semester of contingency by the number of monthly he shall pay to the SSS only the contribution required of
contributions paid in the same period, whichever is him and he shall continue his contribution to such private
greater:Provided, That the injury or sickness which caused plan less his contribution to the SSS so that the employer’s
the disability shall be deemed as the permanent disability total contribution to his benefit plan and to the SSS shall
for the purpose of computing the average monthly salary be the same as his contribution to his private benefit plan
credit. before the compulsory coverage: Provided, further, That
any changes, adjustments, modifications, eliminations or
"(n) Average daily salary credit- The result obtained by
improvements in the benefits to be available under the
dividing the sum of the six (6) highest monthly salary
remaining private plan, which may be necessary to adopt
credits in the twelve-month period immediately preceding
by reason of the reduced contributions thereto as a result
the semester of contingency by one hundred eighty (180).
of the integration, shall be subject to agreements between
"(o) Semester - A period of two (2) consecutive quarters the employers and employees concerned: Provided,
ending in the quarter of contingency. further, That the private benefit plan which the employer
shall continue for his employees shall remain under the
"(p) Quarter - A period of three (3) consecutive calendar employer’s management and control unless there is an
months ending on the last day of March, June, September existing agreement to the contrary: Provided, finally, That
and December. nothing in this Act shall be construed as a limitation on the
"(q) Credited years of service - For a member covered prior right of employers and employees to agree on and adopt
to January nineteen hundred and eighty five (1985) minus benefits which are over and above those provided under
the calendar year of coverage plus the number of calendar this Act.
years in which six (6) or more contributions have been "(b) Spouses who devote full time to managing the
paid from January nineteen hundred and eighty five (1985) household and family affairs, unless they are also engaged
up to the calendar year containing the semester prior to in other vocation or employment which is subject to
the contingency. For a member covered in or after January mandatory coverage, may be covered by the SSS on a
nineteen hundred and eighty five (1985), the number of voluntary basis.
calendar years in which six (6) or more contributions have
been paid from the year of coverage up to the calendar "(c) Filipinos recruited by foreign-based employers for
year containing the semester prior to the employment abroad may be covered by the SSS on a
contingency: Provided, That the Commission may provide voluntary basis.
for a different number of contributions in a calendar year
"SEC. 9-A. Compulsory Coverage of the Self-Employed. -
for it to be considered as a credited year of service.
Coverage in the SSS shall also be compulsory upon such
"(r) Member - The worker who is covered under Section self-employed persons as may be determined by the
Nine and Section Nine-A of this Act. Commission under such rules and regulations as it may
prescribe, including but not limited to the following:
"(s) Self-employed - Any person whose income is not
derived from employment, as defined under this Act, as "1. All self-employed professionals;
"2. Partners and single proprietors of businesses; pesos (P2,400.00) for those with twenty (20) credited
years of service.
"3. Actors and actresses, directors, scriptwriters and news
correspondents who do not fall within the definition of the "SEC. 12-A. Dependents’ Pension. - Where monthly
term "employee" in Section 8 (d) of this Act; pension is payable on account of death, permanent total
disability or retirement, dependents’ pension equivalent to
"4. Professional athletes, coaches, trainers and jockeys;
ten percent (10%) of the monthly pension or Two hundred
and
fifty pesos (P250.00), whichever is higher, shall also be
"5. Individual farmers and fishermen. paid for each dependent child conceived on or before the
date of the contingency but not exceeding five (5),
"Unless otherwise specified herein, all provisions of this beginning with the youngest and without
Act applicable to covered employees shall also be substitution: Provided, That where there are legitimate or
applicable to the covered self-employed persons. illegitimate children, the former shall be preferred.
"SEC. 10. Effective Date of Coverage. - Compulsory SEC. 12-B. Retirement Benefits. - (a) A member who has
coverage of the employer shall take effect on the first day paid at least one hundred twenty (120) monthly
of his operation and that of the employee on the day of his contributions prior to the semester of retirement and
employment: Provided, That the compulsory coverage of who: (1) has reached the age of sixty (60) years and is
the self-employed person shall take effect upon his already separated from employment or has ceased to be
registration with the SSS. self-employed; or (2) has reached the age of sixty-five (65)
"SEC. 11. Effect of Separation from Employment. - When years, shall be entitled for as long as he lives to the
an employee under compulsory coverage is separated monthly pension: Provided, That he shall have the option
from employment, his employer’s contribution on his to receive his first eighteen (18) monthly pensions in lump
account and his obligation to pay contributions arising sum discounted at a preferential rate of interest to be
from that employment shall cease at the end of the month determined by the SSS.
of separation, but said employee shall be credited with all "(b) A covered member who is sixty (60) years old at
contributions paid on his behalf and entitled to benefits retirement and who does not qualify for pension benefits
according to the provisions of this Act. He may, however, under paragraph (a) above, shall be entitled to a lump sum
continue to pay the total contributions to maintain his benefit equal to the total contributions paid by him and on
right to full benefit. his behalf: Provided, That he is separated from
"SEC. 11-A. Effect of Interruption of Business or employment and is not continuing payment of
Professional Income. - If the self-employed realizes no contributions to the SSS on his own.
income in any given month, he shall not be required to pay "(c) The monthly pension shall be suspended upon the
contributions for that month. He may, however, be reemployment or resumption of self-employment of a
allowed to continue paying contributions under the same retired member who is less than sixty-five (65) years old.
rules and regulations applicable to a separated employee He shall again be subject to Section Eighteen and his
member: Provided, That no retroactive payment of employer to Section Nineteen of this Act.
contributions shall be allowed other than as prescribed
under Section Twenty-two-A hereof. "(d) Upon the death of the retired member, his primary
beneficiaries as of the date of his retirement shall be
"SEC. 12. Monthly Pension. - (a) The monthly pension shall entitled to receive the monthly pension: Provided, That if
be the highest of the following amounts: he has no primary beneficiaries and he dies within sixty
"(1) The sum of the following: (60) months from the start of his monthly pension, his
secondary beneficiaries shall be entitled to a lump sum
"(i) Three hundred pesos (P300.00; plus benefit equivalent to the total monthly pensions
corresponding to the balance of the five-year guaranteed
"(ii) Twenty percent (20%) of the average monthly salary
period, excluding the dependents’ pension.
credit; plus
"(e) The monthly pension of a member who retires after
"(iii) Two percent (2%) of the average monthly salary credit
reaching age sixty (60) shall be the higher of either: (1) the
for each credited year of service in excess of ten (10)
monthly pension computed at the earliest time he could
years; or
have retired had he been separated from employment or
"(2) Forth percent (40%) of the average monthly salary ceased to be self-employed plus all adjustments thereto;
credit; or or (2) the monthly pension computed at the time when he
actually retires.
"(3) One thousand pesos (P1,000.00): Provided, That the
monthly pension shall in no case be paid for an aggregate "SEC. 13. Death Benefits. - Upon the death of a member
amount of less than sixty (60) months. who has paid at least thirty-six (36) monthly contributions
prior to the semester of death, his primary beneficiaries
"(b) Notwithstanding the preceding paragraph, the shall be entitled to the monthly pension: Provided, That if
minimum pension shall be One thousand two hundred he has no primary beneficiaries, his secondary
pesos (P1,200.00) for members with at least ten (10) beneficiaries shall be entitled to a lump sum benefit
credited years of service and Two thousand four hundred equivalent to thirty-six (36) times the monthly pension. If
he has not paid the required thirty-six (36) monthly payable not longer than the period designated in the
contributions, his primary or secondary beneficiaries shall following schedule:
be entitled to a lump sum benefit equivalent to the
COMPLETE
monthly pension times the number of monthly
AND PERMANENT NUMBER OF
contributions paid to the SSS or twelve (12) times the
LOSS OF USE OF MONTHS
monthly pension, whichever is higher.
One thumb 10
"SEC. 13-A. Permanent Disability Benefits. - (a) Upon the
One index finger 8
permanent total disability of a member who has paid at
One middle finger 6
least thirty-six (36) monthly contributions prior to the
One ring finger 5
semester of disability, he shall be entitled to the monthly
One little finger 3
pension: Provided, That if he has not paid the required
One big toe 6
thirty-six (36) monthly contributions, he shall be entitled
One hand 39
to a lump sum benefit equivalent to the monthly pension
One arm 50
times the number of monthly contributions paid to the SSS
One foot 31
or twelve (12) times the monthly pension, whichever is
One leg 46
higher. A member who (1) has received a lump sum
One ear 10
benefit; and (2) is reemployed or has resumed self-
Both ears 20
employment not earlier than one (1) year from the date of
Hearing of one ear 10
his disability shall again be subject to compulsory coverage
Hearing of both ears 50
and shall be considered a new member.
Sight of one eye 25
"(b) The monthly pension and dependents’ pension shall
"(g) The percentage degree of disability which is
be suspended upon the reemployment or resumption of
equivalent to the ratio that the designated number of
self-employment or the recovery of the disabled member
months of compensability bears to seventy-five (75),
from his permanent total disability or his failure to present
rounded to the next higher integer, shall not be additive
himself for examination at least once a year upon notice
for distinct, separate and unrelated permanent partial
by the SSS.
disabilities, but shall be additive for deteriorating and
"(c) Upon the death of the permanent total disability related permanent partial disabilities to a maximum of one
pensioner, his primary beneficiaries as of the date of hundred percent (100%), in which case, the member shall
disability shall be entitled to receive the monthly be deemed as permanently totally disabled.
pension: Provided, That if he has no primary beneficiaries
"(h) In case of permanent partial disability, the monthly
and he dies within sixty (60) months from the start of his
pension benefit shall be given in lump sum if it is payable
monthly pension, his secondary beneficiaries shall be
for less than twelve (12) months.
entitled to a lump sum benefit equivalent to the total
monthly pensions corresponding to the balance of the "(i) For the purpose of adjudicating retirement, death and
five-year guaranteed period excluding the dependents’ permanent total disability pension benefits, contributions
pension. shall be deemed paid for the months during which the
member received partial disability pension: Provided, That
"(d) The following disabilities shall be deemed permanent
such contributions shall be based on his last contribution
total:
prior to his disability.
"1. Complete loss of sight of both eyes;
"(j) Should a member who is on partial disability pension
"2. Loss of two limbs at or above the ankle or wrists; retire or die, his disability pension shall cease upon his
retirement or death.
