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REPUBLIC OF THE PHILIPPINES

CONGRESS OF THE PHILIPPINES
METRO MANILA

REPUBLIC ACT NO. 9994

AN ACT GRANTING ADDITIONAL BENEFITS AND PRIVILEGES TO SENIOR CITIZENS, FURTHER AMENDING REPUBLIC ACT
NO. 7432, AS AMENDED, OTHERWISE KNOWN AS “AN ACT TO MAXIMIZE THE CONTRIBUTION OF SENIOR CITIZENS TO
NATION BUILDING, GRANT BENEFITS AND SPECIAL PRIVILEGES AND FOR OTHER PURPOSES”

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Title. – This Act Shall be known as the “Expanded Senior Citizens Act of 2010.”

Sec. 2. Section 1 of Republic Act No. 7432, as amended by Republic Act No. 9257, otherwise known as the “Expanded Senior Citizens
Act of 2003”, is hereby further amended to read as follows:

“SECTION 1. Declaration of Policies and Objectives. – As provided in the Constitution of the Republic of the Philippines, it is the
declared policy of the State to promote a just and dynamic social order that will ensure the prosperity and independence of the nation
and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of
living and an improved quality of life. In the Declaration of Principles and State Policies in Article II, Sections 10 and 11, it is further
declared that the State shall provide social justice in all phases of national development and that the State values the dignity of every
human person and guarantees full respect for human rights.

“Article XIII, Section 11 of the Constitution provides that the State shall adopt an integrated and comprehensive approach to health
development which shall endeavor to make essential goods, health and other social services available to all the people at affordable
cost. There shall be priority for the needs of the underprivileged, sick, elderly, disabled, women and children. Article XV, Section 4 of
the Constitution Further declares that it is the duty of the family to take care of its elderly members while the State may design
programs of social security for them.

“Consistent with these constitutional principles, this Act shall serve the following objectives:

“(a) To recognize the rights of senior citizens to take their proper place in society and make it a concern of the family, community, and
government;

“(b) To give full support to the improvement of the total well-being of the elderly and their full participation in society, considering that
senior citizens are integral part of Philippine society;

“(c) To motivate and encourage the senior citizens to contribute to nation building;

“(d) To encourage their families and the communities they live with to reaffirm the valued Filipino tradition of caring for the senior
citizens;

“(e) To provide a comprehensive health care and rehabilitation system for disabled senior citizens to foster their capacity to attain a
more meaningful and productive ageing; and

“(f) To recognize the important role of the private sector in the improvement of the welfare of senior citizens and to actively seek their
partnership.

“In accordance with these objectives, this Act shall:

“(1) establish mechanisms whereby the contributions of the senior citizens are maximized;

“(2) adopt measures whereby our senior citizens are assisted and appreciated by the community as a whole;

“(3) establish a program beneficial to the senior citizens, their families and the rest of the community they serve: and

“(4) establish community-based health and rehabilitation programs for senior citizens in every political unit of society.”

Sec. 3. Section 2 of Republic Act No. 7432, as amended by Republic Act No. 9257, otherwise known as the Expanded Senior Citizens
Act of 2003″, is hereby further amended to read as follows:

SEC. 2. Definition of terms. – For purposes of this Act, these terms are defined as follows:

“(a) Senior citizen or elderly refers to any resident citizen of the Philippines at least sixty (60) years old;

“(b) Geriatrics refer to the branch of medical science devoted to the study of the biological and physical changes and the diseases of
old age;

“(c) Lodging establishment refers to a building, edifice, structure, apartment or house including tourist inn, apartelle, motorist hotel, and
pension house engaged in catering, leasing or providing facilities to transients, tourists or travelers;

“(d) Medical Services refer to hospital services, professional services of physicians and other health care professionals and diagnostics
and laboratory tests that the necessary for the diagnosis or treatment of an illness or injury;

“(e) Dental services to oral examination, cleaning, permanent and temporary filling, extractions and gum treatments, restoration,
replacement or repositioning of teeth, or alteration of the alveolar or periodontium process of the maxilla and the mandible that are
necessary for the diagnosis or treatment of an illness or injury;

“(f) Nearest surviving relative refers to the legal spouse who survives the deceased senior citizen: Provided, That where no spouse
survives the decedent, this shall be limited to relatives in the following order of degree of kinship: children, parents, siblings,
grandparents, grandchildren, uncles and aunts;

“(g) Home health care service refers to health or supportive care provided to the senior citizen patient at home by licensed health care
professionals to include, but not limited to, physicians, nurses, midwives, physical therapist and caregivers; and

“(h) Indigent senior citizen, refers to any elderly who is frail, sickly or with disability, and without pension or permanent source of
income, compensation or financial assistance from his/her relatives to support his/her basic needs, as determined by the Department of
Social Welfare and development (DSWD) in consultation with the National Coordinating and Monitoring Board.”

Sec. 4 Section 4 of Republic Act No. 7432, as amended by Republic Act No. 9257, otherwise known as the “Expanded Senior Citizens
Act of 2003”, is hereby further amended to read as follows:

“SEC. 4. Privileges for the Senior Citizens. –

The senior citizens shall be entitled to the following:

“(a) the grant of twenty percent (20%) discount and exemption from the value -added tax (VAT), if applicable, on the sale of the
following goods and services from all establishments, for the exclusive use and enjoyment or availment of the senior citizen

“(1) on the purchase of medicines, including the purchase of influenza and pnuemococcal vaccines, and such other essential medical
supplies, accessories and equipment to be determined by the Department of Health (DOH).

“The DOH shall establish guidelines and mechanism of compulsory rebates in the sharing of burden of discounts among retailers,
manufacturers and distributors, taking into consideration their respective margins;

“(2) on the professional fees of attending physician/s in all private hospitals, medical facilities, outpatient clinics and home health care
services;

“(3) on the professional fees of licensed professional health providing home health care services as endorsed by private hospitals or
employed through home health care employment agencies;

“(4) on medical and dental services, diagnostic and laboratory fees in all private hospitals, medical facilities, outpatient clinics, and
home health care services, in accordance with the rules and regulations to be issued by the DOH, in coordination with the Philippine
Health Insurance Corporation (PhilHealth);

“(5) in actual fare for land transportation travel in public utility buses (PUBs), public utility jeepneys (PUJs), taxis, Asian utility vehicles
(AUVs), shuttle services and public railways, including Light Rail Transit (LRT), Mass Rail Transit (MRT), and Philippine National
Railways (PNR);

“(6) in actual transportation fare for domestic air transport services and sea shipping vessels and the like, based on the actual fare and
advanced booking;

“(7) on the utilization of services in hotels and similar lodging establishments, restaurants and recreation centers;

“(8) on admission fees charged by theaters, cinema houses and concert halls, circuses, leisure and amusement; and

“(9) on funeral and burial services for the death of senior citizens;

“(b) exemption from the payment of individual income taxes of senior citizens who are considered to be minimum wage earners in
accordance with Republic Act No. 9504;

“(c) the grant of a minimum of five percent (5%) discount relative to the monthly utilization of water and electricity supplied by the public
utilities: Provided, That the individual meters for the foregoing utilities are registered in the name of the senior citizen residing
therein: Provided, further, That the monthly consumption does not exceed one hundred kilowatt hours (100 kWh) of electricity and thirty
cubic meters (30 m3) of water: Provided, furthermore, That the privilege is granted per household regardless of the number of senior
citizens residing therein;

“(d) exemption from training fees for socioeconomic programs;

“(e) free medical and dental services, diagnostic and laboratory fees such as, but not limited to, x-rays, computerized tomography scans
and blood tests, in all government facilities, subject to the guidelines to be issued by the DOH in coordination with the PhilHealth;

“(f) the DOH shall administer free vaccination against the influenza virus and pneumococcal disease for indigent senior citizen patients;

“(g) educational assistance to senior citizens to pursue pot secondary, tertiary, post tertiary, vocational and technical education, as well
as short-term courses for retooling in both public and private schools through provision of scholarships, grants, financial aids, subsides
and other incentives to qualified senior citizens, including support for books, learning materials, and uniform allowances, to the extent
feasible: Provided, That senior citizens shall meet minimum admission requirements;

“(h) to the extent practicable and feasible, the continuance of the same benefits and privileges given by the Government Service
Insurance System (GSIS), the Social Security System (SSS) and the PAG-IBIG, as the case may be, as are enjoyed by those in actual
service;

“(i) retirement benefits of retirees from both the government and the private sector shall be regularly reviewed to ensure their continuing
responsiveness and sustainability, and to the extent practicable and feasible, shall be upgraded to be at par with the current scale
enjoyed by those in actual service;

“(j) to the extent possible, the government may grant special discounts in special programs for senior citizens on purchase of basic
commodities, subject to the guidelines to be issued for the purpose by the Department of Trade and Industry (DTI) and the Department
of Agriculture (DA);

“(k) provision of express lanes for senior citizens in all commercial and government establishments; in the absence thereof, priority shall
be given to them; and

“(l) death benefit assistance of a minimum of Two thousand pesos (Php2, 000.00) shall be given to the nearest surviving relative of a
deceased senior citizen which amount shall be subject to adjustments due to inflation in accordance with the guidelines to be issued by
the DSWD.cralaw

“In the availment of the privileges mentioned above, the senior citizen, or his/her duly authorized representative, may submit as proof of
his/her entitled thereto any of the following:

“(1) an identification card issued by the Office of the Senior Citizen Affairs (OSCA) of the place where the senior citizen resides:
Provided, That the identification card issued by the particular OSCA shall be honored nationwide;

“(2) the passport of the senior citizen concerned; and

“(3) other documents that establish that the senior citizen is a citizen of the Republic and is at least sixty (60) years of age as further
provided in the implementing rules and regulations.

“In the purchase of goods and services which are on promotional discount, the senior citizen can avail of the promotional discount or
the discount provided herein, whichever is higher.cralaw

“The establishment may claim the discounts granted under subsections (a) and (c) of this section as tax deduction based on the cost of
the goods sold or services rendered: Provided, That the cost of the discount shall be allowed as deduction from gross income for the
same taxable year that the discount is granted: Provided, further, That the total amount of the claimed tax deduction net of VAT, if
applicable, shall be included in their gross sales receipts for tax purposes and shall be subject to proper documentation and to the
provisions of the National Internal Revenue Code (NICR), as amended.”

Sec. 5. Section 5 of the same Act, as amended, is hereby further amended to read as follows:

“SEC. 5. Government Assistance. – The government shall provide the following:

“(a) Employment

“Senior citizens who have the capacity and desire to work, or be re-employed, shall be provided information and matching services to
enable them to be productive members of society. Terms of employment shall conform with the provisions of the Labor Code, as
amended, and other laws, rules and regulations.

“Private entities that will employ senior citizens as employees, upon the effectivity of this Act, shall be entitled to an additional deduction
from their gross income, equivalent to fifteen percent (15%) of the total amount paid as salaries and wages to senior citizens, subject to
the provision of Section 34 of the NIRC, as amended: Provided, however, That such employment shall continue for a period of at least
six (6) months: Provided, further, That the annual income of the senior citizen does not exceed the latest poverty threshold as
determined by the National Statistical Coordination Board (NSCB) of the National Economic and Development Authority (NEDA) for that
year.

“The Department of Labor and Employment (DOLE), in coordination with other government agencies such as, but not limited to, the
Technology and Livelihood Resource Center (TLRC) and the Department of Trade and Industry (DTI), shall assess, design and
implement training programs that will provide skills and welfare or livelihood support for senior citizens.

“(b) Education

“The Department of Education (DepED), the Technical Education and Skills Development Authority (TESDA) and the Commission on
Higher Education (CHED), in consultation with nongovernmental organizations (NGOs) and people’s organizations (POs) for senior
citizens, shall institute programs that will ensure access to formal and nonformal education.

“(c) Health

“The DOH, in coordination with local government units (LGUs), NGOs and POs for senior citizens, shall institute a national health
program and shall provide an integrated health service for senior citizens. It shall train community-based health workers among senior
citizens and health personnel to specialize in the geriatric care and health problems of senior citizens.

“The national health program for senior citizens shall, among others, be harmonized with the National Prevention of Blindness Program
of the DOH.

“Throughout the country, there shall be established a “senior citizens’ ward” in every government hospital. This geriatric wa rd shall be
for the exclusive use of senior citizens who are in need of hospital confinement by reason of their health conditions. However, when
urgency of public necessity purposes so require, such geriatric ward may be used for emergency purposes, after which, such “senior
citizens’ ward” shall be reverted to its nature as geriatric ward.

“(d) Social Services

“At least fifty percent (50%) discount shall be granted on the consumption of electricity, water, and telephone by the senior citizens
center and residential care/group homes that are government-run or non-stock, non-profit domestic corporation organized and operated
primarily for the purpose of promoting the well-being of abandoned, neglected, unattached, or homeless senior citizens, subject to the
guidelines formulated by the DSWD.

“(1) “self and social enhancement services” which provide senior citizens opportunities for socializing, organizing, creative expression,
and self-improvement;

“(2) “after care and follow-up services” for citizens who are discharged from the homes or institutions for the aged, especially those who
have problems of reintegration with family and community, wherein both the senior citizens and their families are provided with
counseling;

“(3) “neighborhood support services” wherein the community or family members provide caregiving services to their frail, sick, or
bedridden senior citizens; and

“(4) “substitute family care ” in the form of residential care or group homes for the abandoned, neglected, unattached or homeless
senior citizens and those incapable of self-care.

“(e) Housing

“The national government shall include in its national shelter program the special housing needs of senior citizens, such as
establishment of housing units for the elderly.

“(f) Access to Public Transport

“The Department of Transportation and Communications (DOTC) shall develop a program to assist senior citizens to fully gain access
to public transport facilities.

“(g) Incentive for Foster Care

“The government shall provide incentives to individuals or nongovernmental institution caring for or establishing homes, residential
communities or retirement villages solely for, senior citizens, as follows:

“(1) realty tax holiday for the first five (5) years starting from the first year of operation; and

“(2) priority in the construction or maintenance of provincial or municipal roads leading to the aforesaid home, residential community or
retirement village.

“(h) Additional Government Assistance

“(1) Social Pension

“Indigent senior citizens shall be entitled to a monthly stipend amounting to Five hundred pesos (Php500.00) to augment the daily
subsistence and other medical needs of senior citizens, subject to a review every two (2) years by Congress, in consultation with the
DSWD.

“(2) Mandatory PhilHealth Coverage

“All indigent senior citizens shall be covered by the national health insurance program of PhilHealth. The LGUs where the indigent
senior citizens resides shall allocate the necessary funds to ensure the enrollment of their indigent senior citizens in accordance with
the pertinent laws and regulations.

“(3) Social Safety Nets

“Social safety assistance intended to cushion the effects of economics shocks, disasters and calamities shall be available for senior
citizens. The social safety assistance which shall include, but not limited to, food, medicines, and financial assistance for domicile
repair, shall be sourced from the disaster/calamity funds of LGUs where the senior citizens reside, subject to the guidelimes to be
issued by the DSWD.”

Sec. 6. Section 6 of the same Act, as amended, is heeby further amended to read as follows:

SEC. 6. The Office for Senior Citizens Affairs (OSCA). – There shall be established in all cities and municipalities an OSCA to be
headed by a senior citizen who shall be appointed by the mayor for a term of three (3) years without reappointment but without
prejudice to an extension if exigency so requires. Said appointee shall be chosen from a list of three (3) nominees as recommended by
a general assembly of senior citizens organizations in the city or municipality.

“The head of the OSCA shall be appointed to serve the interest of senior citizens and shall not be removed or replaced except for
reasons of death permanent disability or ineffective performance of his duties to the detriment of fellow senior citizens.

franchise and other similar privileges granted to any person. The OSCA shall work together and establish linkages with accredited NGOs Pos and the barangays in their respective areas. “(c) To maintain and regularly update on a quarterly basis the list of senior citizens and to issue national individual identification cards. which shall be valid anywhere in the country. activities and programs for senior citizens. organization or any similar entity. the proper authorities may also cause the cancellation or revocation of the business permit.” Sec. permit to operate. Section 10 of the same Act. and after due notice and hearing. “(f) To report to the mayor. the officials thereof directly involved such as the president. “(b) To draw up a list of available and required services which can be provided by the senior citizens. he/she shall be deported immediately after service of sentence. the Provincial Prosecutor’s Office. “(b) For any subsequent violation. 11. in coordination with the Social Welfare and Development Office. Representatives of NGOs shall serve a period of tree (3) years. free of charge. is hereby further amended to read as follows: “SEC. establishment or business entity that fails to abide by the provisions of this Act.00). business entity. “The head of the OSCA shall be assisted by the City Social Welfare and Development officer or by the Municipal Social Welfare and Development Officer.000. general manager. as amended. Penalties. and “(c) Members: “(1) the Secretary of the DOJ or an authorized representative. – Any person who refuses to honor the senior citizen card issued by this the government or violates any provision of this Act shall suffer the following penalties: “(a) For the first violation. partnership. and “(g) To assist the senior citizens in filing complaints or charges against any individual. 10. – A National Coordinating and Monitoring Board shall be established which shall be composed of the following: “(a) Chairperson – the Secretary of the DSWD or an authorized representative.” Sec. or the municipal circuit trial court. “If the offender is an alien or a foreigner.000. “The OSCA shall have the following functions: “(a) To plan.00).000. 7. the regional or the municipal trial court. institution. “Upon filing of an appropriate complaint. establishments. is hereby further amended to read as follows: “SEC.00) but not exceeding Two hundred thousand pesos (Php200.000. imprisonment of not less than two (2) years but not more than six (6) years and a fine of not less than Fifty thousand pesos (Php50. or agency refusing to comply with the privileges under this Act before the Department of Justice (DOJ). “If the offender is a corporation.00). “(d) To serve as a general information and liason center for senior citizens. 8. or such other officer charged with the management of the business affairs shall be liable therefor. institutions or agency found violating any provision of this Act. business entity. “(3) the Secretary of the DTI or an authorized representative.000. implement and monitor yearly work programs in pursuance of the objectives of this Act.00) but not more than One hundred thousand pesos (Php100. “(2) the Secretary of the DOH or an authorized representative.00) but not exceeding One hundred thousand pesos (Php100. “The Office of the Mayor shall exercise supervision over the OSCA relative to their plans. imprisonment of not less than two (2) years but not more than six (6) years and a fine of not less than One Hundred thousand pesos (Php100.“The head of the OSCA shall be entitled to receive an honorarium of an amount at least equivalent to Salary Grade 10 to be approved by the LGU concerned. any individual.000. establishments. managing partner. the municipal trial court in cities. “(e) To monitor compliance of the provisions of this Act particularly the grant of special discounts and privileges to senior citizens. and (4) representatives from five (5) NGOs for senior citizens which are duly accredited by the DSWD and have service primarily for senior citizens. . Monitoring and Coordinating Mechanism. “(b) Vice Chairperson – the Secretary of the Department of the Interior and Local Government (DILG) or an authorized representative. and “(c) Any person who abuses the privileges granted herein shall be punished with imprisonment of not less than six (6) months and a fine of not less than Fifty thousand pesos (Php50. as amended. Section 11 of the same Act.

Sec. – This Act shall take effect fifteen (15) days its complete publication n the Official Gazette or in at least two (2) newspapers of general circulation. Effectivity. further. THEIR FAMILIES AND OVERSEAS FILIPINOS IN DISTRESS. Repealing Clause. 10022 AN ACT AMENDING REPUBLIC ACT NO. to carry out the objectives of this Act. otherwise known as the “Migrant Workers and Overseas Filipinos Act of 1995. the State shall. Sec. Implementing Rules and Regulations. (e). the CHED. is hereby amended to read as follows: “(a) “Overseas Filipino worker” refers to a person who is to be engaged. and . Section 4 of Republic Act No. 10. the NEDA. it is imperative that an effective mechanism be instituted to ensure that the rights and interest of distressed overseas Filipinos. 8042. as amended by Republic Act No. continuously monitor international conventions. is engaged or has been engaged in a remunerated activity in a state of which he or she is not a citizen or on board a vessel navigating the foreign seas other than a government ship used for miliatry or non-commercial purposes or on an installation located offshore or on the high seas. The significant contribution of recruitment and manning agencies shall from part this partnership. The government shall provide them free and accessible skills development and enhancement programs. as amended. in consultation with the Department of Finance. (g) and (h) of Section 2 of Republic Act. Pursuant to this and as soon as practicable.” “(g) The State recognizes that the most effective tool for empowerment is the possession of skills by migrant workers. 7432. 4. in particular. at all times. The State shall cooperate with them in a spirit of trust and mutual respect. 12. workers associations. That the funds to be used for the national health program and for the vaccination of senior citizens in the first year of the DOH and thereafter. 8042. NGOs and Pos to serve as resource persons as the need arises. in general. For national government agencies. “(b) It is a signatory to and/or a ratifier of multilateral conventions. Appropriations. FURTHER IMPROVING THE STANDARD OF PROTECTION AND PROMOTION OF THE WELFARE OF MIGRANT WORKERS. as a line item under the under the DOH budget in the subsequent General Appropriations Act (GAA): Provided. – The State shall allow the deployment of overseas Filipino workers only in countries where the rights of Filipino migrant workers are protected. as amended. Sec. Separability Clause. and endeavor to enter into bilateral agreements with countries hosting overseas Filipino workers. in particular.” is hereby amended to read as follows: “(a) In the pursuit of an independent foreign policy and while considering national sovereignty. Deployment of Migrant Workers. the government shall deploy and/or allow the deployment only of skilled Filipino workers. Paragraphs (a). – The Necessary appropriations for the operation and maintenance of the OSCA shall be appropriated and approved by the LGUs concerned. the Department of Tourism. the DILG. and five (5) NGOs or POs for the senior citizens duly accredited by the DSWD. No. – Within sixty (60) days from theeffectivity of this Act. to be used interchangeably with migrant worker. AS AMENDED. including migrant workers. including migrant workers. the Housing and Urban Development Coordinating Council (HUDCC).” Sec. adopt/be signatory to and ratify those that guarantee protection to our migrant workers. Section 3. are adequately protected and safeguarded. The guidelines pursuant to Section 4(a)(i) shall be established by the DOH within sixty (60) days upon the effectivity of this Act. the DOJ. as amended. 8042. 11. That the monthly social pension for indigent senior citizens in the first year of implementation shall be added to the regular appropriations of the DSWD budget in the subsequent GAA. – If any part or provision of this Act shall be declared unconstitutional and invalid. the DOLE. the DepED.” Section 2. 9. trade unions. and Filipino migrant workers. OTHERWISE KNOWN AS THE MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT OF 1995. the Secretary of the DSWD shall formulate and adopt amendments to the existing rules and regulations implementing Republic Act No. The government recognizes any of the following as a guarantee on the part of the receiving country for the protection of the rights of overseas Filipino workers: “(a) It has existing labor and social laws protecting the rights of workers. the requirements to implement the provisions of this Act shall be included in their respective budgets: Provided. such 18 declaration shall not invalidate other parts thereof which shall remain in full force and effect. whichever comes earlier REPUBLIC ACT No. in general. 9257. Sec. AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: Section 1. 13. – All law.” Section 3. In this regard. stakeholders and their similar entities duly recognized as legitimate.“The Board may call on other government agencies. the DOH.” “(h) The State recognizes non-governmental organizations. and Filipino migrant workers. Resource person have no right to vote in the National Coordinating and Monitoring Board. executive orders. national interest and the right to self-determination paramount in its relations with other states. is hereby amended to rerad as follows: “SEC. uphold the dignity of its citizens whether in country or overseas. the TESDA.” “(e) Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any person by reason of poverty. declarations or resolutions relating to the protection of workers. whether regular/documented or irregular/undocumented. paragraph (a) of Republic Act No. 8042. rules and regulations or any part hereof inconsistent herewith are deemed repealed or modified accordingly. the DTI. territorial integrity. are partners of the State in the protection of Filipino migrant workers and in the promotion of their welfare. the DOTC.

