RA 8282 (SOCIAL SECURITY LAW)

SETTLEMENT OF DISPUTES
Disputes arising from: coverage, benefits, contributions
& penalties, any matter related thereto
Jurisdiction: SOCIAL SECURITY COMMISSION
When decision is made: within mandatory period of 20
days after the submission of evidence
Finality of decision: decision becomes final & executory
15 days after the date of notification; judicial review
permitted only if aggrieved party has exhausted
remedies before Commission
Appeal: Court of Appeals (questions of law and facts)

-CA appeal must be taken within 15

days from notification of decision
Supreme Court (questions of law only)
Is an appeal bond necessary?
No appeal bond shall be required
*Case shall be heard in summary manner and shall
take precedence over all cases except that in SC,
criminal cases wherein life imprisonment or death has
been imposed by trial court shall take precedence
*No appeal shall act as supersedeas or a stay of the
order of the Commission unless the Commission itself
or the Court of Appeals or the Supreme Court, shall
so order
PRESCRIPTIVE PERIOD: 10 years from accrual of right
of action
Can you withdraw from membership in SSS?
NO, he is deemed a member for life; obligation to pay
for the contributions would only be suspended
WHO ARE COVERED?
EMPLOYER any person, natural or juridical, domestic
or foreign who carries on in the Philippines any trade,
business, industry, undertaking, or activity of any kind
and uses the services of another person who is under
his orders as regards the employment (except
Government & any of its subdivisions)

EMPLOYEE any person who performs services for an

employer who receives compensation for such services,
where there is employer-employee relationship
SELF-EMPLOYED considered both employer and
employee; person is one whose income is not derived
from employment such as but not limited to the
following:

1. All self-employed professionals;

2. Partners and single proprietors of businesses;
3. Actors and actresses, directors, scriptwriters
and

news

correspondents

who

do

not

fall within the definition of the term "employe

e"; in Sec. 8 (d) of this Act;

4. Professional athletes, coaches, trainers and jock

eys; and

5. Individual farmers and fishermen

DEPENDENTS:
a. Legal spouse of member entitled to support
b. Legitimate, legitimated, legally adopted and illegitimate
children, not gainfully employed & have not reached 21
yrs. old
c. Parents receiving regular support
COVERAGE:
1. COMPULSORY COVERAGE
a) All employees not over 60 yrs. of age and
their employers
Effectivity of Coverage:
Employer - first day of his operation
Employee first day of employment
b) Self-employed persons as may be determined
by the Commission: self-employed professionals,
partners & single proprietors of business, actors
& actresses, directors, scriptwriters, news
correspondents who are not employees,
professional athletes, coaches, trainers, jockeys,
individual farmers and fishermen
Effectivity of Coverage: upon registration
with the SSS
c) Domestic helpers 60 yrs. old or age and below
with a monthly income of not less than P1,000
2. VOLUNTARY COVERAGE
a) Filipinos recruited by foreign-based employers
for employment abroad

b) Employees separated from employment to

maintain his rights and full benefits
c) Self-employed who realizes no income for a
certain month
d) Spouses who devote full time to managing
household and family affairs unless specifically
mandatorily covered
EXCEPTIONS FROM COVERAGE
Employment purely casual and not for purpose
of occupation or business employer
Service performed or in connection with alien
vessel, if employed when such vessel is outside
the Philippines
Employees of Philippine government or
instrumentality
Service performed in the employ of a foreign
government or international organization, or
wholly owned instrumentality employing workers
in the Philippines or employing Filipinos abroad
Services performed by temporary employees &
other employees excluded by SSS regulations;
employees of bona fide independent contractors
shall not be deemed employees of the employer
engaging the services of an independent
contractor
BENEFICIARIES
1. PRIMARY
a. Dependent spouse until remarriage
b. Dependent legitimate or legitimated or legally
adopted and illegitimate children
Share of illegitimate: 50% of share of
legitimate, legally adopted or legitimated;
in the absence of the 3, illegitimate will
get 100%
2. SECONDARY
a. Dependent parents
b. Absent primary or secondary beneficiaries, any
other person designated by member as secondary
beneficiary
EFFECTS OF SEPARATION FROM EMPLOYMENT
Employers contribution on his account ceases
Employees obligation to contribute also ceases
at the end of the month of separation
Employee shall be credited with all contributions
paid on his behalf and entitled to benefits
according to the Act

