Question & AnswerQ&A (Republic Act No. 4857)
The Social Security System has its principal place of business in Manila or Quezon City, Philippines.
The Social Security Commission is composed of the Secretary of Labor and six appointive members: two representing the labor group, two representing management, and two representing the general public, all appointed by the President with consent of the Commission on Appointments.
The appointive members serve for a term of three years, but the first six members have staggered terms of one, two, and three years for every two members respectively.
Members receive fifty pesos per diem for each meeting attended but are not paid for more than eight meetings a month.
Disputes regarding coverage, entitlement to benefits, collection and settlement of premium contributions, penalties, and any other related matters are within the Commission's jurisdiction.
Dependents include the legitimate spouse, unmarried legitimate or legitimated children under 21 years old, and parents wholly dependent on the covered employee for regular support.
Employment excludes services performed for foreign governments, international organizations, or their wholly owned instrumentalities, except where an agreement with the Philippine Government includes such employees in the Social Security System.
Beneficiaries include the legitimate spouse, legitimate, legitimated, acknowledged natural children (and their descendants), legitimate parents, brothers, and sisters; or any other person designated if none of the foregoing are available.
The employer's obligation ceases at the end of the month of separation, although the employee may continue contributions on their own to maintain benefits.
The employee must be at least 60 years old and have paid at least 120 monthly contributions; or if totally and permanently disabled, must have paid at least 36 monthly contributions.
The monthly pension equals 30% of the first 300 pesos of the average monthly salary credit, plus 6% of the excess over 300 pesos, plus 1/16 of 1% of the average monthly salary credit for each contribution beyond 120.
The minimum monthly pension is thirty pesos.
They receive the basic lump sum amount plus 5/12 of 1% of the lump sum for each monthly contribution over 120, subject to conditions on payment ratio and minimum benefits.
A covered employee who has paid at least 12 contributions and is confined over 5 days gets an allowance of 70% of the average daily salary credit if with a dependent or 40% if without, up to 120 days per year.
Benefits are not payable to beneficiaries residing in foreign countries that do not extend reciprocal benefits to Filipinos or are not recognized by the Philippines.
Employers must report names, ages, civil status, occupations, salaries, and dependents of employees covered by the Act within 30 days from employment.
The employer must pay damages equivalent to the benefits the employee or heirs would have received had the employee been reported timely.
All funds must be deposited, administered, and disbursed as provided by law for public special funds with limitations on administrative expenses as a percentage of collections.
Not more than 12% of total yearly collections and income from investments can be disbursed for these expenses, with this percentage to decrease annually but not below 7%.
The Act took effect upon its approval on September 1, 1966.