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.

“The OSCA shall have the following functions: “(a) To plan. “(2) the Secretary of the DOH or an authorized representative. business entity.” Sec. or the municipal circuit trial court. business entity. Section 11 of the same Act. and “(g) To assist the senior citizens in filing complaints or charges against any individual. and after due notice and hearing. any individual. “(f) To report to the mayor. establishments. “The Office of the Mayor shall exercise supervision over the OSCA relative to their plans. “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. activities and programs for senior citizens.” Sec. 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. is hereby further amended to read as follows: “SEC. Representatives of NGOs shall serve a period of tree (3) years.00) but not exceeding Two hundred thousand pesos (Php200. permit to operate.00). organization or any similar entity.000. – 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.000. in coordination with the Social Welfare and Development Office. establishments. – 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. 10. . “(3) the Secretary of the DTI or an authorized representative. as amended. The OSCA shall work together and establish linkages with accredited NGOs Pos and the barangays in their respective areas. implement and monitor yearly work programs in pursuance of the objectives of this Act. and (4) representatives from five (5) NGOs for senior citizens which are duly accredited by the DSWD and have service primarily for senior citizens. or such other officer charged with the management of the business affairs shall be liable therefor.00).000.“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. “Upon filing of an appropriate complaint. 8. “(b) To draw up a list of available and required services which can be provided by the senior citizens. institutions or agency found violating any provision of this Act. the proper authorities may also cause the cancellation or revocation of the business permit. “If the offender is a corporation. 7. general manager. Section 10 of the same Act. establishment or business entity that fails to abide by the provisions of this Act. 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 (Php50.000. and “(c) Members: “(1) the Secretary of the DOJ or an authorized representative. “If the offender is an alien or a foreigner. which shall be valid anywhere in the country. “(c) To maintain and regularly update on a quarterly basis the list of senior citizens and to issue national individual identification cards. 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 (Php100.000. franchise and other similar privileges granted to any person. Monitoring and Coordinating Mechanism. or agency refusing to comply with the privileges under this Act before the Department of Justice (DOJ). as amended. “(d) To serve as a general information and liason center for senior citizens.000. 11.00) but not exceeding One hundred thousand pesos (Php100. the regional or the municipal trial court. the municipal trial court in cities. managing partner. is hereby further amended to read as follows: “SEC.00) but not more than One hundred thousand pesos (Php100.00). institution. partnership. he/she shall be deported immediately after service of sentence. “(b) For any subsequent violation. “(e) To monitor compliance of the provisions of this Act particularly the grant of special discounts and privileges to senior citizens. the officials thereof directly involved such as the president. free of charge. the Provincial Prosecutor’s Office. “(b) Vice Chairperson – the Secretary of the Department of the Interior and Local Government (DILG) or an authorized representative. Penalties.

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

” Section 5. 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. through its foreign posts. or has contacted or is supported by any union or workers’ organization. joined or supported. the POEA Governing Board. or procuring workers and includes referring. or the bilateral agreement/arrangement which protect the rights of migrant workers. testimony. or the convention/declaration/resolution. the Department of Foreign Affairs. “The State shall likewise allow the deployment of overseas Filipino workers to companies and contractors with international operations: Provided.“(c) It has concluded a bilateral agreement or arrangement with the government on the protection of the rights of overseas Filipino Workers: Provided. whether a non-licensee. It shall likewise include the following acts. at any time. . transporting. or work with a different employer whether registered or not with the POEA. offers or promises for a fee employment abroad to two or more persons shall be deemed so engaged. utilizing. is hereby amended to read as follows: “SEC. may. “In the absence of a clear showing that any of the aforementioned guarantees exists in the country of destination of the migrant workers. remittance of foreign exchange earnings. or to make a worker pay or acknowledge any amount greater than that actually received by him as a loan or advance. work different from the actual overseas work. placement vacancies. shall issue a certification to the POEA. in pursuit of the national interest or when public welfare so requires. 5. as amended. 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. is hereby amended to read as follows: “SEC. – For purposes of this Act. “(l) Failure to actually deploy a contracted worker without valid reason as determined by the Department of Labor and Employment. terminate or impose a ban on the deployment of migrant workers. other than those authorized under the Labor Code and its implementing rules and regulations. when undertaken by non-licensee or non-holder of authority contemplated under Article 13(f) of Presidential Decree No. Definition. “For this purpose. Section 5 of Republic Act No. “(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. contracting. That any such non-licensee or non-holder who. after consultation with the Department of Foreign Affairs. “(i) To substitute or alter to the prejudice of the worker. “(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. – Notwithstanding the provisions of Section 4 hereof. information or document or commit any act of misrepresentation for the purpose of securing a license or authority under the Labor Code. promising or advertising for employment abroad. whether committed by any person. or for the purpose of documenting hired workers with the POEA. 8042.” Section 4. Further. illegal recruitment shall mean any act of canvassing. as amended. 6. Termination or Ban on Deployment. “(c) To give any false notice. as embodied in the employment contracts prescribed by the POEA and in accordance with internationally-accepted standards. “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. contract services. which include the act of reprocessing workers through a job order that pertains to nonexistent work. conditions and requirements. departures and such other matters or information as may be required by the Secretary of Labor and Employment. “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. “(b) To furnish or publish any false notice or information or document in relation to recruitment or employment. no permit for deployment shall be issued by the Philippine Overseas Employment Administration (POEA). or for any other reasons. That the receiving country is taking positive. 442. whether for profit or not. “(k) To withhold or deny travel documents from applicant workers before departure for monetary or financial considerations. That they are compliant with standards. enlisting. 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. otherwise known as the Labor Code of the Philippines: Provided. “(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. 8042. specifying therein the pertinent provisions of the receiving country’s labor/social law. “(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. non-holder. Section 6 of Republic Act No. hiring. (b) and (c) hereof. as amended. separation from jobs. “(h) To fail to submit reports on the status of employment. in any manner. concrete measures to protect the rights of migrant workers in furtherance of any of the guarantees under subparagraphs (a).

000. or any aggrieved person may initiate the corresponding criminal action with the appropriate office. 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. institutions. “In the filing of cases for illegal recruitment or any of the prohibited acts under this section. however. the affidavits and testimonies of operatives or personnel from the Department of Labor and Employment. “(6) For a suspended recruitment/manning agency to engage in any kind of recruitment activity including the processing of pending workers’ applications.00) nor more than Two million pesos (P2. “(5) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to undergo training. as amended. in cases where the deployment does not actually take place without the worker’s fault.00) nor more than Five million pesos (P5. as provided under the compulsory worker’s insurance coverage.000. which will be used for payment of legal and allowable placement fees and make the migrant worker issue. “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. 8042. “The filing of an offense punishable under this Act shall be without prejudice to the filing of cases punishable under other existing laws. he or she shall. in certain cases.000. the Secretary of Labor and Employment. – “(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. 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.000. “(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. For this purpose.” Section 6. . the POEA Administrator or their duly authorized representatives. the public prosecutors of the Department of Justice shall collaborate with the anti-illegal recruitment branch of the POEA and. allow the POEA lawyers to take the lead in the prosecution.000. premium or other insurance related charges. “(2) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to avail of a loan only from specifically designated institutions. “(4) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to undergo health examinations only from specifically designated medical clinics.“(m) Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment. is hereby amended to read as follows: “SEC. either personally or through a guarantor or accommodation party. postdated checks in relation to the said loan.000. instruction or schooling of any kind only from specifically designated institutions. and “(n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.00). entities or persons. It is deemed committed in large scale if committed against three (3) or more persons individually or as a group. “(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. be deported without further proceedings. POEA and other law enforcement agencies who witnessed the acts constituting the offense shall be sufficient to prosecute the accused. except in the case of a seafarer whose medical examination cost is shouldered by the principal/shipowner. “In addition to the acts enumerated above.000. “(b) The penalty of life imprisonment and a fine of not less than Two million pesos (P2. In case of juridical persons. “Provided. in addition to the penalties herein prescribed. “If the offender is an alien. 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. 7. “In the prosecution of offenses punishable under this section. rules or regulations. “The persons criminally liable for the above offenses are the principals. control. except fpr recommendatory trainings mandated by principals/shipowners where the latter shoulder the cost of such trainings.000. 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).000. entities or persons. Section 7 of Republic Act No.00) shall be imposed if illegal recruitment constitutes economic sabotage as defined therein. seminar.00) nor more than One million pesos (P1. accomplices and accessories. Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage. Penalties.000.000. the officers having ownership. management or direction of their business who are responsible for the commission of the offense and the responsible employees/agents thereof shall be liable. entities or persons.

formulate a program that would . Consistent with this mandate. The performance bond to de filed by the recruitment/placement agency.000. as amended is hereby amended to read as follows: “SEC. or caused to be.000. serve as a promotion house for their local employment. 16. 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. Free Legal Assistance. within ninety (90) calendar days after the filing of the complaint. without further proceedings. is hereby amended to read as follows: “SEC. it shall be automatically disqualified. whichever is less. 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. “The liability of the principal/employer and the recruitment/placement agency for any and all claims under this section shall be joint and several. -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.000. amendment or modification made locally or in a foreign country of the said contract. the Integrated Bar of the Philippines. This provision shall be incorporated in the contract for overseas employment and shall be a condition precedent for its approval. the Overseas Workers Welfare Administration (OWWA). “In case of termination of overseas employment without just.” Section 8. from participating in the Philippine Overseas Employment Program and from recruiting and hiring Filipino workers until and unless it fully satisfies the judgement award. “Provided. 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. Section 17 of Republic Act No. shall themselves be jointly and solidarily liable with the corporation or partnership for the aforesaid claims and damages. training school or medical clinic. Establishment of National Reintegration Center for Overseas Filipino Workers. “(b) Suspension for not more than ninety (90) days. conviction shall cause and carry the automatic revocation of the license or registration of the recruitment/m anning agency. – 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. to the underage migrant worker or to his parents or guardian. – Notwithstanding any provision of law to the contrary. withheld until the said official complies therewith. 8042. and other non-governmental organizations and volunteer groups. 8042. “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. or any unauthorized deductions from the migrant worker’s salary. If the recruitment/placement agency is a juridical being. “Such liabilities shall continue during the entire period or duration of the employment contract and shall not be affected by any substitution. 10. as amended. “In case of a final and executory judgement against a foreign employer/principal. “The Department of Labor and Employment. shall be answerable for all money claims or damages that may be awarded to the workers. 8042. 17.00) but not more than One million pesos (Php 1. Section 16 of Republic Act No. 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. or “(c) Dismissal from the service with disqualification to hold any appointive public office for five (5) years.” Section 9. however. the NLRC shall endeavor to update and keep abreast with the developments in the global services industry. 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. and tap their skills and potentials for national development. is hereby amended to read as follows: “SEC. moral. Money Claims. without need of notice. lending institutions. valid or authorized cause as defined by law or contract. as amended.” Section 10. exemplary and other forms of damage. as amended. the corporate officers and directors and partners as the case may be. is hereby amended to read as follows: “SEC. plus his salaries for the unexpired portion of his employment contract or for three (3) months for every year of the unexpired term. Mandatory Repatriation of Underage Migrant Workers. and the Philippine Overseas Employment Administration (POEA) shall. within ninety (90) days from the effectivity of this Act. The refund shall be independent of and in addition to the indemnification for the damages sustained by the underage migrant worker. 8042. Section 10 of Republic Act No. 13.00). The refund shall be paid within thirty (30) days from the date of the mandatory repatriation as provided for in this Act. Preferential Entitlement Under the Witness Protection Program.“In every case. 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. “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. – Upon discovery or being informed of the presence of migrant workers whose ages fall below the minimum age requirement for overseas deployment. the Labor Arbiters of the National Labor Relations Commission (NLRC) shall have the original and exclusive jurisdiction to hear and decide. Such mechanism shall include coordination and cooperation with the Department of Justice. as provided by law. The first paragraph of Section 13 of Republic Act No.” Section 7.