"3. Permanent complete paralysis of two limbs;
"SEC. 13-B. Funeral Benefit. - A funeral grant equivalent to
"4. Brain injury resulting to incurable imbecility or insanity;
Twelve thousand pesos (P12,000.00) shall be paid, in cash
and
or in kind, to help defray the cost of funeral expenses upon
"5. Such cases as determined and approved by the SSS. the death of a member, including permanently totally
disabled member or retiree.
"(e) If the disability is permanent partial, and such
disability occurs before thirty-six (36) monthly "SEC. 14. Sickness Benefit. - (a) A member who has paid at
contributions have been paid prior to the semester of least three (3) monthly contributions in the twelve-month
disability, the benefit shall be such percentage of the lump period immediately preceding the semester of sickness or
sum benefit described in the preceding paragraph with injury and is confined therefor for more than three (3)
due regard to the degree of disability as the Commission days in a hospital or elsewhere with the approval of the
may determine. SSS, shall, for each day of compensable confinement or a
fraction thereof, be paid by his employer, or the SSS, if
"(f) If the disability is permanent total and such disability such person is unemployed or self-employed, a daily
occurs after thirty-six (36) monthly contributions have sickness benefit equivalent to ninety percent (90%) of his
been paid prior to the semester of disability, the benefit average daily salary credit, subject to the following
shall be the monthly pension for permanent total disability conditions:
"(1) In no case shall the daily sickness benefit be paid employer shall have no right to recover the corresponding
longer than one hundred twenty (120) days in one (1) daily allowance he advanced to the employee member as
calendar year, nor shall any unused portion of the one required in this section.
hundred twenty (120) days of sickness benefit granted
"(e)The claim of reimbursement shall be adjudicated by
under this section be carried forward and added to the
the SSS within a period of two (2) months from receipt
total number of compensable days allowable in the
thereof: Provided, That should no payment be received by
subsequent year;
the employer within one (1) month after the period
"(2) The daily sickness benefit shall not be paid for more prescribed herein for adjudication, the reimbursement
than two hundred forty (240) days on account of the same shall thereafter earn simple interest of one percent (1%)
confinement; and per month until paid.
"(3) The employee member shall notify his employer of the "(f) The provisions regarding the notification required of
fact of his sickness or injury within five (5) calendar days the member and the employer as well as the period within
after the start of his confinement unless such confinement which the claim for benefit or reimbursement may be filed
is in a hospital or the employee became sick or was injured shall apply to all claims filed with the SSS.
while working or within the premises of the employer in
"SEC. 14-A. Maternity Leave Benefit. - A female member
which case, notification to the employer is
who has paid at least three (3) monthly contributions in
necessary: Provided, That if the member is unemployed or
the twelve-month period immediately preceding the
self-employed, he shall directly notify the SSS of his
semester of her childbirth or miscarriage shall be paid a
confinement within five (5) calendar days after the start
daily maternity benefit equivalent to one hundred percent
thereof unless such confinement is in a hospital in which
(100%) of her average daily salary credit for sixty (60) days
case notification is also not necessary: Provided,
or seventy-eight (78) days in case of caesarian delivery,
further, That in cases where notification is necessary, the
subject to the following conditions:
confinement shall be deemed to have started not earlier
than the fifth day immediately preceding the date of "(a) That the employee shall have notified her employer of
notification. her pregnancy and the probable date of her childbirth,
which notice shall be transmitted to the SSS in accordance
"(b) The compensable confinement shall begin on the first
with the rules and regulations it may provide;
day of sickness, and the payment of such allowances shall
be promptly made by the employer every regular payday "(b) The full payment shall be advanced by the employer
or on the fifteenth and last day of each month, and within thirty (30) days from the filing of the maternity
similarly in the case of direct payment by the SSS, for as leave application;
long as such allowances are due and
payable: Provided, That such allowance shall begin only "(c) That payment of daily maternity benefits shall be a bar
after all sick leaves of absence with full pay to the credit of to the recovery of sickness benefits provided by this Act
the employee member shall have been exhausted. for the same period for which daily maternity benefits
have been received;
"(c) One hundred percent (100%) of the daily benefits
provided in the preceding paragraph shall be reimbursed "(d) That the maternity benefits provided under this
by the SSS to said employer upon receipt of satisfactory section shall be paid only for the first four (4) deliveries or
proof of such payment and legality thereof: Provided, That miscarriages;
the employer has notified the SSS of the confinement "(e) That the SSS shall immediately reimburse the
within five (5) calendar days after receipt of the employer of one hundred percent (100%) of the amount of
notification from the employee member: Provided, maternity benefits advanced to the employee by the
further, That if the notification to the SSS is made by the employer upon receipt of satisfactory proof of such
employer beyond five (5) calendar days after receipt of the payment and legality thereof; and
notification from the employee member, said employer
shall be reimbursed only for each day of confinement "(f) That if an employee member should give birth or
starting from the tenth calendar day immediately suffer miscarriage without the required contributions
preceding the date of notification to the SSS: Provided, having been remitted for her by her employer to the SSS,
finally, That the SSS shall reimburse the employer or pay or without the latter having been previously notified by
the unemployed member only for confinement within the the employer of the time of the pregnancy, the employer
one-year period immediately preceding the date the claim shall pay to the SSS damages equivalent to the benefits
for benefit or reimbursement is received by the SSS, which said employee member would otherwise have been
except confinement in a hospital in which case the claim entitled to.
for benefit or reimbursement must be filed within one (1)
"SEC. 15. Non-Transferability of Benefits. - The SSS shall
year from the last day of confinement.
promptly pay the benefits provided in this Act to such
"(d) Where the employee member has given the required persons as may be entitled thereto in accordance with the
notification but the employer fails to notify the SSS of the provisions of this Act: Provided, That the SSS shall pay the
confinement or to file the claim for reimbursement within retirement benefits on the day of contingency to qualified
the period prescribed in this section resulting in the members who have submitted the necessary documents
reduction of the benefit or denial of the claim, such at least six (6) months before: Provided, further, That the
beneficiary who is a national of a foreign country which (P500.00) nor more than Five thousand pesos (P5,000.00),
does not extend benefits to a Filipino beneficiary residing or imprisonment for not less than six (6) months nor more
in the Philippines, or which is not recognized by the than one (1) year, or both, at the discretion of the court.
Philippines, shall not be entitled to receive any benefit
"SEC. 18. Employee’s Contributions. - (a) Beginning as of
under this Act: Provided, further, That notwithstanding the
the last day of the calendar month when an employee’s
foregoing, where the best interest of the SSS will be
compulsory coverage takes effect and every month
served, the Commission may direct payments without
thereafter during his employment, the employer shall
regard to nationality or country of residence: Provided,
deduct and withhold from such employee’s monthly
further, That if the recipient is a minor or a person
salary, wage, compensation or earnings, the employee’s
incapable of administering his own affairs, the Commission
contribution in an amount corresponding to his salary,
shall appoint a representative under such terms and
wage, compensation or earnings during the month in
conditions as it may deem proper: Provided, further, That
accordance with the following schedule:
such appointment shall not be necessary in case the
recipient is under the custody of or living with the parents SALARY RANGE OF MONTHLY MONTHLY
or spouse of the member in which case the benefits shall CONTRIBUTION
be paid to such parents or spouse, as representative payee BRACKET COMPENSATION SALARY
of the recipient. Such benefits are not transferable and no CREDIT EMPLOYER EMPLOYEE TOTAL
power of attorney or other document executed by those
entitled thereto in favor of any agent, attorney or any I 1,000.00 -
other person for the collection thereof on their behalf 1,249.99 1000 50.70 33.30 84.00
shall be recognized, except when they are physically II 1,250.00 -
unable to collect personally such benefits:Provided, 1,749.99 1500 76.00 50.00 126.00
further, That in case of death benefits, if no beneficiary III 1,750.00 -
qualifies under this Act, said benefits shall be paid to the 2,249.99 2000 101.30 66.70 168.00
legal heirs in accordance with the law of succession. IV 2,250.00 -
2,749.99 2500 126.70 83.30 210.00
"SEC. 16. Exemption from Tax, Legal Process and Lien. -- All V 2,750.00 -
laws to the contrary notwithstanding, the SSS and all its 3,249.99 3000 152.00 100.00 252.00
assets and properties, all contributions collected and all VI 3,250.00 -
accruals thereto and income or investment earnings 3,749.99 3500 177.30 116.70 294.00
therefrom as well as all supplies, equipment, papers or VII 3,750.00 -
documents shall be exempt from any tax, assessment, fee, 4,249.99 4000 202.70 133.30 336.00
charge, or customs or import duty; and all benefit VIII 4,250.00 -
payments made by the SSS shall likewise be exempt from 4,749.99 4500 228.00 150.00 378.00
all kinds of taxes, fees or charges, and shall not liable to IX 4,750.00 -
attachments, garnishments, levy or seizure by or under 5,249.99 5000 253.30 166.70 420.00
any legal or equitable process whatsoever, either before X 5,250.00 -
or after receipt by the person or persons entitled thereto, 5,749.99 5500 278.70 183.70 462.40
except to pay any debt of the member to the SSS. No tax XI 5,750.00 -
measure of whatever nature enacted shall apply to the 6,249.99 6000 304.00 200.00 504.00
SSS, unless it expressly revokes the declared policy of the XII 6,250.00 -
State in Section 2 hereof granting tax-exemption to the 6,749.99 6500 329.30 216.78 546.00
SSS. Any tax assessment imposed against the SSS shall be XIII 6,750.00 -
null and void. (As amended by Sec. 9, P. D. No. 24, S. 1972; 7,249.99 7000 354.70 233.30 588.00
and Sec. 14, P. D. No. 735, S. 1975). XIV 7,250.00 -
7,749.99 7500 380.00 250.00 630.00
"SEC. 17. Fee of Agents, Attorneys, Etc. - No agent,
XV 7,750.00 -
attorney or other person in charge of the preparation,
8.249.99 8000 403.30 266.70 672.00
filing or pursuing any claim for benefit under this Act shall
XVI 8,250.00 -
demand or charge for his services any fee, and any
8,749.99 8500 430.70 283.30 714.00
stipulation to the contrary shall be null and void. The
XVII 8,750.00 -
retention or deduction of any amount from any benefit
OVER 9000 456.00 300.00 756.00
granted under this Act for the payment of fees for such
services is prohibited: Provided, however, That any "The foregoing schedule of contribution shall also apply to
member of the Philippine Bar who appears as counsel in self-employed and voluntary members.
