RA 8282

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Social Security System

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Policy

• “It is the policy of the State to establish, develop,

promote and perfect a sound and viable tax-exempt

social security system suitable to the needs of the

people throughout the Philippines which shall promote

social justice and provide meaningful protection tomembers and their families against the haards of

disability, sic!ness, maternity, old-age, death and other

contingencies resulting in loss of income or financial

burden"# $Sec" %, &' (%(%)

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*ffectivity

+ay %, ../

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0ision

Viable 1 protection through generations"

Universal 1 protection provided to all residents ofthe Philippines, citiens and non-citiens ali!e,regardless of creed, gender, age, geographiclocation and economic status, especially thedisadvantaged"

Equitable - fair and uniform coverage to all2benefits shall be meaningful and able to sustain

a decent standard of living"World-class service - prompt, accurate and

courteous service shall be provided"

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3ompulsory 3overage

Coverage of Employees

a" ' private employee who is not over 45 years old

b" ' household-helper earning at least P,555 a

month is covered starting Sept" , ..6" ' household-helper is any person who rendersdomestic or household services exclusively to ahousehold employer such driver, gardener, coo!,

governess, and other similar occupations"

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c" ' 7ilipino seafarer upon the signing of thestandard contract or employment between theseafarer and the manning agency which,together with the foreign ship owner, act as

employers"d" 'n employee of a foreign government,

international organiation or their wholly-ownedinstrumentality based in the Philippines, which

entered into an administrative agreement withthe SSS for the coverage of its 7ilipino wor!ers"

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Coverage of Employers

a" 'n employer, or any person who uses the services ofanother person in business, trade, industry or anyunderta!ing"

' social, civil, professional, charitable and other non-profit organiation which hire the services ofemployees are considered “employers#"

b" ' foreign government, international organiation or its

wholly-owned instrumentality such as embassy in thePhilippines, may enter into an administrativeagreement with the SSS for the coverage of its 7ilipinoemployees"

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Coverage of Self-Employed Persons

' self-employed person, regardless of trade, business oroccupation, with an income of at least P,555 a monthand not over 45 years old, should register with the SSS"

Included but not limited to are the following self-employed persons8 self-employed professionals2business partners, single proprietors and boarddirectors2 actors, actresses, directors, scriptwriters andnews correspondents who do not fall with the term

“employee#2 professional athletes, coaches, trainers and joc!eys2 farmers and fisherfol!s2 and wor!ers in theinformal sector such cigarette vendors, watch-your-car-boys, hospitality girls, among others"

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&P v" 'siapro 3ooperative

&espondent 'siapro, as a cooperative, is

composed of owners-members" Its

primary objectives are to provide savings

and credit facilities and to develop other

livelihood services for its owners-

members"

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In the discharge of the aforesaid primary objectives, respondent

cooperative entered into several Service 3ontracts with

Stanfilco 9 a division of :;<* Philippines, Inc" and a

company based in =u!idnon" >he owners-members do not

receive compensation or wages from the respondentcooperative" Instead, they receive a share in the service

surplus which the respondent cooperative earns from different

areas of trade it engages in, such as the income derived from

the said Service 3ontracts with Stanfilco" >he owners-

members get their income from the service surplus generatedby the ?uality and amount of services they rendered, which is

determined by the =oard of :irectors of the respondent

cooperative"

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&P v" 'siapro

In order to enjoy the benefits under the

Social Security <aw of ../, the owners-

members of the respondent cooperative,

who were assigned to Stanfilco re?uested

the services of the latter to register them

with petitioner SSS as self-employed and

to remit their contributions as such

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&P v" 'siapro

SSS sent a letter to 'siapro that based on the

Service 3ontracts it executed with Stanfilco,

respondent cooperative is actually a manpower

contractor supplying employees to Stanfilco andfor that reason, it is an employer of its owners-

members wor!ing with Stanfilco" >hus, respondent

cooperative should register itself with petitioner

SSS as an employer and ma!e the correspondingreport and remittance of premium contributions in

accordance with the Social Security <aw

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&P v" 'siapro

Who should determine e-e@

Since the existence of an employer-employee

relationship between the respondent cooperative

and its owners-members was put in issue andconsidering that the compulsory coverage of the

SSS <aw is predicated on the existence of such

relationship, it behooves the petitioner SS3 to

determine if there is really an employer-employeerelationship that exists between the respondent

cooperative and its owners-members"

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&P v" 'siapro

>he ?uestion on the existence of an employer-employee relationship is

not within the exclusive jurisdiction of the Aational <abor &elations

3ommission $A<&3)" 'rticle %/ of the <abor 3ode enumerating the

jurisdiction of the <abor 'rbiters and the A<&3 provides that8

'&>" %/" BC&IS:I3>I;A ;7 <'=;& '&=I>*&S 'A: >D*3;++ISSI;A" 9 $a) " " " "

xxx xxx xxx

4" *xcept claims for *mployees 3ompensation, Social Security,

+edicare and maternity benefits, all other claims, arising from

employer-employee relations, including those of persons indomestic or household service, involving an amount exceeding five

thousand pesos $PE,555"55) regardless of whether accompanied

with a claim for reinstatement"

