Professional Documents
Culture Documents
The Social Security Law
The Social Security Law
FACTS: The Roman Catholic Archbishop of Manila filed with the Social Security Commission a request
that Catholic charities and all religious and charitable institutions and organizations be exempted
from compulsory coverage of SSS.
ISSUE: Whether the inclusion of religious organizations under the coverage of the SSS violates the
constitutional prohibition against the application of public funds for the use, benefit or support of any
priest who may be employed by the Church
RULING: NO. The funds contributed to the Social Security System are not public funds. The funds
belong to the members and are merely held in trust by the Government
COMPULSORY COVERAGE
a) All employers engaged in business in the Philippines, including religious, charitable or nonprofit institutions
b) All employees not over 60 years of age
c) Domestic helpers receiving at least Php 1,000/month
d) Aliens employed in the Philippines
e) Self-employed persons
f) Self-employed professionals
g) Partners and single proprietors of businesses
h) Actors, actresses, directors, scriptwriters, and news correspondents
i) Professional athletes, coaches, trainers and jockeys
j) Individual farmers and fishermen
VOLUNTARY COVERAGE
Spouses who devote full time to managing the household and family affairs
Filipinos recruited for overseas employment by foreign-based employers
EFFECTIVE DATE OF COVERAGE
For employers on the 1st day of operation
For employees on the 1st day of his employment
For the self-employed upon his registration with the SSS
Employees not covered by the SSS Law
Purely casual employees
Employees serving on an alien vessel, when such vessel is outside of the Philippines
Employees of the Philippine government
Employees of foreign government, international organization, and their wholly-owned
instrumentality
Temporary employees, if excluded by regulation of the SSC
Obligations of Employer
a) To make a timely report of its employees for coverage
b) To make timely remittance of premiums (within the first 7 days of the month)
Effect of non-reporting and non-remittance of contributions:
Employee : still entitled to social security benefits
Employer: must pay all unpaid contributions plus a penalty of 3% three percent per month;
and liable for a criminal offense punishable by fine and/or imprisonment
MENDOZA VS. PEOPLE OF THE PHILIPPINES
FACTS: Mendoza, president of Summa Alta Tierra Industries, Inc. (SATII), failed to remit the monthly
premium contributions of his employees. He requested for several extensions of time to settle the
amount due but he failed to remit the said amount. He sought to exculpate himself by claiming good
faith and explaining that during the period of non-remittance, SATII shut down due to the general
decline in the economy. He claimed that he is merely a conduit of SATII and, therefore, should not be
held personally liable for its liabilities.
ISSUE: Whether Mendoza, as president of SATII, should be liable for failure to remit the monthly
premium contributions of his employees despite his good faith
RULING: YES. Mendoza, as president of SATII, is the managing head who is liable for the act or
omission penalized under the Social Security Act.
The Social Security Act is a special law (malum prohibutum) and the penalty for failure to
remit premium contribution is punitive in character, hence, lack of criminal intent or good
faith is not a defense.
From the moment the remittance of premiums due is delayed, the penalty immediately
attaches to the delayed premium payments by force of law.
DUE DATES OF CONTRIBUTIONS
OFWs: Payment of contributions for the months of January to December of a given year may be paid
within the same year; contributions for the months of October to December of a given year may also
be paid on or before the 31st of January of the succeeding year.
FOR EMPLOYED MEMBERS
It is important that you are aware of the payment deadlines for contributions and member
loans in order to avoid incurring penalties. If you are an employee-member, your employer must pay
your contributions and member loans monthly in accordance with the prescribed schedule of
payment which is according to the 10th digit of the Employer's ID Number. Late payments will result
to penalties and delays in the processing of your benefits and loans.
The frequency of payment is on a monthly basis for business and household employers.
FOR SELF-EMPLOYED AND VOLUNTARY MEMBERS
If you are a self-employed or a voluntary member, the prescribed schedule of payment is also
being followed, (depending on the 10th (last digit) of the SE/VM SS number). However, the frequency
of contribution payments for self-employed or a voluntary member can be on a monthly or quarterly
basis. A quarter covers three (3) consecutive calendar months ending on the last day of March, June,
September and December. Any payment for one, two or all months for a calendar quarter may be
made.
Securing an SSS number does not automatically make a person an SSS member. He is
considered a member when he:
has been reported for SSS coverage
has paid at least 1 month contribution
Social Security Law requires the presentation of SSS number as a condition for employment.
A member cannot withdraw membership with the SSS (when a person registers and is
covered for SSS membership, he/she becomes a member for life)
Effect of separation from employment:
Employer's obligation to pay SSS contributions ceases at the end of the month of separation
Effect of Interruption of Business or Professional Income:
No income in any given month: Not required to pay contributions for that month
No retroactive payment is allowed
TYPE OF BENEFIT
QUALIFYING CONDITIONS
AMOUNT OF BENEFIT
MATERNITY
A daily cash allowance
granted to a female
member who is unable to
work due to childbirth or
miscarriage
At least 3 months of
contributions within the 12month period immediately
before the semester of her
childbirth or miscarriage;
Procedure:
- Employee should notify
employer of her pregnancy &
probable date of childbirth
- Employer shall advance
payment within 30 days
from filing of maternity
leave application
- SSS shall reimburse the
employer the amount paid
SICKNESS
A daily cash allowance
paid for the number of
days a member is unable
to work due to sickness or
injury
Confined either in a
hospital or at home for
at least 4 days;
- Has paid at least 3
monthly contributions in
the 12-month period
immediately preceding
the semester of
sickness;
- Has exhausted the
company sick leave
with pay
Procedure:
Employee must notify
employer within 5 days
after the start of
confinement
-
PERMANENT TOTAL
DISABILITY
A cash benefit granted
either as a monthly
pension or a lump sum
amount to a member
who becomes permanently
disabled
PERMANENT PARTIAL
DISABILITY
disablement to do the
same or similar kind of
work that the SSS
member was trained
for and accustomed to
perform because of:
(a) Complete loss of sight of
both eyes
(b) Loss of 2 limbs at or above
the ankle or wrists
(c) Permanent or complete
paralysis of two limbs
(d) Brain injury resulting in
incurable imbecility or insanity
(e) Such cases as determined
and approved by the SSS
-
RETIREMENT
DEATH
A cash benefit granted
either as a monthly
pension or a lump sum
amount to the
beneficiaries of a
deceased member.
Primary Beneficiary:
Monthly Pension: member
has paid at least 36 monthly
contributions prior to the
semester of death
Computation of Lump
Sum:
FUNERAL BENEFITS
PRIMARY BENEFICIARIES
Dependent spouse until he or she remarries
Dependent legitimate, legitimated or legally adopted, and illegitimate children
Dependent illegitimate children entitled to 50% of the share of the legitimate,
legitimated or legally adopted children
Absence of the dependent legitimate & legitimated children dependent
illegitimate children shall be entitled to 100% of the benefits
SECONDARY BENEFICIARIES
Dependent parents
Any other person designated by the member
DEPENDENTS
Legal spouse
Legitimate, legitimated or legally adopted, and illegitimate child who is:
unmarried;
not gainfully employed; and
has not reached 21 years of age; or
if over 21 years of age, he is congenitally or while still a minor has been permanently
incapacitated and incapable of self-support, physically or mentally;
Parent receiving regular support from the member