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but not to exceed Fifteen thousand pesos (P15,000.

00) a
month: Provided , further, That said members of the
REPUBLIC ACT NO. 8282
Commission shall also receive reasonable transportation
and representation allowances as may be fixed by the
Commission, but not to exceed Ten thousand pesos
AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY (P10,000.00) a month.
SYSTEM THEREBY AMENDING FOR THIS PURPOSE,
REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE "(b) The general conduct of the operations and
KNOWN AS THE SOCIAL SECURITY LAW. management functions of the SSS shall be vested in the
SSS President who shall serve as the chief executive officer
immediately responsible for carrying out the program of
SECTION 1. Republic Act No. 1161, as amended, otherwise the SSS and the policies of the Commission. The SSS
known as the "Social Security Law", is hereby further President shall be a person who has had previous
amended to read as follows: experience in the technical and administrative fields
"SECTION 1. Short Title. - This Act shall be known as related to the purposes of this Act. He shall be appointed
the "Social Security Act of 1997." by the President of the Philippines and shall receive salary
to be fixed by the Commission with the approval of the
"SEC. 2. Declaration of Policy. - It is the policy of the President of the Philippines, payable from the funds of the
Republic of the Philippines to establish, develop, promote SSS.
and perfect a sound and viable tax-exempt social security
service suitable to the needs of the people throughout the "(c) The Commission, upon the recommendation of the
Philippines which shall promote social justice and provide SSS President, shall appoint an actuary, and such other
meaningful protection to members and their beneficiaries personnel as may be deemed necessary, fix their
against the hazards of disability, sickness, maternity, old reasonable compensation, allowances and other benefits,
age, death, and other contingencies resulting in loss of prescribe their duties and establish such methods and
income or financial burden. Towards this end, the State procedures as may be necessary to insure the efficient,
shall endeavor to extend social security protection to honest and economical administration of the provisions
workers and their beneficiaries. and purposes of this Act: Provided, however, That the
personnel of the SSS below the rank of Vice-President shall
"SEC. 3. Social Security System. - (a) To carry out the be appointed by the SSS President: Provided, further, That
purposes of this Act, the Social Security System, the personnel appointed by the SSS President, except
hereinafter referred to as ‘SSS’, a corporate body, with those below the rank of assistant manager, shall be
principal place of business in Metro Manila, Philippines is subject to the confirmation by the Commission: Provided,
hereby created. The SSS shall be directed and controlled further, That the personnel of the SSS shall be selected
by a Social Security Commission, hereinafter referred to only from civil service eligibles and be subject to civil
as ‘Commission’, composed of the Secretary of Labor and service rules and regulations: Provided, finally, That the
Employment or his duly designated undersecretary, the SSS shall be exempt from the provisions of Republic Act
SSS president and seven (7) appointive members, three (3) No. 6758 and Republic Act No. 7430.
of whom shall represent the workers’ group, at least one
of whom shall be a woman; three (3), the employers’ "SEC. 4. Powers and Duties of the Commission and SSS.
group, at least one (1) of whom shall be a woman; and one - (a) The Commission.- For the attainment of its main
(1), the general public whose representative shall have objectives as set forth in Section 2 hereof, the Commission
adequate knowledge and experience regarding social shall have the following powers and duties:
security, to be appointed by the President of the "(1) To adopt, amend and rescind, subject to the approval
Philippines. The six (6) members representing workers and of the President of the Philippines, such rules and
employers shall be chosen from among the nominees of regulations as may be necessary to carry out the
workers’ and employers’ organizations, respectively. The provisions and purposes of this Act;
Chairman of the Commission shall be designated by the
President of the Philippines from among its members. The "(2) To establish a provident fund for the members which
term of the appointive members shall be three (3) will consist of voluntary contributions of employers and/or
years: Provided, That the terms of the first six (6) employees, self-employed and voluntary members and
appointive members shall be one (1), two (2) and three (3) their earnings, for the payment of benefits to such
years for every two members, respectively: Provided, members or their beneficiaries, subject to such rules and
further, That they shall continue to hold office until their regulations as it may promulgate and approved by the
successors shall have been appointed and duly qualified. President of the Philippines;
All vacancies, prior to the expiration of the term, shall be
"(3) To maintain a provident fund which consists of
filled for the unexpired term only. The appointive
contributions made by both the SSS and its officials and
members of the Commission shall receive at least two
employees and their earnings, for the payment of benefits
thousand five hundred pesos (P2,500.00) per diem for
to such officials and employees or their heirs under such
each meeting actually attended by them but not to exceed
terms and conditions as it may prescribe;
Ten thousand pesos (P10,000.00) a month:: Provided,That
members of the Commission shall also receive a per diem "(4) To approve restructuring proposals for the payment of
of at least Two thousand five hundred pesos (P2,500.00) due but unremitted contributions and unpaid loan
amortizations under such terms and conditions as it may may be needed for the proper administration and
prescribe; development of the SSS;

"(5) To authorize cooperatives registered with the "(8) To acquire and dispose of property, real or personal,
cooperative development authority or associations which may be necessary or expedient for the attainment
registered with the appropriate government agency to act of the purposes of this Act;
as collecting agents of the SSS with respect to their
"(9) To acquire, receive, or hold, by way of purchase,
members: Provided,That the SSS shall accredit the
expropriation or otherwise, public or private property for
cooperative or association: Provided, further,That the
the purpose of undertaking housing projects preferably for
persons authorized to collect are bonded;
the benefit of low-income members and for the
"(6) To compromise or release, in whole or in part, any maintenance of hospitals and institutions for the sick, aged
interest, penalty or any civil liability to SSS in connection and disabled, as well as schools for the members and their
with the investments authorized under Section 26 hereof, immediate families;
under such terms and conditions as it may prescribe and
"(10) To sue and be sued in court; and
approved by the President of the Philippines; and
"(11) To perform such other corporate acts as it may deem
"(7) To approve, confirm, pass upon or review any and all
appropriate for the proper enforcement of this Act.
actions of the SSS in the proper and necessary exercise of
its powers and duties hereinafter enumerated. "SEC. 5. Settlement of Disputes. - (a) Any dispute arising
under this Act with respect to coverage, benefits,
"(b) The Social Security System. - Subject to the provision
contributions and penalties thereon or any other matter
of Section four (4), paragraph seven (7) hereof, the SSS
related thereto, shall be cognizable by the Commission,
shall have the following powers and duties:
and any case filed with respect thereto shall be heard by
"(1) To submit annually not later than April 30, a public the Commission, or any of its members, or by hearing
report to the President of the Philippines and to the officers duly authorized by the Commission and decided
Congress of the Philippines covering its activities in the within twenty (20) days after the submission of the
administration and enforcement of this Act during the evidence. The filing, determination and settlement of
preceding year including information and disputes shall be governed by the rules and regulations
recommendations on broad policies for the development promulgated by the Commission.
and perfection of the program of the SSS;
"(b) Appeal to Courts. - Any decision of the Commission, in
"(2) To require the actuary to submit a valuation report on the absence of an appeal therefrom as herein provided,
the SSS benefit program every four (4) years, or more shall become final and executory fifteen (15) days after the
frequently as may be necessary, to undertake the date of notification, and judicial review thereof shall be
necessary actuarial studies and calculations concerning permitted only after any party claiming to be aggrieved
increases in benefits taking into account inflation and the thereby has exhausted his remedies before the
financial stability of the SSS, and to provide for feasible Commission. The Commission shall be deemed to be a
increases in benefits every four (4) years, including the party to any judicial action involving any such decision, and
addition of new ones, under such rules and regulations as may be represented by an attorney employed by the
the Commission may adopt, subject to the approval of the Commission, or when requested by the Commission, by
President of the Philippines: Provided,That the actuarial the Solicitor General or any public prosecutors.
soundness of the reserve fund shall be
"(c) Court Review. - The decision of the Commission upon
guaranteed: Provided, further, That such increases in
any disputed matter may be reviewed both upon the law
benefits shall not require any increase in the rate of
and the facts by the Court of Appeals. For the purpose of
contribution;
such review, the procedure concerning appeals from the
"(3) To establish offices of the SSS to cover as many Regional Trial Court shall be followed as far as practicable
provinces, cities and congressional districts, whenever and and consistent with the purposes of this Act. Appeal from
wherever it may be expedient, necessary and feasible, and a decision of the Commission must be taken within fifteen
to inspect or cause to be inspected periodically such (15) days from notification of such decision. If the decision
offices; of the Commission involves only questions of law, the
same shall be reviewed by the Supreme Court. No appeal
"(4) To enter into agreements or contracts for such service
bond shall be required. The case shall be heard in a
and aid, as may be needed for the proper, efficient and
summary manner, and shall take precedence over all
stable administration of the SSS;
cases, except that in the Supreme Court, criminal cases
"(5) To adopt, from time to time, a budget of expenditures wherein life imprisonment or death has been imposed by
including salaries of personnel, against all funds available the trial court shall take precedence. No appeal shall act as
to the SSS under this Act; a supersedeas or a stay of the order of the Commission
unless the Commission itself, or the Court of Appeals or
"(6) To set up its accounting system and provide the the Supreme Court, shall so order.
necessary personnel therefor;
"(d) Execution of Decisions. - The Commission may, motu
"(7) To require reports, compilations and analyses of proprio or on motion of any interested party, issue a writ
statistical and economic data and to make investigation as
of execution to enforce any of its decisions or awards, "(1) The legal spouse entitled by law to receive support
after it has become final and executory, in the same from the member;
manner as the decision of the Regional Trial Court by
"(2) The legitimate, legitimated or legally adopted, and
directing the city or provincial sheriff or the sheriff whom
illegitimate child who is unmarried, not gainfully
it may appoint to enforce such final decision or execute
employed, and has not reached twenty-one (21) years of
such writ; and any person who shall fail or refuse to
age, or if over twenty-one (21) years of age, he is
comply with such decision, award or writ, after being
congenitally or while still a minor has been permanently
required to do so shall, upon application by the
incapacitated and incapable of self-support, physically or
Commission pursuant to Rule 71 of the Rules of Court, be
mentally; and
punished for contempt.
"(3) The parent who is receiving regular support from the
"SEC. 6. Auditor and Counsel. - (a) The Chairman of the
member.
Commission on Audit shall be the ex-officio Auditor of the
SSS. He or his representative shall check and audit all the "(f) Compensation - All actual remuneration for
accounts, funds and properties of the SSS in the same employment, including the mandated cost-of-living
manner and as frequently as the accounts, funds and allowance, as well as the cash value of any remuneration
properties of the government are checked and audited paid in any medium other than cash except that part of
under existing laws, and he shall have, as far as the remuneration in excess of the maximum salary credit
practicable, the same powers and duties as he has with as provided under Section Eighteen of this Act.
respect to the checking and auditing of public accounts,
funds and properties in general. "(g) Monthly salary credit - The compensation base for
contributions and benefits as indicated in the schedule in
"(b) The Secretary of Justice shall be the ex-officio counsel Section Eighteen of this Act.
of the SSS. He or his representative shall act as legal
adviser and counsel thereof. "(h) Monthly - The period from one end of the last payroll
period of the preceding month to the end of the last
"SEC. 7. Oaths, Witnesses, and Production of Records. - payroll period of the current month if compensation is on
When authorized by the Commission, an official or hourly, daily or weekly basis; if on any other
employee thereof shall have the power to administer oath basis, ‘monthly’ shall mean a period of one (1) month.
and affirmation, take depositions, certify to official acts,
and issue subpoena and subpoena duces tecum to compel "(i) Contribution - The amount paid to the SSS by and on
the attendance of witnesses and the production of books, behalf of the members in accordance with Section
papers, correspondence and other records deemed Eighteen of this Act.
necessary as evidence in connection with any question "(j) Employment - Any service performed by an employee
arising under this Act. Any case of contumacy shall be for his employer except:
dealt with by the Commission in accordance with law.
"(1) Employment purely casual and not for the purpose of
"SEC. 8. Terms Defined. - For purposes of this Act, the occupation or business of the employer;
following terms shall, unless the context indicates
otherwise, have the following meanings: "(2) Service performed on or in connection with an alien
vessel by an employee if he is employed when such vessel
"(a) SSS - The Social Security System created by this Act. is outside the Philippines;
"(b) Commission - The Social Security Commission as "(3) Service performed in the employ of the Philippine
herein created. Government or instrumentality or agency thereof;
"(c) Employer- Any person, natural or juridical, domestic or "(4) Service performed in the employ of a foreign
foreign, who carries on in the Philippines any trade, government or international organization, or their wholly-
business, industry, undertaking, or activity of any kind and owned instrumentality: Provided, however, That this
uses the services of another person who is under his exemption notwithstanding, any foreign government,
orders as regards the employment, except the international organization or their wholly-owned
Government and any of its political subdivisions, branches instrumentality employing workers in the Philippines or
or instrumentalities, including corporations owned or employing Filipinos outside of the Philippines, may enter
controlled by the Government: Provided, That a self- into an agreement with the Philippine Government for the
employed person shall be both employee and employer at inclusion of such employees in the SSS except those
the same time. already covered by their respective civil service retirement
"(d) Employee - Any person who performs services for an systems: Provided, further, That the terms of such
employer in which either or both mental or physical agreement shall conform with the provisions of this Act on
efforts are used and who receives compensation for such coverage and amount of payment of contributions and
services, where there is an employer-employee benefits: Provided, finally, That the provisions of this Act
relationship: Provided, That a self-employed person shall shall be supplementary to any such agreement; and
be both employee and employer at the same time. "(5) Such other services performed by temporary and
"(e) Dependents - The dependents shall be the following: other employees which may be excluded by regulation of
the Commission. Employees of bona fide independent
contractors shall not be deemed employees of the well as those workers enumerated in Section Nine-A
employer engaging the service of said contractors. hereof.

"(k) Beneficiaries - The dependent spouse until he or she "(t) Net earnings - Net income before income taxes plus
remarries, the dependent legitimate, legitimated or legally non-cash charges such as depreciation and depletion
adopted, and illegitimate children, who shall be the appearing in the regular financial statement of the issuing
primary beneficiaries of the member: Provided, That the or assuming institution.
dependent illegitimate children shall be entitled to fifty
"(u) Fixed charges - Recurring expense such as
percent (50%) of the share of the legitimate, legitimated or
amortization of debt discount or rentals for leased
legally adopted children: Provided, further, That in the
properties, including interest on funded and unfunded
absence of the dependent legitimate, legitimated children
debt.
of the member, his/her dependent illegitimate children
shall be entitled to one hundred percent (100%) of the "SEC. 9. Coverage. - (a) Coverage in the SSS shall be
benefits. In their absence, the dependent parents who compulsory upon all employees not over sixty (60) years of
shall be the secondary beneficiaries of the member. In the age and their employers: Provided, That in the case of
absence of all the foregoing, any other person designated domestic helpers, their monthly income shall not be less
by the member as his/her secondary beneficiary. than One thousand pesos (P1,000.00) a month: Provided,
further, That any benefit already earned by the employees
"(l) Contingency - The retirement, death, disability, injury
under private benefit plans existing at the time of the
or sickness and maternity of the member.
approval of this Act shall not be discontinued, reduced or
"(m) Average monthly salary credit - The result obtained otherwise impaired: Provided, further, That private plans
by dividing the sum of the last sixty (60) monthly salary which are existing and in force at the time of compulsory
credits immediately preceding the semester of coverage shall be integrated with the plan of the SSS in
contingency by sixty (60), or the result obtained by such a way where the employer’s contribution to his
dividing the sum of all the monthly salary credits paid prior private plan is more than that required of him in this Act,
to the semester of contingency by the number of monthly he shall pay to the SSS only the contribution required of
contributions paid in the same period, whichever is him and he shall continue his contribution to such private
greater:Provided, That the injury or sickness which caused plan less his contribution to the SSS so that the employer’s
the disability shall be deemed as the permanent disability total contribution to his benefit plan and to the SSS shall
for the purpose of computing the average monthly salary be the same as his contribution to his private benefit plan
credit. before the compulsory coverage: Provided, further, That
any changes, adjustments, modifications, eliminations or
"(n) Average daily salary credit- The result obtained by
improvements in the benefits to be available under the
dividing the sum of the six (6) highest monthly salary
remaining private plan, which may be necessary to adopt
credits in the twelve-month period immediately preceding
by reason of the reduced contributions thereto as a result
the semester of contingency by one hundred eighty (180).
of the integration, shall be subject to agreements between
"(o) Semester - A period of two (2) consecutive quarters the employers and employees concerned: Provided,
ending in the quarter of contingency. further, That the private benefit plan which the employer
shall continue for his employees shall remain under the
"(p) Quarter - A period of three (3) consecutive calendar employer’s management and control unless there is an
months ending on the last day of March, June, September existing agreement to the contrary: Provided, finally, That
and December. nothing in this Act shall be construed as a limitation on the
"(q) Credited years of service - For a member covered prior right of employers and employees to agree on and adopt
to January nineteen hundred and eighty five (1985) minus benefits which are over and above those provided under
the calendar year of coverage plus the number of calendar this Act.
years in which six (6) or more contributions have been "(b) Spouses who devote full time to managing the
paid from January nineteen hundred and eighty five (1985) household and family affairs, unless they are also engaged
up to the calendar year containing the semester prior to in other vocation or employment which is subject to
the contingency. For a member covered in or after January mandatory coverage, may be covered by the SSS on a
nineteen hundred and eighty five (1985), the number of voluntary basis.
calendar years in which six (6) or more contributions have
been paid from the year of coverage up to the calendar "(c) Filipinos recruited by foreign-based employers for
year containing the semester prior to the employment abroad may be covered by the SSS on a
contingency: Provided, That the Commission may provide voluntary basis.
for a different number of contributions in a calendar year
"SEC. 9-A. Compulsory Coverage of the Self-Employed. -
for it to be considered as a credited year of service.
Coverage in the SSS shall also be compulsory upon such
"(r) Member - The worker who is covered under Section self-employed persons as may be determined by the
Nine and Section Nine-A of this Act. Commission under such rules and regulations as it may
prescribe, including but not limited to the following:
"(s) Self-employed - Any person whose income is not
derived from employment, as defined under this Act, as "1. All self-employed professionals;
"2. Partners and single proprietors of businesses; pesos (P2,400.00) for those with twenty (20) credited
years of service.
"3. Actors and actresses, directors, scriptwriters and news
correspondents who do not fall within the definition of the "SEC. 12-A. Dependents’ Pension. - Where monthly
term "employee" in Section 8 (d) of this Act; pension is payable on account of death, permanent total
disability or retirement, dependents’ pension equivalent to
"4. Professional athletes, coaches, trainers and jockeys;
ten percent (10%) of the monthly pension or Two hundred
and
fifty pesos (P250.00), whichever is higher, shall also be
"5. Individual farmers and fishermen. paid for each dependent child conceived on or before the
date of the contingency but not exceeding five (5),
"Unless otherwise specified herein, all provisions of this beginning with the youngest and without
Act applicable to covered employees shall also be substitution: Provided, That where there are legitimate or
applicable to the covered self-employed persons. illegitimate children, the former shall be preferred.
"SEC. 10. Effective Date of Coverage. - Compulsory SEC. 12-B. Retirement Benefits. - (a) A member who has
coverage of the employer shall take effect on the first day paid at least one hundred twenty (120) monthly
of his operation and that of the employee on the day of his contributions prior to the semester of retirement and
employment: Provided, That the compulsory coverage of who: (1) has reached the age of sixty (60) years and is
the self-employed person shall take effect upon his already separated from employment or has ceased to be
registration with the SSS. self-employed; or (2) has reached the age of sixty-five (65)
"SEC. 11. Effect of Separation from Employment. - When years, shall be entitled for as long as he lives to the
an employee under compulsory coverage is separated monthly pension: Provided, That he shall have the option
from employment, his employer’s contribution on his to receive his first eighteen (18) monthly pensions in lump
account and his obligation to pay contributions arising sum discounted at a preferential rate of interest to be
from that employment shall cease at the end of the month determined by the SSS.
of separation, but said employee shall be credited with all "(b) A covered member who is sixty (60) years old at
contributions paid on his behalf and entitled to benefits retirement and who does not qualify for pension benefits
according to the provisions of this Act. He may, however, under paragraph (a) above, shall be entitled to a lump sum
continue to pay the total contributions to maintain his benefit equal to the total contributions paid by him and on
right to full benefit. his behalf: Provided, That he is separated from
"SEC. 11-A. Effect of Interruption of Business or employment and is not continuing payment of
Professional Income. - If the self-employed realizes no contributions to the SSS on his own.
income in any given month, he shall not be required to pay "(c) The monthly pension shall be suspended upon the
contributions for that month. He may, however, be reemployment or resumption of self-employment of a
allowed to continue paying contributions under the same retired member who is less than sixty-five (65) years old.
rules and regulations applicable to a separated employee He shall again be subject to Section Eighteen and his
member: Provided, That no retroactive payment of employer to Section Nineteen of this Act.
contributions shall be allowed other than as prescribed
under Section Twenty-two-A hereof. "(d) Upon the death of the retired member, his primary
beneficiaries as of the date of his retirement shall be
"SEC. 12. Monthly Pension. - (a) The monthly pension shall entitled to receive the monthly pension: Provided, That if
be the highest of the following amounts: he has no primary beneficiaries and he dies within sixty
"(1) The sum of the following: (60) months from the start of his monthly pension, his
secondary beneficiaries shall be entitled to a lump sum
"(i) Three hundred pesos (P300.00; plus benefit equivalent to the total monthly pensions
corresponding to the balance of the five-year guaranteed
"(ii) Twenty percent (20%) of the average monthly salary
period, excluding the dependents’ pension.
credit; plus
"(e) The monthly pension of a member who retires after
"(iii) Two percent (2%) of the average monthly salary credit
reaching age sixty (60) shall be the higher of either: (1) the
for each credited year of service in excess of ten (10)
monthly pension computed at the earliest time he could
years; or
have retired had he been separated from employment or
"(2) Forth percent (40%) of the average monthly salary ceased to be self-employed plus all adjustments thereto;
credit; or or (2) the monthly pension computed at the time when he
actually retires.
"(3) One thousand pesos (P1,000.00): Provided, That the
monthly pension shall in no case be paid for an aggregate "SEC. 13. Death Benefits. - Upon the death of a member
amount of less than sixty (60) months. who has paid at least thirty-six (36) monthly contributions
prior to the semester of death, his primary beneficiaries
"(b) Notwithstanding the preceding paragraph, the shall be entitled to the monthly pension: Provided, That if
minimum pension shall be One thousand two hundred he has no primary beneficiaries, his secondary
pesos (P1,200.00) for members with at least ten (10) beneficiaries shall be entitled to a lump sum benefit
credited years of service and Two thousand four hundred equivalent to thirty-six (36) times the monthly pension. If
he has not paid the required thirty-six (36) monthly payable not longer than the period designated in the
contributions, his primary or secondary beneficiaries shall following schedule:
be entitled to a lump sum benefit equivalent to the
COMPLETE
monthly pension times the number of monthly
AND PERMANENT NUMBER OF
contributions paid to the SSS or twelve (12) times the
LOSS OF USE OF MONTHS
monthly pension, whichever is higher.
One thumb 10
"SEC. 13-A. Permanent Disability Benefits. - (a) Upon the
One index finger 8
permanent total disability of a member who has paid at
One middle finger 6
least thirty-six (36) monthly contributions prior to the
One ring finger 5
semester of disability, he shall be entitled to the monthly
One little finger 3
pension: Provided, That if he has not paid the required
One big toe 6
thirty-six (36) monthly contributions, he shall be entitled
One hand 39
to a lump sum benefit equivalent to the monthly pension
One arm 50
times the number of monthly contributions paid to the SSS
One foot 31
or twelve (12) times the monthly pension, whichever is
One leg 46
higher. A member who (1) has received a lump sum
One ear 10
benefit; and (2) is reemployed or has resumed self-
Both ears 20
employment not earlier than one (1) year from the date of
Hearing of one ear 10
his disability shall again be subject to compulsory coverage
Hearing of both ears 50
and shall be considered a new member.
Sight of one eye 25
"(b) The monthly pension and dependents’ pension shall
"(g) The percentage degree of disability which is
be suspended upon the reemployment or resumption of
equivalent to the ratio that the designated number of
self-employment or the recovery of the disabled member
months of compensability bears to seventy-five (75),
from his permanent total disability or his failure to present
rounded to the next higher integer, shall not be additive
himself for examination at least once a year upon notice
for distinct, separate and unrelated permanent partial
by the SSS.
disabilities, but shall be additive for deteriorating and
"(c) Upon the death of the permanent total disability related permanent partial disabilities to a maximum of one
pensioner, his primary beneficiaries as of the date of hundred percent (100%), in which case, the member shall
disability shall be entitled to receive the monthly be deemed as permanently totally disabled.
pension: Provided, That if he has no primary beneficiaries
"(h) In case of permanent partial disability, the monthly
and he dies within sixty (60) months from the start of his
pension benefit shall be given in lump sum if it is payable
monthly pension, his secondary beneficiaries shall be
for less than twelve (12) months.
entitled to a lump sum benefit equivalent to the total
monthly pensions corresponding to the balance of the "(i) For the purpose of adjudicating retirement, death and
five-year guaranteed period excluding the dependents’ permanent total disability pension benefits, contributions
pension. shall be deemed paid for the months during which the
member received partial disability pension: Provided, That
"(d) The following disabilities shall be deemed permanent
such contributions shall be based on his last contribution
total:
prior to his disability.
"1. Complete loss of sight of both eyes;
"(j) Should a member who is on partial disability pension
"2. Loss of two limbs at or above the ankle or wrists; retire or die, his disability pension shall cease upon his
retirement or death.
"3. Permanent complete paralysis of two limbs;
"SEC. 13-B. Funeral Benefit. - A funeral grant equivalent to
"4. Brain injury resulting to incurable imbecility or insanity;
Twelve thousand pesos (P12,000.00) shall be paid, in cash
and
or in kind, to help defray the cost of funeral expenses upon
"5. Such cases as determined and approved by the SSS. the death of a member, including permanently totally
disabled member or retiree.
"(e) If the disability is permanent partial, and such
disability occurs before thirty-six (36) monthly "SEC. 14. Sickness Benefit. - (a) A member who has paid at
contributions have been paid prior to the semester of least three (3) monthly contributions in the twelve-month
disability, the benefit shall be such percentage of the lump period immediately preceding the semester of sickness or
sum benefit described in the preceding paragraph with injury and is confined therefor for more than three (3)
due regard to the degree of disability as the Commission days in a hospital or elsewhere with the approval of the
may determine. SSS, shall, for each day of compensable confinement or a
fraction thereof, be paid by his employer, or the SSS, if
"(f) If the disability is permanent total and such disability such person is unemployed or self-employed, a daily
occurs after thirty-six (36) monthly contributions have sickness benefit equivalent to ninety percent (90%) of his
been paid prior to the semester of disability, the benefit average daily salary credit, subject to the following
shall be the monthly pension for permanent total disability conditions:
"(1) In no case shall the daily sickness benefit be paid employer shall have no right to recover the corresponding
longer than one hundred twenty (120) days in one (1) daily allowance he advanced to the employee member as
calendar year, nor shall any unused portion of the one required in this section.
hundred twenty (120) days of sickness benefit granted
"(e)The claim of reimbursement shall be adjudicated by
under this section be carried forward and added to the
the SSS within a period of two (2) months from receipt
total number of compensable days allowable in the
thereof: Provided, That should no payment be received by
subsequent year;
the employer within one (1) month after the period
"(2) The daily sickness benefit shall not be paid for more prescribed herein for adjudication, the reimbursement
than two hundred forty (240) days on account of the same shall thereafter earn simple interest of one percent (1%)
confinement; and per month until paid.