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&P v" 'siapro

'lthough the aforesaid provision spea!s merely of

claims for Social Security, it would necessarily include

issues on the coverage thereof, because claims are

undeniably rooted in the coverage by the system"

Dence, the ?uestion on the existence of an employer-

employee relationship for the purpose of determining

the coverage of the Social Security System is

explicitly excluded from the jurisdiction of the A<&3

and falls within the jurisdiction of the SS3 which is

primarily charged with the duty of settling disputes

arising under the Social Security <aw of ../"

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&P v" 'siapro

In determining the existence of an employer-employee

relationship, the following elements are considered8

$) the selection and engagement of the wor!ers2 $%)

the payment of wages by whatever means2 $6) thepower of dismissal2 and $) the power to control the

wor!erFs conduct, with the latter assuming primacy

in the overall consideration" >he most important

element is the employerFs control of the employeeFs

conduct, not only as to the result of the wor! to be

done, but also as to the means and methods to

accomplish"

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&P v" 'siapro

'll elements are present in this case"7irst" It is expressly provided in the Service 3ontracts that it is the

respondent cooperative which has the exclusive discretion in the selection

and engagement of the owners-members as well as its team leaders who

will be assigned at Stanfilco"Second" >he wee!ly stipends or the so-called shares in the service surplus

given by the respondent cooperative to its owners-members were in

reality wages, as the same were e?uivalent to an amount not lower than

that prescribed by existing labor laws, rules and regulations, including the

wage order applicable to the area and industry2 or the same shall not be

lower than the prevailing rates of wages" It cannot be doubted then thatthose stipends or shares in the service surplus are indeed wages,

because these are given to the owners-members as compensation in

rendering services to respondent cooperativeFs client, Stanfilco

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&P v" 'siapro

>hird" It is also stated in the above-mentioned Service

3ontracts that it is the respondent cooperative which has

the power to investigate, discipline and remove the

owners-members and its team leaders who were

rendering services at Stanfilco"

7ourth" It is the respondent cooperative which has the sole

control over the manner and means of performing the

services under the Service 3ontracts with Stanfilco as

well as the means and methods of wor!" 'lso, therespondent cooperative is solely and entirely responsible

for its owners-members, team leaders and other

representatives at Stanfilco"

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SSS v" 3'

Ghether or not an agricultural laborer who

was hired on HpakyaH basis can be

considered an employee entitled to

compulsory coverage and corresponding

benefits under the Social Security <aw"

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SSS v" 3'

S38>here was no shred of evidence to show that >ana was only a

seasonal wor!er" 'll witnesses, including 'yalde, testified that

>ana and his family resided in the plantation" >he only logical

explanation for this set up was that >ana was wor!ing for mostpart of the year exclusively for 'yalde" ' closer scrutiny of the

records revealed that while 'yalde may not have directly

imposed on >ana the manner and methods to follow in

performing his tas!s, she did exercise control through her

overseer" Cnder the circumstances, the relationship between 'yalde and >ana has more of the attributes of employer-

employee than that of an independent contractor hired to

perform a specific project"

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<aaro v" SS3

Is a sales supervisor of a company engaged in the sale of

home appliances an employee of such company@

SS3, as upheld by the 3ourt of 'ppeals, found that <audato

was a sales supervisor and not a mere agent" 's such,

<audato oversaw and supervised the sales agents of thecompany, and thus was subject to the control of

management as to how she implements its policies and

its end results" S3 disinclined to reverse this finding, in

the absence of countervailing evidence from <aaro andalso in light of the fact that <audatoFs calling cards from

&oyal Star indicate that she is indeed a sales supervisor"

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SS3 v" 'lba

Ghether an administrator could be

considered an employer@ es"

7ar 'lba was no ordinary administrator" De

was no less than the son of the haciendaFs

owner and as such he was an owner-in-

waiting prior to his fatherFs death"

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SS3 v" 'lba

<amboso testified that he was selected and

his services were engaged by 7ar 'lba

himself" 3orollarily, 7ar 'lba held the

prerogative of terminating <ambosoFsemployment" <amboso also testified in a

direct manner that he had been paid his

wages by 7ar 'lba" >his testimony wasseconded by <ambosoFs co-wor!er"

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SS3 v" 'lba

Aot to be forgotten is the definition of an employer

under 'rticle 4/ $f) of the <abor 3ode which

deals with employeesF compensation and state

insurance fund" It defines a person as Hanyindividual, partnership, firm, association, trust,

corporation or legal representative thereofH"

Plainly, 7ar 'lba, as the hacienda administrator,

acts as the legal representative of the employerand is thus an employer within the meaning of

the law liable to pay the SS contributions"

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0oluntary 3overage

Coverage of Separated !embers

' member who is separated from employment orceased to be self-employedJ;7GJnon-wor!ing

spouse and would li!e to continue paying hisJhercontributions"

Coverage of "verseas #ilipino Workers $"#Ws%

' 7ilipino recruited in the Philippines by a

foreign-based employer for employment abroad2having a source of income in the foreign country2and permanent resident in a foreign country"

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Coverage of non-orking Spouse of SSS!embers

