AGRARIAN

HISTORY OF SSS investments, stiffer penalties for violators of the law, condonation of penalties
of delinquent employers and the establishment of a voluntary provident fund
INTRODUCTION for members.

The concept of social security evolved from an age-old search of man for The EC program, started in 1975, provides double compensation effective June
protection against poverty, which breeds grave social ills that not only 1984 to the worker when the illness, death, or accident occurs during work-
threaten his survival but also erode his sense of human dignity. It, therefore, related activities. EC benefits are granted only to members with employers
becomes the duty of the State to operate a mechanism that would provide other than themselves.
such protection to its people.
SSS used to administer the Medicare program for hospitalization and other
The system establishes a program which relieves financial want by restoring medical needs of the private sector workers; and the Government Service
income lost through inability to work due to death, old age sickness, Insurance System (GSIS), for the public sector workers. However, with the
pregnancy or disability. passage of Republic Act 7875 or the National Health Insurance Act of 1995, the
SSS and GSIS transferred the administration of the Medicare program to the
So workers are protected from anxieties arising out of contingencies. Philippine Health Insurance Corporation (PhilHealth) for an integrated and
comprehensive approach to health development effective July 1999.
But another phenomenon has aroused a deep anxiety for working class
globalization (i.e., cost-cutting, productivity, enhancement, downsizing of SSS retirement, death, and total disability pensioners prior to the effectivity of
personnel, termination of jobs. RA 7875 on March 4, 1995 are entitled to hospitalization benefits under Phil-
Health. Pensioners upon the effectivity of RA 7875 on March 4, 1995 and
WHY SOCIAL LEGISLATION? thereafter are no longer covered except when they meet the qualification
requirements set by Phil-Health.
A form of social security: to insure the well-being and economic security of the
people. SOCIAL SECURITY SYSTEM (RA 8282)
A form of social insurance: membership is mandatory as a rule requiring the
shared payment of contributions and contributions will pay for benefits and POLICY
operating costs.
It is the policy of the State to establish, develop, promote and perfect a
LEGISLATIVE HISTORY sound and viable tax-exempt social security system suitable to the needs of
the people throughout the Philippines which shall promote social justice and
On Jan. 26, 1948, Pres. Manuel A. Roxas proposed a bill seeking to establish a provide meaningful protection to members and their families against the
social security system for wage earners and low-salaried employees. This was hazards of disability, sickness, maternity, old-age, death and other
recommended to Congress in his State of the Nation Address. contingencies resulting in loss of income or financial burden. (Sec. 2, RA
8282)
After the death of President Roxas, Pres. Elpidio Quirino created the Social
Security Study Commission on July 7, 1948. The creation of the Commission EFFECTIVITY
was his first official act upon his assumption to office. Based on the report of
the Study Commission, a draft of the Social Security Act was submitted to May 24, 1997
Congress.
VISION
In 1954, Rep. Floro Crisologo, Senators Cipriano Primicias and Manuel Briones
introduced bills based on the report of the Social Security Study Commission Viable protection through generations.
in the House of Representatives and in the Senate. These bills were
consolidated and enacted into Republic Act (RA) 1161, better known as the Universal protection provided to all residents of the Philippines, citizens and
Social Security Act of 1954. non-citizens alike, regardless of creed, gender, age, geographic location and
economic status, especially the disadvantaged.
However, business and labor groups objected to the Social Security Act
resulting in a deferment of its implementation. Equitable - fair and uniform coverage to all; benefits shall be meaningful and
able to sustain a decent standard of living.
In 1957, amendatory bills were presented in Congress. These bills were the
bases of RA 1792, which amended the original Social Security Act (i.e., pilot World-class service - prompt, accurate and courteous service shall be
plan deleted, concept of integration was introduced [existing private benefit provided.
plan}
JURISDICTION
On Sep. 1, 1957, the Social Security Act of 1954 or the Social Security Law (SS
Law) was finally implemented, marking a significant milestone in the social SEC. 5. Settlement of Disputes (a) Any dispute arising under this Act with
security program. respect to coverage, benefits, contributions and penalties thereon or any
other matter related thereto, shall be cognizable by the commission, and any
Thus, with the implementation of the SS law, the government also adopted case filed with respect thereto shall be heard by the Commission, or any of its
the social insurance approach to social security, covering the employed members, or by hearing officers duly authorized by the Commission and
segment of the labor force in the private sector. In 1993, household helpers decided within twenty (20) days after the submission of the evidence. The
earning at least P1,000 were included in the compulsory coverage of filing, determination and settlement of disputes shall be governed by the rules
employees. and regulations promulgated by the Commission. (RA 8282)

In 1980, some groups of self-employed persons were also required to CASE: SSS vs. Atlantic Gulf
contribute to the social security fund from which benefits are paid upon the
occurrence of a contingency provided by law. Self-employed farmers and Atlantic Gulf, et al. filed a complaint for specific performance and damages
fisherfolks were included in the program in 1992, while workers in the informal against SSS before the RTC of Batangas City.
sector earning at least P1,000 a month such as ambulant vendors and watch-
your-car boys, were covered in 1995. From the averments in the complaint, private respondents are seeking to
implement the Deed of Assignment which they had drafted and submitted to
The Social Security System (SSS) administers social security protection to SSS sometimes in July 2001, pursuant to SSSs letter addressed to AG&P dated
workers in the private sector. On the other hand, the Government Service 23 April 2001 approving AG&P and SEMIRARAs delinquencies through dacion
Insurance System (GSIS) takes care of workers in the public sector. en pago, which as of 31 March 2001, amounted to P29,261,902.45.

