Social Security Law

RA No. 1161, as amended by RA No. 8282, RA No. 11199 and RA

No. 11210

AGENA MARIE SAN PABLO, CPA

 Declaration of Policy
It is the policy of the Republic of the Philippines to establish,
develop, promote and perfect a sound and viable tax-exempt
social security service suitable to the needs of the people
throughout the Philippines which shall provide to covered
employees and their families protection against the hazards of
disability, sickness, old age and death, with a view to promoting
their well-being in the spirit of social justice.
 Scope and Coverage
Coverage in the SSS shall be compulsory upon:
1. All employees not over sixty years of age; and
2. their employers;
 Scope and Coverage
Effect of Separation from Employment:
When an employee under compulsory coverage is separated
from employment, his employer's contribution on his account
and his obligation to pay contributions arising from that
employment shall cease at the end of the month of separation,
but said employee shall be credited with all contributions paid
on his behalf and entitled to benefits according to the provisions
of this Act. He may, however, continue to pay the total
contributions to maintain his right to full benefit.
 Scope and Coverage
Voluntary Coverage
Spouses who devote full time to managing the household and
family affairs, unless they are also engaged in other vocation or
employment which is subject to mandatory coverage, may be
covered by SSS on a voluntary basis.
 Scope and Coverage
Coverage in the SSS shall also be compulsory upon all self-
employed persons as may be determined by the Commission
under such rules and regulations as it may prescribe, including
but not limited to the following:
1. All self-employed professionals
2. Partners and single proprietors of businesses
3. Actors and actresses, directors, scriptwriters and news
correspondents who do not fall within the definition of the term
"employee" above
 Scope and Coverage
4. Professional athletes, coaches, trainers and jockeys
5. Individual farmers and fishermen

Unless otherwise specified herein, all provisions of the SSS Law

applicable to covered employees shall also be applicable to the
covered self-employed persons.
 Scope and Coverage
Effect of Interruption of Business or Professional Income:
If the self-employed realizes no income in any given month, he
shall not be required to pay contributions for that month. He
may, however, be allowed to continue paying contributions
under the same rules and regulations applicable to separated
employee member. Provided, that no retroactive payment of
contributions shall be allowed other than prescribed under a
schedule as the Commission may specify.
 Scope and Coverage
Compulsory Coverage of Overseas Filipino Workers
Under RA No. 1161, Filipinos recruited in the Philippines by foreign-based
employers for employment abroad may be covered by the SSS on a
voluntary basis. However, under RA No. 11199, OFWs are mandatorily
covered by the SSS, under Section 9-B thereof, which provides the
following rules:
a) Coverage in the SSS shall be compulsory upon all sea-based and land-
based OFWs as defined under Republic Act No. 8042, otherwise known as
the Migrant Workers and Overseas Filipinos Act of 1995, as amended by
Republic Act No. 10022, who are not over sixty (60) years of age.
Retirement, death, disability, funeral, sickness and maternity benefits
provided under the law, among others, shall apply to all covered OFWs.
 Scope and Coverage
b) Manning agencies are agents of their principals and are considered as
employers of sea-based OFWs. Any law to the contrary notwithstanding,
manning agencies are jointly and severally or solidarily liable with their
principals with respect to the civil liabilities incurred for any violation of
this Act. The persons having direct control, management or direction of
the manning agencies shall be held criminally liable for any act or
omission penalized under this Act.
c) Land-based OFWs are compulsory members of the SSS and considered
in the same manner as self-employed persons under such rules and
regulations that the Commission shall prescribe.
 Scope and Coverage
d) The Department of Foreign Affairs (DFA), the Department of Labor and
Employment (DOLE) and all its agencies involved in deploying OFWs for
employment abroad are mandated to negotiate bilateral labor agreements with
the OFWs’ host countries to ensure that the employers of land-based OFWs,
similar to the principals of sea-based OFWs, pay the required SSS contributions,
in which case these land-based OFWs shall no longer be considered in the same
manner as self-employed persons in this Act. Instead, they shall be considered
as compulsorily covered employees with employer and employee shares in
contributions that shall be provided for in the bilateral labor agreements and
their implementing administrative agreements: Provided, That in countries
which already extend social security coverage to OFWs, the DFA through the
Philippine embassies and the DOLE shall negotiate further agreements to serve
the best interests of the OFWs.
 Scope and Coverage
e) The DFA, the DOLE and the SSS shall ensure compulsory
coverage of OFWs through bilateral social security and labor
agreements and other measures for enforcement.
f) Upon the termination of their employment overseas, OFWs
may continue to pay contributions on a voluntary basis to
maintain their rights to full benefits.
g) Filipino permanent migrants, including Filipino immigrants,
permanent residents and naturalized citizens of their host
countries may be covered by the SSS on a voluntary basis.
 Scope and Coverage
Effective Date of Coverage