' person legally married to a currently employedand actively paying SSS member who devotesfull time in the management of household andfamily affairs may be covered on a voluntarybasis provided there is approval of the wor!ingspouse" >he person should never have been a

member of the SSS" >he contributions will bebased on E5K of the wor!ing spouseLs lastposted monthly salary credit but in no case shallit be lower than P,555"

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*ffectivity of coverage

Compulsory coverage

" 7or an employee 1 on the first day ofemployment

%" 7or an employer 1 on the first day theemployer hires employeeJs"

*mployer is given 65 days from date ofemployment to report the employee for

coverage to SSS"6" 7or self-employed 1 upon payment of first valid

contribution, in case of initial coverage"

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Voluntary coverage

" 7or ;7G 1 upon first payment of

contribution, in case of initial coverage"

%" 7or non-wor!ing spouse 1 upon first

payment of contribution"

6" 7or separated member 1 on the monththe person resumed payment of

contribution"

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<egal :ependents of +ember

>he legal beneficiaries of a member are8

• <egally married dependent spouse until he orshe remarries2

• :ependent legitimate, legitimated or legallyadopted and illegitimate children"

>hese two are primary beneficiaries"

If single, benefits will go to dependent parents

who are considered secondary beneficiaries"In absence of both primary and secondary, anyother person designated by member"

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:ependents

“$) >he legal spouse entitled by law to receive

support from the member2

“$%) >he legitimate, legitimated or legally adopted, and

illegitimate child who is unmarried, not gainfullyemployed, and has not reached twenty-one $%) years

of age, or if over twenty-one $%) years of age, he is

congenitally or while still a minor has been

permanently incapacitated and incapable of self-

support, physically or mentally2 and

“$6) >he parent who is receiving regular support from

the member

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SSS v" =ailon

• 3lemente M" =ailon $=ailon) and 'lice P"

:ia $'lice) contracted marriage in

=arcelona, Sorsogon"

• +ore than E years later, =ailon filed

before the then 3ourt of 7irst Instance

$37I) of Sorsogon a petition to declare

'lice presumptively dead"

• =y ;rder, the 37I granted the petition"

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SSS v" =ailon

• 3lose to 6 years after his wife 'lice was

declared presumptively dead, =ailon contracted

marriage with >eresita Bar?ue $respondent) in

3asiguran, Sorsogon"• =ailon, who was a member of the Social

Security System $SSS) since .45 and a retiree

pensioner thereof, died"

• &espondent thereupon filed a claim for funeral

benefits, and was granted P%,555 by the SSS

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SSS v" =ailon

3ecilia =ailon-ap $3ecilia), who claimed to be a

daughter of =ailon and one *lisa Bayona $*lisa)

contested before the SSS the release to respondent

of the death and funeral benefits" She claimed that

=ailon contracted three marriages in his lifetime, the

first with 'lice, the second with her mother *lisa,

and the third with respondent, all of whom are still

alive2 she, together with her siblings, paid for

=ailonFs medical and funeral expenses2 and all the

documents submitted by respondent to the SSS in

support of her claims are spurious

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SSS v" =ailon

SSS cancelled the pension"

&espondent protested asserting that her marriage

with =ailon was not declared before any court of

justice as bigamous or unlawful, hence, itremained valid and subsisting for all legal intents

and purposes as in fact =ailon designated her as

his beneficiary"

Ghen raised to SS3, it held that >eresita Bar?ue-

=ailon is not the legitimate spouse and primary

beneficiary of SSS member 3lemente =ailon"

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SSS v" =ailon

S38• >hat the SS3 is empowered to settle any dispute with respect to SSS

coverage, benefits and contributions, there is no doubt" In so

exercising such power, however, it cannot review, much less reverse,

decisions rendered by courts of law as it did in the case at bar when itdeclared that the :ecember 5, ./5 37I ;rder was obtained through

fraud and subse?uently disregarded the same, ma!ing its own findings

with respect to the validity of =ailon and 'liceFs marriage on the one

hand and the invalidity of =ailon and respondentFs marriage on the

other"

• In interfering with and passing upon the 37I ;rder, the SS3 virtually

acted as an appellate court" >he law does not give the SS3 unfettered

discretion to trifle with orders of regular courts in the exercise of its

authority to determine the beneficiaries of the SSS"

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In the case at bar, as no step was ta!en to

nullify, in accordance with law, =ailonFs

and respondentFs marriage prior to the

formerFs death in ..(, respondent isrightfully the dependent spouse-

beneficiary of =ailon"

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*mployment services excluded

" Purely casual employment and not for the purpose of occupation or

business of the employer

%" Services performed or in connection with an alien vessel by an

employee if heJshe is employed when such vessel is outside the

Philippines

6" Services performed in the employ of the Philippine government

" Service performed in the employ of a foreign government or

international organiation, or their wholly-owned instrumentality

unless there is an agreement with the Philippine Movernment for the

inclusion of such employees in the SSS

E" Such other temporary services performed by temporary employees

which may be excluded by regulation" *mployees of bona fide

independent contractors shall not be deemed employees of the

employer engaging the service of said contractors"

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:uties of employee-members

'mong others8

• Secure SS number

• *nsure they are reported for coverage bytheir employers

• Pay their monthly share"