or for any other reasons. may. utilizing. or for the purpose of documenting hired workers with the POEA. promising or advertising for employment abroad. “The members of the POEA Governing Board who actually voted in favor of an order allowing the deployment of migrant workers without any of the aforementioned guarantees shall suffer the penalties of removal or dismissal from service with disqualification to hold any appointive public office for five (5) years. which include the act of reprocessing workers through a job order that pertains to nonexistent work. information or document or commit any act of misrepresentation for the purpose of securing a license or authority under the Labor Code. offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged. conditions and requirements. (b) and (c) hereof. 8042. or work with a different employer whether registered or not with the POEA.“(c) It has concluded a bilateral agreement or arrangement with the government on the protection of the rights of overseas Filipino Workers: Provided. “(b) To furnish or publish any false notice or information or document in relation to recruitment or employment. “In the absence of a clear showing that any of the aforementioned guarantees exists in the country of destination of the migrant workers. hiring. “(l) Failure to actually deploy a contracted worker without valid reason as determined by the Department of Labor and Employment. whether a non-licensee. “(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality or to the dignity of the Republic of the Philippines. That the receiving country is taking positive. “The State shall likewise allow the deployment of overseas Filipino workers to companies and contractors with international operations: Provided. or procuring workers and includes referring. other than those authorized under the Labor Code and its implementing rules and regulations. “(i) To substitute or alter to the prejudice of the worker. licensee or holder of authority: “(a) To charge or accept directly or indirectly any amount greater than that specified in the schedule of allowable fees prescribed by the Secretary of Labor and Employment. “(h) To fail to submit reports on the status of employment. or the convention/declaration/resolution.” Section 5. or the bilateral agreement/arrangement which protect the rights of migrant workers. Definition. after consultation with the Department of Foreign Affairs. – For purposes of this Act. as amended. Section 5 of Republic Act No. testimony. Further. It shall likewise include the following acts. “(e) To influence or attempt to influence any person or entity not to employ any worker who has not applied for employment through his agency or who has formed. “(d) To include or attempt to induce a worker already employed to quit his employment in order to offer him another unless the transfer is designed to liberate a worker from oppressive terms and conditions of employment. “The State shall also allow the deployment of overseas Filipino workers to vessels navigating the foreign seas or to installations located offshore or on high seas whose owners/employers are compliant with international laws and standards that protect the rights of migrant workers. “(k) To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations. as amended. contract services. otherwise known as the Labor Code of the Philippines: Provided. is hereby amended to read as follows: “SEC. 442. Section 6 of Republic Act No. separation from jobs. transporting. 5. 8042. illegal recruitment shall mean any act of canvassing. “(j) For an officer or agent of a recruitment or placement agency to become an officer or member of the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the management of travel agency. the Department of Foreign Affairs. terminate or impose a ban on the deployment of migrant workers.” Section 4. “For this purpose. . “(c) To give any false notice. concrete measures to protect the rights of migrant workers in furtherance of any of the guarantees under subparagraphs (a). in any manner. the POEA Governing Board. or to make a worker pay or acknowledge any amount greater than that actually received by him as a loan or advance. That they are compliant with standards. as embodied in the employment contracts prescribed by the POEA and in accordance with internationally-accepted standards. when undertaken by non-licensee or non-holder of authority contemplated under Article 13(f) of Presidential Decree No. through its foreign posts. the government official or employee responsible for the issuance of the permit or for allowing the deployment of migrant workers in violation of this section and in direct contravention of an order by the POEA Governing Board prohibiting deployment shall be meted the same penalties in this section. joined or supported. departures and such other matters or information as may be required by the Secretary of Labor and Employment. remittance of foreign exchange earnings. placement vacancies. or has contacted or is supported by any union or workers’ organization. no permit for deployment shall be issued by the Philippine Overseas Employment Administration (POEA). 6. employment contracts approved and verified by the Department of Labor and Employment from the time of actual signing thereof by the parties up to and including the period of the expiration of the same without the approval of the Department of Labor and Employment. contracting. is hereby amended to read as follows: “SEC. specifying therein the pertinent provisions of the receiving country’s labor/social law. as amended. work different from the actual overseas work. at any time. in pursuit of the national interest or when public welfare so requires. whether for profit or not. non-holder. – Notwithstanding the provisions of Section 4 hereof. That any such non-licensee or non-holder who. Termination or Ban on Deployment. enlisting. shall issue a certification to the POEA. whether committed by any person.

seminar. he or she shall. which will be used for payment of legal and allowable placement fees and make the migrant worker issue. premium or other insurance related charges. the affidavits and testimonies of operatives or personnel from the Department of Labor and Employment.000. “In addition to the acts enumerated above. and “(7) For a recruitment/manning agency or a foreign principal/employer to pass on the overseas Filipino worker or deduct from his or her salary the payment of the cost of insurance fees. “The persons criminally liable for the above offenses are the principals.000. entities or persons.“(m) Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment. the POEA Administrator or their duly authorized representatives. “(b) The penalty of life imprisonment and a fine of not less than Two million pesos (P2.000.000. be deported without further proceedings. “Provided. in cases where the deployment does not actually take place without the worker’s fault.000. Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage.00). postdated checks in relation to the said loan. or any aggrieved person may initiate the corresponding criminal action with the appropriate office.000. “(5) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to undergo training. “Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more persons conspiring or confederating with one another. 7. instruction or schooling of any kind only from specifically designated institutions. management or direction of their business who are responsible for the commission of the offense and the responsible employees/agents thereof shall be liable.000. either personally or through a guarantor or accommodation party.000. POEA and other law enforcement agencies who witnessed the acts constituting the offense shall be sufficient to prosecute the accused. as amended. the public prosecutors of the Department of Justice shall collaborate with the anti-illegal recruitment branch of the POEA and. “(6) For a suspended recruitment/manning agency to engage in any kind of recruitment activity including the processing of pending workers’ applications. 8042. the officers having ownership. For this purpose. allow the POEA lawyers to take the lead in the prosecution. “The filing of an offense punishable under this Act shall be without prejudice to the filing of cases punishable under other existing laws. the Secretary of Labor and Employment. “In the prosecution of offenses punishable under this section.000. it shall also be unlawful for any person or entity to commit the following prohibited acts: “(1) Grant a loan to an overseas Filipino worker with interest exceeding eight percent (8%) per annum.” Section 6.000. The POEA lawyers who act as prosecutors in such cases shall be entitled to receive additional allowances as may be determined by the POEA Administrator. in certain cases.000.00) nor more than Five million pesos (P5. rules or regulations. as provided under the compulsory worker’s insurance coverage. – “(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not less than twelve (12) years and one (1) day but not more than twenty (20) years and a fine of not less than One million pesos (P1. except in the case of a seafarer whose medical examination cost is shouldered by the principal/shipowner. “In the filing of cases for illegal recruitment or any of the prohibited acts under this section. “(c) Any person found guilty of any of the prohibited acts shall suffer the penalty of imprisonment of not less than six (6) years and one (1) day but not more than twelve (12) years and a fine of not less than Five hundred thousand pesos (P500.00) nor more than Two million pesos (P2. It is deemed committed in large scale if committed against three (3) or more persons individually or as a group. Section 7 of Republic Act No. . accomplices and accessories. “If the offender is an alien. is hereby amended to read as follows: “SEC. “(3) Refuse to condone or renegotiate a loan incurred by an overseas Filipino worker after the latter’s employment contract has been prematurely terminated through no fault of his or her own. “(4) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to undergo health examinations only from specifically designated medical clinics. entities or persons. That the maximum penalty shall be imposed if the person illegally recruited is less than eighteen (18) years of age or committed by a non-licensee or non-holder of authority.00).00) shall be imposed if illegal recruitment constitutes economic sabotage as defined therein. In case of juridical persons. entities or persons. Penalties. institutions. in addition to the penalties herein prescribed.00) nor more than One million pesos (P1. however. “(2) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to avail of a loan only from specifically designated institutions. control. and “(n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency. except fpr recommendatory trainings mandated by principals/shipowners where the latter shoulder the cost of such trainings.

Mandatory Repatriation of Underage Migrant Workers. or any unauthorized deductions from the migrant worker’s salary. 8042. Section 17 of Republic Act No. The refund shall be independent of and in addition to the indemnification for the damages sustained by the underage migrant worker. Preferential Entitlement Under the Witness Protection Program. shall themselves be jointly and solidarily liable with the corporation or partnership for the aforesaid claims and damages.000. withheld until the said official complies therewith. from participating in the Philippine Overseas Employment Program and from recruiting and hiring Filipino workers until and unless it fully satisfies the judgement award. – Notwithstanding any provision of law to the contrary. the worker shall be entitled to the full reimbursement if his placement fee and the deductions made with interest at twelve percent (12%) per annum. the Labor Arbiters of the National Labor Relations Commission (NLRC) shall have the original and exclusive jurisdiction to hear and decide. as amended. – A mechanism for free legal assistance for victims of illegal recruitment shall be established in the anti-illegal recruitment branch of the POEA including its regional offices. “Such liabilities shall continue during the entire period or duration of the employment contract and shall not be affected by any substitution. whichever is less. “Noncompliance with the mandatory periods for resolutions of case provided under this section shall subject the responsible officials to any or all of the following penalties: “(a) The salary of any such official who fails to render his decision or resolution within the prescribed period shall be. Such mechanism shall include coordination and cooperation with the Department of Justice. or caused to be. is hereby amended to read as follows: “SEC. 8042. 17. The refund shall be paid within thirty (30) days from the date of the mandatory repatriation as provided for in this Act. This provision shall be incorporated in the contract for overseas employment and shall be a condition precedent for its approval. and tap their skills and potentials for national development. valid or authorized cause as defined by law or contract. – Upon discovery or being informed of the presence of migrant workers whose ages fall below the minimum age requirement for overseas deployment. exemplary and other forms of damage. and other non-governmental organizations and volunteer groups. Free Legal Assistance. as amended. The performance bond to de filed by the recruitment/placement agency. the Integrated Bar of the Philippines. within ninety (90) days from the effectivity of this Act. Establishment of National Reintegration Center for Overseas Filipino Workers. training school or medical clinic. and the Philippine Overseas Employment Administration (POEA) shall. plus his salaries for the unexpired portion of his employment contract or for three (3) months for every year of the unexpired term. The license of a recruitment/manning agency which recruited or deployed an underage migrant worker shall be automatically revoked and shall be imposed a fine of not less than Five hundred thousand pesos (Php 500. it shall be automatically disqualified. as amended is hereby amended to read as follows: “SEC. 10. The first paragraph of Section 13 of Republic Act No.000. or “(c) Dismissal from the service with disqualification to hold any appointive public office for five (5) years. 8042. 16. Section 10 of Republic Act No. 13.00) but not more than One million pesos (Php 1. If the recruitment/placement agency is a juridical being. to the underage migrant worker or to his parents or guardian. “In case of a final and executory judgement against a foreign employer/principal.” Section 8. -A national reintegration center for overseas Filipino workers (NRCO) is hereby created in the Department of Labor and Employment for returning Filipino migrant workers which shall provide a mechanism for their reintegration into the Philippine society.” Section 9. amendment or modification made locally or in a foreign country of the said contract. Consistent with this mandate. within ninety (90) calendar days after the filing of the complaint. as amended.“In every case.” Section 7. formulate a program that would . as provided by law.000. “Provided. the Overseas Workers Welfare Administration (OWWA). the corporate officers and directors and partners as the case may be. lending institutions. “In case of termination of overseas employment without just.00). All fees pertinent to the processing of papers or documents in the recruitment or deployment shall be refunded in full by the responsible recruitment/manning agency. 8042. shall be answerable for all money claims or damages that may be awarded to the workers. Section 16 of Republic Act No. without further proceedings. serve as a promotion house for their local employment. however. “The Department of Labor and Employment. Money Claims. That the penalties herein provided shall be without prejudice to any liability which any such official may have incured under other existing laws or rules and regulations as a consequence of violating the provisions of this paragraph. “(b) Suspension for not more than ninety (90) days. is hereby amended to read as follows: “SEC. the NLRC shall endeavor to update and keep abreast with the developments in the global services industry. moral. the claims arising out of an employer-employee relationship or by virtue of any law or contract involving Filipino workers for overseas deployment including claims for actual. without need of notice. “Any compromise/amicable settlement or voluntary agreement on money claims inclusive of damages under this section shall be paid within thirty (30) days from approval of the settlement by the appropriate authority. “The liability of the principal/employer and the recruitment/placement agency for any and all claims under this section shall be joint and several. conviction shall cause and carry the automatic revocation of the license or registration of the recruitment/m anning agency. is hereby amended to read as follows: “SEC. the responsible officers in the foreign service shall without delay repatriate said workers and advise the Department of Foreign Affairs through the fastest means of communication available of such discovery and other relevant information.” Section 10.

These shared data bases shall initially include. service providers and international organizations. and stakeholders. the National Telecommunications Commission. in cooperation with other government agencies concerned. the National Computer Center. the Department of Justice the Bureau of Immigration. is hereby amended to read as follows: “SEC. and “(h) Conduct research for policy recommendations and program development. a psychologist and a social worker for the Center. The second paragraph of Section 19 of Republic Act No. . savings.” Section 12. the following information: “(a) Masterlists of Filipino migrant workers/overseas Filipino classified according to occupation/job category. The second phase shall involve linkaging of computer facilities on order to allow free-flow data exchanges and sharing among concerned agencies. and investment of savings. “(c) Institute. and shall be staffed by Foreign Service personnel. TheNationalComputerCentershall provide the necessary technical assistance and shall set the appropriate information and communications technology standards to facilitate the sharing of information among the member agencies. “(g) Develop capacity-building programs for returning overseas Filipino workers and their families. and maintain and upgrade computer-based service capabilities of the NRCO. civil status. Establishment of a Shared Government Information System for Migration. Functions of the National Reintegration Center for Overseas Filipino Workers. “(b) Inventory of pending legal cases involving Filipino migrant workers and other Filipino nationals. the Technology Livelihood Resource Center (TLRC). livelihood and entrepreneurial development. 18. “(d) Proved a periodic study and assessment of job opportunities for returning Filipino migrant workers. 20. Section 18 of Republic Act No. by country/state of destination including visa classification. and other government agencies involved in training and livelihood development shall give priority to returnees who had been employed as domestic helpers and entertainers. “The inter-agency committee shall meet regularly to ensure the immediate and full implementation of this section and shall explore the possibility setting up a central storage facility for the data on migration. as amended is hereby amended to read as follows: “SEC. Sundays and holidays. “(e) Develop and implement other appropriate programs to promote the welfare of returning Filipino migrant workers. the Commission on Filipinos Overseas. is hereby amended to read as follows: “The establishment and operations of the Center shall be a joint undertaking of the various government agencies. in such number as may be needed by the post. laws.motivate migrant workers to plan for productive options such as entry into highly technical jobs or undertakings. service providers. 8042. implementers. The Labor Attache shall coordinate the operation of the Center and shall keep the Chief of Mission informed and updated on all matters affecting it. public relation officers or case officers who are conversant. if available. Section 20 of Republic Act No. “The inter-agency committee shall be co-chaired by the Department of Foreign Affairs and the Department of Labor and Employment. “The inter-agency committee shall convene to identify existing data bases which shall be declassified and shared among member agencies. individual volunteers and bona fide non-government organizations from the host countries. 8042. entrepreneurship. investments and financial literacy for returning Filipino migrant workers and their families in coordination with relevant stakeholders. The interagency committee shall initially make available to itself the information contained in existing data bases/files. the Department of Labor and Employment and its attached concerned agencies. better wage employment. The Center shall be open for twenty-four (24) hours daily including Saturdays. the Technical Education and Skills Development Authority (TESDA). The progress of the implementation of this section shall be include in the report to Congress of the Department of Foreign Affairs and the Department of Labor and Employment under Section 33. as amended. with the local language. including those serving prison terms. In countries categorized as highly problematic by the Department of Foreign Affairs and the Department of Labor and Employment and where there is a concentration of Filipino migrant workers. “(f) Maintain an internet-based communication system for on-line registration and interaction with clients. -The Center shall provide the following services: “(a) Develop and support programs and projects for livelihood. the National Bureau of Investigation. the government must provide a Sharia or human rights lawyer. both public and private. the National Statistics Office and other government agencies concerned with overseas employment shall be established to implement a shared government information system for migration. – An interagency committee composed of the Department of Foreign Affairs and its attached agency. “For this purpose. orally and in writing. the Department of the Interior and Local Government. as amended. development and the full utilization of overseas Filipino worker returnees and their potentials. customs and practices. the government must also hire within the receiving country. the Commission on Information and Communications Technology.” Section 13. a computer-based information system on returning Filipino migrant workers shall be accessible to all local recruitment agencies and employers. but not be limited to. “(b) Coordinate with appropriate stakeholders.” Section 11. the National Statistical and Coordination Board. service providers and relevant international organizations for the promotion. In addition to these personnel. the Department of Tourism. service attaches or officers who represent other Philippine government agencies abroad and. 8042.

” Section 14. instruct and guide the workers how to assert their rights and provide the available mechanism to redress violation of their rights. marriage laws and civil and criminal codes in receiving countries particularly those with large numbers of Filipinos. That such countries shall observe and/or comply with the international laws and standards for migrant workers.“(c) Masterlists of departing/arriving Filipinos. is hereby amended to read as follows: “(b. optical. and Provided. in general. Under Section 23 of Republic Act No. the Administration shall inform migrant workers not only of their rights as workers but also of their rights as human beings.2) of Paragraph (b) of Section 23 of Republic Act No. add new paragraphs (c) and (d) with their corresponding subparagraphs to read as follows: “(c) Department of Health. when necessary. That such countries shall guarantee to protect the rights of Filipino migrant workers. Pursuant to this.4) Every Filipino migrant worker shall have the freedom to choose any of the DOH-accredited or DOH-operated clinics that will conduct his/her health examinations and that his or her rights as a patient are respected. the Administration shall deploy only to countries where the Philippine has conclude bilateral labor agreements or arrangements: Provided.2) The Filipino migrant worker shall only be required to undergo health examinations when there is reasonable certainty that he or she will be hired and deployed to the jobsite and only those health examinations which are absolutely necessary for the type of job applied for or those specifically required by the foreign employer shall be conducted. in partnership with other law-enforcement agencies. – The Department of Health (DOH) shall regulate the activities and operations of all clinics which conduct medical. and taking into consideration the needs of vulnerable sectors and the peculiarities of sea- based and land-based workers. securing the best possible employment terms and conditions for overseas Filipino workers.1) of paragraph (b) of Section 23 of Republic Act No.2) Overseas Workers Welfare Administration. the coordinating officer shall provide the Filipino migrant worker and his family all the assistance they may need in the enforcement of contractual obligations by agencies or entities and/or by their principals. in coordination with appropriate entities concerned. the POEA shall provide comprehensive Pre-Employment Orientation Seminars (PEOS) that will discuss topics such as prevention of illegal recruitment and gender-sensitivity. “(h) A tracking system of past and present gender disaggregated cases involving male and female migrant workers. on Filipino migrant workers as requirement for their overseas employment. the latter shall be authorized to pay repatriation-related expenses. 8042. including minors. in particular. “(e) Blacklisted foreigners/undesirable aliens. psychological and other similar examinations. ” (c. which requires an . such as fines or penalties. of an intensified program against illegal recruitment activities. is hereby amended to read as follows: “(b. – The Welfare officer of in his absence. “In the repatriation of workers to be undertaken by OWWA. For this purpose. as amended. It shall be responsible for the regulation and management of overseas employment from the pre-employment stage. It shall also be responsible for the implementation. subject to such guidelines as the OWWA Board of Trustees may prescribe. he shall make representation and may call on the agencies or entities concerned to conferences or conciliation meetings for the purpose of settling the compliance or problems brought to his attention. and “(i) Listing of overseas posts which may render assistance to overseas Filipinos. “(g) List of Labor and other human rights instruments where receiving countries are signatories. “In the recruitment and placement of workers to service the requirements for trained and competent Filipino workers of foreign governments and their instrumentalities.1) Philippine Overseas Employment Administration.1) The fees for the health examinations are regulated.” Section 15. “(f) Basic data on legal systems.3) No group or groups of medical clinics shall have a monopoly of exclusively conducting health examinations on migrant workers for certain receiving countries. 8042. regularly monitored and duly published to ensure that the said fees are reasonable and not exorbitant. Sub-paragraph (b. It shall also formulate and implement.” Section 16. as amended. dental. In the performance of this function. immigration policies. a system for promoting and monitoring the overseas employment of Filipino workers taking into consideration their welfare and the domestic manpower requirements. 8042. and such other employers as public interests may require. – The Administration shall regulate private sector participation in the recruitment and overseas placement of workers by setting up a licensing and registration system. physical. the Administration shall allow the lifting of suspension of erring recruitment/manning agencies upon the payment of fine of Fifty thousand pesos (P50. “The Administration shall not engage in the recruitment and placement of overseas workers except on a government-to-government arrangement only. It shall ensure the awareness by the overseas Filipino workers and their families of these programs and other related governmental programs.000. In appropriate cases. the DOH shall ensure that: ” (c. “(d) Statistical profile on Filipino migrant workers/overseas Filipinos/tourists. The OWWA shall likewise formulate and implement welfare programs for overseas Filipino workers and their families while they are abroad and upon their return. Subparagraph (b. as amended.00) for every month of suspension. further. The decking practice. hereinafter referred to as health examinations. ” (c. “in addition to its powers and functions. and migrant workers. ” (c.

