NOTES: What is the policy of the State under the SSS?

It is the policy of the State to establish, develop, promote and perfect a sound and viable taxexempt social security system suitable to the needs of the people throughout the hilippines !hich shall promote social "ustice and provide meaningful protection to members and their beneficiaries against the ha#ards of disability, sic$ness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden. Towards this end, the State shall endeavor to extend social security protection to !or$ers and their beneficiaries% &omposition of the Social Security System 1. The Secretary of Labor and Employment of his duly designated undersecretary, the SSS president. 2. Seven appointive members three !" of whom shall represent the wor#ers$ group, at least one 1" of whom shall be a woman% three !", the employers$ group, at least one 1" of whom shall be a woman% and one 1", the general public whose representative shall have ade&uate #nowledge and e'perience regarding social sec urity, to be appointed by the (resident of the (hilippines. Term of Office: The term of the appointive members shall be three !" years) (rovided, That the terms of the first si' *" appointive members shall be one 1", two 2" and three !" years for every two 2" members, respectively) (rovided, further, That they shall continue to hold office until their successors shall have been appointed and duly &ualified. Who is the appointing authority? The (resident of the +epublic of the (hilippines What are the po!ers and duties of the commission? 1. To adopt, amend and rescind, sub,ect to the approval of the (resident of the (hilippines, such rules and regulations as may be necessary to carry out the provisions and purposes of this -ct% 2. To establish a provident fund for the members which will consist of voluntary contrib utions of employers and.or employees, selfemployed and voluntary members and their earnings, for the payment of benefits to such members or their beneficiaries, sub,ect to such rules and regulations as it may promulgate and approved by the (resident of the (hilippines% !. To maintain a (rovident /und which consists of contributions made by both the SSS and its officials and employees and their earnings, for the payment 0. 2.

*.

3.

of benefits to such officials and employees or their heirs under such terms and conditions as it may prescribe% To approve restructuring proposals for the payment of due but unremitted contributions and unpaid loan amorti1ations under such terms and conditions as it may prescribe% To authori1e cooperatives registered with the cooperative development authority or associations registered with the appropriate government agency to act as collecting agents of the SSS with respect to their members) (rovided, That the SSS shall accredit the cooperative or association) (rovided, further, That the persons authori1ed to collect are bonded% To compromise or release, in whole or in part, any interest, penalty or any civil liability to SSS in connection with the investments authori1ed under Section 2*, hereof, under such terms and conditions as it may prescribe and approved by the (resident of the (hilippines% and To approve, confirm, pass upon or review any and all actions of the SSS in the proper and necessary e'ercise of its powers and duties hereinafter enumerated.

Who is an employer under SSS 'a!? -ny person, natural or ,uridical, domestic or foreign, who carries on it the (hilippines any trade, business, industry, underta#ing or activity of any #ind and uses the services of another person who is under his orders as regards the employment, e'cept the 4overnment and any of its political subdivisions, branches or instrumentalities, including corporations owned or controlled by the 4overnment) (rovided, That a selfemployed person shall be both employee and employer at the same time. Who is an employee under SSS 'a!5 -ny person who performs services for an employer in which either or both mental and physical efforts are used and who receives compensation for such services, where there is an employeremployee relationship) (rovided, That a self employed person shall be both employee and employer at the same time. Who are deemed dependents? The dependent shall be the following) 1. The legal spouse entitled by law to receive support from the member% 2. The legitimate, legitimated, or legally adopted, and illegitimate child who is unmarried, not gainfully employed and has not reached twentyone years 21" of age, or if over twentyone 21" years of age, he is congenitally or while still a minor has been permanently incapacitated a nd incapable of self support, physically or mentally% and !. The parent who is receiving regular support from the member.

Who are sub"ect to compulsory coverage under the SSS? Employees not over si'ty *6" years of age and their employers, domestic helpers earning not less than one thousand pesos (1,666.66" a month, as well as self7employed individuals. When does compulsory coverage of an employer, an employee, or self( employed person ta$e effect? 8ompulsory coverage of the employer shall ta#e effect on the first day of his occupation, that of the employee on the day of his employment, provided that the compulsory coverage of the self7employed person shall ta#e effect upon his registration with the SSS.

2.

organi1ation or their whollyowned instrumentality employing wor#ers in the (hilippines or employing /ilipinos outside of the (hilippines, may enter into an agreement with the (hilippine 4overnment for the inclusion of such employees in the SSS e'cept those already covered by their respective civil service retirement systems) (rovided, furthe r, That the terms of such agreement shall conform with the provisions of this -ct on coverage and amount of payment of contributions and benefits) (rovided, finally, That the provisions of this -ct shall be supplementary to any such agreement% and Such other services performed by temporary and other employees which may be e' cluded by regulation of the 8ommission. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the services of said contr actors.

What is )self(employed* individual? 9nder Sec. :7- of the SSS Law, a self7employed person is one whose income is not derived from employment such as but not limited to the following) 1. -ll self7employed professionals% 2. (artners and single proprietors of businesses% !. -ctors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the term ;employee;% in Sec. < d" of this -ct% 0. (rofessional athletes, coaches, trainers and ,oc#eys% and 2. Individual farmers and fishermen. Who are sub"ect to a voluntary coverage under the SSS? 1. Spouses who devote full time to managing the household and family affairs, unless they are also engaged in other vocation or employment which is sub,ect to mandatory coverage. 2. /ilipinos recruited by foreignbased employers for employment abroad.

