Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 24)
The Act shall be known as the 'Social Security Law.'
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, providing protection against disability, sickness, old age, and death to covered employees and their families.
The SSS is directed and controlled by a Social Security Commission composed of the Secretary of Labor, the SSS Administrator, and six appointive members representing labor, management, and the general public, appointed by the President with the consent of the Commission on Appointments.
The Administrator of the SSS, appointed by the President with the consent of the Commission on Appointments, serves as the chief executive officer responsible for carrying out the SSS program and policies.
Decisions or awards of the Commission, once final and executory, shall be enforced and executed like decisions of Courts of First Instance. The Commission may issue writs of execution to sheriffs, and non-compliance can lead to contempt of court penalties.
Covered employees are those subject to compulsory coverage under the SSS, including those whose employers are required to remit monthly contributions as scheduled by the law.
A covered employee must have paid at least 120 monthly contributions and reached age 60 and separated from employment or reached age 65 with at least 120 contributions, or have paid 36 monthly contributions and be permanently totally disabled.
Monthly pensions are computed based on a percentage of the average monthly salary credit, including 45% of the first 300 pesos plus 9% of the excess over 300 pesos, plus 0.1% for each monthly contribution in excess of 120, with a minimum pension of 45 pesos.
A covered employee who has paid at least 12 monthly contributions and is confined for more than five days due to sickness or injury is entitled to a daily allowance equivalent to 70% of the average daily salary credit, subject to maximum limits and notification requirements to the employer and SSS.
Employers may pay damages equivalent to benefits lost due to misrepresentation, are liable for unpaid contributions plus a 3% monthly penalty, and may face criminal penalties under Article 315 of the Revised Penal Code for failure to remit employee contributions deducted from salaries.
No, benefits are not transferable and cannot be collected through power of attorney except when the beneficiary is physically or legally unable to collect personally. Benefits must be paid to the entitled beneficiaries or legal heirs in the case of death.
All contributions, funds, benefits, and related documents of the SSS are exempt from taxes, fees, and legal processes such as attachment or garnishment, except to pay any debts owed by the covered employee to the SSS.
The contributions vary by salary brackets ranging from 1 to 1000 pesos monthly salary credit with the employer and employee contributions assigned accordingly, starting from 1.50 pesos total contribution in the lowest bracket to 60 pesos total in the highest.
If an employer fails to remit deductions within 30 days from due date, it is presumed misappropriation, punishable under Article 315 of the Revised Penal Code and subject to additional penalties under the Social Security Law.
Employers must report employees' data and contributions promptly to the SSS, keep accurate work records open for inspection, require a registration number from employees as condition of employment, and submit annual registers and other reports as required.