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:uties of employer-members

'mong others8

• &e?uire presentation of SS number of prospectiveemployee

• &eport all employees for SS coverage within 65 days

from date of employment• :educt from the employees the monthly SS contributions

based on schedule of contributions2 pat their share ofcontributions including *mployeesL 3ompensation andremit these contributions to SSS or accredited ban!swithin first 5 calendar days following the month whensaid contributions are due and applicable

• Submit a summary of all contributions

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=enefits under

social security program

• 3overed employees are entitled to a

pac!age of benefits under social security

and *3 in the event of death, disability,

sic!ness, maternity, and old-age

• Self-employed and voluntary members

also get same benefits except those

benefits under the *3 program

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Sic!ness benefit

• ' daily cash allowance paid for the number of days amember is unable to wor! due to sic!ness or injury" >heamount is e?uivalent to .5K of the memberLs averagedaily salary credit"

• &equirements8

" De is unable to wor! due to sic!ness or injury andconfined either in a hospital or at home for at least days2

%" De has paid at least 6 months of contributions within the%-month period immediately before the semester ofsic!nessJinjury

In computing, exclude the semester of sic!ness" 'semester refers to two consecutive ?uarters ending in the?uarter of sic!ness" ' ?uarter refers to three consecutivemonths ending +arch, Bune, September or :ecember"

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6" De has used up all company sic! leaves withpay2 and

" De has notified the employer or SSS, if

separated, voluntary or self-employed"Aotify employer within E calendar days after startof sic!nessJinjury and employer must notify SSSwithin E days after receipt of notification" Aotice

is not re?uired if memberLs confinement is inhospital or member got sic! while wor!ing orwithin company premises"

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#or e'ample8 SSS member gets sic! in

;ctober %554 for %5 days"

a" >he semester of sic!ness would be from

Buly %554 to :ecember %554"

b" >he %-month period would be from Buly

%55E to Bune %554 $where the six

highest monthly salary credits will be

chosen)"

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In no case shall the daily sic!ness benefit be

paid longer than one hundred twenty $%5)

days in one $) calendar year, nor shall

any unused portion of the one hundredtwenty $%5) days of sic!ness benefit

granted under this section be carried

forward and added to the total number ofcompensable days allowable in the

subse?uent year"

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Effect of failure or delay in notification

• If employees notifies beyond period, confinementshall be deemed to have started not earlier than thefifth day"

• If employer notifies beyond period, employer shallbe reimbursed only for each day of confinementstarting from the 5th calendar day immediatelypreceding the date of notification to SSS"

• If employee notified the employer but the latter failedto notify SSS, employer shall have no right torecover the daily sic!ness allowance advanced"

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Prescribed period in filing a claim of amember confined in hospital(home8

" 7or hospital, claim for benefit must be

filed within year from last day ofconfinement2

%" 7or home, year from start of illness"

7ailure to file the claim within theprescribed period will result to denial ofclaim"

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+aternity =enefit

• It is a daily cash allowance granted to

female member who was unable to wor!

due to childbirth or miscarriage"

• It is e?uivalent to 55K of memberLs

average daily salary credit multiplied by 45

days for normal delivery pr miscarriage, /(

days for caesarian section delivery"

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)ualifications for entitlement8

" She has paid at least three monthlycontributions within the %-month period

immediately preceding the semester ofher childbirth or miscarriage

%" She has given the re?uired notification of

her pregnancy through her employer ifemployed, or to SSS if separated,voluntary or self-employed"

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#or e'ample8 SSS member gives birth in

:ecember %554"

a" >he semester of contingency would be

from Buly %554 to :ecember %554"

b" >he %-month period before the

semester of contingency would be from

Buly %55E to Bune %554"

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*eliveries covered8

;nly for the first four deliveries or miscarriagesshall be paid starting +ay %, ../ $effectivity of&' (%(%)

+otice required8 's soon as pregnancy is confirmed, membermust notify immediately employer or SSS, ifunemployed, etc" and probable date of childbirth

at least 45 days from date of conception"*mployer must in turn notify SSS after receipt ofnotification" 7ailure to observe the rule mayresult in denial"

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Can a member apply for sickness benefit

if she has been paid maternity benefit@

Ao, because as a rule, no member can be

entitled to two benefits for the same

period"

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:isability =enefit

*isability 1 any restriction or lac! $lac! from

impairment) of ability to perform an activity

in the manner or within the range

considered normal for a human being"

,mpairment 1 any loss or abnormality of

psychological, physiological, or anatomical

structure or function"

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Who is qualified@

' member who suffers partial or totalpermanent disability with at least one

monthly contribution paid to the SSS prior

to the semester of contingency"

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Some partial permanent disabilities8

one thumb one big toe

one index finger one hand

one middle finger one armone ring finger one foot

one little finger one leg

hearing of one ear one ear

hearing of both ears both ears

sight of one eye

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Some total permanent disabilities8

" 3omplete loss of sight of both eyes

%" <oss of two limbs at or above the an!les or

wrists6" Permanent complete paralysis of two limbs

" =rain injury resulting to incurable imbecility or

insanityE" Such cases as determined and approved by

SSS

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;rtega v" SS3

3laims under the <abor 3ode for compensation and

under the Social Security <aw for benefits are not

the same as to their nature and purpose"