any case heard by the Commission shall be entitled to
attorneys’ fees not exceeding ten percent (10%) of the "The maximum monthly salary credit shall be Nine
benefits awarded by the Commission, which fees shall not thousand pesos (P9,000.00) effective January Nineteen
be payable before the actual payment of the benefits, and hundred and ninety six (1996); Provided, That it shall be
any stipulation to the contrary shall be null and void. increased by One thousand pesos (P1,000.00) every year
thereafter until it shall have reached Twelve thousand
"Any violation of the provisions of this Section shall be pesos (P12,000.00) by Nineteen hundred and ninety nine
punished by a fine of not less than Five hundred pesos (1999): Provided, further, That the minimum and
maximum monthly salary credits as well as the rate of remitted to the SSS within the first ten (10) days of each
contributions may be fixed from time to time by the calendar month following the month for which they are
Commission through rules and regulations taking into applicable or within such time as the Commission may
consideration actuarial calculations and rate of benefits, prescribe. Every employer required to deduct and to remit
subject to the approval of the President of the Philippines. such contributions shall be liable for their payment and if
any contribution is not paid to the SSS as herein
"SEC. 19. Employer’s Contributions. - (a) Beginning as of
prescribed, he shall pay besides the contribution a penalty
the last day of the month when an employee’s compulsory
thereon of three percent (3%) per month from the date
coverage takes effect and every month thereafter during
the contribution falls due until paid. If deemed expedient
his employment, his employer shall pay, with respect to
and advisable by the Commission, the collection and
such covered employee, the employer’s contribution in
remittance of contributions shall be made quarterly or
accordance with the schedule indicated in Section
semi-annually in advance, the contributions payable by the
Eighteen of this Act. Notwithstanding any contract to the
employees to be advanced by their respective
contrary, an employer shall not deduct, directly or
employers: Provided, That upon separation of an
indirectly, from the compensation of his employees
employee, any contribution so paid in advance but not due
covered by the SSS or otherwise recover from them the
shall be credited or refunded to his employer.
employer’s contributions with respect to such employees.
"(b) The contributions payable under this Act in cases
"(b) The remittance of such contributions by the employer
where an employer refuses or neglects to pay the same
shall be supported by a quarterly collection list to be
shall be collected by the SSS in the same manner as taxes
submitted to the SSS at the end of each calendar quarter
are made collectible under the National Internal Revenue
indicating the correct ID number of the employer, the
Code, as amended. Failure or refusal of the employer to
correct names and the SSS numbers of the employees and
pay or remit the contributions herein prescribed shall not
the total contributions paid for their account during the
prejudice the right of the covered employee to the
quarter.
benefits of the coverage.
"SEC. 19-A. Contributions of the Self-Employed Member. -
"The right to institute the necessary action against the
The contributions to the SSS of the self-employed member
employer may be commenced within twenty (20) years
shall be determined in accordance with Section Eighteen
from the time the delinquency is known or the assessment
of this Act: Provided, That the monthly earnings declared
is made by the SSS, or from the time the benefit accrues,
by the self-employed member at the time of his
as the case may be.
registration with the SSS shall be considered as his
monthly compensation and he shall pay both the employer "(c) Should any person, natural or juridical, default in any
and the employee contributions: Provided, further, That payment of contributions, the Commission may also
the contributions of self-employed persons earning One collect the same in either of the following ways:
thousand pesos (P1,000.00) monthly or below may be
"1. By an action in court, which shall hear and dispose of
reduced by the Commission.
the case in preference to any other civil action; or
"The monthly earnings declared by the self-employed
"2. By issuing a warrant to the Sheriff of any province or
member at the time of his registration shall remain the
city commanding him to levy upon and sell any real and
basis of his monthly salary credit, unless he makes another
personal property of the debtor. The Sheriff’s sale by
declaration of his monthly earnings, in which case such
virtue of said warrant shall be governed by the same
latest declaration becomes the new basis of his monthly
procedure prescribed for executions against property
salary credit.
upon judgments by a court of record.
"SEC. 20. Government Contribution. - As the contribution
"(d) The last complete record of monthly contributions
of the Government to the operation of the SSS, Congress
paid by the employer or the average of the monthly
shall annually appropriate out of any funds in the National
contributions paid during the past three (3) years as of the
Treasury not otherwise appropriated, the necessary sum
date of filing of the action for collection shall be presumed
or sums to meet the estimated expenses of the SSS for
to be the monthly contributions payable by and due from
each ensuing year. In addition to this contribution,
the employer to the SSS for each of the unpaid month,
Congress shall appropriate from time to time such sum or
unless contradicted and overcome by other
sums as may be needed to assure the maintenance of an
evidence: Provided, That the SSS shall not be barred from
adequate working balance of the funds of the SSS as
determining and collecting the true and correct
disclosed by suitable periodic actuarial studies to be made
contributions due the SSS even after full payment
of the operations of the SSS.
pursuant to this paragraph, nor shall the employer be
"SEC. 21. Government Guarantee. -- The benefits relieved of his liability under Section Twenty-eight of this
prescribed in this Act shall not be diminished and to Act.
guarantee said benefits the Government of the Republic of
"SEC. 22-A. Remittance of Contributions of Self-Employed
the Philippines accepts general responsibility for the
Member. - Self-employed members shall remit their
solvency of the SSS.
monthly contributions quarterly on such dates and
"SEC. 22. Remittance of Contributions. -- (a) The schedules as the Commission may specify through rules
contributions imposed in the preceding Section shall be and regulations: Provided, That no retroactive payment of
contributions shall be allowed, except as provided in this by the Court, shall not be divulged without the consent of
Section. the SSS President or any official of the SSS duly authorized
by him, shall be presumed correct as to the data and other
"SEC. 23. Method of Collection and Payment. - The SSS
matters stated therein, unless the necessary corrections to
shall require a complete and proper collection and
such records and reports have been properly made by the
payment of contributions and proper identification of the
parties concerned before the right to the benefit being
employer and the employee. Payment may be made in
claimed accrues, and shall be made the basis for the
cash, checks, stamps, coupons, tickets, or other
adjudication of the claim. If as a result of such adjudication
reasonable devices that the Commission may adopt.
the SSS in good faith pays a monthly pension to a
"SEC. 24. Employment Records and Reports. - (a) Each beneficiary who is inferior in right to another beneficiary
employer shall immediately report to the SSS the names, or with whom another beneficiary is entitled to share,
ages, civil status, occupations, salaries and dependents of such payments shall discharge the SSS from liability unless
all his employees who are subject to compulsory and until such other beneficiary notifies the SSS of his
coverage: Provided, That if an employee subject to claim prior to the payments.
compulsory coverage should die or become sick or
"(d) Every employer shall keep true and accurate work
disabled or reach the age of sixty (60) without the SSS
records for such period and containing such information as
having previously received any report or written
the Commission may prescribe, in addition to an "Annual
communication about him from his employer, the said
Register of New and Separated Employees" which shall be
employer shall pay to the SSS damages equivalent to the
secured from the SSS wherein the employer shall enter on
benefits to which said employee member would have
the first day of employment or on the effective date of
been entitled had his name been reported on time by the
separation, the names of the persons employed or
employer to the SSS, except that in case of pension
separated from employment, their SSS numbers, and such
benefits, the employer shall be liable to pay the SSS
other data that the Commission may require and said
damages equivalent to the accumulated pension due as of
annual register shall be submitted to the SSS in the month
the date of settlement of the claim or to the five (5) years’
of January of each year. Such records shall be open for
pension, including dependents’ pension: Provided,
inspection by the SSS or its authorized representatives
further, That if the contingency occurs within thirty (30)
quarterly or as often as the SSS may require.
days from the date of employment, the employer shall be
relieved of his liability for damages: Provided, further, That "The SSS may also require each employer to submit, with
any person or entity engaging the services of an respect to the persons in his employ, reports needed for
independent contractor shall be subsidiarily liable with the effective administration of this Act.
such contractor for any civil liability incurred by the latter
"(e) Each employer shall require, as a condition to
under this Act: Provided, finally, That the same person or
employment, the presentation of a registration number
entity engaging the services of an independent contractor
secured by the prospective employee from the SSS in
shall require such contractor to post a surety bond to
accordance with such procedure as the SSS may
guarantee the payment of the worker’s benefits.
adopt: Provided, That in case of employees who have been
"(b) Should the employer misrepresent the true date of assigned registration numbers by virtue of a previous
employment of the employee member or remit to the SSS employment, such numbers originally assigned to them
contributions which are less than those required in this Act should be used for purposes of this Section: Provided,
or fail to remit any contribution due prior to the date of further, That the issuance of such registration numbers by
contingency, resulting in a reduction of benefits, the the SSS shall not exempt the employer from complying
employer shall pay to the SSS damages equivalent to the with the provisions of paragraph (a) of this Section.
difference between the amount of benefit to which the
"(f) Notwithstanding any law to the contrary, microfilm, or
employee member or his beneficiary is entitled had the
non-erasable optical disk and other similar archival media
proper contributions been remitted to the SSS and the
copies of original SSS records and reports, duly certified by
amount payable on the basis of contributions actually
the official custodian thereof, shall have the same
remitted: Provided, That if the employee member or his
evidentiary value as the originals and be admissible as
beneficiary is entitled to pension benefits, damages shall
evidence in all legal proceedings.
be equivalent to the accumulated pension due as of the
date of settlement of the claim or to the five (5) years’ "(g) Notwithstanding any law to the contrary, local
pension, whichever is higher, including dependents’ government units shall, prior to issuing any annual
pension. business license or permit, require submission of
certificate of SSS coverage and compliance with the
"In addition to the liability mentioned in the preceding
provisions of this Act: Provided, That the certification or
paragraphs (a) and (b) hereof, the employer shall also be
clearance shall be issued by the SSS within five (5) working
liable for the corresponding unremitted contributions and
days from receipt of the request.
penalties thereon.
