Law Summary

SECTION 1: Amendment to the Social Security Act of 2018

• Legal Principle: This section amends Section 4(a)(9) of Republic Act No. 11199 (Social Security Act of 2018) to grant the President the authority to defer the scheduled increases in contributions to the Social Security System (SSS) during a state of calamity.
• Key Definitions:
  • State of Calamity: Refers to the period declared under Proclamation No. 929, S. 2020, as amended by Proclamation No. 1021, S. 2020.
• Requirements/Procedures:
  • The President can suspend the 1% increase in 2021 contribution rates and monthly salary credits upon the recommendation of the Social Security Commission and after consulting stakeholders.
  • Contributions for domestic workers with incomes below the minimum salary credit will be based on actual income.
• Timeframes:
  • The deferral is applicable for the duration of the state of calamity.
  • The scheduled rates and credits will continue to be valid except for the deferred increase.
• Penalties/Liabilities:
  • The SSS will determine the rate of penalties on unpaid loan amortizations based on actuarial studies, inflation, and socioeconomic data.

SECTION 2: Separability Clause

• Legal Principle: This clause ensures that if any provision of this Act is found to be invalid or unconstitutional, the remaining provisions will continue to be in force.
• Important Details:
  • Provides legal robustness by allowing parts of the law to remain effective even if some aspects are struck down.

SECTION 3: Repealing Clause

• Legal Principle: This clause repeals any existing laws or regulations that conflict with the provisions of this Act.
• Important Details:
  • Ensures that all inconsistent laws, presidential decrees, executive orders, and regulations are amended or revoked to maintain legal clarity.

SECTION 4: Effectivity

• Legal Principle: This section outlines when the law will take effect.
• Timeframes:
  • The Act will become effective fifteen (15) days after its publication in at least two newspapers of general circulation.

Approval and Legislative History

• Important Details:
  • Approved on May 26, 2021.
  • Passed by both Houses of Congress on March 25, 2021 (House) and March 24, 2021 (Senate).
• Key Signatories:
  • President of the Senate: Vicente C. Sotto III
  • Speaker of the House: Lord Allan Jay Q. Velasco
  • President of the Philippines: Rodrigo Roa Duterte

Key Takeaways

• Republic Act No. 11548 grants the President the power to defer increases in SSS contributions during a declared state of calamity.
• The law amends previous provisions of the Social Security Act of 2018, maintaining the scheduled contribution rates except for the deferred increase.
• It includes provisions for the separability of clauses, repealing conflicting laws, and stipulates a clear effectivity timeline.
• The Act aims to provide relief during economic hardships amidst calamities while ensuring continued support for social security benefits.