1. Compulsory coverage of the employer shall take effect on the

first day of his operation.
2. For the employee – on the day of his employment.
3. Compulsory coverage of the self-employed person shall take
effect upon his registration with the SSS.
 Pension
The monthly pension shall be the highest of the following
amounts:
a) The sum of the following:
i. Three hundred pesos (P300.00); plus
ii. Twenty percent (20%) of the average monthly salary credit;
plus
iii. Two percent (2%) of the average monthly salary credit for
each credited year of service in excess of ten (10) years; or
 Pension
b) Forty percent (40%) of the average monthly salary credit; or
c) One thousand pesos (P1,000.00).

Provided, That the monthly pension shall in no case be paid for

an aggregate amount of less than sixty (60) months.
 Pension
Minimum Pension
Notwithstanding the above, the minimum pension shall be:
1. Members with 10 credited years of service – ₱1,200.00
2. Members with 20 credited years of service – ₱2,400.00
 Pension
Additional Benefit Allowance: Pursuant to Memorandum from
the Executive Secretary dated 22 February 2017, by authority of
the President of the Republic of the Philippines, an additional
monthly benefit allowance amounting to One thousand pesos
(₱1,000.00) shall be given to all retirement, death, and disability
pensioners receiving monthly pensions in or after January two
thousand seventeen (2017).
The Commission may determine the grant of additional benefit
allowance. Provided, That the actuarial soundness of the reserve
fund shall be guaranteed.
 Pension
All other additional allowances to monthly pension subsequent
to the Memorandum of the Executive Secretary dated February
22, 2017 shall be subject to the requirement of fund viability and
sustainability as determined by the Commission based on the
re c o m m e n d at i o n s o f t h e O ff i c e o f t h e C h i e f A c t u a r y
guaranteeing the actuarial soundness of the grant of such
allowances.
 Pension
Dependent’s Pension
Where monthly pension is payable on account of death,
permanent total disability or retirement, dependents’ pension
equivalent to ten percent (10%) of the monthly pension or Two
hundred fifty pesos (₱250.00), whichever is higher, shall also be
paid for each dependent child conceived on or before the date of
the contingency but not exceeding five (5), beginning with the
youngest and without substitution.
Where there are legitimate and illegitimate children, the former
shall be preferred.
 Retirement
a) A member shall be entitled to the monthly pension for as long as he
lives if the following conditions are met:
a) The member has paid at least one hundred twenty (120) monthly
contributions prior to the semester of retirement
b) The member either:
(1) has reached the age of sixty (60) years and is already separated
from employment or has ceased to be self-employed
(2) has reached the age of sixty-five (65) years
Option to advance: The member shall have the option to receive his first
eighteen (18) monthly pensions in lump sum discounted at a
preferential rate of interest to be determined by the SSS.
 Retirement
b) A covered member who is sixty (60) years old at retirement and who
does not qualify for pension benefits under paragraph (a) above shall be
entitled to a lump sum benefit equal to the total contributions paid by
him and on his behalf. Provided, That he is separated from employment
and is not continuing payment of contributions to the SSS on his own.
Option to Continue Paying Contributions: A separated member who has
paid less than one hundred twenty (120) monthly contributions has the
option to continue paying his/her contributions as a voluntary-paying
member to complete the required one hundred twenty (120) monthly
contributions to qualify for full pension benefit.
 Retirement
Re-employment
The monthly pension shall be suspended upon the
reemployment or resumption of self-employment of a retired
member who is less than sixty-five (65) years old. He shall again
be subject to the monthly contributions as will be discussed
below.
 Retirement
Death: Upon the death of the retired member, his primary
beneficiaries as of the date of his retirement shall be entitled to
receive the monthly pension.

