Question & AnswerQ&A (Republic Act No. 8282)
Republic Act No. 8282 is 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 to the needs of Filipino people which promotes social justice and provides meaningful protection against hazards such as disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden.
The Social Security System (SSS), a corporate body with principal place of business in Metro Manila, is created to carry out the purposes of this Act.
The Commission is composed of the Secretary of Labor and Employment or his 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 knowledgeable in social security.
The Commission can adopt/amend rules, establish provident funds, approve restructuring for unpaid contributions, authorize cooperatives as collecting agents, compromise liabilities, review actions of SSS, among others, subject to the approval of the President of the Philippines.
The SSS President is appointed by the President of the Philippines and must have previous technical and administrative experience related to the purposes of the Act.
All employees not over 60 years old and their employers are compulsorily covered. Domestic helpers earning at least P1,000 monthly are included. The government and certain public employees are excluded unless otherwise specified. Self-employed persons may be compulsorily or voluntarily covered depending on rules.
Employers are liable to pay the contributions plus a 3% per month penalty from the due date until paid. They may be criminally liable with fines ranging from P5,000 to P20,000 and imprisonment for six years and one day to twelve years, especially if contributions were misappropriated.
Benefits include monthly pensions for retirement, permanent disability, death, dependents' pension, funeral grants, sickness benefits, maternity leave benefits, and other contingencies as stipulated in the Act.
Disputes are cognizable by the Social Security Commission and must be decided within 20 days after the submission of evidence. Appeals from the Commission's decisions may be taken to the Court of Appeals or Supreme Court, depending on issues of law or fact.
Dependents include the legal spouse entitled to support, legitimate, legitimated, legally adopted, and certain illegitimate children who are unmarried and dependent, and parents who receive regular support from the member.
The maximum monthly salary credit was P9,000 effective January 1996, set to increase by P1,000 yearly until P12,000 in 1999. This may be adjusted by the Commission based on actuarial studies.
No. Agents or any person who demands fees for claims preparation or filing are prohibited. Violations are penalized by fines or imprisonment. Only members of the Philippine Bar representing a party before the Commission can receive attorney's fees not exceeding 10% of awarded benefits.
No. Benefits, assets, contributions and income of the SSS are exempt from taxes and cannot be attached, garnished, or levied upon except to pay debts owed to the SSS.
Spouses managing households full-time may be covered voluntarily if not otherwise employed or engaged in a vocation covered by compulsory coverage. Filipinos recruited by foreign-based employers for employment abroad may also be covered voluntarily.