THE SOCIAL SECURITY ACT OF All employees not over 60 years

1997 of age
REPUBLIC ACT NO. 1161 All employers engaged in
business in the Philippines,
The Social Security Law was enacted including religious, charitable or
pursuant to the policy of the State to non-profit institutions
establish, develop and promote a Domestic helpers subject to the
sound and viable tax-exempt social Kasambahay Law
security system suitable to the needs
Aliens employed in the
of the people throughout the
Philippines
Philippines and provide meaningful
Self-employed persons,
protection to members. It is in full
accord with the constitutional including, but not limited to
provisions on the promotion of social following:
justice to insure the well-being and o Self-employed
economic security of all the people. professionals;
o Partners and single
The law provides employers to have 2 proprietors of businesses;
distinct obligations: o Actors, actresses,
To make a timely report of its directors, scriptwriters,
employees for coverage; and and news
To make timely remittance of correspondents;
o Professional athletes,
premiums
coaches, trainers, and
CONSTRUCTION OF THE SOCIAL jockeys; and
SECURITY LAW o Individual farmers and
The provisions of the law are to be fishermen
liberally construed in favor of those
seeking its benefits. I.B. EFFECTIVE DATE OF
COVERAGE
THE SOCIAL SECURITY SYSTEM a) Employers on the first day of
(SSS) operation
The SSS is the implementing arm of b) Employees on the first day of
the Social Security Act. It is a his employment
corporate body directed and controlled c) Self-employed upon his
by the Social Security Commission. registration with the SSS

I. COVERAGE I.C. VOLUNTARY COVERAGE

It used to be that, the coverage of the
Social Security Law is predicated on
the existence of an employer-
employee relationship. This is no
longer true because the policy now is
to encourage even the self-employed
to become SSS members.
I.A. COMPULSORY COVERAGE
Coverage in the SSS is compulsory
upon:
Spouses who devote full time to
managing the household and
family affairs
Filipinos recruited for overseas
employment by foreign-based
employers
NOTE: Securing an SSS number does
not automatically make a person an
SSS member.
A member of SSS cannot withdraw his
membership.