;n the one hand, the pertinent provisions of the

<abor 3ode govern compensability of wor!-related

disabilities or when there is loss of income due to

wor!-connected or wor!-aggravated injury or illness"

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;rtega v" SS3

;n the other hand, the benefits under the Social Security

<aw are intended to provide insurance or protection

against the haards or ris!s of disability, sic!ness, old age

or death, inter alia, irrespective of whether they arose from

or in the course of the employment"

'nd unli!e under the Social Security <aw, a disability is

total and permanent under the <abor 3ode if as a result of

the injury or sic!ness the employee is unable to performany gainful occupation for a continuous period exceeding

%5 days regardless of whether he loses the use of any of

his body parts"

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ypes of disability benefits8

+onthly pension 1 cash benefit paid to adisabled member who has paid at least 64monthly contributions to the SSS prior to thesemester of disability"

In addition to monthly pension, supplementalallowance of PE55 is paid to the total or partial

disability pensioner"<ump sum amount 1 granted to those who havenot paid the re?uired 64 monthly contributions"

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,s monthly pension for life@

>he member who suffers from permanent total

disability shall receive monthly pension for life"

Dowever, the said monthly pension shall besuspended8 $) if he recovers from his

permanent total disability2 $%) if he resumes

employment2 $6) if he fails to report for annual

physical exam upon notice by SSS" :omiciliaryservice $if member is unable to report to SSS for

exam) can be re?uested"

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>he member who suffers from permanent

partial disability shall receive his monthly

pension for the duration of a certain

number of months assessed based on thedegree of his disability"

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Prescriptive period in filing a disability

claim8

5 years from the date of occurrence of

disability"

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&etirement =enefit

It is a cash benefit either in monthly

pension or lump sum paid to a member

who can no longer wor! due to old age"

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Who may qualify@

" ' member who is 45 years old, separated

from employment or ceased to be self-

employed, and has paid at least %5 monthlycontributions prior to the semester of retirement"

%" ' member who is 4E years old whether

employed or not and has paid at least %5

monthly contributions prior to the semester ofretirement"

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:ycaico v" SSS

• =onifacio S" :ycaico, member of the SSS, In his self-

employed data record, he named the petitioner, *lena P"

:ycaico, and their eight children as his beneficiaries" 't

that time, =onifacio and *lena lived together as husband

and wife without the benefit of marriage"• In Bune .(., =onifacio was considered retired and

began receiving his monthly pension from the SSS" De

continued to receive the monthly pension until he passed

away on Bune ., ../" ' few months prior to his death,however, =onifacio married the petitioner on Banuary 4,

../"

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:ycaico v" SSS

Shortly after =onifacioFs death, the petitioner

filed with the SSS an application for

survivorFs pension" Der application,

however, was denied on the ground thatunder Section %-=$d) of &epublic 'ct

$&ep" 'ct) Ao" (%(% or the Social Security

<aw % she could not be considered aprimary beneficiary of =onifacio as of the

date of his retirement"

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:ycaico v" SSS

• Sec" %-=" &etirement =enefits" 9

xxx xxx xxx

$d) Cpon the death of the retired member,

his primary beneficiaries as of the date of

his retirement shall be entitled to receive

the monthly pension" " " "

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:ycaico v" SSS

SS3 opined that under Section %-=$d) of

&ep" 'ct Ao" (%(%, the primary

beneficiaries who are entitled to survivorFs

pension are those who ?ualify as such asof the date of retirement of the deceased

member" Dence, the petitioner, who was

not then the legitimate spouse of =onifacioas of the date of his retirement, could not

be considered his primary beneficiary"

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:ycaico v" SSS

S38

>he proviso Has of the date of his

retirementH in Section %-=$d) of &ep" 'ct

Ao" (%(%, which ?ualifies the termHprimary beneficiaries,H is unconstitutional

for it violates the due process and e?ual

protection clauses of the 3onstitution"

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:ycaico v" SSS

:ue process8

>he proviso Has of the date of his retirementH in

Section %-=$d) of &ep" 'ct Ao" (%(% runs afoul

of the due process clause as it outrightlydeprives the surviving spouses whose respective

marriages to the retired SSS members were

contracted after the latterFs retirement of their

survivorFs benefits" >here is outright confiscationof benefits due such surviving spouses without

giving them an opportunity to be heard"

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:ycaico v" SSS

*?ual protection8

&esults in the classification of dependent

spouses as primary beneficiaries into two groups8

• $) >hose dependent spouses whose respectivemarriages to SSS members were contracted prior

to the latterFs retirement2 and

• $%) >hose dependent spouses whose respective

marriages to SSS members were contracted afterthe latterFs retirement"

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#or Underground !ineorkers8

" Das reached the age of EE years old and is anunderground minewor!er for at least E years $eithercontinuous or accumulated) prior to the semester of

retirement but whose actual date of retirement is notearlier than +arch 6, ..(2 separated from employmentor in the case of self-employed, has ceased self-employment, and has paid at least %5 monthlycontributions prior to the semester of retirement"

