soc leg. sss

8/11/2019 soc leg. sss

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It is the policy of the State to establish, develop, promote, and perfect a soundand viable tax-exempt social security system suitable to the needs of the people

throughout the Philippines which shall promote social justice and providemeaningful protection to the members and their beneficiaries against hazards of

disability, sickness, maternity, old age, death and other contingencies resultingin loss of income or financial burden. Towards this end, the State shallendeavour to extend social security protection to workers and their

beneficiaries.

Section 2 of the Social Security Law (Republic Act No. 1161), asamended by the Social Security Act of 1997 (Republic Act No. 8282),

The Social Security Act of 1997RA 1161(As amended by RA Nos, 1792, 2658,3839,4482, 4857,

PD Nos. 21, 177,347,735,1202, 1636,

Executive Orders Nos. 28. 102,RA Nos. 7322 and 8282)

Sherylle Ong


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Not a law on Succession

Not the heirs of the EE But the designated beneficiaries who are

entitled to receive the social security benefits

when the beneficiary is the estate, or When there is no designated beneficiary , or If the designation of the beneficiary is void

SSS is required topay the EEs heirs


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Not part of the taxation system

It is not intended for raising revenues But for the promotion of general welfare


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Private Funds

Funds contributed are not public funds Funds belong to members Funds are merely held in trust by the Government

Roman Catholic Archbishop of Manila vs SSSThe inclusion of religious organizations under thecoverage of Social Security law does not violate theconstitutional prohibition against the application ofpublic funds for the use, benefit or support of anypriest who may be employed by the church


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Compulsory Coverage Voluntary Coverage All ERs engaged in business in the

Philippines, including religious, charitableor non-profit institutions;

All EEs not over 60 years of age; Domestic helpers receiving

P1,000/month; Aliens employed in the Phil.; Self- employed persons as may be

determined by the Commission includingbut not limited to the following (Sec 9-A):

Self employed professionals Partners and single proprietorsActors and actresses directors,scriptwriters and newscorrespondentsProfessional athletes, coaches,trainers, and jockeysIndividual farmers andfishermen

Spouses who devote full time tomanaging the household and family affairs,unless they are also engaged in othervocation or employment which is subjectto mandatory coverage, may be coveredby the SSS on a voluntary basis.

Filipinos recruited by foreign based

employers for employment abroad may becovered by the SSS on a voluntary basis

Employees separated from employmentmay continue to pay contributions tomaintain his right to full benefits (Sec. 11)

Self-employed with no income (11-A)


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COVERAGEBY AGREEMENT:

Any foreign government, internationalorganization, or their wholly-owned

instrumentality employing workers in thePhilippines, may enter into an agreement withthe Philippine government for the inclusion of

such employees in the SSS except thosealready covered by their respective civilservice retirement systems (Sec.8 (j (4).


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Effective Date ofCoverage

Employer : It shall take effect on the first day ofhis operation

Employee : On the day of his employment

Self-employed : It shall take effect upon his

registration with SSS


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Employees not coveredby the SSS Law:

Purely casual EEs; EEs serving on an alien vessel, when such vessel is

outside of the Philippines; EEs of the Phil. Government or any of its

instrumentalities and agencies EEs of foreign government, international

organization, and their wholly-ownedinstrumentality;

Temporary EE, if excluded by regulation of the SSC


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Obligations of ER

a) To make timely report of its employees forcoverage; and

b) To make timely remittance of the premiums:

Effect of non-reporting on non-remittance by the ER

EE It shall not prejudice the right of the

covered EE to social security benefits SSS will still pay the EEs correspondingbenefits

ER Liable for damages equivalent to the benefits

the EE or his heir is entitled to receive Criminally liable 3% monthly penalty from the date thecontribution falls due

Penalty is punitive in character

Good faith is not a defense


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Obligations of ER

Lantaco vs Llamas

The ER is duty-bound to remit the contributions without theneed of any demand . Demand on the part of the EE beforethe ER remits these contributions to the SSS is not acondition precedent for such remittance . The SSS can collectsuch contributions in the same manner as taxes are madecollectible under the National Internal Revenue Code:

Demand is not a condition precedent


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Primacy of regular employment overself-employment

Member is both an EE and Self-employed

He shall pay: contributions under both status

If combined contributions > maximum contributionsthen, the excess shall be refunded accordingly to the

member.The excess contributions to be refunded shall come fromthe self-employed contributions

Contributions ofthe Self-Employed

pays both the ERs and EEs contribution


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Interruption ofbusiness orprofessional

income

Not required to pay contributions for thatmonth

Allowed to continue paying contributionsRetroactive payment of contributions is not

allowed

Obligation of ER and the EE to paycontributions arising from that

employment ceases at the end of themonth of separation

Separation ofEmployment


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Social Security Benefits

a)Maternity leave benefits;b)Sickness benefit;c)Permanent disability benefits;d)Retirement benefits;e)Death benefits;f) Funeral benefits;


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who can avail The maternity leave benefit is available to female SSS members who:

a.) has paid at least 3 monthly contributionin the 12-month period immediately preceding the semester of her childbirth,abortion or miscarriageb.) gives birth or suffers miscarriage/abortion;

Amount of

Benefit

100% of Average Daily Salary CreditNormal Delivery: 60 days

Caesarian Delivery: 78 days

Procedure:

1) EE should notify her ER:pregnancyprobable date of her childbirth-notice shall be transmitted to the SSS2) ER shall advance paymentwithin 30 days from filing of maternity leave application3) SSS shall reimburse the ERthe amount paidupon receipt of satisfactory proof of such payment and legality thereof.

Limitations

-available only for the first 4 deliveries or miscarriage

-cannot be availed of simultaneously with sickness benefit

A daily cash allowance granted to a female memberwho is unable to work due to childbirth ormiscarriage.


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A daily cash allowance paid for the number of days amember is unable to work due to sickness or injury.

not payment or reimbursement for hospitalization, medical treatment or medicine

who can avail The sickness benefit is available to an SSS member who:a.) has paid at least 3 monthly contributionin the 12-month period immediately preceding the semester ofsicknessb.) was confined for more than 3 days

in a hospital or elsewhere with the approval of the SSS; and

c.) has exhausted the company sick leave with pay, if any.

Amount of Benefit 90% of Average Daily Salary Credit

payable for each day of confinement or fraction thereof.-compensable confinement begins on first day of sickness


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A daily cash allowance paid for the number of days amember is unable to work due to sickness or injury.

P r o c e

d u r e :

1)EE should notify ER of the fact of his sickness or injury-within 5 days after the start of hisconfinement

-after 5 days: confinement deemed to have started not earlier than the 5th day immediately preceding

the date of notification-unemployed/self-employed SSS member : directly notify SSS within 5 days after the start thereof -notice not necessary: (XPT from notification)if the EE was confined in a hosp orif EE became sick or was injured while working or within the premises of the ER2) ER shall advance the sickness allowance and pay the EE every regular payday;3) SSS shall reimburse ERthe amount paid by the ERupon receipt of satisfactory proof of such payment and legality thereof.-notice to SSS by ER: within 5 days from receipt of notification from EE-after 5 days fr notice by EE: (ER delays notice to SSS)ER shall be reimbursed only for each day of confinementstarting from the 10th calendar day immediately preceding the date of notification to the SSS

-SSS shall reimburse the ER only for the confinement within 1 yr period immediately the date of theclaim for reimbursementXPT: confinement in hospitalin which case the claim for benefit or reimbursement must be filed within 1 year from the last day ofconfinement-SSS must reimburse within 2 months from claim of reimbursementif ER does not receive the reimbursement within 1 month from prescribed 2 month period,then reimbursement shall earn simple interest of 1% per month


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A cash benefit granted either as a monthly pension or alumpsum amount to a member who becomespermanently disabled, either partially or totally.