He may continue to pay total

contributions to maintain his right to full
benefit

EFFECT OF INTERRUPTION OF BUSINESS OR

PROFESSIONAL INCOME (If self-employed member
realizes no income in any given month)
Not required to pay contribution for that month
May be allowed to continue paying contributions
under same rules and regulations applicable to
self-employed member, Provided no retroactive
payment of contributions shall be allowed other
than as prescribed under Section 22-A
MONTHLY PENSION: highest of the following amounts
1. Sum of the following:
P300.00 + 20% of average monthly salary
credit + 2% average monthly salary credit for
each credited year of service in excess of 10
years
2. 40% of the average monthly salary credit
3. P1,000.00 (provided monthly pension shall in no case
be paid for an aggregate amount of less than 60
months)
Minimum pension: P1,200.00 for members with at least
10 years of credited years of service
P2,400.00 for members with at least 20 years of
credited years of service
TYPES OF PENSION/BENEFITS:
1. DEPENDENTS PENSION can be availed on
account of death, permanent total disability or retirement
10% of the monthly pension or P250.00,
whichever is higher
Only 5 dependents can avail of the pension
beginning with the youngest and without
substitution
Legitimate children shall be preferred where
there are illegitimate children
2. RETIREMENT BENEFITS
Voluntary retirement 60 yrs. old
Compulsory retirement 65 yrs. old
Who can avail?
member who has paid at least 120 monthly
contributions prior to the semester of
retirement & who has reached 60 yrs. old
and already separated from employment or

has ceased to be self-employed or reached

65 yrs. old
Entitled to the monthly pension for as long
as he lives
If 60 yrs. old at retirement & does not
qualify for pension benefits entitled to
lump sum benefit equal to the total
contributions paid
Monthly pension suspended upon reemployment or resumption of selfemployment of a retired member below 65
yrs. old

Who is entitled to monthly pension following death

of member?
Upon death of retired members, primary
beneficiaries shall be entitled to pension; if
no primary beneficiaries and dies within 60
months from start of pension secondary
beneficiaries shall be entitled
3. DEATH BENEFITS
Upon death of member who has paid at
least 36 monthly contributions prior to
semester of death
Who can avail?
Primary beneficiaries
Absence of primary beneficiaries, secondary
beneficiaries entitled to lump sum benefit
equivalent to 36x monthly pension
If he has not paid required 36 monthly
contributions: entitled to lump sum benefit equivalent
to monthly pension x number of monthly contributions
paid or 12x monthly pension, whichever is higher
4. PERMANENT DISABILITY BENEFITS
Upon permanent total disability of member who
has paid at least 36 monthly contributions prior to
semester of disability
If he does not comply with required #
contributions: entitled to lump sum benefit
equivalent to monthly pension x number of
monthly contributions paid or 12x monthly
pension, whichever is higher
Permanent partial disability: monthly pension shall
be given in lump sum if it is payable for less
than 12 months
Permanent Total Disability:
a. Complete loss of sight of both eyes

b. Loss of 2 limbs at or above the ankle or

wrists
c. Permanent complete paralysis of 2 limbs
d. Brain injury resulting to incurable imbecility or
insanity
e. Such cases as determined and approved by
SSS
Who is entitled to monthly pension following death of
member?
Upon death of retired members, primary
beneficiaries shall be entitled to pension; if
no primary beneficiaries and dies within 60
months from start of pension secondary
beneficiaries shall be entitled
If disability is partial & occurs before 36 monthly
contributions have been paid: percentage of lump sum
benefit described (equivalent to total monthly pensions
corresponding to balance of 5-yr. guaranteed period
excluding dependents pension) with due regard to degree
of disability determined by Commission
If disability is partial & occurs after 36 monthly
contributions have been paid: monthly pension for
permanent for total disability subject to following periods
5. FUNERAL BENEFITS P12,000.00 to help defray
costs of funeral expenses
6. SICKNESS BENEFITS
Who can avail?
Member who has paid at least 3 monthly
contributions in 12-month period immediately
preceding semester of sickness or injury
and is confined for more than 3 days in a
hospital with approval of SSS
Employer will advance for the benefit and
will pay for the employee

Employee shall notify employer of the fact of

his sickness or injury within 5 calendar days
after start of confinement

When employee have given notification and

employer fails to notify SSS: employer shall
have no right to recover the corresponding
daily allowance he advanced to the
employee

7. MATERNITY LEAVE BENEFITS

Who can avail?