The SSS administers two programs namely: RTC dismissed the action for lack of jurisdiction upon motion of SSS citing Sec.
5 of RA 8282;
1. The Social Security Program; and
2. The Employees Compensation Program (EC). CA reversed the RTC and held that the subject of the complaint is no longer
that payment of the premium and loan amortization delinquencies, as well as
Social Security provides replacement income for workers in times of death, the penalties appurtenant thereto, but the enforcement of the dacion en pago
disability, sickness, maternity and old age. pursuant to SSS Resolution No. 270. The application then is one for specific
performance which case law holds is an action incapable of pecuniary
On May 1, 1997, Pres. Fidel V. Ramos signed RA 8282, further strengthening estimation falling under the jurisdiction of the Regional Trial Court.
the SSS. Also known as the Social Security Act of 1997, it amended RA 1161,
providing for better benefit packages, expansion of coverage, flexibility of
 AGRARIAN
Which body has jurisdiction to entertain a controversy arising from the non- the employer's control of the employee's conduct, not only as to the result of
implementation of a dacion en pago agreed upon by the parties as a means the work to be done, but also as to the means and methods to accomplish.
of settlement of private respondents liabilities?
All elements are present in this case.
SC:
First. It is expressly provided in the Service Contracts that it is the respondent
From the allegations of respondents complaint, it readily appears that there cooperative which has the exclusive discretion in the selection and
is no longer any dispute with respect to respondents accountability to the SSS. engagement of the owners-members as well as its team leaders who will be
Respondents had, in fact, admitted their delinquency and offered to settle assigned at Stanfilco.
them by way of dacion en pago subsequently approved by the SSS in
Resolution No. 270-s. 2001 Second. The weekly stipends or the so-called shares in the service surplus
given by the respondent cooperative to its owners-members were in reality
The controversy lies in the non-implementation of the approved and agreed wages, as the same were equivalent to an amount not lower than that
dacion en pago on the part of the SSS. As such, respondents filed a suit to prescribed by existing labor laws, rules and regulations, including the wage
obtain its enforcement which is, doubtless, a suit for specific performance and order applicable to the area and industry; or the same shall not be lower than
one incapable of pecuniary estimation beyond the competence the prevailing rates of wages. It cannot be doubted then that those stipends
_____________. or shares in the service surplus are indeed wages, because these are given to
the owners-members as compensation in rendering services to respondent
CASE: Republic vs. Asiapro Cooperative cooperative's client, Stanfilco

Respondent Asiapro, as a cooperative, is composed of owners-members. Its Third. It is also stated in the above-mentioned Service Contracts that it is the
primary objectives are to provide savings and credit facilities and to develop respondent cooperative which has the power to investigate, discipline and
other livelihood services for its owners-members. remove the owners-members and its team leaders who were rendering
services at Stanfilco.
In the discharge of the aforesaid primary objectives, respondent cooperative
entered into several Service Contracts with Stanfilco a division of DOLE Fourth. It is the respondent cooperative which has the sole control over the
Philippines, Inc. and a company based in Bukidnon. The owners-members do manner and means of performing the services under the Service Contracts
not receive compensation or wages from the respondent cooperative. Instead, with Stanfilco as well as the means and methods of work. Also, the respondent
they receive a share in the service surplus which the respondent cooperative cooperative is solely and entirely responsible for its owners-members, team
earns from different areas of trade it engages in, such as the income derived leaders and other representatives at Stanfilco.
from the said Service Contracts with Stanfilco. The owners-members get their
income from the service surplus generated by the quality and amount of CASE: SSS vs. Bailon
services they rendered, which is determined by the Board of Directors of the
respondent cooperative. Clemente G. Bailon (Bailon) and Alice P. Diaz (Alice) contracted
marriage in Barcelona, Sorsogon.
In order to enjoy the benefits under the Social Security Law of 1997, the More than 15 years later, Bailon filed before the then Court of First
owners-members of the respondent cooperative, who were assigned to Instance (CFI) of Sorsogon a petition to declare Alice presumptively
Stanfilco requested the services of the latter to register them with petitioner dead.
SSS as self-employed and to remit their contributions as such. By Order, the CFI granted the petition.
Close to 13 years after his wife Alice was declared presumptively
SSS sent a letter to Asiapro that based on the Service Contracts it executed dead, Bailon contracted marriage with Teresita Jarque
with Stanfilco, respondent cooperative is actually a manpower contractor (respondent) in Casiguran, Sorsogon.
supplying employees to Stanfilco and for that reason, it is an employer of its Bailon, who was a member of the Social Security System (SSS) since
owners-members working with Stanfilco. Thus, respondent cooperative 1960 and a retiree pensioner thereof, died.
should register itself with petitioner SSS as an employer and make the Respondent thereupon filed a claim for funeral benefits, and was
corresponding report and remittance of premium contributions in accordance granted P12,000 by the SSS
with the Social Security Law
Cecilia Bailon-Yap (Cecilia), who claimed to be a daughter of Bailon and one
Who should determine e-e? Elisa Jayona (Elisa) contested before the SSS the release to respondent of the
death and funeral benefits. She claimed that Bailon contracted three
Since the existence of an employer-employee relationship between marriages in his lifetime, the first with Alice, the second with her mother Elisa,
the respondent cooperative and its owners-members was put in issue and and the third with respondent, all of whom are still alive; she, together with
considering that the compulsory coverage of the SSS Law is predicated on the her siblings, paid for Bailon's medical and funeral expenses; and all the
existence of such relationship, it behooves the petitioner SSC to determine if documents submitted by respondent to the SSS in support of her claims are
there is really an employer-employee relationship that exists between the spurious
respondent cooperative and its owners-members.
SSS cancelled the pension.
The question on the existence of an employer-employee relationship is not
within the exclusive jurisdiction of the National Labor Relations Commission Respondent protested asserting that her marriage with Bailon was not
(NLRC). Article 217 of the Labor Code enumerating the jurisdiction of the Labor declared before any court of justice as bigamous or unlawful, hence, it
Arbiters and the NLRC provides that: remained valid and subsisting for all legal intents and purposes as in fact Bailon
designated her as his beneficiary.
ART. 217. JURISDICTION OF LABOR ARBITERS AND THE COMMISSION. (a) .
... When raised to SSC, it held that Teresita Jarque-Bailon is not the legitimate
xxx xxx xxx spouse and primary beneficiary of SSS member Clemente Bailon.
6. Except claims for Employees Compensation, Social Security,
Medicare and maternity benefits, all other claims, arising from employer- Marriage governed by the NCC.
employee relations, including those of persons in domestic or household
service, involving an amount exceeding five thousand pesos (P5,000.00) Under the Civil Code, a subsequent marriage being voidable, it is terminated
regardless of whether accompanied with a claim for reinstatement. by final judgement of annulment in a case instituted by the absent spouse who
reappears or by either of the spouses in the subsequent marriage.
Although the aforesaid provision speaks merely of claims for Social Security, it
would necessarily include issues on the coverage thereof, because claims are If the absentee reappears, but no step is taken to terminate the subsequent
undeniably rooted in the coverage by the system. Hence, the question on the marriage, either by affidavit or by court action, such absentees mere
existence of an employer-employee relationship for the purpose of reappearance, even if made known to the spouses in the subsequent
determining the coverage of the Social Security System is explicitly excluded marriage, will not terminate such marriage. Since the second marriage has
from the jurisdiction of the NLRC and falls within the jurisdiction of the SSC been contracted because of a presumption that the former spouse is dead,
which is primarily charged with the duty of settling disputes arising under the such presumption continues inspite of the spouses physical reappearance,
Social Security Law of 1997. and by force of law, he or she must still be regarded as legally an absentee
until the subsequent marriage is terminated as provided by law.
In determining the existence of an employer-employee relationship, the
following elements are considered: (1) the selection and engagement of the SC:
workers; (2) the payment of wages by whatever means; (3) the power of That the SSC is empowered to settle any dispute with respect to
dismissal; and (4) the power to control the worker's conduct, with the latter SSS coverage, benefits and contributions, there is no doubt. In so
assuming primacy in the overall consideration. The most important element is exercising such power, however, it cannot review, much less
reverse, decisions rendered by courts of law as it did in the case at
 AGRARIAN
bar when it declared that the December 10, 1970 CFI Order was Sec. 20. Jurisdiction in Criminal Cases Regional Trial Courts shall
obtained through fraud and subsequently disregarded the same, exercise exclusive original jurisdiction in all criminal cases not
making its own findings with respect to the validity of Bailon and within the exclusive jurisdiction of any court, tribunal or body.
Alice's marriage on the one hand and the invalidity of Bailon and Except those now falling under the exclusive and concurrent
respondent's marriage on the other. jurisdiction of the Sandiganbayan which shall hereafter be
exclusively taken cognizance of by the law.
In interfering with and passing upon the CFI Order, the SSC virtually
acted as an appellate court. The law does not give the SSC Is the consent of SSS required before any criminal case may be filed?
unfettered discretion to trifle with orders of regular courts in the
exercise of its authority to determine the beneficiaries of the SSS. No, because Section 28 (i) states that a Criminal action
arising from a violation of the provision of this Act may be
In the case at bar, as no step was taken to nullify, in accordance with law, commenced by the SSS or the employee concerned either
Bailon's and respondent's marriage prior to the former's death in 1998, under this Act or in appropriate cases under the Revised Penal
respondent is rightfully the dependent spouse-beneficiary of Bailon. Code xxx.