"(3) The employee member shall notify his employer of the "(f) The provisions regarding the notification required of
fact of his sickness or injury within five (5) calendar days the member and the employer as well as the period within
after the start of his confinement unless such confinement which the claim for benefit or reimbursement may be filed
is in a hospital or the employee became sick or was injured shall apply to all claims filed with the SSS.
while working or within the premises of the employer in
"SEC. 14-A. Maternity Leave Benefit. - A female member
which case, notification to the employer is
who has paid at least three (3) monthly contributions in
necessary: Provided, That if the member is unemployed or
the twelve-month period immediately preceding the
self-employed, he shall directly notify the SSS of his
semester of her childbirth or miscarriage shall be paid a
confinement within five (5) calendar days after the start
daily maternity benefit equivalent to one hundred percent
thereof unless such confinement is in a hospital in which
(100%) of her average daily salary credit for sixty (60) days
case notification is also not necessary: Provided,
or seventy-eight (78) days in case of caesarian delivery,
further, That in cases where notification is necessary, the
subject to the following conditions:
confinement shall be deemed to have started not earlier
than the fifth day immediately preceding the date of "(a) That the employee shall have notified her employer of
notification. her pregnancy and the probable date of her childbirth,
which notice shall be transmitted to the SSS in accordance
"(b) The compensable confinement shall begin on the first
with the rules and regulations it may provide;
day of sickness, and the payment of such allowances shall
be promptly made by the employer every regular payday "(b) The full payment shall be advanced by the employer
or on the fifteenth and last day of each month, and within thirty (30) days from the filing of the maternity
similarly in the case of direct payment by the SSS, for as leave application;
long as such allowances are due and
payable: Provided, That such allowance shall begin only "(c) That payment of daily maternity benefits shall be a bar
after all sick leaves of absence with full pay to the credit of to the recovery of sickness benefits provided by this Act
the employee member shall have been exhausted. for the same period for which daily maternity benefits
have been received;
"(c) One hundred percent (100%) of the daily benefits
provided in the preceding paragraph shall be reimbursed "(d) That the maternity benefits provided under this
by the SSS to said employer upon receipt of satisfactory section shall be paid only for the first four (4) deliveries or
proof of such payment and legality thereof: Provided, That miscarriages;
the employer has notified the SSS of the confinement "(e) That the SSS shall immediately reimburse the
within five (5) calendar days after receipt of the employer of one hundred percent (100%) of the amount of
notification from the employee member: Provided, maternity benefits advanced to the employee by the
further, That if the notification to the SSS is made by the employer upon receipt of satisfactory proof of such
employer beyond five (5) calendar days after receipt of the payment and legality thereof; and
notification from the employee member, said employer
shall be reimbursed only for each day of confinement "(f) That if an employee member should give birth or
starting from the tenth calendar day immediately suffer miscarriage without the required contributions
preceding the date of notification to the SSS: Provided, having been remitted for her by her employer to the SSS,
finally, That the SSS shall reimburse the employer or pay or without the latter having been previously notified by
the unemployed member only for confinement within the the employer of the time of the pregnancy, the employer
one-year period immediately preceding the date the claim shall pay to the SSS damages equivalent to the benefits
for benefit or reimbursement is received by the SSS, which said employee member would otherwise have been
except confinement in a hospital in which case the claim entitled to.
for benefit or reimbursement must be filed within one (1)
"SEC. 15. Non-Transferability of Benefits. - The SSS shall
year from the last day of confinement.
promptly pay the benefits provided in this Act to such
"(d) Where the employee member has given the required persons as may be entitled thereto in accordance with the
notification but the employer fails to notify the SSS of the provisions of this Act: Provided, That the SSS shall pay the
confinement or to file the claim for reimbursement within retirement benefits on the day of contingency to qualified
the period prescribed in this section resulting in the members who have submitted the necessary documents
reduction of the benefit or denial of the claim, such at least six (6) months before: Provided, further, That the
beneficiary who is a national of a foreign country which (P500.00) nor more than Five thousand pesos (P5,000.00),
does not extend benefits to a Filipino beneficiary residing or imprisonment for not less than six (6) months nor more
in the Philippines, or which is not recognized by the than one (1) year, or both, at the discretion of the court.
Philippines, shall not be entitled to receive any benefit
"SEC. 18. Employee’s Contributions. - (a) Beginning as of
under this Act: Provided, further, That notwithstanding the
the last day of the calendar month when an employee’s
foregoing, where the best interest of the SSS will be
compulsory coverage takes effect and every month
served, the Commission may direct payments without
thereafter during his employment, the employer shall
regard to nationality or country of residence: Provided,
deduct and withhold from such employee’s monthly
further, That if the recipient is a minor or a person
salary, wage, compensation or earnings, the employee’s
incapable of administering his own affairs, the Commission
contribution in an amount corresponding to his salary,
shall appoint a representative under such terms and
wage, compensation or earnings during the month in
conditions as it may deem proper: Provided, further, That
accordance with the following schedule:
such appointment shall not be necessary in case the
recipient is under the custody of or living with the parents SALARY RANGE OF MONTHLY MONTHLY
or spouse of the member in which case the benefits shall CONTRIBUTION
be paid to such parents or spouse, as representative payee BRACKET COMPENSATION SALARY
of the recipient. Such benefits are not transferable and no CREDIT EMPLOYER EMPLOYEE TOTAL
power of attorney or other document executed by those
entitled thereto in favor of any agent, attorney or any I 1,000.00 -
other person for the collection thereof on their behalf 1,249.99 1000 50.70 33.30 84.00
shall be recognized, except when they are physically II 1,250.00 -
unable to collect personally such benefits:Provided, 1,749.99 1500 76.00 50.00 126.00
further, That in case of death benefits, if no beneficiary III 1,750.00 -
qualifies under this Act, said benefits shall be paid to the 2,249.99 2000 101.30 66.70 168.00
legal heirs in accordance with the law of succession. IV 2,250.00 -
2,749.99 2500 126.70 83.30 210.00
"SEC. 16. Exemption from Tax, Legal Process and Lien. -- All V 2,750.00 -
laws to the contrary notwithstanding, the SSS and all its 3,249.99 3000 152.00 100.00 252.00
assets and properties, all contributions collected and all VI 3,250.00 -
accruals thereto and income or investment earnings 3,749.99 3500 177.30 116.70 294.00
therefrom as well as all supplies, equipment, papers or VII 3,750.00 -
documents shall be exempt from any tax, assessment, fee, 4,249.99 4000 202.70 133.30 336.00
charge, or customs or import duty; and all benefit VIII 4,250.00 -
payments made by the SSS shall likewise be exempt from 4,749.99 4500 228.00 150.00 378.00
all kinds of taxes, fees or charges, and shall not liable to IX 4,750.00 -
attachments, garnishments, levy or seizure by or under 5,249.99 5000 253.30 166.70 420.00
any legal or equitable process whatsoever, either before X 5,250.00 -
or after receipt by the person or persons entitled thereto, 5,749.99 5500 278.70 183.70 462.40
except to pay any debt of the member to the SSS. No tax XI 5,750.00 -
measure of whatever nature enacted shall apply to the 6,249.99 6000 304.00 200.00 504.00
SSS, unless it expressly revokes the declared policy of the XII 6,250.00 -
State in Section 2 hereof granting tax-exemption to the 6,749.99 6500 329.30 216.78 546.00
SSS. Any tax assessment imposed against the SSS shall be XIII 6,750.00 -
null and void. (As amended by Sec. 9, P. D. No. 24, S. 1972; 7,249.99 7000 354.70 233.30 588.00
and Sec. 14, P. D. No. 735, S. 1975). XIV 7,250.00 -
7,749.99 7500 380.00 250.00 630.00
"SEC. 17. Fee of Agents, Attorneys, Etc. - No agent,
XV 7,750.00 -
attorney or other person in charge of the preparation,
8.249.99 8000 403.30 266.70 672.00
filing or pursuing any claim for benefit under this Act shall
XVI 8,250.00 -
demand or charge for his services any fee, and any
8,749.99 8500 430.70 283.30 714.00
stipulation to the contrary shall be null and void. The
XVII 8,750.00 -
retention or deduction of any amount from any benefit
OVER 9000 456.00 300.00 756.00
granted under this Act for the payment of fees for such
services is prohibited: Provided, however, That any "The foregoing schedule of contribution shall also apply to
member of the Philippine Bar who appears as counsel in self-employed and voluntary members.
any case heard by the Commission shall be entitled to
attorneys’ fees not exceeding ten percent (10%) of the "The maximum monthly salary credit shall be Nine
benefits awarded by the Commission, which fees shall not thousand pesos (P9,000.00) effective January Nineteen
be payable before the actual payment of the benefits, and hundred and ninety six (1996); Provided, That it shall be
any stipulation to the contrary shall be null and void. increased by One thousand pesos (P1,000.00) every year
thereafter until it shall have reached Twelve thousand
"Any violation of the provisions of this Section shall be pesos (P12,000.00) by Nineteen hundred and ninety nine
punished by a fine of not less than Five hundred pesos (1999): Provided, further, That the minimum and
maximum monthly salary credits as well as the rate of remitted to the SSS within the first ten (10) days of each
contributions may be fixed from time to time by the calendar month following the month for which they are
Commission through rules and regulations taking into applicable or within such time as the Commission may
consideration actuarial calculations and rate of benefits, prescribe. Every employer required to deduct and to remit
subject to the approval of the President of the Philippines. such contributions shall be liable for their payment and if
any contribution is not paid to the SSS as herein
"SEC. 19. Employer’s Contributions. - (a) Beginning as of
prescribed, he shall pay besides the contribution a penalty
the last day of the month when an employee’s compulsory
thereon of three percent (3%) per month from the date
coverage takes effect and every month thereafter during
the contribution falls due until paid. If deemed expedient
his employment, his employer shall pay, with respect to
and advisable by the Commission, the collection and
such covered employee, the employer’s contribution in
remittance of contributions shall be made quarterly or
accordance with the schedule indicated in Section
semi-annually in advance, the contributions payable by the
Eighteen of this Act. Notwithstanding any contract to the
employees to be advanced by their respective
contrary, an employer shall not deduct, directly or
employers: Provided, That upon separation of an
indirectly, from the compensation of his employees
employee, any contribution so paid in advance but not due
covered by the SSS or otherwise recover from them the
shall be credited or refunded to his employer.
employer’s contributions with respect to such employees.
"(b) The contributions payable under this Act in cases
"(b) The remittance of such contributions by the employer
where an employer refuses or neglects to pay the same
shall be supported by a quarterly collection list to be
shall be collected by the SSS in the same manner as taxes
submitted to the SSS at the end of each calendar quarter
are made collectible under the National Internal Revenue
indicating the correct ID number of the employer, the
Code, as amended. Failure or refusal of the employer to
correct names and the SSS numbers of the employees and
pay or remit the contributions herein prescribed shall not
the total contributions paid for their account during the
prejudice the right of the covered employee to the
quarter.
benefits of the coverage.
"SEC. 19-A. Contributions of the Self-Employed Member. -
"The right to institute the necessary action against the
The contributions to the SSS of the self-employed member
employer may be commenced within twenty (20) years
shall be determined in accordance with Section Eighteen
from the time the delinquency is known or the assessment
of this Act: Provided, That the monthly earnings declared
is made by the SSS, or from the time the benefit accrues,
by the self-employed member at the time of his
as the case may be.
registration with the SSS shall be considered as his
monthly compensation and he shall pay both the employer "(c) Should any person, natural or juridical, default in any
and the employee contributions: Provided, further, That payment of contributions, the Commission may also
the contributions of self-employed persons earning One collect the same in either of the following ways:
thousand pesos (P1,000.00) monthly or below may be
"1. By an action in court, which shall hear and dispose of
reduced by the Commission.
the case in preference to any other civil action; or
"The monthly earnings declared by the self-employed
"2. By issuing a warrant to the Sheriff of any province or
member at the time of his registration shall remain the
city commanding him to levy upon and sell any real and
basis of his monthly salary credit, unless he makes another
personal property of the debtor. The Sheriff’s sale by
declaration of his monthly earnings, in which case such
virtue of said warrant shall be governed by the same
latest declaration becomes the new basis of his monthly
procedure prescribed for executions against property
salary credit.
upon judgments by a court of record.
"SEC. 20. Government Contribution. - As the contribution
"(d) The last complete record of monthly contributions
of the Government to the operation of the SSS, Congress
paid by the employer or the average of the monthly
shall annually appropriate out of any funds in the National
contributions paid during the past three (3) years as of the
Treasury not otherwise appropriated, the necessary sum
date of filing of the action for collection shall be presumed
or sums to meet the estimated expenses of the SSS for
to be the monthly contributions payable by and due from
each ensuing year. In addition to this contribution,
the employer to the SSS for each of the unpaid month,
Congress shall appropriate from time to time such sum or
unless contradicted and overcome by other
sums as may be needed to assure the maintenance of an
evidence: Provided, That the SSS shall not be barred from
adequate working balance of the funds of the SSS as
determining and collecting the true and correct
disclosed by suitable periodic actuarial studies to be made
contributions due the SSS even after full payment
of the operations of the SSS.
pursuant to this paragraph, nor shall the employer be
"SEC. 21. Government Guarantee. -- The benefits relieved of his liability under Section Twenty-eight of this
prescribed in this Act shall not be diminished and to Act.
guarantee said benefits the Government of the Republic of
"SEC. 22-A. Remittance of Contributions of Self-Employed
the Philippines accepts general responsibility for the
Member. - Self-employed members shall remit their
solvency of the SSS.
monthly contributions quarterly on such dates and
"SEC. 22. Remittance of Contributions. -- (a) The schedules as the Commission may specify through rules
contributions imposed in the preceding Section shall be and regulations: Provided, That no retroactive payment of
contributions shall be allowed, except as provided in this by the Court, shall not be divulged without the consent of
Section. the SSS President or any official of the SSS duly authorized
by him, shall be presumed correct as to the data and other
"SEC. 23. Method of Collection and Payment. - The SSS
matters stated therein, unless the necessary corrections to
shall require a complete and proper collection and
such records and reports have been properly made by the
payment of contributions and proper identification of the
parties concerned before the right to the benefit being
employer and the employee. Payment may be made in
claimed accrues, and shall be made the basis for the
cash, checks, stamps, coupons, tickets, or other
adjudication of the claim. If as a result of such adjudication
reasonable devices that the Commission may adopt.
the SSS in good faith pays a monthly pension to a
"SEC. 24. Employment Records and Reports. - (a) Each beneficiary who is inferior in right to another beneficiary
employer shall immediately report to the SSS the names, or with whom another beneficiary is entitled to share,
ages, civil status, occupations, salaries and dependents of such payments shall discharge the SSS from liability unless
all his employees who are subject to compulsory and until such other beneficiary notifies the SSS of his
coverage: Provided, That if an employee subject to claim prior to the payments.
compulsory coverage should die or become sick or
"(d) Every employer shall keep true and accurate work
disabled or reach the age of sixty (60) without the SSS
records for such period and containing such information as
having previously received any report or written
the Commission may prescribe, in addition to an "Annual
communication about him from his employer, the said
Register of New and Separated Employees" which shall be
employer shall pay to the SSS damages equivalent to the
secured from the SSS wherein the employer shall enter on
benefits to which said employee member would have
the first day of employment or on the effective date of
been entitled had his name been reported on time by the
separation, the names of the persons employed or
employer to the SSS, except that in case of pension
separated from employment, their SSS numbers, and such
benefits, the employer shall be liable to pay the SSS
other data that the Commission may require and said
damages equivalent to the accumulated pension due as of
annual register shall be submitted to the SSS in the month
the date of settlement of the claim or to the five (5) years’
of January of each year. Such records shall be open for
pension, including dependents’ pension: Provided,
inspection by the SSS or its authorized representatives
further, That if the contingency occurs within thirty (30)
quarterly or as often as the SSS may require.
days from the date of employment, the employer shall be
relieved of his liability for damages: Provided, further, That "The SSS may also require each employer to submit, with
any person or entity engaging the services of an respect to the persons in his employ, reports needed for
independent contractor shall be subsidiarily liable with the effective administration of this Act.
such contractor for any civil liability incurred by the latter
"(e) Each employer shall require, as a condition to
under this Act: Provided, finally, That the same person or
employment, the presentation of a registration number
entity engaging the services of an independent contractor
secured by the prospective employee from the SSS in
shall require such contractor to post a surety bond to
accordance with such procedure as the SSS may
guarantee the payment of the worker’s benefits.
adopt: Provided, That in case of employees who have been
"(b) Should the employer misrepresent the true date of assigned registration numbers by virtue of a previous
employment of the employee member or remit to the SSS employment, such numbers originally assigned to them
contributions which are less than those required in this Act should be used for purposes of this Section: Provided,
or fail to remit any contribution due prior to the date of further, That the issuance of such registration numbers by
contingency, resulting in a reduction of benefits, the the SSS shall not exempt the employer from complying
employer shall pay to the SSS damages equivalent to the with the provisions of paragraph (a) of this Section.
difference between the amount of benefit to which the
"(f) Notwithstanding any law to the contrary, microfilm, or
employee member or his beneficiary is entitled had the
non-erasable optical disk and other similar archival media
proper contributions been remitted to the SSS and the
copies of original SSS records and reports, duly certified by
amount payable on the basis of contributions actually
the official custodian thereof, shall have the same
remitted: Provided, That if the employee member or his
evidentiary value as the originals and be admissible as
beneficiary is entitled to pension benefits, damages shall
evidence in all legal proceedings.
be equivalent to the accumulated pension due as of the
date of settlement of the claim or to the five (5) years’ "(g) Notwithstanding any law to the contrary, local
pension, whichever is higher, including dependents’ government units shall, prior to issuing any annual
pension. business license or permit, require submission of
certificate of SSS coverage and compliance with the
"In addition to the liability mentioned in the preceding
provisions of this Act: Provided, That the certification or
paragraphs (a) and (b) hereof, the employer shall also be
clearance shall be issued by the SSS within five (5) working
liable for the corresponding unremitted contributions and
days from receipt of the request.
penalties thereon.
"SEC. 24-A. Report and Registration of the Self-Employed
"(c) The records and reports duly accomplished and
Member. - Each covered self-employed person shall,
submitted to the SSS by the employer or the member, as
within thirty (30) days from the first day he started the
the case may be, shall be kept confidential by the SSS
practice of his profession or business operations register
except in compliance with a subpoena duces tecum issued
and report to the SSS his name, age, civil status, and
occupation, average monthly net income and his "(d) In bonds, securities, promissory notes or other
dependents. evidence of indebtedness of any bank doing business in
the Philippines and in good standing with the Bangko
"SEC. 25. Deposits and Disbursements. - All money paid to
Sentral ng Pilipinas to finance loans to private corporations
or collected by the SSS every year under this Act, and all
doing business in the Philippines, including schools,
accruals thereto shall be deposited, administered and
hospitals, small-and-medium scale industries, cooperatives
disbursed in the same manner and under the same
and non-governmental organizations, in which case the
conditions and requirements as provided by law for other
collaterals or securities shall be assigned to the SSS under
public special funds: Provided, That not more than twelve
such terms and conditions as the Commission may
percent (12%) of the total yearly contributions plus three
prescribe: Provided, That in the case of bank deposits, they
percent (3%) of other revenues shall be disbursed for
shall not exceed at any time the unimpaired capital and
operational expenses such as salaries and wages, supplies
surplus or total private deposits of the depository bank,
and materials, depreciation and the maintenance of
whichever is smaller: Provided, further, That said bank
offices of the SSS: Provided, further, That if the expenses
shall first have been designated as a depository for this
in any year are less than the maximum amount
purpose by the Monetary Board of the Bangko Sentral ng
permissible, the difference shall not be availed of as
Pilipinas: Provided, finally, That such investments shall not
additional expenses in the following years.
exceed forty percent (40%) of the Investment Reserve
"SEC. 26. Investment of Reserve Funds. - All revenues of Fund;
the SSS that are not needed to meet the current
"(e) In bonds, securities, promissory notes or other
administrative and operational expenses incidental to the
evidence of indebtedness of shelter agencies of the
carrying out of this Act shall be accumulated in a fund to
National Government or financial intermediaries to
be known as the "Reserve Fund." Such portions of the
finance housing loans of members; and in long-term direct
Reserve Fund as are not needed to meet the current
individual or group housing loans giving priority to the low-
benefit obligations thereof shall be known as
income groups, up to a maximum of ninety percent (90%)
the "Investment Reserve Fund" which the Commission
of the appraised value of the properties to be mortgaged
shall manage and invest with the skill, care, prudence and
by the borrowers; and
diligence necessary under the circumstances then
prevailing that a prudent man acting in like capacity and "In short and medium term loans to members such as
familiar with such matters would exercise in the conduct salary, educational, livelihood, marital, calamity and
of an enterprise of a like character and with similar aims. emergency loans: Provided, That not more than thirty five
Pursuant thereto, and in line with the basic principles of percent (35%) of the Investment Reserve Fund at any time
safety, good yield and liquidity, the Commission shall shall be invested for housing purposes: Provided,
invest the funds to earn an annual income not less than further, That not more than ten percent (10%) of the
the average rates of treasury bills or any other acceptable Investment Reserve Fund shall be invested in short and
market yield indicator in any or in all of the following: medium term loans;