If he has no primary beneficiaries and he dies within sixty (60)

months from the start of his monthly pension, his secondary
beneficiaries shall be entitled to a lump sum benefit equivalent
to the total monthly pensions corresponding to the balance of
the five-year guaranteed period, excluding the dependents’
pension.
 Retirement
Amount of pension:
The monthly pension of a member who retires after reaching
age sixty (60) shall be the higher of either:
(1) the monthly pension computed at the earliest time he could
have retired had he been separated from employment or ceased
to be self-employed plus all adjustments thereto; or
(2) the monthly pension computed at the time when he actually
retires.
 Death Benefits
Upon the covered employee's death,
1. And he has paid at least thirty-six (36) monthly contributions
prior to the semester of death, his primary beneficiaries shall be
entitled to the monthly pension and his dependents to the
dependents' pension.
If he has no primary beneficiaries, his secondary beneficiaries
shall be entitled to a lump sum benefit equivalent to thirty-six
(36) times the monthly pension.
 Death Benefits
2. If he has not paid the required thirty-six (36) monthly
contributions, his primary or secondary beneficiaries shall be
entitled to whichever is higher between:
a) The lump sum benefit equivalent to the monthly pension
times the number of monthly contributions paid to the SSS
b) Twelve (12) times the monthly pension.
 Permanent Disability Benefits
Upon the permanent total disability of a member:
1. If he has paid at least thirty-six (36) monthly contributions
prior to the semester of disability, he shall be entitled to the
monthly pension.
2. If he has not paid the required thirty-six (36) monthly
contributions, he shall be entitled to the higher between:
a) Lump sum benefit equivalent to the monthly pension times
the number of monthly contributions paid to the SSS
b) Twelve (12) times the monthly pension.
 Permanent Disability Benefits
Re-employment: A member who has received a lump sum
benefit and is re-employed or has resumed self-employment not
earlier than one (1) year from the date of his disability shall
again be subject to compulsory coverage and shall be considered
a new member.
 Permanent Disability Benefits
The monthly pension and dependents’ pension shall be
suspended upon:

1. The reemployment or resumption of self-employment; or

2. The recovery of the disabled member from his permanent
total disability; or
3. His failure to present himself for examination at least once a
year upon notice by the SSS.
 Permanent Disability Benefits
Death: Upon the death of the permanent total disability
pensioner, his primary beneficiaries as of the date of disability
shall be entitled to receive the monthly pension.
If he has no primary beneficiaries and he dies within sixty (60)
months from the start of his monthly pension, his secondary
beneficiaries shall be entitled to a lump sum benefit equivalent
to the total monthly pensions corresponding to the balance of
the five-year guaranteed period, excluding the dependents’
pension.
 Permanent Disability Benefits
The following disabilities shall be deemed permanent total:

1. Complete loss of sight of both eyes;

2. Loss of two limbs at or above the ankle or wrists;
3. Permanent complete paralysis of two limbs;
4. Brain injury resulting to incurable imbecility or insanity; and,
5. Such cases as determined and approved by the SSS.
 Permanent Disability Benefits
Permanent Partial Disability
a) If the disability is permanent partial, and such disability occurs before
thirty-six (36) monthly contributions have been paid prior to the semester
of disability, the benefit shall be such percentage of the lump sum benefit
described below, with due regard to the degree of disability as the
Commission may determine.
b) If the disability is permanent partial and such disability occurs after
thirty-six (36) monthly contributions have been paid prior to the semester
of disability, the benefit shall be the monthly pension for permanent total
disability payable not longer than the period designated in the following
schedule:
Permanent Disability Benefits
 Permanent Disability Benefits
Percentage Degree of Disability: Is equivalent to the ratio that
the designated number of months of compensability bears to
seventy-five (75), rounded to the next higher integer.

It shall not be additive for distinct, separate and unrelated

permanent partial disabilities, but shall be additive for
deteriorating and related permanent partial disabilities, to a
maximum of one hundred percent (100%), in which case the
member shall be deemed as permanently totally disabled.
 Permanent Disability Benefits
Permanent Partial Disability: In case of permanent partial
disability, the monthly pension benefit shall be given in lump
sum if it is payable for less than twelve (12) months.

Retirement or Death: Should a member who is on partial

disability pension retire or die, his disability pension shall cease
upon his retirement or death.
 Funeral Benefit
Under SSS Circular No. 2023-009, the funeral benefit will be as
follows:
1. If the member paid at least thirty-six (36) monthly
contributions up to the month of death, the funeral benefit shall
be ₱20,000 to ₱60,000 (previously ₱40,000 under SSS Circular
No. 2015-009) using the following formula:
₱20,000 + (0.5% × Number of Contributions × Average
Monthly Salary Credit)
(but not to exceed ₱60,000)
 Funeral Benefit
2. If the member paid at least one (1) month but less than thirty-
six (36) months, the funeral benefit shall be a fixed amount of
₱12,000.
 Sickness Benefit
a) A covered employee who has paid at least three (3) monthly
contributions in the twelve-month period immediately preceding
the semester of sickness and is confined for more than three (3)
days in a hospital or elsewhere with the Commission's approval
shall, for each day of compensable confinement or fraction
thereof, be paid by his employer, or the SSS if such person is
unemployed, an allowance equivalent to 90% of his average daily
salary credit, subject to the following conditions:
 Sickness Benefit
1. In no case shall the daily sickness benefit be paid longer than one
hundred twenty (120) days in one (1) calendar year, nor shall any unused
portion of the 120 days of sickness benefit be carried forward and added
to the total number of compensable days allowable in the subsequent
year.
2. The daily sickness benefit shall not be paid for more than two hundred
forty (240) days on account of the same confinement.
3. The employee member shall notify his employer of the fact of his
sickness or injury within five (5) calendar days after the start of his
confinement, unless such confinement is in a hospital or the employee
became sick or was injured while working or within the employer’s
premises, in which case notification is not necessary.
 Sickness Benefit
If the member is unemployed or self-employed, he shall directly
notify the SSS of his confinement within five (5) calendar days
after the start thereof, unless such confinement is in a hospital,
in which case notification is not necessary.