CASE: Signey vs. SSS Who is an employer under SS Law?

SC: (c ) Employer Any person, natural or juridical, domestic or

foreign, who carries on in the Philippines any trade, business,
SC will not disturb findings of fact of the SSS which are supported by industry, undertaking, or activity of any kind and uses the services
substantial evidence and affirmed by the SSC and the Court of Appeals. of another person who is under his orders as regards the
employment, except the Government and any of its political
Moreover, petitioner ought to be reminded of the basic rule that this court is subdivisions, branches or instrumentalities, including corporations
not a trier of facts. owned or controlled by the Government. Provided, That a self-
employed person shall be both employee and employer at the
It is a well known rule that in proceedings before administrative bodies, same time. (RA 8282, Sec. 8)
technical rules of procedure and evidence are not binding. The important
consideration is that both parties were afforded an opportunity to be heard CASE: SSC v. Alba
and they availed themselves of it to present their respective positions on the
matter in dispute. Whether an administrator could be considered an employer? Yes.
Far Alba was no ordinary administrator. He was no less than the
It must likewise be noted that under section 2, Rule 1 of the SSC Revised Rules son of the hacienda's owner and as such he was an owner-in-
of Procedure, the rules of evidence prevailing in the courts of law shall not be waiting prior to his father's death.
controlling. In the case at bar, the existence of a prior subsisting marriage Essential elements of e-e relationship are present. Lamboso
between the deceased and Editha is supported by the substantial evidence. testified that he was selected and his services were engaged by Far
Petitioner, who has fully availed of her right to be heard, only relied on the Alba himself. Corollarily, Far Alba held the prerogative of
waiver of Editha and failed to present any evidence to invalidate or otherwise
terminating Lamboso's employment. Lamboso also testified in a
controvert the confirmed marriage certificate registered under LCR Registry
No. 2083 on 21 November 1967. She did not even try to allege and prove any direct manner that he had been paid his wages by Far Alba. This
infirmity in the marriage between the deceased and Editha. testimony was seconded by Lamboso's co-worker.
Not to be forgotten is the definition of an employer under Article
Court Review The decision of the Commission upon any disputed matter mat 167 (f) of the Labor Code which deals with employees'
be reviewed both upon the law and the facts by the Court of Appeals. For the compensation and state insurance fund. It defines a person as "any
purpose of such review, the procedure corcerning appeals from the Regional individual, partnership, firm, association, trust, corporation or legal
Trial Court shall be followed as far as practicable and consistent with the
representative thereof". Plainly, Far Alba, as the hacienda
purposes of this Act. Appeal from a decision of the Commission must be taken
within fifteen (15) days from notification of such decision. If the decision of administrator, acts as the legal representative of the employer and
the Commission involves only questions of law, the same shall be reviewed by is thus an employer within the meaning of the law liable to pay the
the Supreme Court. No appeal bond shall be required. The case shall be heard SS contributions.
in a summary manner, and shall take precedence over all cases, except that in Section 8 (c ) of the Social Security Act of 1954 is broad enough to
the supreme Court, criminal cases wherein life imprisonment or death has include those persons acting directly or indirectly in the interest
been imposed by the trial court shall take precedence. No appeal shall act as of the employer. If under Article 212 (e), persons acting in the
a supersedeas or a stay of the order of the Commission unless the Commission
interest of the employer, directly or indirectly, are obliged to follow
itself, or the Court of Appeals or the Supreme Court, shall so order. [RA 8282,
Sec. 5C] the government labor relations policy, it could be reasonably
concluded that such persons may likewise be held liable for the
How appeal is taken? remittance of SS contributions which is an obligation created by law
and an employees right is protected by law.
By verified petition for review (The Revised Rules of SSC
[1997]).
Who is an employee under SS Law?
Note: 1990 Rules of SCC state that it is by notice of
appeal.
(d) Employee Any person who performs services for an
Criminal offenses for violations of the SS law are within the jurisdiction of the employer in which either or both mental or physical efforts are used and who
regular courts. receives compensation for such services, where there is an employer-
employee relationship: Provided, That a self-employed person shall be both
Section 28: employee and employer at the same time. (RA 8282, Sec. 8)
(i) Criminal action arising from a violation of the provisions of this
Act may be commenced by the SSS or the employee concerned either under Employment services excluded
this Act or in appropriate cases under the Revised Penal Code: Provided, That
such criminal action may be filed by the SSS in the city or municipality where 1. Purely casual employment and not for the purpose of occupation
the SSS office is located, if the violation was committed within its territorial or business of the employer
jurisdiction or in the Metro Manila, at the option of the SSS. 2. Services performed or in connection with an alien vessel by an
employee if he/she is employed when such vessel is outside the
Who has jurisdiction on criminal violations? Philippines
3. Services performed in the employ of the Philippine government
According to SSS, it has the option to file a criminal case either 4. Service performed in the employ of a foreign government or
before the SSC or regular court citing Section 28 (i) but there is a international organization, or their wholly-owned instrumentality
directive that criminal cases be filed before the regular courts; unless there is an agreement with the Philippine Government for
Section 5 says about a dispute arising under this Act with respect the inclusion of such employees in the SSS
to coverage, benefits, contributions and penalties thereon or any 5. Such other temporary services performed by temporary employees
other matter related thereto under SSC. which may be excluded by regulation. Employees of bona fide
The Revised Rules of SSC (1997) does not define a dispute. independent contractors shall not be deemed employees of the
A criminal violation is not within SSC. employer engaging the service of said contractors.
BP Blg. 129 says:
 AGRARIAN
CASE: SSS v. CA
Compulsory Coverage
Whether or not an agricultural laborer who was hired on "pakyaw"
basis can be considered an employee entitled to compulsory Coverage of Employees
coverage and corresponding benefits under the Social Security a. A private employee who is not over 60 years old
b. A household-helper earning at least P1,000 a month is covered
Law.
starting Sept. 1, 1993.
SC: A household-helper is any person who renders domestic
There was no shred of evidence to show that Tana was only a or household services exclusively to a household