"(a) In bonds, securities, promissory notes or other "(f) In bonds, securities, promissory notes or other
evidence of indebtedness of the Government of the evidence of indebtedness of educational or medical
Philippines, or in bonds, securities, promissory notes or institutions to finance the construction, improvement and
other evidence of indebtedness to which the full faith, maintenance of schools and hospitals and their equipment
credit and unconditional guarantee of the Government of and facilities: Provided, That such investments shall not
the Philippines is pledged; exceed ten percent (10%) of the Investment Reserve Fund;

"(b) In bonds, securities, promissory notes or other "(g) In real estate property, including shares of stocks
evidence of indebtedness of the Government of the involving real estate property, and investment secured by
Philippines, or any agencies or instrumentalities to finance first mortgages on real estate or other collaterals
domestic infrastructure projects such as roads, bridges, acceptable to the SSS: Provided, That such projects and
ports, telecommunications, and other similar investments shall, in the determination of the
projects: Provided, That the instruments issued by an Commission, redound to the benefit of the SSS, its
agency or instrumentality of the government shall be members, as well as the general public: Provided,
guaranteed by the Government of the Philippines or any further, That investment in real estate property, including
government financial institution or acceptable multilateral shares of stocks involving real estate property shall not
agency: Provided, further, That the SSS shall have priority exceed five percent (5%) of the Investment Reserve
over the revenues of the projects: Provided, finally, That Fund: Provided, finally, That investments in other income
such investments shall not exceed thirty percent (30%) of earning projects and investments secured by first
the Investment Reserve Fund; mortgages or other collaterals shall not exceed twenty five
percent (25%) of the Investment Reserve Fund;
"(c) In bonds, securities, promissory notes or other
evidence of indebtedness of government financial "(h) In bonds, debentures, securities, promissory notes or
institutions or government corporations with acceptable other evidence of indebtedness of any prime corporation
credit or guarantee: Provided, That such investments shall or multilateral institutions to finance domestic
not exceed thirty percent (30%) of the Investment Reserve projects: Provided, That the issuing or assuming entity or
Fund; its predecessors shall not have defaulted in the payment
of interest on any of its securities and that during each of Government or to any of its agencies or instrumentalities,
any three (3) including the last two (2) of the five (5) fiscal including government-owned or controlled corporations,
years next preceding the date of acquisition by the SSS of except as may be allowed under this Act: Provided, That
such bonds, debentures or other evidence of no portion of the Investment Reserve Fund shall be
indebtedness, the net earnings of the issuing or assuming invested for any purpose or in any instrument, institution
institution available for its fixed charges, as defined in this or industry over and above the prescribed cumulative
Act, shall have been not less than one and one-quarter ceilings as follows:
times the total of its fixed charges for such year: Provided,
40% in private securities
further, That such investments shall not exceed thirty
percent (30%) of the Investment Reserve Fund; 35% in housing
"(i) In preferred or common shares of stocks listed or 30% in real estate related investments
about to be listed in the stock exchange or options or
warrants to such stocks or, subject to prior approval of the 10% in short and medium-term member loans
Bangko Sentral ng Pilipinas, such other risk management 30% in government financial institutions and corporations
instruments of any prime or solvent corporation or
financial institution created or existing under the laws of 30% in infrastructure projects
the Philippines with proven track record of profitability
15% in any particular industry
over the last three (3) years and payment of dividends at
least once over the same period: Provided, That such 7.5% in foreign-currency denominated investments
investments shall not exceed thirty percent (30%) of the
Investment Reserve Fund; "SEC. 26-A. Fund Managers. - As part of its investment
operations, the SSS may appoint local or, in the absence
"(j) In domestic or foreign mutual funds in existence for at thereof, foreign fund managers to manage the Investment
least three (3) years; Provided, That such investments shall Reserve Fund, as it may deem appropriate.
not exceed twenty percent (20%) of the Investment
Reserve Fund: Provided, further, That investments in "SEC. 26-B. Mortgagor Insurance Account. - (a) As part of
foreign mutual funds shall not exceed one percent (1%) of its investment operations, the SSS shall act as insurer of all
the Investment Reserve Fund in the first year which shall or part of its interest on SSS properties mortgaged to the
be increased by one percent (1%) for each succeeding SSS, or lives of mortgagors whose properties are
year, but in no case shall it exceed seven and one-half mortgaged to the SSS. For this purpose, the SSS shall
percent (7.5%) of the Investment Reserve Fund; establish a separate account to be known as the
"Mortgagors’ Insurance Account." All amounts received by
"(k) In foreign currency deposits or triple "A" foreign the SSS in connection with the aforesaid insurance
currency denominated debts, prime and non-speculative operations shall be placed in the Mortgagors’ Insurance
equities, and other Bangko Sentral ng Pilipinas approved Account. The assets and liabilities of the Mortgagors’
financial instruments or other assets issued in accordance Insurance Account shall at all times be clearly identifiable
with the existing laws of the countries where such financial and distinguishable from the assets and liabilities in all
instruments are issued: Provided, That these instruments other accounts of the SSS. Notwithstanding any provision
or assets are listed in bourses of the respective countries of law to the contrary, the assets held in the Mortgagors’
where these instruments or assets are issued: Provided, Insurance Account shall not be chargeable with the
further, That the issuing company has proven track of liabilities arising out of any other business the SSS may
record of profitability over the last three (3) years and a conduct but shall be held and applied exclusively for the
record of regular dividend pay-out over the same benefit of the owners or beneficiaries of the insurance
period: Provided, finally, That such investments shall not contracts issued by the SSS under this paragraph.
exceed one percent (1%) of the Investment Reserve Fund
in the first year which shall be increased by one percent "(b) The SSS may insure any of its interest or part thereof
(1%) for each succeeding year, but in no case shall it with any private company or reinsurer. The Insurance
exceed seven and one-half percent (7.5%) of the Commission or its authorized representatives shall make
Investment Reserve Fund; an examination into the financial condition and methods
of transacting business of the SSS at least once in two (2)
"(l) In loans secured by such collaterals like cash, years, but such examination shall be limited to the
government securities or guarantees of multilateral insurance operation of the SSS as authorized under this
institutions: Provided, That such investments shall not paragraph and shall not embrace the other operations of
exceed thirty percent (30%) of the Investment Reserve the SSS; and the report of said examination shall be
Fund; and submitted to the Commission and a copy thereof shall be
furnished the Office of the President of the Philippines
"(m) In other Bangko Sentral ng Pilipinas approved
within a reasonable time after the close of the
investment instruments with the same intrinsic quality as
examination: Provided, That for each examination, the SSS
those enumerated in paragraphs (a) to (l) hereof, subject
shall pay to the Insurance Commission an amount equal to
to the policies and guidelines which the Commission may
the actual expense of the Insurance Commission in the
formulate.
conduct of examination, including the salaries of the
"No portion of the Investment Reserve Fund or income examiners and of the actuary of the Insurance Commission
thereof shall accrue to the general fund of the National who have been assigned to make such examination for the
actual time spent in said examination: Provided, has in his possession any such altered, forged, material in
further, That the general law on insurance and the rules imitation of the material used in the manufacture of such
and regulations promulgated thereunder shall have stamp, coupon, ticket, book or other device, shall be fined
suppletory application insofar as it is not in conflict with not less than Five thousand pesos (P5,000.00) non more
this Act and its rules and regulations. than Twenty thousand pesos (P20,000.00) or imprisoned
for not less than six years (6) and one (1) day nor more
"SEC. 27. Records and Reports. - The SSS President shall
than twelve (12) years, or both, at the discretion of the
keep and cause to keep records of operations of the funds
court.
of the SSS and of disbursements thereof and all accounts
of payments made out of said funds. During the month of "(e) Whoever fails or refuses to comply with the provisions
January of each year, the SSS President shall prepare for of this Act or with the rules and regulations promulgated
submission to the President of the Philippines and to by the Commission, shall be punished by a fine of not less
Congress of the Philippines a report of operations of the than Five thousand pesos (P5,000.00) nor more than
SSS during the preceding year, including statistical data on Twenty thousand pesos (P20,000.00), or imprisonment for
the number of persons covered and benefited, their not less than six (6) years and one (1) day nor more than
occupations and employment status, the duration and twelve (12) years, or both, at the discretion of the
amount of benefits paid, the finances of the SSS at the court: Provided, That where the violation consists in failure
close of the said year, and recommendations. He shall also or refusal to register employees or himself, in case of the
cause to be published in two (2) newspapers of general covered self-employed or to deduct contributions from the
circulation in the Philippines a synopsis of the annual employees’ compensation and remit the same to the SSS,
report, showing in particular the status of the finances of the penalty shall be a fine of not less Five thousand pesos
the SSS and the benefits administered. (P5,000.00) nor more than Twenty thousand pesos
(P20,000.00) and imprisonment for not less than six (6)
"SEC. 28. Penal Clause. - (a) Whoever, for the purpose of
years and one (1) day nor more than twelve (12) years.
causing any payment to be made under this Act, or under
an agreement thereunder, where none is authorized to be "(f) If the act or omission penalized by this Act be
paid, shall make or cause to be made false statement or committed by an association, partnership, corporation or
representation as to any compensation paid or received or any other institution, its managing head, directors or
whoever makes or causes to be made any false statement partners shall be liable for the penalties provided in this
of a material fact in any claim for any benefit payable Act for the offense.
under this Act, or application for loan with the SSS, or
"(g) Any employee of the SSS who receives or keeps funds
whoever makes or causes to be made any false statement,
or property belonging, payable or deliverable to the SSS
representation, affidavit or document in connection with
and who shall appropriate the same, or shall take or
such claim or loan, shall suffer the penalties provided for
misappropriate, or shall consent, or through abandonment
in Article One hundred seventy-two of the Revised Penal
or negligence, shall permit any other person to take such
Code.
property or funds, wholly or partially, or shall otherwise be
"(b) Whoever shall obtain or receive any money or check guilty of misappropriation of such funds or property, shall
under this Act or any agreement thereunder, without suffer the penalties provided in Article Two hundred
being entitled thereto with intent to defraud any member, seventeen of the Revised Penal Code.
employer or the SSS, shall be fined not less than Five
"(h) Any employer who, after deducting the monthly
thousand pesos (P5,000.00) nor more than Twenty
contributions or loan amortizations from his employee’s
thousand pesos (P20,000.00) and imprisoned for not less
compensation, fails to remit the said deduction to the SSS
than six (6) years and one (1) day nor more than twelve
within thirty (30) days from the date they became due,
(12) years.
shall be presumed to have misappropriated such
"(c) Whoever buys, sells, offers for sale, uses, transfers or contributions or loan amortizations and shall suffer the
takes or gives in exchange, or pledges or gives in pledge, penalties provided in Article Three hundred fifteen of the
except as authorized in this Act or in regulations made Revised Penal Code.
pursuant thereto, any stamp, coupon, ticket, book or other
"(i) Criminal action arising from a violation of the
device, prescribed pursuant to Section Twenty-three
provisions of this Act may be commenced by the SSS or
hereof by the Commission for the collection or payment of
the employee concerned either under this Act or in
contributions required herein, shall be fined not less than
appropriate cases under the Revised Penal
Five thousand pesos (P5,000.00) nor more than Twenty
Code: Provided, That such criminal action may be filed by
thousand pesos (P20,000.00), or imprisoned for not less
the SSS in the city or municipality where the SSS office is
than six (6) years and one (1) day nor more than twelve
located, if the violation was committed within its territorial
(12) years, or both, at the discretion of the court.
jurisdiction or in Metro Manila, at the option of the SSS.
"(d) Whoever, with intent to defraud, alters, forges, makes
"SEC. 29. Government Aid. - The establishment of the SSS
or counterfeits any stamp, coupon, ticket, book or other
shall not disqualify the members and employers from
device prescribed by the Commission for the collection or
receiving such government assistance, financial or
payment of any contribution required herein, or uses,
otherwise, as may be provided.
sells, lends, or has in his possession any such altered,
forged or counterfeited materials, or makes, uses, sells or
"SEC. 30. Transitory Clause. - Any employer who is
delinquent or has not remitted all contributions due and
payable to the SSS may, within six (6) months from the
effectivity of this Act, remit said contributions or submit a
proposal to pay the same in installment within a period of
not more than twelve (12) months from the effectivity of
this Act without incurring the prescribed penalty, subject
to the implementing rules and regulations which the
Commission may prescribe: Provided, That the employer
submits the corresponding collection lists together with
the remittance or proposal to pay in
installments: Provided, further, That in case the employer
fails to remit contributions within the six-month grace
period or defaults in the payment of any amortization
provided the approved proposal, the prescribed penalty
shall be imposed from the time the contributions first
became due as provided in Section 22 (a) hereof."

SEC. 2. Separability Clause. - If any provision of this Act is


declared invalid, the other provisions not affected thereby
shall remain valid.

SEC. 3. Repealing Clause. - All laws, proclamations,


executive orders, rules and regulations or parts thereof
inconsistent with this Act are hereby repealed, modified or
amended accordingly: Provided, That no person shall be
deemed to be vested with any property or other right by
virtue of the enactment or operation of this Act.

SEC. 4. Effectivity Clause. - This Act shall take effect fifteen


(15) days after its complete publication in the Official
Gazette or in at least two (2) national newspapers of
general circulation whichever comes earlier.