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

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

00) from the Welfare Fund for Overseas Workers established under Letter of Instructions No. in the amount of one hundred million pesos (P100. further.” Section 19. “(d) Local Government Units. and form part of.000. as amended. 8042.1) Provide a venue for the POEA.000. 9184 or the Government Procurement Act. 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. further. 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. is hereby amended to read as follows: . Legal Assistance Fund.5) Within a period of three (3) years from the effectively of this Act.000. shall not revert to the General Fund. including the DOH-operated clinics. Uses of the Legal Assistance Fund. 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.00) : Provided. “Twenty million pesos (20. the status of the Legal Assistance Fund.000. the Integrated Bar of the Philippines. hereinafter referred to as the Legal Assistance Fund. “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.6) All DOH-accredited medical clinics. – In the fight against illegal recruitment. 25. and non-government organizations advocating the rights and welfare of overseas Filipino workers.00) from the Contingency Fund of the President Social Fund. Section 25 of Republic Act No. when circumstances warrant urgent action. 8042. 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. That at the end of every year. be turned over to. – 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. “Thirty million pesos (30.000. the Department of Foreign Affairs shall include in its report to Congress. 26. Such desk or kiosk shall.00) per year: Provided. shall not be allowed. 537 as amended by Presidential Decree Nos. ” (c.000.000. is hereby amended to read as follows: “( c ) To tap the assistance of reputable law firms. 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. “(d. ” 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. – There is herby established a legal assistance fund for migrant workers. in partnership with the POEA. as be linked to the database of all concerned government agencies. is hereby amended to read as follows: “SEC.” Section 18. 8042. other concerned government agencies. the local government units (LGUs). as amended. “In case an overseas Filipino worker is found to be not medically fit upon his/her immediate arrival in the country of destination.000. the following shall be undertaken by the LGUs: “(d. shall take a proactive stance by being primarily responsible for the dissemination of information to their constituents on all aspects of overseas employment.” Section 17. is hereby amended to read as follows: “SEC. 1694 and 1809.overseas Filipino worker to go first to an office for registration and then farmed out to a medical clinic located elsewhere. 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.00) to be constituted from the following sources. the Fund created under this Act.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. criteria and procedures promulgated in accordance with Section 24 ( a ) herof. Subparagraph ( c ) of Section of Republic Act No. Section 26 of Republic Act No. 8042. other concerned government agencies and non-government organizations to conduct PEOS to their constituents on a regular basis. including the amount appropriated in the GAA.00) from the Contingency Fund of the President.000. Section 32 of Republic Act No. That the fund shall be treated as a special fund in the National Treasury and its balance. as amended. particularly the POEA for its updated lists of overseas job orders and licensed recruitment agencies in good standing. That the hiring of foreign legal counsels. “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. bail bonds to secure the temporary releases and other litigation expenses: Provided. including the expenditures from the said fund duly audited by the Commission on Audit (COA): Provided. shall be exempt from the coverage of Republic Act No. and “An amount appropriated in the annual General Appropriations Act (GAA) which shall not be less than Thirty million pesos (30. as amended. “Fifty million pesos (50. rules or regulations.000. pursuant to POEA rules and regulations.000. as provided for under Section 33 of this Act. To carry out this task.000.” Section 20. which shall form part of the Fund.

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.” Section 22. – Notwithstanding any provision of law to the contrary. upon showing of the same proof of entitlement by the overseas Filipino worker’s beneficiary or recipient. 8042. is hereby amended to read as follows: SEC. “The additional members shall have a term of three (3) years and shall be eligible for reappointment for another three (3) years. “The remittances of all overseas Filipino workers. In case of vacancy. the representatives to the POEA/OWWA governing boards. The following disabilities shall be deemed permanent: total. is hereby amended to read as follows: “SEC. permanent complete paralysis of two (2) limbs. and “(d) A final list of all the nominees selected by the OWWA/POEA governing boards. 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 process shall be open. “(b) Only non-government organizations that protect and promote the rights and welfare of overseas Filipino workers. Section 35 of Republic Act No. including the transport of his or her personal belongings. at least three (3) times. 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. Exemption from Travel Tax Documentary Stamp and Airport Fee. Report to Congress. democratic and transparent.” Section 21. Compulsory Insurance Coverage for Agency-Hired Workers. but not limited to. which shall consist of three(3) names for each sector to be represented. “(d) Repatriation cost of the worker when his/her employment is terminated without any valid cause. In case of death. 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. 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. sea-based and land-based sectors respectively. POEA. with at least Seven thousand five hundredUnited Statesdollars (US$7. for purposes of selection. – In addition to the performance bond to be filed by the recruitment/manning agency under Section 10. 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. as amended. complete loss of sight of both eyes. duly registered with the appropriate Philippine government agency and in good standing as such. appoint a replacement who shall serve the unexpired term of his or her predecessor. “(c) Permanent total disablement. as amended. the President shall in accordance with the provisions of this Act. able to read and write. A new Section 37-A. of Replublic Act No. shall be exempt from the payment of documentary stamp tax. as amended. at the minimum: “(a) Accidental death. The insurance provider shall also render any assistance necessary in the transport including. 37-A. . “Within thirty (30) days from the submission of the list. is hereby added to read as follows: “SEC. have three (3) members each who shall come from the women. “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. 8042. to be selected and nominated openly by the general membership of the sector being represented. 8042.00) disability benefit payable to the migrant worker. the President shall select and appoint from the list. OWWA and other Boards. in addition to their present composition. “Any executive issuances or orders issued that contravene the provisions of this section shall have no force and effect. 32. with at least Fifteen thousandUnited Statesdollars (US$10. Additional Memberships. – All laws to the contrary notwithstanding. mortuary or direct disposition facility to prepare the body for transport. The first and last paragraph of Section 33 of Republic Act No. obtaining legal clearances. within ninety (90) days before the boards shall be convened. procuring consular services. 35. shall be submitted to the President and published in a newspaper of general circulation.000. loss of two(2) limbs at or above the ankles or wrists. Such insurance policy shall be effective for the duration of the migrant worker’s employment and shall cover. completing all documentation.500. providing necessary casket or air transport container. locating a local licensed funeral home. “(c) The nominee must be at least twenty-five (25) years of age. the insurance provider shall arrange and pay for the repatriation or return of the worker’s remains. the respective Boards of the POEA and the OWWA shall. but shall not limited to. 33. brain injury resulting to incurable imbecility or insanity.“SEC. – In order to inform the Philippine Congress on the implementation of the policy enunciated in Section 4 hereof. as well as transporting the remains including retrieval from site of death and delivery to the receiving funeral home. the migrant workers shall be exempt from the payment of travel tax and airport-fee upon proper showing of proof entitlement by the POEA.00) survivor’s benefit payable to the migrant worker’s beneficiaries. The report shall include. Section 23. 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. ” The selection and nomination of the additional members from the women.

“Any claim arising from accidental death. employees or agents with relatives. which are in existence and operational for at least Five hundred million pesos (P500. and with a current year certificate of authority shall be qualified to provide for the worker’s insurance coverage. “Any person having a claim upon the policy issued pursuant to subparagraphs (a). shall be sufficient evidence to substantiate the claim: “(1) Death Certificate – In case of natural or accidental death. (c). the recruitment/manning agency shall immediately pay the migrant worker’s claim in full. In the case of seafarers who are insured under policies issued by foreign insurance companies. officers. After receiving the insurance payment. 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. When a migrant worker is hospitalized and has been confined for at least seven (7) consecutive days. partners.00) to be determined by the IC. he shall be entitled to a compassionate visit by one (1) family member or a requested individual. When an adequate medical facility is not available proximate to the migrant worker. 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. within the fourth civil degree of consanguinity or affinity. It is. the insurance policy shall also include: “(g) Compassionate visit. “Only reputable private insurance companies duly registered with the Insurance Commission (IC). (b). an order shall be released mandating the respondent recruitment/manning agency to pay the amount adjudged or agreed upon within thirty (30) days. “(2) Police or Accident Report – In case of accidental death. 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. in his absence.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. That the minimum coverage under sub-paragraphs (a) to (i) are included therein.000. as determined by the insurance company’s physician and/or a consulting physician. That the following documents. 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. 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. 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. Insurance companies who have directors. “(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. “(2) The recruitment/manning agency shall then immediately file a notice of claim with its insurance provider for the amount of liability insured. it is liable to pay the balance thereof. the names of the parties and the nature of the cause of action of the migrant worker. If the period to receive medical clearance to travel exceeds fourteen (14) days from the date of discharge from the hospital.“(e) Subsistence allowance benefit. the POEA shall accept certificates or other proofs of cover from recruitment/manning agencies: Provided. the embassy or consular official shall issue a certification which states the name of the case. 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. may be arranged. an alternative appropriate mode of transportation. with at least One hundredUnited Statesdollars (US$100. such as air ambulance. . Medical and non-medical escorts may be provided when necessary. attaching therewith a copy of the decision or compromise agreement. “In addition to the above coverage. (d) and (e) of this section shall present to the insurance company concerned a written notice of claim together with pertinent supporting documents. “For subsistence allowance benefit under subparagraph (e). evacuation under appropriate medical supervision by the mode of transport necessary shall be undertaken by the insurance provider. When medically necessary as determined by the attending physician. 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. “For the payment of money claims under subparagraph (f). After procuring such insurance policy. the responsibility of the family member or requested individual to meet all visa and travel document requirements. 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. and “(i) Medical repatriation. duly authenticated by the Philippine foreign posts. whichever is lower. taking into account that in case the amount of insurance coverage is insufficient to satisfy the amount adjudged or agreed upon.000. or the amount of liability insured. the concerned labor attaché or. “(h) Medical evacuation. and “(3) Medical Certificate – In case of permanent disablement. however. “For repatriation under subparagraph (d) hereof. “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. “(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. the insurance company shall make payment to the recruitment/manning agency the amount adjudged or agreed upon.