What is the effect of an employee+s separation of employment upon his membership in the SSS? =hen an employee under compulsory coverage is separated from employment, his employer$s contribution on his account and his obligation to pay contributions arising from that employment shall cease at the end of the month of separation, but said employee shall be credited with all contributions paid on his behalf and entitled to benefits according to the provisions of this -ct. >e may, however, continue to pay the total contributions to maintain his right to full benefit. This is following the ?once a member, always a member rule. What is the effect of ,nterruption of -usiness or rofessional ,ncome? If the selfemployed member reali1es no income in any given month, he shall not be re&uired to pay contributions for that month. >e may, however, be allowed to continue paying contributions under the same rules and regulations applicable to a separated employee member) (rovided, That no retroactive payment of contributions shall be allowed other than as prescribed under Section Twentytwo- hereof.

What are the $inds of employment !hich are excepted from compulsory coverage under the SSS 'a!? 1. Employment purely casual and not for the purpose of occupation or business of the employer% 2. Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel is outside the (hilippines% !. Service performed in the employ of the (hilippine 4overnment or instrumentality or agency thereof% 4. Service performed in the employ of a foreign government or international organi1ation, or their whollyowned instrumentality) (rovided, however, That this e'emption notwithstanding, any foreign government, international

Who are the beneficiaries? The dependent spouse until he or she remarries, the dependent legitimate, legitimated or legally adopted, and illegitimate children, who shall be the primary beneficiaries of the member) (rovided, That the dependent illegitimate children shall be entitled to fifty percent 26@" of the share of the legitimate, legitimated or legally adopted children) (rovided, further, That in the absence of the dependent legitimate, legitimated or legally adopted children of the member, his.her dependent illegitimate children shall be entitled to one hundred percent 166@" of the benefits.

In their absence, the dependent parents who shall be the secondary beneficiaries of the member. In the absence of all of the foregoing, any other person designated by the member as his.her secondary beneficiary. What are the benefits available to employees covered by the SSS 'a!? 1. Sic#ness benefits Sec. 10" 2. (ermanent disability benefits Sec. 1!7-" !. Aaternity leave benefit Sec. 107-" 0. +etirement benefits Sec. 127B" 2. Ceath and funeral benefits Secs. 1! D 1!7B" *. Loans Sec. 2*" .etirement -enefits .e/uisites: 1. member who has paid at least one hundred twenty 126" monthly contributions prior to the semester of retirement and 2. has reached the age of si'ty *6" years and is already separated from employment or has ceased to be selfemployed or 3. has reached the age of si'tyfive *2" years, shall be entitled for as long as he lives to the monthly pension) 0. (rovided, That he shall have the option to receive his first eighteen 1<" monthly pensions in lump sum discounted at a preferential rate of interest to be determined by the SSS. .ule on Settlement of 0isputes: Social Security &ommission -ny dispute arising under this -ct with respect to coverage, benefits, contributions and penalties thereon or any other matter related thereto, shall be cogni1able by the 8ommission, and any case filed with respect thereto shall be heard by the 8ommission, or any of its members, or by hearing officers duly authori1ed by the 8ommission and decided within the mandatory period of twenty 26" days after the submission of the evidence. The filing, determination and settlement of disputes shall be governed by the rules and regulations promulgated by the 8ommission. 1ppeal to &ourts: When is the decision final and executory? -ny decision of the 8ommission, in the absence of an appeal therefrom as herein provided, shall become final and e'ecutory fifteen 12" days after the date of notification. When shall "udicial revie! be permitted? Eudicial review thereof shall be permitted only after any party claiming to be aggrieved thereby has e'hausted his remedies before the 8ommission. &ourt .evie!: When may be revie!ed by the &ourt of 1ppeal? The decision of the 8ommission upon any disputed matter may be reviewed both upon the law and the facts by the 8ourt of -ppeals. /or the purpose of such review the procedure concerning appeals from the +egional Trial 8ourt shall be followed as far as practicable and consistent with the purposes of this -ct. -ppeal from a decision of the 8ommission must be ta#en within fifteen 12" days from notification of such decision. =hen may be reviewed by the Supreme 8ourt5 If the decision of the 8ommission involves only &uestion of law, the same shall be r eviewed by the Supreme 8ourt. Notes: Fo appeal bond shall be re&uired. The case shall be heard in a summary manner, and shall ta#e precedence over all cases, e'cept that in the Supreme 8ourt, criminal cases wherein life imprisonment or death has been imposed by the trial court shall ta#e precedence. Fo appeal shall act as supersedeas or a stay of the order of the 8ommission unless the 8ommission itself, or the 8ourt of -ppeals or the Supreme 8ourt, shall so order.

Execution of 0ecisions of the &ommission The 8ommission may, motu proprio or on motion of any interested party, issue a writ of e'ecution to enforce any of its decisions or awards, after it has become final and e'ecutory, in the same manner as the decision of the +egional Trial 8ourt by directing the city or provincial sheriff or the sheriff whom it may appoint to enforce such final decision or e'ecute such writ% and any person who shall fail or refuse to comply with such decision, award or writ, after being re&uired to do so shall, upon application by the 8ommission, pursuant to +ule 31 of the +ules of 8ourt, be punished for contempt.