SOCIAL Social Legislation Those laws that provide particular kinds of protection or benefits to society or segments thereof in furtherance of social justice. Social Justice Both a juridical principle and societal goal. It is ‘neither communism, nor despotism, nor anarchy,’ but the humanization of laws and the equalization of social and economic forces by the State so that justice in its rational and. objectively secular conception may at least be approximated. Social Justice means the promotion of the welfare of all the people, the adoption by the Government of measures calculated to insure economic stability of all the component elements of society, through the maintenance of a proper economic and social equilibrium in the interrelations of the members of the community, * constitutionally, through the adaption of measures legally justifiable, or extra-constitutionally, through the exercise of Powers underiying the existence of all govemmments on the time-honored principle of salus populi est suprema lex” (Calalang v. Williams, G.R. No. 47800, December 2, 1940). Labor laws are “social legislations" but not all. social legislations are labor laws. Construction The. inflexible rule in our jurisdiction is- that social legislation must be liberally construed in favor of the beneficiaries. (GSIS v. De Leon, G.R. No. 186560, November 17, 2010). SOCIAL SECURITY SYSTEM (R.A. 1161 AS AMENDED BY R.A. 8282) DECLARATION OF POLICY 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 EXECUTIVE COMMITTEE IAN MICHEL GEONANGA overall chairperson. ANGELO DAVID chairperson for. ocademics, RUTH ABIGAIL ACERO chairperson for hotel operations. ALBERTO RECALDE, JR. vice-choirperson for operations. MARIA” CARMELA HAUTEA vice-chaitperson for secretariat. MARK EMMANUEL ABILO vice-choiperson for finance, RYAN LIGGAYU vice‘chairperson for electronie data processing, JOMARC PHILIP DIMAPIUS Vice-chairperson for logistics JOSE promote social justice and provide meaningful protectio to members and their beneficiaries against the hazards c disability, sickness, matemity, old age, death, and othe contingencies resulting in loss of income or bTowards thi end, the State shall endeavor to extend social securit protection to workers and their beneficiaries. DEFINITION OF TERMS Employer Any person, natural or juridical, domestic or foreign, wh carries on in the Philippines, any trade, business, industry Undertaking or activity of any kind and uses the service of another person who is under his orders as regards th employment except the Govemment and any of it political subdivisions, branches or instrumentalities including corporations owned or controled by the Goverment Employee Any person who performs services for an employer ir which either or both mental and physical efforts are usec and who receives compensation for such services, where there is an employer-employee relationship: Provided That a self-employed person shall be both employee anc employer at the same time. Self-Employed ‘Any person whose. income is ‘not derived from ‘employment; shall be the employer and employee at the ‘same time. Dependents (SCP) 1. The legal Spouse entitled by law to receive suppor from the member, 2The legitimate, legitimated or legally adopted and legitimate Child who is unmarried, not gainfully ‘employed and has not reached 21 years of age orif 21 years of age, he is congenitally incapacitated or while SUBJECT COMMITTEE SHEILA PASICOLAN subject chair. VANESSA SANCHEZ assistant subject chair, ARIANNE BONAVENTE edp, NICOLE. ROSE MARGARET JAMILLA labor standards, RICKY BOY CABATU labor relations, MARICAR SANTOS social legislation (MEMBERS Rachell Ann Katina Abad Diana Bartolome, Juan Carlo Brilantes, Eunice Bustamante Melvin Cuison, Noreen Daniele Fabia, Patricia’ Joy Gonzgga April Pauline Maligayo. Camille May Medina Melakick John Mendoza, Jamae PascasioOCIAL LEGI stil a minor has been permanently incapacitated and incapable of self-support, physically and mentally; and 3. The Parent who is receiving regular support from the member. Compensation ‘All actual remuneration for employment, including the mandated cost-of-living allowance, as well as the cash ‘except that part of the remuneration’ in excess of the maximum salary credit as provided under Sec. 18. Employment Any service performed by an employee for his employer, ‘except excluded employment under Sec. 8 (J): (CAG?T) a.Employment purely Casual and not for the purpose of ‘occupation or business of the employer, b.Services performed on or in connection with an Alien Vessel by an employee if he is employed when such ‘vessel is outside the Philippines; c.Service performed in the employ of the Philippine ‘Government, instrumentality or agency thereof; Service performed in the employ of a Foreign ‘Government, international organization, or their wholly— ‘owned instrumentality; and e.Servioes performed by Temporaty employees, which may be excluded by regulation of the Commission. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the service of said contractors, Beneficiaries (SC-PD) The dependent Spouse until he or she remarries, the dependent legitimate, legitimated or legally adopted and ilegtimate Children who shall be the PRIMARY beneficiaries of the member: Providéd that the dependent illegitimate children shall be ented to 60% of the share of the legitimate, legitimated or legally adopted children; Provided, further, in the absence of the dependent legitimate, legitimated children of the member, his/her ‘dependent ilegiimate children shail be entitled to 100% of the benefits; {In their absence, the dependent Parents who shall be the secondary beneficiaries; and In the absence of all of the foregoing, any other person Designated by the covered employee 2s secondary beneficiary. Contingency The retirement, death, disability, injury or sickness “and matemity of the member. COVERAGE ‘A.Compulsory (Sec. 9) (ADS) 1.All employees not over 60 years of age and their employers; and 2.Domestic helpers with monthly income of not less than P1,000 a month, 3.Coverage in the SSS shall also be’ compulsory tupon such Self-employed persons as may be determined by the Commission, including but not limited to the following: (Sec. 9-A) (P2A?F) a All self-employed Professionals; . Partners and single proprietors; ¢, Actors and actresses, directors, scriotwriters and ‘ews correspondents who do not fall within the definition of the term employee in Section 8a] of this Act, d.Professional: Athletes, coaches, trainers, and Jockeys; and ¢. Individual Farmers and fishermen. Limitations: (EECEO) 4.Arly benefit Eamed by the employees under private benefit plans existing at the time of the approval of the ‘Act shall not be discontinued, reduced or otherwise impaired; 2. Private plans which are Existing and in force at the time of compulsory coverage shall be integrated with the plan of the SSS in.such a way where the employer's Contribution to his private plan is more than that required of him in this Act, he shall pay to the SSS only the contribution required of him and he shall continue his contribution to such private plan less his contribution to the SSS so that the employer's total contribution to his benefit plan and to the SSS shail be the same as his contribution to his private benefit plan before the compulsory coverage. 3.Any Changes, adjustments, modifications, eliminations cr improvements in the benefits ofthe remaining private plan afer the integration shall be subject to agreements between the employers and the employees concemed; and 4.The private benefit plan which the -employer’ shall continue for his employees shall remain under the Employer's management and control unless there is an existing agreement to the contrary 5. Nothing in this Act shall be construed as a limitation on the right of employers and employees to agree on and adopt benefits which are Over and above those provided under this Act. 8 2013 CenB Voluntary (SASS) 4.Spouses who devote full time to managing the household and family affairs (Sec. 9(b); 2.Filipinos employed Abroad recruited by foreign based employers (Sec. 9 (c)); 3,Persons Separated from employment to maintain his right to full benefits (Sec. 11); and 4,Sott-employed, who realizes no income for a certain month (Sec. 11-A). C. By Agreement (Sec. 6 f]] [4)) ‘Any foreign government, intemational organization, or their wholly-owned instrumentality employing workers in the Philippines, may enter into an agreement with the Philippine govermment for the inclusion of such employees in the SSS except those already covered by their respective civil service retirement systems. Effective Date of Coverage (Sec. 10) 1. Employer — on fist day of his operation. 2. Employee — on the first day of his employment. 3. Setf-employed — upon his registration with SSS. Effects of Separation from Employment (Sec. 1) 4.Employer’s contribution on his account ceases at the end of the month of separation; 2. Employee's obligation to contribute ceases at the end of the month of separation; 3.But said employee shall be. credited with all contributions paid on his behalf and entitled to benefits ‘according to the provisions of this Act; 4.He may, however, continue to pay the total Contributions to maintain his right to full benefit. Effects of Interruption of Business or Professional ‘Income of Self-Employed Individual 41.He shall not be required to pay contributions for that ‘month, : 2.HOWEVER, he may be allowed to continue paying contributions under the same rules applicable to a separated covered employee member. 