Approved: May 01, 1997


May 30, 1997 “(j) Contribution — The amount payable to the GSIS by the
member and the employer in accordance with Section 5 of
REPUBLIC ACT NO. 8291
this Act;
AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS
“(k) Current Daily Compensation — The actual daily
AMENDED, EXPANDING AND INCREASING THE COVERAGE
compensation or the actual monthly compensation
AND BENEFITS OF THE GOVERNMENT SERVICE INSURANCE
divided by the number of working days in the month of
SYSTEM, INSTITUTING REFORMS THEREIN AND FOR OTHER
contingency but not to exceed twenty-two (22) days;
PURPOSES
“(l) Average Monthly Compensation (AMC) — The quotient
SECTION 1. Presidential Decree No. 1146, as amended,
arrived at after dividing the aggregate compensation
otherwise known as the “Revised Government Service
received by the member during his last thirty-six (36)
Insurance Act of 1977”, is hereby further amended to read
months of service preceding his
as follows:
separation/retirement/disability/death by thirty-six (36),
“SECTION 1. Title. — The short title of this Act shall be: or by the number of months he received such
‘The Government Service Insurance System Act of 1997.’ compensation if he has less than thirty-six (36) months of
service: Provided, That the average monthly compensation
“A. DEFINITIONS shall in no case exceed the amount and rate as may be
“SECTION 2. Definition of Terms. — Unless the context respectively set by the Board under the rules and
otherwise indicates, the following terms shall mean: regulations implementing this Act as determined by the
actuary of the GSIS: Provided, further, That initially the
“(a) GSIS — The Government Service Insurance System average monthly compensation shall not exceed Ten
created by Commonwealth Act No. 186; thousand pesos (P10,000.00), and premium shall be nine
percent (9%) and twelve percent (12%) for employee and
“(b) Board — The Board of Trustees of the Government
employer covering the AMC limit and below; and two
Service Insurance System;
percent (2%) and twelve percent (12%) for employee and
“(c) Employer — The national government, its political employer covering the compensation above the AMC limit;
subdivisions, branches, agencies or instrumentalities,
“(m) Revalued average monthly compensation — An
including government-owned or controlled corporations,
amount equal to one hundred seventy percent (170%) of
and financial institutions with original charters, the
the first One thousand pesos (P1,000) of the average
constitutional commissions and the judiciary;
monthly compensation plus one hundred percent (100%)
“(d) Employee or Member — Any person, receiving of the average monthly compensation in excess of One
compensation while in the service of an employer as thousand pesos (P1,000);
defined herein, whether by election or appointment,
“(n) Lump sum — The basic monthly pension multiplied by
irrespective of status of appointment, including barangay
sixty (60);
and sanggunian officials;
“(o) Pensioner — Any person receiving old-age or
“(e) Active Member — A member who is not separated
permanent total disability pension or any person who has
from the service;
received the lump sum excluding one receiving
“(f) Dependents — Dependents shall be the following: (a) survivorship pension benefits as defined in Section 20 of
the legitimate spouse dependent for support upon the this Act;
member or pensioner; (b) the legitimate, legitimated,
“(p) Gainful Occupation — Any productive activity that
legally adopted child, including the illegitimate child, who
provided the member with income at least equal to the
is unmarried, not gainfully employed, not over the age of
minimum compensation of government employees;
majority, or is over the age of majority but incapacitated
and incapable of self-support due to a mental or physical “(q) Disability — Any loss or impairment of the normal
defect acquired prior to age of majority; and (c) the functions of the physical and/or mental faculty of a
parents dependent upon the member for support; member which reduces or eliminates his/her capacity to
continue with his/her current gainful occupation or engage
“(g) Primary beneficiaries — The legal dependent spouse
in any other gainful occupation;
until he/she
“(r) Total Disability — Complete incapacity to continue
remarries and the dependent children;
with his present employment or engage in any gainful
“(h) Secondary beneficiaries — The dependent parents occupation due to the loss or impairment of the normal
and, subject to the restrictions on dependent children, the functions of the physical and/or mental faculties of the
legitimate descendants; member;

“(i) Compensation — The basic pay or salary received by “(s) Permanent Total Disability — Accrues or arises when
an employee, pursuant to his election/appointment, recovery from the impairment mentioned in Section 2(Q)
excluding per diems, bonuses, overtime pay, honoraria, is medically remote;
allowances and any other emoluments received in
addition to the basic pay which are not integrated into the
basic pay under existing laws;
“(t) Temporary Total Disability — Accrues or arises when be required on account of the hazards or risks of its
the impaired physical and/or mental faculties can be employees’ occupation.
rehabilitated and/or restored to their normal functions;
“(c) It shall be mandatory and compulsory for all
“(u) Permanent Partial Disability — Accrues or arises upon employers to include the payment of contributions in their
the irrevocable loss or impairment of certain portion/s of annual appropriations. Penal sanctions shall be imposed
the physical faculties, despite which the member is able to upon employers who fail to include the payment of
pursue a gainful occupation. contributions in their annual appropriations or otherwise
fail to remit the accurate/exact amount of contributions
“B. MEMBERSHIP IN THE GSIS
on time, or delay the remittance of premium contributions
“SECTION 3. Compulsory Membership. — Membership in to the GSIS. The heads of offices and agencies shall be
the GSIS shall be compulsory for all employees receiving administratively liable for non-remittance or delayed
compensation who have not reached the compulsory remittance of premium contributions to the GSIS.
retirement age, irrespective of employment status, except
“SECTION 6. Collection and Remittance of Contributions.
members of the Armed Forces of the Philippines and the
— (a) The employer shall report to the GSIS the names of
Philippine National Police, subject to the condition that
all its employees, their corresponding employment status,
they must settle first their financial obligation with the
positions, salaries and such other pertinent information,
GSIS, and contractuals who have no employer and
including subsequent changes therein, if any, as may be
employee relationship with the agencies they serve.
required by the GSIS; the employer shall deduct each
“Except for the members of the judiciary and month from the monthly salary or compensation of each
constitutional commissions who shall have life insurance employee the contribution payable by him in accordance
only, all members of the GSIS shall have life insurance, with the schedule prescribed in the rules and regulations
retirement, and all other social security protection such as implementing this Act.
disability, survivorship, separation, and unemployment
“(b) Each employer shall remit directly to the GSIS the
benefits.
employees’ and employers’ contributions within the first
“SECTION 4. Effect of Separation from the Service. — A ten (10) days of the calendar month following the month
member separated from the service shall continue to be a to which the contributions apply. The remittance by the
member, and shall be entitled to whatever benefits he has employer of the contributions to the GSIS shall take
qualified to in the event of any contingency compensable priority over and above the payment of any and all
under this Act. obligations, except salaries and wages of its employees.

“C. SOURCES OF FUNDS “SECTION 7. Interests on Delayed Remittances. —


Agencies which delay the remittance of any and all monies
“SECTION 5. Contributions. — (a) It shall be mandatory for due the GSIS shall be charged interests as may be
the member and the employer to pay the monthly prescribed by the Board but not less than two percent
contributions specified in the following schedule: (2%) simple interest per month. Such interest shall be paid
“Monthly Compensation Percentage of Monthly by the employers concerned.

Compensation Payable by “SECTION 8. Government Guarantee. — The government


of the Republic of the Philippines hereby guarantees the
Member Employer fulfillment of the obligations of the GSIS to its members as
and when they fall due.
I. Maximum Average
“D. BENEFITS
Monthly Compensation
“SECTION 9. Computation of the Basic Monthly Pension. —
(AMC) Limit and Below 9.0% 12.0%
(a) the basic monthly pension is equal to:
II. Over the Maximum AMC Limit
“1) thirty-seven and one-half percent (37.5%) of the
III. revalued average monthly compensation; plus

— Up to the Maximum AMC Limit 9.0% 12.0% “2) two and one-half percent (2.5%) of said revalued
average monthly compensation for each year of service in
— In Excess of the AMC Limit 2.0% 12.0% excess of fifteen (15) years: Provided, That the basic
“Members of the judiciary and constitutional monthly pension shall not exceed ninety percent (90%) of
commissioners shall pay three percent (3%) of their the average monthly compensation.
monthly compensation as personal share, and their “(b) The basic monthly pension may be adjusted upon the
employers a corresponding three percent (3%) share for recommendation of the President and General Manager of
their life insurance coverage. the GSIS and approved by the President of the Philippines
“(b) The employer shall include in its annual appropriation in accordance with the rules and regulations prescribed by
the necessary amounts for its share of the contributions the GSIS: Provided, however, That the basic monthly
indicated above, plus any additional premiums that may pension shall not be less than One thousand and three
hundred pesos (P1,300.00): Provided, further, That the
basic monthly pension for those who have rendered at 3 or more years but less than 6 years 3 months
least twenty (20) years of service after the effectivity of
6 or more years but less than 9 years 4 months
this Act shall not be less than Two thousand four hundred
pesos (P2,400.00) a month. 9 or more years but less than 11 years 5 months
“SECTION 10. Computation of Service. — (a) The 11 or more years but less than 15 years 6 months
computation of service for the purpose of determining the
amount of benefits payable under this Act shall be from “The first payment shall be equivalent to two (2) monthly
the date of original appointment/election, including benefits. A seven-day (7) waiting period shall be imposed
periods of service at different times under one or more on succeeding monthly payments.
employers, those performed overseas under the authority “All accumulated unemployment benefits paid to the
of the Republic of the Philippines, and those that may be employee during his entire membership with the GSIS shall
prescribed by the GSIS in coordination with the Civil be deducted from voluntary separation benefits.
Service Commission.
“The GSIS shall prescribe the detailed guidelines in the
“(b) All service credited for retirement, resignation or operationalization of this section in the rules and
separation for which corresponding benefits have been regulations implementing this Act.
awarded under this Act or other laws shall be excluded in
the computation of service in case of reinstatement in the “RETIREMENT BENEFITS
service of an employer and subsequent retirement or
“SECTION 13. Retirement Benefits. — (a) Retirement
separation which is compensable under this Act.
benefit shall be:
“For the purpose of this section the term service shall
“(1) the lump sum payment as defined in this Act payable
include full time service with compensation: Provided,
at the time of retirement plus an old-age pension benefit
That part time and other services with compensation may
equal to the basic monthly pension payable monthly for
be included under such rules and regulations as may be
life, starting upon expiration of the five-year (5)
prescribed by the GSIS.
guaranteed period covered by the lump sum; or
“SEPARATION BENEFITS
“(2) cash payment equivalent to eighteen (18) months of
“SECTION 11. Separation Benefits. — The separation his basic monthly pension plus monthly pension for life
benefit shall consist of: (a) a cash payment equivalent to payable immediately with no five-year (5) guarantee.
one hundred percent (100%) of his average monthly
“(b) Unless the service is extended by appropriate
compensation for each year of service he paid
authorities, retirement shall be compulsory for an
contributions, but not less than Twelve thousand pesos
employee at sixty-five (65) years of age with at least
(P12,000) payable upon reaching sixty (60) years of age or
fifteen (15) years of service: Provided, That if he has less
upon separation, whichever comes later: Provided, That
than fifteen (15) years of service, he may be allowed to
the member resigns or separates from the service after he
continue in the service in accordance with existing civil
has rendered at least three (3) years of service but less
service rules and regulations.
than fifteen (15) years; or
“SECTION 13-A. Conditions for Entitlement. — A member
“(b) A cash payment equivalent to eighteen (18) times his
who retires from the service shall be entitled to the
basic monthly pension payable at the time of resignation
retirement benefits in paragraph (a) of Section 13 hereof:
or separation, plus an old-age pension benefit equal to the
Provided, That:
basic monthly pension payable monthly for life upon
reaching the age of sixty (60): Provided, That the member (1) he has rendered at least fifteen (15) years of service;
resigns or separates from the service after he has
rendered at least fifteen (15) years of service and is below (2) he is at least sixty (60) years of age at the time of
sixty (60) years of age at the time of resignation or retirement; and
separation. (3) he is not receiving a monthly pension benefit from
“SECTION 12. Unemployment or Involuntary Separation permanent total disability.
Benefits. — Unemployment benefits in the form of “SECTION 14. Periodic Pension Adjustment. — The
monthly cash payments equivalent to fifty percent (50%) monthly pension of all pensioners including all those
of the average monthly compensation shall be paid to a receiving survivorship pension benefits shall be
permanent employee who is involuntarily separated from periodically adjusted as may be recommended by the GSIS’
the service due to the abolition of his office or position actuary and approved by the Board in accordance with the
usually resulting from reorganization: Provided, That he rules and regulations prescribed by the GSIS.
has been paying integrated contributions for at least one
(1) year prior to separation. Unemployment benefits shall “PERMANENT DISABILITY BENEFITS
be paid in accordance with the following schedule: “SECTION 15. General Conditions for Entitlement. — A
“Contributions Made Benefit Duration member who suffers permanent disability for reasons not
due to his grave misconduct, notorious negligence,
1 year but less than 3 years 2 months habitual intoxication, or willful intention to kill himself or
another, shall be entitled to the benefits provided for
under Sections 16 and 17 immediately following, subject “(1) complete and permanent loss of the use of:
to the corresponding conditions therefor.
(i) any finger
“SECTION 16. Permanent Total Disability Benefits. — (a) If
(ii) any toe
the permanent disability is total, he shall receive a
monthly income benefit for life equal to the basic monthly (iii) one arm
pension effective from the date of disability: Provided,
That: (iv) one hand

(1) he is in the service at the time of disability; or (v) one foot

(2) if separated from the service, he has paid at least (vi) one leg
thirty-six (36) monthly contributions within the five (5) (vii) one or both ears
year period immediately preceding his disability, or has
paid a total of at least one hundred eighty (180) monthly (viii) hearing of one or both ears
contributions, prior to his disability: Provided, further, That
(ix) sight of one eye
if at the time of disability, he was in the service and has
paid a total of at least one hundred eighty (180) monthly “(2) such other cases as may be determined by the GSIS.
contributions, in addition to the monthly income benefit,
he shall receive a cash payment equivalent to eighteen “TEMPORARY DISABILITY BENEFITS
(18) times his basic monthly pension: Provided, finally, “SECTION 18. Temporary Total Disability Benefit. — (a) A
That a member cannot enjoy the monthly income benefit member who suffers temporary total disability for reasons
for permanent disability and the old-age retirement not due to any of the conditions enumerated in Section 15
simultaneously. hereof shall be entitled to seventy-five percent (75%) of
“(b) If a member who suffers permanent total disability his current daily compensation for each day or fraction
does not satisfy conditions (1) and (2) in paragraph (a) of thereof of temporary disability benefit not exceeding one
this section but has rendered at least three (3) years hundred twenty (120) days in one calendar year after
service at the time of his disability, he shall be advanced exhausting all his sick leave credits and collective
the cash payment equivalent to one hundred percent bargaining agreement sick leave benefits, if any, but not
(100%) of his average monthly compensation for each year earlier than the fourth day of his temporary total
of service he paid contributions, but not less than Twelve disability: Provided, That:
Thousand pesos (P12,000) which should have been his “(1) he is in the service at the time of his disability; or
separation benefit.
“(2) if separated, he has rendered at least three (3) years
“(c) Unless the member has reached the minimum of service and has paid at least six (6) monthly
retirement age, disability benefit shall be suspended contributions in the twelve-month period immediately
when: preceding his disability.
“(1) he is reemployed or Provided, however, That a member cannot enjoy the
“(2) he recovers from disability as determined by the GSIS, temporary total disability benefit and sick leave pay
whose decision shall be final and binding; or simultaneously: Provided, further, That if the disability
requires more extensive treatment that lasts beyond one
“(3) he fails to present himself for medical examination hundred twenty (120) days, the payment of the temporary
when required by the GSIS. total disability benefit may be extended by the GSIS but
not to exceed a total of two hundred forty (240) days.
“(d) The following disabilities shall be deemed total and
permanent: “(b) The temporary total disability benefit shall in no case
be less than Seventy pesos (P70.00) a day.
“(1) complete loss of sight of both eyes;
“(c) The notices required of the member and the
“(2) loss of two (2) limbs at or above the ankle or wrist;
employer, the mode of payment, and the other
“(3) permanent complete paralysis of two(2) limbs; requirements for entitlement to temporary total disability
benefits shall be provided in the rules and regulations to
“(4) brain injury resulting in incurable imbecility or be prescribed by the GSIS.
insanity; and
“SECTION 19. Non-scheduled Disability. — For injuries or
“(5) such other cases as may be determined by the GSIS. illnesses resulting in a disability not listed in the schedule
“SECTION 17. Permanent Partial Disability Benefits. — (a) of partial/total disability, as provided herein, the GSIS shall
If the disability is partial, he shall receive a cash payment determine the nature of the disability and the
in accordance with a schedule of disabilities to be corresponding benefits therefor.
prescribed by the GSIS: Provided, That he satisfies either “SURVIVORSHIP BENEFITS
conditions (1) or (2) of Section 16(a);
“SECTION 20. Survivorship Benefits. — When a member or
“(b) The following disabilities shall be deemed permanent pensioner dies, the beneficiaries shall be entitled to
and partial:
survivorship benefits provided in Sections 21 and 22 in the service at the time of his death and has at least
hereunder subject to the conditions therein provided for. three (3) years of service; or
The survivorship pension shall consist of:
(2) in the absence of secondary beneficiaries, the benefits
(1) the basic survivorship pension which is fifty percent under this paragraph shall be paid to his legal heirs.
(50%) of the basic monthly pension; and
(d) For purposes of the survivorship benefits, legitimate
(2) the dependent children’s pension not exceeding fifty children shall include legally adopted and legitimate
percent (50%) of the basic monthly pension. children.