Uses of the Legal Assistance Fund. To carry out this task.000. ” Any balances of existing funds which have been set aside by the government specifically as legal assistance or defense fund to help migrant workers shall upon effectivity of this Act. Subparagraph ( c ) of Section of Republic Act No. Section 32 of Republic Act No. That at the end of every year. is hereby amended to read as follows: “SEC. ” (c. that the balance of the Legal Assistance Fund (LAF) including the amount appropriated for the year shall not be less than One hundred million pesos (P100. shall not revert to the General Fund. shall be exempt from the coverage of Republic Act No. as amended. – In the fight against illegal recruitment. 9184 or the Government Procurement Act. and “An amount appropriated in the annual General Appropriations Act (GAA) which shall not be less than Thirty million pesos (30. in the amount of one hundred million pesos (P100. including the DOH-operated clinics. the Department of Foreign Affairs shall include in its report to Congress. including the expenditures from the said fund duly audited by the Commission on Audit (COA): Provided.000. as amended. 8042. That the hiring of foreign legal counsels.000. as amended. 8042.” Section 17.2) Establish overseas Filipino worker help desk or kiosk in their localities with the objective of providing current information to their constituents on all the processes aspects of overseas employment. “(d. and non-government organizations advocating the rights and welfare of overseas Filipino workers.” Section 20. 8042. “Twenty million pesos (20. as provided for under Section 33 of this Act.00) per year: Provided. That the fund shall be treated as a special fund in the National Treasury and its balance.00) from the Contingency Fund of the President. “Any Foreign employer who does not honor the results of valid health examinations conducted by a DOH-accredited or DOH-operated clinic shall be temporarily disqualified from the participating in the overseas employment program. The expenditures to be charged against the Fund shall include the fees for the foreign lawyers to be hired by the Legal Assistant for Migrant Workers Affairs to represent migrant workers facing charges or in filing cases against erring or abusive employers abroad. when circumstances warrant urgent action. shall not be allowed.overseas Filipino worker to go first to an office for registration and then farmed out to a medical clinic located elsewhere. as be linked to the database of all concerned government agencies. the local government units (LGUs).5) Within a period of three (3) years from the effectively of this Act. “(d) Local Government Units. bail bonds to secure the temporary releases and other litigation expenses: Provided. rules or regulations.00) from the Welfare Fund for Overseas Workers established under Letter of Instructions No.000.” Section 19. “In case an overseas Filipino worker is found to be not medically fit upon his/her immediate arrival in the country of destination. further.00) to be constituted from the following sources. other concerned government agencies and non-government organizations to conduct PEOS to their constituents on a regular basis.000. – There is herby established a legal assistance fund for migrant workers. further. 1694 and 1809. pursuant to POEA rules and regulations. all DOH regional and/or provincial hospitals shall establish and operate clinics that can be serve the health examination requirements of Filipino migrant workers to provide them easy access to such clinics all over the country and lessen their transportation and lodging expenses and ” (c. Such penalty is without prejudice to any other liability which he or she may have incurred under existing laws. is hereby amended to read as follows: . the medical clinic that conducted the health examination/s of such overseas Filipino worker shall pay for his or her repatriation back to the Philippines and the cost of deployment of such worker. Legal Assistance Fund. and form part of.000.000.1) Provide a venue for the POEA. 537 as amended by Presidential Decree Nos.000. is hereby amended to read as follows: “( c ) To tap the assistance of reputable law firms. “Any government official or employee who violates any provision of this subsection shall be removed or dismissed from service with disqualification to hold any appointive public office for five(5) years. conducting health examinations for Filipino migrant workers shall observe the same standard operating procedures and shall comply with internationally-accepted standards in their operations to conform with the requirements of receiving countries or of foreign employers/principals. including the amount appropriated in the GAA. the following shall be undertaken by the LGUs: “(d. other concerned government agencies.000.” Section 18.6) All DOH-accredited medical clinics. be turned over to. 25. the Integrated Bar of the Philippines. Section 25 of Republic Act No. hereinafter referred to as the Legal Assistance Fund. 8042.000.000. the status of the Legal Assistance Fund. the Fund created under this Act. particularly the POEA for its updated lists of overseas job orders and licensed recruitment agencies in good standing. criteria and procedures promulgated in accordance with Section 24 ( a ) herof.000.00) : Provided. which shall form part of the Fund. as amended. “Fifty million pesos (50. is hereby amended to read as follows: “SEC. “Thirty million pesos (30. other bar associations and other government legal experts on overseas Filipino worker laws to complement the government’s efforts to provide legal assistance to our migrant workers. 26. Section 26 of Republic Act No. shall take a proactive stance by being primarily responsible for the dissemination of information to their constituents on all aspects of overseas employment.00) from the Contingency Fund of the President Social Fund. Such desk or kiosk shall. – The Legal Assistance Fund created under the preceding section shall be used exclusively6 to provide legal services to migrant workers and overseas Filipinos in distress in accordance with the guidelines. in partnership with the POEA.

obtaining legal clearances. “All other government agencies and government-owned or controlled corporations which require at least one (1) representative from the overseas workers sector to their respective boards shall follow all the applicable provisions of this section. “Within thirty (30) days from the submission of the list. “The remittances of all overseas Filipino workers. to be selected and nominated openly by the general membership of the sector being represented. In case of death. 8042. but shall not limited to. and a migrant worker at the time of his or her nomination or was a migrant worker with at least three (3) years’ experience as such. as well as transporting the remains including retrieval from site of death and delivery to the receiving funeral home. “(d) Repatriation cost of the worker when his/her employment is terminated without any valid cause. The first and last paragraph of Section 33 of Republic Act No. duly registered with the appropriate Philippine government agency and in good standing as such. upon showing of the same proof of entitlement by the overseas Filipino worker’s beneficiary or recipient. The process shall be open. at least three (3) times.” Section 21. sea-based and land-based sectors shall be governed by the following guidelines: “(a) The POEA and the OWWA shall launch a massive information campaign on the selection of nominees and provide for a system of consultative sessions for the certified leaders or representatives of the concerned sectors. shall be submitted to the President and published in a newspaper of general circulation. at the minimum: “(a) Accidental death. completing all documentation. “(c) The nominee must be at least twenty-five (25) years of age. the following information: ” Any officer of the government who fails to submit the report as stated in this section shall be subject to an administrative penalty of dismissal from the service with disqualification to hold any appointive public office for five (5) years. which shall consist of three(3) names for each sector to be represented. each migrant worker deployed by a recruitment/manning agency shall be covered by a compulsory insurance policy which shall be secured at no cost to the said worker. “The additional members shall have a term of three (3) years and shall be eligible for reappointment for another three (3) years. locating a local licensed funeral home.” Section 22. – All laws to the contrary notwithstanding. 32. “Any executive issuances or orders issued that contravene the provisions of this section shall have no force and effect. ” The selection and nomination of the additional members from the women. the Department of Foreign Affairs and the Department of Labor and Employment shall submit separately to the said body a semi-annual report of Philippine foreign posts located in countries hosting Filipino migrant workers. Additional Memberships. 8042. sea-based and land-based sectors respectively. The report shall include. shall be exempt from the payment of documentary stamp tax. the insurance provider shall arrange and pay for the repatriation or return of the worker’s remains. Compulsory Insurance Coverage for Agency-Hired Workers. 37-A. appoint a replacement who shall serve the unexpired term of his or her predecessor. The insurance provider shall also render any assistance necessary in the transport including. with at least Fifteen thousandUnited Statesdollars (US$10. Exemption from Travel Tax Documentary Stamp and Airport Fee. in addition to their present composition. is hereby amended to read as follows: SEC. . “(b) Only non-government organizations that protect and promote the rights and welfare of overseas Filipino workers. of Replublic Act No. The mid-year report covering the period January to June shall be submitted not later than October 31 of the same year while the year-end report covering the period July to December shall be submitted not later than May 31 of the following year. as amended. POEA. “(c) Permanent total disablement. 35.“SEC. A new Section 37-A.00) disability benefit payable to the migrant worker. In case of vacancy. the President shall in accordance with the provisions of this Act. have three (3) members each who shall come from the women. Section 23. is hereby amended to read as follows: “SEC. the representatives to the POEA/OWWA governing boards. The following disabilities shall be deemed permanent: total. able to read and write. 8042. Report to Congress. the President shall select and appoint from the list. complete loss of sight of both eyes. but not limited to. Such insurance policy shall be effective for the duration of the migrant worker’s employment and shall cover.500. brain injury resulting to incurable imbecility or insanity. democratic and transparent. the respective Boards of the POEA and the OWWA shall. as amended. and in existence for at least three (3) years prior to the nomination shall be qualified to nominate a representative for each sector to the Board. and “(d) A final list of all the nominees selected by the OWWA/POEA governing boards. as amended. within ninety (90) days before the boards shall be convened.00) survivor’s benefit payable to the migrant worker’s beneficiaries. is hereby added to read as follows: “SEC. including the transport of his or her personal belongings. OWWA and other Boards. – Notwithstanding any provision of law to the contrary. permanent complete paralysis of two (2) limbs. mortuary or direct disposition facility to prepare the body for transport. Section 35 of Republic Act No. loss of two(2) limbs at or above the ankles or wrists. – In order to inform the Philippine Congress on the implementation of the policy enunciated in Section 4 hereof. procuring consular services. 33. the migrant workers shall be exempt from the payment of travel tax and airport-fee upon proper showing of proof entitlement by the POEA. – In addition to the performance bond to be filed by the recruitment/manning agency under Section 10. with at least Seven thousand five hundredUnited Statesdollars (US$7. providing necessary casket or air transport container.000. for purposes of selection.

000. in his absence. the concerned labor attaché or. (d) and (e) of this section shall present to the insurance company concerned a written notice of claim together with pertinent supporting documents. it is liable to pay the balance thereof. such as air ambulance. taking into account that in case the amount of insurance coverage is insufficient to satisfy the amount adjudged or agreed upon. an alternative appropriate mode of transportation. When an adequate medical facility is not available proximate to the migrant worker. shall be sufficient evidence to substantiate the claim: “(1) Death Certificate – In case of natural or accidental death. repatriation under medical supervision to the migrant worker’s residence shall be undertaken by the insurance provider at such time that the migrant worker is medically cleared for travel by commercial carrier. That the following documents.00) Per month for a maximum of six (6) months for a migrant worker who is involved in a case or litigation for the protection of his/her rights in the receiving country. “Only reputable private insurance companies duly registered with the Insurance Commission (IC). the responsibility of the family member or requested individual to meet all visa and travel document requirements. within the fourth civil degree of consanguinity or affinity. who work or have interest in any of the licensed recruitment/manning agencies or in any of the government agencies involved in the overseas employment program shall be disqualified from providing this workers’ insurance coverage. Insurance companies who have directors. which are in existence and operational for at least Five hundred million pesos (P500. “The recruitment/manning agency shall have the right to choose from any of the qualified insurance providers the company that will insure the migrant worker it will deploy. or the amount of liability insured. Medical and non-medical escorts may be provided when necessary. evacuation under appropriate medical supervision by the mode of transport necessary shall be undertaken by the insurance provider. It shall then submit the certificate of insurance coverage of the migrant worker to POEA as a requirement for the issuance of an Overseas Employment Certificate (OEC) to the migrant worker. The insurance coverage for money claims shall be equivalent to at least three (3) months for every year of the migrant worker’s employment contract. “(3) Within ten (10) days from the filing of notice of claim. the recruitment/manning agency shall provide an authenticated copy thereof to the migrant worker.000. . In the case of seafarers who are insured under policies issued by foreign insurance companies. “For the payment of money claims under subparagraph (f). he shall be entitled to a compassionate visit by one (1) family member or a requested individual. the insurance policy shall also include: “(g) Compassionate visit. (b). (c). “For repatriation under subparagraph (d) hereof. with at least One hundredUnited Statesdollars (US$100. “(h) Medical evacuation. as determined by the insurance company’s physician and/or a consulting physician. attaching therewith a copy of the decision or compromise agreement. the recruitment/manning agency shall immediately pay the migrant worker’s claim in full. “Any person having a claim upon the policy issued pursuant to subparagraphs (a). “In addition to the above coverage. and “(3) Medical Certificate – In case of permanent disablement. “For subsistence allowance benefit under subparagraph (e). “(f) Money claims arising from employer’s liability which may be awarded or given to the worker in a judgment or settlement of his or her case in the NLRC. natural death or disablement under this section shall be paid by the insurance company without any contest and without the necessity of providing fault or negligence of any kind on the part of the insured migrant worker: Provided. whichever is lower. “(2) Police or Accident Report – In case of accidental death. The insurance company shall forthwith ascertain the truth and extent of the claim and make payment within ten (10) days from the filing of the notice of claim. The insurance company shall pay for the transportation cost of the family member or requested individual to the major airport closest to the place of hospitalization of the worker. partners. may be arranged. After procuring such insurance policy. however. a certification which states the reason/s for the termination of the migrant worker’s employment and the need for his or her repatriation shall be issued by the Philippine foreign post or the Philippine Overseas Labor Office (POLO) located in the receiving country. If the period to receive medical clearance to travel exceeds fourteen (14) days from the date of discharge from the hospital. the embassy or consular official shall issue a certification which states the name of the case. After receiving the insurance payment. and with a current year certificate of authority shall be qualified to provide for the worker’s insurance coverage. “(2) The recruitment/manning agency shall then immediately file a notice of claim with its insurance provider for the amount of liability insured.“(e) Subsistence allowance benefit. When medically necessary as determined by the attending physician. and “(i) Medical repatriation. It is. employees or agents with relatives. That the minimum coverage under sub-paragraphs (a) to (i) are included therein. the insurance company shall make payment to the recruitment/manning agency the amount adjudged or agreed upon. duly authenticated by the Philippine foreign posts. When a migrant worker is hospitalized and has been confined for at least seven (7) consecutive days. “Any claim arising from accidental death.00) to be determined by the IC. an order shall be released mandating the respondent recruitment/manning agency to pay the amount adjudged or agreed upon within thirty (30) days. the following rules shall govern: “(1) After a decision has become final and executor or a settlement/compromise agreement has been reached between the parties at the NLRC. officers. the names of the parties and the nature of the cause of action of the migrant worker. the POEA shall accept certificates or other proofs of cover from recruitment/manning agencies: Provided.

conduct hearings and receive testimonies. and “(f) To perform such other duties. respectively.“(4) In case the insurance company fails to make payment within ten (10) days from the filing of the claim. as well as all programs. “(6) The provision of compulsory worker’s insurance under this section shall not affect the joint and solidary liability of the foreign employer and the recruitment/manning agency under Section 10. the recruitment/ manning agency shall pay the amount adjudged or agreed upon within the remaining days of the thirty (30)-day period. “(d) To submit periodic reports to the President of the Philippines and Congress on the implementation of the provisions of Republic Act No. including compensation of all personnel. “In case it is shown by substantial evidence before the POEA that the migrant worker who was deployed by a licensed recruitment/manning agency has paid for the premium or the cost of the insurance coverage or that the said insurance coverage was used as basis by the recruitment/manning agency to claim any additional fee from the migrant worker. proprietors. 8042. 37-B. “(e) To determine weaknesses in the law and recommend the necessary remedial legislation or executive measures. or require any person by subpoena duces tecum documents or other materials as it may require consistent with the provisions of Republic Act No. the Department of Labor and Employment. and they shall have the authority to ban or blacklist such insurance companies which are known to be evasive or not responsive to the legitimate claims of migrant workers. “(5) If the worker’s claim was not settled within the aforesaid thirty (30)-day period. Such penalty is without prejudice to any other liability which such persons may have incurred under existing laws. as amended. “For purposes of this section. For migrant workers classified as rehires. without prejudice to an earlier review if necessary and warranted for the purpose of modifying. amending and/or repealing these subject provisions. “For migrant workers recruited by the POEA on a government-to-government arrangement. functions and responsibilities as may be necessary to attain its objectives. A new Section 37-B of Republic Act No. “Any question or dispute in the enforcement of any insurance policy issued under this section shall be brought before the IC for mediation or adjudication. The Oversight Committee shall be co-chaired by the chairpersons of the Senate Committee on Labor and Employment and the House of Representatives Committee on Overseas Workers Affairs. the recruitment/manning agency’s performance bond or escrow deposit shall be forthwith garnished to satisfy the migrant worker’s claim. as amended. 8042. To protect the rights of these workers. name hires or direct hires. including conciliation and mediation services. as amended. NLRC and the POEA. Congressional Oversight Committee. 8042. “(7) Lawyers for the insurance companies. the POEA shall provide them adequate legal assistance. officers and employees shall be perpetually disqualified from engaging in the business of recruitment of overseas workers. “At the end of every year. The Oversight Committee shall have the following duties and functions: “(a) To set the guidelines and overall framework to monitor and ensure the proper implementation of Republic Act No. 8042. “The Oversight Committee shall adopt its internal rules of procedure. . projects and policies relating to the implementation of Republic Act No. and technical advice. Section 24. in consultation with the recruitment/manning agencies and legitimate non-government organizations advocating the rights and welfare of overseas Filipino workers. the said licensed recruitment/manning agency shall lose its license and all its directors. as amended. they may opt to be covered by this insurance coverage by requesting their foreign employers to pay for the cost of the insurance coverage or they may pay for the premium themselves. is hereby added to read as follows: “Sec. – There is hereby created a Joint Congressional Oversight Committee composed of five (5) Senators and five (5) Representatives to be appointed by the Senate President and the Speaker of the House of Representatives. reports. The Department of Labor and Employment shall include such assessment in its year-end report to Congress. the POEA shall establish a foreign employers guarantee fund which shall be answerable to the workers’ monetary claims arising from breach of contractual obligations. unless the latter is impleaded. the Department of Labor and Employment and the IC shall jointly make an assessment of the performance of all insurance providers. “The foregoing provisions on compulsory insurance coverage shall be subject to automatic review through the Congressional Oversight Committee immediately after three (3) years from the effectivity of this Act in order to determine its efficacy in favor of the covered overseas Filipino workers and the compliance by recruitment/manning agencies and insurance companies. IC. invite or summon by subpoena ad testificandum any public official or private citizen to testify before it. partners. as amended. shall be prohibited to appear before the NLRC in money claims cases under this section. rules or regulations. as provided in the first subparagraph hereof. whether at home or abroad. “(c) To approve the budget for the programs of the Oversight Committee and all disbursements therefrom. shall formulate the necessary implementing rules and regulations. projects and activities related to overseas employment. 8042. “(b) To ensure transparency and require the submission of reports from concerned government agencies on the conduct of programs. based upon the report of the NLRC and the POEA on their respective interactions and experiences with the insurance companies.

– The departments and agencies charged with carrying out the provisions of this Act. “The Oversight Committee shall exist for a period of ten (10) years from the effectivity of this Act and may be extended by a joint concurrent resolution. The Congressional Oversight Committee on Overseas Workers Affairs shall have the sum of Twenty-five million pesos (P25. such amount necessary for its continued operations shall be included in the annual General Appropriations Act.” Section 25. the funding of which shall be included in the General Appropriations Act. Section 27. – If.000. and determine their compensation subject to applicable civil service laws. Funding. instrumentalities. – All laws. Thereafter. issuances. Section 29. decrees. Section 26. to carry out its powers and functions for its initial operations and for fiscal years wherein the General Appropriations Act is reenacted and no provision for its continued operation is included in such Act. formulate the necessary rules and regulations for its effective implementation.“The Oversight Committee shall organize its staff and technical panel. – This Act shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation. 9442 April 30. Approved. rules and regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly. – The departments. and appoint such personnel. Effectivity. the same shall not affect the validity of the other provisions not affected thereby. for any reason. offices and government-owned and controlled corporations charged with carrying out the provisions of this Act shall include in their respective programs the implementation of this Act. 2007 . in consultation with the Senate Committee on Labor and Employment and the House of Representatives Committee on Overseas Workers Affairs. executive orders.00). “The members of the Oversight Committee shall not receive additional compensation. Separability Clause. REPUBLIC ACT NO. whether on secondment from the Senate and the House of Representatives or on temporary. or on consultancy. extraordinary and other necessary expenses to attain its goals and objectives.000. may portion of this Act is declared unconstitutional or invalid. half of which shall be charged against the current appropriations of the Senate while the other half shall be charged against the current appropriations of the House of Representatives. Repealing Clause. except as otherwise provided herein. shall. Implementing Rules and Regulations. contractual. allowances or emoluments for services rendered thereto except traveling. bureaus. Section 28. agencies. rules and regulations with a view to ensuring a competent and efficient secretariat. within sixty (60) days after the effectivity of this Act.

(i) To the extent practicable and feasible. cinema houses. in coordination with the Philippine Health Insurance Corporation (PHILHEALTH). A new chapter. The establishments may claim the discounts granted in sub-sections (a). AN ACT AMENDING REPUBLIC ACT NO. and uniform allowance to the extent feasible: provided. That the total amount of the claimed tax deduction net of value-added tax if applicable. (e). subject to guidelines to be issued for the purpose by the Department of Trade and Industry (DTI) and the Department of Agriculture (DA). leisure and amusement for the exclusive use or enjoyment of persons with disability. financial aids. in coordination with the PHILHEALTH. (j) To the extent possible. and professional fees of attending doctors in all private hospitals and medical facilities. AND FOR OTHER PURPOSES" Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECTION 1. priority shall be given to them. carnivals and other similar places of culture. Other Privileges and Incentives "SEC. but not limited to x-rays. for them to pursue primary. otherwise known as the "Magna Carta for Disabled Persons". that persons with disability shall meet minimum admission requirements. circuses. further.Those caring for and living with a person with disability shall be granted the following incentives. concert halls. The privileges may not be claimed if the persons with disability claims a higher discount as may be granted by the commercial establishment and/or under other existing laws or in combination with other discount program/s. Incentives. (b) A minimum of twenty percent (20%) discount on admission fees charged by the theaters. 33. learning materials. as amended. (h) Educational assistance to persons with disability. subsidies and other incentives to qualified persons with disability. subject to guidelines to be issued by the Department of Health (DOH). OTHERWISE KNOWN AS THE "MAGNA CARTA FOR DISABLED PERSONS. (d) At least twenty percent (20%) discount on medical and dental services including diagnostic and laboratory fees such as. Social Security System (SSS). as the case may be. restaurants and recreation centers for the exclusive use or enjoyment of persons with disability. including support for books." "SEC. grants. (f) and (g) as tax deductions based on the net cost of the goods sold or services rendered: provided. (g) At least twenty percent (20%) discount in public railways. (f) At least twenty percent (20%) discount on fare for domestic air and sea travel for the exclusive use or enjoyment of persons with disability. post tertiary. as well as vocational or technical education. to read as follows: "CHAPTER 8. shall be Included in their gross sales receipts for tax purposes and shall be subject to proper documentation and to the provisions of the National Internal Revenue Code (NIRC). The abovementioned privileges are available only to persons with disability who are Filipino citizens upon submission of any of the following as proof of his/her entitlement thereto: (I) An identification card issued by the city or municipal mayor the barangay captain of the place where the person with disability resides. Persons with disability shall be entitled to the following: (a) At least twenty percent (20%) discount from all establishments relative to the utilization of all services in hotels and similar lodging establishments. 7277. in the absence thereof. the continuance of the same benefits and privileges given by the Government Service Insurance System (GSIS). That the cost of the discount shall be allowed as deduction from gross income for the same taxable year that the discount is granted: provided. as are enjoyed by those in actual service. secondary. through the provision of scholarships. to be denominated as "Chapter 8. (c) At least twenty percent (20%) discount for the purchase of medicines in all drugstores for the exclusive use or enjoyment of persons with disability. (b). tertiary. with new Sections 32 and 33. however. skyways and bus fare for the exclusive use and enjoyment of persons with disability. 32. In both public and private schools. . and (k) Provision of express lanes for persons with disability in all commercial and government establishments. (c). and PAG-IBIG. the government may grant special discounts in special programs for persons with disability on purchase of basic commodities. 7277. or (III) Transportation discount fare Identification Card (ID) issued by the National Council for the Welfare of Disabled Persons (NCWDP). in accordance with the rules and regulations to be issued by the DOH. (e) At least twenty percent (20%) discount on medical and dental services including diagnostic and laboratory fees. (II) The passport of the persons with disability concerned. . in all government facilities. Other Privileges and Incentives" is hereby added to Title Two of Republic Act No. computerized tomography scans and blood tests.