seasonal worker. All witnesses, including Ayalde, testified that Tana employer such driver, gardener, cook, governess, and
and his family resided in the plantation. The only logical other similar occupations.
explanation for this set up was that Tana was working for most part c. A Filipino seafarer upon the signing of the standard contract or
of the year exclusively for Ayalde. A closer scrutiny of the records employment between the seafarer and the manning
revealed that while Ayalde may not have directly imposed on Tana agency which, together with the foreign ship owner, act as
the manner and methods to follow in performing his tasks, she did employers.
exercise control through her overseer. Under the circumstances, d. An employee of a foreign government, international
the relationship between Ayalde and Tana has more of the organization or their wholly-owned instrumentality based in the
attributes of employer-employee than that of an independent Philippines, which entered into an administrative agreement with
contractor hired to perform a specific project. the SSS for the coverage of its Filipino workers.
CASE: Lazaro v. SSC Are laborers continuously assigned to construction projects as carpenters,
masons, etc. compulsorily covered under SS Law?
Private respondent Laudato filed a petition before SSC for
social security coverage and remittance of unpaid monthly CASE: Chua v. CA, et al., GR no. 125837, Oct. 6, 2004:
social security contributions against her there employers.
Among the respondents was herein petitioner, proprietor of
Royal Star Marketing (Royal Star). Petitioner alleged that
The mandatory coverage of RA 1161, as amended, is
Laudata was a mere sales agent whom he paid purely on
premised on the existence of an employer-employee
commission basis and was not subjected to definite hours and
relationship.
conditions of work. As such, Laudato could not be deemed an
Private respondents are employees of petitioner, the latter
employee of Royal Star. Applying the control test, the SSC
having control over the results of the work done, as well as
held that Laudato was an employee of Royal Star, and hence
the means and methods by which the same were
entitled to coverage under the Social Security Law. The SSC
accomplished.
decision was affirmed by CA. Hence, this petition.
Xxx regardless of the nature of their employment, whether
Is a sales supervisor of a company engaged in the sale of
it is regular or project, private respondents are subject of the
home appliances an employee of such company?
compulsory coverage under the SSS Law, their employment
SC found that Laudato was a sales supervisor and not a mere
not falling under the exceptions provided by the law. This rule
sales agent. As such, Laudato oversaw and supervised the
is in accord with the Courts ruling in Luzon Stevedoring Corp.
sales agents of the company, and thus was subject to the
v. SSS to the effect that all employees, regardless of tenure,
control of management as to how she implements its policies
would qualify for compulsory membership in the SSS except
and its end results. SC disinclined to reverse this finding, in
those classes of employees contemplated in Section 8(j) of
the absence of countervailing evidence from Lazaro and also
the Social Security Act.
in light of the fact that Laudato's calling cards from Royal Star
Despite the insistence of petitioner that they were project
indicate that she is indeed a sales supervisor.
employees, the facts show that as masons, carpenters and
The court also held that the fact that Laudato was paid by way
fine graders in petitioners various construction projects, they
of commission does not preclude the establishment of an
performed work which was usually necessary and desirable
employer-employee relationship. Neither does it follow that
to petitioners business which involves construction of roads
a person who does not observe normal hours of work cannot
and bridges.
be deemed an employee.
While it may be true that private respondents were initially
hired for specific projects or undertakings, the repeated re-
Final judgment on relationship/conclusive judgement
hiring and continuing need for their services over a long span
of time the shortest being two years and the longest being
A final and executor NLRC decision (to the effect that
eight have undeniably made them regular employees. This
respondent spouses were not the employees of petitioner)
Court has held that an employment ceases to be co-terminus
was binding on the criminal case for violation of RA 1161, as
with specific projects when the employee is continuously
amended.
rehired due to the demands of the employers business and
re-engaged for many more projects without interruption.
CASE: Co. v. People
Coverage of Employers
Petitioner was charged criminally by claimed employees for
a. An employer, or any person who uses the services of another
violation of SS Law for non-remittance of contributions.
person in business, trade, industry or any undertaking.
Prior to criminal case, a final decision of NLRC held that the claimed
employees were independent contractors and not employees.
A social, civil, professional, charitable and other non-profit
Petitioner filed a motion to quash.
organization which hire the services of employees are
SC:
considerable employers.
The mandatory coverage of RA 1161, as amended, is premised on
b. A foreign government, international organization or its
the existence of an employer-employee relationship.
wholly-owned instrumentality such as embassy in the
The final executor NLRC decision (to the effect that respondent
Philippines, may enter into an administrative agreement with
spouses were not the employees of petitioner) was binding on this
the SSS for the coverage of its Filipino employees.
criminal case for violation of RA 1161, as amended. Accordingly,
the RTC committed grave abuse of discretion when it refused to
Coverage of Self-Employed Persons
grant petitioners motion to quash the information.
A self-employed person, regardless of trade, business or
CASE: SSC v. Rizal Poultry and Livestock Association, Inc., et al.,
occupation, with an income of at least P1,000 a month and not over
(GR no. 167050, June 1, 2011)
60 years old, should register with the SSS. Included but not limited
to are the following self-employed persons: self-employed
Issue:
professionals; business partners, single proprietors and board
Whether res judicata applies so as to preclude the SSC from
directors; actors, actresses, directors, scriptwriters and news
resolving anew the existence of employer-employee relationship,
correspondents who do not fall with the term employee;
which issue was previously determined in the NLRC case?
professional athletes, coaches, trainers and jockeys; farmers and
fisherfolks; and workers in the informal sector such cigarette
SC:
vendors, watch-your-car-boys, hospitality girls, among others.
Res judicata in the concept of conclusiveness of judgment
applies. The judgment in the NLRC case pertaining to a finding of
Voluntary Coverage
an absence of employer-employee relationship between Angeles
and respondents is conclusive on the SSC case.
Coverage of Separated Members
 AGRARIAN
A member who is separated from employment or ceased to be self- Secure SS number
employed/OFW/non-working spouse and would like to continue Ensure they are reported for coverage by their employers
paying his/her contributions. Pay their monthly share.