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Permanent Total Disability - disablement to do the same or similar kind of work that the SSSmember was trained for and accustomed to perform because of:

a) complete loss of sight of both eyes;b) loss of two limbsc) permanent complete paralysis of two limbs;d) brain injury resulting in incurable imbecility or insanity; ande) such cases as determined and approved by the SSSwho can avail Monthly Pension Lump Sum Benefit

>=36 monthly contributions


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p e n s i o n

s h

a l l b

e

s u s p e n

d e

d :

Monthly Pension Lump Sum Benefit

1) re-employment or resumption of self-employment If re-employed or has resumedself-employment2) recovery -shall be again subject to

compulsory coverage3) failure to undergo examination at leastonce a year upon notice by the SSS -shall be considered a new

member

Effect of Death of a Permanently and totally disabled pensioner:a) if the P/T disabled person pensioner dies,the primary beneficiariesas of date of the disabilityshall be entitled to receive his monthly pensionb) if the P/T disabled person has no primary beneficiary andhe dies within 60 months from the start of his monthly pension,the secondary beneificiary shall be entitled to a lump sum benefit

*lump sum benefitmo. pension corresponding to the balance of the 5 year guaranteed period

excluding dependents pension


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Permanent Partial Disability - is a situation where the EE is unable tocontinue with his former work because of complete and permanent

loss of use of the following anatomical part of his body:one little finger 3 mos one big toe 6 one ear 10

one ring finger 5 loss of hearing in one ear 10

one middle finger 6

one index finger 8

one thumb 10one hand 39 one foot 31 both ears 20 Loss of sight of one eye 25

one arm 50 one leg 46 loss of hearing of both ears 50

Monthly Pension Percentage of Lump Sum Benefitif PPD occurs after 36 monthly contribution havebeen paid prior to the semester of disability

if PPD occurs before 36 monthly contributions have been paidprior to the semester of disability

*monthly pension benefit for PPD will be given in lump sumif it is payable in less than 12 months*Partial Disablity pension ceases upon:

retirement ordeath

A h b fi d i h hl


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A cash benefit granted either as a monthlypension or a lumpsum amount to a memberwho can no longer work due to old age.

w h o c a n a v a i l

The retirement benefit under the Social Security can can be availed of by the SSS member if he has:

a) reached the age of 60 years or the compulsory retirement age of 65 years; and

b) already retired from service or ceased to be self-employed

Monthly pension for as long as he lives Lump sum benefitavailable if the member has paid at least 120 monthlycontributions prior to the semester of his retirement

has not paid at least 120 monthly contributions prior tothe semester of retirement

A m o u n t o

f B e n e

f i t

higher of either: equal to the total contributions paid by him on his behalfa) monthly pension computed at the earliest time he couldhave retire had he been separated from employment orceased to be self-employed plus all adjustments thereto; or

b) monthly pension computed at the time he actually retires*member has the option:to receive his first 18 monthly pensions in lump sumdiscounted at a preferential rate of interest to bedetermined by the SSS

it shall be suspended uponretirement or resumption of self-employment of a retiredmember who is less than 65 years old

h b f d h


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A cash benefit granted to thebeneficiaries of a deceased

Lump sum amount computed as follows:member has paid 36

monthly contributions prior

to the semester of death

member has not paid 36monthly contributions

* 36 x monthly pension whichever is higher:1) monthly pension x no.of monthly contributionspaid or

2) 12 x monthly pension


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A funeral grant equivalent to Twelvethousand pesos (P12, 000.00) shall be paid,

in cash or in kind, to help defray the cost offuneral expenses upon the death of amember, including permanently totally

disabled member or retiree.


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Granted to dependents in case of death,permanent total disability or retirement ofan SSS member

Equivalent to 10% of monthly pension orP250.00, whichever is higher

Payable to each dependent child conceivedon or before date of contingency

But not exceeding 5 beginning with theyoungest and without substitution


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a) The dependent spouse until he or she remarries,

b) the dependent legitimate, legitimated or legallyadopted and illegitimate children

PROVIDED that the dependent illegitimatechildren shall be entitled to 50% of the share ofthe legitimate, legitimated or legally adoptedchildren.

PRIMARY BENEFICIARIES


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PROVIDED FURTHER in the absence of thelegitimated, legally adopted or legitimate children,illegitimate children shall be entitled to 100% ofthe benefits.