"SEC. 24-A. Report and Registration of the Self-Employed
"(c) The records and reports duly accomplished and
Member. - Each covered self-employed person shall,
submitted to the SSS by the employer or the member, as
within thirty (30) days from the first day he started the
the case may be, shall be kept confidential by the SSS
practice of his profession or business operations register
except in compliance with a subpoena duces tecum issued
and report to the SSS his name, age, civil status, and
occupation, average monthly net income and his "(d) In bonds, securities, promissory notes or other
dependents. evidence of indebtedness of any bank doing business in
the Philippines and in good standing with the Bangko
"SEC. 25. Deposits and Disbursements. - All money paid to
Sentral ng Pilipinas to finance loans to private corporations
or collected by the SSS every year under this Act, and all
doing business in the Philippines, including schools,
accruals thereto shall be deposited, administered and
hospitals, small-and-medium scale industries, cooperatives
disbursed in the same manner and under the same
and non-governmental organizations, in which case the
conditions and requirements as provided by law for other
collaterals or securities shall be assigned to the SSS under
public special funds: Provided, That not more than twelve
such terms and conditions as the Commission may
percent (12%) of the total yearly contributions plus three
prescribe: Provided, That in the case of bank deposits, they
percent (3%) of other revenues shall be disbursed for
shall not exceed at any time the unimpaired capital and
operational expenses such as salaries and wages, supplies
surplus or total private deposits of the depository bank,
and materials, depreciation and the maintenance of
whichever is smaller: Provided, further, That said bank
offices of the SSS: Provided, further, That if the expenses
shall first have been designated as a depository for this
in any year are less than the maximum amount
purpose by the Monetary Board of the Bangko Sentral ng
permissible, the difference shall not be availed of as
Pilipinas: Provided, finally, That such investments shall not
additional expenses in the following years.
exceed forty percent (40%) of the Investment Reserve
"SEC. 26. Investment of Reserve Funds. - All revenues of Fund;
the SSS that are not needed to meet the current
"(e) In bonds, securities, promissory notes or other
administrative and operational expenses incidental to the
evidence of indebtedness of shelter agencies of the
carrying out of this Act shall be accumulated in a fund to
National Government or financial intermediaries to
be known as the "Reserve Fund." Such portions of the
finance housing loans of members; and in long-term direct
Reserve Fund as are not needed to meet the current
individual or group housing loans giving priority to the low-
benefit obligations thereof shall be known as
income groups, up to a maximum of ninety percent (90%)
the "Investment Reserve Fund" which the Commission
of the appraised value of the properties to be mortgaged
shall manage and invest with the skill, care, prudence and
by the borrowers; and
diligence necessary under the circumstances then
prevailing that a prudent man acting in like capacity and "In short and medium term loans to members such as
familiar with such matters would exercise in the conduct salary, educational, livelihood, marital, calamity and
of an enterprise of a like character and with similar aims. emergency loans: Provided, That not more than thirty five
Pursuant thereto, and in line with the basic principles of percent (35%) of the Investment Reserve Fund at any time
safety, good yield and liquidity, the Commission shall shall be invested for housing purposes: Provided,
invest the funds to earn an annual income not less than further, That not more than ten percent (10%) of the
the average rates of treasury bills or any other acceptable Investment Reserve Fund shall be invested in short and
market yield indicator in any or in all of the following: medium term loans;
"(a) In bonds, securities, promissory notes or other "(f) In bonds, securities, promissory notes or other
evidence of indebtedness of the Government of the evidence of indebtedness of educational or medical
Philippines, or in bonds, securities, promissory notes or institutions to finance the construction, improvement and
other evidence of indebtedness to which the full faith, maintenance of schools and hospitals and their equipment
credit and unconditional guarantee of the Government of and facilities: Provided, That such investments shall not
the Philippines is pledged; exceed ten percent (10%) of the Investment Reserve Fund;
"(b) In bonds, securities, promissory notes or other "(g) In real estate property, including shares of stocks
evidence of indebtedness of the Government of the involving real estate property, and investment secured by
Philippines, or any agencies or instrumentalities to finance first mortgages on real estate or other collaterals
domestic infrastructure projects such as roads, bridges, acceptable to the SSS: Provided, That such projects and
ports, telecommunications, and other similar investments shall, in the determination of the
projects: Provided, That the instruments issued by an Commission, redound to the benefit of the SSS, its
agency or instrumentality of the government shall be members, as well as the general public: Provided,
guaranteed by the Government of the Philippines or any further, That investment in real estate property, including
government financial institution or acceptable multilateral shares of stocks involving real estate property shall not
agency: Provided, further, That the SSS shall have priority exceed five percent (5%) of the Investment Reserve
over the revenues of the projects: Provided, finally, That Fund: Provided, finally, That investments in other income
such investments shall not exceed thirty percent (30%) of earning projects and investments secured by first
the Investment Reserve Fund; mortgages or other collaterals shall not exceed twenty five
percent (25%) of the Investment Reserve Fund;
"(c) In bonds, securities, promissory notes or other
evidence of indebtedness of government financial "(h) In bonds, debentures, securities, promissory notes or
institutions or government corporations with acceptable other evidence of indebtedness of any prime corporation
credit or guarantee: Provided, That such investments shall or multilateral institutions to finance domestic
not exceed thirty percent (30%) of the Investment Reserve projects: Provided, That the issuing or assuming entity or
Fund; its predecessors shall not have defaulted in the payment
of interest on any of its securities and that during each of Government or to any of its agencies or instrumentalities,
any three (3) including the last two (2) of the five (5) fiscal including government-owned or controlled corporations,
years next preceding the date of acquisition by the SSS of except as may be allowed under this Act: Provided, That
such bonds, debentures or other evidence of no portion of the Investment Reserve Fund shall be
indebtedness, the net earnings of the issuing or assuming invested for any purpose or in any instrument, institution
institution available for its fixed charges, as defined in this or industry over and above the prescribed cumulative
Act, shall have been not less than one and one-quarter ceilings as follows:
times the total of its fixed charges for such year: Provided,
40% in private securities
further, That such investments shall not exceed thirty
percent (30%) of the Investment Reserve Fund; 35% in housing
"(i) In preferred or common shares of stocks listed or 30% in real estate related investments
about to be listed in the stock exchange or options or
warrants to such stocks or, subject to prior approval of the 10% in short and medium-term member loans
Bangko Sentral ng Pilipinas, such other risk management 30% in government financial institutions and corporations
instruments of any prime or solvent corporation or
financial institution created or existing under the laws of 30% in infrastructure projects
the Philippines with proven track record of profitability
15% in any particular industry
over the last three (3) years and payment of dividends at
least once over the same period: Provided, That such 7.5% in foreign-currency denominated investments
investments shall not exceed thirty percent (30%) of the
Investment Reserve Fund; "SEC. 26-A. Fund Managers. - As part of its investment
operations, the SSS may appoint local or, in the absence
"(j) In domestic or foreign mutual funds in existence for at thereof, foreign fund managers to manage the Investment
least three (3) years; Provided, That such investments shall Reserve Fund, as it may deem appropriate.
not exceed twenty percent (20%) of the Investment
Reserve Fund: Provided, further, That investments in "SEC. 26-B. Mortgagor Insurance Account. - (a) As part of
foreign mutual funds shall not exceed one percent (1%) of its investment operations, the SSS shall act as insurer of all
the Investment Reserve Fund in the first year which shall or part of its interest on SSS properties mortgaged to the
be increased by one percent (1%) for each succeeding SSS, or lives of mortgagors whose properties are
year, but in no case shall it exceed seven and one-half mortgaged to the SSS. For this purpose, the SSS shall
percent (7.5%) of the Investment Reserve Fund; establish a separate account to be known as the
"Mortgagors’ Insurance Account." All amounts received by
"(k) In foreign currency deposits or triple "A" foreign the SSS in connection with the aforesaid insurance
currency denominated debts, prime and non-speculative operations shall be placed in the Mortgagors’ Insurance
equities, and other Bangko Sentral ng Pilipinas approved Account. The assets and liabilities of the Mortgagors’
financial instruments or other assets issued in accordance Insurance Account shall at all times be clearly identifiable
with the existing laws of the countries where such financial and distinguishable from the assets and liabilities in all
instruments are issued: Provided, That these instruments other accounts of the SSS. Notwithstanding any provision
or assets are listed in bourses of the respective countries of law to the contrary, the assets held in the Mortgagors’
where these instruments or assets are issued: Provided, Insurance Account shall not be chargeable with the
further, That the issuing company has proven track of liabilities arising out of any other business the SSS may
record of profitability over the last three (3) years and a conduct but shall be held and applied exclusively for the
record of regular dividend pay-out over the same benefit of the owners or beneficiaries of the insurance
period: Provided, finally, That such investments shall not contracts issued by the SSS under this paragraph.
exceed one percent (1%) of the Investment Reserve Fund
in the first year which shall be increased by one percent "(b) The SSS may insure any of its interest or part thereof
(1%) for each succeeding year, but in no case shall it with any private company or reinsurer. The Insurance
exceed seven and one-half percent (7.5%) of the Commission or its authorized representatives shall make
Investment Reserve Fund; an examination into the financial condition and methods
of transacting business of the SSS at least once in two (2)
"(l) In loans secured by such collaterals like cash, years, but such examination shall be limited to the
government securities or guarantees of multilateral insurance operation of the SSS as authorized under this
institutions: Provided, That such investments shall not paragraph and shall not embrace the other operations of
exceed thirty percent (30%) of the Investment Reserve the SSS; and the report of said examination shall be
Fund; and submitted to the Commission and a copy thereof shall be
furnished the Office of the President of the Philippines
"(m) In other Bangko Sentral ng Pilipinas approved
within a reasonable time after the close of the
investment instruments with the same intrinsic quality as
examination: Provided, That for each examination, the SSS
those enumerated in paragraphs (a) to (l) hereof, subject
shall pay to the Insurance Commission an amount equal to
to the policies and guidelines which the Commission may
the actual expense of the Insurance Commission in the
formulate.
conduct of examination, including the salaries of the
"No portion of the Investment Reserve Fund or income examiners and of the actuary of the Insurance Commission
thereof shall accrue to the general fund of the National who have been assigned to make such examination for the
actual time spent in said examination: Provided, has in his possession any such altered, forged, material in
further, That the general law on insurance and the rules imitation of the material used in the manufacture of such
and regulations promulgated thereunder shall have stamp, coupon, ticket, book or other device, shall be fined
suppletory application insofar as it is not in conflict with not less than Five thousand pesos (P5,000.00) non more
this Act and its rules and regulations. than Twenty thousand pesos (P20,000.00) or imprisoned
for not less than six years (6) and one (1) day nor more
"SEC. 27. Records and Reports. - The SSS President shall
than twelve (12) years, or both, at the discretion of the
keep and cause to keep records of operations of the funds
court.
