Social Security Act of 1997

The SSS is a corporate body with its main office in Metro Manila.
It is directed by a Social Security Commission composed of the Secretary of Labor and Employment (or undersecretary), the SSS president, and seven appointed members representing workers, employers, and the general public.
Terms of appointive members last three years with staggered initial terms; all vacancies filled for unexpired terms.
Compensation for members includes per diems and allowances for meetings and case hearings.
The SSS President serves as the chief executive officer, appointed by the President of the Philippines, responsible for executing the SSS program and policies.
The Commission appoints personnel including an actuary; personnel appointments are guided by civil service rules except for exempted ranks.
The SSS is exempt from certain civil service laws.

Adopts, amends, or rescinds rules and regulations subject to Presidential approval.
Establishes provident funds for members and employees.
Approves restructuring of unpaid contributions and authorizes cooperatives or associations as collecting agents.
Compromises or releases interest, penalties on investments under prescribed conditions.
Reviews actions of the SSS in exercise of its powers.

Submits annual reports to the President and Congress.
Requires actuarial valuation and recommends feasible benefit increases every four years.
Establishes regional offices and inspects them periodically.
Enters into contracts necessary for efficient operation.
Manages budget, accounting, and statistical data collection.
Acquires and disposes of property necessary for SSS purposes.
Engages in housing projects, hospital maintenance, and educational initiatives for members.
Has legal personality to sue and be sued.

Disputes involving coverage, benefits, contributions are resolved by the Commission within 20 days after evidence submission.
Decisions of the Commission become final and executory after 15 days unless appealed.
Judicial review is permitted only after exhaustion of administrative remedies.
Appeals follow procedures similar to those from Regional Trial Courts; Supreme Court reviews questions of law.
Appeals do not stay Commission decisions unless ordered.
The Commission may issue writs of execution to enforce decisions and may punish contempt.

The Commission on Audit chair serves ex officio as Auditor of the SSS, conducting audits similar to those of public accounts.
The Secretary of Justice acts as legal adviser and counsel for the SSS.

Authorized officials may administer oaths, take depositions, certify official acts, and issue subpoenas and subpoenas duces tecum for enforcement.

Defines terms such as employer, employee, dependents, compensation, contributions, employment, beneficiaries, contingencies, member, self-employed, credited years of service, and others relevant for coverage and benefits under the Act.

Compulsory for all employees under 60 years of age and their employers (income minimums apply to domestic helpers).
Private benefit plans existing at time of compulsory coverage are integrated with SSS benefits.
Voluntary coverage available for spouses managing households and Filipinos recruited abroad.

Compulsory coverage includes specified categories such as professionals, partners, artists, athletes, farmers, fishermen.
Provisions applicable to employees also apply to self-employed members unless otherwise specified.

Employer contributions cease at month-end of separation; employee credited with paid contributions.
Self-employed paying no income for a month need not pay contributions for that month but may continue voluntarily.

Monthly pension computed based on various formulas with minimums guaranteed.
Dependents’ pension provided for eligible children.
Retirement benefits payable upon prescribed conditions; options to lump sum initial payments.
Death benefits granted to primary or secondary beneficiaries with prescribed conditions.
Permanent disability benefits include monthly pensions or lump sum depending on contributions and disability type; partial disabilities compensated according to schedule.
Funeral benefit grant of PHP12,000.
Sickness benefit compensated daily during confinement with conditions on notification, limits, and reimbursement.
Maternity benefits for female members include daily payments for up to 60 or 78 days with employer advance and reimbursement clauses.

Benefits are paid only to entitled recipients; nontransferable except in cases of physical inability.
Foreign nationals in countries not recognizing Philippine coverage may be ineligible.
Legal heirs receive death benefits if no other beneficiary qualifies.

SSS assets, contributions, and benefits are exempt from all taxes, fees, liens, and legal claims except debt to SSS.
Tax assessments against SSS are void unless explicitly revoking this policy.

Charging fees for claims preparation is prohibited.
Philippine Bar members appearing as counsel may receive up to 10% attorney’s fees after benefits payment.
Violations punishable by fines and imprisonment.

Employee contributions are deducted monthly based on salary brackets; employers pay corresponding amounts.
Self-employed pay both employee and employer contributions based on declared earnings.
Government appropriates funds to cover expenses and maintain working balance.

Contributions remitted monthly or as prescribed; penalties imposed for late payments.
Collection enforced similarly to taxes with court actions and sheriff warrants.
Employer reports employee data timely; penalties for misrepresentations and failure to remit.
Records kept confidential and used as prima facie evidence.

Annual budget limits administrative expenses to a percentage of contributions plus other revenues.
Reserve funds invested prudently in specified government and private instruments with set percentage ceilings.
SSS may appoint fund managers and establish Mortgagors’ Insurance Account.

Annual reports submitted to the President and Congress including financial status, coverage, and benefits.

Fraudulent claims, improper use of contribution devices, and failure to remit contributions are penalized by fines and imprisonment.
SSS employees misappropriating funds are penalized under Revised Penal Code.
Employers failing to remit deducted contributions presumed to have misappropriated funds.
Actions may be filed in appropriate jurisdictions.

SSS members and employers remain eligible for other government assistance.
Delinquent employers may avail of a six-month grace period for payment without penalties subject to terms.