3.No retroactive payment of contributions shall be allowed ‘other than as prescribed under Sec. 22-A. BENEFITS ‘A. Monthly Pension (Sec. 12) Monthly pension shall be the HIGHEST of the following 41.P 300 plus 20% of average monthly salary credit plus 2% of average monthly salary credit for each Credited year of service in excess of 10 years; OR 2.40% of monthly salary credit; OR 156 . 3.P1,000, provided that the monthly pension shall in no case be paid for an aggregate amount of less than 60 months. a.For members with at least 10 years credited service, the minimum pension shall be 21,200; and b.For members with at least 20 years credited service, the minimum pension shall be P2,400. A-t.Dependent's Pension (Sec. 12-A) 1.Equivaient to 10% of monthly pension or P 250, whichever is higher, 2.Payable on account of death, permanent total disability or retirement; and 3.Payable to each dependent child conceived on or before the date of the contingency but not exceeding 5, beginning with the youngest and without substitution, with preference on legitimate children. B-4.Retirement Benefits (Sec. 12-8) 1.A member who has paid at least 120 monthly ‘contributions prior to the semester of retirement shall be entited to monthly pension as fong as'he lives, provided that: a.He has reached the age of 60 years and ‘is already separated from employment or ‘has ceased to be setf-employed; or b.He has reached the age of 65 years. NOTE: Member has the option to receive his 1 18 monthly pensions in lump sum at a preferential rate of interest as determined by the SSS. 2.A covered member who is sixty (60) years old but ‘was not able to contribute at least 120 monthly contribution prior to the semester of his retirement shall still be entitled to a lump sum benefit equal to the total contributions paid by him ‘and on his behalf, PROVIDED, he is separated from employment and is not continuing payment of Contributions to the SSS on his own. Upon Death of Retired Member (Sec. 12-B/D)) 4.His primary beneficiaries’ as of the. date of his» retirement shall be entitled to receive the monthly pension; and 2.1f he has no primary beneficiaries and he dies 60.” months from the start of his monthly pension, secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly peesibos conespendng t the balance ofthe Sg ;year guaranteed period, excluding the dependents’ pension, Suspension of Monthly Pension Upon the re-employment or resumption of self- employment of a retired employee who is less than 65 years old. B. Death Benefits and Permanent Disability Benefits (Sec. 13 and Sec. 13-A Bary Disability Benefits Permanent total disability Wemiber has paid at least 36 ‘monthly contributions prior to the somester of death or disability Monthly Pension ary Member beneficiaries. i none, secondary beneficiaries, are entitied to a lump sum benefit equal to 36 times the monthly ns Zena Benefits shall be a lump sum GEseiga| 2! fo the monthly pension | vem times the number of monthly | Females contributions paid to SSS or 12 | times the. ‘monthly pension, | whichever is higher. J Death or of Permanent Total Disability Pensioner His primary beneficiaries shall be entitled to the monthly pension; or" Dee Cu Cause ay reset I he has no primary beneficiaries and he dies within 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 5-year guaranteed period excluding the dependents’ pension. If the disability is permanent partial, and such disability ‘occurs before thirty-six (36) monthly contributions have been paid prior to: the semester of disabiity, the benefits hall be such percentage of the lump sum benefit described in the preceding paragraph with due regard to the degree of disability as the Commission may determine, (Sec 13-A (e)) 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 schedule provided in Sec. 13-4 (9 of RA 6282. The Following are Deemed Permanent Total Disabilities: (ELPIS) 4. 