of the SSS and of disbursements thereof and all accounts
of payments made out of said funds. During the month of "(e) Whoever fails or refuses to comply with the provisions
January of each year, the SSS President shall prepare for of this Act or with the rules and regulations promulgated
submission to the President of the Philippines and to by the Commission, shall be punished by a fine of not less
Congress of the Philippines a report of operations of the than Five thousand pesos (P5,000.00) nor more than
SSS during the preceding year, including statistical data on Twenty thousand pesos (P20,000.00), or imprisonment for
the number of persons covered and benefited, their not less than six (6) years and one (1) day nor more than
occupations and employment status, the duration and twelve (12) years, or both, at the discretion of the
amount of benefits paid, the finances of the SSS at the court: Provided, That where the violation consists in failure
close of the said year, and recommendations. He shall also or refusal to register employees or himself, in case of the
cause to be published in two (2) newspapers of general covered self-employed or to deduct contributions from the
circulation in the Philippines a synopsis of the annual employees’ compensation and remit the same to the SSS,
report, showing in particular the status of the finances of the penalty shall be a fine of not less Five thousand pesos
the SSS and the benefits administered. (P5,000.00) nor more than Twenty thousand pesos
(P20,000.00) and imprisonment for not less than six (6)
"SEC. 28. Penal Clause. - (a) Whoever, for the purpose of
years and one (1) day nor more than twelve (12) years.
causing any payment to be made under this Act, or under
an agreement thereunder, where none is authorized to be "(f) If the act or omission penalized by this Act be
paid, shall make or cause to be made false statement or committed by an association, partnership, corporation or
representation as to any compensation paid or received or any other institution, its managing head, directors or
whoever makes or causes to be made any false statement partners shall be liable for the penalties provided in this
of a material fact in any claim for any benefit payable Act for the offense.
under this Act, or application for loan with the SSS, or
"(g) Any employee of the SSS who receives or keeps funds
whoever makes or causes to be made any false statement,
or property belonging, payable or deliverable to the SSS
representation, affidavit or document in connection with
and who shall appropriate the same, or shall take or
such claim or loan, shall suffer the penalties provided for
misappropriate, or shall consent, or through abandonment
in Article One hundred seventy-two of the Revised Penal
or negligence, shall permit any other person to take such
Code.
property or funds, wholly or partially, or shall otherwise be
"(b) Whoever shall obtain or receive any money or check guilty of misappropriation of such funds or property, shall
under this Act or any agreement thereunder, without suffer the penalties provided in Article Two hundred
being entitled thereto with intent to defraud any member, seventeen of the Revised Penal Code.
employer or the SSS, shall be fined not less than Five
"(h) Any employer who, after deducting the monthly
thousand pesos (P5,000.00) nor more than Twenty
contributions or loan amortizations from his employee’s
thousand pesos (P20,000.00) and imprisoned for not less
compensation, fails to remit the said deduction to the SSS
than six (6) years and one (1) day nor more than twelve
within thirty (30) days from the date they became due,
(12) years.
shall be presumed to have misappropriated such
"(c) Whoever buys, sells, offers for sale, uses, transfers or contributions or loan amortizations and shall suffer the
takes or gives in exchange, or pledges or gives in pledge, penalties provided in Article Three hundred fifteen of the
except as authorized in this Act or in regulations made Revised Penal Code.
pursuant thereto, any stamp, coupon, ticket, book or other
"(i) Criminal action arising from a violation of the
device, prescribed pursuant to Section Twenty-three
provisions of this Act may be commenced by the SSS or
hereof by the Commission for the collection or payment of
the employee concerned either under this Act or in
contributions required herein, shall be fined not less than
appropriate cases under the Revised Penal
Five thousand pesos (P5,000.00) nor more than Twenty
Code: Provided, That such criminal action may be filed by
thousand pesos (P20,000.00), or imprisoned for not less
the SSS in the city or municipality where the SSS office is
than six (6) years and one (1) day nor more than twelve
located, if the violation was committed within its territorial
(12) years, or both, at the discretion of the court.
jurisdiction or in Metro Manila, at the option of the SSS.
"(d) Whoever, with intent to defraud, alters, forges, makes
"SEC. 29. Government Aid. - The establishment of the SSS
or counterfeits any stamp, coupon, ticket, book or other
shall not disqualify the members and employers from
device prescribed by the Commission for the collection or
receiving such government assistance, financial or
payment of any contribution required herein, or uses,
otherwise, as may be provided.
sells, lends, or has in his possession any such altered,
forged or counterfeited materials, or makes, uses, sells or
"SEC. 30. Transitory Clause. - Any employer who is
delinquent or has not remitted all contributions due and
payable to the SSS may, within six (6) months from the
effectivity of this Act, remit said contributions or submit a
proposal to pay the same in installment within a period of
not more than twelve (12) months from the effectivity of
this Act without incurring the prescribed penalty, subject
to the implementing rules and regulations which the
Commission may prescribe: Provided, That the employer
submits the corresponding collection lists together with
the remittance or proposal to pay in
installments: Provided, further, That in case the employer
fails to remit contributions within the six-month grace
period or defaults in the payment of any amortization
provided the approved proposal, the prescribed penalty
shall be imposed from the time the contributions first
became due as provided in Section 22 (a) hereof."
“(i) Compensation — The basic pay or salary received by “(s) Permanent Total Disability — Accrues or arises when
an employee, pursuant to his election/appointment, recovery from the impairment mentioned in Section 2(Q)
excluding per diems, bonuses, overtime pay, honoraria, is medically remote;
allowances and any other emoluments received in
addition to the basic pay which are not integrated into the
basic pay under existing laws;
“(t) Temporary Total Disability — Accrues or arises when be required on account of the hazards or risks of its
the impaired physical and/or mental faculties can be employees’ occupation.
rehabilitated and/or restored to their normal functions;
“(c) It shall be mandatory and compulsory for all
“(u) Permanent Partial Disability — Accrues or arises upon employers to include the payment of contributions in their
the irrevocable loss or impairment of certain portion/s of annual appropriations. Penal sanctions shall be imposed
the physical faculties, despite which the member is able to upon employers who fail to include the payment of
pursue a gainful occupation. contributions in their annual appropriations or otherwise
fail to remit the accurate/exact amount of contributions
“B. MEMBERSHIP IN THE GSIS
on time, or delay the remittance of premium contributions
“SECTION 3. Compulsory Membership. — Membership in to the GSIS. The heads of offices and agencies shall be
the GSIS shall be compulsory for all employees receiving administratively liable for non-remittance or delayed
compensation who have not reached the compulsory remittance of premium contributions to the GSIS.
retirement age, irrespective of employment status, except
“SECTION 6. Collection and Remittance of Contributions.
members of the Armed Forces of the Philippines and the
— (a) The employer shall report to the GSIS the names of
Philippine National Police, subject to the condition that
all its employees, their corresponding employment status,
they must settle first their financial obligation with the
positions, salaries and such other pertinent information,
GSIS, and contractuals who have no employer and
including subsequent changes therein, if any, as may be
employee relationship with the agencies they serve.
required by the GSIS; the employer shall deduct each
“Except for the members of the judiciary and month from the monthly salary or compensation of each
constitutional commissions who shall have life insurance employee the contribution payable by him in accordance
only, all members of the GSIS shall have life insurance, with the schedule prescribed in the rules and regulations
retirement, and all other social security protection such as implementing this Act.
disability, survivorship, separation, and unemployment
“(b) Each employer shall remit directly to the GSIS the
benefits.
employees’ and employers’ contributions within the first
“SECTION 4. Effect of Separation from the Service. — A ten (10) days of the calendar month following the month
member separated from the service shall continue to be a to which the contributions apply. The remittance by the
member, and shall be entitled to whatever benefits he has employer of the contributions to the GSIS shall take
qualified to in the event of any contingency compensable priority over and above the payment of any and all
under this Act. obligations, except salaries and wages of its employees.
— Up to the Maximum AMC Limit 9.0% 12.0% “2) two and one-half percent (2.5%) of said revalued
average monthly compensation for each year of service in
— In Excess of the AMC Limit 2.0% 12.0% excess of fifteen (15) years: Provided, That the basic
“Members of the judiciary and constitutional monthly pension shall not exceed ninety percent (90%) of
commissioners shall pay three percent (3%) of their the average monthly compensation.
monthly compensation as personal share, and their “(b) The basic monthly pension may be adjusted upon the
employers a corresponding three percent (3%) share for recommendation of the President and General Manager of
their life insurance coverage. the GSIS and approved by the President of the Philippines
“(b) The employer shall include in its annual appropriation in accordance with the rules and regulations prescribed by
the necessary amounts for its share of the contributions the GSIS: Provided, however, That the basic monthly
indicated above, plus any additional premiums that may pension shall not be less than One thousand and three
hundred pesos (P1,300.00): Provided, further, That the
basic monthly pension for those who have rendered at 3 or more years but less than 6 years 3 months
least twenty (20) years of service after the effectivity of
6 or more years but less than 9 years 4 months
this Act shall not be less than Two thousand four hundred
pesos (P2,400.00) a month. 9 or more years but less than 11 years 5 months
“SECTION 10. Computation of Service. — (a) The 11 or more years but less than 15 years 6 months
computation of service for the purpose of determining the
amount of benefits payable under this Act shall be from “The first payment shall be equivalent to two (2) monthly
the date of original appointment/election, including benefits. A seven-day (7) waiting period shall be imposed
periods of service at different times under one or more on succeeding monthly payments.
employers, those performed overseas under the authority “All accumulated unemployment benefits paid to the
of the Republic of the Philippines, and those that may be employee during his entire membership with the GSIS shall
prescribed by the GSIS in coordination with the Civil be deducted from voluntary separation benefits.
Service Commission.
