Amendments to Social Security Law

Conduct actuarial studies regarding benefit increases and financial stability.
Implement feasible benefit increases and introduce new benefits with Presidential approval.
Increases in benefits must not require additional employee contributions.

SSS: Social Security System under the Act.
Employer: Any person or entity using another’s services within the Philippines, excluding government except in specific cases.
Employee: Person performing compensated services under employer control; self-employed professionals are both employee and employer.
Replacement ratio: Formula combining fixed percentage with salary credit to calculate pension benefits.
Credited years of service: Years with six or more contributions paid, with specific rules based on coverage start date.

Self-employed persons earning P1,800 or more annually are compulsorily covered.
Coverage specifics, including effective dates, are regulated by the SSS Commission.
Specific groups covered include licensed professionals, business partners/proprietors, certain entertainment industry workers, and professional athletes.
Self-employed persons under coverage are subject to the same provisions applicable to employees.

Employers’ compulsory coverage begins on first day of operation.
Employees’ coverage begins on employment date.
Self-employed professionals and business operators’ coverage starts January 1 following their first business year, not before January 1, 1980.

No contributions required for years with no net income.
Option to continue contributions under conditions applicable to separated employees.

Formula: average monthly salary credit multiplied by replacement ratio plus 1.5% of salary credit for each credited year over ten years.
Minimum pension set at P120 monthly and aggregate minimum of 60 times the monthly pension, except for secondary beneficiaries.
Surviving pensioners receive a 20% increase in pension.

Eligibility: At least 120 contributions before retirement semester, age 60 (with low compensation) or 65.
Pension payable for life; dependents’ pension provided to qualifying beneficiaries.
Lump sum benefit available for some members not qualifying for monthly pension.
Pension reduced when retiree re-employed under age 65.
Death benefits to primary, dependents, or secondary beneficiaries under specified conditions.

Primary beneficiaries receive monthly pension if member paid at least 36 contributions before death semester.
If conditions unmet, lump sum equal to 35 times monthly pension given.
Secondary beneficiaries entitled to lump sum if no primary beneficiaries.
Minimum death benefit equals total contributions or P1,000.
Minimum benefit provided even if member paid less than three contributions.

Permanent total disability pension requires 36 monthly contributions before disability.
Lump sum given if disability occurs before 36 contributions.
Minimum disability benefit equals total contributions or P1,000.
Certain disabilities presumed permanent total (e.g., loss of limbs, blindness, brain injury).
Permanent partial disability benefits based on degree and schedule.
Reemployment rules for disabled members, including pension reduction.
Death benefits for disabled pensioners similar to retirement benefits.

Eligibility: At least 3 contributions in 12 months before sickness semester.
Payment: 85% of average daily salary credit for each hospitalized day beyond 3 days.
Maximum of 120 days per year; no carry-forward of unused days.
Notification requirements for employer or SSS, with exceptions.

Eligibility: At least 3 contributions in 12 months preceding childbirth.
Benefit: 100% daily salary credit for 45 days.
Conditions: Notification to employer and SSS; payment in two installments by employer; limited to first four deliveries after March 13, 1973.
Maternity benefit bars sickness benefits for same period.
Employer liable for damages if contributions or notifications not made.

Contributions deducted monthly starting from employee's coverage date.
Contribution rates depend on salary brackets with specified amounts for employer and employee.
Receipt or pay envelope must reflect deductions.

Employers remit contributions quarterly with detailed employee listing.
Failure or refusal to remit leads to SSS collection similar to tax collection procedures.
Employee benefits protected despite employer delinquency.
Action against employer must be initiated within 20 years of delinquency or benefit accrual.

Self-employed pay both employer and employee contributions based on declared average monthly net earnings.
Average monthly net earnings derived from prior year’s income tax returns, excluding non-business income.
Declarations updated annually possible.
Contributions remitted quarterly per SSS schedule.
Late payment penalties and collection procedures apply as with other contributions.

Self-employed must report personal details, income, and dependents within 30 days of coverage start.
Failure to report before death, sickness, disability, or age 60 results in no benefit payment.

Excess revenues constitute reserve fund, used exclusively for benefits.
Reserve fund portions invested to earn at least 9% annually; 5% in bank deposits (Contingency Reserve Fund).
Remaining balance invested as per Commission guidelines (Investment Reserve Fund).

Failure to comply with Act or rules results in fines (P500 to P5,000), imprisonment (6 months to 1 year), or both.
Failure to register employees or deduct/remit contributions incurs both fine and imprisonment.