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; A.Braif injury resulting fo incurable imbecilty or Insanity; and 5. Such cases as determined and approved by the SSS. C. Funeral Benefits (Sec. 13-8) ‘A funeral grant equivalent to F 12,000 shail be paid in cash or in kind to help defray the cost of funeral expenses. NOTE: A funeral grant of P20,000° (effective September 1, 2000) is given to whoover pays the burial expenses of the deceased member or pensioner (www.sss.gov ph). D. Sickness Benefits (Sec. 14) A daily sickness benefit equivalent to 90% of his average dally salary credit shall be paid by his employer or by the SSS, if unemployed or self employed. Requirements: 1.A member must have paid at least 3. monthly contributions in the 12- month period immediately preceding the semester of sickness or injury; 2.Confined for more than three days in a hospital or elsewhere with the approval of the SSS; and 3.All sick leaves of absence with full pay to the credit of the employee member shall have been exhausted NOTE: Sick leaves of absence-must be 3 days or more. Conditions: 1.1n no case shall the daily sickness benefit be paid longer than 120 days in 1 calendar year, 2.Nor shall any unused portion of the 120 days of Sickness benefit be caried forward and added to 157EE the total number of compensable days allowable in the subsequent year; 3.The daily sickness benefit shall not be paid for more than 240 days on account of the same confinement; and 4.The employee member shall notify his employer or the SSS if unemployed or self-employed, of the fact of his sickness or injury within 5 calendar days after the start of his confinement. NOTE: The following are exceptions to the requirement of notification: a.Confinementis in the hospital; and b.Became sick or was injured while working or within the Premises of the employer. E. Maternity Leave Benefits (as amended by R.A. 7322) Covered female member is entitled to a daily matemity benefit equivalent to 100% of her average daily salary credit for 60 days or 78 days in case of caesarian delivery. 1. There is childbirth, abortion or miscarriage; and 2.She has paid at least 3 monthly contributions in the ‘2-month period immediately preceding the semester of her childbirth or miscarriage. Conditions: 1. Employee shall notify her employer of “her Pregnancy and the probable date of her childbirth, hich notice shall be transmitted to the SSS; 2. The payment shall be advanced by the employer in {wo equal installments within 30 days from the fling of the matemity leave application; 3. The payment of daily maternity benefits shall be a bar to the recovery of sickness benefits for the same compensable period of 60 days for the same Childbirth, abortion, or miscarriage, or 78 days in case of caesarian delivery, 4.That the maternity benefits provided under this Section shall be paid only forthe fist 4 deliveries or miscarriages. 5.That the SSS shall immediately reimburse: the employer of 100% of the amount of matemity benefits advanced to the employee by the ‘employer upon receipt of satisfactory proof of such payment and legalty thereof, and 6. If an employee should give birth or suffer abortion or miscarriage without the required contributions having been remitted for her by her employer to the SSS, or without the latter haying been previously 158 Notified by the employer of the time of Pregnancy, the employer shall pay to the S damages equivalent to the benefits, which s employee would otherwise have been entitied and the SSS shall in tum pay such amount to 1 employee concemed. Non-Transferability of Benefits (Sec, 15) General Rule: The SSS shall promptly pay the bene! Provided to Persons Entitied thereto in accordance w this Act Restrictions: a. The SSS shall pay the retirement benefits on the day Contingency to qualified members who have submitt the necessary Documents at ast 6 months before. ». The beneficiary who is a national of a Foreign Count which does not extend benefits to a Flipino beneficia residing in the Philippines, or which is not recognized | the Philippines, shall not be entitled to receive a benefit under this Act. c. Where the Best Interest of the SSS will be served, t Commission may direct payments without regard | nationality or country of residence. d. If the recipient is a Minor or incapable of administerin his own affairs, the Commission shail appoint fepresentative. Such . appointment shall not b Necessary in case the recipient is under the custody « or living with the parents or spouse of the member i Which case the benefits shall be paid fo such parents ¢ ‘Spouse, as representative payee of the recipient . Such benefits are Not Transferable and no power ¢ attomey or other document executed by those entitle thereto in favor of any agent, attomey or any othe person for the collection thereof on their behalf shall b fecognized, except