IN THEIR ABSENCE, the dependent parents whoshall be the secondary beneficiaries.

IN THE ABSENCE OF ALL of the foregoing, anyperson designated by the covered employee assecondary beneficiary.

PRIMARY BENEFICIARIES


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a) The legal spouse entitled by law to

receive support from the memberb) The legitimate, legitimated or legallyadopted and illegitimate child who

is unmarried,

not gainfully employed andhas not reached 21 years of age orif 21 years of age, he is congenitally

incapacitated or while still a minor has been

permanently incapacitated and incapable ofself- support, physically and mentally andc) The parent who is receiving regular

support from the member

DEPENDENTS:

-SSS is the implementing arm of the Social Security Act


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SOCIAL SECURTIY SYSTEMSSS

SSS is the implementing arm of the Social Security Act-directed and controlled by the Social SecurityCommission

(a) To submit annually not later than April 30, a public report to thePresident of the Philippines covering its activities in the administration andenforcement of this Act during the preceding year including informationand recommendations on broad policies for the development andperfection of the program of the SSS.

(b) To require the actuary to submit a valuation report on the SSS benefitprogram every four years, or more frequently as may be necessary, and toundertake the necessary actuarial studies and calculations concerningincreases in benefits and the financial stability of the SSS and to provide forthe feasible increases in benefits every 4 years, including the addition f new

ones under such rules and regulations as the Commission may adoptsubject to the approval of the President;

(c) To establish offices of the SSS to cover as many provinces, cities andcongressional districts, whenever and wherever it may be expedient,necessary and feasible, and to inspect or cause to be inspected periodically

such offices;

SSS exercises the following powers and duties:

-SSS is the implementing arm of the Social Security Act


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(d) To enter into agreements or contracts for such service and aid, as may be needed forthe proper, efficient and stable administration of the SSS.

(e) To adopt from time to time a budget of expenditures including salaries of personnel,against all funds available to the SS under this Social Security act.

(f) To set up its accounting system and provide the necessary personnel therefor.

(g) To require reports, compilations and analyses of statistical and economic data and tomake investigations as may be needed for the proper administration and developmentof the System.

(h) To acquire property, real or personal, which may be necessary or expedient for theattainment of the purposes of the Social Security Act.

(i) To acquire, receive, or hold, by way of purchase, expropriation or otherwise, public orprivate property for the purpose of undertaking housing projects preferably for thebenefit of low-income members and for the maintenance of hospitals and institutionsfor the sick, aged and infirm employees and immediate members of their families.

(j) To sue and be sued in court. (k) To perform such other acts as it may deem appropriate for the proper enforcement

of the Social Security Act..

SSS exercises the following powers and duties:

SOCIAL SECURTIY SYSTEMSSS

SSS is the implementing arm of the Social Security Act-directed and controlled by the Social SecurityCommission


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SOCIAL SECURITY COMMISSIONSSC

Secretary of Labor and Employment or his duly

designated undersecretary; SSS President and ; and 7 members to be appointed by the President of thePhilippines:

3, representing the workers group, at least 1of whom shall be a woman;

3, representing the ERs group, at least 1 ofwhom shall be a woman

1, representing the general public who shouldhave adequate knowledge and experience regardingsocial security.

Composition:

Chairman of the SSC: designated by the Presidentof the Philippines from among its members

(6)Shall be chosen from amongthe nominees of workers andemployees organizations

Term of appointive members: 3 years.Vacancies, prior to the expiration of term, shall be

filled for the unexpired term only

Co equal rank with the RTC;


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Administrativefunctions

Quasi-judicialfunctions

Co equal rank with the RTC;RTC cannot issue writs of Injunction Certiorari andProhibition against SSC;

It may be sue and be sued in the RTC onlyon matters connected with its administrativefunctions, but not on matters connectedwith its quasi-judicial functions