Coverage of Overseas Filipino Workers (OFWs) Duties of employer-members

A Filipino recruited in the Philippines by a foreign-based employer
for employment abroad; having a source of income in the foreign Among others:
country; and permanent resident in a foreign country. Require presentation of SS number of prospective employee
Report all employees for SS coverage within 30 days from date of
Coverage of non-working Spouse of SSS Members employment
A person legally married to a currently employed and actively Deduct from the employees the monthly SS contributions based on
paying SSS member who devotes full time in the management of schedule of contributions; pat their share of contributions including
household and family affairs may be covered on a voluntary basis Employees Compensation and remit these contributions to SSS or
provided there is approval of the working spouse. The person accredited banks within first 10 calendar days following the month
should never have been a member of the SSS. The contributions when said contributions are due and applicable
will be based on 50% of the working spouses last posted monthly Submit a summary of all contributions
salary credit but in no case shall it be lower than P1,000.
Issue official receipts and maintain official records of employment
Effectively of Coverage and deductions
Remit to SSS all salary, educational, stocks investment or
Compulsory coverage privatization loan amortization of their employees and submit a
1. For an employee on the first day of employment form
2. For an employer on the first day the employer hires employee/s. Submit a summary of all employees loan amortization
Employer is given 30 days from date of employment to report the Advance SS and EC sickness benefits once approved by SSS
employee for coverage to SSS. Advance SS maternity benefits due
File for reimbursement for all legally advanced sickness and
3. For self-employed upon payment of first valid contribution, in maternity benefits
case of initial coverage.
Benefits under social security program