%" has reached the age of 45 years old whetheremployed or not and has paid at least %5 monthlycontributions prior to the semester of retirement"

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ypes of retirement benefits8

" +onthly pension

%" <ump sum amount

'side from retirement benefit, retiree is entitledto a 6th month pension payable every:ecember" 'll retiree pensioners prior toeffectivity of &' /(/E on +arch , ..E are

automatically considered members of PhilDealthand he and his legal dependents are entitled toits hospitaliation benefits"

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:eath =enefit

It is a cash benefit either in monthly

pension or lump sum paid to the

beneficiaries of a deceased member"

ypes of death benefit8

" +onthly pension

%" <ump sum amount

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.eneficiaries8

Primary8 $) <egitimate dependent spouse until

the person remarries2 $%) dependent legitimate,

legitimated or legally adopted and illegitimatechildren who are not yet % years old"

Secondary8 In the absence of primary,

dependent parents"

In their absence, any other person designated

by member in record"

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Signey v" SSS

Gho is entitled to the social security

benefits of a Social Security System $SSS)

member who was survived not only by hislegal wife, but also by two common-law

wives with whom he had six children@

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Signey v" SSS

In the case at bar, the existence of a prior subsistingmarriage between the deceased and *ditha is

supported by substantial evidence" Petitioner, who

has fully availed of her right to be heard, only relied

on the waiver of *ditha and failed to present any

evidence to invalidate or otherwise controvert the

confirmed marriage certificate registered under

<3& &egistry Ao" %5(6 on % Aovember .4/" She

did not even try to allege and prove any infirmity in

the marriage between the deceased and *ditha"

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Signey v" SSS

SS3 found $affirmed by 3' and S3) based

on the SSS field investigation report that

even if *ditha was the legal wife, she was

not ?ualified to the death benefits sinceshe herself admitted that she was not

dependent on her deceased husband for

support inasmuch as she was cohabitingwith a certain '?uilino 3astillo"

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Signey v" SSS

&esolving the determinative ?uestion of who betweenpetitioner and the illegitimate children of the deceased

are the primary beneficiaries lawfully entitled to the

social security benefits accruing by virtue of the latterFs

death, 3' held that based on Section ( $e) of &"'" Ao"(%(%, a surviving spouse claiming death benefits as a

dependent must be the legal spouse" PetitionerFs

presentation of a marriage certificate attesting to her

marriage to the deceased was futile, according to the

appellate court, as said marriage is null and void in view

of the previous marriage of the deceased to *ditha as

certified by the <ocal 3ivil &egistrar of 3ebu 3ity"

Si SSS

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Signey v" SSS

>he appellate court also held that the law is clear that for a childto be ?ualified as dependent, he must be unmarried, not

gainfully employed and must not be % years of age, or if over

% years of age, he is congenitally or while still a minor has

been permanently incapacitated and incapable of self-support,

physically or mentally" 'nd in this case, only the illegitimate

children of the deceased with Mina namely, Minalyn and

&odelyn, are the ?ualified beneficiaries as they were still

minors at the time of the death of their father" 3onsidering

petitioner is dis?ualified to be a beneficiary and the absence ofany legitimate children of the deceased, it follows that the

dependent illegitimate minor children of the deceased should

be entitled to the death benefits as primary beneficiaries"

Si SSS

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Signey v" SSS

Ghoever claims entitlement to the benefits provided bylaw should establish his or her right thereto by

substantial evidence" Since petitioner is dis?ualified to

be a beneficiary and because the deceased has no

legitimate child, it follows that the dependent illegitimateminor children of the deceased shall be entitled to the

death benefits as primary beneficiaries" >he SSS <aw is

clear that for a minor child to ?ualify as a Hdependent,“

the only re?uirements are that heJshe must be below %

years of age, not married nor gainfully employed"

Si SSS

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Signey v" SSS

In this case, the minor illegitimate children Minalyn and&odelyn were born on 6 'pril ..4 and %5 'pril

%555, respectively" Dad the legitimate child of the

deceased and *ditha survived and ?ualified as a

dependent under the SSS <aw, Minalyn and&odelyn would have been entitled to a share

e?uivalent to only E5K of the share of the said

legitimate child" Since the legitimate child of the

deceased predeceased him, Minalyn and &odelyn,as the only ?ualified primary beneficiaries of the

deceased, are entitled to 55K of the benefits"

SSS : < S t

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SSS v" :e <os Santos

• >he obvious conclusion then is that a wife who isalready separated de facto from her husband

cannot be said to be Hdependent for supportH

upon the husband, absent any showing to the

contrary" 3onversely, if it is proved that the

husband and wife were still living together at the

time of his death, it would be safe to presume

that she was dependent on the husband forsupport, unless it is shown that she is capable of

providing for herself"

SSS : < S t

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SSS v" :e <os Santos

• &espondent herself admits that she left the conjugalabode on two $%) separate occasions, to live with two

different men" >he first was in .4E, less than one

year after their marriage, when she contracted a

second marriage to :omingo >alens" >he secondtime she left 'ntonio was in .(6 when she went to

the CS, obtained a divorce, and later married an

'merican citien"

