Salient Feature of SSS Law (For Recitation tomorrow with Atty Acosta) This might help you guys!

Social Security Act of 1997(RA 8282)

Who are covered: 1. EMPLOYER – any person, natural or judicial, domestic or foreign who carries on in the Philippines any trade, business, industry undertaking or activity of any kind and uses the services of another person who is under his orders as regards employment 8(c)*EXEMPT EMPLOYER: government and any of its political subdivisions, branches and instrumentality, including GOCCs, i.e., those under GSIS2. EMPLOYEE – any person who performs services for an employer who receives compensation for suchservices, where there is an employer-employee relationship3. SELF-EMPLOYED – considered both employer and employee

DEPENDENTS1. Legal spouse entitled for support;2. Child, whether legitimate, legitimated, legally adopted or illegitimate;3. Parents dependent for support

CONDITIONS FOR CHILD TO BE CONSIDERED DEPENDENT1. Unmarried;2. Not gainfully employed;3. Has not reached 21 years of age; OR 3. Not over age of majority; OR4. Incapable of supporting himself either physically or mentally prior to 21 years of age orage of majority, as the case may be

BENEFICIARIES1. PRIMARYa. Dependent Spouse until remarriage ANDb. Dependent Legitimate or Legitimated or Legally Adopted and Illegitimate ChildreN

2. SECONDARYa. Dependent Parentsb. Absent primary and secondary beneficiaries, any other person designated by member as secondary beneficiary

3. OTHERSAs to DEATH BENEFITS, if no beneficiary qualifies under the Act, benefits shall be paid to Legal Heirs in accordance with Law of Succession

BENEFITS 1. Monthly Pension2. Dependents Pension3. Retirement4. Death5. Permanent Disability6. Funeral7. Sickness8. Maternity (ONLY 1ST FOUR DELIVERIES OR MISCARRIAGES)9. Loan Grant

COVERAGE1. COMPULSORYa. All employees not over sixty (60) years of age and their employers; compulsory coverage of the employer shall take effect on the first day of his operation and that of the employee on the day of his employmentb. Self-employed persons as may be determined by the Commission under such rules and regulations as it may prescribe, including, but limited to: all self-employed professionals; partners and single-proprietors of business; actors and actresses, directors, scriptwriters and news correspondents not employees; professional athletes, coaches, trainers and jockeys, and individual farmers and fishermen; upon their registration with the SSSc. Domestic helpers sixty years of age and below with a monthly income of not less than P1,000 on the date of their employmentd. Individual farmers and fishermen under SSS rules and regulations

B. VOLUNTARYa. Filipinos recruited by foreign-based employers for employment abroadb. Employee separated from employment to maintain his right to full benefitsc. Self-employed who realizes no income for a certain monthd. Spouses who devote full time to managing household and family affairs unless specifically mandatorily covered

*By Arrangement: Any foreign government, international organization or wholly owned instrumentality employing workers in the Philippines or employing Filipinos outside the Philippines may enter agreement with Philippines for inclusion of such employees in SSS EXCEPT those already covered by their respective civil service retirement System

EXCEPTIONS FROM COVERAGE1. Employment purely casual and not for purpose occupation, or business employer2. Service performed on or in connection with alien vessel, if employed when such vessel is outside of Philippines3. Employees of Philippine government or instrumentality or agency thereof4. Service performed in the employ of a foreign government, or international organizations, or wholly owned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines5. Services performed by temporary employees and other employees excluded by SSS regulation;employees of bona fide independent contractors shall not be deemed employees of the employer engaging the services of an independent contractor

COMPENSATIONAll actual renumeration for employment, including the mandated cost-of-living allowance, as well as the cash value of any renumeration paid in any medium other than cash except that part of the renumeration in excess of the maximum salary credit

BASIS OF CLAIMNon-work connected disability, sickness, maternity, death and old age and other contingencies resulting in loss of income or financial burden (sec. 2)

EFFECTS OF SEPARATION FROM EMPLOYMENT1. Employer’s contribution on his account ceases2. Employee’s obligation to contribute also ceases at the end of the month ofseparation3. Employee shall be credited with all contributions paid on his behalf and entitled to benefits according to the provisions of this Act

REPORTING REQUIREMENTSA. Employer:Report immediately to SSS the names, ages, civil status, occupations, salaries and dependents of all his covered employeesB. Self-employed: Report to SSS within 30 days from the first day of his operation, his name, age, civil status, occupation, average monthly net income and his dependents

FUNDING1. Employer’s contributions2. Employee’s/member’s contributions

EXEMPTION FROM TAX/LEGAL PROCESS/LIENProperty, assets, and revenues of SSS and GSIS are all exempt from taxes, and all benefits paid by SSS or GSIS shall likewise be exempt from taxes, assessments, fees, charges, and duties of all kindDISPUTE SETTLEMENTDispute arising from:1. Coverage2. Benefits3. Contributions4. Penalties5. Any matters related thereto

Jurisdiction: Social Security CommissionWhen decision made: Mandatory period of 20 days from submission of evidence

Appeal:CA – questions of law and factsSC – questions of law only

PRESCRIPTIVE PERIOD10 years from accrual of right of action