“The GSIS shall prescribe the detailed guidelines in the
“(b) All service credited for retirement, resignation or operationalization of this section in the rules and
separation for which corresponding benefits have been regulations implementing this Act.
awarded under this Act or other laws shall be excluded in
the computation of service in case of reinstatement in the “RETIREMENT BENEFITS
service of an employer and subsequent retirement or
“SECTION 13. Retirement Benefits. — (a) Retirement
separation which is compensable under this Act.
benefit shall be:
“For the purpose of this section the term service shall
“(1) the lump sum payment as defined in this Act payable
include full time service with compensation: Provided,
at the time of retirement plus an old-age pension benefit
That part time and other services with compensation may
equal to the basic monthly pension payable monthly for
be included under such rules and regulations as may be
life, starting upon expiration of the five-year (5)
prescribed by the GSIS.
guaranteed period covered by the lump sum; or
“SEPARATION BENEFITS
“(2) cash payment equivalent to eighteen (18) months of
“SECTION 11. Separation Benefits. — The separation his basic monthly pension plus monthly pension for life
benefit shall consist of: (a) a cash payment equivalent to payable immediately with no five-year (5) guarantee.
one hundred percent (100%) of his average monthly
“(b) Unless the service is extended by appropriate
compensation for each year of service he paid
authorities, retirement shall be compulsory for an
contributions, but not less than Twelve thousand pesos
employee at sixty-five (65) years of age with at least
(P12,000) payable upon reaching sixty (60) years of age or
fifteen (15) years of service: Provided, That if he has less
upon separation, whichever comes later: Provided, That
than fifteen (15) years of service, he may be allowed to
the member resigns or separates from the service after he
continue in the service in accordance with existing civil
has rendered at least three (3) years of service but less
service rules and regulations.
than fifteen (15) years; or
“SECTION 13-A. Conditions for Entitlement. — A member
“(b) A cash payment equivalent to eighteen (18) times his
who retires from the service shall be entitled to the
basic monthly pension payable at the time of resignation
retirement benefits in paragraph (a) of Section 13 hereof:
or separation, plus an old-age pension benefit equal to the
Provided, That:
basic monthly pension payable monthly for life upon
reaching the age of sixty (60): Provided, That the member (1) he has rendered at least fifteen (15) years of service;
resigns or separates from the service after he has
rendered at least fifteen (15) years of service and is below (2) he is at least sixty (60) years of age at the time of
sixty (60) years of age at the time of resignation or retirement; and
separation. (3) he is not receiving a monthly pension benefit from
“SECTION 12. Unemployment or Involuntary Separation permanent total disability.
Benefits. — Unemployment benefits in the form of “SECTION 14. Periodic Pension Adjustment. — The
monthly cash payments equivalent to fifty percent (50%) monthly pension of all pensioners including all those
of the average monthly compensation shall be paid to a receiving survivorship pension benefits shall be
permanent employee who is involuntarily separated from periodically adjusted as may be recommended by the GSIS’
the service due to the abolition of his office or position actuary and approved by the Board in accordance with the
usually resulting from reorganization: Provided, That he rules and regulations prescribed by the GSIS.
has been paying integrated contributions for at least one
(1) year prior to separation. Unemployment benefits shall “PERMANENT DISABILITY BENEFITS
be paid in accordance with the following schedule: “SECTION 15. General Conditions for Entitlement. — A
“Contributions Made Benefit Duration member who suffers permanent disability for reasons not
due to his grave misconduct, notorious negligence,
1 year but less than 3 years 2 months habitual intoxication, or willful intention to kill himself or
another, shall be entitled to the benefits provided for
under Sections 16 and 17 immediately following, subject “(1) complete and permanent loss of the use of:
to the corresponding conditions therefor.
(i) any finger
“SECTION 16. Permanent Total Disability Benefits. — (a) If
(ii) any toe
the permanent disability is total, he shall receive a
monthly income benefit for life equal to the basic monthly (iii) one arm
pension effective from the date of disability: Provided,
That: (iv) one hand
(2) if separated from the service, he has paid at least (vi) one leg
thirty-six (36) monthly contributions within the five (5) (vii) one or both ears
year period immediately preceding his disability, or has
paid a total of at least one hundred eighty (180) monthly (viii) hearing of one or both ears
contributions, prior to his disability: Provided, further, That
(ix) sight of one eye
if at the time of disability, he was in the service and has
paid a total of at least one hundred eighty (180) monthly “(2) such other cases as may be determined by the GSIS.
contributions, in addition to the monthly income benefit,
he shall receive a cash payment equivalent to eighteen “TEMPORARY DISABILITY BENEFITS
(18) times his basic monthly pension: Provided, finally, “SECTION 18. Temporary Total Disability Benefit. — (a) A
That a member cannot enjoy the monthly income benefit member who suffers temporary total disability for reasons
for permanent disability and the old-age retirement not due to any of the conditions enumerated in Section 15
simultaneously. hereof shall be entitled to seventy-five percent (75%) of
“(b) If a member who suffers permanent total disability his current daily compensation for each day or fraction
does not satisfy conditions (1) and (2) in paragraph (a) of thereof of temporary disability benefit not exceeding one
this section but has rendered at least three (3) years hundred twenty (120) days in one calendar year after
service at the time of his disability, he shall be advanced exhausting all his sick leave credits and collective
the cash payment equivalent to one hundred percent bargaining agreement sick leave benefits, if any, but not
(100%) of his average monthly compensation for each year earlier than the fourth day of his temporary total
of service he paid contributions, but not less than Twelve disability: Provided, That:
Thousand pesos (P12,000) which should have been his “(1) he is in the service at the time of his disability; or
separation benefit.
“(2) if separated, he has rendered at least three (3) years
“(c) Unless the member has reached the minimum of service and has paid at least six (6) monthly
retirement age, disability benefit shall be suspended contributions in the twelve-month period immediately
when: preceding his disability.
“(1) he is reemployed or Provided, however, That a member cannot enjoy the
“(2) he recovers from disability as determined by the GSIS, temporary total disability benefit and sick leave pay
whose decision shall be final and binding; or simultaneously: Provided, further, That if the disability
requires more extensive treatment that lasts beyond one
“(3) he fails to present himself for medical examination hundred twenty (120) days, the payment of the temporary
when required by the GSIS. total disability benefit may be extended by the GSIS but
not to exceed a total of two hundred forty (240) days.
“(d) The following disabilities shall be deemed total and
permanent: “(b) The temporary total disability benefit shall in no case
be less than Seventy pesos (P70.00) a day.
“(1) complete loss of sight of both eyes;
“(c) The notices required of the member and the
“(2) loss of two (2) limbs at or above the ankle or wrist;
employer, the mode of payment, and the other
“(3) permanent complete paralysis of two(2) limbs; requirements for entitlement to temporary total disability
benefits shall be provided in the rules and regulations to
“(4) brain injury resulting in incurable imbecility or be prescribed by the GSIS.
insanity; and
“SECTION 19. Non-scheduled Disability. — For injuries or
“(5) such other cases as may be determined by the GSIS. illnesses resulting in a disability not listed in the schedule
“SECTION 17. Permanent Partial Disability Benefits. — (a) of partial/total disability, as provided herein, the GSIS shall
If the disability is partial, he shall receive a cash payment determine the nature of the disability and the
in accordance with a schedule of disabilities to be corresponding benefits therefor.
prescribed by the GSIS: Provided, That he satisfies either “SURVIVORSHIP BENEFITS
conditions (1) or (2) of Section 16(a);
“SECTION 20. Survivorship Benefits. — When a member or
“(b) The following disabilities shall be deemed permanent pensioner dies, the beneficiaries shall be entitled to
and partial:
survivorship benefits provided in Sections 21 and 22 in the service at the time of his death and has at least
hereunder subject to the conditions therein provided for. three (3) years of service; or
The survivorship pension shall consist of:
(2) in the absence of secondary beneficiaries, the benefits
(1) the basic survivorship pension which is fifty percent under this paragraph shall be paid to his legal heirs.
(50%) of the basic monthly pension; and
(d) For purposes of the survivorship benefits, legitimate
(2) the dependent children’s pension not exceeding fifty children shall include legally adopted and legitimate
percent (50%) of the basic monthly pension. children.
SECTION 8. Rights to Ancestral Lands. — The For this purpose, said individually-owned ancestral lands,
right of ownership and possession of the ICCs/IPs to their which are agricultural in character and actually used for
ancestral lands shall be recognized and protected. agricultural, residential, pasture, and tree farming purposes,
including those with a slope of eighteen percent (18%) or
a) Right to transfer land/property. — Such right more, are hereby classified as alienable and disposable
shall include the right to transfer land or property rights agricultural lands.
to/among members of the same ICCs/IPs, subject to
customary laws and traditions of the community concerned. The option granted under this section shall be exercised
within twenty (20) years from the approval of this Act.
b) Right to Redemption. — In cases where it is
shown that the transfer of land/property rights by virtue of CHAPTER IV
any agreement or devise, to a non-member of the concerned
ICCs/IPs is tainted by the vitiated consent of the ICCs/IPs, Right to Self-Governance and Empowerment
or is transferred for an unconscionable consideration or SECTION 13. Self-Governance. — The State
price, the transferor ICC/IP shall have the right to redeem recognizes the inherent right of ICCs/IPs to self-
the same within a period not exceeding fifteen (15) years governance and self-determination and respects the
from the date of transfer. integrity of their values, practices and institutions.
SECTION 9. Responsibilities of ICCs/IPs to their Consequently, the State shall guarantee the right of
Ancestral Domains. — ICCs/IPs occupying a duly certified ICCs/IPs to freely pursue their economic, social and
ancestral domain shall have the following responsibilities: cultural development.
a) Maintain Ecological Balance. — To preserve, SECTION 14. Support for Autonomous Regions. —
restore, and maintain a balanced ecology in the ancestral The State shall continue to strengthen and support the
autonomous regions created under the Constitution as they
may require or need. The State shall likewise encourage shall, with due recognition of their distinct characteristics
other ICCs/IPs not included or outside Muslim Mindanao and identity, accord to the members of the ICCs/IPs the
and the Cordilleras to use the form and content of their rights, protections and privileges enjoyed by the rest of the
ways of life as may be compatible with the fundamental citizenry. It shall extend to them the same employment
rights defined in the Constitution of the Republic of the rights, opportunities, basic services, educational and other
Philippines and other internationally recognized human rights and privileges available to every member of the
rights. society. Accordingly, the State shall likewise ensure that
the employment of any form of force or coercion against
SECTION 15. Justice System, Conflict Resolution ICCs/IPs shall be dealt with by law.
Institutions, and Peace Building Processes. — The
ICCs/IPs shall have the right to use their own commonly The State shall ensure that the fundamental human rights
accepted justice systems, conflict resolution institutions, and freedoms as enshrined in the Constitution and relevant
peace building processes or mechanisms and other international instruments are guaranteed also to indigenous
customary laws and practices within their respective women. Towards this end, no provision in this Act shall be
communities and as may be compatible with the national interpreted so as to result in the diminution of rights and
legal system and with internationally recognized human privileges already recognized and accorded to women
rights. under existing laws of general application.
SECTION 16. Right to Participate in Decision- SECTION 22. Rights During Armed Conflict. —
Making. — ICCs/IPs have the right to participate fully, if ICCs/IPs have the right to special protection and security in
they so choose, at all levels of decision-making in matters periods of armed conflict. The State shall observe
which may affect their rights, lives and destinies through international standards, in particular, the Fourth Geneva
procedures determined by them as well as to maintain and Convention of 1949, for the protection of civilian
develop their own indigenous political structures. populations in circumstances of emergency and armed
Consequently, the State shall ensure that the ICCs/IPs shall conflict, and shall not recruit members of the ICCs/IPs
be given mandatory representation in policy-making bodies against their will into the armed forces, and in particular,
and other local legislative councils. for use against other ICCs/IPs; nor recruit children of
ICCs/IPs into the armed forces under any circumstance; nor
SECTION 17. Right to Determine and Decide force indigenous individuals to abandon their lands,
Priorities for Development. — The ICCs/IPs shall have the territories and means of subsistence, or relocate them in
right to determine and decide their own priorities for special centers for military purposes under any
development affecting their lives, beliefs, institutions, discriminatory condition.
spiritual well-being, and the lands they own, occupy or use.