“(b) To ensure transparency and require the submission of reports from concerned government agencies on the conduct of programs. as well as all programs. as amended. shall be prohibited to appear before the NLRC in money claims cases under this section. the Department of Labor and Employment and the IC shall jointly make an assessment of the performance of all insurance providers. Section 24. Such penalty is without prejudice to any other liability which such persons may have incurred under existing laws. name hires or direct hires. 37-B. respectively. “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. functions and responsibilities as may be necessary to attain its objectives. . “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. “(d) To submit periodic reports to the President of the Philippines and Congress on the implementation of the provisions of Republic Act No. – 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. “(e) To determine weaknesses in the law and recommend the necessary remedial legislation or executive measures. in consultation with the recruitment/manning agencies and legitimate non-government organizations advocating the rights and welfare of overseas Filipino workers. the recruitment/ manning agency shall pay the amount adjudged or agreed upon within the remaining days of the thirty (30)-day period. A new Section 37-B of Republic Act No. 8042. including conciliation and mediation services. unless the latter is impleaded. shall formulate the necessary implementing rules and regulations.“(4) In case the insurance company fails to make payment within ten (10) days from the filing of the claim. reports. 8042. officers and employees shall be perpetually disqualified from engaging in the business of recruitment of overseas workers. as provided in the first subparagraph hereof. based upon the report of the NLRC and the POEA on their respective interactions and experiences with the insurance companies. as amended. To protect the rights of these workers. 8042. including compensation of all personnel. “(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. and technical advice. “For migrant workers recruited by the POEA on a government-to-government arrangement. as amended. NLRC and the POEA. the said licensed recruitment/manning agency shall lose its license and all its directors. The Department of Labor and Employment shall include such assessment in its year-end report to Congress. “The Oversight Committee shall adopt its internal rules of procedure. as amended. rules or regulations. “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. “At the end of every year. 8042. the Department of Labor and Employment. whether at home or abroad. “For purposes of this section. 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. 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. 8042. “(5) If the worker’s claim was not settled within the aforesaid thirty (30)-day period. “(c) To approve the budget for the programs of the Oversight Committee and all disbursements therefrom. conduct hearings and receive testimonies. partners. IC. the POEA shall establish a foreign employers guarantee fund which shall be answerable to the workers’ monetary claims arising from breach of contractual obligations. “(7) Lawyers for the insurance companies. without prejudice to an earlier review if necessary and warranted for the purpose of modifying. is hereby added to read as follows: “Sec. proprietors. 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. the POEA shall provide them adequate legal assistance. amending and/or repealing these subject provisions. the recruitment/manning agency’s performance bond or escrow deposit shall be forthwith garnished to satisfy the migrant worker’s claim. or require any person by subpoena duces tecum documents or other materials as it may require consistent with the provisions of Republic Act No. projects and activities related to overseas 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. invite or summon by subpoena ad testificandum any public official or private citizen to testify before it. For migrant workers classified as rehires. Congressional Oversight Committee. as amended. and “(f) To perform such other duties. projects and policies relating to the implementation of Republic Act No.

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

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

4. "SEC. "SEC." SEC. No individual. Upon filing of an appropriate complaint. Republic Act No. 7277 is hereby amended to read as the "Magna Carta for Persons with Disability". Section 46 of Republic Act No.For purposes of this Chapter.00) or imprisonment of not less than six months but not more than two years. . and (b) Individuals or nongovernmental institutions establishing homes. The Department of Social Welfare and Development. (c) If the violator is a corporation organization or any similar entity.00) or imprisonment for not less than two years but not more than six years. chapters 1 and 2 and Sections 39. and (2) For any subsequent violation. 7277 is hereby amended by inserting a new title. .00) but not exceeding One hundred thousand pesos (P100. organizations. group or community is hereby prohibited from vilifying any person with disability which could result into loss of self-esteem of the latter. Deliverance from Vilification "SEC. and after notice and hearing the proper authorities may also cause the cancellation or revocation of the business permit. 40. (d) If the violator is an alien or a foreigner. organizations. and all references on the said law to "disabled persons" shall likewise be amended to read as "persons with disability". vilification shall be defined as: (a) the utterance of slanderous and abusive statements against a person with disability. 7277 is hereby amended to read as follows: "SEC. 3." Sec. . 41. and (ii) Priority in the building and/or maintenance of provincial or municipal roads leading to the aforesaid home residential community or retirement village. individual taxpayers caring for them shall be accorded the privileges granted by the code Insofar as having dependents under the same section are concerned. and the Bureau of Internal Revenue. Any individual.00) but not exceeding Two hundred thousand pesos (P200. but not more than Fifty thousand pesos (P50. the National Council for the Welfare of Disabled Persons. 46. at the discretion of the court.000. as amended and as such. Non-verbal Ridicule and VilificationAgainst Persons with Disability "CHAPTER 1. Penal Clause. or severe ridicule of persons with disability.000. Deliverance from Public Ridicule. 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. (a) persons with disability shall be treated as dependents under Section 35(A) of the National Internal Revenue Code. Vilification. or in action due to their impairment/s. 41 and 42 to read as follows: "Title Four Prohibitions on Verbal. SEC. "CHAPTER 2.000. 39. 42. 40. or both at the discretion of the court. he shall be deported immediately after service of sentence without further deportation proceedings. or both. or both at the discretion of the court." SEC. a fine of not less than One hundred thousand pesos (P100. 5. 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. in consultation with the concerned Senate and House committees and other agencies." "SEC. franchise and other similar privileges granted to any business entity that fails to abide by the provisions of this Act. permit to operate.000. (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. the officials thereof directly involved shall be liable therefore.000. a fine of not less than Fifty thousand pesos (P50. 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. Public Ridicule . The title of Republic Act No. and/or (b) An activity in public which incites hatred towards serious contempt for. - (a) Any person who violates any provision of this Act shall suffer the following penalties: (1) For the first violation.00). 2.For purposes of this chapter. establishments shall formulate an agencies. chapter and section after Section 38 to be denominated as Title 4. establishments shall formulate an implementing rules and regulations pertinent to the provisions of this Act within six months after the effectivity of this Act.00).000.

2007. This Act shall take effect fifteen (15) days after its publication in any two newspapers of general circulation. 2580 and House Bill No. For purposes. Definition of Term. 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. 6. respectively. 2007 REPUBLIC ACT NO. Approved: April 30. . Notwithstanding any law. rules and regulations to the contrary.For purposes of this Act. SECTION 2. delivery shall include childbirth or any miscarriage. Short Title.SEC. SECTION 3. 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. . 2007 and February 7. 1214 was finally passed by the Senate and the House of Representatives on February 8. . 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. of this Act. This Act shall be known as the "Paternity Leave Act of 1996". This Act which is a consolidation of Senate Bill No. Approved. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECTION 1. 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.

respectively. old age and death. one of whom shall be a woman.A. No. two and three years for every two members. the Chairman of the Civil Service Commission and the Secretary of Health shall. R. 24. and Sec. general manager. 1. shall also receive a per diem of one thousand five hundred pesos. issue such rules and regulations necessary for the proper implementation of the provisions hereof. (As amended by Sec.A. including. P. No. and R. Members of the Commission who hear cases pending before the Commission. and. 1. 1. the general public. or any contract agreement or policy between employer and employee. 3. 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. association or any other entity. No. 1. 24. Nondiminution Clause.A. SECTION 5. managing director or partner directly responsible therefor. S. partnership. UNEMPLOYMENT. 1161 June 18. 1202. 24. (As amended by Sec.000) or imprisonment of not less than thirty (30)days nor more than six (6) months. SECTION 6. Philippines is hereby created. No. Sec.D. . S- 1977. decrees. 3. 735. — (a) To carry out the purposes of this Act. (As amended by Sec. with a view to promoting their well-being in the spirit of social justice. one. chief executive officer. Declaration of Policy. 2658.1975) . If the violation is committed by a corporation. P. S-1975. corporation.D. 1. trust. 1792.Nothing in this Act shall be construed to reduce any existing benefits of any form granted under existing laws. S-1986. to be appointed by the President of the Philippines. The administrator shall be a person who has had previous experience in technical and administrative fields related to the purposes of this Act. the Social Security System with principal place of business in Metro Manila. S-1972. 1. . Sec. Republic Act No. Effectivity.A.A. 1792 and Sec. executive orders. S-1973. or parts thereof which are inconsistent with this Act are hereby repealed or modified accordingly. 4857. vice-president. No.O. 1954 AN ACT TO CREATE A SOCIAL SECURITY SYSTEM PROVIDING SICKNESS. E. R. The Secretary of Labor and Employment. Sec. P. Sec. shall be filled for the unexpired term only. the management group. ordinances. S-1972) A. trust or firm. 2. P. three. 735. That no compensation shall be paid for more than eight meetings a month.D. — This Act shall be known as the "Social Security Law" (As amended by Sec. R. Sec. except through the expiration of the term. P. R. S-1972). regulations. Sec. S-1972. Any person. All vacancies. 102. sickness. payable from the funds of the SSS." Section 2. 2.This Act shall take effect (15) days from its publication in the Official Gazette or in at least two (2) newspapers of national circulation. 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. the SSS Administrator and seven appointive members: three of whom shall represent the labor group. firm. 1. Repealing Clause. . partnership. RETIREMENT. No. P. R.All laws. develop. rules. DISABILITY AND DEATH BENEFITS FOR EMPLOYEES SECTION 1. No. within thirty (30) days from the effectivity of this Act.D. but not limited to. 1. the penalty of imprisonment shall be imposed on the entity's responsible officers. 347. issuances. Administration SECTION 3.D.D. — It is the policy of the Republic of the Philippines to establish. 2658. That the terms of the first six appointive members shall be one.D. P. SECTION 4. The Chairman of the Commission shall be designated by the President from among its members. The apppointive members of the Commission shall receive one thousand five hundred pesos per diem for each meeting actually attended by them: Provided. 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. 1. 1.A. SECTION 7. P. The SSS shall be directed and controlled by a Social Security Commission composed of the Secretary of Labor and Employment. the president. The term of the appointive members shall be three years: Provided. one of whom shall be a woman. 24. Sec. No. 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. SECTION 8. Social Security System. Short Title.D.

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

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

S-1979) C. 1636. (As amended by Sec. No. No. 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. 1. P. No. 735. 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. S-1973. (As amended by Sec.A. 2. — Coverage in the SSS shall also be compulsory upon all self-employed persons earning P1. 2. 6. 3. . 1972. (As amended by Sec. the dependent parents and. reduced or otherwise impaired: Provided.800 or more per annum: Provided.O. 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.A. In the absence of any of the foregoing. 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. 5. the legitimate descendents and illegitimate children who shall be the secondary beneficiaries. 4857. S-1979) (r) Credited years of service — For a member covered prior to January 1975. 2658. 4857 and Sec. P. P.D. 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. further. S-1975) (l) Contingency — The retirement. Sec. No. 3. — (a) Coverage in the SSS shall be compulsory upon all employees not over sixty years of age and their employers: Provided.D.A. R. 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. Such other services performed by temporary employees who may be excluded by regulation of the Commission. 735.D. No. finally. further. 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. whichever is greater: except where the month of contingency falls within eighteen months from the month of coverage. No. (As amended by Sec. 5. (As amended by Sec. 4. In their absence. S-1973 and Sec. 177. and Sec. P. Compulsory Coverage of the Self-employed.A. 5. 102. 735. 5. and Sec. 2. R. 5. further. June. 3. 4857. 3.D. further. 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 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.A. Sec. Sec. Partners and single proprietors of businesses. subject to the restrictions imposed on dependent children. No. S-1975) (p) Quarter — A period of three consecutive calendar months ending on the last day of March. adjustments. 3839) (b) Filipinos recruited in the Philippines by foreign-based employers for employment abroad may be covered by the SSS on a voluntary basis. 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. 5. organization. R. eliminations or improvements in the benefits to be available under the remaining private plan. 5. For a member covered in or after January 1975. Scope of the System SECTION 9. No. S-1975) Section 9-A.A. S-1975. and Sec. P.D. (As amended by Sec. 735. 2658. P. 1. who shall be the primary beneficiaries. 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. 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. (As amended by Sec. further. 735.D. All self-employed professionals licensed by the Professional Regulations Commission or those licensed to practice law. P. (As amended by Sec. 177. P. E.D.D. P. modifications. (As amended by Sec. No. finally. That the effectivity of the coverage of the following self-employed persons shall be in accordance with section ten (b) hereof: 1. S-1975) (k) Beneficiaries — The dependent spouse until he remarries and dependent children. That the provisions of this Act shall be supplementary to any such agreement. P. 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. any other person designated by the covered employee as secondary beneficiary. S-1986) (o) Semester — A period of two consecutive quarters ending in the quarter of contingency. P.D.A. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the services of said contractors.A. permanent disability.A. 3839. injury or sickness of the covered employee. 5. R. P. RA 4857. R. death. 3. 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. and Sec. 2. No. 735. 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. No. shall be subject to agreements between the employers and employees concerned: Provided. R. 735. Sec. That any changes. 1636. (As amended by Sec. R.D. (As amended by Sec. S-1975) 8. R.D. 735. 5.D. No. 3. Compulsory coverage. which may be necessary to adopt by reason of the reduced contribution thereto as a result of the integration. 2. No. September and December.