000. 7277 is hereby amended to read as the "Magna Carta for Persons with Disability". and (ii) Priority in the building and/or maintenance of provincial or municipal roads leading to the aforesaid home residential community or retirement village. "SEC. 7277 is hereby amended to read as follows: "SEC. or severe ridicule of persons with disability. the National Council for the Welfare of Disabled Persons. 4. a fine of not less than Fifty thousand pesos (P50.00) or imprisonment for not less than two years but not more than six years. Penal Clause. as amended and as such.000. in consultation with the concerned Senate and House committees and other agencies. . The title of Republic Act No. individual taxpayers caring for them shall be accorded the privileges granted by the code Insofar as having dependents under the same section are concerned. franchise and other similar privileges granted to any business entity that fails to abide by the provisions of this Act. Non-verbal Ridicule and VilificationAgainst Persons with Disability "CHAPTER 1.000. organizations. establishments shall formulate an agencies. the officials thereof directly involved shall be liable therefore. (b) Any person who abuses the privileges granted herein shall be punished with imprisonment of not less than six months or a fine of not less than Five thousand pesos (P5. Deliverance from Vilification "SEC. and/or (b) An activity in public which incites hatred towards serious contempt for.000. 40. vilification shall be defined as: (a) the utterance of slanderous and abusive statements against a person with disability.00) but not exceeding One hundred thousand pesos (P100. organizations. 3. (c) If the violator is a corporation organization or any similar entity.00).000. and (b) Individuals or nongovernmental institutions establishing homes. Any individual.00) but not exceeding Two hundred thousand pesos (P200. 39. and after notice and hearing the proper authorities may also cause the cancellation or revocation of the business permit. 42. 7277 is hereby amended by inserting a new title. public ridicule shall be defined as an act of making fun or contemptuous initiating or making mockery of persons with disability whether in writing or in words. SEC.For purposes of this chapter." SEC. No individual. chapters 1 and 2 and Sections 39. at the discretion of the court. (d) If the violator is an alien or a foreigner. or both at the discretion of the court. "SEC. 46. 41 and 42 to read as follows: "Title Four Prohibitions on Verbal. but not more than Fifty thousand pesos (P50.00). chapter and section after Section 38 to be denominated as Title 4." "SEC. Republic Act No. and all references on the said law to "disabled persons" shall likewise be amended to read as "persons with disability". 40. - (a) Any person who violates any provision of this Act shall suffer the following penalties: (1) For the first violation. establishments shall formulate an implementing rules and regulations pertinent to the provisions of this Act within six months after the effectivity of this Act. he shall be deported immediately after service of sentence without further deportation proceedings. group or community is hereby prohibited from vilifying any person with disability which could result into loss of self-esteem of the latter." Sec. or both at the discretion of the court. Upon filing of an appropriate complaint. The Department of Social Welfare and Development. or both. Public Ridicule . .000. or in action due to their impairment/s. group or community shall execute any of these acts of ridicule against persons with disability in any time and place which could intimidate or result in loss of self-esteem of the latter. Deliverance from Public Ridicule. 5. (a) persons with disability shall be treated as dependents under Section 35(A) of the National Internal Revenue Code. 2. Section 46 of Republic Act No. a fine of not less than One hundred thousand pesos (P100. "CHAPTER 2. and the Bureau of Internal Revenue. and (2) For any subsequent violation.For purposes of this Chapter.00) or imprisonment of not less than six months but not more than two years. residential communities or retirement villages solely to suit the needs and requirements of persons with disability shall be accorded the following: (i) Realty tax holiday for the first five years of operation. . Vilification. 41. permit to operate." SEC.

. . This Act which is a consolidation of Senate Bill No. Definition of Term. of this Act. rules and regulations to the contrary. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECTION 1. 2007. 6.SEC. SECTION 2.For purposes of this Act. . 2580 and House Bill No. every married male employee in the private and public sectors shall be entitled to a paternity leave of seven (7) days with full pay for the first four (4) deliveries of the legitimate spouse with whom he is cohabiting. 1214 was finally passed by the Senate and the House of Representatives on February 8. 8187 AN ACT GRANTING PATERNITY LEAVE OF SEVEN (7) DAYS WITH FULLPAY TO ALL MARRIED MALE EMPLOYEES IN THE PRIVATE AND PUBLIC SECTORS FOR THE FIRST FOUR (4) DELIVERIES OF THE LEGITIMATESPOUSE WITH WHOM HE IS COHABITING AND FOR OTHER PURPOSES. Approved. 2007 REPUBLIC ACT NO. Paternity Leave refers to the benefits granted to a married male employee allowing him not to report for work for seven (7) days but continues to earn the compensation therefor. Approved: April 30. This Act shall be known as the "Paternity Leave Act of 1996". For purposes. Notwithstanding any law. 2007 and February 7. SECTION 3. delivery shall include childbirth or any miscarriage. on the condition that his spouse has delivered a child or suffered a miscarriage for purposes of enabling him to effectively lend support to his wife in her period of recovery and/or in the nursing of the newly-born child. The male employee applying for paternity leave shall notify his employer of the pregnancy of his legitimate spouse and the expected date of such delivery. Short Title. This Act shall take effect fifteen (15) days after its publication in any two newspapers of general circulation. respectively.

1161 June 18. S-1972).O. 1. 4857. one of whom shall be a woman. trust.D. UNEMPLOYMENT. 24. No. 1. one of whom shall be a woman. R. partnership. S-1972) A.D. 2658. association or any other entity. R. the president. S-1986. P. trust or firm. and Sec.All laws. 1. Members of the Commission who hear cases pending before the Commission. No. — This Act shall be known as the "Social Security Law" (As amended by Sec. SECTION 6. Any person. He shall be appointed by the President of the Philippines and shall receive a salary to be fixed by the Commission with the approval of the President. S. P. SECTION 4.D. (As amended by Sec. 3. P. . No. Sec. The apppointive members of the Commission shall receive one thousand five hundred pesos per diem for each meeting actually attended by them: Provided. old age and death. partnership. or parts thereof which are inconsistent with this Act are hereby repealed or modified accordingly. Sec. . ordinances. 1. the SSS Administrator and seven appointive members: three of whom shall represent the labor group.D. 1792. shall be filled for the unexpired term only." Section 2. 735. three. the Chairman of the Civil Service Commission and the Secretary of Health shall. Sec.A. decrees. with a view to promoting their well-being in the spirit of social justice. No. R. 347. — It is the policy of the Republic of the Philippines to establish. 24. DISABILITY AND DEATH BENEFITS FOR EMPLOYEES SECTION 1.This Act shall take effect (15) days from its publication in the Official Gazette or in at least two (2) newspapers of national circulation. Sec. 1. R. SECTION 8.Nothing in this Act shall be construed to reduce any existing benefits of any form granted under existing laws. including. S-1972.D. 2. develop. S-1973. managing director or partner directly responsible therefor.D. SECTION 7. and. Sec. association or entity found violating this Act or the rules and regulations promulgated thereunder shall be punished by a fine not exceeding Twenty-five thousand pesos (P25.A. The Secretary of Labor and Employment. 1202. 1954 AN ACT TO CREATE A SOCIAL SECURITY SYSTEM PROVIDING SICKNESS. No. except through the expiration of the term. RETIREMENT.A. 7688) (b) The general conduct of the operations and management functions of the SSS shall be vested in the Administrator who shall serve as the chief executive officer immediately responsible for carrying out the program of the SSS and the policies of the Commission. Repealing Clause. 1. The term of the appointive members shall be three years: Provided. one. Sec. 735. No. 24. issuances. vice-president. That no compensation shall be paid for more than eight meetings a month. regulations. S- 1977. . the Social Security System with principal place of business in Metro Manila. S-1975. 1. within thirty (30) days from the effectivity of this Act. Short Title. P. corporation.D. P. two and three years for every two members. E. firm. — (a) To carry out the purposes of this Act. the management group. The Chairman of the Commission shall be designated by the President from among its members. Administration SECTION 3. 1. respectively. No. That the terms of the first six appointive members shall be one. 1792 and Sec. P. 1. 24. the general public.A. R. Sec. The administrator shall be a person who has had previous experience in technical and administrative fields related to the purposes of this Act. shall also receive a per diem of one thousand five hundred pesos. general manager. and R. but not limited to. (As amended by Sec.000) or imprisonment of not less than thirty (30)days nor more than six (6) months. payable from the funds of the SSS. The SSS shall be directed and controlled by a Social Security Commission composed of the Secretary of Labor and Employment. 3. Republic Act No. SECTION 5. P. Philippines is hereby created. 2658. issue such rules and regulations necessary for the proper implementation of the provisions hereof. the penalty of imprisonment shall be imposed on the entity's responsible officers. 102.1975) . promote and perfect a sound and viable tax-exempt social security service suitable to the needs of the people throughout the Philippines which shall provide to covered employees and their families protection against the hazards of disability. to be appointed by the President of the Philippines. or any contract agreement or policy between employer and employee.A. (As amended by Sec. executive orders. chief executive officer. Nondiminution Clause. sickness. rules. Declaration of Policy.D.A. Sec. Effectivity. 2. S-1972. If the violation is committed by a corporation. All vacancies. 1. Social Security System. P. No.

1792) (g) To set up its accounting system and provide the necessary personnel therefor. 735. S- 1972) . compilations and analyses of statistical and economic data and to make investigations as may be needed for the proper administration and development of the System. For the purpose of such review the procedure concerning appeals from the Court of First Instance shall be followed as far as practicable and consistent with the purposes of this Act. 1.A. prescribe their duties and establish such methods and procedures as may insure the efficient.D. amend and rescind. 2. P. determination and settlement of disputes shall be governed by the rules and regulations promulgated by the Commission. 4857. No appeal shall act as a supersedeas or a stay of the order of the Commission. S-1979 and Sec. and any case filed with respect thereto shall be heard by the Commission. R. (As amended by Sec. 102. or the Court of Appeals or the Supreme Court. (e) To enter into agreements or contracts for such service and aid. subject to the approval of the President. No. No appeal bond shall be required. contributions and penalties thereon or any other matter related thereto.A. 2658 and Sec. expropriation or otherwise. real or personal. (As amended by Sec. S-1975) Section 4. the same shall be reviewed by the Supreme Court. 2.A.(c) The Commission.D.. E. 3. R. unless the Commission itself.O. (c) Court Review. 3. That such increases in benefits shall not require any increase in the rate of contribution. (As amended by Sec. 1792) (h) To require reports. or hold. The Commission shall be deemed to be a party to any judicial action involving any such decision. (f) To adopt from time to time a budget of expenditures including salaries of personnel. No. or by hearing officers duly authorized by the Commission and decided within twenty days after the submission of the evidence. Section 5. S-1975) (k) To sue and be sued in court. That the actuarial soundness of the reserve fund shall be guaranteed: Provided. by way of purchase. except that in the Supreme Court. aged and infirm employees and immediate members of their families. 735. Provided. and to inspect or cause to be inspected periodically such branches. and such other personnel as may be deemed necessary. (As amended by Sec.D. The filing. which may be necessary or expedient for the attainment of the purposes of this Act. — Any decision of the Commission. R. 2658 and Sec. 24. 2. (As amended by Sec. be punished by the proper court for contempt. 1. criminal cases wherein life imprisonment or death has been imposed by the trial court shall take precedence. (d) Execution of decisions — Any decision or award of the Commission after the same has become final and executory shall be enforced and executed in the same manner as decisions of Courts of First Instance and the Commission shall have the power to issue to the City or provincial sheriff or the sheriff whom it may appoint such writs of execution as may be necessary for the enforcement of such decision or award and any person who shall fail or refuse to comply with such decision. 2. 1636. in the absence of an appeal therefrom as herein provided. (l) To perform such other acts as it may deem appropriate for the proper enforcement of this Act. further. receive. (b) To submit annually not later than March 31. Sec. — (a) Any dispute arising under this Act with respect to coverage. Appeal from a decision of the Commission must be taken within fifteen days from notification of such decision. P. such rules and regulations as may be necessary to carry out the provisions and purposes of this Act. R. 3. against all funds available to the System under this Act. and may be represented by an attorney employed by the Commission. fix their compensation. R. S-1975) (c) To require the Actuary to submit a valuation report on the SSS benefit program every five years.A. honest and economical administration of the provisions and purposes of this Act. No. No. benefits. P. and to undertake the necessary actuarial studies and calculations concerning increases in benefits and the financial stability of the SSS and to provide for the feasible increases in benefits and the addition of new ones under such rules and regulations as the Commission may adopt subject to the approval of the President: President. P. Powers and Duties of the Commission. and shall take precedence over all cases. (As amended by Sec. public or private property for the purpose of undertaking housing projects preferably for the benefit of low-salaried employees and for the maintenance of hospitals and institutions for the sick. Settlement of Disputes.A. shall become final fifteen days after the date of notification. 2. shall be cognizable by the Commission. No. and judicial review thereof shall be permitted only after any party claiming to be aggrieved thereby has exhausted his remedies before the Commission. 1. The case shall be heard in a summary manner. the Commission shall have the following powers and duties: (a) To adopt. — For the attainment of its main objectives as set forth in section two hereof. P. upon the recommendation of the Administrator shall appoint an actuary. however. (j) To acquire. or writ. If the decision of the Commission involves only questions of law. S-1986) (d) To establish branches of the System whenever and wherever it may be expedient or necessary. as may be needed for the proper. or any of its members. (As amended by Sec. shall so order. 2658. (As amended by Sec. a public report to the President of the Philippines covering its activities in the administration and enforcement of this Act during the preceding year including information and recommendations on broad policies for the development and perfection of the program of the SSS. 3. efficient and stable administration of the System. 735. by the Solicitor General or any fiscal.D. upon application by the Commission. S- 1975) (b) Appeal to Courts. 735. and Sec. award. — The decision of the Commission upon any disputed matter may be received both upon the law and the facts by the Court of Appeals. (i) To acquire property. That the personnel of the SSS shall be selected only from civil service eligibles certified by the commissioner of civil service and be subject to civil service rules and regulations. No.A. or more frequently as may be necessary. P.D. 4. after being required to do so shall. R. or when requested by the Commission. No.D.

R. 2658) 2. and Sec. or activity of any kind and uses the services of another person who is under his orders as regards the employment. Service performed in the employ of a foreign government or international organization. Domestic service in a private home. — (a) The Commissioner on Auditor shall be the ex-officio Auditor of the SSS.D. P. the following terms shall. 3. 24. 1636. Definitions SECTION 8. 24. 5. as far as practicable. the legitimate spouse dependent for support upon the employee. Sec. any foreign government. P. Service performed by an individual in the employ of his son. 4. S- 1972. 5. Oaths. Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel is outside the Philippines. and he shall have. (As amended by Sec. daughter. or over twenty-one years of age.A. S-1975) (f) Compensation — All actual remuneration for employment. 2658. No. international . including corporations owned or controlled by the Government: Provided. 735. 5. 102. 735. Sec. — Any service performed by an employee for his employer. provided that he is congenitally incapacitated and incapable of self- support. physically or mentally. including the mandated cost of living allowance. take depositions. as well as the cash value of any remuneration paid in any medium other than cash except that part of the remuneration in excess of three thousand pesos received during the month. S-1972) (j) Employment. business.D. domestic or foreign. natural or juridical. 2658. P. — For the purposes of this Act. 6. That a self-employed professional shall be both employee and employer at the same time. Service performed in the employ of the Philippine Government or an instrumentality or agency thereof. 2658 and Sec. Auditor and Counsel. have the following meanings: (a) SSS — The Social Security System created by this Act. (As amended by Sec. and service performed by a child under the age of twenty-one years in the employ of his parents. No. 2. No.A. 2. P. Sec.O. however. certify to official acts. 5 P. funds and properties of the government are checked and audited under existing laws. E. R. 4 R. 4.A. (As amended by Sec. That his exemption notwithstanding. S-1975) Section 7. 1636. except — 1.D. not gainfully employed. except the Government and any of its political subdivisions. (i) Contribution — The amount paid to the SSS by the employee and by his employer in accordance with section eighteen of this Act. 1636. and Production of Records. No. No. industry. 3. legitimated or legally adopted child who is unmarried. R. (As amended by Sec. R. and the legitimate parents wholly dependent upon the covered employee for regular support. 5. No. (As amended by Sec. S-1972) (h) Monthly — The period from one end of the last payroll period of the preceding month to the end of the last payroll period of the current month if compensation is on hourly. 7. He or his representative shall act as legal adviser and counsel thereof. 4.Section 6. 3. Witnesses. Terms Defined. 1792. 2658 and Sec.D. 4. 24. No. undertaking. P. No. Agricultural labor when performed by a share or leasehold tenant or worker who is not paid any regular daily wage or base pay and who does not work for an uninterrupted period of at least six months in a year. He or his representative shall check and audit all the accounts.D. No. S-1979) (d) Employee — Any 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. R. P. unless the context indicates otherwise. 2. funds and properties of the SSS in the same manner and as frequently as the accounts.A. R. daily or weekly basis. (As amended by Sec. P. the same powers and duties as he has with respect to the checking and auditing of public accounts. 4. S-1979) (e) Dependent — The legitimate. Employment purely casual and not for the purposes of occupation or business of the employer. and not over twenty-one years of age. papers. funds and properties in general. 4. if on any other basis. branches or instrumentalities. or their wholly-owned instrumentality: Provided. "monthly" shall mean a period of one month.D. B. (As amended by Sec. correspondence and other records deemed necessary as evidence in connection with any question arising under this Act. 4. (As amended by Sec.A. (As amended by Sec. who carries on in the Philippines any trade. and issue subpoena and subpoena duces tecum to compel the attendance of witnesses and the production of books.D.D.A.A. S-1986) (g) Monthly salary credit — The compensation base for contributions and benefits as indicated in the schedule in section eighteen of this Act. (c) Employer — Any person. or spouse. S-1979) (b) Commission — The Social Security Commission as herein created. Any case of contumacy shall be dealt with in accordance with the provisions of section five hundred eighty of the Administrative Code. (b) The Secretary of Justice shall be the ex-officio counsel of the SSS. 4857. where there is an employer-employee relationship: Provided. That a self-employed professional shall be both employee and employer at the same time. an official or employee thereof shall have the power to administer oath and affirmation. and Sec. — When authorized by the Commission.

No. 3.A. 5. which may be necessary to adopt by reason of the reduced contribution thereto as a result of the integration.A. R. 3. P. or the result obtained by dividing the sum of all the monthly salary credits paid prior to the semester of contingency by the number of calendar months of coverage in the same period. 4857. 4857 and Sec.A. No. . 4857) (q) Replacement ratio — The sum of twenty per cent and the quotient obtained by dividing three hundred by the sum of three hundred forty and the average monthly salary credit. 177. No. nineteen hundred seventy five minus the calendar year of coverage plus the number of calendar years in which six or more contributions have been paid from January 1975 up to the calendar year containing the semester prior to the contingency. 1636. 5. That the effectivity of the coverage of the following self-employed persons shall be in accordance with section ten (b) hereof: 1. S-1975.D.A. R. Compulsory Coverage of the Self-employed. 2. (As amended by Sec. — (a) Coverage in the SSS shall be compulsory upon all employees not over sixty years of age and their employers: Provided.A. 5. 2658. P. death. and Sec. 735. That private plans which are existing and in force at the time of compulsory coverage shall be integrated with the plan of the SSS in such a way where the employer's contribution to his private plan is more that that required of him in this Act he shall pay to the SSS only the contribution required of him and he shall continue his contribution to such private plan less his contribution to the SSS so that the employer's total contribution to his private benefit plan and to the Social Security System shall be the same as his contribution to his private benefit plan before the compulsory coverage: Provided. (As amended by Sec. That any changes. Sec. (As amended by Sec. P. P. adjustments.O. For a member covered in or after January 1975. injury or sickness of the covered employee. 735.A.A. All self-employed professionals licensed by the Professional Regulations Commission or those licensed to practice law. the dependent parents and.A. 1. 4857. Sec. 5. RA 4857. (As amended by Sec. That the private benefit plan which the employer shall continue for his employees shall remain under the employer's management and control unless there is an existing agreement to the contrary: Provided. No. R. or their wholly-owned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines may enter into an agreement with the Philippine Government for the inclusion of such employees in the SSS except those already covered by their respective civil service retirement systems: Provided. shall be subject to agreements between the employers and employees concerned: Provided. S-1986) (o) Semester — A period of two consecutive quarters ending in the quarter of contingency. 102. That the effectivity of coverage of certain groups of self-employed shall be determined by the Commission under such rules and regulations it may prescribe: Provided. P. R. June. R. No.D. Such other services performed by temporary employees who may be excluded by regulation of the Commission. 2. No. 3839. 2658. eliminations or improvements in the benefits to be available under the remaining private plan.D. Scope of the System SECTION 9. P. finally. and Sec. S-1979) C. No. 3. further. Sec. S-1975) (m) Average monthly salary credit — The result obtained by dividing the sum of the monthly salary credits in the sixty-month period immediately preceding the semester of contingency by the number of months of coverage in the same period. (As amended by Sec. P. the number of calendar years in which six or more contributions have been paid from the year of coverage up to the calendar year containing the semester prior to the contingency. P.D. S-1975) Section 9-A. 6. (As amended by Sec. September and December. organization. finally. further. — Coverage in the SSS shall also be compulsory upon all self-employed persons earning P1.D. That the provisions of this Act shall be supplementary to any such agreement. 3. S-1975) (k) Beneficiaries — The dependent spouse until he remarries and dependent children. 5. further. 1972. 735.D. 2. That the injury or sickness which caused the disability shall be deemed as the permanent disability for the purpose of computing the average monthly salary credit. 735. In the absence of any of the foregoing. S-1973 and Sec. 1636. S-1975) (p) Quarter — A period of three consecutive calendar months ending on the last day of March. further. E. (As amended by Sec. the legitimate descendents and illegitimate children who shall be the secondary beneficiaries.A. 3839) (b) Filipinos recruited in the Philippines by foreign-based employers for employment abroad may be covered by the SSS on a voluntary basis.D. (As amended by Sec.D. 177. 5. R. That nothing in this Act shall be construed as a limitation on the right of employers and employees to agree on and adopt benefits which are over and above those provided under this Act. 735. R. That any benefit already earned by employees under private benefit plans existing at the time of the approval of this Act shall not be discontinued. any other person designated by the covered employee as secondary beneficiary. That the terms of such agreement shall conform with the provisions of this Act on coverage and amount of payment of contributions and benefits: Provided. 5.800 or more per annum: Provided. R. 2.D. Partners and single proprietors of businesses. 2.D. P. subject to the restrictions imposed on dependent children. and Sec. modifications. (As amended by Sec. S-1975) (n) Average daily salary credit — The result obtained by dividing the sum of the six highest monthly salary credits in the twelve-month period immediately preceding the semester of contingency by one hundred eighty. P. S-1975) 8. No. (As amended by Sec. S-1973. S-1975) (l) Contingency — The retirement. 3. 3. P. 5. No. 5. 735.D. who shall be the primary beneficiaries. No. 4. reduced or otherwise impaired: Provided. permanent disability. whichever is greater: except where the month of contingency falls within eighteen months from the month of coverage. Sec. P. No. R. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the services of said contractors. Sec. 1.D. (As amended by Sec. (As amended by Sec. Compulsory coverage. In their absence. No. in which case it is the result obtained by dividing the sum of all monthly salary credits paid prior to the month of contingency by the total number of calendar months of coverage in the same period: Provided. further. 735. and Sec. 735. S-1979) (r) Credited years of service — For a member covered prior to January 1975. No.

