Question & AnswerQ&A (Republic Act No. 1161)
The short title of Republic Act No. 1161 is "The Social Security Act of 1954."
The policy is to develop, establish gradually, and perfect a social security system that shall provide protection against the hazards of unemployment, disability, sickness, old age, and death.
The Commission is composed of the Secretary of Labor, Secretary of Health, the Social Welfare Administrator, the General Manager of the Government Service Insurance System, and three other members appointed by the President with the consent of the Commission on Appointments.
They include selecting experimental areas, adopting rules and regulations with Presidential approval, submitting annual reports, ensuring actuarial studies for financial stability, establishing branches, entering into contracts for services, requiring reports and inspections, acquiring property, suing and being sued, and performing acts for proper enforcement of the Act.
Coverage is compulsory for all employees aged 18 to 60 who have been in employment for at least six months with an employer who is a member of the System, subject to conditions such as the employer having operated for at least three years and employing at least 200 employees, with certain exemptions.
Upon retirement, employees are entitled to a life annuity payable monthly as long as they live but no less than two years, with the amount based on eighty percent of premiums credited with interest, and a minimum monthly annuity of twenty-five pesos if conditions are met.
If a covered employee dies or becomes totally and permanently disabled before retirement, benefits vary based on the number of contributions paid, ranging from accumulated premiums if less than 13 contributions to 100% of the average monthly compensation multiplied by 12 if more than 48 contributions were paid.
A covered employee confined due to sickness or injury after at least one year of coverage shall be paid by his employer or the System an allowance equivalent to 20% of his daily rate plus 5% per dependent, not exceeding six pesos or 60% of the daily rate, for up to 90 days per calendar year, with conditions on when payment begins and deductions.
A covered employee who has been covered for at least one year and becomes unemployed for reasons other than misconduct or voluntary resignation may be paid an allowance equal to 20% of his daily rate plus 5% per dependent, not exceeding six pesos or 50% of the daily rate, for up to 90 days, subject to registration with a public employment office and other conditions.
Penalties include fines ranging from five hundred to five thousand pesos, or imprisonment from six months to five years, or both, for making false statements, fraud, buying or using unauthorized collection devices, and failure to comply with contribution payment or reporting requirements.