Benefits SECTION 12. R. 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.D. P. — (a) A covered employee who has paid at least one hundred twenty monthly contributions prior to the semester of retirement. 4. (As amended by Sec. 1202. 5. Sec. 1202. P. 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. be allowed to continue paying contributions under the same rules and regulations applicable to separated covered employees. S-1977 and Sec. That he is separated from employment and is not continuing payment of contributions to the SSS on his own. P. That he has paid at least thirty-six monthly contributions prior to the semester of death: Provided. P.O. Actors and actresses. 1972.D. He may. 1792. Sec. No. S-1977) Section 12-B. 7. (As amended by Sec. — (a) The monthly pension shall be the sum of the following: The average monthly salary credit multiplied by the replacement ratio.A. 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. — When an employee under compulsory coverage is separated from employment. 28. P. 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. 7. No.O. however. Sec. S-1986. his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to twenty times the monthly pension: Provided. Sec. 2. No.D. 1636. 735. P. (As amended by Sec. however. R. — The dependents' pension shall be equivalent to ten per cent of the monthly pension for each dependent child but not exceeding five.D. (As amended by Sec. 6. 24. No. P. 8. S-1979 and E. 6. 735. No. Effect of Interruption of Business or Professional Income. Sec. P. No.D. No. 3. Sec. P. S-1973. 1636. He shall again be subject to section eighteen and his employer to section nineteen of this Act. P. No. R. P. 4857.D. 102. 1986 shall be increased by twenty per cent. P. and Sec. his primary beneficiaries shall be entitled to the monthly pension and his dependents to the dependents' pension: Provided. (As amended by Sec.D. 5. Effective Date of Coverage. S-1979) (d) Upon the death of the retired employee pensioner. shall be entitled to a lump sum benefit equal to the total contributions paid by him and on his behalf: Provided. Dependents' Pension. 1636. 8. 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. 1980. Death Benefits.A.D. No.D. 177. directors.O. 1202. 1. Sec. trainers licensed by the Games and Amusement Board as well as jockeys and trainers licensed by the Philippine Racing Commission. No. but said employee shall be credited with all contributions paid on his behalf and entitled to benefits according to the provisions of this Act. That the monthly pension of surviving pensioners as of December 31. P. 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. R. 6. 6. scriptwriters and news correspondents who do not fall within the definition of the term "employee" in section eight (d) of this Act. 1636. Sec. and Sec. all provisions of the SSS Law applicable to covered employees shall also be applicable to the covered self-employed persons. 7. finally. No. 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. and One and a half per cent of the average monthly salary credit for each credited year of service in excess of ten years.A. S-1979) Section 10. (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. 7. S-1986) Section 13. further. R.D. S-1972. Sec. 3. No. No.D. 4. however. S-1986) Section 12-A. 7. P. (As amended by Sec. 1202. No.D. Sec. No. 3.D. R. That if he has no primary beneficiaries. E. (As amended by Sec.A.A. R. That the beneficiaries of the covered employee who dies without having paid at least three monthly contributions shall be entitled to the minimum benefit. Sec. S-1979) D. Sec. S-1972. 7. continue to pay the total contributions to maintain his right to full benefit. E. P. 4. — 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. 4. 177. — If the self-employed realizes no net professional or business income in any calendar year. shall be entitled for as long as he lives to the monthly pension: Provided. That if he has no primary beneficiaries and he dies within sixty months from the start of his monthly pension. S-1977. 24. 2658.A. P. S- 1979. 4. P. further. No. S-1973. Retirement Benefits. Professionals athletes. S-1977. No.D. No. Sec. No. P. Sec. 2658. 1636. 6. Effect of Separation from Employment.D. he shall not be required to pay contributions for the succeeding year. 102. No. (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. 3. 8. — Upon the covered employee's death. 4857 and Sec. and Sec. He may. 7. 5. 4. S-1975. 1636. P. S- 1979) . 1636. R. S-1979) Section 11. 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. (As amended by Sec. S-1975.D. Unless otherwise specified herein. (As amended by Sec. 2658.A. coaches. 3.D. 735. beginning with the youngest and without substitution. No.A. No. 1792. Monthly Pension. 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. (As amended by Sec. S-1975) Section 11-A.D.D. 1202.

S-1986) (d) The following disabilities shall be deemed permanent total: 1. if such disability occurs after he had paid at least thirty-six monthly contributions prior to the semester of disability. That if he has no primary beneficiaries and he dies within sixty months from the start of his monthly pension. finally. P. further. further. P. P. 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. The monthly pension and dependents' pension shall be suspended upon his recovery from the permanent total disability.D. Such cases as determined and approved by the SSS. 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. P. No. — (a) Upon the covered employee's permanent total disability. That if the disability occurs before he has paid thirty-six monthly contributions prior to the semester of disability.O. No. S-1979) . No. 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. 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. 9. Permanent complete paralysis of two limbs. 9. P. 1636. he shall be entitled to the monthly pension and his dependents to the dependents' Pension: Provided. 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. P. 1202.D. 1636. S-1977 and Sec. 9. 5. 1636. 9. (As amended by Sec. he shall be entitled to a lump sum benefit equivalent to thirty-five times the monthly pension: Provided. (As amended by Sec. 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. No. Complete loss of sight of both eyes. 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. 1202.Section 13-A. 6. 735. No. No. and. 6. 1636. (As amended by Sec. Brain injury resulting to incurable imbecility or insanity.D. 4. or his failure to present himself for examination at least once a year upon notice by the SSS. No. S-1979) (e) If the disability is permanent partial. and such disability occurs before thirty-six monthly contributions have been paid prior to the semester of disability. 102. 1636. 2. Loss of two limbs at or above the ankle or wrists.D. 10. P.D. (As amended by Sec. S- 1979 and Sec. 6. Permanent disability benefits. No.D. E. 9.D. 3. P. 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.D. No. S-1979) (c) Upon the death of the permanent total disability pensioner. (As amended by Sec. S-1975 and Sec. 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.

or the SSS.O. No. 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. P. further.D.D.A. but shall be additive for deteriorating and related permanent partial disabilities. shall not be additive for distinct. 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. No. (As amended by Sec. R. That if the notification to the SSS is made by the employer beyond five calendar days after receipt of the notification from the employee. P. — 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. 735. S-1972. Sec. 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. P.O. 24. 8. 1636. further. (As amended by Sec. abortion. 24. Sec. for as long as such allowances are due and payable: Provided. S-1972) Section 14-A. 9.D. 24. 4857. Sec. subject to the following conditions: (As amended by Sec. P. (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.A. 14. 3. 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. 24. P. shall.D. 8. E. P.O. No. No. P. 4857. 7. S-1972 and Sec. . (As amended by Sec. 5.D. No. Funeral Benefit. S-1986. 8. 3. — A covered female employee who has paid at least three monthly maternity contributions in the twelve-month period preceding the semester of her childbirth. 9.D. 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. (As amended by Sec. 4857. P. E.A. 2658. 735. Sec. 1973. 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.O. P. 2658. 11. or miscarriage. No. the employees shall be paid the daily maternity benefit for seventy-eight days.A. 10. (c) That in case of caesarian delivery. No. P. S-1979) Section 13-B. P. That the employer has notified the SSS of the confinement within five calendar days after receipt of the notification from the employee: Provided. 7. 8. 2658. (As amended by Sec. S-1972. 1636. 102. E. No. S-1973. 8. Sec. if such person is unemployed. No. 2. 1.A. — (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. an allowance equivalent to ninety per cent of his average daily salary credit. 28. S- 1975. R.(g) The percentage degree of disability. E. R. to a maximum of one hundred per cent. That in cases where notification is necessary. Provided.D. S-1972) (e) The claim of reimbursement shall be adjudicated by the SSS within a period of two months from receipt thereof. 24. No.D. R. P. 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. 7. (As amended by Sec. P. (As amended by Sec. No. 8. R. and Sec. S-1986) (2) No employee shall be paid any sickness benefit for more than two hundred forty days on account of the same confinement. the confinement shall be deemed to have started not earlier than the fifth day immediately preceding the date of notification. S-1986 and Sec. permanently totally disabled employee or retiree. 24. for each day of compensable confinement or fraction thereof. 28. 4482. S-1979) (b) The compensable confinement shall begin on the first day of sickness. 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. and Sec. No. No. 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. Sec. Maternity Leave Benefit. 28.A.D. 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 similarly in the case of direct payment by the SSS. finally.D. 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.D. separate and unrelated permanent partial disabilities. (As amended by Sec. S-1986) Section 14. 9. 735. 735. 177. rounded to the next higher integer. R. Sec. E. No. 12. (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. and Sec. Sickness Benefit. R. be paid by his employer. 7. 8. 102. (As amended by Sec. No. 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.D. 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. 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. No. which is equivalent to the ratio that the designated number of months of compensability bears to seventy-five. in which case the employee shall be deemed as permanently totally disabled. 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. 12. Sec. and Sec.D. Sec. No. No.O. S- 1975. abortion. 9.A.