(As amended by Sec.D.A. S-1986) Section 13. No. That the monthly pension of surviving pensioners as of December 31. He shall again be subject to section eighteen and his employer to section nineteen of this Act. 1202. P. No.D. Actors and actresses. Effect of Interruption of Business or Professional Income. and Sec. 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. No. Sec. That if the foregoing condition is not satisfied his primary beneficiaries shall be entitled to a lump sum benefit equivalent to thirty-five times the monthly pension: Provided. R. P. 1202. R. — (a) The monthly pension shall be the sum of the following: The average monthly salary credit multiplied by the replacement ratio. S-1979) (d) Upon the death of the retired employee pensioner. coaches. 7. That if he has no primary beneficiaries and he dies within sixty months from the start of his monthly pension.D.O. directors. No.D. his primary beneficiaries as of the date of his retirement shall be entitled to eighty per cent of the monthly pension and his dependents to the dependents' pension: Provided. 7. P. Sec. (As amended by Sec. 1636. 5. No. R. shall be entitled to a lump sum benefit equal to the total contributions paid by him and on his behalf: Provided. 2658. 1202. That his dependents born before his retirement of a marriage subsisting when he was fifty-seven years old shall be entitled to the dependents' pension.A. however. No. 7. 2658.D. Sec. but said employee shall be credited with all contributions paid on his behalf and entitled to benefits according to the provisions of this Act. however. No. R.A. S-1977 and Sec. S-1977.A. his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the bigger of (1) twenty times the monthly pension or (2) the difference of sixty times the monthly pension and the total monthly pensions paid by the SSS excluding the dependents' pension. That he is separated from employment and is not continuing payment of contributions to the SSS on his own. 1636.D. — Compulsory coverage of the employer shall take effect on the first day of his operation and that of the employee on the day of his employment: Provided. and One and a half per cent of the average monthly salary credit for each credited year of service in excess of ten years. S-1977. Sec. 4. (As amended by Sec. That the minimum death benefit shall not be less than the total contributions paid by him and his employer on his behalf nor less than one thousand pesos: Provided. 1792. Sec. further. R. 7.D. S-1975.D.A. 1980. 3. Monthly Pension. P. 735. S-1977) (b) A covered member who is sixty years old at retirement and who does not qualify for pension benefits under paragraph (a) above. P. 3. Sec. No. S-1979 and E. S-1972. 735. 1636. S-1986. Retirement Benefits.A. (c) The monthly pension shall be reduced upon the re-employment of a retired employee who is less than sixty-five years old by an amount equivalent to one-half his earnings over three hundred pesos. 4. (As amended by Sec. S-1979) Section 11. No. 28.O. Effective Date of Coverage. 7. No. S- 1979. 6. R. P. P. (As amended by Sec. No. P. S-1979) Section 10. 1792.A.D. He may. S-1973. 6. No. No. P. P. 1972. 1202. P. shall be entitled for as long as he lives to the monthly pension: Provided. be allowed to continue paying contributions under the same rules and regulations applicable to separated covered employees. P. No. (As amended by Sec. 177.D.D. (As amended by Sec. No. 4. all provisions of the SSS Law applicable to covered employees shall also be applicable to the covered self-employed persons. his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to twenty times the monthly pension: Provided. 102. Sec. 4. 8. P. S-1986) Section 12-A. — The dependents' pension shall be equivalent to ten per cent of the monthly pension for each dependent child but not exceeding five. No. Sec. 4857. 6. 3. and Sec. S-1975) Section 11-A. and Sec. S-1973. 3. — When an employee under compulsory coverage is separated from employment. 4857 and Sec. Death Benefits. P. further. trainers licensed by the Games and Amusement Board as well as jockeys and trainers licensed by the Philippine Racing Commission. 1636. 24.D. Benefits SECTION 12.D. 4.D. (As amended by Sec. That if he has no primary beneficiaries. however. 2658.D. S-1979) D. 7.D. — If the self-employed realizes no net professional or business income in any calendar year. No. P. Sec. 3. scriptwriters and news correspondents who do not fall within the definition of the term "employee" in section eight (d) of this Act. Professionals athletes.O. 6. (b) The monthly pension shall in no case be less than two hundred pesos nor paid in an aggregate amount of less than sixty times the monthly pension except to a secondary beneficiary: Provided. 1986 shall be increased by twenty per cent. E. No. P. 5. 1636. S-1977) Section 12-B. 177. He may. That the beneficiaries of the covered employee who dies without having paid at least three monthly contributions shall be entitled to the minimum benefit. S-1972. 1636. — Upon the covered employee's death. Dependents' Pension. R. (As amended by Sec. 1636.D. 6. S-1975. S- 1979) .D. No. beginning with the youngest and without substitution. he shall not be required to pay contributions for the succeeding year. — (a) A covered employee who has paid at least one hundred twenty monthly contributions prior to the semester of retirement. Effect of Separation from Employment. P. his primary beneficiaries shall be entitled to the monthly pension and his dependents to the dependents' pension: Provided. Sec. 8. and who (1) has reached the age of sixty years and is not receiving monthly compensation of at least three hundred pesos or (2) has reached the age of sixty-five years. No. Unless otherwise specified herein. No. 8. 7. That he has paid at least thirty-six monthly contributions prior to the semester of death: Provided. 735. R. Sec. 1202. P. 24. 2. finally. continue to pay the total contributions to maintain his right to full benefit. 5. (As amended by Sec. Sec. No. 1. P.D. E. 102.A. Sec. Sec. 4. That the compulsory coverage of self-employed persons referred to in paragraphs (1) to (4) shall take effect on the first day of January following the calendar year they started the practice of their profession or business operations but in no case earlier than January 1.

P. 1636. further. P. No. 9. 3. That if he has no primary beneficiaries and he dies within sixty months from the start of his monthly pension. 1636. 5. S-1979) (c) Upon the death of the permanent total disability pensioner. S-1979) (f) If the disability is permanent partial and such disability occurs after thirty-six monthly contributions have been paid prior to the semester of disability. his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the bigger of (1) twenty times the monthly pension or (2) the difference of sixty times the monthly pension and the total monthly pensions paid by the SSS excluding the dependents' pension. No. P. That if the disability occurs before he has paid thirty-six monthly contributions prior to the semester of disability. Brain injury resulting to incurable imbecility or insanity. S-1979) (e) If the disability is permanent partial. P. S-1977 and Sec. 1636. S-1986) (d) The following disabilities shall be deemed permanent total: 1. No. the benefit shall be such percentage of the lump sum benefit described in the preceding paragraph with due regard to the degree of disability as the Commission may determine. 1636. 1202. (As amended by Sec. his primary beneficiaries as of the date of disability shall be entitled to eighty per cent of the monthly pension and his dependents to the dependents' pension: Provided.D. S-1975 and Sec. 4. 735.D. (As amended by Sec.O. 9. he shall be entitled to a lump sum benefit equivalent to thirty-five times the monthly pension: Provided.D. No. or his failure to present himself for examination at least once a year upon notice by the SSS. No. Loss of two limbs at or above the ankle or wrists.D. S- 1979 and Sec. P. S-1979) . and. the benefit shall be the monthly pension for permanent total disability payable not longer than the period designated in the following schedule: Complete and permanent Number of loss of use of Months One thumb 10 One index finger 8 One middle finger 6 One right finger 5 One little finger 3 One big toe 6 One hand 39 One arm 50 One foot 31 One leg 46 One ear 10 Both ears 20 Hearing of one ear 10 Hearing of both ears 20 Sight of one eye 25 (As amended by Sec. That a covered employee who becomes permanently totally disabled without having paid at least three monthly contributions shall be entitled to the minimum benefit: Provided.D. P.Section 13-A. 6. The monthly pension and dependents' pension shall be suspended upon his recovery from the permanent total disability. No. Such cases as determined and approved by the SSS. 9. Permanent disability benefits. P. No. No. No. S-1977) (b) The monthly pension shall be reduced upon his re-employment by an amount equivalent to one-half of his earnings over three hundred pesos. That the minimum disability benefit shall not be less than the total contributions paid by him and his employer on his behalf nor less than one thousand pesos: Provided. P. (As amended by Sec. finally. he shall be entitled to the monthly pension and his dependents to the dependents' Pension: Provided. 6. if such disability occurs after he had paid at least thirty-six monthly contributions prior to the semester of disability. 9. 1636. 6.D. Permanent complete paralysis of two limbs. 102. further. That a member who (1) received a lump sum benefit and (2) is re-employed not earlier than one year from date of his disability shall again be subject to compulsory coverage and considered a new member. (As amended by Sec.D. and such disability occurs before thirty-six monthly contributions have been paid prior to the semester of disability.D. 2. (As amended by Sec. 10. 9. 1202. E. Complete loss of sight of both eyes. — (a) Upon the covered employee's permanent total disability.

No. (As amended by Sec. in which case the employee shall be deemed as permanently totally disabled. 2658. Provided. 4857. Sec.A. S-1972 and Sec. for as long as such allowances are due and payable: Provided. R. S-1972. Maternity Leave Benefit. (As amended by Sec. 24. P. (As amended by Sec. if such person is unemployed. P. P. 8. (As amended by Sec. 4482. P.D. S-1986) (1) In no case shall the total amount of such daily allowance be less than seven pesos and fifty centavos nor exceed seventy- five pesos nor paid longer than one hundred twenty days in one calendar year. .D. (c) That in case of caesarian delivery. but shall be additive for deteriorating and related permanent partial disabilities. 4857. P. E.D. S-1979) (b) The compensable confinement shall begin on the first day of sickness.O. (b) That the payment shall be advanced by the employer in two equal installments within thirty days from the filing of the maternity leave application. No. 177. further. Sec. That should no payment be received by the employer within one month after the period prescribed herein for adjudication the reimbursement shall thereafter earn simple interest of one per cent per month until paid. 2658. S-1972. 735. P. 1973. 24. 8. 9. 11. 8. shall.O. S- 1975. 3. S-1973. for each day of compensable confinement or fraction thereof. to a maximum of one hundred per cent. No.A. 10. S-1972) (e) The claim of reimbursement shall be adjudicated by the SSS within a period of two months from receipt thereof. (As amended by Sec. S-1986) Section 14.O. No. finally. No. Sickness Benefit.D.D. 24. That in cases where notification is necessary. No.A. (d) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act for the same compensable period of sixty days for the same childbirth. 7. S-1986. P.D. 12. be paid by his employer. 8. 1636. Sec. permanently totally disabled employee or retiree. No. No. the confinement shall be deemed to have started not earlier than the fifth day immediately preceding the date of notification. Sec. R. (As amended by Sec. or the SSS. 8. abortion. P.A. (As amended by Sec.D. 14. P. which is equivalent to the ratio that the designated number of months of compensability bears to seventy-five. S-1972) (f) The provisions regarding the notification required of the covered employee and the employer as well as the period within which the claim for benefit or reimbursement may be filed shall apply to all claims filed with the SSS beginning January 1. — (a) A covered employee who has paid at least three monthly contributions in the twelve-month period immediately preceding the semester of sickness and is confined for more than three days in a hospital or elsewhere with the Commission's approval. No.D. That the employer has notified the SSS of the confinement within five calendar days after receipt of the notification from the employee: Provided.O. S-1979) Section 13-B. 8. and (3) The employee shall notify his employer of the fact of his sickness or injury within five calendar days after the start of his confinement unless such confinement is in a hospital or the employee became sick or was injured while working or within the premises of the employer in which case notification to the employer is not necessary: Provided. and Sec. That if the member is unemployed he shall directly notify the SSS of his confinement within five calendar days after the start thereof unless such confinement is in a hospital in which case notification is also not necessary: Provided. 24. E.(g) The percentage degree of disability. — A covered female employee who has paid at least three monthly maternity contributions in the twelve-month period preceding the semester of her childbirth. 102. R. except confinement in a hospital in which case the claim for benefit or reimbursement must be filed within one year from the last day of confinement. That the SSS shall reimburse the employer or pay the unemployed member only for confinement within the one year period immediately preceding the date the claim for benefit or reimbursement is received by the SSS. shall not be additive for distinct. 8. 102.A.D. 7. 12. 9. R. Funeral Benefit. No. No. and Sec. E. the employees shall be paid the daily maternity benefit for seventy-eight days. No.A. 1. No.D. Sec. — A funeral grant of two thousand pesos shall be paid to help defray the cost of funeral expenses upon the death of a covered member. 28.D.D. Sec. 28. abortion. R. 3. further. S-1986) (2) No employee shall be paid any sickness benefit for more than two hundred forty days on account of the same confinement. an allowance equivalent to ninety per cent of his average daily salary credit. No. Sec. S- 1975. 735. 7. and the payment of such allowances shall be promptly made by the employer every regular payday or on the fifteenth and last day of each month. S-1972) Section 14-A. allowances and other benefits or the cash equivalents of such benefits for sixty days subject to the following conditions: (a) That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth which notice shall be transmitted to the SSS in accordance with the rules and regulations it may provide. and Sec. 9. Sec. 9. S-1972) (d) Where the employee has given the required notification but the employer fails to notify the SSS of the confinement or to file the claim for reimbursement within the period prescribed in this section resulting in the reduction of the benefit or denial of the claim such employer shall have no right to recover the corresponding daily allowance he advanced to the employee as required in this section. 1636. 735. (As amended by Sec. 735.A. S-1986 and Sec. 7. S-1975) (c) One hundred per cent of the daily benefits provided in the preceding paragraph shall be reimbursed by the SSS to said employer upon receipt of satisfactory proof of such payment and legality thereof: Provided. subject to the following conditions: (As amended by Sec. No. 2658. 28. No. or miscarriage. said employer shall be reimbursed only for each day of confinement starting from the tenth calendar day immediately preceding the date of notification to the SSS: Provided. R. 5. That such allowance shall begin only after all sick leaves of absence with full pay to the credit of the employee shall have been exhausted. Sec. and similarly in the case of direct payment by the SSS. R. rounded to the next higher integer. P. 2. E. 24. No.O. 24. nor shall any unused portion of the one hundred twenty days of sickness benefit granted under this section be carried forward and added to the total number of compensable days allowable in the subsequent year.D. E. No. P. P. That if the notification to the SSS is made by the employer beyond five calendar days after receipt of the notification from the employee. (As amended by Sec. 4857. separate and unrelated permanent partial disabilities. and Sec. P. or miscarriage and who is currently employed shall be paid a daily maternity benefit equivalent to one hundred per cent of her present basic salary.

8.3 84 IX 1100 . assessment.00 P 6. (As amended by Sec. That if the recipient is a minor or a person incapable of administering his own affairs.249. That in case of death benefits. 13. the Commission shall appoint a representative under such terms and conditions as it may deem proper: Provided. compensation or earnings during the month in accordance with the following schedule effective on January 1.500. and Sec. the payment of benefits under this Act shall bar the recovery of similar benefits under Title II of Book IV of the Labor Code of the Philippines. Exemption from Tax. No. S-1973 and Sec. Sec. P.7 14. 7. however. Sources of Funds — Employment Records and Reports SECTION 18. or any other person for the collection thereof on their behalf shall be recognized.699. further. S-1972 and Sec. 2658.00 101.2749. Such benefits are not transferrable and no power of attorney or other document executed by those entitled thereto.349.1 35. as amended. all contributions collected and all accruals thereto and income or investment earnings therefrom as well as all supplies. (As amended by Sec.D. S-1979.99 P 125.2 V 350 . the employer shall deduct and withhold from such employee's monthly salary. in favor of any agent.99 2. P. (e) That the maternity benefits provided under this section shall be paid only for the first four deliveries after March 13.500.2 10 25. fees or charges. the employee's contribution in an amount corresponding to his salary. Attorneys.250. S- 1972. if no beneficiary qualifies under this Act.99 425 21.99 800 40.10 P 10. P. That notwithstanding any law to the contrary. 1987 shall be as follows: Salary Range of Monthly Salary Monthly . S-1975) Section 17. and the SSS shall in turn pay such amount to the employee concerned. which fees shall not be payable before the actual payment of the benefits. 24. No.2 VIII 900 .A. 14. or both. That such appointment shall not be necessary in case the recipient is under the custody of or living with the parents or spouse of the employee in which case the benefits shall be paid to such parents or spouse.1399.00 63.3 210 XIII 2750 .899.9 IV 250 .3 66.50 II 150 .7 VI 500 . 8. 24. and shall not be liable to attachments.A. No. attorney.99 300 15. the employer shall pay to the SSS damages equivalent to the benefits which said employee would otherwise have been entitled to. 10. Any violation of the provisions of this Section shall be punished by a fine of not less than five hundred pesos nor more than five thousand pesos. P.5 26. etc. further.A. levy or seizure by or under any legal or equitable process whatsoever. P.00 152 100 252 The tabulated schedule for the monthly contribution of the self-employed and voluntary members effective January 1. either before or after receipt by the person or persons entitled thereto.1749. as representative payee of the recipient. papers or documents which may be required in connection with the operation or execution of this Act shall be exempt from any tax. and any stipulation to the contrary shall be null and void. No. 1987: Salary Bracket Range of Monthly Salary Monthly Contribution Number Compensation Credit Employer Employee Total I P 1 . P.D. R. R. 8-A. — All laws to the contrary notwithstanding the SSS and all its assets and properties. That the beneficiary who is a national of a foreign country which does not extend benefits to a Filipino beneficiary residing in the Philippines. P. where the best interest of the SSS will be served. 7322) Section 15. or without the latter having been previously notified by the employer of time of the pregnancy. P.99 1. and any stipulation to the contrary shall be null and void.7 168 XII 2250 .5 18. shall not be entitled to receive any benefit under this Act: Provided. and all benefit payments made by the SSS shall likewise be exempt from all kinds of taxes. 3839. S-1975) Section 16.D.99 2. (f) That the SSS shall immediately reimburse the employer of one hundred per cent of the amount of maternity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof.4 VII 700 .7 83. 347.00 76 50 126 XI 1750 . Sec.1099.000. at the discretion of the court. compensation or earnings. except when they are physically unable to collect personally such benefits: Provided. 4.7 33. Any tax assessment against. 1202. 1202. said benefits shall be paid to the legal heirs in accordance with the law of succession: Provided. equipment. 735.99 1.OVER 3.4 20 50. No. garnishments. That notwithstanding the foregoing. — (a) Beginning as of the last day of the calendar month when an employee's compulsory coverage takes effect and every month thereafter during his employment. 1636. Sec. Employee's Contribution. No tax measure hereafter enacted shall apply to the SSS. (As amended by Sec. or which is not recognized by the Philippines. charge. or imprisonment for not less than six months nor more than one year. the Commission may direct payments without regard to nationality or country of residence: Provided.3 41.A. (As amended by Sec.D.D. No.4 7. Sec.499.00 50.149. fee.199. 1973.D. The retention or deduction of any amount from any benefit granted under this Act for the payment of fees for such services is prohibited: Provided. 11. further.2249. That any member of the Philippine Bar who appears as counsel in any case heard by the Social Security Commission shall be entitled to attorney's fees not exceeding ten per cent of the benefits awarded by the Commission.99 600 30.D. during the period of such payment for the same contingency. and conversely. unless it expressly revokes the declared policy of the State in section two hereof granting tax-exemption to the SSS. R. further. S-1977) E.000. and R.7 III 200 . or customs or import duty. No.D. 4. finally. 9. except to pay any debt of the covered employee to the SSS. and still unpaid by the SSS shall be null and void. Fee of Agents. No.7 67.99 1.40 P 4. 4857. 735.99 225 11. Legal Process and Lien. filing or pursuing any claim for benefit under this Act shall demand or charge for his services any fee. and (g) That if an employee should give birth or suffer abortion or miscarriage without the required contributions having been remitted for her by her employer to the SSS. — The SSS shall pay the benefits provided for in this Act to such persons as may be entitled thereto in accordance with the provisions of this Act: Provided. — No agent. S-1977. Non-transferability of Benefits.99 175 9 5. wage.000. attorney or other person in charge of the preparation. wage.00 126.6 14.7 105 X 1400 .

at the start of the year.99 1. 1636.D. R. 13. (As amended by Sec.399. Bracket compensation Credit Contribution Number I P 1 .D.500. No. S-1986) (b) Every employer shall issue a receipt for all contributions deducted from the employee's compensation or shall indicate such deductions on the employee's pay envelopes.99 1.99 2.2. Government Guarantee. Sec.699.99 P 125. 15.99 300 24 V 350 .99 425 34 VI 500 . R.00 120 XI 1. Sec. That upon separation of an employee.99 175 14 III 200 .D. 24. S-1972) (b) The contributions payable under this Act in cases where an employer refuses or neglects to pay the same shall be collected by the SSS in the same manner as taxes are made collectible under the National Internal Revenue Code. Net earnings as understood under this section shall be the net income from his business or profession as reflected in the income tax return for the immediately preceding year. as amended. No. No. 1636. S-1979) Section 19. Contributions of the Self-employed. (b) The remittance of such contributions by the employer shall be supported by a quarterly collection list to be submitted to the SSS at the end of each calendar quarter indicating the correct ID number of the employer.00 240 The maximum covered earnings or compensation of all SSS members shall be limited to three thousand pesos per month as provided in the foregoing schedules unless otherwise provided by the Social Security Commission through rules and regulations taking into consideration actual calculations and rate of benefits.249. interest investments and the like or all types of incomes which are not derived from his business registered with the SSS or from the practice of his profession.149.1. (As amended by Sec. 9. — (a) The contribution imposed in the preceding section shall be remitted to the SSS within the first seven days of each calendar month following the month for which they are applicable or within such time as the Commission may prescribe. That the average monthly net earnings declared by the self-employed at the time of his registration with the SSS shall be considered as his monthly compensation and he shall pay both the employer and employee contributions.000.D. 10. Government Contribution. (As amended by Sec. No. unless he makes. — (a) Beginning as of the last day of the month when an employee's compulsory coverage takes effect and every month thereafter during his employment. his employer shall pay. No.250.499. 12.749. the employer's contribution in accordance with the schedule indicated in section eighteen of this Act.500. and Sec.D. 1792. P. 1636.000.D. the Congress shall annually appropriate out of any funds in the National Treasury not otherwise appropriated.A.00 160 XII 2.99 600 48 VII 700 . If deemed expedient and advisable by the Commission.099. from the compensation of his employees covered by the SSS or otherwise recover from them the employer's contributions with respect to such employees. No.250 . the contributions payable by the employees to be advanced by their respective employers: Provided.349. — The contributions to the SSS of the self-employed shall be determined in accordance with section eighteen of this Act: Provided. in which case such latest declaration becomes the new basis of his monthly salary credit. No.750 . 24.00 100 X 1.99 800 64 VIII 900 . 2658.249. as the case may be. Section 21. P. (As amended by Sec. The average monthly net earnings declared by the self-employed member at the time of his registration shall remain the basis of his monthly salary credit.A.1. P. 14. P. The right to institute the necessary action against the employer may be commenced within twenty years from the time the delinquency is known or the assessment is made by the SSS.199. — As the contribution of the Government to the operation of the System. Failure or refusal of the employer to pay or remit the contributions herein prescribed shall not prejudice the right of the covered employee to the benefits of the coverage. directly or indirectly. P. he shall pay besides the contribution a penalty thereon of three per cent per month from the date the contribution falls due until paid. the collection and remittance of contributions shall be made quarterly or semi-annually in advance.A. S- 1972. S-1979) Section 20. Remittance of Contributions. P.899.99 2.00 80 IX 1. In addition to this contribution.1. the correct names and SS numbers of the employees and the total contributions paid for their account during the quarter.00 II 150 .00 P 10.2. (As amended by Sec. or from the time the benefit accrues.749. S-1979) Section 19-A. an employer shall not deduct.00 200 XIII 2.400 . (As amended by Sec.D. the Congress shall appropriate from time to time such sum or sums as may be needed to assure the maintenance of an adequate working balance of the funds of the System as disclosed by suitable periodic actuarial studies to be made of the operations of the System. (As amended by Sec. 12. 10. Notwithstanding any contract to the contrary. 11. 1202.99 225 18 IV 250 . 13. any contribution so paid in advance but not due shall be credited or refunded to his employer.99 1.000. Every employer required to deduct and to remit such contributions shall be liable for their payment and if any contribution is not paid to the SSS as herein prescribed. dividend. with respect to such covered employee.100 . — The benefits prescribed in this Act shall not be diminished and to guarantee said benefits the Government of the Republic of the Philippines accepts general responsibility for the solvency of the System. the necessary sum or sums to meet the estimated expenses of the System for each ensuing year.750 . S-1979) . P. R. excluding rental income.OVER 3. another declaration of his average monthly net earnings based on his income tax returns for the immediately preceding year. Employer's Contributions. 1792) Section 22. 1636.