They shall participate in the formulation, implementation SECTION 23. Freedom from Discrimination and
and evaluation of policies, plans and programs for national, Right to Equal Opportunity and Treatment. — It shall be
regional and local development which may directly affect the right of the ICCs/IPs to be free from any form of
them. discrimination, with respect to recruitment and conditions
of employment, such that they may enjoy equal
SECTION 18. Tribal Barangays. — The ICCs/IPs opportunities for admission to employment, medical and
living in contiguous areas or communities where they form social assistance, safety as well as other occupationally-
the predominant population but which are located in related benefits, informed of their rights under existing
municipalities, provinces or cities where they do not labor legislation and of means available to them for redress,
constitute the majority of the population, may form or not subject to any coercive recruitment systems, including
constitute a separate barangay in accordance with the Local bonded labor and other forms of debt servitude; and equal
Government Code on the creation of tribal barangays. treatment in employment for men and women, including
SECTION 19. Role of Peoples Organizations. — The the protection from sexual harassment.
State shall recognize and respect the role of independent Towards this end, the State shall, within the framework of
ICCs/IPs organizations to enable the ICCs/IPs to pursue national laws and regulations, and in cooperation with the
and protect their legitimate and collective interests and ICCs/IPs concerned, adopt special measures to ensure the
aspirations through peaceful and lawful means. effective protection with regard to the recruitment and
SECTION 20. Means for Development/Empowerment conditions of employment of persons belonging to these
of ICCs/IPs. — The Government shall establish the means communities, to the extent that they are not effectively
for the full development/empowerment of the ICCs/IPs protected by laws applicable to workers in general.
own institutions and initiatives and, where necessary, ICCs/IPs shall have the right to association and freedom for
provide the resources needed therefor. all trade union activities and the right to conclude collective
CHAPTER V bargaining agreements with employers’ organizations.
They shall likewise have the right not to be subject to
Social Justice and Human Rights working conditions hazardous to their health, particularly
through exposure to pesticides and other toxic substances.
SECTION 21. Equal Protection and Non-
discrimination of ICCs/IPs. — Consistent with the equal SECTION 24. Unlawful Acts Pertaining to
protection clause of the Constitution of the Republic of the Employment. — It shall be unlawful for any person:
Philippines, the Charter of the United Nations, the
Universal Declaration of Human Rights including the a) To discriminate against any ICC/IP with respect
Convention on the Elimination of Discrimination Against to the terms and conditions of employment on account of
Women and International Human Rights Law, the State their descent. Equal remuneration shall be paid to ICC/IP
and non-ICC/IP for work of equal value; and
b) To deny any ICC/IP employee any right or learning. Indigenous children/youth shall have the right to
benefit herein provided for or to discharge them for the all levels and forms of education of the State.
purpose of preventing them from enjoying any of the rights
or benefits provided under this Act. SECTION 31. Recognition of Cultural Diversity. —
The State shall endeavor to have the dignity and diversity
SECTION 25. Basic Services. — The ICCs/IPs have of the cultures, traditions, histories and aspirations of the
the right to special measures for the immediate, effective ICCs/IPs appropriately reflected in all forms of education,
and continuing improvement of their economic and social public information and cultural-educational exchange.
conditions, including in the areas of employment, Consequently, the State shall take effective measures, in
vocational training and retraining, housing, sanitation, consultation with ICCs/IPs concerned, to eliminate
health and social security. Particular attention shall be paid prejudice and discrimination and to promote tolerance,
to the rights and special needs of indigenous women, understanding and good relations among ICCs/IPs and all
elderly, youth, children and differently-abled persons. segments of society. Furthermore, the Government shall
Accordingly, the State shall guarantee the right of ICCs/IPs take effective measures to ensure that the State-owned
to government’s basic services which shall include, but not media duly reflect indigenous cultural diversity. The State
limited to, water and electrical facilities, education, health, shall likewise ensure the participation of appropriate
and infrastructure. indigenous leaders in schools, communities and
international cooperative undertakings like festivals,
SECTION 26. Women. — ICC/IP women shall enjoy conferences, seminars and workshops to promote and
equal rights and opportunities with men, as regards the enhance their distinctive heritage and values.
social, economic, political and cultural spheres of life. The
participation of indigenous women in the decision-making SECTION 32. Community Intellectual Rights. —
process in all levels, as well as in the development of ICCs/IPs have the right to practice and revitalize their own
society, shall be given due respect and recognition. cultural traditions and customs. The State shall preserve,
protect and develop the past, present and future
The State shall provide full access to education, maternal manifestations of their cultures as well as the right to the
and child care, health and nutrition, and housing services to restitution of cultural, intellectual, religious, and spiritual
indigenous women. Vocational, technical, professional and property taken without their free and prior informed
other forms of training shall be provided to enable these consent or in violation of their laws, traditions and customs.
women to fully participate in all aspects of social life. As
far as possible, the State shall ensure that indigenous SECTION 33. Rights to Religious, Cultural Sites and
women have access to all services in their own languages. Ceremonies. — ICCs/IPs shall have the right to manifest,
practice, develop, and teach their spiritual and religious
SECTION 27. Children and Youth. — The State shall traditions, customs and ceremonies; the right to maintain,
recognize the vital role of the children and youth of protect and have access to their religious and cultural sites;
ICCs/IPs in nation-building and shall promote and protect the right to use and control of ceremonial objects; and, the
their physical, moral, spiritual, intellectual and social well- right to the repatriation of human remains. Accordingly, the
being. Towards this end, the State shall support all State shall take effective measures, in cooperation with the
government programs intended for the development and ICCs/IPs concerned, to ensure that indigenous sacred
rearing of the children and youth of ICCs/IPs for civic places, including burial sites, be preserved, respected and
efficiency and establish such mechanisms as may be protected. To achieve this purpose, it shall be unlawful to:
necessary for the protection of the rights of the indigenous
children and youth. a) Explore, excavate or make diggings on
archeological sites of the ICCs/IPs for the purpose of
SECTION 28. Integrated System of Education. — The obtaining materials of cultural values without the free and
State shall, through the NCIP, provide a complete, adequate prior informed consent of the community concerned; and
and integrated system of education, relevant to the needs of
the children and young people of ICCs/IPs. b) Deface, remove or otherwise destroy artifacts
which are of great importance to the ICCs/IPs for the
CHAPTER VI preservation of their cultural heritage.
Cultural Integrity SECTION 34. Right to Indigenous Knowledge
SECTION 29. Protection of Indigenous Culture, Systems and Practices and to Develop own Sciences and
Traditions and Institutions. — The State shall respect, Technologies. — ICCs/IPs are entitled to the recognition of
recognize and protect the right of ICCs/IPs to preserve and the full ownership and control and protection of their
protect their culture, traditions and institutions. It shall cultural and intellectual rights. They shall have the right to
consider these rights in the formulation and application of special measures to control, develop and protect their
national plans and policies. sciences, technologies and cultural manifestations,
including human and other genetic resources, seeds,
SECTION 30. Educational Systems. — The State including derivatives of these resources, traditional
shall provide equal access to various cultural opportunities medicines and health practices, vital medicinal plants,
to the ICCs/IPs through the educational system, public or animals and minerals, indigenous knowledge systems and
private cultural entities, scholarships, grants and other practices, knowledge of the properties of fauna and flora,
incentives without prejudice to their right to establish and oral traditions, literature, designs, and visual and
control their educational systems and institutions by performing arts.
providing education in their own language, in a manner
appropriate to their cultural methods of teaching and SECTION 35. Access to Biological and Genetic
Resources. — Access to biological and genetic resources
and to indigenous knowledge related to the conservation,
utilization and enhancement of these resources, shall be Provided, further, That the members of the NCIP shall hold
allowed within ancestral lands and domains of the ICCs/IPs office for a period of three (3) years, and may be subject to
only with a free and prior informed consent of such re-appointment for another term: Provided, furthermore,
communities, obtained in accordance with customary laws That no person shall serve for more than two (2) terms.
of the concerned community. Appointment to any vacancy shall only be for the
unexpired term of the predecessor and in no case shall a
SECTION 36. Sustainable Agro-Technical member be appointed or designated in a temporary or
Development. — The State shall recognize the right of acting capacity: Provided, finally, That the Chairperson and
ICCs/IPs to a sustainable agro-technological development the Commissioners shall be entitled to compensation in
and shall formulate and implement programs of action for accordance with the Salary Standardization Law.
its effective implementation. The State shall likewise
promote the bio-genetic and resource management systems SECTION 42. Removal from Office. — Any member
among the ICCs/IPs and shall encourage cooperation of the NCIP may be removed from office by the President,
among government agencies to ensure the successful on his own initiative or upon recommendation by any
sustainable development of ICCs/IPs. indigenous community, before the expiration of his term
for cause and after complying with due process requirement
SECTION 37. Funds for Archeological and Historical of law.
Sites. — The ICCs/IPs shall have the right to receive from
the national government all funds especially earmarked or SECTION 43. Appointment of Commissioners. —
allocated for the management and preservation of their The President shall appoint the seven (7) Commissioners of
archeological and historical sites and artifacts with the the NCIP within ninety (90) days from the effectivity of
financial and technical support of the national government this Act.
agencies.