Voluntary coverage Covered employees are entitled to a package of benefits under

social security and EC in the event of death, disability, sickness,
1. For OFW upon first payment of contribution, in case of initial maternity, and old-age
coverage. Self-employed and voluntary members also get same benefits
except those benefits under the EC program
2. For non-working spouse upon first payment of contribution.
Sickness benefit
3. For separated member on the month the person resumed
payment of contribution. A daily cash allowance paid for the number of days a member is
unable to work due to sickness or injury. The amount is equivalent
Beneficiaries to 90% of the members average daily salary credit.
Requirements:
The legal beneficiaries of a member are: 1. He is unable to work due to sickness or injury and
confined either in a hospital or at home for at least 4
- Legally married dependent spouse until he or she remarries; days;
- Dependent legitimate, legitimated or legally adopted and 2. He has paid at least 3 months of contributions within
illegitimate children. the 12-month period immediately before the semester
These two are primary beneficiaries. of sickness/injury
If single, benefits will go to dependent parents who are In computing, exclude the semester of sickness. A
considered secondary beneficiaries. In absence of both semester refers to two consecutive quarters ending in
primary and secondary, any other person designated by the quarter of sickness. A quarter refers to three
member. (RA 8282, Sec. 8 [K]) consecutive months ending March, June, September or
December.
Dependents
For example: SSS member gets sick in October 2006 for 20 days.
(1) The legal spouse entitled by law to receive support from the a. The semester of sickness would be from July 2006 to December
member; 2006.
(2) The legitimate, legitimated or legally adopted, and illegitimate b. The 12-month period would be from July 2005 to June 2006 (where
child who is unmarried, not gainfully employed, and has not the six highest monthly salary credits will be chosen).
reached twenty-one (21) years of age, or if over twenty-one (21)
years of age, he is congenitally or while still a minor has been 3. He has used up all company sick leaves with pay; and
permanently incapacitated and incapable of self-support, 4. He has notified the employer or SSS, if separated,
physically or mentally; and voluntary or self-employed.
(3) The parent who is receiving regular support from the member. Notify employer within 5 calendar days after start of
(RA 8282, Sec. 8[e]) sickness/injury and employer must notify SSS within 5
days after receipt of notification. Notice is not required
Employment services excluded if members confinement is in hospital or member got
sick while working or within company premises.
1. Purely casual employment and not for the purpose of occupation
or business of the employer In no case shall the daily sickness benefit be paid longer than one hundred
2. Services performed or in connection with an alien vessel by an twenty (120) days in one (1) calendar year, nor shall any unused portion of the
employee if he/she is employed when such vessel is outside the one hundred twenty (120) days of sickness benefit granted under this section
Philippines be carried forward and added to the total number of compensable days
3. Services performed in the employ of the Philippine government allowable in the subsequent year.
4. Service performed in the employ of a foreign government or
international organization, or their wholly-owned instrumentality Effect of failure or delay in notification
unless there is an agreement with the Philippine Government for If employee notifies beyond period, confinement shall be deemed
the inclusion of such employees in the SSS to have started not earlier than the fifth day.
5. Such other temporary services performed by temporary employees If employer notifies beyond period, employer shall be reimbursed
which may be excluded by regulation. Employees of bona fide only for each day of confinement starting from the 10th calendar
independent contractors shall not be deemed employees of the day immediately preceding the date of notification to SSS.
employer engaging the service of said contractors. If employee notified the employer but the latter failed to notify
SSS, employer shall have no right to recover the daily sickness
Duties of employee-members allowance advanced.

Among others: Prescribed period in filing a claim of a member confined in hospital/home:

 AGRARIAN
1. For hospital, claim for benefit must be filed within 1 year from last
day of confinement; Claims under the Labor Code for compensation and under the Social Security
2. For home, 1 year from start of illness. Law for benefits are not the same as to their nature and purpose.
Failure to file the claim within the prescribed period will result to
denial of claim. On the one hand, the pertinent provisions of the Labor Code govern
compensability of work-related disabilities or when there is loss of income
Maternity Benefit due to work-connected or work-aggravated injury or illness.

It is a daily cash allowance granted to female member who was On the other hand, the benefits under the Social Security Law are intended to
unable to work due to childbirth or miscarriage. provide insurance or protection against the hazards or risks of disability,
It is equivalent to 100% of members average daily salary credit sickness, old age or death, inter alia, irrespective of whether they arose from
multiplied by 60 days for normal delivery pr miscarriage, 78 days or in the course of the employment.
for caesarian section delivery.
And unlike under the Social Security Law, a disability is total and permanent
Deliveries covered: under the Labor Code if as a result of the injury or sickness the employee is
Only for the first four deliveries or miscarriages shall be paid unable to perform any gainful occupation for a continuous period exceeding
starting May 24, 1997 (effectivity of RA 8282) 120 days regardless of whether he loses the use of any of his body parts.
Notice required:
As soon as pregnancy is confirmed, member must notify Is monthly pension for life?
immediately employer or SSS, if unemployed, etc. and probable date of The member who suffers from permanent total disability shall
childbirth at least 60 days from date of conception. Employer must in turn receive monthly pension for life. However, the said monthly pension shall be
notify SSS after receipt of notification. Failure to observe the rule may result suspended: (1) if he recovers from his permanent total disability; (2) if he
in denial. resumes employment; (3) if he fails to report for annual physical exam upon
notice by SSS. Domiciliary service (if member is unable to report to SSS for
Qualifications for entitlement: exam) can be requested.
1. She has paid at least three monthly contributions within the 12-
month period immediately preceding the semester of her The member who suffers from permanent partial disability shall receive his
childbirth or miscarriage monthly pension for the duration of a certain number of months assessed
2. She has given the required notification of her pregnancy through based on the degree of his disability.
her employer if employed, or to SSS if separated, voluntary or self-
employed. Prescriptive period in filing a disability claim:

For example: SSS member gives birth in December 2006. 10 years from the date of occurrence of disability.
a. The semester of contingency would be from July 2006 to December
2006. Retirement Benefit
b. The 12-month period before the semester of contingency would be
from July 2005 to June 2006. It is a cash benefit either in monthly pension or lump sum paid to a member
who can no longer work due to old age.
Deliveries covered:
Only for the first four deliveries or miscarriages shall be paid Who may qualify?
starting May 24, 1997 (effectivity of RA 8282) 1. A member who is 60 years old, separated from employment or
Notice required: ceased to be self-employed, and has paid at least 120 monthly
As soon as pregnancy is confirmed, member must notify contributions prior to the semester of retirement.
immediately employer or SSS, if unemployed, etc. and probable date of 2. A member who is 65 years old whether employed or not and has
childbirth at least 60 days from date of conception. Employer must in turn paid at least 120 monthly contributions prior to the semester of
notify SSS after receipt of notification. Failure to observe the rule may result retirement.
in denial.
CASE: Dycaico v. SSS
Bonifacio S. Dycaico, member of the SSS, In his self-employed data
Can a member apply for sickness benefit if she has been paid maternity record, he named the petitioner, Elena P. Dycaico, and their eight
benefit? children as his beneficiaries. At that time, Bonifacio and Elena lived
No, because as a rule, no member can be entitled to two benefits together as husband and wife without the benefit of marriage.
for the same period. In June 1989, Bonifacio was considered retired and began receiving
his monthly pension from the SSS. He continued to receive the
Disability Benefit monthly pension until he passed away on June 19, 1997. A few
months prior to his death, however, Bonifacio married the
Disability any restriction or lack (resulting from impairment) of ability to petitioner on January 6, 1997.
perform an activity in the manner or within the range considered normal for a Sec. 12-B. Retirement Benefits.
human being (adopting the definition of disability by World Health xxx xxx xxx
Organization) (d) Upon the death of the retired member, his primary
Impairment any loss or abnormality of psychological, physiological, or beneficiaries as of the date of his retirement shall be entitled to
anatomical structure or function. receive the monthly pension. . . .