No. and Sec. — The SSS shall require a complete and proper collection and payment of contributions and proper identification of the employer and the employee. P. P. their SSS numbers.(c) Should any person. P. E. P. No. Sec. (As amended by Sec. 13. No. (As amended by Sec. (c) and (d) of section twenty-two of this Act are also applicable to the collection of penalties and contributions of the covered self-employed. tickets. 4. as the Commission may specify through rules and regulations. including dependents' pension: Provided. S-1973. unless and until such other beneficiary notifies the SSS of his claim prior to the payments. 177.D. The SSS may also require each employer to submit. S- 1972) . the Commission may also collect the same in either of the following ways: (1) By an action in court. checks. No. That the SSS shall not be barred from determining and collecting the true and correct contributions due the SSS even after full payment pursuant to this paragraph. with respect to the persons in his employ. (As amended by Sec. No.A. 24. S-1979) (c) The records and reports duly accomplished and submitted to the SSS by the employee or the employer. except that in case of pension benefits. P. 24. occupations. 1202.D. nor shall the employer be relieved of his liability under section twenty-eight of this Act. That if an employee subject to compulsory coverage should die or become sick or disabled or reach the age of sixty without the SSS having previously received any report or written communication about him from his employer or a contribution paid in his name by his employer. No. each employer shall require as a condition to employment. natural or juridical. No. S-1975) (d) Every employer shall keep true and accurate work records for such period and containing such information as the Commission may prescribe. (As amended by Sec. 9. the names of the persons employed or separated from employment. the employer shall be liable to pay the SSS damages equivalent to five year's monthly pension. No. S-1975) Section 24. stamp. such numbers originally assigned to them should be used for purposes of this section: Provided. S-1972 and Sec. No. shall be kept confidential by the SSS except in compliance with a subpoena duces tecum issued by the Courts. Such records shall be open for inspection by the SSS or its authorized representatives quarterly or as often as the SSS may require. Sec. No. 1636.D. — (a) Each employer shall immediately report to the SSS the names. No.D. No. Sec. P. 735. P. civil status. Sec. P. ages. R. S-1972) (e) Effective July 1. S-1972. That if the contingency occurs within thirty days from the date of employment. further. unless the necessary corrections to such records and reports have been properly made by the parties concerned before the right to the benefit being claimed accrues. S-1975. The Sheriff's sale by virtue of said warrant shall be governed by the same procedure prescribed for executions against property upon judgments by a court of record.D.D. If as a result of such adjudication the SSS in good faith pays a monthly pension to a beneficiary who is inferior in right to another beneficiary or with whom another beneficiary is entitled to share. or (2) By issuing a warrant to the Sheriff of any province or city commanding him to levy upon and sell any real and personal property of the debtor. Method of Collection and Payment. salaries and dependents of all his employees who are subject to compulsory coverage: Provided. (As amended by Sec. as the case may be. That in case of employees who have earlier been assigned registration numbers by virtue of a previous employment.D.D. any employer who is delinquent or has not remitted all the monthly contributions due and payable may within six months from the issuance of this Executive Order remit said contributions to the SSS and submit the corresponding collection lists herefore without incurring the prescribed three per cent penalty. 24. 1792. P. P. (As amended by Sec. That the issuance of such registration numbers by the SSS shall not exempt the employer from complying with the provisions of paragraph (a) of this section. S-1979) Section 23. coupons.D.O. 13. 13. P. P. Payment may be made in cash. such payments shall discharge the SSS from liability. 16.D. 13. 16. 1636. the employer shall be relieved of his liability for damages. No. 13. and Sec. resulting in a reduction of benefits. which shall hear and dispose of the case in preference to any other civil action. 17. No. shall be presumed correct as to the data and other matters stated therein. No. shall not be divulged without the consent of the Administrator or any official of the SSS duly authorized by him. S-1975. or other reasonable devices that the Commission may adopt. S-1972 and Sec. 1202.D. the penalty of three per cent shall be imposed from the time the contributions first became due as provided in paragraph (a) of this section.D. 15. P. S-1977) (b) Should the employer misrepresent the true date of employment of his employees or remit to the SSS contributions which are less than those required in this Act. unless contradicted and overcome by other evidence: Provided. No. S-1986) Section 22-A. reports needed for the effective administration of this Act. The penalty of three per cent per month for late payments provided for in paragraph (a) of section twenty-two of this Act and the manner of collection of contributions specified in paragraphs (b). Remittance of Contributions of Self-employed.D. 15. 735. the employer shall pay to the SSS damages to the extent of such reduction. 12. 735. 24. 735. 6. S-1972. 1636. S-1972. 16.D. P. — Self-employed members shall remit their monthly contributions quarterly on such dates and schedules. (d) The last complete record of monthly contributions paid by the employer or the average of the monthly contributions paid during the past three years as of the date of filing of the action for collection shall be presumed to be the monthly contributions payable by and due from the employer to the SSS for each of the unpaid month. 24. 17.D. P. further. and Sec. the presentation of a registration number secured by the prospective employee from the SSS in accordance with such procedure as the SSS may adopt: Provided. (As amended by Sec. 11. (As amended by Sec. 1973.D. S-1979) In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof. in addition to an "Annual Register of New and Separated Employees" which shall be secured from the SSS wherein the employer shall enter on the first day of employment or on the effective date of separation. R. 12. default in any payment of contributions. the employer shall also be liable for the payment of the corresponding unremitted contributions and penalties thereon. 24. P. and such other data that the Commission may require and said annual register shall be submitted to the SSS in the month of January of each year. P. Employment Records and Reports. (As amended by Sec. 24. 12. 4857. 28. (As amended by Sec. the said employer shall pay to the SSS the damages equivalent to the benefits to which said employee would have been entitled had his name been reported on time by the employer to the SSS. Sec. No. 16.D. In case the employer fails to remit to the SSS the said contributions within the six months grace period. S-1977) (e) For purposes of this Section. and shall be made the basis for the adjudication of the claim.A. No.

shall redound to the benefit of the SSS. 17. age. S-1972. and Sec. purchases of office equipment and materials. S-1972. the SSS shall pay to the Insurance Commission an amount equal to the actual expenses of the Insurance Commission in the conduct of the examination including the salaries of the examiners and of the actuary of the Insurance Commission who have been assigned to make such examination for the actual time spent in said examination: Provided. That such investment shall not exceed thirty per cent of the Investment Reserve Fund. and Sec. S-1979. That the tolls shall be collected by the SSS for a reasonable fee.O.O. and Sec. operational expenses and the maintenance of regional offices of the SSS: Provided. P. 1636. aged and infirmed members and their families. S- 1975) . as well as the public welfare: Provided.D. S-1986) (e) In short and medium term loans to covered employees such as salary. microfilm copies of original SSS records and reports.D. S-1975) Section 24-A. educational. That if after said period of thirty days. Such portions of the Reserve Fund as are not needed to meet the current benefit obligations thereof shall be invested to earn an average annual income of at least nine per cent and shall be known as the 'Investment Reserve Fund' which shall be invested in any or all of the following: (As amended by Sec.D. R. R. No. No. Sec. 10. 14. (As amended by Sec.A.D. 18. 4857. 11. P.D. (As amended by Sec. shall have evidentiary value as the originals and be admissible as evidence in all legal proceedings.A. That not more than ten per cent of the Investment Reserve Fund at any time shall be invested for this purpose. S-1972. Sec. 735. 14. P. 24. or lives of mortgagors whose properties are mortgaged to the SSS.A. P. 16. S-1972. 102. whichever is smaller: Provided. (b) In interest-bearing deposits or securities in any domestic bank doing business in the Philippines: Provided. P. 15. Funds of the System Section 25.D. Sec. No. 2658. That any such investment shall be made with due diligence and prudence to earn the highest possible interest consistent with safety. Sec. P. R.D. 14. That the general law on insurance promulgated thereunder shall have suppletory application insofar as it is not in conflict with the SS Law and its rules and regulations. S-1972) (c) In loans or interest-bearing advances to the National Government for the construction of permanent toll bridges. P. S-1975. 102. P. 17. S-1973. No. (As amended by Sec. the SSS shall act as insurer of all or part of its interests on SSS properties mortgaged to the SSS. S-1986) (a) In interest-bearing bonds or securities of the Government of the Philippines. The Insurer Commission or its authorized representatives shall make an examination into the financial condition and methods of transacting business of the SSS at least once in two years. 65. and the report of said examination shall be submitted to the Commission and a copy thereof shall be furnished the office of the President of the Philippines within a reasonable time after the close of the examination: Provided.O." All amounts received by the SSS in connection with the aforesaid insurance operations shall be placed in the Mortgagors' Insurance Account. and all accruals thereto shall be deposited.A. P. administered and disbursed in the same manner and under the same conditions and requirements as provided by law for other public special funds: Provided. (h) The SSS may insure any of its interests or part thereof with any private company or reinsurer. 14. 11. and occupation. 24. 5. toll roads or government office buildings in accordance with actuarial considerations and the conditions prescribed by law in such cases: Provided. S-1986) (f) In other income earning projects and investments secured by first mortgages on real estate collaterals which. No. 18. 11. its members. further. (As amended by Sec.A.(f) Notwithstanding any law to the contrary. 13-A. That for each examination.D. (As amended by Sec. the difference shall not be availed of as additional expenses in the following years. 16. average monthly net income and his dependents: Provided. 1792. (As amended by Sec. R. the SSS shall establish a separate account to be known as the "Mortgagors' Insurance Account. That if the expenses in any year are less than the maximum amount permissible. the assets held in the Mortgagors' Insurance Account shall not be chargeable with the liabilities arising out of any other business the SSS may conduct but shall be held and applied exclusively for the benefit of the owners or beneficiaries of the insurance contracts issued by the SSS under this paragraph. 1. — All revenues of the SSS that are not needed to meet the current administrative and operational expenses incidental to the carrying out of this Act shall be accumulated in a fund to be known as the 'Reserve Fund'.O. No. Report and Registration of the Self-employed. and Sec. No. Sec. R. within thirty days from the effective date of coverage. 14. (As amended by Sec. 14. finally. in the determination of the Commission.D. 735. up to a maximum of ninety per cent of the appraised value of the properties to be mortgaged by the borrowers and in loans for the construction and the maintenance of hospitals and institutions for the sick. Sec. No. 24. 3839. That said bank shall first have been designated as the depository for this purpose by the Monetary Board of the Bangko Sentral ng Pilipinas: Provided. Sec. further. No. P. and Sec. Sec. 10. 4857. Notwithstanding any provision of law to the contrary. 24. For this purpose. 14. 18.D. No. civil status. That such deposits shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank.D.D. 19. Investment of Reserve Funds. 24.A. (As amended by Sec. further. E. 2658. 7. 102. — All moneys paid to or collected by the SSS every year under this Act. S-1972. S-1986) Section 26. duly certified by the official custodian thereof. No. That such investment in deposits or securities shall be equitably distributed to all designated banks. calamity and emergency loans: Provided. 735. 24. P.D. or bonds or securities for the payment of the interest and principal to which the faith and credit of the Republic of the Philippines is pledged. P. referred to in section 4 (j) of this Act: Provided. 24. S-1975. No. 177. the SSS shall not pay him the corresponding benefit. No. he should die or become sick. 735. No. S-1972) (d) In direct housing loans to covered employees and group housing projects giving priority to the low-income groups. (As amended by Sec. S-1979) F. R. No. No. The assets and liabilities of the Mortgagors' Insurance Account shall at all times be clearly identifiable and distinguishable from the assets and liabilities in all other accounts of the SSS. and Sec. R.A. No.D. That not more than twelve per cent of the total yearly contributions plus three per cent of other revenues shall be disbursed for salaries and wages. report to the SSS his name. — Each covered self-employed person shall. 102. Deposit and Disbursements.D. P. Sec. E. Sec. No. P. but such examination shall be limited to the insurance operation of the SSS as authorized under this section and shall not embrace the other operations of the SSS. 24. 15. Sec. 2658. 11. 1636. E. S-1972) (g) As part of its investment operations. P. E.D. No. No. or disabled or reach the age of sixty without the SSS having previously received such report. P.

or guaranteeing entity or its predecessors has paid regular dividends upon its preferred or guaranteed stocks for a period of at least three years next preceding the date of investment in such preferred or guaranteed stocks: Provided.D.A. alters. or under an agreement thereunder. finally. the corporation or institution has sufficient retained earnings to declare dividends for at least two years on such preferred stock: Provided. Penal Clause. the duration and amount of benefits paid. or both. prescribed pursuant to section twenty-three hereof by the Commission for the collection or payment of contributions required herein. coupon. S-1973. P. S-1972) (c) Whoever buys. two hundred seventeen of the Revised Penal Code. 15. (As amended by Sec. S- 1986) Section 27. 12. ticket. Sec. (i) In bonds. P. shall have been not less than one and one-quarter times the total of its fixed charges for such year: Provided. (As amended by Sec. or has in his possession any such altered. That where the violation consists in failure or refusal to register employees or himself. (As amended by Sec. of the issuing corporations: Provided. 15. E. and recommendations. sells. or other device. S-1986) (k) In common stocks of any solvent corporation or institution created or existing under the laws of the Philippines listed in the stock exchange with proven track record of profitability and payment of dividends over the last three years: Provided. forged. or document in connection with such claim or loan. or application for loan with the SSS. 177. where none is authorized to be paid. their occupations and employment status. He shall also cause to be published in two newspapers of general circulation in the Philippines a synopsis of the annual report. shall be fined not less than five hundred pesos nor more than five thousand pesos and imprisoned for not less than six months nor more than one year. (e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations promulgated by the Commission.O. payable or deliverable to the System and who shall appropriate the same. 2658. makes or counterfeits any stamp. taxes other than income taxes. employer or the SSS. shall make or cause to be made any 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. P. lends. No.D. S-1979) (f) If the act or omission penalized by this Act be committed by an association. affidavit. That if the corporation or institution has not paid dividends upon its preferred stocks. 102. and Sec. E. (g) Any employee of the System who receives or keeps funds or property belonging. (As amended by Sec. of the funds of the System and of disbursements thereof and all accounts of payments made out of said funds. uses. book or other device. shall be fined not less than one thousand pesos nor more than ten thousand pesos or imprisoned for not less than one year nor more than five years. (As amended by Sec. P. 5. E. takes or gives in exchange. (As amended by Sec. partnership. assuming or guaranteeing entity or its predecessors shall not have defaulted in the payment of interest on any of its securities and that during each of any three including the last two of the five fiscal years next preceding the date of acquisition by the SSS of such bonds. The Term 'fixed charges' shall include interest on funded and unfunded debt. That such investment shall not exceed 10 per cent of the Investment Reserve Fund. or both. or other evidences of indebtedness. 8. at the discretion of the court: Provided.D. uses. representation. 1792. shall suffer the penalties provided for in Art. assuming or guaranteeing institution available for its fixed charges. or has in his possession any such altered. its managing head. 8.O. in case of the covered self-employed or to deduct contributions from employee's compensation and remit the same to the SSS. the term 'net earnings available for fixed charges' shall mean net income after deducting operating and maintenance expenses. as the case may be. debentures or other evidences of indebtedness of any solvent corporation or institution created or existing under the laws of the Philippines: Provided. transfers. forged material in imitation of the material used in the manufacture of such stamp. or through abandonment or negligence shall permit any other person to take such property or funds. with intent to defraud. 102. ticket. the finances of the System at the close of the said year.A. wholly or partially. offers for sale. That the issuing. No. (As amended by Sec. or pledges or gives in pledge. 19. depreciation and depletion. or whoever makes or causes to be made any false statement.D. That such investment shall not exceed 10 per cent of the Investment Reserve Fund. or both. S-1973) (b) Whoever shall obtain or receive any money or check under this Act or any agreement thereunder. the amount of stocks so guaranteed is not in excess of fifty percentum of the amount of the preferred or common stocks. — The administrator shall keep and cause to be keep records of operations. coupon.D.D. except as authorized in this Act or in regulations made pursuant thereto. corporation or any other institution. 16. R. but excluding extraordinary non-recurring items of income or expense appearing in the regular financial statement of the issuing. No. No. No. assuming. at the discretion of the court. coupon. Sec. That the issuing. imprisonment for not less than six months nor more than one year. shall be punished by a fine of not less than five hundred pesos nor more than five thousand pesos. debentures.O. shall be fined not less than five hundred pesos nor more than five thousand pesos. That if the stocks are guaranteed. R. assuming or guaranteeing institution. further. 20. No. at the discretion of the court. No. for the purpose of causing any payment to be made under this Act. S-1986) (j) In preferred stocks of any solvent corporation or institution created or existing under the laws of the Philippines: Provided. That such investment shall not exceed ten per cent of the Investment Reserve Fund. 12. the Administrator shall prepare for submission to the President and to the Congress of the Philippines a report of operations of the System during the preceding year including statistical data on the number of persons covered and benefited. 347. 12. forges. 24. P. any stamp. S-1972. 2658) . directors or partners shall be liable to the penalties provided in this Act for the offense. or uses. amortization of debt discount and rentals for leased properties. or shall take or misappropriate or shall consent. 177. Records and Reports. No. 24. sells.A. one hundred seventy-two of the Revised Penal Code. shall suffer the penalties provided in Art. During the month of January of each year. R. ticket. (d) Whoever. or shall otherwise be guilty of misappropriation of such funds or property. P. 1636. 16. and Sec. or imprisoned for not less than six months nor more than one year. book or other device prescribed by the Commission for the collection or payment of any contribution required herein. showing in particular the status of the finances of the System and the benefits administered. sells. or counterfeited materials or makes. As used in this section. Sec. further. — (a) Whoever. No. book. as hereinafter defined. the net earnings of the issuing. Section 28. furthermore. 102. S-1973. without being entitled thereto with intent to defraud any covered employee. the penalty shall be a fine of not less than five hundred pesos nor more than five thousand pesos and imprisonment for not less than six months nor more than one year.

S-1972) (i) Criminal action arising from a violation of the provisions of this Act may be commenced by the SSS or the employee concerned either under this Act or in appropriate cases under the Revised Penal Code: Provided. 20. S-1977) Section 29. alter.D. S-1975. and no person shall be or shall be deemed to be vested with any property or other right by virtue of the enactment or operation of this Act. 15. Approved: June 18. Effectivity. No. fails to remit the said deductions to the SSS within thirty days from the date they became due shall be presumed to have misappropriated such contributions or loan amortizations and shall suffer the penalties provided in Art.D. P. Section 31. Saving Clause. 13. 24. or repeal any provision of this Act. P. — The Assembly hereby reserves the right to amend. at the option of the SSS. Section 30. P. and Sec. Government Aid.D. 1202. the remainder of this Act or the application of said provision to other persons or circumstances shall not be affected by such declaration. — The establishment of the Social Security System shall not disqualify the covered employees and employers from receiving such government assistance. (As amended by Sec.D. three hundred fifteen of the Revised Penal Code. financial or otherwise. 1792 and Sec. — This Act shall take effect upon its approval. P. No. No. No.(h) Any employer who after deducting the monthly contributions or loan amortizations from his employee's compensation. Sec. R. S-1972. No. S-1975) Section 32. 19. Separability Clause. That such criminal action may be filed by the SSS in the city or municipality where the SSS provincial or regional office is located if the violation was committed within its territorial jurisdiction or in Metro Manila. 735. 21.D. as may be provided. 15. — In the event any provision of this Act or the application of such provision to any person or circumstance is declared invalid. (As amended by Sec. 19541awphil@alf . 24.A. 735. (As amended by Sec. P.

receiving compensation while in the service of an employer as defined herein. INSTITUTING REFORMS THEREIN AND FOR OTHER PURPOSES SECTION 1. Title. 1146. and two percent (2%) and twelve percent (12%) for employee and employer covering the compensation above the AMC limit. whether by election or appointment. (b) the legitimate. 186. agencies or instrumentalities. "(i) Compensation — The basic pay or salary received by an employee. "(m) Revalued average monthly compensation — An amount equal to one hundred seventy percent (170%) of the first One thousand pesos (P1. the legitimate descendants. and (c) the parents dependent upon the member for support. 8291 AN ACT AMENDING PRESIDENTIAL DECREE NO. including barangay and sanggunian officials. "(j) Contribution — The amount payable to the GSIS by the member and the employer in accordance with Section 5 of this Act. excluding per diems. as amended. That initially the average monthly compensation shall not exceed Ten thousand pesos (P10. including the illegitimate child. pursuant to his election/appointment. is hereby further amended to read as follows: "SECTION 1. "(c) Employer — The national government. or by the number of months he received such compensation if he has less than thirty-six (36) months of service: Provided. 1146. DEFINITIONS "SECTION 2. . allowances and any other emoluments received in addition to the basic pay which are not integrated into the basic pay under existing laws. and premium shall be nine percent (9%) and twelve percent (12%) for employee and employer covering the AMC limit and below. "(f) Dependents — Dependents shall be the following: (a) the legitimate spouse dependent for support upon the member or pensioner. "(h) Secondary beneficiaries — The dependent parents and. its political subdivisions. overtime pay. AS AMENDED. including government- owned or controlled corporations. "(k) Current Daily Compensation — The actual daily compensation or the actual monthly compensation divided by the number of working days in the month of contingency but not to exceed twenty-two (22) days. not gainfully employed. the constitutional commissions and the judiciary.' "A. not over the age of majority.000) of the average monthly compensation plus one hundred percent (100%) of the average monthly compensation in excess of One thousand pesos (P1.000.000). or is over the age of majority but incapacitated and incapable of self-support due to a mental or physical defect acquired prior to age of majority. "(b) Board — The Board of Trustees of the Government Service Insurance System. "(e) Active Member — A member who is not separated from the service. and financial institutions with original charters. "(g) Primary beneficiaries — The legal dependent spouse until he/she remarries and the dependent children. legitimated. Presidential Decree No. That the average monthly compensation shall in no case exceed the amount and rate as may be respectively set by the Board under the rules and regulations implementing this Act as determined by the actuary of the GSIS: Provided. EXPANDING AND INCREASING THE COVERAGE AND BENEFITS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM. subject to the restrictions on dependent children. honoraria. — The short title of this Act shall be: 'The Government Service Insurance System Act of 1997. the following terms shall mean: "(a) GSIS — The Government Service Insurance System created by Commonwealth Act No. "(o) Pensioner — Any person receiving old-age or permanent total disability pension or any person who has received the lump sum excluding one receiving survivorship pension benefits as defined in Section 20 of this Act. Definition of Terms. "(l) Average Monthly Compensation (AMC) — The quotient arrived at after dividing the aggregate compensation received by the member during his last thirty-six (36) months of service preceding his separation/retirement/disability/death by thirty-six (36). legally adopted child. "(d) Employee or Member — Any person. irrespective of status of appointment. "(n) Lump sum — The basic monthly pension multiplied by sixty (60). branches. further. "(r) Total Disability — Complete incapacity to continue with his present employment or engage in any gainful occupation due to the loss or impairment of the normal functions of the physical and/or mental faculties of the member. "(q) Disability — Any loss or impairment of the normal functions of the physical and/or mental faculty of a member which reduces or eliminates his/her capacity to continue with his/her current gainful occupation or engage in any other gainful occupation. "(p) Gainful Occupation — Any productive activity that provided the member with income at least equal to the minimum compensation of government employees. bonuses. REPUBLIC ACT NO.00). — Unless the context otherwise indicates. otherwise known as the "Revised Government Service Insurance Act of 1977". who is unmarried.

