1954 Social Security System Act

Commission composed of Secretary of Labor, Secretary of Health, Social Welfare Administrator, General Manager of Government Service Insurance System, and three presidential appointees.
Chairman designated by the President.
Terms for appointed members are three years with staggered initial terms.
Compensation for private members limited to attendance fees; public officers receive no additional pay.
Administrator appointed by the President serves as chief executive officer.
Commission appoints necessary personnel including actuary and medical director.

Select experimental areas for implementing social security coverage.
Extend experiments to other industries as warranted.
Promulgate rules and regulations subject to presidential approval.
Submit annual reports to the President and Congress.
Conduct actuarial studies and make necessary adjustments to benefits and fund allocation.
Establish and inspect branches and enter into service contracts.
Acquire property and sue or be sued.

Claims governed by Commission rules; payment to lawful claimants or estate.
Decisions become final if no appeal within 15 days.
Exhaustion of administrative remedies required before judicial review.
Court of Appeals reviews decisions on law and facts; Supreme Court handles pure questions of law.
No appeal bond required; appeals heard summarily and prioritized.
Appeals do not automatically stay Commission orders unless ordered.

Commission officials may administer oaths, take depositions, and issue subpoenas.
Contumacy handled as per Administrative Code.

System: Social Security System created.
Commission: Social Security Commission.
Employer: Any person or entity using employee services in the Philippines, excluding government and some specified entities.
Employee: Person receiving compensation for services.
Dependent: Child (under 18 or disabled), spouse, or parents wholly dependent.
Compensation excludes excess pay beyond 500 pesos/month and certain extra payments.
Employment excludes certain categories like agricultural labor, domestic help, government employees, students, etc.

Compulsory for employees aged 18-60 after 6 months service, with conditions on employer qualification.
Employers operational for 3+ years with 200+ employees are required members unless exempted.
Employers with equivalent plans may be exempted but must admit other employees and those opting out.
Voluntary coverage available for other employers and individuals paying double contributions where applicable.

Compulsory coverage starts first day of month after employer membership, employee must have 6 months service.
Voluntary coverage effective first day of month following approval.

Benefits for total and permanent disability or death if not covered by Workmen's Compensation.
Benefit amounts scaled by number of contributions paid.
Grace period of one month allowed for contribution payment before death/disability.
Difference paid if Workmen’s Compensation is less than System benefit.
Partial disability benefits proportional to degree determined by Commission.

Allowance for each day of confinement after one year coverage, capped at 60% of daily rate or 6 pesos.
Applies after first 7 days (or immediately for injury/acute disease) following exhaustion of paid leave.
Contributions deducted from allowances.
Employer reimbursed 70% of paid allowances.
Allowances deducted from death or disability benefits if occurring within 5 years.

Pays allowance for up to 90 days in a calendar year.
Eligibility requires at least one year coverage, 26 weeks worked in prior year, recent contributions, and no misconduct.
Allowance capped at 50% of daily rate or 6 pesos.
Payment begins after 3 weeks unemployment (can be reduced with dependents).
Payment suspends if employee unreasonably refuses suitable work.
Requires registration at public employment office.
Definition of suitable work excludes work under adverse conditions or labor disputes.

Benefits are non-transferable.
Collection via power of attorney only allowed when beneficiaries are incapacitated.

Contributions, benefits, and documents exempt from taxes and legal claims except debts to System.

Fee limit of five percent of benefits.
Fees payable only upon receipt.
Excess fees or unauthorized deductions are prohibited and punishable by fines and imprisonment.

Employee and employer each contribute 3% of monthly compensation.
Employers cannot recover employer contributions from employees.
Contributions collectible monthly; penalties for late payment.
Collection may be quarterly or semi-annually if approved.
System may collect unpaid contributions like taxes, including levy on employer property.
Employers must report employee data and maintain accurate records.
Employers liable for damages if failure to report causes loss of benefits.

All funds to be deposited and administered like other public special funds.
Maximum of 12% yearly expenses for administration in first two years, then 10% thereafter.
Twenty percent of surplus funds set aside as Reserve Fund for contingencies.
Remaining funds invested in government securities, deposits in qualified banks, or government construction loans.

Annual report to President and Congress including financial status, statistical data on coverage and benefits.
Publication of synopsis of the annual report in newspapers.

False statements, fraudulent claims, and misuse of contribution devices punishable by fines and imprisonment.
Penalties for failure to comply with contribution, reporting and inspection requirements.
Liability extends to corporate officers for offenses by corporations.

This Social Security System does not disqualify employees or employers from other government aid.

Invalid provisions do not affect the rest of the law.
Congress reserves right to amend or repeal the Act; no vested property rights arise from it.