A.99 425 21. No.9 IV 250 .899. No.000.249. 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.7 VI 500 .3 210 XIII 2750 . fee. 1202. further. and still unpaid by the SSS shall be null and void. 3839. P.99 1. P.000.7 67. Non-transferability of Benefits.7 168 XII 2250 . equipment. unless it expressly revokes the declared policy of the State in section two hereof granting tax-exemption to the SSS. and R.2 VIII 900 . and the SSS shall in turn pay such amount to the employee concerned.D. and Sec.149.349.3 41. Sec.7 33.99 225 11. as representative payee of the recipient. 1973. (As amended by Sec.7 105 X 1400 .99 1.D.A. 1636. compensation or earnings. the employer shall pay to the SSS damages equivalent to the benefits which said employee would otherwise have been entitled to. Exemption from Tax.2249.000. 7322) Section 15. at the discretion of the court. and shall not be liable to attachments. No. No. S-1973 and Sec. 10.99 600 30. 2658. compensation or earnings during the month in accordance with the following schedule effective on January 1. That notwithstanding the foregoing.250. said benefits shall be paid to the legal heirs in accordance with the law of succession: Provided. 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. in favor of any agent.99 300 15. wage. P.1099. 4857. No. S-1977) E. Sec. Fee of Agents. or both. (As amended by Sec.99 P 125. 8.3 84 IX 1100 . finally.99 1.7 III 200 . Sec. attorney.00 152 100 252 The tabulated schedule for the monthly contribution of the self-employed and voluntary members effective January 1. further.50 II 150 .OVER 3. or which is not recognized by the Philippines.5 26.1749. further. 24. which fees shall not be payable before the actual payment of the benefits.7 14. filing or pursuing any claim for benefit under this Act shall demand or charge for his services any fee. — (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. No. and conversely. 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. the Commission shall appoint a representative under such terms and conditions as it may deem proper: Provided. fees or charges. or imprisonment for not less than six months nor more than one year. That in case of death benefits. R. the Commission may direct payments without regard to nationality or country of residence: Provided. 8-A. Such benefits are not transferrable and no power of attorney or other document executed by those entitled thereto. 735. 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.2749. P. wage. if no beneficiary qualifies under this Act. (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. P.00 63.00 P 6. Sec. 8.D.00 126. 13.D.500.99 175 9 5. Legal Process and Lien. 24.499. 1202. or customs or import duty. as amended. either before or after receipt by the person or persons entitled thereto. That notwithstanding any law to the contrary. (As amended by Sec. No tax measure hereafter enacted shall apply to the SSS.2 10 25. papers or documents which may be required in connection with the operation or execution of this Act shall be exempt from any tax. 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.3 66. and any stipulation to the contrary shall be null and void. except to pay any debt of the covered employee to the SSS. S-1979. — No agent. 1987 shall be as follows: Salary Range of Monthly Salary Monthly .99 800 40. Employee's Contribution.5 18. S-1977.00 50. 4.D. S- 1972. 1987: Salary Bracket Range of Monthly Salary Monthly Contribution Number Compensation Credit Employer Employee Total I P 1 . 9.D. or any other person for the collection thereof on their behalf shall be recognized. P. No.500.99 2. P. — All laws to the contrary notwithstanding the SSS and all its assets and properties.4 20 50. Sources of Funds — Employment Records and Reports SECTION 18. 14. and all benefit payments made by the SSS shall likewise be exempt from all kinds of taxes. all contributions collected and all accruals thereto and income or investment earnings therefrom as well as all supplies. S-1972 and Sec.10 P 10. where the best interest of the SSS will be served. attorney or other person in charge of the preparation. and any stipulation to the contrary shall be null and void.1399. however.4 VII 700 . during the period of such payment for the same contingency.00 101. 7. S-1975) Section 16. the employer shall deduct and withhold from such employee's monthly salary.7 83.699.2 V 350 . garnishments. 11. the employee's contribution in an amount corresponding to his salary.99 2.199.1 35. further. charge.40 P 4. (e) That the maternity benefits provided under this section shall be paid only for the first four deliveries after March 13. P. shall not be entitled to receive any benefit under this Act: Provided. 347. That the beneficiary who is a national of a foreign country which does not extend benefits to a Filipino beneficiary residing in the Philippines. Attorneys. levy or seizure by or under any legal or equitable process whatsoever.4 7. assessment. or without the latter having been previously notified by the employer of time of the pregnancy. 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.A. R. 4. (As amended by Sec. except when they are physically unable to collect personally such benefits: Provided. Any tax assessment against. etc.00 76 50 126 XI 1750 . That if the recipient is a minor or a person incapable of administering his own affairs. S-1975) Section 17.D. 735.D. R. No.6 14.A.

from the compensation of his employees covered by the SSS or otherwise recover from them the employer's contributions with respect to such employees. the contributions payable by the employees to be advanced by their respective employers: Provided. another declaration of his average monthly net earnings based on his income tax returns for the immediately preceding year. 24.1.00 120 XI 1. 12.750 .D. any contribution so paid in advance but not due shall be credited or refunded to his employer. (As amended by Sec. Government Guarantee. No. No.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.99 2.249. 14. 1202.OVER 3. P.500.00 200 XIII 2. P.2. an employer shall not deduct. (As amended by Sec. P. — As the contribution of the Government to the operation of the System. 1636. 24. (As amended by Sec.00 100 X 1. No. — 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.D. No.00 II 150 . as amended.99 1. (As amended by Sec. Sec. at the start of the year.00 80 IX 1. 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. and Sec. excluding rental income.A. 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. R. 1792. (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.250. — (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. Employer's Contributions. No. Section 21. (As amended by Sec. P. the necessary sum or sums to meet the estimated expenses of the System for each ensuing year. 10. Sec.1. That upon separation of an employee.A.2.99 225 18 IV 250 .99 1. S-1979) Section 20. the employer's contribution in accordance with the schedule indicated in section eighteen of this Act.99 425 34 VI 500 . S- 1972. Notwithstanding any contract to the contrary. Bracket compensation Credit Contribution Number I P 1 . 13. — The contributions to the SSS of the self-employed shall be determined in accordance with section eighteen of this Act: Provided. 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.149. S-1979) Section 19-A.699. the correct names and SS numbers of the employees and the total contributions paid for their account during the quarter. R.99 800 64 VIII 900 .250 .D. Remittance of Contributions.000. directly or indirectly. 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.249.749. 15.99 2.499. 10. In addition to this contribution. Government Contribution. No.99 P 125. Contributions of the Self-employed.D.00 P 10.349.99 300 24 V 350 . 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.399.000.00 160 XII 2. in which case such latest declaration becomes the new basis of his monthly salary credit. P.1.199. his employer shall pay. he shall pay besides the contribution a penalty thereon of three per cent per month from the date the contribution falls due until paid. unless he makes. 11.400 .D.749. No.A. the collection and remittance of contributions shall be made quarterly or semi-annually in advance. 1636.D. (As amended by Sec. P. 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. R. 12. the Congress shall annually appropriate out of any funds in the National Treasury not otherwise appropriated. 1792) Section 22.000. — (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. 1636. 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.99 1. P. If deemed expedient and advisable by the Commission. 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 the case may be.099. 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. (As amended by Sec.99 175 14 III 200 .100 .899. 9. 2658. 1636. or from the time the benefit accrues.D. S-1979) Section 19. 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.99 600 48 VII 700 . with respect to such covered employee.750 . S-1979) . dividend.500. 13.

A. 177. 4. the employer shall pay to the SSS damages to the extent of such reduction. Sec. (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. (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.D. further. P.D. Sec. 12. stamp. P. R. That in case of employees who have earlier been assigned registration numbers by virtue of a previous employment. 13.(c) Should any person. S-1979) In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof. the employer shall be liable to pay the SSS damages equivalent to five year's monthly pension. P. 17. (As amended by Sec. 1792. the employer shall also be liable for the payment of the corresponding unremitted contributions and penalties thereon. The SSS may also require each employer to submit. Method of Collection and Payment. R. S-1973. reports needed for the effective administration of this Act. 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. 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. P. P. (As amended by Sec. No. 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. Sec. tickets.D. E. 13. No. 16. 12. S-1975) (d) Every employer shall keep true and accurate work records for such period and containing such information as the Commission may prescribe. S-1986) Section 22-A. 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. resulting in a reduction of benefits. S-1972 and Sec. 735.D. 24. and 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.D. 24.D. shall be presumed correct as to the data and other matters stated therein. 735. (As amended by Sec. 11.D. P. No. S-1972 and Sec. such payments shall discharge the SSS from liability.D. S-1972. No. 12. occupations. as the case may be. No. (As amended by Sec. 16. 15. No. (As amended by Sec. Sec. 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. Payment may be made in cash. 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. 13. 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. (As amended by Sec. No. natural or juridical. Employment Records and Reports. Sec. 1636. 9. P.D. No. P. 1973.A. and Sec. That if the contingency occurs within thirty days from the date of employment. S-1972. 24. P. 17. No. shall not be divulged without the consent of the Administrator or any official of the SSS duly authorized by him. P. 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. except that in case of pension benefits. (As amended by Sec. No. shall be kept confidential by the SSS except in compliance with a subpoena duces tecum issued by the Courts. 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. the names of the persons employed or separated from employment. 24. 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. S-1972) (e) Effective July 1. unless and until such other beneficiary notifies the SSS of his claim prior to the payments. 735. 4857. further. with respect to the persons in his employ. (As amended by Sec.D.D. No. No. the employer shall be relieved of his liability for damages. 1202. S-1975. such numbers originally assigned to them should be used for purposes of this section: Provided. P. (As amended by Sec. In case the employer fails to remit to the SSS the said contributions within the six months grace period. 1636. ages. 24. No. unless contradicted and overcome by other evidence: Provided. civil status. 16.D. 16. P.D. 28. P. 1636. 6. S-1975. No. and shall be made the basis for the adjudication of the claim. S-1972. or other reasonable devices that the Commission may adopt. S-1977) (e) For purposes of this Section. and Sec. Such records shall be open for inspection by the SSS or its authorized representatives quarterly or as often as the SSS may require. salaries and dependents of all his employees who are subject to compulsory coverage: Provided. 24. No.D. 15. 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). P. each employer shall require as a condition to employment. — The SSS shall require a complete and proper collection and payment of contributions and proper identification of the employer and the employee. P. 1202. (As amended by Sec. P. 735. nor shall the employer be relieved of his liability under section twenty-eight of this Act. including dependents' pension: Provided. as the Commission may specify through rules and regulations. S-1979) (c) The records and reports duly accomplished and submitted to the SSS by the employee or the employer. 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. No. their SSS numbers. — (a) Each employer shall immediately report to the SSS the names. S-1975) Section 24. checks. 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. — Self-employed members shall remit their monthly contributions quarterly on such dates and schedules. Remittance of Contributions of Self-employed.D. 24. 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.O. coupons. S-1979) Section 23. No. which shall hear and dispose of the case in preference to any other civil action. the Commission may also collect the same in either of the following ways: (1) By an action in court. P.D. No. 13. 13. default in any payment of contributions. S- 1972) .

D. 3839. That such investment shall not exceed thirty per cent of the Investment Reserve Fund. and all accruals thereto shall be deposited.D. he should die or become sick. No. (h) The SSS may insure any of its interests or part thereof with any private company or reinsurer.D. That the tolls shall be collected by the SSS for a reasonable fee. That such investment in deposits or securities shall be equitably distributed to all designated banks. 17. Report and Registration of the Self-employed. No. 24. 24. 4857. 11.A. 17. 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. age.A. S-1972. No. S-1986) Section 26. R. 65. Sec. That for each examination. 102. 102. Sec. S-1973. That if the expenses in any year are less than the maximum amount permissible. the SSS shall not pay him the corresponding benefit. Sec. 15. No. — Each covered self-employed person shall. (As amended by Sec. 14.D. P. S-1979. R. S-1986) (f) In other income earning projects and investments secured by first mortgages on real estate collaterals which. educational. No. 24. 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. S-1986) (e) In short and medium term loans to covered employees such as salary. Sec.A. 735. microfilm copies of original SSS records and reports. 11.A. 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. 1636. Investment of Reserve Funds. 1636. Sec. 14.D. S-1975) Section 24-A. Sec. — All moneys paid to or collected by the SSS every year under this Act. 2658. E. 2658.O. 177. No. R.D. No. P. S-1972) (c) In loans or interest-bearing advances to the National Government for the construction of permanent toll bridges. P. No. finally. No. 18. and occupation. No.D. shall redound to the benefit of the SSS. P. 24. E. shall have evidentiary value as the originals and be admissible as evidence in all legal proceedings. (As amended by Sec. S-1972. S-1975. P.D. 13-A.(f) Notwithstanding any law to the contrary. S- 1975) . Deposit and Disbursements. 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. That any such investment shall be made with due diligence and prudence to earn the highest possible interest consistent with safety. further. P. Sec. S-1972) (g) As part of its investment operations. P.D. and Sec. No. No. 4857. Funds of the System Section 25. within thirty days from the effective date of coverage. 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. P.D. That not more than ten per cent of the Investment Reserve Fund at any time shall be invested for this purpose. further. in the determination of the Commission. aged and infirmed members and their families. Sec." All amounts received by the SSS in connection with the aforesaid insurance operations shall be placed in the Mortgagors' Insurance Account. No. the SSS shall act as insurer of all or part of its interests on SSS properties mortgaged to the SSS. P. 16. 16. and Sec. 5. P. 11. or lives of mortgagors whose properties are mortgaged to the SSS. 15. (As amended by Sec. referred to in section 4 (j) of this Act: Provided. E. 24. 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.O. and Sec. (As amended by Sec. P. R.A.D. S-1972. No. No. 18. operational expenses and the maintenance of regional offices of the SSS: Provided.D. S-1975. S-1986) (a) In interest-bearing bonds or securities of the Government of the Philippines. 2658. 10. S-1979) F. and Sec. That such deposits shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank. the difference shall not be availed of as additional expenses in the following years. further. whichever is smaller: Provided. the SSS shall establish a separate account to be known as the "Mortgagors' Insurance Account. 11. 7. For this purpose. Sec. 735. 735. civil status.D.D. 102. R. 735. S-1972. P.A. average monthly net income and his dependents: Provided. S-1972) (d) In direct housing loans to covered employees and group housing projects giving priority to the low-income groups. That if after said period of thirty days. 14. P. P. 14. No. report to the SSS his name. R. — 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'. No. as well as the public welfare: Provided. P. No. P. 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. No. 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.D. 1. R. 19. (As amended by Sec. (As amended by Sec.A. S-1972. Sec. 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. administered and disbursed in the same manner and under the same conditions and requirements as provided by law for other public special funds: Provided. 24. calamity and emergency loans: Provided. 24. 24. its members. duly certified by the official custodian thereof. Notwithstanding any provision of law to the contrary. 14. No. 102. E. and Sec.O. 14.O. (As amended by Sec. 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. Sec. (b) In interest-bearing deposits or securities in any domestic bank doing business in the Philippines: Provided. toll roads or government office buildings in accordance with actuarial considerations and the conditions prescribed by law in such cases: Provided. and Sec. 10.D. 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. purchases of office equipment and materials. 1792. 18. or disabled or reach the age of sixty without the SSS having previously received such report. (As amended by Sec. (As amended by Sec. 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. 14.