Female member who has paid at least 3

monthly contributions in the 12-month period
immediately preceding the semester of her
childbirth or miscarriage
How much?
Entitled to 100% of her average monthly daily
salary credit for 60 days or 78 days in case
of caesarean delivery
*Maternity benefits shall only be paid for the FIRST 4
DELIVERIES OR MISCARRIAGES

If employee member gives birth or suffer

miscarriage without required contributions having
been remitted by her employer to SSS, or
without SSS having been notified by employer,
employer shall pay to SSS damages equivalent to
benefits which employee would otherwise would
have been entitled.

Pay monthly contributions

Keep abreast with SSS policies and regulations

NON-REMITTANCE/NON-REPORTING
1. Employee
Failure or refusal of the employer to pay or
remit the contributions shall not prejudice the
right of the covered employee to the benefits of
the coverage (employee is still entitled to the
benefits)
2. Employer
If the employer shall not remit to SSS the
employees contributions: liable to pay for the
contribution plus a penalty of 3% per month from
the date the contribution falls due until paid
without prejudice to criminal charges of estafa
3. Self-employed
No retroactive payment of contribution is allowed
Fine or imprisonment

8. LOAN GRANT
REPORTING REQUIREMENTS
1. EMPLOYER report immediately to SSS the names,
civil status, ages, occupations, salaries and dependents
of all his covered employees
2. SELF-EMPLOYED report to SSS within 30 days
from first day of operation, name, age, civil status,
occupation, average monthly net income and his
dependents
DUTIES

DUTIES

OF SSS MEMBERS:
Secure SSS number
Pay the monthly contributions
Ensure that their employers remit their
contributions
Pay the loan amortizations, if any
OF EMPLOYER MEMBERS:
Secure SSS number
Report to SSS his covered employees
Deduct and withhold from employees monthly
salary, employees contribution
Remit employees contribution to SSS within
first 10 days of each calendar month following the
month for which they are applicable or within
such time as the Commission may prescribe

DUTIES OF SELF-EMPLOYED MEMBERS:

Secure SSS number

PROHIBITED ACTS (without prejudice to criminal charges)

1. Whoever, for the purpose of causing any
payment to be made under this Act, or under
an agreement thereunder, where none is
authorized to be paid, shall make or cause to
be made false statement or representation as to
any compensation paid or received or whoever
makes or causes to be made any false
statement of a material fact in any claim for
any benefit payable under this Act, or
application for loan with the SSS, or whoever
makes or causes to be made any false
statement, representation, affidavit or document
in connection with such claim or loan
2. Whoever shall obtain or receive any money or
check under this Act or any agreement
thereunder, without being entitled thereto with
intent to defraud any member, employer or the
SSS
3. Whoever buys, sells, offers for sale, uses,
transfers or takes or gives in exchange, or
pledges or gives in pledge, except as
authorized in this Act or in regulations made
pursuant thereto, any stamp, coupon, ticket,
book or other device, prescribed pursuant to
Section Twenty-three hereof by the Commission
for the collection or payment of contributions
required
4. Whoever, with intent to defraud, alters, forges,
makes or counterfeits any stamp, coupon,

ticket, book or other device prescribed by the

Commission for the collection or payment of
any contribution required herein, or uses, sells,
lends, or has in his possession any such
altered, forged or counterfeited materials, or
makes, uses, sells or has in his possession
any such altered, forged, material in imitation of
the material used in the manufacture of such
stamp, coupon, ticket, book or other device
5. Whoever fails or refuses to comply with the
provisions of this Act or with the rules and
regulations promulgated by the Commission
6. Any employee of the SSS who receives or
keeps funds or property belonging, payable or
deliverable to the SSS and who shall
appropriate the same, or shall take or
misappropriate, or shall consent, or through
abandonment or negligence, shall permit any
other person to take such property or funds,
wholly or partially, or shall otherwise be guilty
of misappropriation of such funds or property
7. Any employer who, after deducting the monthly
contributions or loan amortizations from his
employee's compensation, fails to remit the said
deduction to the SSS within thirty (30) days
from the date they became due, shall be
presumed to have misappropriated such
contributions or loan amortizations

c)