plus any additional premiums that may be required on account of the hazards or risks of its employees' occupation. Interests on Delayed Remittances. "C.0% — In Excess of the AMC Limit 2. Collection and Remittance of Contributions. — Membership in the GSIS shall be compulsory for all employees receiving compensation who have not reached the compulsory retirement age. "SECTION 4. including subsequent changes therein. except members of the Armed Forces of the Philippines and the Philippine National Police. . the employer shall deduct each month from the monthly salary or compensation of each employee the contribution payable by him in accordance with the schedule prescribed in the rules and regulations implementing this Act. — A member separated from the service shall continue to be a member. or delay the remittance of premium contributions to the GSIS. "(c) It shall be mandatory and compulsory for all employers to include the payment of contributions in their annual appropriations. — (a) The employer shall report to the GSIS the names of all its employees. salaries and such other pertinent information. subject to the condition that they must settle first their financial obligation with the GSIS. survivorship. The heads of offices and agencies shall be administratively liable for non-remittance or delayed remittance of premium contributions to the GSIS. "(b) Each employer shall remit directly to the GSIS the employees' and employers' contributions within the first ten (10) days of the calendar month following the month to which the contributions apply. if any. their corresponding employment status. "SECTION 7. Penal sanctions shall be imposed upon employers who fail to include the payment of contributions in their annual appropriations or otherwise fail to remit the accurate/exact amount of contributions on time. — (a) It shall be mandatory for the member and the employer to pay the monthly contributions specified in the following schedule: "Monthly Compensation Percentage of Monthly Compensation Payable by Member Employer I. "(u) Permanent Partial Disability — Accrues or arises upon the irrevocable loss or impairment of certain portion/s of the physical faculties. separation. Contributions. The remittance by the employer of the contributions to the GSIS shall take priority over and above the payment of any and all obligations. and shall be entitled to whatever benefits he has qualified to in the event of any contingency compensable under this Act.0% "Members of the judiciary and constitutional commissioners shall pay three percent (3%) of their monthly compensation as personal share. and their employers a corresponding three percent (3%) share for their life insurance coverage. and all other social security protection such as disability. "SECTION 6.0% 12. Such interest shall be paid by the employers concerned. positions. "(t) Temporary Total Disability — Accrues or arises when the impaired physical and/or mental faculties can be rehabilitated and/or restored to their normal functions. "(b) The employer shall include in its annual appropriation the necessary amounts for its share of the contributions indicated above. Compulsory Membership."(s) Permanent Total Disability — Accrues or arises when recovery from the impairment mentioned in Section 2(Q) is medically remote. — Agencies which delay the remittance of any and all monies due the GSIS shall be charged interests as may be prescribed by the Board but not less than two percent (2%) simple interest per month. and contractuals who have no employer and employee relationship with the agencies they serve. SOURCES OF FUNDS "SECTION 5. and unemployment benefits. as may be required by the GSIS.0% 12. MEMBERSHIP IN THE GSIS "SECTION 3. — Up to the Maximum AMC Limit 9. except salaries and wages of its employees. Effect of Separation from the Service. retirement. despite which the member is able to pursue a gainful occupation.0% II. all members of the GSIS shall have life insurance. "B. irrespective of employment status. Over the Maximum AMC Limit III.0% 12. "Except for the members of the judiciary and constitutional commissions who shall have life insurance only. Maximum Average Monthly Compensation (AMC) Limit and Below 9.

"The GSIS shall prescribe the detailed guidelines in the operationalization of this section in the rules and regulations implementing this Act. Government Guarantee. Separation Benefits. That he has been paying integrated contributions for at least one (1) year prior to separation.5%) of the revalued average monthly compensation. or "(b) A cash payment equivalent to eighteen (18) times his basic monthly pension payable at the time of resignation or separation. BENEFITS "SECTION 9. but not less than Twelve thousand pesos (P12. however. starting upon expiration of the five-year (5) guaranteed period covered by the lump sum. "SEPARATION BENEFITS "SECTION 11. further.00) a month. That the basic monthly pension shall not be less than One thousand and three hundred pesos (P1. Retirement Benefits. A seven-day (7) waiting period shall be imposed on succeeding monthly payments. Unemployment benefits shall be paid in accordance with the following schedule: "Contributions Made Benefit Duration 1 year but less than 3 years 2 months 3 or more years but less than 6 years 3 months 6 or more years but less than 9 years 4 months 9 or more years but less than 11 years 5 months 11 or more years but less than 15 years 6 months "The first payment shall be equivalent to two (2) monthly benefits. That the member resigns or separates from the service after he has rendered at least three (3) years of service but less than fifteen (15) years. "For the purpose of this section the term service shall include full time service with compensation: Provided. "(b) All service credited for retirement.300. "SECTION 10. "(b) The basic monthly pension may be adjusted upon the recommendation of the President and General Manager of the GSIS and approved by the President of the Philippines in accordance with the rules and regulations prescribed by the GSIS: Provided.00): Provided. That the basic monthly pension shall not exceed ninety percent (90%) of the average monthly compensation. That the member resigns or separates from the service after he has rendered at least fifteen (15) years of service and is below sixty (60) years of age at the time of resignation or separation. — (a) The computation of service for the purpose of determining the amount of benefits payable under this Act shall be from the date of original appointment/election."SECTION 8. "D. — The separation benefit shall consist of: (a) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions.000) payable upon reaching sixty (60) years of age or upon separation. whichever comes later: Provided. those performed overseas under the authority of the Republic of the Philippines. — Unemployment benefits in the form of monthly cash payments equivalent to fifty percent (50%) of the average monthly compensation shall be paid to a permanent employee who is involuntarily separated from the service due to the abolition of his office or position usually resulting from reorganization: Provided. plus an old-age pension benefit equal to the basic monthly pension payable monthly for life upon reaching the age of sixty (60): Provided. — The government of the Republic of the Philippines hereby guarantees the fulfillment of the obligations of the GSIS to its members as and when they fall due. "All accumulated unemployment benefits paid to the employee during his entire membership with the GSIS shall be deducted from voluntary separation benefits. including periods of service at different times under one or more employers. "SECTION 12.5%) of said revalued average monthly compensation for each year of service in excess of fifteen (15) years: Provided. That part time and other services with compensation may be included under such rules and regulations as may be prescribed by the GSIS. plus "2) two and one-half percent (2. — (a) the basic monthly pension is equal to: "1) thirty-seven and one-half percent (37. or .400. That the basic monthly pension for those who have rendered at least twenty (20) years of service after the effectivity of this Act shall not be less than Two thousand four hundred pesos (P2. Computation of the Basic Monthly Pension. resignation or separation for which corresponding benefits have been awarded under this Act or other laws shall be excluded in the computation of service in case of reinstatement in the service of an employer and subsequent retirement or separation which is compensable under this Act. Computation of Service. — (a) Retirement benefit shall be: "(1) the lump sum payment as defined in this Act payable at the time of retirement plus an old-age pension benefit equal to the basic monthly pension payable monthly for life. Unemployment or Involuntary Separation Benefits. and those that may be prescribed by the GSIS in coordination with the Civil Service Commission. "RETIREMENT BENEFITS "SECTION 13.

retirement shall be compulsory for an employee at sixty-five (65) years of age with at least fifteen (15) years of service: Provided."(2) cash payment equivalent to eighteen (18) months of his basic monthly pension plus monthly pension for life payable immed iately with no five-year (5) guarantee. notorious negligence. — (a) If the disability is partial. That if he has less than fifteen (15) years of service. Permanent Partial Disability Benefits. finally. That a member cannot enjoy the monthly income benefit for permanent disability and the old-age retirement simultaneously. he shall receive a monthly income benefit for life equal to the basic monthly pension effective from the date of disability: Provided. Conditions for Entitlement. or has paid a total of at least one hundred eighty (180) monthly contributions. — The monthly pension of all pensioners including all those receiving survivorship pension benefits shall be periodically adjusted as may be recommended by the GSIS' actuary and approved by the Board in accordance with the rules and regulations prescribed by the GSIS. "PERMANENT DISABILITY BENEFITS "SECTION 15. he shall receive a cash payment equivalent to eighteen (18) times his basic monthly pension: Provided. (2) he is at least sixty (60) years of age at the time of retirement. disability benefit shall be suspended when: "(1) he is reemployed or "(2) he recovers from disability as determined by the GSIS. — (a) If the permanent disability is total. That: (1) he has rendered at least fifteen (15) years of service. That: (1) he is in the service at the time of disability. "(b) Unless the service is extended by appropriate authorities. "(3) permanent complete paralysis of two(2) limbs. and (3) he is not receiving a monthly pension benefit from permanent total disability. he shall be advanced the cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions. — A member who retires from the service shall be entitled to the retirement benefits in paragraph (a) of Section 13 hereof: Provided. That if at the time of disability. or (2) if separated from the service. Permanent Total Disability Benefits. "(2) loss of two (2) limbs at or above the ankle or wrist. "(d) The following disabilities shall be deemed total and permanent: "(1) complete loss of sight of both eyes. "(b) The following disabilities shall be deemed permanent and partial: "(1) complete and permanent loss of the use of: (i) any finger (ii) any toe . he has paid at least thirty-six (36) monthly contributions within the five (5) year period immediately preceding his disability. and "(5) such other cases as may be determined by the GSIS. "(b) If a member who suffers permanent total disability does not satisfy conditions (1) and (2) in paragraph (a) of this section but has rendered at least three (3) years service at the time of his disability. prior to his disability: Provided. but not less than Twelve Thousand pesos (P12. General Conditions for Entitlement. subject to the corresponding conditions therefor. "SECTION 17. "SECTION 14. — A member who suffers permanent disability for reasons not due to his grave misconduct. in addition to the monthly income benefit. "(c) Unless the member has reached the minimum retirement age. "SECTION 16. That he satisfies either conditions (1) or (2) of Section 16(a).000) which should have been his separation benefit. habitual intoxication. whose decision shall be final and binding. Periodic Pension Adjustment. or "(3) he fails to present himself for medical examination when required by the GSIS. shall be entitled to the benefits provided for under Sections 16 and 17 immediately following. he was in the service and has paid a total of at least one hundred eighty (180) monthly contributions. "(4) brain injury resulting in incurable imbecility or insanity. he may be allowed to continue in the service in accordance with existing civil service rules and regulations. or willful intention to kill himself or another. "SECTION 13-A. further. he shall receive a cash payment in accordance with a schedule of disabilities to be prescribed by the GSIS: Provided.

That the deceased was in the service at the time of his death with at least three (3) years of service. the mode of payment. That the deceased: (i) was in the service at the time of his death. and (2) the dependent children's pension not exceeding fifty percent (50%) of the basic monthly pension.00) a day. Non-scheduled Disability. or has paid a total of at least one hundred eighty (180) monthly contributions prior to his death. he has rendered at least three (3) years of service and has paid at least six (6) monthly contributions in the twelve- month period immediately preceding his disability. the GSIS shall determine the nature of the disability and the corresponding benefits therefor. (3) "SECTION 21. Survivorship Benefits. That the deceased has rendered at least three (3) years of service prior to his death but does not qualify for the benefits under the item (1) or (2) of this paragraph. or (ii) if separated from the service. . — When a member or pensioner dies. That if the disability requires more extensive treatment that lasts beyond one hundred twenty (120) days.00): Provided. has at least three (3) years of service at the time of his death and has paid thirty-six (36) monthly contributions within the five-year period immediately preceding his death. "SURVIVORSHIP BENEFITS "SECTION 20. Temporary Total Disability Benefit. he/she shall receive the basic survivorship pension for life or until he/she remarries. "(c) The notices required of the member and the employer. (b) The survivorship pension shall be paid as follows: (1) when the dependent spouse is the only survivor. the beneficiaries shall be entitled to survivorship benefits provided in Sections 21 and 22 hereunder subject to the conditions therein provided for. That a member cannot enjoy the temporary total disability benefit and sick leave pay simultaneously: Provided.000. "SECTION 19. but not less than Twelve thousand pesos (P12. however. or "(2) if separated. — (a) A member who suffers temporary total disability for reasons not due to any of the conditions enumerated in Section 15 hereof shall be entitled to seventy-five percent (75%) of his current daily compensation for each day or fraction thereof of temporary disability benefit not exceeding one hundred twenty (120) days in one calendar year after exhausting all his sick leave credits and collective bargaining agreement sick leave benefits. The survivorship pension shall consist of: (1) the basic survivorship pension which is fifty percent (50%) of the basic monthly pension. That: "(1) he is in the service at the time of his disability. and the other requirements for entitlement to temporary total disability benefits shall be provided in the rules and regulations to be prescribed by the GSIS. — For injuries or illnesses resulting in a disability not listed in the schedule of partial/total disability. Provided. or (3) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions.(iii) one arm (iv) one hand (v) one foot (vi) one leg (vii) one or both ears (viii) hearing of one or both ears (ix) sight of one eye "(2) such other cases as may be determined by the GSIS. "(b) The temporary total disability benefit shall in no case be less than Seventy pesos (P70. the payment of the temporary total disability benefit may be extended by the GSIS but not to exceed a total of two hundred forty (240) days. the primary beneficiaries shall be entitled to: (1) survivorship pension: Provided. but not earlier than the fourth day of his temporary total disability: Provided. or (2) the survivorship pension plus a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for every year of service: Provided. Death of a Member. as provided herein. — (a) Upon the death of a member. if any. further. "TEMPORARY DISABILITY BENEFITS "SECTION 18.

(3) when the survivors are the dependent spouse and the dependent children. — An annual dividend may be granted to all members of the GSIS whose life insurance is in force for at least one (1) year in accordance with a dividend allocation formula to be determined by the GSIS. which shall automatically take effect as follows: (1) for those employed after the effectivity of this Act. who shall. hospitalization. to a beneficiary or claimant subsequently found not entitled thereto. but not less than Twelve thousand pesos (P12. Death of a Pensioner. legitimate children shall include legally adopted and legitimate children. Facility of Payment. — Subject to the rules and regulations prescribed by the GSIS. (2) for those whose insurance will mature after the effectivity of this Act.00): Provided. — The amount of funeral benefit shall be determined and specified by the GSIS in the rules and regulations but shall not be less than Twelve thousand pesos (P12. "E. as defined in Section 2(o) of this Act. That the member is in the service at the time of his death and has at least three (3) years of service. their insurance shall take effect on the date of their employment. 1616. proceeds.000. a member may apply for insurance and/or pre-need coverage embracing life. That the GSIS shall submit an annual report on its reinsurance operations to the Insurance Commission. they shall be entitled to the basic survivorship pension for as long as they are qualified. "SECTION 26. The payment of the premiums/installments for optional insurance and pre-need products may be made by the insured or his employer and/or any person acceptable to the GSIS.000. and such other plans as may be designed by the GSIS. ADJUDICATION OF CLAIMS AND DISPUTES "SECTION 28. and claims from the GSIS. — Claims for benefits under this Act except for life and retirement shall prescribe after four (4) years from the date of contingency. Compulsory Life Insurance. (3) for those without any life insurance as of the effectivity of this Act. the qualified beneficiaries shall be entitled to the survivorship pension defined in Section 20 of this Act. (d) For purposes of the survivorship benefits. "SECTION 22. and claims under this Act and any other laws administered by the GSIS.000): Provided. Prescription. proceeds. "SECTION 25. Dividends. health. Any employer may likewise apply for group insurance coverage for its employees. Payments made by the GSIS prior to its receipt of an adverse claim. have a right to institute the appropriate action in a court of law against the ineligible recipient. for himself and/or his dependents. or (d) a retiree who at the time of his retirement was of pensionable age under this Act but who opted to retire under Republic Act No. — All employees except for Members of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) shall. the secondary beneficiaries shall be entitled to: (1) the cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions. but who may be entitled to future benefit pursuant to Section 4 of this Act. subject to the provisions of paragraph (b) of Section 21 hereof. (2) when only dependent children are the survivors. That it shall be increased to at least Eighteen thousand pesos (P18. (c) In the absence of primary beneficiaries. under such terms and conditions as may be promulgated by the GSIS. the dependent spouse shall receive the basic survivorship pension for life or until he/she remarries. or (b) a member who has been separated from the service. plus the dependent children's pension equivalent to ten percent (10%) of the basic monthly pension for every dependent child not exceeding five (5). counted from the youngest and without substitution.00) after five (5) years and shall be paid upon the death of: (a) an active member as defined under Section 2(e) of this Act. — Upon the death of an old-age pensioner or a member receiving the monthly income benefit for permanent disability. education. their insurance shall take effect following said effectivity. or (2) in the absence of secondary beneficiaries. . When the pensioner dies within the period covered by the lump sum. Funeral Benefit. "LIFE INSURANCE BENEFITS "SECTION 24. "FUNERAL BENEFITS "SECTION 23. and the dependent children shall receive the dependent children's pension mentioned in the immediately preceding paragraph (2) hereof. their insurance shall be deemed renewed on the day following the maturity or expiry date of their insurance. Reinsurance. however. "SECTION 27. the benefits under this paragraph shall be paid to his legal heirs. the survivorship pension shall be paid only after the expiration of the said period. Optional Insurance. — The GSIS shall prescribe rules and regulations to facilitate payment of benefit. or (c) a pensioner. "SECTION 29. — The GSIS may reinsure any of its interests or part thereof with any private company or reinsurer whether domestic or foreign: Provided. shall not bar the legal and eligible recipient to his right to demand the payment of benefits. memorial plans. be compulsorily covered with life insurance.

— When authorized by the Board. Deposits and Disbursements. take depositions. — All contributions payable under Section 5 of this Act together with the earnings and accruals thereon shall constitute the GSIS Social Insurance Fund. instrumentalities and other agencies including government-owned and controlled corporations except as may be allowed under this Act. "The funds of the GSIS shall not be used for purposes other than what are provided for under this Act. 1997: Provided. these shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank. safety/security and yield in order to ensure the actuarial solvency of the funds of the GSIS: Provided. For this purpose. its members. redound to the benefit of the GSIS. That the GSIS shall submit an annual report on all investments made to both Houses of Congress of the Philippines. shall. — All revenues collected and all accruals thereto shall be deposited. whichever is smaller: Provided. further. upon application by the GSIS. "SECTION 33. — Appeals from any decision or award of the Board shall be governed by Rules 43 and 45 of the 1997 Rules of Civil Procedure adopted by the Supreme Court on April 8. be punished for contempt. and issue subpoena ad testificandum and subpoena duces tecum to compel the attendance of witnesses and the production of books. "F. The GSIS shall maintain the required reserves to guarantee the fulfillment of its obligations under this Act. 1997 which will take effect on July 1. award. That investments shall satisfy the requirements of liquidity. writ or process after being required to do so. an official or employee of the GSIS shall have the power to administer oath and affirmation. the employees' Compensation Insurance Fund created under P. certify to official acts. That pending cases and those filed prior to July 1. and such other special funds existing or that may be created for special groups or persons rendering services to the government. as amended. papers. — When no appeal is perfected and there is no order to stay by the Board. In addition. improvement and maintenance of schools and hospitals. A maximum expense loading of twelve percent (12%) of the yearly revenues from all sources may be disbursed for administrative and operational expenses except as may be otherwise approved by the President of the Philippines on the basis of actuarial and management studies. to wit: (a) in interest-bearing bonds or securities or other evidence of indebtedness of the Government of the Philippines. (f) In debt instruments and other securities traded in the secondary markets. or official of the GSIS who is a lawyer. no portion of the funds of the GSIS or income thereof shall accrue to the General Fund of the national government and its political subdivisions. Appeals. Funds. and any person who shall fail or refuse to comply with such decision. 1997 shall be governed by the applicable rules of procedure: Provided. Oaths. Witnesses. any decision or award of the Board shall be enforced and executed in the same manner as decisions of the Regional Trial Court. as well as the general public. educational. That in the case of such deposits. administered and disbursed in accordance with the law. "SECTION 32. securities. correspondences. That the appeal shall take precedence over all other cases except criminal cases when the penalty of life imprisonment or death or reclusion perpetua is imposable. policy. The appeal shall not stay the execution of the order or award unless ordered by the Board. giving priority to the low income groups and in short-and-medium-term loans to members such as salary. .D. the Board shall have the power to issue to the city or provincial sheriff or its appointed sheriff such writs of execution as may be necessary for the enforcement of such decision or award. "SECTION 31. That no less than forty percent (40%) of the investable fund of the GSIS Social Insurance Fund shall be invested for these purposes. "SECTION 36. and Production of Records. further. in the determination of the Board. The said Fund shall be used to finance the benefits administered by the GSIS under this Act. That said bank has prior designation as a depository for the purpose by the Monetary Board of the Central Monetary Authority. by the Court of Appeals or by the Supreme Court. — The GSIS shall have original and exclusive jurisdiction to settle any dispute arising under this Act and any other laws administered by the GSIS. — The funds of the GSIS which are not needed to meet the current obligations may be invested under such terms and conditions and rules and regulations as may be prescribed by the Board: Provided. Settlement of Disputes. (e) in real estate property including shares of stocks involving real estate property and investments secured by first mortgages on real estate or other collaterals acceptable to the GSIS: Provided. The cases heard directly by the Board shall be decided within thirty (30) working days from the time they are submitted by the parties for decision. promissory notes or other evidence of indebtedness of educational or medical institutions to finance the construction. (b) In interest-bearing deposits or securities in any domestic bank doing business in the Philippines: Provided. That such investments shall. 626. FUNDS OF THE GSIS "SECTION 34. together with all the documentary and testimonial evidence to the Board within thirty (30) working days from the time the parties have closed their respective evidence and filed their last pleading. The hearing officer shall submit his findings and recommendations. stock purchase plan and other similar loans: Provided. Any case of contumacy shall be dealt with in accordance with the provisions of Section 580 of the Revised Administrative Code. 656. Moreover. the GSIS shall administer the optional insurance fund for the insurance coverage described in Section 26 hereof. as amended. and other records deemed necessary as evidence in connection with any question arising under this Act. Investment of Funds. (d) in bonds. "SECTION 35."SECTION 30. The Board may designate any member of the Board. Execution of Decision. make findings of fact and submit recommendations thereon. the General Insurance Fund created under Act No. emergency. The Board shall decide the case within thirty (30) days from the receipt of the hearing officer's findings and recommendations. (c) in direct housing loans to members and group housing projects secured by first mortgage. further. to act as hearing officer to receive evidence. by the Court of Appeals or by the Supreme Court and the appeal shall be without prejudice to the special civil action of certiorari when proper.