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

P. No. Government Aid. 15. (As amended by Sec. P.D. 735. S-1975) Section 32. R. — In the event any provision of this Act or the application of such provision to any person or circumstance is declared invalid. Section 31. S-1972. 24. as may be provided. No. the remainder of this Act or the application of said provision to other persons or circumstances shall not be affected by such declaration. 19. 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. Separability Clause. S-1975. financial or otherwise. — The establishment of the Social Security System shall not disqualify the covered employees and employers from receiving such government assistance. Section 30. — This Act shall take effect upon its approval. at the option of the SSS. Sec.D.D. — The Assembly hereby reserves the right to amend. 13.D. 21.D. three hundred fifteen of the Revised Penal Code. 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. P. or repeal any provision of this Act. 1202. (As amended by Sec. 1792 and Sec. S-1977) Section 29. 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. 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. Approved: June 18.(h) Any employer who after deducting the monthly contributions or loan amortizations from his employee's compensation. Effectivity. 24. alter. P. No. P. (As amended by Sec. No.A. 20. 15. Saving Clause. and Sec. 19541awphil@alf . 735.

1146. 8291 AN ACT AMENDING PRESIDENTIAL DECREE NO. whether by election or appointment. subject to the restrictions on dependent children. the following terms shall mean: "(a) GSIS — The Government Service Insurance System created by Commonwealth Act No. INSTITUTING REFORMS THEREIN AND FOR OTHER PURPOSES SECTION 1. "(f) Dependents — Dependents shall be the following: (a) the legitimate spouse dependent for support upon the member or pensioner. legally adopted child.000. excluding per diems. otherwise known as the "Revised Government Service Insurance Act of 1977". not gainfully employed. 186. REPUBLIC ACT NO.000) of the average monthly compensation plus one hundred percent (100%) of the average monthly compensation in excess of One thousand pesos (P1. and premium shall be nine percent (9%) and twelve percent (12%) for employee and employer covering the AMC limit and below.00). allowances and any other emoluments received in addition to the basic pay which are not integrated into the basic pay under existing laws. "(m) Revalued average monthly compensation — An amount equal to one hundred seventy percent (170%) of the first One thousand pesos (P1. as amended. "(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). and financial institutions with original charters. its political subdivisions. 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. pursuant to his election/appointment. is hereby further amended to read as follows: "SECTION 1. "(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. (b) the legitimate. "(j) Contribution — The amount payable to the GSIS by the member and the employer in accordance with Section 5 of this Act. irrespective of status of appointment. "(i) Compensation — The basic pay or salary received by an employee. overtime pay. "(e) Active Member — A member who is not separated from the service. honoraria. agencies or instrumentalities. That initially the average monthly compensation shall not exceed Ten thousand pesos (P10. "(d) Employee or Member — Any person. and (c) the parents dependent upon the member for support. Definition of Terms. the legitimate descendants. "(c) Employer — The national government. not over the age of majority. the constitutional commissions and the judiciary. including government- owned or controlled corporations. AS AMENDED. who is unmarried. or by the number of months he received such compensation if he has less than thirty-six (36) months of service: Provided. "(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. Presidential Decree No. bonuses. 1146. and two percent (2%) and twelve percent (12%) for employee and employer covering the compensation above the AMC limit. — Unless the context otherwise indicates. branches. "(p) Gainful Occupation — Any productive activity that provided the member with income at least equal to the minimum compensation of government employees. "(h) Secondary beneficiaries — The dependent parents and. Title. further. . including barangay and sanggunian officials. — The short title of this Act shall be: 'The Government Service Insurance System Act of 1997. "(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. "(n) Lump sum — The basic monthly pension multiplied by sixty (60). including the illegitimate child. "(g) Primary beneficiaries — The legal dependent spouse until he/she remarries and the dependent children.000).' "A. 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. "(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. DEFINITIONS "SECTION 2. EXPANDING AND INCREASING THE COVERAGE AND BENEFITS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM. receiving compensation while in the service of an employer as defined herein. legitimated.

salaries and such other pertinent information. "(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. Such interest shall be paid by the employers concerned. and unemployment benefits. "(u) Permanent Partial Disability — Accrues or arises upon the irrevocable loss or impairment of certain portion/s of the physical faculties. survivorship. "Except for the members of the judiciary and constitutional commissions who shall have life insurance only. Collection and Remittance of Contributions.0% — In Excess of the AMC Limit 2. "SECTION 7. "B. . — Membership in the GSIS shall be compulsory for all employees receiving compensation who have not reached the compulsory retirement age. subject to the condition that they must settle first their financial obligation with the GSIS. — Up to the Maximum AMC Limit 9. 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. "(c) It shall be mandatory and compulsory for all employers to include the payment of contributions in their annual appropriations. as may be required by the GSIS. 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. "SECTION 6. — (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. Over the Maximum AMC Limit III. "(b) The employer shall include in its annual appropriation the necessary amounts for its share of the contributions indicated above. or delay the remittance of premium contributions to the GSIS. Maximum Average Monthly Compensation (AMC) Limit and Below 9. "C. — (a) The employer shall report to the GSIS the names of all its employees. and shall be entitled to whatever benefits he has qualified to in the event of any contingency compensable under this Act. "SECTION 4. separation.0% "Members of the judiciary and constitutional commissioners shall pay three percent (3%) of their monthly compensation as personal share."(s) Permanent Total Disability — Accrues or arises when recovery from the impairment mentioned in Section 2(Q) is medically remote. Effect of Separation from the Service. The heads of offices and agencies shall be administratively liable for non-remittance or delayed remittance of premium contributions to the GSIS. irrespective of employment status. retirement. — 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. Interests on Delayed Remittances. and contractuals who have no employer and employee relationship with the agencies they serve. — A member separated from the service shall continue to be a member. Contributions. their corresponding employment status.0% 12. plus any additional premiums that may be required on account of the hazards or risks of its employees' occupation. except salaries and wages of its employees.0% 12.0% II. The remittance by the employer of the contributions to the GSIS shall take priority over and above the payment of any and all obligations. except members of the Armed Forces of the Philippines and the Philippine National Police. SOURCES OF FUNDS "SECTION 5. despite which the member is able to pursue a gainful occupation. if any. MEMBERSHIP IN THE GSIS "SECTION 3. including subsequent changes therein. and their employers a corresponding three percent (3%) share for their life insurance coverage. "(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.0% 12. all members of the GSIS shall have life insurance. Compulsory Membership. and all other social security protection such as disability. positions.

— 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. however. 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. Retirement Benefits. but not less than Twelve thousand pesos (P12. That part time and other services with compensation may be included under such rules and regulations as may be prescribed by the GSIS. That the basic monthly pension shall not be less than One thousand and three hundred pesos (P1. — 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. 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. "(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.400. That the basic monthly pension shall not exceed ninety percent (90%) of the average monthly compensation. "All accumulated unemployment benefits paid to the employee during his entire membership with the GSIS shall be deducted from voluntary separation 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. "SECTION 12. or . BENEFITS "SECTION 9. — 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."SECTION 8.00): Provided. "D. Computation of Service. "SECTION 10. "For the purpose of this section the term service shall include full time service with compensation: Provided. That he has been paying integrated contributions for at least one (1) year prior to 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. 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. "The GSIS shall prescribe the detailed guidelines in the operationalization of this section in the rules and regulations implementing this Act. 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. "SEPARATION BENEFITS "SECTION 11. those performed overseas under the authority of the Republic of the Philippines. Separation Benefits. plus an old-age pension benefit equal to the basic monthly pension payable monthly for life upon reaching the age of sixty (60): Provided. "(b) All service credited for retirement. — (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. "RETIREMENT BENEFITS "SECTION 13. further.000) payable upon reaching sixty (60) years of age or upon separation. and those that may be prescribed by the GSIS in coordination with the Civil Service Commission. Unemployment or Involuntary Separation Benefits. whichever comes later: Provided.00) a month. including periods of service at different times under one or more employers. plus "2) two and one-half percent (2.5%) of said revalued average monthly compensation for each year of service in excess of fifteen (15) years: Provided. A seven-day (7) waiting period shall be imposed on succeeding monthly payments.300. starting upon expiration of the five-year (5) guaranteed period covered by the lump sum.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. Computation of the Basic Monthly Pension. Government Guarantee. — (a) the basic monthly pension is equal to: "1) thirty-seven and one-half percent (37.

"SECTION 16. "(2) loss of two (2) limbs at or above the ankle or wrist. and "(5) such other cases as may be determined by the GSIS. further. whose decision shall be final and binding.000) which should have been his separation benefit. in addition to the monthly income benefit. General Conditions for Entitlement. "(4) brain injury resulting in incurable imbecility or insanity. retirement shall be compulsory for an employee at sixty-five (65) years of age with at least fifteen (15) years of service: Provided. "(b) Unless the service is extended by appropriate authorities. Periodic Pension Adjustment. he was in the service and has paid a total of at least one hundred eighty (180) monthly contributions. notorious negligence. or has paid a total of at least one hundred eighty (180) monthly contributions. "SECTION 13-A. finally. That: (1) he is in the service at the time of disability. "SECTION 14. Conditions for Entitlement. — (a) If the permanent disability is total. — A member who suffers permanent disability for reasons not due to his grave misconduct. That he satisfies either conditions (1) or (2) of Section 16(a). or willful intention to kill himself or another. "(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 . That a member cannot enjoy the monthly income benefit for permanent disability and the old-age retirement simultaneously. he may be allowed to continue in the service in accordance with existing civil service rules and regulations. but not less than Twelve Thousand pesos (P12. That if he has less than fifteen (15) years of service. and (3) he is not receiving a monthly pension benefit from permanent total disability. "(d) The following disabilities shall be deemed total and permanent: "(1) complete loss of sight of both eyes. he shall receive a cash payment in accordance with a schedule of disabilities to be prescribed by the GSIS: Provided. (2) he is at least sixty (60) years of age at the time of retirement. 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."(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. shall be entitled to the benefits provided for under Sections 16 and 17 immediately following. subject to the corresponding conditions therefor. "(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. disability benefit shall be suspended when: "(1) he is reemployed or "(2) he recovers from disability as determined by the GSIS. — (a) If the disability is partial. "PERMANENT DISABILITY BENEFITS "SECTION 15. That if at the time of disability. habitual intoxication. "(3) permanent complete paralysis of two(2) limbs. — A member who retires from the service shall be entitled to the retirement benefits in paragraph (a) of Section 13 hereof: Provided. "(c) Unless the member has reached the minimum retirement age. — 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. he shall receive a monthly income benefit for life equal to the basic monthly pension effective from the date of disability: Provided. or (2) if separated from the service. he shall receive a cash payment equivalent to eighteen (18) times his basic monthly pension: Provided. Permanent Partial Disability Benefits. Permanent Total Disability Benefits. That: (1) he has rendered at least fifteen (15) years of service. prior to his disability: Provided. "SECTION 17. he has paid at least thirty-six (36) monthly contributions within the five (5) year period immediately preceding his disability. or "(3) he fails to present himself for medical examination when required by the GSIS.