• In fine, these uncontroverted facts remove her from?ualifying as a primary beneficiary of her deceased

husband"

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!onthly pension 1 depends on memberLs paidcontributions, including the credited years of service

$3S) and the number of dependent minor children

but not to exceed five"

In addition to death benefit, beneficiaries are entitled

to 6th month pension payable every :ecember and

funeral benefit expenses which is paid to whoever

shouldered the funeral expenses of the deceasedmember" 7uneral grant is P%5,555 $effective Sept" ,

%555)"

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,f deceased member is survived by legitimate/ legitimatedor legally adopted and illegitimate children/ ho is

monthly pension to be divided@

If survived by less than five, the illegitimate minor childrenwill be entitled to E5K of the share of the legitimate,

legitimated or legally adopted and 55K of the

dependentsL pension $e?uivalent to 5K of the memberLs

monthly pension or P%E5 whichever is higher)" ;nly five

minor children, beginning from the youngest, are entitled to

dependentsL pension" Ghen there are more than E, the

legitimate, legitimated or legally adopted shall be preferred"

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#or ho long ill the dependent child receivethe pension@

Ghen the child reaches % years old, gets

married, gets employed or dies" Dowever, thedependentsL pension is granted for life to

children who are over % years old, provided

they are incapacitated and incapable of self-

support due to physical or mental disabilitywhich is congenital and ac?uired during minority"

3 t ib ti

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3ontributions

SSS 1 5"K of the monthly salary credit notexceeding PE,555 and payable by both

employer $/"5/K) and employee $6"66K)

effective Ban" , %55/"EC 1 Starting Ban" , %55/, P5 for a

monthly salary credit of P,E55 and below

and P65 for employees with an +S3 ofPE,555 and payable only by employer"

SS A b

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SS Aumber

>he SS number assigned to a member is the lifetime numberand must always be used in all transactions with the SSS" >he

member should not secure another number at any other time"

If the member wishes to secure another SS card and cannot

remember the SS number, it is advisable to in?uire from the SSS

servicing branch"If a member has more than one SS number, this will cause

delay in processing of the claim for benefits or loans in the future"

>hus, it is important that a member should have only one SS

number" >herefore, heJshe should write or visit the SSS servicing

branch to re?uest for the cancellation of the other numberJs andconsolidation of all of the contributions under the retained number"

7rom then on, the retained number should be used in all

transactions with the SSS"

&i ht t I tit t

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&ight to Institute

Sec" %% - “>he right to institute thenecessary action against the employer

may be commenced within twenty $%5)

years from the time the delin?uency is!nown or the assessment is made by the

SSS, or from the time the benefit accrues,

as the case may be"#

< 3'

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<o v" 3'

Private respondentLs application was denied because theSSS records showed that he became a member only in

.(6, and contributions in his favor were remitted only from

;ctober .(6 to September .(" 's private respondent

!new that SSS contributions were deducted from his salarysince compulsory SSS coverage too! effect in .E/, he

filed a petition with the Social Security 3ommission against

Bose <o and his son &afael <o, who too! over the

management of the company" >he 3ommission upheld

private respondentFs claim and ordered petitioner and Bose<o to remit to the SSS the unpaid contribution in favor of

private respondent, including penalties and charges"

<o 3'

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<o v" 3'

Petitioner filed a petition for review with the 3ourt of 'ppeals,which affirmed the decision of the 3ommission" Ghen the

appellate court denied his motion for reconsideration,

petitioner filed this petition for review by certiorari" De

contended that the lower court erred in ruling that the claimhad not yet prescribed" Petitioner claimed that Payment of

SS premium, as stated in the :ecision, is an obligation

created by law hence, without need of demand, it becomes

due on the date when such payment should be made"

Dence, under 'rticle E5 Nof the 3ivil 3odeO, the right ofaction to recover unremitted SS premium accrues on the

date it is payable and may be brought beginning such date"

<o v 3'

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<o v" 3'

S38

Supreme 3ourt dismissed the petition, and affirmed the decision of the

3ourt of 'ppeals" Section %% $b), par" %, of &epublic 'ct Ao" 4, or

the SSS <aw, expressly provides that the right to institute the

necessary action against the employer may be commenced withintwenty years from the time the delin?uency is !nown or the

assessment is made by the SSS, or from the time the benefit

accrues, as the case may be" >he provision is clear that the period

of prescription commences to run only upon the discovery of the

violation, which too! place in .(E" Ghen the complaint was filed on 'ugust , .(E, less than one year had passed since private

respondent discovered the delin?uency" >herefore, the claim was

timely instituted"

Penal 3lause

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Penal 3lause

Gho are liable and what are the penalties"

Gho can file@“$i) 3riminal action arising from a violation of the provisions

of this 'ct may be commenced by the SSS or theemployee concerned either under this 'ct or in

appropriate cases under the &evised Penal 3ode8

Provided, >hat such criminal action may be filed by the

SSS in the city or municipality where the SSS office islocated, if the violation was committed within its territorial

jurisdiction or in +etro +anila, at the option of the SSS"

Marcia v SS3

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Marcia v" SS3

SS3 found Marcia, the sole surviving director ofImpact 3orporation, petitioner herein, liable for

unremitted SSS contributions"