(3) “SECTION 22. Death of a Pensioner. — Upon the death of


an old-age pensioner or a member receiving the monthly
“SECTION 21. Death of a Member. — (a) Upon the death
income benefit for permanent disability, the qualified
of a member, the primary beneficiaries shall be entitled to:
beneficiaries shall be entitled to the survivorship pension
(1) survivorship pension: Provided, That the deceased: defined in Section 20 of this Act, subject to the provisions
of paragraph (b) of Section 21 hereof. When the pensioner
(i) was in the service at the time of his death; or dies within the period covered by the lump sum, the
(ii) if separated from the service, has at least three (3) survivorship pension shall be paid only after the expiration
years of service at the time of his death and has paid of the said period.
thirty-six (36) monthly contributions within the five-year “FUNERAL BENEFITS
period immediately preceding his death; or has paid a total
of at least one hundred eighty (180) monthly contributions “SECTION 23. Funeral Benefit. — The amount of funeral
prior to his death; or benefit shall be determined and specified by the GSIS in
the rules and regulations but shall not be less than Twelve
(2) the survivorship pension plus a cash payment thousand pesos (P12,000.00): Provided, That it shall be
equivalent to one hundred percent (100%) of his average increased to at least Eighteen thousand pesos
monthly compensation for every year of service: Provided, (P18,000.00) after five (5) years and shall be paid upon the
That the deceased was in the service at the time of his death of:
death with at least three (3) years of service; or
(a) an active member as defined under Section 2(e) of this
(3) a cash payment equivalent to one hundred percent Act; or
(100%) of his average monthly compensation for each year
of service he paid contributions, but not less than Twelve (b) a member who has been separated from the service,
thousand pesos (P12,000.00): Provided, That the deceased but who may be entitled to future benefit pursuant to
has rendered at least three (3) years of service prior to his Section 4 of this Act; or
death but does not qualify for the benefits under the item
(c) a pensioner, as defined in Section 2(o) of this Act; or
(1) or (2) of this paragraph.
(d) a retiree who at the time of his retirement was of
(b) The survivorship pension shall be paid as follows:
pensionable age under this Act but who opted to retire
(1) when the dependent spouse is the only survivor, under Republic Act No. 1616.
he/she shall receive the basic survivorship pension for life
“LIFE INSURANCE BENEFITS
or until he/she remarries;
“SECTION 24. Compulsory Life Insurance. — All employees
(2) when only dependent children are the survivors, they
except for Members of the Armed Forces of the
shall be entitled to the basic survivorship pension for as
Philippines (AFP) and the Philippine National Police (PNP)
long as they are qualified, plus the dependent children’s
shall, under such terms and conditions as may be
pension equivalent to ten percent (10%) of the basic
promulgated by the GSIS, be compulsorily covered with
monthly pension for every dependent child not exceeding
life insurance, which shall automatically take effect as
five (5), counted from the youngest and without
follows:
substitution;
(1) for those employed after the effectivity of this Act,
(3) when the survivors are the dependent spouse and the
their insurance shall take effect on the date of their
dependent children, the dependent spouse shall receive
employment;
the basic survivorship pension for life or until he/she
remarries, and the dependent children shall receive the (2) for those whose insurance will mature after the
dependent children’s pension mentioned in the effectivity of this Act, their insurance shall be deemed
immediately preceding paragraph (2) hereof. renewed on the day following the maturity or expiry date
of their insurance;
(c) In the absence of primary beneficiaries, the secondary
beneficiaries shall be entitled to: (3) for those without any life insurance as of the effectivity
of this Act, their insurance shall take effect following said
(1) the cash payment equivalent to one hundred percent
effectivity.
(100%) of his average monthly compensation for each year
of service he paid contributions, but not less than Twelve “SECTION 25. Dividends. — An annual dividend may be
thousand pesos (P12,000): Provided, That the member is granted to all members of the GSIS whose life insurance is
in force for at least one (1) year in accordance with a take precedence over all other cases except criminal cases
dividend allocation formula to be determined by the GSIS. when the penalty of life imprisonment or death or
reclusion perpetua is imposable.
“SECTION 26. Optional Insurance. — Subject to the rules
and regulations prescribed by the GSIS, a member may The appeal shall not stay the execution of the order or
apply for insurance and/or pre-need coverage embracing award unless ordered by the Board, by the Court of
life, health, hospitalization, education, memorial plans, Appeals or by the Supreme Court and the appeal shall be
and such other plans as may be designed by the GSIS, for without prejudice to the special civil action of certiorari
himself and/or his dependents. Any employer may when proper.
likewise apply for group insurance coverage for its
“SECTION 32. Execution of Decision. — When no appeal is
employees. The payment of the premiums/installments for
perfected and there is no order to stay by the Board, by
optional insurance and pre-need products may be made
the Court of Appeals or by the Supreme Court, any
by the insured or his employer and/or any person
decision or award of the Board shall be enforced and
acceptable to the GSIS.
executed in the same manner as decisions of the Regional
“SECTION 27. Reinsurance. — The GSIS may reinsure any Trial Court. For this purpose, the Board shall have the
of its interests or part thereof with any private company or power to issue to the city or provincial sheriff or its
reinsurer whether domestic or foreign: Provided, That the appointed sheriff such writs of execution as may be
GSIS shall submit an annual report on its reinsurance necessary for the enforcement of such decision or award,
operations to the Insurance Commission. and any person who shall fail or refuse to comply with
such decision, award, writ or process after being required
“E. ADJUDICATION OF CLAIMS AND DISPUTES
to do so, shall, upon application by the GSIS, be punished
“SECTION 28. Prescription. — Claims for benefits under for contempt.
this Act except for life and retirement shall prescribe after
“SECTION 33. Oaths, Witnesses, and Production of
four (4) years from the date of contingency.
Records. — When authorized by the Board, an official or
“SECTION 29. Facility of Payment. — The GSIS shall employee of the GSIS shall have the power to administer
prescribe rules and regulations to facilitate payment of oath and affirmation, take depositions, certify to official
benefit, proceeds, and claims under this Act and any other acts, and issue subpoena ad testificandum and subpoena
laws administered by the GSIS. Payments made by the duces tecum to compel the attendance of witnesses and
GSIS prior to its receipt of an adverse claim, to a the production of books, papers, correspondences, and
beneficiary or claimant subsequently found not entitled other records deemed necessary as evidence in
thereto, shall not bar the legal and eligible recipient to his connection with any question arising under this Act. Any
right to demand the payment of benefits, proceeds, and case of contumacy shall be dealt with in accordance with
claims from the GSIS, who shall, however, have a right to the provisions of Section 580 of the Revised Administrative
institute the appropriate action in a court of law against Code.
the ineligible recipient.
“F. FUNDS OF THE GSIS
“SECTION 30. Settlement of Disputes. — The GSIS shall
“SECTION 34. Funds. — All contributions payable under
have original and exclusive jurisdiction to settle any
Section 5 of this Act together with the earnings and
dispute arising under this Act and any other laws
accruals thereon shall constitute the GSIS Social Insurance
administered by the GSIS.
Fund. The said Fund shall be used to finance the benefits
The Board may designate any member of the Board, or administered by the GSIS under this Act. In addition, the
official of the GSIS who is a lawyer, to act as hearing officer GSIS shall administer the optional insurance fund for the
to receive evidence, make findings of fact and submit insurance coverage described in Section 26 hereof, the
recommendations thereon. The hearing officer shall employees’ Compensation Insurance Fund created under
submit his findings and recommendations, together with P.D. 626, as amended, the General Insurance Fund created
all the documentary and testimonial evidence to the Board under Act No. 656, as amended, and such other special
within thirty (30) working days from the time the parties funds existing or that may be created for special groups or
have closed their respective evidence and filed their last persons rendering services to the government. The GSIS
pleading. The Board shall decide the case within thirty (30) shall maintain the required reserves to guarantee the
days from the receipt of the hearing officer’s findings and fulfillment of its obligations under this Act.
recommendations. The cases heard directly by the Board
“The funds of the GSIS shall not be used for purposes
shall be decided within thirty (30) working days from the
other than what are provided for under this Act.
time they are submitted by the parties for decision.
Moreover, no portion of the funds of the GSIS or income
“SECTION 31. Appeals. — Appeals from any decision or thereof shall accrue to the General Fund of the national
award of the Board shall be governed by Rules 43 and 45 government and its political subdivisions, instrumentalities
of the 1997 Rules of Civil Procedure adopted by the and other agencies including government-owned and
Supreme Court on April 8, 1997 which will take effect on controlled corporations except as may be allowed under
July 1, 1997: Provided, That pending cases and those filed this Act.
prior to July 1, 1997 shall be governed by the applicable
“SECTION 35. Deposits and Disbursements. — All revenues
rules of procedure: Provided, further, That the appeal shall
collected and all accruals thereto shall be deposited,
administered and disbursed in accordance with the law. A last three (3) years and payment of dividends at least once
maximum expense loading of twelve percent (12%) of the over the same period;
yearly revenues from all sources may be disbursed for
(i) In domestic mutual funds including investments related
administrative and operational expenses except as may be
to the operations of mutual funds; and
otherwise approved by the President of the Philippines on
the basis of actuarial and management studies. (j) In foreign mutual funds and in foreign currency deposits
or foreign currency-denominated debts, non-speculative
“SECTION 36. Investment of Funds. — The funds of the
equities and other financial instruments or other assets
GSIS which are not needed to meet the current obligations
issued in accordance with existing laws of the countries
may be invested under such terms and conditions and
where such financial instruments are issued: Provided,
rules and regulations as may be prescribed by the Board:
That these instruments or assets are listed in bourses of
Provided, That investments shall satisfy the requirements
the respective countries where these instruments or
of liquidity, safety/security and yield in order to ensure the
assets are issued: Provided, further, That the issuing
actuarial solvency of the funds of the GSIS: Provided,
company has proven track record of profitability over the
further, That the GSIS shall submit an annual report on all
last three (3) years and payment of dividends at least once
investments made to both Houses of Congress of the
over the same period.
Philippines, to wit:
“SECTION 37. Records and Reports. — The GSIS shall keep
(a) in interest-bearing bonds or securities or other
and cause to keep such records as may be necessary for
evidence of indebtedness of the Government of the
the purpose of making actuarial studies, calculations and
Philippines;
valuations of the funds of the GSIS including such data
(b) In interest-bearing deposits or securities in any needed in the computation of rates of disability, mortality,
domestic bank doing business in the Philippines: Provided, morbidity, separation and retirement among the members
That in the case of such deposits, these shall not exceed at and any other information useful for the adjustment of the
any time the unimpaired capital and surplus or total benefits of the members. The GSIS shall maintain
private deposits of the depository bank, whichever is appropriate books of accounts to record its assets,
smaller: Provided, further, That said bank has prior liabilities, income, expenses, receipts and disbursements
designation as a depository for the purpose by the of funds and other financial transactions and operations.
Monetary Board of the Central Monetary Authority;
“SECTION 38. Examination and Valuation of the Funds. —
(c) in direct housing loans to members and group housing The GSIS shall make a periodic actuarial examination and
projects secured by first mortgage, giving priority to the valuation of its funds in accordance with accepted
low income groups and in short-and-medium-term loans actuarial principles.
to members such as salary, policy, educational,
“SECTION 39. Exemption from Tax, Legal Process and Lien.
emergency, stock purchase plan and other similar loans:
— It is hereby declared to be the policy of the State that
Provided, That no less than forty percent (40%) of the
the actuarial solvency of the funds of the GSIS shall be
investable fund of the GSIS Social Insurance Fund shall be
preserved and maintained at all times and that
invested for these purposes;
contribution rates necessary to sustain the benefits under
(d) in bonds, securities, promissory notes or other this Act shall be kept as low as possible in order not to
evidence of indebtedness of educational or medical burden the members of the GSIS and their employers.
institutions to finance the construction, improvement and Taxes imposed on the GSIS tend to impair the actuarial
maintenance of schools and hospitals; solvency of its funds and increase the contribution rate
necessary to sustain the benefits of this Act. Accordingly,
(e) in real estate property including shares of stocks
notwithstanding any laws to the contrary, the GSIS, its
involving real estate property and investments secured by
assets, revenues including all accruals thereto, and
first mortgages on real estate or other collaterals
benefits paid, shall be exempt from all taxes, assessments,
acceptable to the GSIS: Provided, That such investments
fees, charges or duties of all kinds. These exemptions shall
shall, in the determination of the Board, redound to the
continue unless expressly and specifically revoked and any
benefit of the GSIS, its members, as well as the general
assessment against the GSIS as of the approval of this Act
public;
are hereby considered paid. Consequently, all laws,
(f) In debt instruments and other securities traded in the ordinances, regulations, issuances, opinions or
secondary markets; jurisprudence contrary to or in derogation of this provision
are hereby deemed repealed, superseded and rendered
(g) In loans to, or in bonds, debentures, promissory notes ineffective and without legal force and effect.
or other evidence of indebtedness of any solvent
corporation created or existing under the laws of the “Moreover, these exemptions shall not be affected by
Philippines; subsequent laws to the contrary unless this section is
expressly, specifically and categorically revoked or
(h) In common and preferred stocks of any solvent repealed by law and a provision is enacted to substitute or
corporation or financial institution created or existing replace the exemption referred to herein as an essential
under the laws of the Philippines listed in the stock factor to maintain or protect the solvency of the fund,
exchange with proven track record or profitability over the notwithstanding and independently of the guaranty of the
national government to secure such solvency or liability.
“The funds and/or the properties referred to herein as Philippines and/or in any or all foreign countries, states
well as the benefits, sums or monies corresponding to the and territories: Provided, That the GSIS shall maintain a
benefits under this Act shall be exempt from attachment, branch office in every province where there exists a
garnishment, execution, levy or other processes issued by minimum of fifteen thousand (15,000) membership;
the courts, quasi-judicial agencies or administrative bodies
(k) to borrow funds from any source, private or
including Commission on Audit (COA) disallowances and
government, foreign or domestic, only as an incident in
from all financial obligations of the members, including his
the securitization of housing mortgages of the GSIS and on
pecuniary accountability arising from or caused or
account of its receivables from any government or private
occasioned by his exercise or performance of his official
entity;
functions or duties, or incurred relative to or in connection
with his position or work except when his monetary (l) to invest, own or otherwise participate in equity in any
liability, contractual or otherwise, is in favor of the GSIS. establishment, firm or entity;
“G. ADMINISTRATION (m) to approve appointments in the GSIS except
appointments to positions which are policy determining,
“SECTION 40. Implementing Body. — The Government
primarily confidential or highly technical in nature
Service Insurance System as created under
according to the Civil Service rules and regulations:
Commonwealth Act No. 186 shall implement the
Provided, That all positions in the GSIS shall be governed
provisions of this Act.
by a compensation and position classification system and
“SECTION 41. Powers and Functions of the GSIS. — The qualifications standards approved by the GSIS Board of
GSIS shall exercise the following powers and functions: Trustees based on a comprehensive job analysis and audit
of actual duties and responsibilities: Provided, further,
(a) to formulate, adopt, amend and/or rescind such rules
That the compensation plan shall be comparable with the
and regulations as may be necessary to carry out the
prevailing compensation plans in the private sector and
provisions and purposes of this Act, as well as the effective
shall be subject to the periodic review by the Board no
exercise of the powers and functions, and the discharge of
more than once every four (4) years without prejudice to
duties and responsibilities of the GSIS, its officers and
yearly merit reviews or increases based on productivity
employees;
and profitability;
(b) to adopt or approve the annual and supplemental
(n) to design and adopt an Early Retirement Incentive Plan
budget of receipts and expenditures including salaries and
(ERIP) and/or financial assistance for the purpose of
allowances of the GSIS personnel; to authorize such capital
retirement for its own personnel;
and operating expenditures and disbursements of the GSIS
as may be necessary and proper for the effective (o) to fix and periodically review and adjust the rates of
management and operation of the GSIS; interest and other terms and conditions for loans and
credits extended to members or other persons, whether
(c) to invest the funds of the GSIS, directly or indirectly, in
natural or juridical;
accordance with the provisions of this Act;
(p) to enter into agreement with the Social Security
(d) to acquire, utilize or dispose of, in any manner
System or any other entity, enterprise, corporation or
recognized by law, real or personal property in the
partnership for the benefit of members transferring from
Philippines or elsewhere necessary to carry out the
one system to another subject to the provision of Republic
purposes of this Act;
Act No. 7699, otherwise known as the Portability Law;
(e) to conduct continuing actuarial and statistical studies
(q) to be able to float proper instrument to liquefy long-
and valuations to determine the financial condition of the
term maturity by pooling funds for short-term secondary
GSIS and taking into consideration such studies and
market;
valuations and the limitations herein provided, re-adjust
the benefits, contributions, premium rates, interest rates (r) to submit annually, not later than June 30, a public
or the allocation or re-allocation of the funds to the report to the President of the Philippines and the Congress
contingencies covered; of the Philippines regarding its activities in the
administration and enforcement of this Act during the
(f) to have the power of succession;
preceding year including information and
(g) to sue and be sued; recommendations on broad policies for the development
and perfection of the programs of the GSIS;
(h) to enter into, make, perform and carry out contracts of
every kind and description with any person, firm or (s) to maintain a provident fund, which consists of
association or corporation, domestic or foreign; contributions made by both the GSIS and its officials and
employees and their earnings, for the payment of benefits
(i) to carry on any other lawful business whatsoever in to such officials and employees or their heirs under such
pursuance of, or in connection with the provisions of this terms and conditions as it may prescribe;
Act;
(t) to approve and adopt guidelines affecting investments,
(j) to have one or more offices in and outside of the insurance coverage of government properties, settlement
Philippines, and to conduct its business and exercise its of claims, disposition of acquired assets, privatization or
powers throughout and in any part of the Republic of the
expansion of subsidiaries, development of housing office for six (6) years without reappointment, or until
projects, increased benefit and loan packages to members, their successors are duly appointed and qualified. Vacancy,
and the enforcement of the provisions of this Act; other than through the expiration of the term, shall be
filled for the unexpired term only. The members of the
(u) any provision of law to the contrary notwithstanding,
Board shall be entitled to a per diem of Two thousand five
to authorize the payment of extra remuneration to the
hundred pesos (P2,500) for each board meeting actually
officials and employees directly involved in the collection
attended by them, but not to exceed Ten thousand pesos
and/or remittance of contributions, loan repayments, and
(P10,000) a month and reasonable transportation and
other monies due to the GSIS at such rates and under such
representation allowances as may be fixed by the Board.
conditions as it may adopt. Provided, That the best
interest of the GSIS shall be observed thereby; “SECTION 43. Powers and Functions of the Board of
Trustees. — The Board of Trustees shall have the following
(v) to determine, fix and impose interest upon unpaid
powers and functions:
premiums due from employers and employees;
“(a) to formulate the policies, guidelines and programs to
(w) to ensure the collection or recovery of all
effectively carry out the purposes of this Act;
indebtedness, liabilities and/or accountabilities, including
unpaid premiums or contributions in favor of the GSIS “(b) to promulgate such rules and regulations as may be
arising from any cause or source whatsoever, due from all necessary or proper for the effective exercise of the
obligors, whether public or private. The Board shall powers and functions as well as the discharge of the duties
demand payment or settlement of the obligations referred and responsibilities of the GSIS, its officers and employees;
to herein within thirty (30) days from the date the
“(c) upon the recommendation of the President and
obligation becomes due, and in the event of failure or
General Manager, to approve the annual and
refusal of the obligor or debtor to comply with the
supplemental budget of receipts and expenditures of the
demand, to initiate or institute the necessary or proper
GSIS, and to authorize such operating and capital
actions or suits, criminal, civil or administrative or
expenditures and disbursements of the GSIS as may be
otherwise, before the courts, tribunals, commissions,
necessary or proper for the effective management,
boards, or bodies of proper jurisdiction within thirty (30)
operation and administration of the GSIS;
days reckoned from the expiry date of the period fixed in
the demand within which to pay or settle the account; “(d) upon the recommendation of the President and
General Manager, to approve the GSIS’ organizational and
(x) to design and implement programs that will promote
administrative structures and staffing pattern, and to
and mobilize savings and provide additional resources for
establish, fix, review, revise and adjust the appropriate
social security expansion and at the same time afford
compensation package for the officers and employees of
individual members appropriate returns on their
the GSIS with reasonable allowances, incentives, bonuses,
savings/investments. The programs shall be so designed as
privileges and other benefits as may be necessary or
to spur socio-economic take-off and maintain continued
proper for the effective management, operation and
growth; and
administration of the GSIS, which shall be exempt from
(y) to exercise such powers and perform such other acts as Republic Act No. 6758, otherwise known as the Salary
may be necessary, useful, incidental or auxiliary to carry Standardization Law and Republic Act No. 7430, otherwise
out the provisions of this Act, or to attain the purposes known as the Attrition Law;
and objectives of this Act.
“(e) to fix and periodically review and adjust the rates of
“SECTION 42. The Board of Trustees; Its Composition; interest and other terms and conditions for loans and
Tenure and Compensation. — The corporate powers and credits extended to its members or other persons,
functions of the GSIS shall be vested in and exercised by whether natural or juridical;
the Board of Trustees composed of the President and
“(f) the provision of any law to the contrary
General Manager of the GSIS and eight (8) other members
notwithstanding, to compromise or release, in whole or in
to be appointed by the President of the Philippines, one
part, any claim or settle liability to the GSIS, regardless of
(1) of whom shall be either the President of the Philippine
the amount involved, under such terms and conditions as
Public School Teachers Association (PPSTA) or the
it may impose for the best interest of the GSIS;
President of the Philippine Association of School
Superintendents (PASS), another two (2) shall represent “(g) to approve and adopt guidelines affecting
the leading organizations or associations of government investments, insurance coverage of government
employees/retirees, another four (4) from the banking, properties, settlement of claims, disposition of acquired
finance, investment, and insurance sectors, and one (1) assets, development of housing projects, increased benefit
recognized member of the legal profession who at the and loan packages to members, and the enforcement of
time of appointment is also a member of the GSIS. The the provisions of this Act;
Trustees shall elect from among themselves a Chairman
while the President and General Manager of the GSIS shall “(h) to determine, fix and impose interest upon unpaid or
automatically be the vice-chairman. unremitted premiums and/or contributions; and

The Trustees, except the President and General Manager


who shall cease as trustee upon his separation, shall hold
“(i) to do and perform any and all acts necessary, proper or shall make an examination of the financial condition and
incidental to the attainment of the purposes and methods of transacting business of the GSIS at least once
objectives of this Act. every three (3) years and the report of said examination
shall be submitted to the Board of Trustees and copies
“SECTION 44. Appointment, Qualifications, and
thereof be furnished the Office of the President of the
Compensation of the President and General Manager and
Philippines and the two Houses of the Congress of the
of Other Personnel. — The President and General Manager
Philippines within five (5) days after the close of
of the GSIS shall be its Chief Executive Officer and shall be
examination: Provided, however, That for each
appointed by the President of the Philippines. He shall be a
examination the GSIS shall pay the office of the Insurance
person with management and investments expertise
Commissioner an amount equal to the actual expenses
necessary for the effective performance of his duties and
incurred by the said office in the conduct of the
functions under this Act.
examination, including the salaries of the examiners and of
“The GSIS President and General Manager shall be assisted the actuary of such examination for the actual time spent.
by one or more executive vice-presidents, senior vice-
“H. GENERAL PROVISIONS
presidents, vice-presidents and managers in addition to
the usual supervisory and rank and file positions who shall “SECTION 49. Dispensation of Social Insurance Benefits. —
be appointed and removed by the President and General (a) The GSIS shall pay the retirement benefits to the
Manager with the approval of the Board, in accordance employee on his last day of service in the government:
with the existing Civil Service rules and regulations. Provided, That all requirements are submitted to the GSIS
within a reasonable period prior to the effective date of
“SECTION 45. Powers and Duties of the President and
the retirement;
General Manager. — The President and General Manager
of the GSIS shall among others, execute and administer “(b) The GSIS shall discontinue the processing and
the policies and resolutions approved by the board and adjudication of retirement claims under R.A. No. 1616
direct and supervise the administration and operations of except refund of retirement premium and R.A. No. 910.
the GSIS. The President and General Manager, subject to Instead, all agencies concerned shall process and pay the
the approval of the Board, shall appoint the personnel of gratuities of their employees. The Board shall adopt the
the GSIS, remove, suspend or otherwise discipline them proper rules and procedures for the implementation of
for cause, in accordance with existing Civil Service rules this provision.
and regulations, and prescribe their duties and
“SECTION 50. Development and disposition of Acquired
qualifications to the end that only competent persons may
Assets. — The GSIS shall have the right to develop and
be employed.
dispose of its acquired assets obtained in the ordinary
“SECTION 46. Auditor. — (a) The Chairman of the course of its business. To add value to, improve
Commission on Audit shall be the ex officio auditor of the profitability on, and/or enhance the marketability of an
GSIS. For this purpose, he may appoint a representative acquired asset, the GSIS may further develop/renovate the
who shall be the Auditor of the GSIS, and the necessary same either with its own capital or through a joint venture
personnel to assist said representative in the performance arrangement with private companies or individuals.
of his duties.
“The GSIS may sell its acquired assets in accordance with
“(b) The Chairman of the Commission on Audit or his existing Commission on Audit (COA) rules and regulations
authorized representative, shall submit to the Board soon for an amount not lower than the current market value of
after the close of each calendar year, an audited the property. For this purpose, the GSIS shall conduct an
statement showing the financial condition and progress of annual appraisal of its property or acquired assets to
the GSIS for the calendar year just ended. determine its current market value. All notices of sale shall
be published in newspapers of general circulation.
“SECTION 47. Legal Counsel. — The Government
Corporate Counsel shall be the legal adviser and “No injunction or restraining order issued by any court,
consultant of the GSIS, but the GSIS may assign to the commission, tribunal or office shall bar, impede or delay
Office of the Government Corporate Counsel (OGCC) cases the sale and disposition by the GSIS of its acquired assets
for legal action or trial, issues for legal opinions, except on questions of ownership and national or public
preparation and review of contracts/agreements and interest.
others, as the GSIS may decide or determine from time to
“SECTION 51. Government Assistance to the GSIS. — The
time: Provided, however, That the present legal services
GSIS may call upon any employer for such assistance as
group in the GSIS shall serve as its in-house legal counsel.
may be necessary in the discharge of its duties and
“The GSIS may, subject to approval by the proper court, functions.
deputize any personnel of the legal service group to act as
“L. PENAL PROVISIONS
special sheriff in the enforcement of writs and processes
issued by the court, quasi-judicial agencies or “SECTION 52. Penalty. — (a) Any person found to have
administrative bodies in cases involving the GSIS. participated directly or indirectly in the commission of
fraud, collusion, falsification, or misrepresentation in any
“SECTION 48. Powers of the Insurance Commission. — The
transaction with the GSIS whether for him or for some
Insurance Commissioner or his authorized representatives
other persons, shall suffer the penalties provided for in “(g) The heads of the offices of the national government,
Article 172 of the Revised Penal Code. its political subdivisions, branches, agencies and
instrumentalities, including government-owned or
“(b) Whoever shall obtain or receive any money or check
controlled corporations and government financial
invoking any provision of this Act or any agreement
institutions, and the personnel of such offices who are
thereunder, without being entitled thereto with the intent
involved in the collection of premium contributions, loan
to defraud any member, any employer, the GSIS, or any
amortization and other accounts due the GSIS who shall
third party, shall be punished by a fine of not less than Five
fail, refuse or delay the payment, turnover, remittance or
thousand pesos (P5,000.00) nor more than Twenty
delivery of such accounts to the GSIS within thirty (30)
thousand pesos (P20,000.00) or by imprisonment of not
days from the time that the same shall have been due and
less than six (6) years and one (1) day to twelve (12) years,
demandable shall, upon conviction by final judgment,
or both, at the discretion of the court.
suffer the penalties of imprisonment of not less than one
“(c) Whoever fails or refuses to comply with the provisions (1) year nor more than five (5) years and a fine of not less
of this Act or with the rules and regulations adopted by than Ten thousand pesos (P10,000.00) nor more than
the GSIS shall be punished by a fine of not less than Five Twenty thousand pesos (P20,000.00), and in addition shall
thousand pesos (P5,000.00) nor more than Twenty suffer absolute perpetual disqualification from holding
thousand pesos (P20,000.00), or by imprisonment of not public office and from practicing any profession or calling
less than six (6) years and one (1) day to twelve (12) years, licensed by the government.
or both, at the discretion of the court.
“(h) The officers and/or personnel referred to in paragraph
“(d) The treasurer, finance officer, cashier, disbursing (g) of this section shall be liable not only criminally but also
officer, budget officer or other official or employee who civilly to the GSIS or to the employee or member
fails to include in the annual budget the amount concerned in the form of damages, including surcharges
corresponding to the employer and employee and interests.
contributions, or who fails or refuses or delays by more
“(i) For the charges or complaints referred to in paragraph
than thirty (30) days from the time such amount becomes
(g) of this Section, the liabilities therein set forth shall be
due and demandable, or to deduct the monthly
construed as waiver of the State of its immunity from suit,
contributions of the employee shall, upon conviction by
hence, the above-mentioned officials and/or personnel
final judgment, suffer the penalties of imprisonment from
may not invoke the defense of non-suability of the State.
six (6) months and one (1) day to six (6) years, and a fine of
not less than Three thousand pesos (P3,000.00) but not “(j) Failure of the Members of the GSIS Board, including
more than Six thousand pesos (P6,000.00), and in addition the chairman and the vice-chairman, to comply with the
shall suffer absolute perpetual disqualification from provisions of paragraph (w) of Section 41 hereof, shall
holding public office and from practicing any profession or subject them to imprisonment of not less than six (6)
calling licensed by the government. months nor more than one (1) year or a fine of not less
than Five thousand pesos (P5,000.00) nor more than Ten
“(e) Any employee or member who receives or keeps fund
thousand pesos (P10,000.00) without prejudice to any civil
or property belonging, payable or deliverable to the GSIS
or administrative liability which may also arise therefrom.
and appropriates the same, or takes or misappropriates or
uses the same to any purpose other than that authorized “Criminal actions arising from violations of the provisions
by this Act, or permits another person to take, of this Act may be commenced by the GSIS or by the
misappropriate or use said fund or property by expressly aggrieved member, either under this Act or, in appropriate
consenting thereto, or through abandonment or cases, under the Revised Penal Code.
negligence, or is otherwise guilty of the misappropriation
“SECTION 53. Implementing Rules and Regulations. — The
of said fund or property, in whole or in part, shall suffer
implementing rules and regulations to carry out the
the penalties provided in Article 217 of the Revised Penal
provisions of this Act shall be adopted and promulgated by
Code, and in addition shall suffer absolute perpetual
the GSIS not later than ninety (90) days after the approval
disqualification from holding public office and from
of this Act.
practicing any profession or calling licensed by the
government. “SECTION 54. Non-impairment of Benefits, Powers,
Jurisdiction, Rights, Privileges, Functions and Activities. —
“(f) Any employee, who after deducting the monthly
Nothing in this Act shall be construed to repeal, amend or
contribution or loan amortization from a member’s
limit any provision of existing laws. Presidential Decrees
compensation, fails to remit the same to the GSIS within
and Letters of Instructions, not otherwise specifically
thirty (30) days from the date they should have been
inconsistent with the provisions of this Act.
remitted under Section 6(a) shall be presumed to have
misappropriated such contribution or loan amortization “SECTION 55. Exclusiveness of Benefits. — Whenever
and shall suffer the penalties provided in Article 315 of the other laws provide similar benefits for the same
Revised Penal Code, and in addition shall suffer absolute contingencies covered by this Act, the member who
perpetual disqualification from holding public office and qualifies to the benefits shall have the option to choose
from practicing any profession or calling licensed by the which benefits will be paid to him. However, if the benefits
government. provided by the law chosen are less than the benefits
provided under this Act, the GSIS shall pay only the
difference.