That: "(1) he is in the service at the time of his disability.00): Provided. Non-scheduled Disability. "SURVIVORSHIP BENEFITS "SECTION 20.000. further. Death of a Member. if any. the beneficiaries shall be entitled to survivorship benefits provided in Sections 21 and 22 hereunder subject to the conditions therein provided for. he/she shall receive the basic survivorship pension for life or until he/she remarries. or "(2) if separated. or has paid a total of at least one hundred eighty (180) monthly contributions prior to his death. or (3) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions. That if the disability requires more extensive treatment that lasts beyond one hundred twenty (120) days. (b) The survivorship pension shall be paid as follows: (1) when the dependent spouse is the only survivor.(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.00) a day. 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. 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. Temporary Total Disability Benefit. "(b) The temporary total disability benefit shall in no case be less than Seventy pesos (P70. or (ii) if separated from the service. 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. Provided. That the deceased: (i) was in the service at the time of his death. That the deceased was in the service at the time of his death with at least three (3) years of service. 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. That a member cannot enjoy the temporary total disability benefit and sick leave pay simultaneously: Provided. 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. Survivorship Benefits. "SECTION 19. "TEMPORARY DISABILITY BENEFITS "SECTION 18. the mode of payment. as provided herein. "(c) The notices required of the member and the employer. the GSIS shall determine the nature of the disability and the corresponding benefits therefor. however. — (a) Upon the death of a member. but not less than Twelve thousand pesos (P12. . — When a member or pensioner dies. — For injuries or illnesses resulting in a disability not listed in the schedule of partial/total disability. — (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 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 survivorship pension shall consist of: (1) the basic survivorship pension which is fifty percent (50%) of the basic monthly pension. and (2) the dependent children's pension not exceeding fifty percent (50%) of the basic monthly pension. but not earlier than the fourth day of his temporary total disability: Provided. the primary beneficiaries shall be entitled to: (1) survivorship pension: Provided. (3) "SECTION 21.

and claims under this Act and any other laws administered by the GSIS. — The GSIS shall prescribe rules and regulations to facilitate payment of benefit. as defined in Section 2(o) of this Act. or (b) a member who has been separated from the service.000. under such terms and conditions as may be promulgated by the GSIS. When the pensioner dies within the period covered by the lump sum. "LIFE INSURANCE BENEFITS "SECTION 24. be compulsorily covered with life insurance. (3) when the survivors are the dependent spouse and the dependent children. 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. memorial plans. 1616. plus the dependent children's pension equivalent to ten percent (10%) of the basic monthly pension for every dependent child not exceeding five (5). ADJUDICATION OF CLAIMS AND DISPUTES "SECTION 28. the dependent spouse shall receive the basic survivorship pension for life or until he/she remarries. their insurance shall take effect following said effectivity. proceeds. "SECTION 27. (c) In the absence of primary beneficiaries. health. legitimate children shall include legally adopted and legitimate children. their insurance shall be deemed renewed on the day following the maturity or expiry date of their insurance. shall not bar the legal and eligible recipient to his right to demand the payment of benefits. (3) for those without any life insurance as of the effectivity of this Act. Any employer may likewise apply for group insurance coverage for its employees. counted from the youngest and without substitution. Optional Insurance. and the dependent children shall receive the dependent children's pension mentioned in the immediately preceding paragraph (2) hereof. (2) when only dependent children are the survivors. and claims from the GSIS. proceeds. Reinsurance. which shall automatically take effect as follows: (1) for those employed after the effectivity of this Act. — The GSIS may reinsure any of its interests or part thereof with any private company or reinsurer whether domestic or foreign: Provided. Dividends. — Subject to the rules and regulations prescribed by the GSIS. the benefits under this paragraph shall be paid to his legal heirs. but not less than Twelve thousand pesos (P12. the qualified beneficiaries shall be entitled to the survivorship pension defined in Section 20 of this Act. Prescription. who shall.000): Provided. a member may apply for insurance and/or pre-need coverage embracing life.000. "E. — All employees except for Members of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) shall. hospitalization. That the GSIS shall submit an annual report on its reinsurance operations to the Insurance Commission. — Claims for benefits under this Act except for life and retirement shall prescribe after four (4) years from the date of contingency. Funeral Benefit. — 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. to a beneficiary or claimant subsequently found not entitled thereto. or (2) in the absence of secondary beneficiaries. or (c) a pensioner. Facility of Payment.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. — 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. have a right to institute the appropriate action in a court of law against the ineligible recipient. "SECTION 26. the survivorship pension shall be paid only after the expiration of the said period. Compulsory Life Insurance. however. (2) for those whose insurance will mature after the effectivity of this Act. "SECTION 29. Payments made by the GSIS prior to its receipt of an adverse claim. "SECTION 25. but who may be entitled to future benefit pursuant to Section 4 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. and such other plans as may be designed by the GSIS. their insurance shall take effect on the date of their employment. Death of a Pensioner. — Upon the death of an old-age pensioner or a member receiving the monthly income benefit for permanent disability. for himself and/or his dependents. That it shall be increased to at least Eighteen thousand pesos (P18. .00): Provided. 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. they shall be entitled to the basic survivorship pension for as long as they are qualified. "SECTION 22. 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. subject to the provisions of paragraph (b) of Section 21 hereof. (d) For purposes of the survivorship benefits. "FUNERAL BENEFITS "SECTION 23. education.

promissory notes or other evidence of indebtedness of educational or medical institutions to finance the construction. Execution of Decision. That such investments shall. be punished for contempt. papers. certify to official acts. . 656. That no less than forty percent (40%) of the investable fund of the GSIS Social Insurance Fund shall be invested for these purposes. as amended. further. the General Insurance Fund created under Act No. an official or employee of the GSIS shall have the power to administer oath and affirmation. (f) In debt instruments and other securities traded in the secondary markets. — 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. "F. — When no appeal is perfected and there is no order to stay by the Board. 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. 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. and issue subpoena ad testificandum and subpoena duces tecum to compel the attendance of witnesses and the production of books. The Board may designate any member of the Board. improvement and maintenance of schools and hospitals. (d) in bonds. 1997 shall be governed by the applicable rules of procedure: Provided. "The funds of the GSIS shall not be used for purposes other than what are provided for under this Act. FUNDS OF THE GSIS "SECTION 34. — All contributions payable under Section 5 of this Act together with the earnings and accruals thereon shall constitute the GSIS Social Insurance Fund. — 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. to wit: (a) in interest-bearing bonds or securities or other evidence of indebtedness of the Government of the Philippines. further. as well as the general public. Moreover. and any person who shall fail or refuse to comply with such decision. The GSIS shall maintain the required reserves to guarantee the fulfillment of its obligations under this Act. The appeal shall not stay the execution of the order or award unless ordered by the Board. policy. upon application by the GSIS. The said Fund shall be used to finance the benefits administered by the GSIS under this Act. That in the case of such deposits. Oaths. and other records deemed necessary as evidence in connection with any question arising under this Act. — When authorized by the Board. instrumentalities and other agencies including government-owned and controlled corporations except as may be allowed under this Act. redound to the benefit of the GSIS. the employees' Compensation Insurance Fund created under P. in the determination of the Board. administered and disbursed in accordance with the law. That said bank has prior designation as a depository for the purpose by the Monetary Board of the Central Monetary Authority. "SECTION 36. Investment of Funds. whichever is smaller: Provided. Appeals. The Board shall decide the case within thirty (30) days from the receipt of the hearing officer's findings and recommendations. "SECTION 31. emergency. Any case of contumacy shall be dealt with in accordance with the provisions of Section 580 of the Revised Administrative Code. further. 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. 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. "SECTION 33. Deposits and Disbursements. educational. 1997: Provided. 1997 which will take effect on July 1. The hearing officer shall submit his findings and recommendations. (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. securities. make findings of fact and submit recommendations thereon. and Production of Records."SECTION 30. That the GSIS shall submit an annual report on all investments made to both Houses of Congress of the Philippines. the GSIS shall administer the optional insurance fund for the insurance coverage described in Section 26 hereof. correspondences. 626. to act as hearing officer to receive evidence. safety/security and yield in order to ensure the actuarial solvency of the funds of the GSIS: Provided. For this purpose. That investments shall satisfy the requirements of liquidity. (b) In interest-bearing deposits or securities in any domestic bank doing business in the Philippines: Provided. Funds. any decision or award of the Board shall be enforced and executed in the same manner as decisions of the Regional Trial Court. (c) in direct housing loans to members and group housing projects secured by first mortgage.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. by the Court of Appeals or by the Supreme Court. stock purchase plan and other similar loans: Provided. these shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank. writ or process after being required to do so. 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. In addition. "SECTION 35. shall. Settlement of Disputes. or official of the GSIS who is a lawyer. "SECTION 32. take depositions. 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. as amended. award. — All revenues collected and all accruals thereto shall be deposited. its members. 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. giving priority to the low income groups and in short-and-medium-term loans to members such as salary. — The GSIS shall have original and exclusive jurisdiction to settle any dispute arising under this Act and any other laws administered by the GSIS. Witnesses.

adopt. (c) to invest the funds of the GSIS. regulations. Implementing Body. in accordance with the provisions of this Act. 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. 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. in any manner recognized by law. is in favor of the GSIS. domestic or foreign. sums or monies corresponding to the benefits under this Act shall be exempt from attachment. . utilize or dispose of. calculations and valuations of the funds of the GSIS including such data needed in the computation of rates of disability. fees. re-adjust the benefits. or in bonds. (g) to sue and be sued. (i) In domestic mutual funds including investments related to the operations of mutual funds. (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. premium rates. all laws. (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. its officers and employees. The GSIS shall maintain appropriate books of accounts to record its assets. Records and Reports. real or personal property in the Philippines or elsewhere necessary to carry out the purposes of this Act. Exemption from Tax. and (j) In foreign mutual funds and in foreign currency deposits or foreign currency-denominated debts. 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. levy or other processes issued by the courts. perform and carry out contracts of every kind and description with any person. ADMINISTRATION "SECTION 40. mortality. or incurred relative to or in connection with his position or work except when his monetary liability. 186 shall implement the provisions of this Act. issuances. including his pecuniary accountability arising from or caused or occasioned by his exercise or performance of his official functions or duties. as well as the effective exercise of the powers and functions. superseded and rendered ineffective and without legal force and effect. "Moreover. firm or association or corporation. (b) to adopt or approve the annual and supplemental budget of receipts and expenditures including salaries and allowances of the GSIS personnel. revenues including all accruals thereto. Powers and Functions of the GSIS. assessments. "SECTION 38. 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. — The GSIS shall make a periodic actuarial examination and valuation of its funds in accordance with accepted actuarial principles. 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. (d) to acquire. notwithstanding and independently of the guaranty of the national government to secure such solvency or liability. — 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. contributions. execution. receipts and disbursements of funds and other financial transactions and operations. — The Government Service Insurance System as created under Commonwealth Act No. separation and retirement among the members and any other information useful for the adjustment of the benefits of the members. 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. "The funds and/or the properties referred to herein as well as the benefits. further. ordinances. directly or indirectly. That these instruments or assets are listed in bourses of the respective countries where these instruments or assets are issued: Provided. amend and/or rescind such rules and regulations as may be necessary to carry out the provisions and purposes of this Act. "SECTION 41. and the discharge of duties and responsibilities of the GSIS.(g) In loans to. income. Consequently. debentures. liabilities. expenses. notwithstanding any laws to the contrary. the GSIS. — The GSIS shall keep and cause to keep such records as may be necessary for the purpose of making actuarial studies. Examination and Valuation of the Funds. "G. quasi-judicial agencies or administrative bodies including Commission on Audit (COA) disallowances and from all financial obligations of the members. Legal Process and Lien. garnishment. Accordingly. shall be exempt from all taxes. (f) to have the power of succession. and benefits paid. its assets. interest rates or the allocation or re-allocation of the funds to the contingencies covered. — The GSIS shall exercise the following powers and functions: (a) to formulate. these exemptions shall not be affected by subsequent laws to the contrary unless this section is expressly. "SECTION 37. make. (h) to enter into. contractual or otherwise. "SECTION 39. opinions or jurisprudence contrary to or in derogation of this provision are hereby deemed repealed. charges or duties of all kinds. promissory notes or other evidence of indebtedness of any solvent corporation creat ed or existing under the laws of the Philippines. morbidity.

