Question & AnswerQ&A (Republic Act No. 8282)
Republic Act No. 8282 shall be known as the 'Social Security Act of 1997'.
The policy is to establish, develop, promote, and perfect a sound and viable tax-exempt social security system suitable for the needs of the people throughout the Philippines to promote social justice and provide meaningful protection against disability, sickness, maternity, old age, death, and other income-loss contingencies.
The Commission is composed of the Secretary of Labor and Employment or duly designated undersecretary, the SSS President, and seven appointive members: three representing workers' groups (at least one woman), three representing employers' groups (at least one woman), and one representing the general public with knowledge about social security.
The appointive members serve a term of three years, receiving a per diem of at least Php 2,500 per meeting attended, not exceeding Php 10,000 a month, with additional allowances for hearing cases not exceeding Php 15,000 a month and transportation and representation allowances not exceeding Php 10,000 a month.
The Commission can adopt and amend rules, establish provident funds, approve restructuring proposals, authorize cooperatives as collecting agents, compromise liabilities in investments, review SSS actions, among others, subject to the President's approval in some cases.
The SSS President, appointed by the President of the Philippines, is the chief executive officer responsible for carrying out the program and policies of the SSS.
Any dispute related to coverage, benefits, contributions, penalties, or any matter involving the SSS is cognizable by the Commission.
Disputes must be resolved within 20 days after submission of evidence, and decisions become final and executory 15 days after notification unless appealed.
The Chairman of the Commission on Audit is the ex-officio auditor of the SSS or his representative.
Employer includes any person or entity using the services of another under their orders except the government; self-employed persons are both employer and employee. Employee is any person performing services under employer-employee relationship who receives compensation.
Compulsory coverage applies to all employees not over sixty (60) years of age and their employers.
Coverage is compulsory for self-employed persons determined by the Commission, including professionals, partners, actors, athletes, farmers, and fishermen under rules prescribed.
For employers, coverage begins on the first day of operation; for employees, on the day of employment; for self-employed persons, upon registration with the SSS.
Employer's contribution obligation ceases at the end of the month of separation; the employee is credited for all contributions and may continue paying total contributions to maintain benefit rights.
The monthly pension is the highest among these: sum of Php 300 plus 20% of average monthly salary credit plus 2% for each credited year above 10; or 40% of average monthly salary credit; or Php 1,000; with minimum pensions set for members with 10 and 20 years credited service.
Primary beneficiaries are entitled to a monthly pension; if none, secondary beneficiaries get a lump sum equivalent to 36 times the monthly pension.
Benefits are not transferable and must be paid directly to entitled persons or their representatives; power of attorney or agent collection is recognized only if physically unable to collect.
No, the SSS, its contributions, and benefits are exempt from taxes, assessments, fees, and legal processes such as attachments or garnishments, except to pay debts to the SSS.
Penalties range from fines of Php 500 to Php 20,000, imprisonment from six months to twelve years, or both, including penalties for false claims, misappropriation, and failure to remit contributions properly.
Contributions must be remitted within ten days after the month they cover, supported by quarterly reports; penalties of 3% per month apply for delays; failure to remit does not affect employee benefits; SSS can collect unpaid contributions through legal action.