“SECTION 56. Appropriations. — The amount necessary to


carry out the provisions of this Act shall be included in the
respective budgets of the agencies in the national
government obligation program of the year following its
enactment into law and thereafter.”

SECTION 2. Separability Clause. — Should any provision of


this Act or any part thereof be declared invalid, the other
provisions, so far as they are separable from the invalid
ones, shall remain in force and effect.

SECTION 3. Repealing Clause. — All laws and any other law


or parts of law specifically inconsistent herewith are
hereby repealed or modified accordingly: Provided, That
the rights under existing laws, rules and regulations vested
upon or acquired by an employee who is already in the
service as of the effectivity of this Act shall remain in force
and effect: Provided, further, That subsequent to the
effectivity of this Act, 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.

SECTION 4. Effectivity. — 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.

Approved: May 30, 1997


REPUBLIC ACT NO. 8371 a) Ancestral Domains — Subject to Section 56
hereof, refer to all areas generally belonging to ICCs/IPs
AN ACT TO RECOGNIZE, PROTECT AND PROMOTE comprising lands, inland waters, coastal areas, and natural
THE RIGHTS OF INDIGENOUS CULTURAL resources therein, held under a claim of ownership,
COMMUNITIES/INDIGENOUS PEOPLES, CREATING occupied or possessed by ICCs/IPs, by themselves or
A NATIONAL COMMISSION ON INDIGENOUS through their ancestors, communally or individually since
PEOPLES, ESTABLISHING IMPLEMENTING time immemorial, continuously to the present except when
MECHANISMS, APPROPRIATING FUNDS interrupted by war, force majeure or displacement by force,
THEREFOR, AND FOR OTHER PURPOSES deceit, stealth or as a consequence of government projects
CHAPTER I or any other voluntary dealings entered into by government
and private individuals/corporations, and which are
General Provisions necessary to ensure their economic, social and cultural
welfare. It shall include ancestral lands, forests, pasture,
SECTION 1. Short Title. — This Act shall be
residential, agricultural, and other lands individually owned
known as “The Indigenous Peoples’ Rights Act of 1997”.
whether alienable and disposable or otherwise, hunting
SECTION 2. Declaration of State Policies. — The grounds, burial grounds, worship areas, bodies of water,
State shall recognize and promote all the rights of mineral and other natural resources, and lands which may
Indigenous Cultural Communities/Indigenous Peoples no longer be exclusively occupied by ICCs/IPs but from
(ICCs/IPs) hereunder enumerated within the framework of which they traditionally had access to for their subsistence
the Constitution: and traditional activities, particularly the home ranges of
ICCs/IPs who are still nomadic and/or shifting cultivators;
a) The State shall recognize and promote the rights
of ICCs/IPs within the framework of national unity and b) Ancestral Lands — Subject to Section 56 hereof,
development; refers to land occupied, possessed and utilized by
individuals, families and clans who are members of the
b) The State shall protect the rights of ICCs/IPs to ICCs/IPs since time immemorial, by themselves or through
their ancestral domains to ensure their economic, social and their predecessors-in-interest, under claims of individual or
cultural well being and shall recognize the applicability of traditional group ownership, continuously, to the present
customary laws governing property rights or relations in except when interrupted by war, force majeure or
determining the ownership and extent of ancestral domain; displacement by force, deceit, stealth, or as a consequence
c) The State shall recognize, respect and protect the of government projects and other voluntary dealings
rights of ICCs/IPs to preserve and develop their cultures, entered into by government and private
traditions and institutions. It shall consider these rights in individuals/corporations, including, but not limited to,
the formulation of national laws and policies; residential lots, rice terraces or paddies, private forests,
swidden farms and tree lots;
d) The State shall guarantee that members of the
ICCs/IPs regardless of sex, shall equally enjoy the full c) Certificate of Ancestral Domain Title — refers
measure of human rights and freedoms without distinction to a title formally recognizing the rights of possession and
or discrimination; ownership of ICCs/IPs over their ancestral domains
identified and delineated in accordance with this law;
e) The State shall take measures, with the
participation of the ICCs/IPs concerned, to protect their d) Certificate of Ancestral Lands Title — refers to
rights and guarantee respect for their cultural integrity, and a title formally recognizing the rights of ICCs/IPs over their
to ensure that members of the ICCs/IPs benefit on an equal ancestral lands;
footing from the rights and opportunities which national e) Communal Claims — refer to claims on land,
laws and regulations grant to other members of the resources and rights thereon, belonging to the whole
population; and community within a defined territory;
f) The State recognizes its obligations to respond f) Customary Laws — refer to a body of written
to the strong expression of the ICCs/IPs for cultural and/or unwritten rules, usages, customs and practices
integrity by assuring maximum ICC/IP participation in the traditionally and continually recognized, accepted and
direction of education, health, as well as other services of observed by respective ICCs/IPs;
ICCs/IPs, in order to render such services more responsive
to the needs and desires of these communities. g) Free and Prior Informed Consent — as used in
this Act shall mean the consensus of all members of the
Towards these ends, the State shall institute and establish ICCs/IPs to be determined in accordance with their
the necessary mechanisms to enforce and guarantee the respective customary laws and practices, free from any
realization of these rights, taking into consideration their external manipulation, interference and coercion, and
customs, traditions, values, beliefs, interests and obtained after fully disclosing the intent and scope of the
institutions, and to adopt and implement measures to activity, in a language and process understandable to the
protect their rights to their ancestral domains. community;
CHAPTER II h) Indigenous Cultural Communities/Indigenous
Definition of Terms Peoples — refer to a group of people or homogenous
societies identified by self-ascription and ascription by
SECTION 3. Definition of Terms. — For purposes others, who have continuously lived as organized
of this Act, the following terms shall mean: community on communally bounded and defined territory,
and who have, under claims of ownership since time
immemorial, occupied, possessed and utilized such operation of customary law or inherited from their
territories, sharing common bonds of language, customs, ancestors, in accordance with their customs and traditions.
traditions and other distinctive cultural traits, or who have,
through resistance to political, social and cultural inroads of CHAPTER III
colonization, non-indigenous religions and cultures, Rights to Ancestral Domains
became historically differentiated from the majority of
Filipinos. ICCs/IPs shall likewise include peoples who are SECTION 4. Concept of Ancestral Lands/Domains.
regarded as indigenous on account of their descent from the — Ancestral lands/domains shall include such concepts of
populations which inhabited the country, at the time of territories which cover not only the physical environment
conquest or colonization, or at the time of inroads of non- but the total environment including the spiritual and
indigenous religions and cultures, or the establishment of cultural bonds to the areas which the ICCs/IPs possess,
present state boundaries, who retain some or all of their occupy and use and to which they have claims of
own social, economic, cultural and political institutions, but ownership.
who may have been displaced from their traditional
SECTION 5. Indigenous Concept of Ownership. —
domains or who may have resettled outside their ancestral
Indigenous concept of ownership sustains the view that
domains;
ancestral domains and all resources found therein shall
i) Indigenous Political Structures — refer to serve as the material bases of their cultural integrity. The
organizational and cultural leadership systems, institutions, indigenous concept of ownership generally holds that
relationships, patterns and processes for decision-making ancestral domains are the ICC’s/IP’s private but
and participation, identified by ICCs/IPs such as, but not community property which belongs to all generations and
limited to, Council of Elders, Council of Timuays, Bodong therefore cannot be sold, disposed or destroyed. It likewise
Holders, or any other tribunal or body of similar nature; covers sustainable traditional resource rights.

j) Individual Claims — refer to claims on land and SECTION 6. Composition of Ancestral


rights thereon which have been devolved to individuals, Lands/Domains. — Ancestral lands and domains shall
families and clans including, but not limited to, residential consist of all areas generally belonging to ICCs/IPs as
lots, rice terraces or paddies and tree lots; referred under Sec. 3, items (a) and (b) of this Act.

k) National Commission on Indigenous Peoples SECTION 7. Rights to Ancestral Domains. — The


(NCIP) — refers to the office created under this Act, which rights of ownership and possession of ICCs/IPs to their
shall be under the Office of the President, and which shall ancestral domains shall be recognized and protected. Such
be the primary government agency responsible for the rights shall include:
formulation and implementation of policies, plans and
a) Right of Ownership. — The right to claim
programs to recognize, protect and promote the rights of
ownership over lands, bodies of water traditionally and
ICCs/IPs;
actually occupied by ICCs/IPs, sacred places, traditional
l) Native Title — refers to pre-conquest rights to hunting and fishing grounds, and all improvements made
lands and domains which, as far back as memory reaches, by them at any time within the domains;
have been held under a claim of private ownership by
b) Right to Develop Lands and Natural Resources.
ICCs/IPs, have never been public lands and are thus
— Subject to Section 56 hereof, right to develop, control
indisputably presumed to have been held that way since
and use lands and territories traditionally occupied, owned,
before the Spanish Conquest;
or used; to manage and conserve natural resources within
m) Nongovernment Organization — refers to a the territories and uphold the responsibilities for future
private, nonprofit voluntary organization that has been generations; to benefit and share the profits from allocation
organized primarily for the delivery of various services to and utilization of the natural resources found therein; the
the ICCs/IPs and has an established track record for right to negotiate the terms and conditions for the
effectiveness and acceptability in the community where it exploration of natural resources in the areas for the purpose
serves; of ensuring ecological, environmental protection and the
conservation measures, pursuant to national and customary
n) People’s Organization — refers to a private, laws; the right to an informed and intelligent participation
nonprofit voluntary organization of members of an ICC/IP in the formulation and implementation of any project,
which is accepted as representative of such ICCs/IPs; government or private, that will affect or impact upon the
o) Sustainable Traditional Resource Rights — refer ancestral domains and to receive just and fair compensation
to the rights of ICCs/IPs to sustainably use, manage, protect for any damages which they may sustain as a result of the
and conserve a) land, air, water, and minerals; b) plants, project; and the right to effective measures by the
animals and other organisms; c) collecting, fishing and government to prevent any interference with, alienation and
hunting grounds; d) sacred sites; and e) other areas of encroachment upon these rights;
economic, ceremonial and aesthetic value in accordance c) Right to Stay in the Territories. — The right to
with their indigenous knowledge, beliefs, systems and stay in the territory and not to be removed therefrom. No
practices; and ICCs/IPs will be relocated without their free and prior
p) Time Immemorial — refers to a period of time informed consent, nor through any means other than
when as far back as memory can go, certain ICCs/IPs are eminent domain. Where relocation is considered necessary
known to have occupied, possessed in the concept of as an exceptional measure, such relocation shall take place
owner, and utilized a defined territory devolved to them, by only with the free and prior informed consent of the
ICCs/IPs concerned and whenever possible, they shall be
guaranteed the right to return to their ancestral domains, as domain by protecting the flora and fauna, watershed areas,
soon as the grounds for relocation cease to exist. When and other reserves;
such return is not possible, as determined by agreement or
through appropriate procedures, ICCs/IPs shall be provided b) Restore Denuded Areas. — To actively initiate,
in all possible cases with lands of quality and legal status at undertake and participate in the reforestation of denuded
least equal to that of the land previously occupied by them, areas and other development programs and projects subject
suitable to provide for their present needs and future to just and reasonable remuneration; and
development. Persons thus relocated shall likewise be fully c) Observe Laws. — To observe and comply with
compensated for any resulting loss or injury; the provisions of this Act and the rules and regulations for
d) Right in Case of Displacement. — In case its effective implementation.
displacement occurs as a result of natural catastrophes, the SECTION 10. Unauthorized and Unlawful Intrusion.
State shall endeavor to resettle the displaced ICCs/IPs in — Unauthorized and unlawful intrusion upon, or use of any
suitable areas where they can have temporary life support portion of the ancestral domain, or any violation of the
systems: Provided, That the displaced ICCs/IPs shall have rights hereinbefore enumerated, shall be punishable under
the right to return to their abandoned lands until such time this law. Furthermore, the Government shall take measures
that the normalcy and safety of such lands shall be to prevent non-ICCs/IPs from taking advantage of the
determined: Provided, further, That should their ancestral ICCs/IPs customs or lack of understanding of laws to
domain cease to exist and normalcy and safety of the secure ownership, possession of land belonging to said
previous settlements are not possible, displaced ICCs/IPs ICCs/IPs.
shall enjoy security of tenure over lands to which they have
been resettled: Provided, furthermore, That basic services SECTION 11. Recognition of Ancestral Domain
and livelihood shall be provided to them to ensure that their Rights. — The rights of ICCs/IPs to their ancestral domains
needs are adequately addressed; by virtue of Native Title shall be recognized and respected.
Formal recognition, when solicited by ICCs/IPs concerned,
e) Right to Regulate Entry of Migrants. — Right to shall be embodied in a Certificate of Ancestral Domain
regulate the entry of migrant settlers and organizations into Title (CADT), which shall recognize the title of the
the domains; concerned ICCs/IPs over the territories identified and
f) Right to Safe and Clean Air and Water. — For delineated.
this purpose, the ICCs/IPs shall have access to integrated SECTION 12. Option to Secure Certificate of Title
systems for the management of their inland waters and air Under Commonwealth Act 141, as amended, or the Land
space; Registration Act 496. — Individual members of cultural
g) Right to Claim Parts of Reservations. — The communities, with respect to their individually-owned
right to claim parts of the ancestral domains which have ancestral lands who, by themselves or through their
been reserved for various purposes, except those reserved predecessors-in-interest, have been in continuous
and intended for common public welfare and service; and possession and occupation of the same in the concept of
owner since time immemorial or for a period of not less
h) Right to Resolve Conflict. — Right to resolve than thirty (30) years immediately preceding the approval
land conflicts in accordance with customary laws of the of this Act and uncontested by the members of the same
area where the land is located, and only in default thereof ICCs/IPs shall have the option to secure title to their
shall the complaints be submitted to amicable settlement ancestral lands under the provisions of Commonwealth Act
and to the Courts of Justice whenever necessary. 141, as amended, or the Land Registration Act 496.

SECTION 8. Rights to Ancestral Lands. — The For this purpose, said individually-owned ancestral lands,
right of ownership and possession of the ICCs/IPs to their which are agricultural in character and actually used for
ancestral lands shall be recognized and protected. agricultural, residential, pasture, and tree farming purposes,
including those with a slope of eighteen percent (18%) or
a) Right to transfer land/property. — Such right more, are hereby classified as alienable and disposable
shall include the right to transfer land or property rights agricultural lands.
to/among members of the same ICCs/IPs, subject to
customary laws and traditions of the community concerned. The option granted under this section shall be exercised
within twenty (20) years from the approval of this Act.
b) Right to Redemption. — In cases where it is
shown that the transfer of land/property rights by virtue of CHAPTER IV
any agreement or devise, to a non-member of the concerned
ICCs/IPs is tainted by the vitiated consent of the ICCs/IPs, Right to Self-Governance and Empowerment
or is transferred for an unconscionable consideration or SECTION 13. Self-Governance. — The State
price, the transferor ICC/IP shall have the right to redeem recognizes the inherent right of ICCs/IPs to self-
the same within a period not exceeding fifteen (15) years governance and self-determination and respects the
from the date of transfer. integrity of their values, practices and institutions.
SECTION 9. Responsibilities of ICCs/IPs to their Consequently, the State shall guarantee the right of
Ancestral Domains. — ICCs/IPs occupying a duly certified ICCs/IPs to freely pursue their economic, social and
ancestral domain shall have the following responsibilities: cultural development.

a) Maintain Ecological Balance. — To preserve, SECTION 14. Support for Autonomous Regions. —
restore, and maintain a balanced ecology in the ancestral The State shall continue to strengthen and support the
autonomous regions created under the Constitution as they
may require or need. The State shall likewise encourage shall, with due recognition of their distinct characteristics
other ICCs/IPs not included or outside Muslim Mindanao and identity, accord to the members of the ICCs/IPs the
and the Cordilleras to use the form and content of their rights, protections and privileges enjoyed by the rest of the
ways of life as may be compatible with the fundamental citizenry. It shall extend to them the same employment
rights defined in the Constitution of the Republic of the rights, opportunities, basic services, educational and other
Philippines and other internationally recognized human rights and privileges available to every member of the
rights. society. Accordingly, the State shall likewise ensure that
the employment of any form of force or coercion against
SECTION 15. Justice System, Conflict Resolution ICCs/IPs shall be dealt with by law.
Institutions, and Peace Building Processes. — The
ICCs/IPs shall have the right to use their own commonly The State shall ensure that the fundamental human rights
accepted justice systems, conflict resolution institutions, and freedoms as enshrined in the Constitution and relevant
peace building processes or mechanisms and other international instruments are guaranteed also to indigenous
customary laws and practices within their respective women. Towards this end, no provision in this Act shall be
communities and as may be compatible with the national interpreted so as to result in the diminution of rights and
legal system and with internationally recognized human privileges already recognized and accorded to women
rights. under existing laws of general application.