(p) to enter into agreement with the Social Security System or any other entity. Provided. and the enforcement of the provisions of this Act. fix and impose interest upon unpaid premiums due from employers and employees. Tenure and Compensation. finance. shall hold office for six (6) years without reappointment. to initiate or institute the necessary or proper actions or suits. The Board of Trustees. loan repayments. 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. 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 in the event of failure or refusal of the obligor or debtor to comply with the demand. investment. boards. civil or administrative or otherwise. and other monies due to the GSIS at such rates and under such conditions as it may adopt. (w) to ensure the collection or recovery of all indebtedness. corporation or partnership for the benefit of members transferring from one system to another subject to the provision of Republic Act No. not later than June 30. including unpaid premiums or contributions in favor of the GSIS arising from any cause or source whatsoever. (s) to maintain a provident fund. otherwise known as the Portability Law. (l) to invest.(i) to carry on any other lawful business whatsoever in pursuance of. whether natural or juridical. except the President and General Manager who shall cease as trustee upon his separation. but not to exceed Ten thousand pesos (P10. firm or entity. own or otherwise participate in equity in any establishment. The Board shall demand payment or settlement of the obligations referred to herein within thirty (30) days from the date the obligation becomes due. The members of the Board shall be entitled to a per diem of Two thousand five hundred pesos (P2. useful. 7699. whether public or private. The Trustees shall elect from among themselves a Chairman while the President and General Manager of the GSIS shall automatically be the vice-chairman.000) a month and reasonable transportation and representation allowances as may be fixed by the Board. 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. development of housing projects. and (y) to exercise such powers and perform such other acts as may be necessary. The Trustees. foreign or domestic. states and territories: Provided. (j) to have one or more offices in and outside of the Philippines. another two (2) shall represent the leading organizations or associations of government employees/retirees. 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. insurance coverage of government properties.000) membership. Vacancy. privatization or expansion of subsidiaries. shall be filled for the unexpired term only. (t) to approve and adopt guidelines affecting investments. for the payment of benefits to such officials and employees or their heirs under such terms and conditions as it may prescribe. due from all obligors. or until their successors are duly appointed and qualified. incidental or auxiliary to carry out the provisions of this Act. (m) to approve appointments in the GSIS except appointments to positions which are policy determining. (r) to submit annually. and one (1) recognized member of the legal profession who at the time of appointment is also a member of the GSIS. private or government. other than through the expiration of the term. settlement of claims. commissions. before the courts. (v) to determine. another four (4) from the banking. and insurance sectors. disposition of acquired assets. "SECTION 42. or to attain the purposes and objectives of this Act. to authorize the payment of extra remuneration to the officials and employees directly involved in the collection and/or remittance of contributions. 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. (u) any provision of law to the contrary notwithstanding. That the best interest of the GSIS shall be observed thereby. That the GSIS shall maintain a branch office in every province where there exists a minimum of fifteen thousand (15. 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). which consists of contributions made by both the GSIS and its officials and employees and their earnings. criminal. further. (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. enterprise. (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. The programs shall be so designed as to spur socio-economic take-off and maintain continued growth. . increased benefit and loan packages to members. liabilities and/or accountabilities. Its Composition. (k) to borrow funds from any source.500) for each board meeting actually attended by them. (n) to design and adopt an Early Retirement Incentive Plan (ERIP) and/or financial assistance for the purpose of retirement for its own personnel. or in connection with the provisions of this Act. tribunals. 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. — 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. (q) to be able to float proper instrument to liquefy long-term maturity by pooling funds for short-term secondary market. primarily confidential or highly technical in nature according to the Civil Service rules and regulations: Provided.

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

00) or by imprisonment of not less than six (6) years and one (1) day to twelve (12) years. "(i) For the charges or complaints referred to in paragraph (g) of this Section. To add value to. shall be punished by a fine of not less than Five thousand pesos (P5.000. upon conviction by final judgment. or both. shall suffer the penalties provided in Article 217 of the Revised Penal Code. and the personnel of such offices who are involved in the collection of premium contributions. or misrepresentation in any transaction with the GSIS whether for him or for some other persons.00). the GSIS may further develop/renovate the same either with its own capital or through a joint venture arrangement with private companies or individuals. No. — The GSIS shall have the right to develop and dispose of its acquired assets obtained in the ordinary course of its business.000. payable or deliverable to the GSIS and appropriates the same. or through abandonment or negligence. loan amortization and other accounts due the GSIS who shall fail. either under this Act or. suffer the penalties of imprisonment from six (6) months and one (1) day to six (6) years. hence. the above-mentioned officials and/or personnel may not invoke the defense of non- suability of the State. "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. the GSIS. turnover.00) nor more than Twenty thousand pesos (P20. misappropriate or use said fund or property by expressly consenting thereto. or permits another person to take. "(e) Any employee or member who receives or keeps fund or property belonging. without being entitled thereto with the intent to defraud any member. in whole or in part. who after deducting the monthly contribution or loan amortization from a member's compensation. Development and disposition of Acquired Assets. and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government. 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. or who fails or refuses or delays by more than thirty (30) days from the time such amount becomes due and demandable. PENAL PROVISIONS "SECTION 52. improve profitability on. upon conviction by final judgment.000.00) nor more than Twenty thousand pesos (P20. collusion. shall suffer the penalties provided for in Article 172 of the Revised Penal Code. including surcharges and interests.000. "(b) Whoever shall obtain or receive any money or check invoking any provision of this Act or any agreement thereunder.00) but not more than Six thousand pesos (P6.000. including government-owned or controlled corporations and government financial institutions. and/or enhance the marketability of an acquired asset.000.000. "Criminal actions arising from violations of the provisions of this Act may be commenced by the GSIS or by the aggrieved member.00) without prejudice to any civil or administrative liability which may also arise therefrom.00). at the discretion of the court. and a fine of not less than Three thousand pesos (P3. Instead. including the chairman and the vice-chairman. 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. or is otherwise guilty of the misappropriation of said fund or property. its political subdivisions. and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government. finance officer.000.000. "No injunction or restraining order issued by any court. 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. Penalty."(b) The GSIS shall discontinue the processing and adjudication of retirement claims under R. in appropriate cases. Government Assistance to the GSIS. the liabilities therein set forth shall be construed as waiver of the State of its immunity from suit. "L. For this purpose. branches. All notices of sale shall be published in newspapers of general circulation. or to deduct the monthly contributions of the employee shall. falsification. cashier.000. under the Revised Penal Code. "(j) Failure of the Members of the GSIS Board. commission. or any third party. "(d) The treasurer. — The GSIS may call upon any employer for such assistance as may be necessary in the discharge of its duties and functions.A. "(f) Any employee. No. impede or delay the sale and disposition by the GSIS of its acquired assets except on questions of ownership and national or public interest. "SECTION 51. any employer. "(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. . "SECTION 50.00) nor more than Twenty thousand pesos (P20. and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government. "(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. or takes or misappropriates or uses the same to any purpose other than that authorized by this Act. budget officer or other official or employee who fails to include in the annual budget the amount corresponding to the employer and employee contributions.00) nor more than Ten thousand pesos (P10. tribunal or office shall bar. the GSIS shall conduct an annual appraisal of its property or acquired assets to determine its current market value. — (a) Any person found to have participated directly or indirectly in the commission of fraud. disbursing officer. 910. The Board shall adopt the proper rules and procedures for the implementation of this provision. at the discretion of the court. agencies and instrumentalities. refuse or delay the payment. or by imprisonment of not less than six (6) years and one (1) day to twelve (12) years. 1616 except refund of ret irement premium and R. or both. all agencies concerned shall process and pay the gratuities of their employees. 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. and in addition shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government.A.00). to comply with the provisions of paragraph (w) of Section 41 hereof. "(g) The heads of the offices of the national government.

— Whenever other laws provide similar benefits for the same contingencies covered by this Act. the member who qualifies to the benefits shall have the option to choose which benefits will be paid to him. — 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. — Nothing in this Act shall be construed to repeal. . That the rights under existing laws. Non-impairment of Benefits. July 28. shall remain in force and effect. if the benefits provided by the law chosen are less than the benefits provided under this Act. Repealing Clause. 29 page 4360 on July 21. However. — 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. Vol. further. Jurisdiction. The Philippine Star. 1997. 1997 Published in Malaya. Powers. That subsequent to the effectivity of this Act. and the Manila Bulletin on June 9. Presidential Decrees and Letters of Instructions. 1997. amend or limit any provision of existing laws. Rights. — Should any provision of this Act or any part thereof be declared invalid."SECTION 53. Effectivity. 1997. Exclusiveness of Benefits. "SECTION 55. — 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. Privileges. 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. Philippine Daily Inquirer. — All laws and any other law or parts of law specifically inconsistent herewith are hereby repealed or modified accordingly: Provided. Approved: May 30. so far as they are separable from the invalid ones. "SECTION 54." SECTION 2. Appropriations. Separability Clause. the other provisions. not otherwise specifically inconsistent with the provisions of this Act. "SECTION 56. Functions and Activities. Implementing Rules and Regulations. SECTION 3. Published in the Official Gazette. 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. the GSIS shall pay only the difference. SECTION 4. 93 No.

SECTION 3. 1997. SECTION 4. Repealing Clause. 29 page 4360 on July 21. 1997. — Should any provision of this Act or any part thereof be declared invalid. shall remain in force and effect. 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. Separability Clause." SECTION 2. 1997. 1997 Published in Malaya. so far as they are separable from the invalid ones. July 28. — All laws and any other law or parts of law specifically inconsistent herewith are hereby repealed or modified accordingly: Provided. Published in the Official Gazette. Appropriations. and the Manila Bulletin on June 9. Approved: May 30. the other provisions. Philippine Daily Inquirer. further. That subsequent to the effectivity of this Act. — 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. Vol. The Philippine Star. . Effectivity. — 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. 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."SECTION 56. 93 No. That the rights under existing laws.