Who is qualified? SC:

The proviso "as of the date of his retirement" in Section 12-B(d) of
A member who suffers partial or total permanent disability with at Rep. Act No. 8282, which qualifies the term "primary beneficiaries," is
least one monthly contribution paid to the SSS prior to the semester of unconstitutional for it violates the due process and equal protection
contingency. clauses of the Constitution.

Some partial permanent disabilities: Equal protection:

one thumb one big toe Results in the classification of dependent spouses as primary
one index finger one hand beneficiaries into two groups:
one middle finger one arm (1) Those dependent spouses whose respective marriages
one ring finger one foot to SSS members were contracted prior to the latter's retirement;
one little finger one leg and
hearing of one ear one ear (2) Those dependent spouses whose respective marriages
hearing of both ears both ears to SSS members were contracted after the latter's retirement.
sight of one eye
Some total permanent disabilities: When may underground mineworkers qualify for retirement benefit?
1. Complete loss of sight of both eyes
2. Loss of two limbs at or above the ankles or wrists 1. Has reached the age of 55 years old and is an underground mineworker for
3. Permanent complete paralysis of two limbs at least 5 years (either continuous or accumulated) prior to the semester of
4. Brain injury resulting to incurable imbecility or insanity retirement but whose actual date of retirement is not earlier than March 13,
5. Such cases as determined and approved by SSS 1998; separated from employment or in the case of self-employed, has ceased
self-employment, and has paid at least 120 monthly contributions prior to the
CASE: Ortega v. SSC semester of retirement.
 AGRARIAN
would be safe to presume that she was dependent on the husband for
2. has reached the age of 60 years old whether employed or not and has paid support, unless it is shown that she is capable of providing for herself.
at least 120 monthly contributions prior to the semester of retirement.
CASE: SSC, et al. v. Favila
Types of retirement benefits: GR no. 170195, March 28, 2011

1. Monthly pension Issue:

2. Lump sum amount Whether Teresa a dependent upon Florante for support in order
for her to fall under the term dependent spouse under Scetion 8
Aside from retirement benefit, retiree is entitled to a 13th month pension (k) of RA 1161 (law applicable as the time of death of member)
payable every December. All retiree pensioners prior to effectivity of RA 7875
on March 4, 1995 are automatically considered members of PhilHealth and he SC
and his legal dependents are entitled to its hospitalization benefits. A spouse who claims entitlement to death benefits as a primary
beneficiary under the Social Security Law must establish two
Death Benefit qualifying factors, to wit: (1) that she/he is the legitimate spouse,
and (2) that he/she is dependent upon the member for support.
It is a cash benefit either in monthly pension or lump sum paid to the
beneficiaries of a deceased member. What the SSC relies on in concluding that Teresa was not
dependent upon Florante for support during their separation for 17
Types of death benefit: years was its findings that Teresa maintained an illicit relationship
1. Monthly pension with another man. Teresa however counters that such illicit
2. Lump sum amount relationship has not been sufficiently established and, hence, as the
legal wife, she is presumed to be continually dependent upon
Beneficiaries: Florante for support.
Primary: (1) Legitimate dependent spouse until the person
remarries; (2) dependent legitimate, legitimated or legally adopted We agree with Teresa that her alleged affair with another man was
and illegitimate children who are not yet 21 years old. not sufficiently established.
Secondary: In the absence of primary, dependent parents.
In their absence, any other person designated by member in It is not hard to see that Estelitas claim of Teresas cohabitation
record. with a married man is a mere allegation without proof. Likewise,
the interviews conducted by SSS revealed rumors only that Teresa
had an affair with a certain police officer. Notably, not one from
CASE: Signey v. SSS those interviewed confirmed that such an affair indeed existed.