SECTION 16. Right to Participate in Decision- SECTION 22. Rights During Armed Conflict. —
Making. — ICCs/IPs have the right to participate fully, if ICCs/IPs have the right to special protection and security in
they so choose, at all levels of decision-making in matters periods of armed conflict. The State shall observe
which may affect their rights, lives and destinies through international standards, in particular, the Fourth Geneva
procedures determined by them as well as to maintain and Convention of 1949, for the protection of civilian
develop their own indigenous political structures. populations in circumstances of emergency and armed
Consequently, the State shall ensure that the ICCs/IPs shall conflict, and shall not recruit members of the ICCs/IPs
be given mandatory representation in policy-making bodies against their will into the armed forces, and in particular,
and other local legislative councils. for use against other ICCs/IPs; nor recruit children of
ICCs/IPs into the armed forces under any circumstance; nor
SECTION 17. Right to Determine and Decide force indigenous individuals to abandon their lands,
Priorities for Development. — The ICCs/IPs shall have the territories and means of subsistence, or relocate them in
right to determine and decide their own priorities for special centers for military purposes under any
development affecting their lives, beliefs, institutions, discriminatory condition.
spiritual well-being, and the lands they own, occupy or use.
They shall participate in the formulation, implementation SECTION 23. Freedom from Discrimination and
and evaluation of policies, plans and programs for national, Right to Equal Opportunity and Treatment. — It shall be
regional and local development which may directly affect the right of the ICCs/IPs to be free from any form of
them. discrimination, with respect to recruitment and conditions
of employment, such that they may enjoy equal
SECTION 18. Tribal Barangays. — The ICCs/IPs opportunities for admission to employment, medical and
living in contiguous areas or communities where they form social assistance, safety as well as other occupationally-
the predominant population but which are located in related benefits, informed of their rights under existing
municipalities, provinces or cities where they do not labor legislation and of means available to them for redress,
constitute the majority of the population, may form or not subject to any coercive recruitment systems, including
constitute a separate barangay in accordance with the Local bonded labor and other forms of debt servitude; and equal
Government Code on the creation of tribal barangays. treatment in employment for men and women, including
SECTION 19. Role of Peoples Organizations. — The the protection from sexual harassment.
State shall recognize and respect the role of independent Towards this end, the State shall, within the framework of
ICCs/IPs organizations to enable the ICCs/IPs to pursue national laws and regulations, and in cooperation with the
and protect their legitimate and collective interests and ICCs/IPs concerned, adopt special measures to ensure the
aspirations through peaceful and lawful means. effective protection with regard to the recruitment and
SECTION 20. Means for Development/Empowerment conditions of employment of persons belonging to these
of ICCs/IPs. — The Government shall establish the means communities, to the extent that they are not effectively
for the full development/empowerment of the ICCs/IPs protected by laws applicable to workers in general.
own institutions and initiatives and, where necessary, ICCs/IPs shall have the right to association and freedom for
provide the resources needed therefor. all trade union activities and the right to conclude collective
CHAPTER V bargaining agreements with employers’ organizations.
They shall likewise have the right not to be subject to
Social Justice and Human Rights working conditions hazardous to their health, particularly
through exposure to pesticides and other toxic substances.
SECTION 21. Equal Protection and Non-
discrimination of ICCs/IPs. — Consistent with the equal SECTION 24. Unlawful Acts Pertaining to
protection clause of the Constitution of the Republic of the Employment. — It shall be unlawful for any person:
Philippines, the Charter of the United Nations, the
Universal Declaration of Human Rights including the a) To discriminate against any ICC/IP with respect
Convention on the Elimination of Discrimination Against to the terms and conditions of employment on account of
Women and International Human Rights Law, the State their descent. Equal remuneration shall be paid to ICC/IP
and non-ICC/IP for work of equal value; and
b) To deny any ICC/IP employee any right or learning. Indigenous children/youth shall have the right to
benefit herein provided for or to discharge them for the all levels and forms of education of the State.
purpose of preventing them from enjoying any of the rights
or benefits provided under this Act. SECTION 31. Recognition of Cultural Diversity. —
The State shall endeavor to have the dignity and diversity
SECTION 25. Basic Services. — The ICCs/IPs have of the cultures, traditions, histories and aspirations of the
the right to special measures for the immediate, effective ICCs/IPs appropriately reflected in all forms of education,
and continuing improvement of their economic and social public information and cultural-educational exchange.
conditions, including in the areas of employment, Consequently, the State shall take effective measures, in
vocational training and retraining, housing, sanitation, consultation with ICCs/IPs concerned, to eliminate
health and social security. Particular attention shall be paid prejudice and discrimination and to promote tolerance,
to the rights and special needs of indigenous women, understanding and good relations among ICCs/IPs and all
elderly, youth, children and differently-abled persons. segments of society. Furthermore, the Government shall
Accordingly, the State shall guarantee the right of ICCs/IPs take effective measures to ensure that the State-owned
to government’s basic services which shall include, but not media duly reflect indigenous cultural diversity. The State
limited to, water and electrical facilities, education, health, shall likewise ensure the participation of appropriate
and infrastructure. indigenous leaders in schools, communities and
international cooperative undertakings like festivals,
SECTION 26. Women. — ICC/IP women shall enjoy conferences, seminars and workshops to promote and
equal rights and opportunities with men, as regards the enhance their distinctive heritage and values.
social, economic, political and cultural spheres of life. The
participation of indigenous women in the decision-making SECTION 32. Community Intellectual Rights. —
process in all levels, as well as in the development of ICCs/IPs have the right to practice and revitalize their own
society, shall be given due respect and recognition. cultural traditions and customs. The State shall preserve,
protect and develop the past, present and future
The State shall provide full access to education, maternal manifestations of their cultures as well as the right to the
and child care, health and nutrition, and housing services to restitution of cultural, intellectual, religious, and spiritual
indigenous women. Vocational, technical, professional and property taken without their free and prior informed
other forms of training shall be provided to enable these consent or in violation of their laws, traditions and customs.
women to fully participate in all aspects of social life. As
far as possible, the State shall ensure that indigenous SECTION 33. Rights to Religious, Cultural Sites and
women have access to all services in their own languages. Ceremonies. — ICCs/IPs shall have the right to manifest,
practice, develop, and teach their spiritual and religious
SECTION 27. Children and Youth. — The State shall traditions, customs and ceremonies; the right to maintain,
recognize the vital role of the children and youth of protect and have access to their religious and cultural sites;
ICCs/IPs in nation-building and shall promote and protect the right to use and control of ceremonial objects; and, the
their physical, moral, spiritual, intellectual and social well- right to the repatriation of human remains. Accordingly, the
being. Towards this end, the State shall support all State shall take effective measures, in cooperation with the
government programs intended for the development and ICCs/IPs concerned, to ensure that indigenous sacred
rearing of the children and youth of ICCs/IPs for civic places, including burial sites, be preserved, respected and
efficiency and establish such mechanisms as may be protected. To achieve this purpose, it shall be unlawful to:
necessary for the protection of the rights of the indigenous
children and youth. a) Explore, excavate or make diggings on
archeological sites of the ICCs/IPs for the purpose of
SECTION 28. Integrated System of Education. — The obtaining materials of cultural values without the free and
State shall, through the NCIP, provide a complete, adequate prior informed consent of the community concerned; and
and integrated system of education, relevant to the needs of
the children and young people of ICCs/IPs. b) Deface, remove or otherwise destroy artifacts
which are of great importance to the ICCs/IPs for the
CHAPTER VI preservation of their cultural heritage.
Cultural Integrity SECTION 34. Right to Indigenous Knowledge
SECTION 29. Protection of Indigenous Culture, Systems and Practices and to Develop own Sciences and
Traditions and Institutions. — The State shall respect, Technologies. — ICCs/IPs are entitled to the recognition of
recognize and protect the right of ICCs/IPs to preserve and the full ownership and control and protection of their
protect their culture, traditions and institutions. It shall cultural and intellectual rights. They shall have the right to
consider these rights in the formulation and application of special measures to control, develop and protect their
national plans and policies. sciences, technologies and cultural manifestations,
including human and other genetic resources, seeds,
SECTION 30. Educational Systems. — The State including derivatives of these resources, traditional
shall provide equal access to various cultural opportunities medicines and health practices, vital medicinal plants,
to the ICCs/IPs through the educational system, public or animals and minerals, indigenous knowledge systems and
private cultural entities, scholarships, grants and other practices, knowledge of the properties of fauna and flora,
incentives without prejudice to their right to establish and oral traditions, literature, designs, and visual and
control their educational systems and institutions by performing arts.
providing education in their own language, in a manner
appropriate to their cultural methods of teaching and SECTION 35. Access to Biological and Genetic
Resources. — Access to biological and genetic resources
and to indigenous knowledge related to the conservation,
utilization and enhancement of these resources, shall be Provided, further, That the members of the NCIP shall hold
allowed within ancestral lands and domains of the ICCs/IPs office for a period of three (3) years, and may be subject to
only with a free and prior informed consent of such re-appointment for another term: Provided, furthermore,
communities, obtained in accordance with customary laws That no person shall serve for more than two (2) terms.
of the concerned community. Appointment to any vacancy shall only be for the
unexpired term of the predecessor and in no case shall a
SECTION 36. Sustainable Agro-Technical member be appointed or designated in a temporary or
Development. — The State shall recognize the right of acting capacity: Provided, finally, That the Chairperson and
ICCs/IPs to a sustainable agro-technological development the Commissioners shall be entitled to compensation in
and shall formulate and implement programs of action for accordance with the Salary Standardization Law.
its effective implementation. The State shall likewise
promote the bio-genetic and resource management systems SECTION 42. Removal from Office. — Any member
among the ICCs/IPs and shall encourage cooperation of the NCIP may be removed from office by the President,
among government agencies to ensure the successful on his own initiative or upon recommendation by any
sustainable development of ICCs/IPs. indigenous community, before the expiration of his term
for cause and after complying with due process requirement
SECTION 37. Funds for Archeological and Historical of law.
Sites. — The ICCs/IPs shall have the right to receive from
the national government all funds especially earmarked or SECTION 43. Appointment of Commissioners. —
allocated for the management and preservation of their The President shall appoint the seven (7) Commissioners of
archeological and historical sites and artifacts with the the NCIP within ninety (90) days from the effectivity of
financial and technical support of the national government this Act.
agencies.
SECTION 44. Powers and Functions. — To
CHAPTER VII accomplish its mandate, the NCIP shall have the following
powers, jurisdiction and function:
National Commission on Indigenous Peoples (NCIP)
a) To serve as the primary government agency
SECTION 38. National Commission on Indigenous through which ICCs/IPs can seek government assistance
Cultural Communities/Indigenous Peoples (NCIP). — To and as the medium, through which such assistance may be
carry out the policies herein set forth, there shall be created extended;
the National Commission on ICCs/IPs (NCIP), which shall
be the primary government agency responsible for the b) To review and assess the conditions of ICCs/IPs
formulation and implementation of policies, plans and including existing laws and policies pertinent thereto and to
programs to promote and protect the rights and well-being propose relevant laws and policies to address their role in
of the ICCs/IPs and the recognition of their ancestral national development;
domains as well as the rights thereto.
c) To formulate and implement policies, plans,
SECTION 39. Mandate. — The NCIP shall protect programs and projects for the economic, social and cultural
and promote the interest and well-being of the ICCs/IPs development of the ICCs/IPs and to monitor the
with due regard to their beliefs, customs, traditions and implementation thereof;
institutions.
d) To request and engage the services and support
SECTION 40. Composition. — The NCIP shall be an of experts from other agencies of government or employ
independent agency under the Office of the President and private experts and consultants as may be required in the
shall be composed of seven (7) Commissioners belonging pursuit of its objectives;
to ICCs/IPs, one (1) of whom shall be the Chairperson. The
Commissioners shall be appointed by the President of the e) To issue certificate of ancestral land/domain
Philippines from a list of recommendees submitted by title;
authentic ICCs/IPs: Provided, That the seven (7) f) Subject to existing laws, to enter into contracts,
Commissioners shall be appointed specifically from each of agreements, or arrangement, with government or private
the following ethnographic areas: Region I and the agencies or entities as may be necessary to attain the
Cordilleras; Region II; the rest of Luzon; Island Groups objectives of this Act, and subject to the approval of the
including Mindoro, Palawan, Romblon, Panay and the rest President, to obtain loans from government lending
of the Visayas; Northern and Western Mindanao; Southern institutions and other lending institutions to finance its
and Eastern Mindanao; and Central Mindanao: Provided, programs;
That at least two (2) of the seven (7) Commissioners shall
be women. g) To negotiate for funds and to accept grants,
donations, gifts and/or properties in whatever form and
SECTION 41. Qualifications, Tenure, Compensation. from whatever source, local and international, subject to the
— The Chairperson and the six (6) Commissioners must be approval of the President of the Philippines, for the benefit
natural born Filipino citizens, bona fide members of the of ICCs/IPs and administer the same in accordance with the
ICCs/IPs as certified by his/her tribe, experienced in ethnic terms thereof; or in the absence of any condition, in such
affairs and who have worked for at least ten (10) years with manner consistent with the interest of ICCs/IPs as well as
an ICC/IP community and/or any government agency existing laws;
involved in ICC/IP, at least 35 years of age at the time of
appointment, and must be of proven honesty and integrity: h) To coordinate development programs and
Provided, That at least two (2) of the seven (7) projects for the advancement of the ICCs/IPs and to
Commissioners shall be members of the Philippine Bar: oversee the proper implementation thereof;
i) To convene periodic conventions or assemblies years, the Commission shall endeavor to assess the plan
of IPs to review, assess as well as propose policies or plans; and make ramifications in accordance with the changing
situations. The Office shall also undertake the
j) To advise the President of the Philippines on all documentation of customary law and shall establish and
matters relating to the ICCs/IPs and to submit within sixty maintain a Research Center that would serve as a
(60) days after the close of each calendar year, a report of depository of ethnographic information for monitoring,
its operations and achievements; evaluation and policy formulation. It shall assist the
k) To submit to Congress appropriate legislative legislative branch of the national government in the
proposals intended to carry out the policies under this Act; formulation of appropriate legislation benefiting ICCs/IPs;

l) To prepare and submit the appropriate budget to c) Office of Education, Culture and Health — The
the Office of the President; Office on Culture, Education and Health shall be
responsible for the effective implementation of the
m) To issue appropriate certification as a pre- education, cultural and related rights as provided in this
condition to the grant of permit, lease, grant, or any other Act. It shall assist, promote and support community
similar authority for the disposition, utilization, schools, both formal and non-formal, for the benefit of the
management and appropriation by any private individual, local indigenous community, especially in areas where
corporate entity or any government agency, corporation or existing educational facilities are not accessible to members
subdivision thereof on any part or portion of the ancestral of the indigenous group. It shall administer all scholarship
domain taking into consideration the consensus approval of programs and other educational rights intended for ICC/IP
the ICCs/IPs concerned; beneficiaries in coordination with the Department of
Education, Culture and Sports and the Commission on
n) To decide all appeals from the decisions and acts
Higher Education. It shall undertake, within the limits of
of all the various offices within the Commission;
available appropriation, a special program which includes
o) To promulgate the necessary rules and language and vocational training, public health and family
regulations for the implementation of this Act; assistance program and related subjects.

p) To exercise such other powers and functions as It shall also identify ICCs/IPs with potential training in the
may be directed by the President of the Republic of the health profession and encourage and assist them to enroll in
Philippines; and schools of medicine, nursing, physical therapy and other
allied courses pertaining to the health profession.
q) To represent the Philippine ICCs/IPs in all
international conferences and conventions dealing with Towards this end, the NCIP shall deploy a representative in
indigenous peoples and other related concerns. each of the said offices who shall personally perform the
foregoing task and who shall receive complaints from the
SECTION 45. Accessibility and Transparency. — ICCs/IPs and compel action from appropriate agency. It
Subject to such limitations as may be provided by law or by shall also monitor the activities of the National Museum
rules and regulations promulgated pursuant thereto, all and other similar government agencies generally intended
official records, documents and papers pertaining to official to manage and preserve historical and archeological
acts, transactions or decisions, as well as research data used artifacts of the ICCs/IPs and shall be responsible for the
as basis for policy development of the Commission shall be implementation of such other functions as the NCIP may
made accessible to the public. deem appropriate and necessary;
SECTION 46. Offices within the NCIP. — The NCIP d) Office on Socio-Economic Services and Special
shall have the following offices which shall be responsible Concerns — The Office on Socio-Economic Services and
for the implementation of the policies hereinafter provided: Special Concerns shall serve as the Office through which
a) Ancestral Domains Office — The Ancestral the NCIP shall coordinate with pertinent government
Domain Office shall be responsible for the identification, agencies specially charged with the implementation of
delineation and recognition of ancestral lands/domains. It various basic socio-economic services, policies, plans and
shall also be responsible for the management of ancestral programs affecting the ICCs/IPs to ensure that the same are
lands/domains in accordance with a master plan as well as properly and directly enjoyed by them. It shall also be
the implementation of the ancestral domain rights of the responsible for such other functions as the NCIP may deem
ICCs/IPs as provided in Chapter III of this Act. It shall also appropriate and necessary;
issue, upon the free and prior informed consent of the e) Office of Empowerment and Human Rights —
ICCs/IPs concerned, certification prior to the grant of any The Office of Empowerment and Human Rights shall
license, lease or permit for the exploitation of natural ensure that indigenous socio-political, cultural and
resources affecting the interests of ICCs/IPs or their economic rights are respected and recognized. It shall
ancestral domains and to assist the ICCs/IPs in protecting ensure that capacity building mechanisms are instituted and
the territorial integrity of all ancestral domains. It shall ICCs/IPs are afforded every opportunity, if they so choose,
likewise perform such other functions as the Commission to participate in all levels of decision-making. It shall
may deem appropriate and necessary; likewise ensure that the basic human rights, and such other
b) Office on Policy, Planning and Research — The rights as the NCIP may determine, subject to existing laws,
Office on Policy, Planning and Research shall be rules and regulations, are protected and promoted;
responsible for the formulation of appropriate policies and f) Administrative Office — The Administrative
programs for ICCs/IPs such as, but not limited to, the Office shall provide the NCIP with economical, efficient
development of a Five-Year Master Plan for the ICCs/IPs. and effective services pertaining to personnel, finance,
Such plan shall undergo a process such that every five
records, equipment, security, supplies and related services. a) Ancestral Domains Delineated Prior to this Act.
It shall also administer the Ancestral Domains Fund; and — The provisions hereunder shall not apply to ancestral
domains/lands already delineated according to DENR
g) Legal Affairs Office — There shall be a Legal Administrative Order No. 2, series of 1993, nor to ancestral
Affairs Office which shall advice the NCIP on all legal lands and domains delineated under any other
matters concerning ICCs/IPs and which shall be community/ancestral domain program prior to the
responsible for providing ICCs/IPs with legal assistance in enactment of this law. ICCs/IPs whose ancestral
litigation involving community interest. It shall conduct lands/domains were officially delineated prior to the
preliminary investigation on the basis of complaints filed enactment of this law shall have the right to apply for the
by the ICCs/IPs against a natural or juridical person issuance of a Certificate of Ancestral Domain Title
believed to have violated ICCs/IPs rights. On the basis of (CADT) over the area without going through the process
its findings, it shall initiate the filing of appropriate legal or outlined hereunder;
administrative action to the NCIP.
b) Petition for Delineation. — The process of
SECTION 47. Other Offices. — The NCIP shall have delineating a specific perimeter may be initiated by the
the power to create additional offices as it may deem NCIP with the consent of the ICC/IP concerned, or through
necessary subject to existing rules and regulations. a Petition for Delineation filed with the NCIP, by a
SECTION 48. Regional and Field Offices. — Existing majority of the members of the ICCs/IPs;
regional and field offices shall remain to function under the c) Delineation Proper. — The official delineation
strengthened organizational structure of the NCIP. Other of ancestral domain boundaries including census of all
field offices shall be created wherever appropriate and the community members therein, shall be immediately
staffing pattern thereof shall be determined by the NCIP: undertaken by the Ancestral Domains Office upon filing of
Provided, That in provinces where there are ICCs/IPs but the application by the ICCs/IPs concerned. Delineation will
without field offices, the NCIP shall establish field offices be done in coordination with the community concerned and
in said provinces. shall at all times include genuine involvement and
SECTION 49. Office of the Executive Director. — participation by the members of the communities
The NCIP shall create the Office of the Executive Director concerned;
which shall serve as its secretariat. The Office shall be d) Proof Required. — Proof of Ancestral Domain
headed by an Executive Director who shall be appointed by Claims shall include the testimony of elders or community
the President of the Republic of the Philippines upon under oath, and other documents directly or indirectly
recommendation of the NCIP on a permanent basis. The attesting to the possession or occupation of the area since
staffing pattern of the office shall be determined by the time immemorial by such ICCs/IPs in the concept of
NCIP subject to the existing rules and regulations. owners which shall be any one (1) of the following
SECTION 50. Consultative Body. — A body authentic documents:
consisting of the traditional leaders, elders and 1) Written accounts of the ICCs/IPs customs and
representatives from the women and youth sectors of the traditions;
different ICCs/IPs shall be constituted by the NCIP from
time to time to advise it on matters relating to the problems, 2) Written accounts of the ICCs/IPs political
aspirations and interests of the ICCs/IPs. structure and institution;