In cases where notification is necessary, the confinement shall

be deemed to have started not earlier than the fifth day
immediately preceding the date of notification.
 Sickness Benefit
b) The compensable confinement shall begin on the first day of
sickness, and the payment of such allowances shall be promptly
made by the employer every regular payday or on the fifteenth
and last day of each month, and similarly in the case of direct
payment by the SSS, for as long as such allowances are due and
payable. Provided, That such allowance shall begin only after all
sick leaves of absence with full pay to the credit of the employee
member shall have been exhausted.
 Sickness Benefit
c) One hundred percent (100%) of the daily benefits provided in the
preceding paragraph shall be reimbursed by the SSS to said employer
upon receipt of satisfactory proof of such payment and legality
thereof. Provided, That the employer has notified the SSS of the
confinement within five (5) calendar days after receipt of the
notification from the employee member.
If the notification to the SSS is made by the employer beyond five (5)
calendar days after receipt of the notification from the employee
member, said employer shall be reimbursed only for each day of
confinement starting from the tenth calendar day immediately
preceding the date of notification to the SSS.
 Sickness Benefit
The SSS shall reimburse the employer or pay the unemployed
member only for confinement within the one-year period
i m m e d i ate l y p re c e d i n g t h e d ate t h e c l a i m fo r b e n ef i t o r
reimbursement is received by the SSS, except confinement in a
hospital in which case the claim for benefit or reimbursement must
be filed within one (1) year from the last day of confinement.
 Sickness Benefit
d) Where the employee member has given the required
notification but the employer fails to notify the SSS of the
confinement or to file the claim for reimbursement within the
period prescribed, resulting in the reduction of the benefit or
denial of the claim, such employer shall have no right to recover
the corresponding daily allowance he advanced to the employee
member as required in this Section.
 Sickness Benefit
e) The claim of reimbursement shall be adjudicated by the SSS
within a period of two (2) months from receipt thereof: Provided,
That should no payment be received by the employer within one
(1) month after the period prescribed herein for adjudication,
the reimbursement shall thereafter earn simple interest of one
percent (1%) per month until paid.
 Maternity Leave Benefit
A covered female worker in the government and the private
sector, including those in the informal economy, regardless of
civil status or the legitimacy of her child, shall be granted one
hundred five (105) days maternity leave with full pay and an
option to extend for an additional thirty (30) days without pay,
which can be prenatal or postnatal. Provided, that the postnatal
leave shall not be less than sixty (60) days.
 Maternity Leave Benefit
Solo Parent: If the employee qualifies as a solo parent under
Republic Act No. 8972 (Solo Parents’ Welfare Act), the worker
shall be granted an additional fifteen (15) days maternity leave
with full pay.
Manner of Availment: Enjoyment of maternity leave cannot be
deferred but should be availed of either before or after the
actual period of delivery in a continuous and uninterrupted
manner, not exceeding one hundred fifty (150) days, as the case
may be.
 Maternity Leave Benefit
Frequency: Maternity leave shall be granted to female workers in
every instance of pregnancy, miscarriage, or emergency
termination of pregnancy, regardless of frequency.

Miscarriage and Emergency Termination of Pregnancy: For cases

of miscarriage or emergency termination of pregnancy, sixty (60)
days maternity leave with full pay shall be granted.
 Maternity Leave Benefit
Allocation of Maternity Leave:
Any female worker entitled to maternity leave benefits may, at
her option, allocate up to seven (7) days of said benefits to the
child’s father, whether or not the same is married to the female
worker.
 Maternity Leave Benefit
In the death, absence, or incapacity of the female worker, the
benefit may be allocated to an alternative caregiver who may be
a relative within the fourth (4th) degree of consanguinity or the
current partner of the female worker sharing the same
household upon the election of the mother, taking into account
the best interest of the child. Provided, that written notice
thereof is provided to the employers of the female worker and
the alternate caregiver.
 Maternity Leave Benefit
If the female worker dies or is permanently incapacitated, the
balance of her maternity leave benefits shall accrue to the father
of the child or to a qualified caregiver mentioned above.
 Unemployment Insurance or Involuntary
Separation Benefits
A member may be entitled to fifty percent (50%) of the average
monthly salary credit for a maximum of two (2) months in the
form of cash payments if, immediately preceding the involuntary
unemployment or separation, the following concur:
1. The member is not over sixty (60) years of age;
2. The member paid at least thirty-six (36) monthly contributions,
twelve (12) months of which should be in the eighteen (18)-
month period immediately preceding the unemployment.
 Unemployment Insurance or Involuntary
Separation Benefits
Frequency: An employee who is involuntarily unemployed can
only claim unemployment benefits once every three (3) years. In
case of concurrence of two or more compensable contingencies,
only the highest benefit shall be paid, subject to the rules and
regulations that the Commission may prescribe.