revenues including all accruals thereto. Powers and Functions of the GSIS. contractual or otherwise. shall be exempt from all taxes. these exemptions shall not be affected by subsequent laws to the contrary unless this section is expressly. garnishment. Exemption from Tax. superseded and rendered ineffective and without legal force and effect. — It is hereby declared to be the policy of the State that the actuarial solvency of the funds of the GSIS shall be preserved and maintained at all times and that contribution rates necessary to sustain the benefits under this Act shall be kept as low as possible in order not to burden the members of the GSIS and their employers. liabilities. receipts and disbursements of funds and other financial transactions and operations. (d) to acquire. its assets. mortality. assessments. "SECTION 37. (g) to sue and be sued. That these instruments or assets are listed in bourses of the respective countries where these instruments or assets are issued: Provided. "Moreover. or incurred relative to or in connection with his position or work except when his monetary liability. (b) to adopt or approve the annual and supplemental budget of receipts and expenditures including salaries and allowances of the GSIS personnel. non-speculative equities and other financial instruments or other assets issued in accordance with existing laws of the countries where such financial instruments are issued: Provided. "The funds and/or the properties referred to herein as well as the benefits. Implementing Body. is in favor of the GSIS. in any manner recognized by law. and benefits paid. morbidity. "G. real or personal property in the Philippines or elsewhere necessary to carry out the purposes of this Act. (c) to invest the funds of the GSIS. all laws. make. — The GSIS shall make a periodic actuarial examination and valuation of its funds in accordance with accepted actuarial principles. and the discharge of duties and responsibilities of the GSIS. firm or association or corporation. domestic or foreign. . Taxes imposed on the GSIS tend to impair the actuarial solvency of its funds and increase the contribution rate necessary to sustain the benefits of this Act. (i) In domestic mutual funds including investments related to the operations of mutual funds. levy or other processes issued by the courts. further. — The GSIS shall exercise the following powers and functions: (a) to formulate. re-adjust the benefits. Records and Reports. (e) to conduct continuing actuarial and statistical studies and valuations to determine the financial condition of the GSIS and taking into consideration such studies and valuations and the limitations herein provided. and (j) In foreign mutual funds and in foreign currency deposits or foreign currency-denominated debts. amend and/or rescind such rules and regulations as may be necessary to carry out the provisions and purposes of this Act. notwithstanding and independently of the guaranty of the national government to secure such solvency or liability. quasi-judicial agencies or administrative bodies including Commission on Audit (COA) disallowances and from all financial obligations of the members. interest rates or the allocation or re-allocation of the funds to the contingencies covered. execution. (h) In common and preferred stocks of any solvent corporation or financial institution created or existing under the laws of the Philippines listed in the stock exchange with proven track record or profitability over the last three (3) years and payment of dividends at least once over the same period. utilize or dispose of. adopt. income. separation and retirement among the members and any other information useful for the adjustment of the benefits of the members. ordinances. notwithstanding any laws to the contrary. regulations. fees. The GSIS shall maintain appropriate books of accounts to record its assets. Examination and Valuation of the Funds. its officers and employees. ADMINISTRATION "SECTION 40. debentures. the GSIS. "SECTION 41. "SECTION 38. contributions. "SECTION 39. or in bonds. issuances. These exemptions shall continue unless expressly and specifically revoked and any assessment against the GSIS as of the approval of this Act are hereby considered paid. specifically and categorically revoked or repealed by law and a provision is enacted to substitute or replace the exemption referred to herein as an essential factor to maintain or protect the solvency of the fund. to authorize such capital and operating expenditures and disbursements of the GSIS as may be necessary and proper for the effective management and operation of the GSIS. perform and carry out contracts of every kind and description with any person. expenses. opinions or jurisprudence contrary to or in derogation of this provision are hereby deemed repealed. promissory notes or other evidence of indebtedness of any solvent corporation creat ed or existing under the laws of the Philippines. calculations and valuations of the funds of the GSIS including such data needed in the computation of rates of disability. Accordingly. charges or duties of all kinds. sums or monies corresponding to the benefits under this Act shall be exempt from attachment. premium rates. Legal Process and Lien. directly or indirectly. — The Government Service Insurance System as created under Commonwealth Act No. in accordance with the provisions of this Act. Consequently. 186 shall implement the provisions of this Act. (f) to have the power of succession. That the issuing company has proven track record of profitability over the last three (3) years and payment of dividends at least once over the same period. — The GSIS shall keep and cause to keep such records as may be necessary for the purpose of making actuarial studies. as well as the effective exercise of the powers and functions. (h) to enter into.(g) In loans to. including his pecuniary accountability arising from or caused or occasioned by his exercise or performance of his official functions or duties.

loan repayments. settlement of claims. and (y) to exercise such powers and perform such other acts as may be necessary. fix and impose interest upon unpaid premiums due from employers and employees. 7699. other than through the expiration of the term. (p) to enter into agreement with the Social Security System or any other entity. insurance coverage of government properties. — The corporate powers and functions of the GSIS shall be vested in and exercised by the Board of Trustees composed of the President and General Manager of the GSIS and eight (8) other members to be appointed by the President of the Philippines. (j) to have one or more offices in and outside of the Philippines. (n) to design and adopt an Early Retirement Incentive Plan (ERIP) and/or financial assistance for the purpose of retirement for its own personnel. foreign or domestic. (q) to be able to float proper instrument to liquefy long-term maturity by pooling funds for short-term secondary market. another two (2) shall represent the leading organizations or associations of government employees/retirees. only as an incident in the securitization of housing mortgages of the GSIS and on account of its receivables from any government or private entity. another four (4) from the banking. (t) to approve and adopt guidelines affecting investments. That all positions in the GSIS shall be governed by a compensation and position classification system and qualifications standards approved by the GSIS Board of Trustees based on a comprehensive job analysis and audit of actual duties and responsibilities: Provided. and to conduct its business and exercise its powers throughout and in any part of the Republic of the Philippines and/or in any or all foreign countries.500) for each board meeting actually attended by them. and insurance sectors. increased benefit and loan packages to members. firm or entity. due from all obligors. except the President and General Manager who shall cease as trustee upon his separation. Its Composition. whether public or private. a public report to the President of the Philippines and the Congress of the Philippines regarding its activities in the administration and enforcement of this Act during the preceding year including information and recommendations on broad policies for the development and perfection of the programs of the GSIS. and one (1) recognized member of the legal profession who at the time of appointment is also a member of the GSIS. The Board shall demand payment or settlement of the obligations referred to herein within thirty (30) days from the date the obligation becomes due. (r) to submit annually. primarily confidential or highly technical in nature according to the Civil Service rules and regulations: Provided. enterprise. and the enforcement of the provisions of this Act. (m) to approve appointments in the GSIS except appointments to positions which are policy determining. but not to exceed Ten thousand pesos (P10. That the GSIS shall maintain a branch office in every province where there exists a minimum of fifteen thousand (15. further. which consists of contributions made by both the GSIS and its officials and employees and their earnings. incidental or auxiliary to carry out the provisions of this Act. (x) to design and implement programs that will promote and mobilize savings and provide additional resources for social security expansion and at the same time afford individual members appropriate returns on their savings/investments. (v) to determine. privatization or expansion of subsidiaries.000) a month and reasonable transportation and representation allowances as may be fixed by the Board. useful. civil or administrative or otherwise. boards. (u) any provision of law to the contrary notwithstanding. or until their successors are duly appointed and qualified. The members of the Board shall be entitled to a per diem of Two thousand five hundred pesos (P2. liabilities and/or accountabilities. "SECTION 42. one (1) of whom shall be either the President of the Philippine Public School Teachers Association (PPSTA) or the President of the Philippine Association of School Superintendents (PASS). not later than June 30. Vacancy. finance. That the compensation plan shall be comparable with the prevailing compensation plans in the private sector and shall be subject to the periodic review by the Board no more than once every four (4) years without prejudice to yearly merit reviews or increases based on productivity and profitability. to authorize the payment of extra remuneration to the officials and employees directly involved in the collection and/or remittance of contributions. private or government. to initiate or institute the necessary or proper actions or suits. disposition of acquired assets. The Trustees. The programs shall be so designed as to spur socio-economic take-off and maintain continued growth. The Trustees shall elect from among themselves a Chairman while the President and General Manager of the GSIS shall automatically be the vice-chairman. That the best interest of the GSIS shall be observed thereby. . for the payment of benefits to such officials and employees or their heirs under such terms and conditions as it may prescribe. or bodies of proper jurisdiction within thirty (30) days reckoned from the expiry date of the period fixed in the demand within which to pay or settle the account. (l) to invest. whether natural or juridical. or in connection with the provisions of this Act. (k) to borrow funds from any source. (o) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits extended to members or other persons. (w) to ensure the collection or recovery of all indebtedness.(i) to carry on any other lawful business whatsoever in pursuance of. Tenure and Compensation. investment. tribunals. corporation or partnership for the benefit of members transferring from one system to another subject to the provision of Republic Act No. including unpaid premiums or contributions in favor of the GSIS arising from any cause or source whatsoever. criminal. development of housing projects. otherwise known as the Portability Law. own or otherwise participate in equity in any establishment. states and territories: Provided.000) membership. or to attain the purposes and objectives of this Act. (s) to maintain a provident fund. shall hold office for six (6) years without reappointment. and other monies due to the GSIS at such rates and under such conditions as it may adopt. Provided. and in the event of failure or refusal of the obligor or debtor to comply with the demand. The Board of Trustees. shall be filled for the unexpired term only. commissions. before the courts.

"(f) the provision of any law to the contrary notwithstanding. — The Government Corporate Counsel shall be the legal adviser and consultant of the GSIS. vice- presidents and managers in addition to the usual supervisory and rank and file positions who shall be appointed and removed by the President and General Manager with the approval of the Board. operation and administration of the GSIS. increased benefit and loan packages to members. issues for legal opinions. an audited statement showing the financial condition and progress of the GSIS for the calendar year just ended. "(h) to determine. "The GSIS President and General Manager shall be assisted by one or more executive vice-presidents. "SECTION 44. "(e) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits extended to its members or other persons. regardless of the amount involved. otherwise known as the Attrition Law. as the GSIS may decide or determine from time to time: Provided. Powers and Duties of the President and General Manager. to approve the annual and supplemental budget of receipts and expenditures of the GSIS. "(g) to approve and adopt guidelines affecting investments. "SECTION 46. which shall be exempt from Republic Act No. Qualifications. however. 6758. remove. "(c) upon the recommendation of the President and General Manager. to compromise or release. "H. deputize any personnel of the legal service group to act as special sheriff in the enforcement of writs and processes issued by the court. in accordance with existing Civil Service rules and regulations. 7430. subject to approval by the proper court. "SECTION 47. in accordance with the existing Civil Service rules and regulations. Appointment. and "(i) to do and perform any and all acts necessary. Legal Counsel. — The Insurance Commissioner or his authorized representatives shall make an examination of the financial condition and methods of transacting business of the GSIS at least once every three (3) years and the report of said examination shall be submitted to the Board of Trustees and copies thereof be furnished the Office of the President of the Philippines and the two Houses of the Congress of the Philippines within five (5) days after the close of examination: Provided. "SECTION 48. Powers of the Insurance Commission. preparation and review of contracts/agreements and others. however. disposition of acquired assets. and prescribe their duties and qualifications to the end that only competent persons may be employed. "(d) upon the recommendation of the President and General Manager. Auditor. quasi-judicial agencies or administrative bodies in cases involving the GSIS. Dispensation of Social Insurance Benefits. and the enforcement of the provisions of this Act. and the necessary personnel to assist said representative in the performance of his duties. incentives. any claim or settle liability to the GSIS. and to authorize such operating and capital expenditures and disbursements of the GSIS as may be necessary or proper for the effective management. fix and impose interest upon unpaid or unremitted premiums and/or contributions. He shall be a person with management and investments expertise necessary for the effective performance of his duties and functions under this Act. — (a) The GSIS shall pay the retirement benefits to the employee on his last day of service in the government: Provided. That all requirements are submitted to the GSIS within a reasonable period prior to the effective date of the retirement. — (a) The Chairman of the Commission on Audit shall be the ex officio auditor of the GSIS. shall submit to the Board soon after the close of each calendar year. proper or incidental to the attainment of the purposes and objectives of this Act. he may appoint a representative who shall be the Auditor of the GSIS. guidelines and programs to effectively carry out the purposes of this Act. That for each examination the GSIS shall pay the office of the Insurance Commissioner an amount equal to the actual expenses incurred by the said office in the conduct of the examination. bonuses. subject to the approval of the Board. — The President and General Manager of the GSIS shall be its Chief Executive Officer and shall be appointed by the President of the Philippines. GENERAL PROVISIONS "SECTION 49. shall appoint the personnel of the GSIS. The President and General Manager. settlement of claims. Powers and Functions of the Board of Trustees. including the salaries of the examiners and of the ac tuary of such examination for the actual time spent. review. "SECTION 45. insurance coverage of government properties. execute and administer the policies and resolutions approved by the board and direct and supervise the administration and operations of the GSIS. "(b) The Chairman of the Commission on Audit or his authorized representative. "The GSIS may. in whole or in part. For this purpose. fix. and to establish. privileges and other benefits as may be necessary or proper for the effective management. suspend or otherwise discipline them for cause. senior vice-presidents. development of housing projects. That the present legal services group in the GSIS shall serve as its in-house legal counsel. under such terms and conditions as it may impose for the best interest of the GSIS. to approve the GSIS' organizational and administrative structures and staffing pattern. otherwise known as the Salary Standardization Law and Republic Act No. . — The President and General Manager of the GSIS shall among others. its officers and employees."SECTION 43. whether natural or juridical. operation and administration of the GSIS. "(b) to promulgate such rules and regulations as may be necessary or proper for the effective exercise of the powers and functions as well as the discharge of the duties and responsibilities of the GSIS. and Compensation of the President and General Manager and of Other Personnel. revise and adjust the appropriate compensation package for the officers and employees of the GSIS with reasonable allowances. but the GSIS may assign to the Office of the Government Corporate Counsel (OGCC) cases for legal action or trial. — The Board of Trustees shall have the following powers and functions: "(a) to formulate the policies.

improve profitability on.000.000. the liabilities therein set forth shall be construed as waiver of the State of its immunity from suit. any employer.000. the GSIS shall conduct an annual appraisal of its property or acquired assets to determine its current market value.A. and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government. "SECTION 50. turnover. disbursing officer. — (a) Any person found to have participated directly or indirectly in the commission of fraud.00). all agencies concerned shall process and pay the gratuities of their employees. — The GSIS may call upon any employer for such assistance as may be necessary in the discharge of its duties and functions."(b) The GSIS shall discontinue the processing and adjudication of retirement claims under R. to comply with the provisions of paragraph (w) of Section 41 hereof. either under this Act or. or by imprisonment of not less than six (6) years and one (1) day to twelve (12) years. or misrepresentation in any transaction with the GSIS whether for him or for some other persons. To add value to. under the Revised Penal Code. or through abandonment or negligence. and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government. "(f) Any employee. at the discretion of the court.A. the GSIS may further develop/renovate the same either with its own capital or through a joint venture arrangement with private companies or individuals.000.000.00) without prejudice to any civil or administrative liability which may also arise therefrom. No.000. "(e) Any employee or member who receives or keeps fund or property belonging.000. No. All notices of sale shall be published in newspapers of general circulation. shall suffer the penalties provided in Article 217 of the Revised Penal Code. shall be punished by a fine of not less than Five thousand pesos (P5. shall subject them to imprisonment of not less than six (6) months nor more than one (1) year or a fine of not less than Five thousand pesos (P5. hence. including the chairman and the vice-chairman. or is otherwise guilty of the misappropriation of said fund or property. and the personnel of such offices who are involved in the collection of premium contributions. and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government. refuse or delay the payment. cashier. and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government. "(g) The heads of the offices of the national government. remittance or delivery of such accounts to the GSIS within thirty (30) days from the time that the same shall have been due and demandable shall. and/or enhance the marketability of an acquired asset. For this purpose. "The GSIS may sell its acquired assets in accordance with existing Commission on Audit (COA) rules and regulations for an amount not lower than the current market value of the property. Penalty. its political subdivisions. 1616 except refund of ret irement premium and R. impede or delay the sale and disposition by the GSIS of its acquired assets except on questions of ownership and national or public interest. misappropriate or use said fund or property by expressly consenting thereto. fails to remit the same to the GSIS within thirty (30) days from the date they should have been remitted under Section 6(a) shall be presumed to have misappropriated such contribution or loan amortization and shall suffer the penalties provided in Article 315 of the Revised Penal Code. budget officer or other official or employee who fails to include in the annual budget the amount corresponding to the employer and employee contributions. in whole or in part.00) nor more than Twenty thousand pesos (P20. finance officer. falsification. shall suffer the penalties provided for in Article 172 of the Revised Penal Code. Government Assistance to the GSIS. or any third party.000. or takes or misappropriates or uses the same to any purpose other than that authorized by this Act. Development and disposition of Acquired Assets. or who fails or refuses or delays by more than thirty (30) days from the time such amount becomes due and demandable. . "(c) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations adopted by the GSIS shall be punished by a fine of not less than Five thousand pesos (P5. upon conviction by final judgment. loan amortization and other accounts due the GSIS who shall fail. collusion. "(b) Whoever shall obtain or receive any money or check invoking any provision of this Act or any agreement thereunder. — The GSIS shall have the right to develop and dispose of its acquired assets obtained in the ordinary course of its business. PENAL PROVISIONS "SECTION 52. branches. "Criminal actions arising from violations of the provisions of this Act may be commenced by the GSIS or by the aggrieved member. without being entitled thereto with the intent to defraud any member.00).00). "(d) The treasurer.00) but not more than Six thousand pesos (P6. or both. and a fine of not less than Three thousand pesos (P3. commission. who after deducting the monthly contribution or loan amortization from a member's compensation. "L. upon conviction by final judgment. agencies and instrumentalities.00) or by imprisonment of not less than six (6) years and one (1) day to twelve (12) years. in appropriate cases.000.00) nor more than Ten thousand pesos (P10. "(h) The officers and/or personnel referred to in paragraph (g) of this section shall be liable not only criminally but also civilly to the GSIS or to the employee or member concerned in the form of damages. tribunal or office shall bar. the above-mentioned officials and/or personnel may not invoke the defense of non- suability of the State. including government-owned or controlled corporations and government financial institutions. suffer the penalties of imprisonment of not less than one (1) year nor more than five (5) years and a fine of not less than Ten thousand pesos (P10.00) nor more than Twenty thousand pesos (P20. or both.00) nor more than Twenty thousand pesos (P20. suffer the penalties of imprisonment from six (6) months and one (1) day to six (6) years.000. at the discretion of the court. payable or deliverable to the GSIS and appropriates the same. "No injunction or restraining order issued by any court. "(i) For the charges or complaints referred to in paragraph (g) of this Section. "SECTION 51. including surcharges and interests. Instead. or permits another person to take. or to deduct the monthly contributions of the employee shall. The Board shall adopt the proper rules and procedures for the implementation of this provision. "(j) Failure of the Members of the GSIS Board. the GSIS. 910.

SECTION 4. — Whenever other laws provide similar benefits for the same contingencies covered by this Act. . 1997. That subsequent to the effectivity of this Act. "SECTION 55. — All laws and any other law or parts of law specifically inconsistent herewith are hereby repealed or modified accordingly: Provided. "SECTION 56. a new employee or an employee who has previously retired or separated and is reemployed in the service shall be covered by the provisions of this Act. the GSIS shall pay only the difference. Separability Clause. 1997."SECTION 53. July 28. Jurisdiction. Philippine Daily Inquirer. Implementing Rules and Regulations. Exclusiveness of Benefits. Effectivity. rules and regulations vested upon or acquired by an employee who is already in the service as of the effectivity of this Act shall remain in force and effect: Provided. further. shall remain in force and effect. Functions and Activities. Presidential Decrees and Letters of Instructions. 93 No. the other provisions. and the Manila Bulletin on June 9. — This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two (2) newspapers of general circulation. 29 page 4360 on July 21. "SECTION 54. Privileges. 1997 Published in Malaya. — Should any provision of this Act or any part thereof be declared invalid. the member who qualifies to the benefits shall have the option to choose which benefits will be paid to him. 1997. — The implementing rules and regulations to carry out the provisions of this Act shall be adopted and promulgated by the GSIS not later than ninety (90) days after the approval of this Act. — The amount necessary to carry out the provisions of this Act shall be included in the respective budgets of the agencies in the national government obligation program of the year following its enactment into law and thereafter. Non-impairment of Benefits. That the rights under existing laws. However. Rights. Appropriations. — Nothing in this Act shall be construed to repeal. The Philippine Star. if the benefits provided by the law chosen are less than the benefits provided under this Act. Published in the Official Gazette. so far as they are separable from the invalid ones. Vol." SECTION 2. amend or limit any provision of existing laws. SECTION 3. Approved: May 30. Powers. Repealing Clause. not otherwise specifically inconsistent with the provisions of this Act.

"SECTION 56. Philippine Daily Inquirer." SECTION 2. Appropriations. and the Manila Bulletin on June 9. — Should any provision of this Act or any part thereof be declared invalid. a new employee or an employee who has previously retired or separated and is reemployed in the service shall be covered by the provisions of this Act. further. The Philippine Star. Repealing Clause. Published in the Official Gazette. — This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two (2) newspapers of general circulation. July 28. Approved: May 30. That the rights under existing laws. 29 page 4360 on July 21. . rules and regulations vested upon or acquired by an employee who is already in the service as of the effectivity of this Act shall remain in force and effect: Provided. 93 No. SECTION 3. — The amount necessary to carry out the provisions of this Act shall be included in the respective budgets of the agencies in the national government obligation program of the year following its enactment into law and thereafter. SECTION 4. Effectivity. 1997. 1997 Published in Malaya. so far as they are separable from the invalid ones. 1997. That subsequent to the effectivity of this Act. shall remain in force and effect. Separability Clause. Vol. the other provisions. 1997. — All laws and any other law or parts of law specifically inconsistent herewith are hereby repealed or modified accordingly: Provided.