when they are physically unable te Collect personally such benefits: f. In case of death benefits, if no beneficiary qualifies under this Act, said benefits shall be Paid to the lega Heirs in accordance with the law of succession, Exemptions from Tax, Legal Process and Lien 1.The SSS and ali its assets and Properties, all contributions collected and all accruals thereto and income or investment earnings therefrom as well as al ‘Supplies, equipment, papers or documents shall be exempt from any tax, assessment, fee, charge, or customs or import duty; and 2.All benefit payments made by the SSS shail likewise be ‘exempt from all kinds of taxes, fees or charges, and ‘shail not be liable to attachments, gamishments, levy or seizure by or under any legal’ or equitable process» whatsoever, either before or after receipt by the person r persons entitled thereto, except to pay any debt of the member to the SSS, Remittance of Contributions ‘hie contributions imposed under this Act shall be remitted to the SSS within the first ten (10) days of each calendar month following the month for which they are applicable or within such time as the Commission may prescribe. Self-employed members . shall remit their monthly contributions quarterly on such dates and schedules as the Commission may prescribe. Remedies for Failure to Pay Required Contribution (caw) 1. It shall be Collected by the SSS in the same manner as taxes are made collectible under the National Internal Revenue Code; 2. By an Action in court, which shall hear and dispose of ‘the case in preference to any other civil action; and 3.By issuing a Warrant to the Sherif of any province or ccity commanding him to levy upon and sell any real and personal property of the debtor. The Sheriffs sele by vite of said warrant shall be govemed by the same procedure prescribed for executions against property ‘upon judgments by a court of record. Duties of the Employer 1. To pay employer's contribution in accordance with the schedule provided in this Act; 2.To deduct and to remit employees* contributions; 3. To immediately report to the SSS the names, ages, civil status, occupations, salaries and dependents of all his ‘employees who are subject to compulsory coverage; 4.To keep true and accurate work records for such period ‘and containing such information as the Commission may prescribe; 5.To require, as a condition to employment, the presentation of a registration number secured by the prospective employee from the SSS in accordance with ‘Such procedure as the SSS may adopt; 6.To notify the SSS of the confinement within 5 calendar days after receipt of the notiication from the employee member, and 7.To advance in two equal monthly installments the matemity leave benefits within 30 days from the fing of the maternity leave application.’ Liabilities of the Employer: 1.The employer shall pay to the SSS damages equivalent to the benefits, which said employee member would otherwise have béen entitled to, for his failure to remit the required contributions; * 2.To pay, besides the contribution, a penalty thereon of 3% per month from the date the contribution falls due until paid, for his faliure to: deduct and remit contributions; 3.To pay to the SSS damages equivalent to the benefits, which said employee member would have been entitled to had his name been reported on time by the employer to the SSS, for his fallure 16 report matters required Uupon him; and 4.To pay to the SSS damagés equivalent to the difference between the amount of benefits, to which the employee member or his beneficiary would have been entitled to had the proper contributions been remitted to the SSS, and the amount payable on the basis of contributions actually remitted, for his misrepresentation of the true date of employment of the employee member or for remittance to the SSS contributions less than those required. in this Act or for failure to remit any Contributions due prior to the date of contingency. NOTE: The -right of the employee to institute the Necessary action against the employer who refuses or neglects to remit contributions may be commenced within 20 years from the time the delinquency is known or the assessment is made by the SSS, or from the time the benefit accrues, as the case may be. The prescriptive period does not commence when the obligation to pay the premiums accrues (Lo v. Court of ‘Appeals, G.R. No. 128667, December 17, 1999). ‘Settlement of Disputes (Sec. 5) Jurisdiction: Social Security Commission. Cases Covered: Any dispute arising under this Act with respect to: (CBCPA) 1.Coverage’ 