Issue is whether or not petitioner, as the onlysurviving director of Impact 3orporation, can be

made solely liable for the corporate obligations

of Impact 3orporation pertaining to unremitted

SSS premium contributions and penaltiestherefore"

Marcia v SS3

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Marcia v" SS3

Petitioner challenges the finding of the 3ourtof 'ppeals that under Section %( $f) of the

Social Security <aw, a mere director or

officer of an employer corporation, and notnecessarily a HmanagingH director or

officer, can be held liable for the unpaid

SSS premium contributions"

Marcia v SS3

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Marcia v" SS3

• Section %( $f) of the Social Security <awprovides the following8

$f) If the act or omission penalied by this

'ct be committed by an association,partnership, corporation or any other

institution, its managing head, directors or

partners shall be liable to the penaltiesprovided in this 'ct for the offense"

Marcia v SS3

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Marcia v" SS3

S38>his 3ourt though finds no need to resort to statutory

construction" Section %( $f) of the Social Security <aw

imposes penalty on8

$) the managing head2

$%) directors2 or

$6) partners, for offenses committed by a juridical person

>he said provision does not ?ualify that the director orpartner should li!ewise be a Hmanaging directorH or

Hmanaging partner"“ >he law is clear and unambiguous

Marcia v SS3

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Marcia v" SS3

'lthough a corporation once formed is conferred a juridical personality separate and distinct from

the persons comprising it, it is but a legal fiction

introduced for purposes of convenience and to

subserve the ends of justice" >he concept

cannot be extended to a point beyond its

reasons and policy, and when invo!ed in support

of an end subversive of this policy, will bedisregarded by the courts"

>an v =allena

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>an v" =allena

In answer to criminal complaint for violationof SS law, petitioners interposed the

defenses of lac! of criminal intent and

good faith as their failure to remit wasbrought about by alleged economic

difficulties, and they have already agreed

to settle their obligations with the SSSthrough a memorandum of agreement to

pay in installments"

>an v =allena

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>an v" =allena

S38

's held by the 3ourt of 'ppeals, the claims of

good faith and absence of criminal intent for

the petitionersF ac!nowledged non-remittance of the respondentsF contributions

deserve scant consideration" >he violations

charged in this case pertain to the SSS <aw,which is a special law" 's such, it belongs to

a class of offenses !nown as mala prohibita"

Social Security 3ommission

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Social Security 3ommission

3omposed of the Secretary of <abor and*mployment or his duly designated undersecretary,

the SSS president and seven $/) appointive

members, three $6) of whom shall represent the

wor!ersL group, at least one of whom shall be awoman2 three $6), the employersL group, at least one

$) of whom shall be a woman2 and one $), the

general public whose representative shall have

ade?uate !nowledge and experience regardingsocial security, to be appointed by the President of

the Philippines"

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>o carry out the purposes of this 'ct,the Social Security System, hereinafter

referred to as SSSL, a corporate body,

with principal place of business in +etro+anila, Philippines is created"

>he System shall be directed andcontrolled by the SS3"

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'ny dispute arising under &' (%(% with respect tocoverage, benefits, contributions and penalties

thereon or any other matter related thereto, shall be

cogniable by the 3ommission, and any case filed

with respect thereto shall be heard by the3ommission, or any of its members, or by hearing

officers duly authoried by the 3ommission and

decided within twenty $%5) days after the submission

of the evidence" >he filing, determination andsettlement of disputes shall be governed by the rules

and regulations promulgated by the 3ommission"

SSS v 'tlantic Mulf

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SSS v" 'tlantic Mulf

Ghich body has jurisdiction to entertain acontroversy arising from the non-

implementation of a dacion en pago

agreed upon by the parties as a means ofsettlement of private respondentsF

liabilities@

SSS v 'tlantic Mulf

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SSS v" 'tlantic Mulf

7rom the allegations of respondentsFcomplaint, it readily appears that there is

no longer any dispute with respect to

respondentsF accountability to the SSS"&espondents had, in fact, admitted their

delin?uency and offered to settle them by

way of dacion en pago subse?uentlyapproved by the SSS"

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3ourt &eview" 1 >he decision of the 3ommission upon any disputedmatter may be reviewed both upon the law and the facts by the 3ourt of

'ppeals" 7or the purpose of such review, the procedure concerning

appeals from the &egional >rial 3ourt shall be followed as far as

practicable and consistent with the purposes of this 'ct" 'ppeal from a

decision of the 3ommission must be ta!en within fifteen $E) days from

notification of such decision" If the decision of the 3ommission involves

only ?uestions of law, the same shall be reviewed by the Supreme

3ourt" Ao appeal bond shall be re?uired" >he case shall be heard in a

summary manner, and shall ta!e precedence over all cases, except that

in the Supreme 3ourt, criminal cases wherein life imprisonment or

death has been imposed by the trial court shall ta!e precedence" Aoappeal shall act as a supersedeas or a stay of the order of the

3ommission unless the 3ommission itself, or the 3ourt of 'ppeals or

the Supreme 3ourt, shall so order"

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3riminal offenses for violations of the laware within the jurisdiction of the regular

courts"

Documents

RA 8282