Uniformed members of AFP, Bureau of Fire

Protection, Bureau of Jail Management and
Penology, PNP
d) Filipinos employed by foreign-based employers
2. VOLUNTARY COVERAGE
Who may qualify?
At least 18 yrs. old but not more than 65 yrs. old
a) Spouses who devote full time to managing
household and family affairs, unless engaged in

another vocation which is subject to mandatory

coverage

b) Filipino employees of foreign government or

international organization, or their wholly-owned
instrumentality based in the Philippines
c) Employees of an employer who is granted a
waiver or suspension of coverage by the Fund
under RA 9679
d) Leaders and members of religious groups
e) Member separated from employment, local or
abroad, or ceased to be employed but would
like to continue paying PAG-IBIG contributions
f) Public officials or employees who are not
covered by GSIS such as barangay officials
g) Other earning groups as may be determined by
the Board
MEMBERSHIP TERM: 20 years commencing from first
day of the month to which the members initial contribution
to the Fund applies; Provided: he shall have contributed
a total of 240 monthly contributions at the time of
maturity

RA 9679 (HOME DEVELOPMENT MUTUAL FUND PAGIBIG)

What is PAG-IBIG Fund?
Pagtutulungan sa Kinabukasan: Ikaw, Bangko,
Industriya at Gobyerno; strengthening the
Home Development Mutual Fund
COVERAGE:
1. COMPULSORY COVERAGE
a) Employees covered by SSS and GSIS
b) Employers covered by SSS and GSIS

Exception: when earlier terminated by reason of

retirement, disability, insanity, death, departure from the
country or other causes as may be provided by the
Board of Trustees
*Those who become members of the Fund after
effectivity of RA 9679 (July 2009) may withdraw the
total accumulated value of their contributions to the
Fund after 15th year of continuous membership; provided
that said members have no outstanding housing loans
with the Fund and such option shall not prejudice the
members continuing membership in the Fund

Resignation, layoff or suspension from

employment may not necessarily constitute ground
for membership termination, EXCEPT FOR
SUSPENSION OF CONTRIBUTION


EFFECTIVITY OF COVERAGE
a) Employer first day of business operation
b) Employee date of employment
Exceptions: In the case of AFP, BFP, BJMP, and
PNP, coverage starts from January 1, 2010

Employee shall be credited with all contributions

paid on his behalf and entitled to benefits
according to the Act
o He may continue to pay total

contributions to maintain his right to full

benefit

*PAG IBIG is not included in the computation of members

gross income

When is the commencement of membership in the Fund?

Remittance of the initial contribution to the Fund
*Actual membership in SSS is not a condition precedent
for membership in PAG-IBIG
When is employer required to register?
Employer is required to register upon date of
operation of business
When is employee required to register?
Employee should register within 30 days from
date of employment (employer should register
the employee)
When is a self-employed required to register?
Self-employed are required to register before
actual operation since it is required in the
business permit
TERMINATION OF MEMBERSHIP
Death
Retirement of Member
Insanity
*Member who has not reached the compulsory age of
retirement (65 yrs. old) may retire provided he has
no outstanding housing loan in PAG-IBIG
What is the effect of leave without pay for suspension of
employment?
Contribution shall also be suspended for that
period
What is the effect of resignation of separation from
employment?
Employees obligation to contribute ceases but
may be continued voluntarily
Employers contribution on his account ceases
Employees obligation to contribute also ceases
at the end of the month of separation

JURISDICTION ON CLAIM OF COVERAGE

Board of Trustees of HDMF
PAG-IBIG Regional Office
Adjudication and settlement of claims and
disputes and the procedures for the same on
any matters involving the interests of members
in the Fund
File a complaint to the Chief Executive Officer
When will decisions be final and executory?
Decisions shall be final and executory after 15
days from notification of decision
Appeal may be made to the HDMF
Is the PAG-IBIG contribution taxable?
NO, all contributions collected and all accruals
thereto and income or investment earnings
therefrom, as well as all supplies, equipment,
papers or documents shall be exempt from any
tax, assessment, fee, charge, or customs or
import duty; and all benefit payments made by
the Pag-IBIG Fund shall likewise be exempt
from all kinds of taxes, fees or charges, and
shall not be liable to attachments, garnishments,
levy or seizure by or under any legal or
equitable process whatsoever, either before or
after receipt by the person or persons entitled
thereto, except to pay any debt of the member
to the Fund
GROUNDS FOR WITHDRAWAL OF SAVINGS:
a) Retirement
b) Death
c) Permanent and total disability or insanity
d) Permanent departure from the country
e) Separation from service due to health reasons
f) Membership Maturity (20 years or 240 months
of continuous contribution)
g) Optional Withdrawal
h) Other causes as may be approved by the
Board