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Administrative functions

(1) To adopt, amend and rescind, subject to the approval of the President of thePhilippines, such rules and regulations as may be necessary to carry out the provisionsand purposes of this Act;(2) To establish a provident fund for the members which will consist of voluntarycontributions of employers and/or employees, self-employed and voluntary membersand their earnings, for the payment of benefits to such members or their beneficiaries,subject to such rules and regulations as it may promulgate and approved by thePresident of the Philippines;(3) To maintain a Provident Fund which consists of contributions made by both the SSSand its officials and employees and their earnings, for the payment of benefits to suchofficials and employees or their heirs under such terms and conditions as it mayprescribe;


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Administrative functions

(4) To approve restructuring proposals for the payment of due but unremittedcontributions and unpaid loan amortizations under such terms and conditions as it mayprescribe;(5) To authorize cooperatives registered with the cooperative development authority orassociations registered with the appropriate government agency to act as collectingagents of the SSS with respect to their members: Provided, That the SSS shall accreditthe cooperative or association: Provided, further, That the persons authorized to collectare bonded;(6) To compromise or release, in whole or in part, any interest, penalty or any civilliability to SSS in connection with the investments authorized under Section 26, hereof,under such terms and conditions as it may prescribe and approved by the President ofthe Philippines; and

(7) To approve, confirm, pass upon or review any and all actions of the SSS in the properand necessary exercise of its powers and duties hereinafter enumerated

SOCIAL SECURITY COMMISSION


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SSC has jurisdiction over disputes arising under the Social Security Act with respect to

Quasi-judicial functions

Coverage,Entitlement of benefits,Collection and Settlement of contributions and penalties, orAny other matter related thereto.

SSC also has jurisdiction over claims for damages

SSC can order motu proprio the remittance of unpaid premium contributions discovered in theof the proceedings before it.


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Appeal fromdecisions of SSC

Appealable to CA under Rule 43By filing a verified petition for reviewWithin 15 days from notice of judgment.

Judicial review: permitted only after any party claiming to be aggrieved thereby has exhaustedhis remedies before the Commission


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litmus test and distinction between PermanentTotal Disability and Permanent Partial Disability

[W]hile permanent totaldisability invariably resultsin an employees loss ofwork or inability to performhis usual work,

permanent partial disability, on theother hand, occurs when anemployee loses the use of anyparticular anatomical part of his body

which disables him to continue withhis former work.

Stated otherwise, the test of whether or not an employee suffers from permanent totaldisability is a showing of the capacity of the employee to continue performing his worknotwithstanding the disability he incurred. Thus, if by reason of the injury or sicknesshe sustained, the employee is unable to perform his customary job for more than 120days and he does not come within the coverage of Rule X of the Amended Rules onEmployees Compensability (which, in a more detailed manner, describes whatconstitutes temporary total disability), then the said employee undoubtedly suffers frompermanent total disability regardless of whether or not he loses the use of any part ofhis body .

Vicente vs. Employees Compensation Commission


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disability should be understood less on its medicalsignificance than on the loss of earning capacity.

Permanent total disability means-disablement of an employee to earn wages in the same kind of work, orwork of similar nature that he was trained for or accustomed toperform, or any kind of work which a person of his mentality andattainment could do. It does not mean absolute helplessness.

-Moreover, a persons disability may not manifest fully at one precisemoment in time but rather over a period of time. It is possible that aninjury which at first was considered to be temporary may later onbecome permanent or one who suffers a partial disability becomestotally and permanently disabled from the same cause.


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(g) The percentage degree of disability which is equivalent to the ratio that thedesignated number of months of compensability bears to seventy-five (75), rounded tothe next higher integer, shall not be additive for distinct, separate and unrelatedpermanent partial disabilities, but shall be additive for deteriorating and related

permanent partial disabilities to a maximum of one hundred percent (100%), in whichcase, the member shall be deemed as permanently totally disabled.

Percentage of Disability = designated number of months of compensability

75

one little finger 3 mos one big toe 6 one ear 10

one ring finger 5 loss of hearing in one ear 10

one middle finger 6

one index finger 8

one thumb 10one hand 39 one foot 31 both ears 20 Loss of sight of one eye 25

one arm 50 one leg 46 loss of hearing of both ears 50

One arm 50Loss of sight one eye 25

75permanently totally disabled


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Thank You

End

soc leg. sss

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