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I.D. EMPLOYEES NOT COVERED
Purely casual employees;
Employees serving on an alien
vessel, when such vessel is
outside of the Philippines;
Employees of the Philippine
Government or any of its
instrumentalities and agencies;
Employees of foreign
government, international
organization, and their wholly-
owned instrumentality;
Temporary employees,
excluded by regulation of the
Social Security Commission
(SSC)
II. BENEFITS
II.A. MATERNITY LEAVE BENEFIT
The maternity leave benefit is
equivalent to 100% of the average
daily salary credit
Procedure for availment:
a) The employee should notify her
employer of her pregnancy and
the probable date of her
childbirth which notice shall be
transmitted to the SSS;
b) The employer shall advance the
payment within 30 days from
the filing of the maternity leave
application; and
c) The SSS shall reimburse the
employed the amount paid
upon receipt of satisfactory
proof of such payment and
legality thereof
Note: It can be availed of only for the
first 4 deliveries or miscarriage. It
cannot be availed of simultaneously
with sickness benefit.
II.B. SICKNESS BENEFIT
Sickness benefit is not payment or
reimbursement for hospitalization,
medical treatment or medicine. Rather
they are daily cash allowances to help
carry through the employee and his
family during his confinement.
Sickness benefit is equivalent to 90%
of the average daily salary credit
payable for each day of compensable
confinement, begins on the first day of
sickness.
May be availed by an SSS member
who:
a) has paid at least 3 monthly
contributions in the 12-month
period immediately preceding
if
the semester of sickness
b) was confined for more than 3
days in a hospital or elsewhere
with the approval of the SSS;
and
c) has exhausted the company
sick leave with pay, if any
Procedure for availment
a) The employee should notify his
employer of the fact of his
sickness or injury within 5
calendar days after the start of
his confinement
b) The employer shall advance the
sickness allowances and pay
the employee every regular
payday
c) The SSS shall reimburse the
amount paid by the employer
upon satisfactory proof of
payment and legality thereof
II.C. PERMANENT TOTAL
DISABILITY BENEFITS
Permanent total disability means
disablement to do the same or similar
kind of work that the SSS member was
trained for and accustomed to perform
because of:
a) Complete loss of sight of both
eyes;
b) Loss of two limbs at or above
the ankle or wrists;
c) Permanent complete paralysis
of two limbs;
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 d) Brain injury resulting in
incurable imbecility ot insanity;
and
e) Such cases as determined and
approved by the SSS
Monthly Pension available if the
SSS member has paid at least 36
monthly contributions prior to the
semester of disability.
Lump sum benefit available if the
SSS members contribution is less than
36 monthly contributions.
Effects of death of a permanently
and totally disabled pensioner:
The primary beneficiaries as of
the date of the disability shall
be entitled to receive his
monthly pension
If he has no primary
beneficiaries and dies within
sixty (60) months from the start
of his monthly pension, the
secondary beneficiaries shall be
entitled to a lump sum benefit
II.D. Permanent Partial Disability
Benefits
Permanent partial disability is a
situation where the employee is
unable to continue with his former
work because of complete and
permanent loss of use of som
anatomical part of his body.
Percentage of the lump sum
benefit available if the permanent
partial disability occurs before 36
monthly contributions have been paid
prior to the semester of disability
Monthly pension available if the
permanent partial disability occurs
after 36 contributions
NOTE: Partial disability pension
ceases upon retirement or death.
II.E. RETIREMENT BENFITS
Retirement benefits under the Social
Security Act can be availed by the SSS
member if he has:
a) reached the age of 60 or the
compulsory retirement age of
65 years;
b) already retired from service or
ceased to be self-employed;
Monthly pensions for as long as
he lives available if the member has
paid at least 120 monthly
contributions prior to the semester of
his retirement
Lump sum benefit equal to the
total contributions paid by him
and on his behalf if the member
who retired at the age of 60 years old
has not paid at least 120 monthly
contributions prior to the semester of
his retirement
Effects if the retired member dies:
His primary beneficiaries as of
the date of his retirement shall
be entitled to receive the
monthly pension;
If he has no beneficiaries and he
dies within 60 months from the
start of his monthly pension, his
secondary beneficiary shall be
entitled to a lump sum benefit
equivalent to the total monthly
pensions corresponding to the
balance of the five-year
guaranteed period, excluding
the dependents pension.
II.F. DEATH BENEFITS
II.G. FUNERAL BENEFITS
Funeral benefit is granted to help
defray the cost of funeral expenses of
a member who dies, including death of
a permanently totally disabled
member or retiree. Funeral benefit is
Php 12,000.00 payable in cash or in
kind.
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 This is granted to dependents in case
III. BENEFICIARIES of death, permanent total disability or
retirement of an SSS member. The
III.A. PRIMARY BENEFICIARIES dependents pension is equivalent to
a) The dependent spouse, until he 10% of the monthly pension or Php
or she remarries; and 250.00.
b) The dependent legitimate,
legitimated or legally adopted,
and illegitimate children

NOTE: The existence of both

legitimate/legitimated/legally adopted
and illegitimate children entitles the
illegitimate children to 50% of the
share of the
legitimate/legitimated/legally adopted
children. In the absence of such, the
illegitimate children will be entitled to
100% of the benefits.

III.B. SECONDARY BENEFICIARIES

a) The dependent parents; or
b) Any other person designated by
the member as his secondary
beneficiary

III.C. DEPENDENTS
a) The legal spouse entitled by law
to receive support from the
member;
b) The legitimate, legitimated,
legally adopted, and illegitimate
child who:
i. is unmarried; and
ii. has not reached 21 years
of age; or
iii. if over 21 years of age,
he is genitally
incapacitated or while
still a minor has been
permanently
incapacitated and
incapable of self-support,
physically or mentally;
c) The parent who is receiving
regular support from the
member.

DEPENDENTS PENSION