Who is entitled to the social security benefits of a Social Security System (SSS) SC found untenable Teresas assertion that being the legal wife, she
member who was survived not only by his legal wife, but also by two common- is presumed dependent upon Florante for support. In Re:
law wives with whom he had six children? Application for Survivors Benefits of Manlavi, SC defined
dependent as one who derives his or her main support from
In the case at bar, the existence of a prior subsisting marriage between the another [or] relying on, or subject to, someone else for support, not
deceased and Editha is supported by substantial evidence. Petitioner, who has able to exist or sustain oneself, or to perform anything without the
fully availed of her right to be heard, only relied on the waiver of Editha and will power or aid of someone else.
failed to present any evidence to invalidate or otherwise controvert the
confirmed marriage certificate registered under LCR Registry No. 2083 on 21 SC declared in Aguas the obvious conclusion is that a wife who is
November 1967. She did not even try to allege and prove any infirmity in the already separated de facto from her husband cannot be said to be
marriage between the deceased and Editha. dependent for support upon the husband, absent any showing to
the contrary. Conversely, if it is proved that the husband and wife
SSC found (affirmed by CA and SC) based on the SSS field investigation report are still living together at the time of his death, it would be safe to
that even if Editha was the legal wife, she was not qualified to the death presume that she was dependent on the husband for support,
benefits since she herself admitted that she was not dependent on her unless it is shown that she is capable of providing herself. Hence,
deceased husband for support inasmuch as she was cohabiting with a certain we held therein that the wife- claimant had the burden to prove
Aquilino Castillo. that all the statutory requirements have been complied with,
particularly her dependency on her husband at the time of his
The appellate court also held that the law is clear that for a child to be qualified death.
as dependent, he must be unmarried, not gainfully employed and must not be In this case, aside from Teresas bare allegation that she was
21 years of age, or if over 21 years of age, he is congenitally or while still a dependent upon her husband for support and her misplaced
minor has been permanently incapacitated and incapable of self-support, reliance on the presumption of dependency by reason of her valid
physically or mentally. And in this case, only the illegitimate children of the and then subsisting marriage with Florante, Teresa has not
deceased with Gina namely, Ginalyn and Rodelyn, are the qualified presented sufficient evidence to discharge her burden of proving
beneficiaries as they were still minors at the time of the death of their father. that she was dependent upon her husband for support at the time
Considering petitioner is disqualified to be a beneficiary and the absence of of his death. She could have done this by submitting affidavits of
any legitimate children of the deceased, it follows that the dependent reputable and disinterested persons who have knowledge that
illegitimate minor children of the deceased should be entitled to the death during her separation with Florante, she does not have a known
benefits as primary beneficiaries. trade, business, profession or lawful occupation from which she
derives income sufficient for her support and such other evidence
Whoever claims entitlement to the benefits provided by law should establish tending to prove her claim of dependency.
his or her right thereto by substantial evidence. Since petitioner is disqualified
to be a beneficiary and because the deceased has no legitimate child, it follows If deceased member is survived by legitimate, legitimated or legally adopted
that the dependent illegitimate minor children of the deceased shall be and illegitimate children, how is monthly pension to be divided?
entitled to the death benefits as primary beneficiaries. The SSS Law is clear
that for a minor child to qualify as a "dependent, the only requirements are If survived by less than five, the illegitimate minor children will be
that he/she must be below 21 years of age, not married nor gainfully entitled to 50% of the share of the legitimate, legitimated or legally
employed. adopted and 100% of the dependents pension (equivalent to 10%
of the members monthly pension or P250 whichever is higher).
In this case, the minor illegitimate children Ginalyn and Rodelyn were born on Only five minor children, beginning from the youngest, are entitled
13 April 1996 and 20 April 2000, respectively. Had the legitimate child of the to dependents pension. When there are more than 5, the
deceased and Editha survived and qualified as a dependent under the SSS Law, legitimate, legitimated or legally adopted shall be preferred.
Ginalyn and Rodelyn would have been entitled to a share equivalent to only
50% of the share of the said legitimate child. Since the legitimate child of the For how long will the dependent child receive the pension?
deceased predeceased him, Ginalyn and Rodelyn, as the only qualified primary
beneficiaries of the deceased, are entitled to 100% of the benefits. When the child reaches 21 years old, gets married, gets employed
or dies. However, the dependents pension is granted for life to
The obvious conclusion then is that a wife who is already separated de facto children who are over 21 years old, provided they are incapacitated
from her husband cannot be said to be "dependent for support" upon the and incapable of self-support due to physical or mental disability
husband, absent any showing to the contrary. Conversely, if it is proved that which is congenital and acquired during minority.
the husband and wife were still living together at the time of his death, it
 AGRARIAN
Contributions in 1985. Since the suit was filed within a few months from the time of the
discovery of the violation, the Supreme Court ruled that the suit was filed
SSS 11% of the monthly salary credit not exceeding P16,000 and payable by within the prescriptive period.
both employer (7.37%) and employee (3.63%) effective Jan. 1, 2007.

Self-employed and voluntary members pay the 11% of the monthly salary
credit (MSC) based on the monthly earnings declared at the time of
registration.

For OFWs, the minimum monthly salary credit is pegged at P5,000.

For the non-working spouse, the contribution will be based on 50% of the
working spouse?s last posted monthly salary credit but in no case shall it be
lower than P1,000

SS Number

The SS number assigned to a member is the lifetime number and

must always be used in all transactions with the SSS. The member should not
secure another number at any other time.

If the member wishes to secure another SS card and cannot

remember the SS number, it is advisable to inquire from the SSS servicing
branch.

If a member has more than one SS number, this will cause delay in
processing of the claim for benefits or loans in the future. Thus, it is important
that a member should have only one SS number. Therefore, he/she should
write or visit the SSS servicing branch to request for the cancellation of the
other number/s and consolidation of all of the contributions under the
retained number. From then on, the retained number should be used in all
transactions with the SSS.

Right to Insitute

Sec. 22 - The right to institute the necessary action against the employer may
be commenced within twenty (20) years from the time the delinquency is
known or the assessment is made by the SSS, or from the time the benefit
accrues, as the case may be.

Penal Clause

The issue of the prescriptive period in filing an action against the employer for
enforcing the provisions of RA 1161 was one of the issues raised in the case of
Rafael A. Lo vs. Court of Appeals (GR No. 128667), in this case, in 1953, the
respondent Luguibis started working as a mechanic at the Polangui Rice Mill
Inc which was owned at the time by Jose Lo. In 1959, he was asked to render
services as a mechanic at the Polangui Bijon Factory which was also owned by
Jose Lo. He resigned in 1970 due to illness.

In 1978, the management of the company was transferred to Jose Los son,
Rafael Lo and his sister Leticia Lo. In 1981, the private respondent was again
hired by Jose Lo as a mechanic. In 1984, the private respondent suffered an
accident while repairing one of the defective machines in the noodle factory
where he sustained serious injuries forcing him to retire.

In 1985, private respondent applied for retirement benefits with the SS.
However, his application was denied since per SSS records he became a
member only in 1983 and contributions were remitted only from October
1983 to September 1984 despite the fact that SSS contributions in the amount
of P3.50 have been deducted from his monthly salary since 1957. As a result,
he filed a petition with the SSS against petitioner Rafael Lo and Jose Lo.

The issue is whether the petitioners right to claim his SSS benefits has already
prescribed.

The Supreme Court ruled that pursuant to Section 22(b), par. 2 of RA 1161 or
the SSS Law, the right to file the said action has not yet prescribed. It states
that The right to institute the necessary action against the employer may be
commenced within twenty (20) years from the time the delinquency is known
or the assessment is made by the SSS, or from the time the benefit accrues, as
the case may be. (emphasis supplied)

The Supreme Court also clarified that the said provision applies to
administrative and civil actions against an employer for his failure to remit SSS
contributions. On the other hand, criminal actions for violations of the SSS law,
on the other hand, prescribe in four years.

The Supreme Court also explained the reckoning of the 20-year period. It
explained that the period of prescription commences to run only upon the
discovery of the violation. In this case, the discovery was made only when the
petitioners application for retirement benefits was denied by SSS which was