SECTION 44. Powers and Functions. — To
CHAPTER VII accomplish its mandate, the NCIP shall have the following
powers, jurisdiction and function:
National Commission on Indigenous Peoples (NCIP)
a) To serve as the primary government agency
SECTION 38. National Commission on Indigenous through which ICCs/IPs can seek government assistance
Cultural Communities/Indigenous Peoples (NCIP). — To and as the medium, through which such assistance may be
carry out the policies herein set forth, there shall be created extended;
the National Commission on ICCs/IPs (NCIP), which shall
be the primary government agency responsible for the b) To review and assess the conditions of ICCs/IPs
formulation and implementation of policies, plans and including existing laws and policies pertinent thereto and to
programs to promote and protect the rights and well-being propose relevant laws and policies to address their role in
of the ICCs/IPs and the recognition of their ancestral national development;
domains as well as the rights thereto.
c) To formulate and implement policies, plans,
SECTION 39. Mandate. — The NCIP shall protect programs and projects for the economic, social and cultural
and promote the interest and well-being of the ICCs/IPs development of the ICCs/IPs and to monitor the
with due regard to their beliefs, customs, traditions and implementation thereof;
institutions.
d) To request and engage the services and support
SECTION 40. Composition. — The NCIP shall be an of experts from other agencies of government or employ
independent agency under the Office of the President and private experts and consultants as may be required in the
shall be composed of seven (7) Commissioners belonging pursuit of its objectives;
to ICCs/IPs, one (1) of whom shall be the Chairperson. The
Commissioners shall be appointed by the President of the e) To issue certificate of ancestral land/domain
Philippines from a list of recommendees submitted by title;
authentic ICCs/IPs: Provided, That the seven (7) f) Subject to existing laws, to enter into contracts,
Commissioners shall be appointed specifically from each of agreements, or arrangement, with government or private
the following ethnographic areas: Region I and the agencies or entities as may be necessary to attain the
Cordilleras; Region II; the rest of Luzon; Island Groups objectives of this Act, and subject to the approval of the
including Mindoro, Palawan, Romblon, Panay and the rest President, to obtain loans from government lending
of the Visayas; Northern and Western Mindanao; Southern institutions and other lending institutions to finance its
and Eastern Mindanao; and Central Mindanao: Provided, programs;
That at least two (2) of the seven (7) Commissioners shall
be women. g) To negotiate for funds and to accept grants,
donations, gifts and/or properties in whatever form and
SECTION 41. Qualifications, Tenure, Compensation. from whatever source, local and international, subject to the
— The Chairperson and the six (6) Commissioners must be approval of the President of the Philippines, for the benefit
natural born Filipino citizens, bona fide members of the of ICCs/IPs and administer the same in accordance with the
ICCs/IPs as certified by his/her tribe, experienced in ethnic terms thereof; or in the absence of any condition, in such
affairs and who have worked for at least ten (10) years with manner consistent with the interest of ICCs/IPs as well as
an ICC/IP community and/or any government agency existing laws;
involved in ICC/IP, at least 35 years of age at the time of
appointment, and must be of proven honesty and integrity: h) To coordinate development programs and
Provided, That at least two (2) of the seven (7) projects for the advancement of the ICCs/IPs and to
Commissioners shall be members of the Philippine Bar: oversee the proper implementation thereof;
i) To convene periodic conventions or assemblies years, the Commission shall endeavor to assess the plan
of IPs to review, assess as well as propose policies or plans; and make ramifications in accordance with the changing
situations. The Office shall also undertake the
j) To advise the President of the Philippines on all documentation of customary law and shall establish and
matters relating to the ICCs/IPs and to submit within sixty maintain a Research Center that would serve as a
(60) days after the close of each calendar year, a report of depository of ethnographic information for monitoring,
its operations and achievements; evaluation and policy formulation. It shall assist the
k) To submit to Congress appropriate legislative legislative branch of the national government in the
proposals intended to carry out the policies under this Act; formulation of appropriate legislation benefiting ICCs/IPs;
l) To prepare and submit the appropriate budget to c) Office of Education, Culture and Health — The
the Office of the President; Office on Culture, Education and Health shall be
responsible for the effective implementation of the
m) To issue appropriate certification as a pre- education, cultural and related rights as provided in this
condition to the grant of permit, lease, grant, or any other Act. It shall assist, promote and support community
similar authority for the disposition, utilization, schools, both formal and non-formal, for the benefit of the
management and appropriation by any private individual, local indigenous community, especially in areas where
corporate entity or any government agency, corporation or existing educational facilities are not accessible to members
subdivision thereof on any part or portion of the ancestral of the indigenous group. It shall administer all scholarship
domain taking into consideration the consensus approval of programs and other educational rights intended for ICC/IP
the ICCs/IPs concerned; beneficiaries in coordination with the Department of
Education, Culture and Sports and the Commission on
n) To decide all appeals from the decisions and acts
Higher Education. It shall undertake, within the limits of
of all the various offices within the Commission;
available appropriation, a special program which includes
o) To promulgate the necessary rules and language and vocational training, public health and family
regulations for the implementation of this Act; assistance program and related subjects.
p) To exercise such other powers and functions as It shall also identify ICCs/IPs with potential training in the
may be directed by the President of the Republic of the health profession and encourage and assist them to enroll in
Philippines; and schools of medicine, nursing, physical therapy and other
allied courses pertaining to the health profession.
q) To represent the Philippine ICCs/IPs in all
international conferences and conventions dealing with Towards this end, the NCIP shall deploy a representative in
indigenous peoples and other related concerns. each of the said offices who shall personally perform the
foregoing task and who shall receive complaints from the
SECTION 45. Accessibility and Transparency. — ICCs/IPs and compel action from appropriate agency. It
Subject to such limitations as may be provided by law or by shall also monitor the activities of the National Museum
rules and regulations promulgated pursuant thereto, all and other similar government agencies generally intended
official records, documents and papers pertaining to official to manage and preserve historical and archeological
acts, transactions or decisions, as well as research data used artifacts of the ICCs/IPs and shall be responsible for the
as basis for policy development of the Commission shall be implementation of such other functions as the NCIP may
made accessible to the public. deem appropriate and necessary;
SECTION 46. Offices within the NCIP. — The NCIP d) Office on Socio-Economic Services and Special
shall have the following offices which shall be responsible Concerns — The Office on Socio-Economic Services and
for the implementation of the policies hereinafter provided: Special Concerns shall serve as the Office through which
a) Ancestral Domains Office — The Ancestral the NCIP shall coordinate with pertinent government
Domain Office shall be responsible for the identification, agencies specially charged with the implementation of
delineation and recognition of ancestral lands/domains. It various basic socio-economic services, policies, plans and
shall also be responsible for the management of ancestral programs affecting the ICCs/IPs to ensure that the same are
lands/domains in accordance with a master plan as well as properly and directly enjoyed by them. It shall also be
the implementation of the ancestral domain rights of the responsible for such other functions as the NCIP may deem
ICCs/IPs as provided in Chapter III of this Act. It shall also appropriate and necessary;
issue, upon the free and prior informed consent of the e) Office of Empowerment and Human Rights —
ICCs/IPs concerned, certification prior to the grant of any The Office of Empowerment and Human Rights shall
license, lease or permit for the exploitation of natural ensure that indigenous socio-political, cultural and
resources affecting the interests of ICCs/IPs or their economic rights are respected and recognized. It shall
ancestral domains and to assist the ICCs/IPs in protecting ensure that capacity building mechanisms are instituted and
the territorial integrity of all ancestral domains. It shall ICCs/IPs are afforded every opportunity, if they so choose,
likewise perform such other functions as the Commission to participate in all levels of decision-making. It shall
may deem appropriate and necessary; likewise ensure that the basic human rights, and such other
b) Office on Policy, Planning and Research — The rights as the NCIP may determine, subject to existing laws,
Office on Policy, Planning and Research shall be rules and regulations, are protected and promoted;
responsible for the formulation of appropriate policies and f) Administrative Office — The Administrative
programs for ICCs/IPs such as, but not limited to, the Office shall provide the NCIP with economical, efficient
development of a Five-Year Master Plan for the ICCs/IPs. and effective services pertaining to personnel, finance,
Such plan shall undergo a process such that every five
records, equipment, security, supplies and related services. a) Ancestral Domains Delineated Prior to this Act.
It shall also administer the Ancestral Domains Fund; and — The provisions hereunder shall not apply to ancestral
domains/lands already delineated according to DENR
g) Legal Affairs Office — There shall be a Legal Administrative Order No. 2, series of 1993, nor to ancestral
Affairs Office which shall advice the NCIP on all legal lands and domains delineated under any other
matters concerning ICCs/IPs and which shall be community/ancestral domain program prior to the
responsible for providing ICCs/IPs with legal assistance in enactment of this law. ICCs/IPs whose ancestral
litigation involving community interest. It shall conduct lands/domains were officially delineated prior to the
preliminary investigation on the basis of complaints filed enactment of this law shall have the right to apply for the
by the ICCs/IPs against a natural or juridical person issuance of a Certificate of Ancestral Domain Title
believed to have violated ICCs/IPs rights. On the basis of (CADT) over the area without going through the process
its findings, it shall initiate the filing of appropriate legal or outlined hereunder;
administrative action to the NCIP.
b) Petition for Delineation. — The process of
SECTION 47. Other Offices. — The NCIP shall have delineating a specific perimeter may be initiated by the
the power to create additional offices as it may deem NCIP with the consent of the ICC/IP concerned, or through
necessary subject to existing rules and regulations. a Petition for Delineation filed with the NCIP, by a
SECTION 48. Regional and Field Offices. — Existing majority of the members of the ICCs/IPs;
regional and field offices shall remain to function under the c) Delineation Proper. — The official delineation
strengthened organizational structure of the NCIP. Other of ancestral domain boundaries including census of all
field offices shall be created wherever appropriate and the community members therein, shall be immediately
staffing pattern thereof shall be determined by the NCIP: undertaken by the Ancestral Domains Office upon filing of
Provided, That in provinces where there are ICCs/IPs but the application by the ICCs/IPs concerned. Delineation will
without field offices, the NCIP shall establish field offices be done in coordination with the community concerned and
in said provinces. shall at all times include genuine involvement and
SECTION 49. Office of the Executive Director. — participation by the members of the communities
The NCIP shall create the Office of the Executive Director concerned;
which shall serve as its secretariat. The Office shall be d) Proof Required. — Proof of Ancestral Domain
headed by an Executive Director who shall be appointed by Claims shall include the testimony of elders or community
the President of the Republic of the Philippines upon under oath, and other documents directly or indirectly
recommendation of the NCIP on a permanent basis. The attesting to the possession or occupation of the area since
staffing pattern of the office shall be determined by the time immemorial by such ICCs/IPs in the concept of
NCIP subject to the existing rules and regulations. owners which shall be any one (1) of the following
SECTION 50. Consultative Body. — A body authentic documents:
consisting of the traditional leaders, elders and 1) Written accounts of the ICCs/IPs customs and
representatives from the women and youth sectors of the traditions;
different ICCs/IPs shall be constituted by the NCIP from
time to time to advise it on matters relating to the problems, 2) Written accounts of the ICCs/IPs political
aspirations and interests of the ICCs/IPs. structure and institution;