CHAPTER VIII 3) Pictures showing long term occupation such as


those of old improvements, burial grounds, sacred places
Delineation and Recognition of Ancestral Domains and old villages;
SECTION 51. Delineation and Recognition of 4) Historical accounts, including pacts and
Ancestral Domains. — Self-delineation shall be the guiding agreements concerning boundaries entered into by the
principle in the identification and delineation of ancestral ICCs/IPs concerned with other ICCs/IPs;
domains. As such, the ICCs/IPs concerned shall have a
decisive role in all the activities pertinent thereto. The 5) Survey plans and sketch maps;
Sworn Statement of the Elders as to the scope of the
territories and agreements/pacts made with neighboring 6) Anthropological data;
ICCs/IPs, if any, will be essential to the determination of 7) Genealogical surveys;
these traditional territories. The Government shall take the
necessary steps to identify lands which the ICCs/IPs 8) Pictures and descriptive histories of traditional
concerned traditionally occupy and guarantee effective communal forests and hunting grounds;
protection of their rights of ownership and possession
9) Pictures and descriptive histories of traditional
thereto. Measures shall be taken in appropriate cases to
landmarks such as mountains, rivers, creeks, ridges, hills,
safeguard the right of the ICCs/IPs concerned to land which
terraces and the like; and
may no longer be exclusively occupied by them, but to
which they have traditionally had access for their 10) Write-ups of names and places derived from the
subsistence and traditional activities, particularly of native dialect of the community.
ICCs/IPs who are still nomadic and/or shifting cultivators.
e) Preparation of Maps. — On the basis of such
SECTION 52. Delineation Process. — The investigation and the findings of fact based thereon, the
identification and delineation of ancestral domains shall be Ancestral Domains Office of the NCIP shall prepare a
done in accordance with the following procedures: perimeter map, complete with technical descriptions, and a
description of the natural features and landmarks embraced a) The allocation of lands within any ancestral
therein; domain to individual or indigenous corporate (family or
clan) claimants shall be left to the ICCs/IPs concerned to
f) Report of Investigation and Other Documents. decide in accordance with customs and traditions;
— A complete copy of the preliminary census and a report
of investigation, shall be prepared by the Ancestral b) Individual and indigenous corporate claimants of
Domains Office of the NCIP; ancestral lands which are not within ancestral domains,
may have their claims officially established by filing
g) Notice and Publication. — A copy of each applications for the identification and delineation of their
document, including a translation in the native language of claims with the Ancestral Domains Office. An individual or
the ICCs/IPs concerned shall be posted in a prominent recognized head of a family or clan may file such
place therein for at least fifteen (15) days. A copy of the application in his behalf or in behalf of his family or clan,
document shall also be posted at the local, provincial and respectively;
regional offices of the NCIP, and shall be published in a
newspaper of general circulation once a week for two (2) c) Proofs of such claims shall accompany the
consecutive weeks to allow other claimants to file application form which shall include the testimony under
opposition thereto within fifteen (15) days from date of oath of elders of the community and other documents
such publication: Provided, That in areas where no such directly or indirectly attesting to the possession or
newspaper exists, broadcasting in a radio station will be a occupation of the areas since time immemorial by the
valid substitute: Provided, further, That mere posting shall individual or corporate claimants in the concept of owners
be deemed sufficient if both newspaper and radio station which shall be any of the authentic documents enumerated
are not available; under Sec. 52 (d) of this Act, including tax declarations and
proofs of payment of taxes;
h) Endorsement to NCIP. — Within fifteen (15)
days from publication, and of the inspection process, the d) The Ancestral Domains Office may require from
Ancestral Domains Office shall prepare a report to the each ancestral claimant the submission of such other
NCIP endorsing a favorable action upon a claim that is documents, Sworn Statements and the like, which in its
deemed to have sufficient proof. However, if the proof is opinion, may shed light on the veracity of the contents of
deemed insufficient, the Ancestral Domains Office shall the application/claim;
require the submission of additional evidence: Provided,
That the Ancestral Domains Office shall reject any claim e) Upon receipt of the applications for delineation
that is deemed patently false or fraudulent after inspection and recognition of ancestral land claims, the Ancestral
and verification: Provided, further, That in case of Domains Office shall cause the publication of the
rejection, the Ancestral Domains Office shall give the application and a copy of each document submitted
applicant due notice, copy furnished all concerned, including a translation in the native language of the
containing the grounds for denial. The denial shall be ICCs/IPs concerned in a prominent place therein for at least
appealable to the NCIP: Provided, furthermore, That in fifteen (15) days. A copy of the document shall also be
cases where there are conflicting claims among ICCs/IPs posted at the local, provincial, and regional offices of the
on the boundaries of ancestral domain claims, the Ancestral NCIP and shall be published in a newspaper of general
Domains Office shall cause the contending parties to meet circulation once a week for two (2) consecutive weeks to
and assist them in coming up with a preliminary resolution allow other claimants to file opposition thereto within
of the conflict, without prejudice to its full adjudication fifteen (15) days from the date of such publication:
according to the section below. Provided, That in areas where no such newspaper exists,
broadcasting in a radio station will be a valid substitute:
i) Turnover of Areas Within Ancestral Domains Provided, further, That mere posting shall be deemed
Managed by Other Government Agencies. — The sufficient if both newspapers and radio station are not
Chairperson of the NCIP shall certify that the area covered available;
is an ancestral domain. The secretaries of the Department
of Agrarian Reform, Department of Environment and f) Fifteen (15) days after such publication, the
Natural Resources, Department of the Interior and Local Ancestral Domains Office shall investigate and inspect
Government, and Department of Justice, the Commissioner each application, and if found to be meritorious, shall cause
of the National Development Corporation, and any other a parcellary survey of the area being claimed. The
government agency claiming jurisdiction over the area shall Ancestral Domains Office shall reject any claim that is
be notified thereof. Such notification shall terminate any deemed patently false or fraudulent after inspection and
legal basis for the jurisdiction previously claimed; verification. In case of rejection, the Ancestral Domains
Office shall give the applicant due notice, copy furnished
j) Issuance of CADT . — ICCs/IPs whose all concerned, containing the grounds for denial. The denial
ancestral domains have been officially delineated and shall be appealable to the NCIP. In case of conflicting
determined by the NCIP shall be issued a CADT in the claims among individuals or indigenous corporate
name of the community concerned, containing a list of all claimants, the Ancestral Domains Office shall cause the
those identified in the census; and contending parties to meet and assist them in coming up
with a preliminary resolution of the conflict, without
k) Registration of CADTs. — The NCIP shall prejudice to its full adjudication according to Sec. 62 of this
register issued certificates of ancestral domain titles and Act. In all proceedings for the identification or delineation
certificates of ancestral lands titles before the Register of of the ancestral domains as herein provided, the Director of
Deeds in the place where the property is situated. Lands shall represent the interest of the Republic of the
SECTION 53. Identification, Delineation and Philippines; and
Certification of Ancestral Lands. —
g) The Ancestral Domains Office shall prepare and SECTION 59. Certification Precondition. — All
submit a report on each and every application surveyed and departments and other governmental agencies shall
delineated to the NCIP, which shall, in turn, evaluate the henceforth be strictly enjoined from issuing, renewing, or
report submitted. If the NCIP finds such claim meritorious, granting any concession, license or lease, or entering into
it shall issue a certificate of ancestral land, declaring and any production-sharing agreement, without prior
certifying the claim of each individual or corporate (family certification from the NCIP that the area affected does not
or clan) claimant over ancestral lands. overlap with any ancestral domain. Such certification shall
only be issued after a field-based investigation is conducted
SECTION 54. Fraudulent Claims. — The Ancestral by the Ancestral Domains Office of the area concerned:
Domains Office may, upon written request from the Provided, That no certification shall be issued by the NCIP
ICCs/IPs, review existing claims which have been without the free and prior informed and written consent of
fraudulently acquired by any person or community. Any ICCs/IPs concerned: Provided, further, That no department,
claim found to be fraudulently acquired by, and issued to, government agency or government-owned or -controlled
any person or community may be cancelled by the NCIP corporation may issue new concession, license, lease, or
after due notice and hearing of all parties concerned. production sharing agreement while there is a pending
SECTION 55. Communal Rights. — Subject to application for a CADT: Provided, finally, That the
Section 56 hereof, areas within the ancestral domains, ICCs/IPs shall have the right to stop or suspend, in
whether delineated or not, shall be presumed to be accordance with this Act, any project that has not satisfied
communally held: Provided, That communal rights under the requirement of this consultation process.
this Act shall not be construed as co-ownership as provided SECTION 60. Exemption from Taxes. — All lands
in Republic Act No. 386, otherwise known as the New certified to be ancestral domains shall be exempt from real
Civil Code. property taxes, special levies, and other forms of exaction
SECTION 56. Existing Property Rights Regimes. — except such portion of the ancestral domains as are actually
Property rights within the ancestral domains already used for large-scale agriculture, commercial forest
existing and/or vested upon effectivity of this Act, shall be plantation and residential purposes or upon titling by
recognized and respected. private persons: Provided, That all exactions shall be used
to facilitate the development and improvement of the
SECTION 57. Natural Resources within Ancestral ancestral domains.
Domains. — The ICCs/IPs shall have priority rights in the
harvesting, extraction, development or exploitation of any SECTION 61. Temporary Requisition Powers. —
natural resources within the ancestral domains. A non- Prior to the establishment of an institutional surveying
member of the ICCs/IPs concerned may be allowed to take capacity whereby it can effectively fulfill its mandate, but
part in the development and utilization of the natural in no case beyond three (3) years after its creation, the
resources for a period of not exceeding twenty-five (25) NCIP is hereby authorized to request the Department of
years renewable for not more than twenty-five (25) years: Environment and Natural Resources (DENR) survey teams
Provided, That a formal and written agreement is entered as well as other equally capable private survey teams,
into with the ICCs/IPs concerned or that the community, through a Memorandum of Agreement (MOA), to delineate
pursuant to its own decision making process, has agreed to ancestral domain perimeters. The DENR Secretary shall
allow such operation: Provided, finally, That the NCIP may accommodate any such request within one (1) month of its
exercise visitorial powers and take appropriate action to issuance: Provided, That the Memorandum of Agreement
safeguard the rights of the ICCs/IPs under the same shall stipulate, among others, a provision for technology
contract. transfer to the NCIP.

SECTION 58. Environmental Considerations. — SECTION 62. Resolution of Conflicts. — In cases of


Ancestral domains or portions thereof, which are found to conflicting interest, where there are adverse claims within
be necessary for critical watersheds, mangroves, wildlife the ancestral domains as delineated in the survey plan, and
sanctuaries, wilderness, protected areas, forest cover, or which can not be resolved, the NCIP shall hear and decide,
reforestation as determined by appropriate agencies with after notice to the proper parties, the disputes arising from
the full participation of the ICCs/IPs concerned shall be the delineation of such ancestral domains: Provided, That if
maintained, managed and developed for such purposes. The the dispute is between and/or among ICCs/IPs regarding
ICCs/IPs concerned shall be given the responsibility to the traditional boundaries of their respective ancestral
maintain, develop, protect and conserve such areas with the domains, customary process shall be followed. The NCIP
full and effective assistance of government agencies. shall promulgate the necessary rules and regulations to
Should the ICCs/IPs decide to transfer the responsibility carry out its adjudicatory functions: Provided, further, That
over the areas, said decision must be made in writing. The any decision, order, award or ruling of the NCIP on any
consent of the ICCs/IPs should be arrived at in accordance ancestral domain dispute or on any matter pertaining to the
with its customary laws without prejudice to the basic application, implementation, enforcement and
requirements of existing laws on free and prior informed interpretation of this Act may be brought for Petition for
consent: Provided, That the transfer shall be temporary and Review to the Court of Appeals within fifteen (15) days
will ultimately revert to the ICCs/IPs in accordance with a from receipt of a copy thereof.
program for technology transfer: Provided, further, That no SECTION 63. Applicable Laws. — Customary laws,
ICCs/IPs shall be displaced or relocated for the purpose traditions and practices of the ICCs/IPs of the land where
enumerated under this section without the written consent the conflict arises shall be applied first with respect to
of the specific persons authorized to give consent. property rights, claims and ownerships, hereditary
succession and settlement of land disputes. Any doubt or
ambiguity in the application and interpretation of laws shall forthwith, may cause grave or irreparable damage to any of
be resolved in favor of the ICCs/IPs. the parties to the case or seriously affect social or economic
activity.
SECTION 64. Remedial Measures. — Expropriation
may be resorted to in the resolution of conflicts of interest SECTION 70. No Restraining Order or Preliminary
following the principle of the “common good”. The NCIP Injunction. — No inferior court of the Philippines shall
shall take appropriate legal action for the cancellation of have jurisdiction to issue any restraining order or writ of
officially documented titles which were acquired illegally: preliminary injunction against the NCIP or any of its duly
Provided, That such procedure shall ensure that the rights authorized or designated offices in any case, dispute or
of possessors in good faith shall be respected: Provided, controversy arising from, necessary to, or interpretation of
further, That the action for cancellation shall be initiated this Act and other pertinent laws relating to ICCs/IPs and
within two (2) years from the effectivity of this Act: ancestral domains.
Provided, finally, That the action for reconveyance shall be
within a period of ten (10) years in accordance with CHAPTER X
existing laws. Ancestral Domains Fund
CHAPTER IX SECTION 71. Ancestral Domains Fund. — There is
Jurisdiction and Procedures for Enforcement of Rights hereby created a special fund, to be known as the Ancestral
Domains Fund, an initial amount of One hundred thirty
SECTION 65. Primacy of Customary Laws and million pesos (P130,000,000) to cover compensation for
Practices. — When disputes involve ICCs/IPs, customary expropriated lands, delineation and development of
laws and practices shall be used to resolve the dispute. ancestral domains. An amount of Fifty million pesos
(P50,000,000) shall be sourced from the gross income of
SECTION 66. Jurisdiction of the NCIP. — The NCIP, the Philippine Charity Sweepstakes Office (PCSO) from its
through its regional offices, shall have jurisdiction over all lotto operation, Ten million pesos (P10,000,000) from the
claims and disputes involving rights of ICCs/IPs: Provided, gross receipts of the travel tax of the preceding year, the
however, That no such dispute shall be brought to the NCIP fund of the Social Reform Council intended for survey and
unless the parties have exhausted all remedies provided delineation of ancestral lands/domains, and such other
under their customary laws. For this purpose, a certification source as the government may deem appropriate.
shall be issued by the Council of Elders/Leaders who Thereafter, such amount shall be included in the annual
participated in the attempt to settle the dispute that the same General Appropriations Act. Foreign as well as local funds
has not been resolved, which certification shall be a which are made available for the ICCs/IPs through the
condition precedent to the filing of a petition with the government of the Philippines shall be coursed through the
NCIP. NCIP. The NCIP may also solicit and receive donations,
SECTION 67. Appeals to the Court of Appeals. — endowments and grants in the form of contributions, and
Decisions of the NCIP shall be appealable to the Court of such endowments shall be exempted from income or gift
Appeals by way of a petition for review. taxes and all other taxes, charges or fees imposed by the
government or any political subdivision or instrumentality
SECTION 68. Execution of Decisions, Awards, thereof.
Orders. — Upon expiration of the period herein provided
and no appeal is perfected by any of the contending parties, CHAPTER XI
the Hearing Officer of the NCIP, on its own initiative or Penalties
upon motion by the prevailing party, shall issue a writ of
execution requiring the sheriff or the proper officer to SECTION 72. Punishable Acts and Applicable
execute final decisions, orders or awards of the Regional Penalties. — Any person who commits violation of any of
Hearing Officer of the NCIP. the provisions of this Act, such as, but not limited to,
unauthorized and/or unlawful intrusion upon any ancestral
SECTION 69. Quasi-Judicial Powers of the NCIP. — lands or domains as stated in Sec. 10, Chapter III, or shall
The NCIP shall have the power and authority: commit any of the prohibited acts mentioned in Sections 21
a) To promulgate rules and regulations governing and 24, Chapter V, Section 33, Chapter VI hereof, shall be
the hearing and disposition of cases filed before it as well punished in accordance with the customary laws of the
as those pertaining to its internal functions and such rules ICCs/IPs concerned: Provided, That no such penalty shall
and regulations as may be necessary to carry out the be cruel, degrading or inhuman punishment: Provided,
purposes of this Act; further, That neither shall the death penalty or excessive
fines be imposed. This provision shall be without prejudice
b) To administer oaths, summon the parties to a to the right of any ICCs/IPs to avail of the protection of
controversy, issue subpoenas requiring the attendance and existing laws. In which case, any person who violates any
testimony of witnesses or the production of such books, provision of this Act shall, upon conviction, be punished by
papers, contracts, records, agreements and other document imprisonment of not less than nine (9) months but not more
of similar nature as may be material to a just determination than twelve (12) years or a fine of not less than One
of the matter under investigation or hearing conducted in hundred thousand pesos (P100,000) nor more than Five
pursuance of this Act; hundred thousand pesos (P500,000) or both such fine and
imprisonment upon the discretion of the court. In addition,
c) To hold any person in contempt, directly or
he shall be obliged to pay to the ICCs/IPs concerned
indirectly, and impose appropriate penalties therefor; and
whatever damage may have been suffered by the latter as a
d) To enjoin any or all acts involving or arising consequence of the unlawful act.
from any case pending before it which, if not restrained
SECTION 73. Persons Subject to Punishment. — If SECTION 77. Placement Committee. — Subject to
the offender is a juridical person, all officers such as, but rules on government reorganization, a Placement
not limited to, its president, manager, or head of office Committee shall be created by the NCIP, in coordination
responsible for their unlawful act shall be criminally liable with the Civil Service Commission, which shall assist in
therefor, in addition to the cancellation of certificates of the judicious selection and placement of personnel in order
their registration and/or license: Provided, That if the that the best qualified and most deserving persons shall be
offender is a public official, the penalty shall include appointed in the reorganized agency. The Placement
perpetual disqualification to hold public office. Committee shall be composed of seven (7) commissioners
and an ICCs’/IPs’ representative from each of the first and
CHAPTER XII second level employees association in the Offices for
Merger of the Office for Northern Cultural Communities Northern and Southern Cultural Communities
(ONCC) and the Office for Southern Cultural Communities (ONCC/OSCC), nongovernment organizations (NGOs)
(OSCC) who have served the community for at least five (5) years
and peoples organizations (POs) with at least five (5) years
SECTION 74. Merger of ONCC/OSCC. — The of existence. They shall be guided by the criteria of
Office for Northern Cultural Communities (ONCC) and the retention and appointment to be prepared by the
Office of Southern Cultural Communities (OSCC), created consultative body and by the pertinent provisions of the
under Executive Order Nos. 122-B and 122-C respectively, civil service law.
are hereby merged as organic offices of the NCIP and shall
continue to function under a revitalized and strengthened CHAPTER XIII
structures to achieve the objectives of the NCIP: Provided, Final Provisions
That the positions of Staff Directors, Bureau Directors,
Deputy Executive Directors and Executive Directors, SECTION 78. Special Provision. — The City of
except positions of Regional Directors and below, are Baguio shall remain to be governed by its Charter and all
hereby phased-out upon the effectivity of this Act: lands proclaimed as part of its townsite reservation shall
Provided, further, That officials and employees of the remain as such until otherwise reclassified by appropriate
phased-out offices who may be qualified may apply for legislation: Provided, That prior land rights and titles
reappointment with the NCIP and may be given prior rights recognized and/or acquired through any judicial,
in the filling up of the newly created positions of NCIP, administrative or other processes before the effectivity of
subject to the qualifications set by the Placement this Act shall remain valid: Provided, further, That this
Committee: Provided, furthermore, That in the case where provision shall not apply to any territory which becomes
an indigenous person and a non-indigenous person with part of the City of Baguio after the effectivity of this Act.
similar qualifications apply for the same position, priority
shall be given to the former. Officers and employees who SECTION 79. Appropriations. — The amount
are to be phased-out as a result of the merger of their necessary to finance the initial implementation of this Act
offices shall be entitled to gratuity a rate equivalent to one shall be charged against the current year’s appropriation of
and a half (1 ½) months salary for every year of continuous the ONCC and the OSCC. Thereafter, such sums as may be
and satisfactory service rendered or the equivalent nearest necessary for its continued implementation shall be
fraction thereof favorable to them on the basis of the included in the annual General Appropriations Act.
highest salary received. If they are already entitled to SECTION 80. Implementing Rules and Regulations.
retirement or gratuity, they shall have the option to select — Within sixty (60) days immediately after appointment,
either such retirement benefits or the gratuity herein the NCIP shall issue the necessary rules and regulations, in
provided. Officers and employees who may be reinstated consultation with the Committees on National Cultural
shall refund such retirement benefits or gratuity received: Communities of the House of Representatives and the
Provided, finally, That absorbed personnel must still meet Senate, for the effective implementation of this Act.
the qualifications and standards set by the Civil Service and
the Placement Committee herein created. SECTION 81. Saving Clause. — This Act will not in
any manner adversely affect the rights and benefits of the
SECTION 75. Transition Period. — The ICCs/IPs under other conventions, recommendations,
ONCC/OSCC shall have a period of six (6) months from international treaties, national laws, awards, customs and
the effectivity of this Act within which to wind up its agreements.
affairs and to conduct audit of its finances.
SECTION 82. Separability Clause. — In case any
SECTION 76. Transfer of Assets/Properties. — All provision of this Act or any portion thereof is declared
real and personal properties which are vested in, or unconstitutional by a competent court, other provisions
belonging to, the merged offices as aforestated shall be shall not be affected thereby.
transferred to the NCIP without further need of
conveyance, transfer or assignment and shall be held for the SECTION 83. Repealing Clause. — Presidential
same purpose as they were held by the former offices: Decree No. 410, Executive Order Nos. 122-B and 122-C,
Provided, That all contracts, records and documents and all other laws, decrees, orders, rules and regulations or
relating to the operations of the merged offices shall be parts thereof inconsistent with this Act are hereby repealed
transferred to the NCIP. All agreements and contracts or modified accordingly.
entered into by the merged offices shall remain in full force
SECTION 84. Effectivity. — This Act shall take
and effect unless otherwise terminated, modified or
effect fifteen (15) days upon its publication in the Official
amended by the NCIP.
Gazette or in any two (2) newspapers of general circulation.
Approved: October 29, 1997