2. Benefits; 3. Contributions; 4. Penalty; And ‘Any maiters related thereto, Procedure 1.Filing, determination and'settement of disputes shall be governed by the rules and regulations promulgated. by the commission 2.hall be heard by: a, The commission; ». Any ofits members; or c. Hearing officers July authorized by the commission 3.Shall be decided within twenty (20) days after the submission of evidence; and se 1594, Shall be final and executory if no appeal within fifteen (15) days from notice of judgment. Judicial Review : 4, Permitted only when all administrative remedies have been exhausted; 2. Court of Appeals has jurisdiction to review decisions both on questions of facts and law but if only questions of aw are involved, Supreme Court has the jurisdiction; 3. Commission is deemed to be a party; 4, Heard in summary manner, 5. Takes precedence over any cases except criminal case where lfe imprisonment or death penalty is imposed; 6.No appeal bond shall be required; and 7.No appeal shall-act as a supersedeas or a stay of the ‘order of the Commission unless the’ Commission itsetf, or the Court of Appeals or the Supreme Court, shall so order. Violations of the SSS Law c Committed by Private Individuals 1. Making of a false statement or representation as to any compensation paid or received, or making or causing to be made any false statement of a material fact in any claim for any benefit payable under the SSS Law, or application for loan with the SSS, or making or causing to be made any false statement, representation, affidavit or ‘document in connection with such claim or loan, 2. Obtaining or receiving any money or check under the SSS Law or any agreement thereunder, without being entitled thereto with intent to defraud any member, employer or the SSS. 4. Buying, seling, offering for sale, using, transferring or taking or giving in exchange, or pledging or giving in pledge, except as authorized by the SSS Law or in regulations made pursuant thereto, any stamp, coupon, ticket, book or other device, prescribed pursuant to Section 23 by the Commission for the collection’ or payment of contributions required herein. 5. With intent to defraud, altering, forging, making or Counterfeiting any ‘stamp, coupon ticket, book or other device prescribed by the Commission for the collection or Payment of any contribution required herein, or using, saling, lending, or possessing any such altered, forged or counterfeited materials, or making, using selling or possessing any such altered, forged material in imitation of the material used in the manufacture of such stamp, ‘coupon, ticket, book or other device, 160 COVERAGE BOR LAW << 6. Faling or refusing to comply with the provisions of the SSS Law or withthe rules and regulations promulgated by the Commission, NOTE: If the act or omission penalized by this Act be committed by an association, partnership, corporation or any other institution, its managing head, directors or partners:shall‘be liable to the penalties provided in this Act for the offense. Committed by Employees Receiving or keeping funds or property belonging, payable or deliverable to the SSS and appropriating the same, or taking- or misappropriatig, or consenting or through abandonment or negligence permitting any other person to take such property of funds, wholly or partially, or shal otherwise be guity of misappropriation of such funds or property. Committed by Employers ‘Any employer who after deducting the monthly Contribution or loan. amortizations from his employee's, compensation, falls to remit the said deductions to the SSS within thirty (30) days from the date they became due shall_be presumed to have misappropriated such ‘contributions or loan Amortization. NOTE: Criminal action arising from a violation of ‘the provisions RA 8282 may be commenced by the SSS or the employee ‘concemed either under this’ Act or in appropriate cases under the Revised Penal Code: Provided, That such criminal action may be filed by the ‘SSS in the city or municipality where the SSS office is, located if the violation was committed within its teritorial Jurisdiction or in Metro Manila, at the option of the SSS. GOVERNMENT SERVICE INSURANCE System (R.A. 8291) Membership in the GSIS shall be compulsory for all ‘employees receiving compensation who have not reached the compulsory retirement age irrespective of employment status, Exceptions to the Compulsory Coverage (APC?) ‘.Members of the Armed Forces of the"Philippines (AFP), subject fo the condition that they must settle first their financial obligation with the GSIS.