Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Second Regular Session

7053

House Bill No,

Introduced by Representatives Alfredo “Albee” B. Benitez,
Karlo Alexei B. Nograles, Rosanna “Ria” Vergara and
Rodante D. Marcoleta

EXPLANATORY NOTE

This bill seeks to exclude the services performed by employees of
religious corporations or entities from employment services covered by Social
Security System (SSS) Law, amending for the purpose Republic Act (RA) No.
8282, otherwise known as the “Social Security Act of 1997.”

The Social Security Act was enacted to develop, promote and maintain a
sound and viable social security system suitable to the needs of the people
throughout the Philippines. The sole purpose of the law is to promote social
justice and provide meaningful protection to members and their beneficiaries
against the hazards of disability, sickness, maternity, old age, death and other
contingencies resulting in loss of income or financial burden. However,
employees covered by SSS must contribute to the SSS for the social security
benefits in accordance with the schedule provided by it. Monthly employee’s
contribution is currently based on at the maximum salary bracket of P 16,000.00.

SSS covers permanent private-sector employees and their families who
have worked continuously in a company for more than six months. The Social
Security Act is predicated on the existence of an employer-employee
relationship of more or less permanent nature.

Under Section 8, paragraph (j) of RA 8282, there are services which are
not considered “employment” for purposes of SSS coverage such as: 1)
employment that are purely casual and not for the purpose of occupation or
business of the employer; 2) service performed in connection with alien vessels
by an employee if he is employed when such vessel is outside the Philippines;
3) service performed in the employ of Philippine Government or instrumentality


or agency; 4) service performed in the employ of a foreign government or
international organization; and 5) such other services performed by temporary
and other employees which may be excluded by regulation of the SSS.

This bill seeks to exclude the services performed by the employees called
to serve the manpower complement of entities or corporations organized and
operated exclusively for religious purposes. Motivated by their deep religious
conviction, they render services not in the context of livelihood or economic
gain but in furtherance of their religious adherence, spiritual upliftment and
fellowship. The remuneration that they regularly receive does not equate within
the range of a salary paid to “regular employees.” In particular, those who
dedicated themselves into evangelical, missionary or propagation tasks, have no
fixed working hours, Similarly, those who serve in various support offices work
full time and receive mere financial assistance with free housing and medical
assistance. Requiring them to pay SSS contributions will not serve the purpose.

In view of the foregoing, immediate approval if this bill is earnestly

sought.
»
fe
NITEZ ROSANNA “Ria” VER



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No,__7053 _

Introduced by Representatives Alfredo “Albee” B. Benitez,
Karlo Alexei B. Nograles, Rosanna “Ria” Vergara and
Rodante D. Marcoleta

AN ACT
EXCLUDING THE SERVICES PERFORMED BY EMPLOYEES OF
RELIGIOUS ENTITIES FROM EMPLOYMENT SERVICES COVERED
BY SOCIAL SECURITY SYSTEM LAW, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 8282 OTHERWISE KNOWN AS THE
“SOCIAL SECURITY ACT OF 1997”

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 8 of Republic Act No. 8282, is hereby further
amended to read as follows:

“SEC. 8. Terms Defined.—For the purposes of this Act, the
following terms shall, unless the context indicates otherwise, have the
following meanings:

“(a) Xxx XXX XXXXXX}

“(b) xxx XXX XXXXXX;

“XXXXXX XXX XXXXXX,


(j) Employment - Any service performed by an employee for his
employer, except -

“(1) Employment purely casual and not for the purpose of
occupation or business of the employer;

“(2) Service performed on or in connection with an alien
vessel by an employee if he is employed when such vessel is
outside the Philippines;

“(3) Service performed in the employ of the Philippine
Government or instrumentality or agency thereof;

“(4) Service performed in the employ of a foreign
government or international organization, or their wholly-owned
instrumentality: Provided, however, That this exemption
notwithstanding, any foreign government, _ international
organization or their wholly-owned instrumentality employing
workers in the Philippines or employing Filipinos outside of the
Philippines, may enter into an agreement with the Philippine
Government for the inclusion of such employees in the SSS except
those already covered by their respective civil service retirement
systems: Provided, further, That the terms of such agreement shall
conform with the provisions of this Act on coverage and amount of

payment of contributions and benefits: Provided, finally, That the


provisions of this Act shall be supplementary to any such
agreement;
(4-A) SERVICE PERFORMED IN THE EMPLOY OF A
FOUNDATION, ASSOCIATION OR CORPORATION,
ORGANIZED AND OPERATED EXCLUSIVELY FOR
RELIGIOUS PURPOSES: PROVIDED, THAT THE
EMPLOYEES OF THE SAID FOUNDATION,
ASSOCIATION OR CORPORATION VOLUNTARILY
PERFORM THEIR DUTIES FULLY, DIRECTLY, AND
SOLELY FOR RELIGIOUS ACTIVITIES AND NO PART
OF ANY NET EARNINGS OF WHICH INURES TO THE
BENEFIT OF ANY PRIVATE INDIVIDUAL: PROVIDED,
FURTHER, THAT SAID EMPLOYEES ARE ACTIVE AND
DEVOTED MEMBERS OF THESE RELIGIOUS ENTITIES:
PROVIDED, FINALLY, THAT THESE ENTITIES PROVIDE
SAID EMPLOYEES WITH DECENT HOUSING AND
BASIC MEDICAL SERVICES, ASIDE FROM THE
MODEST FINANCIAL ALLOWANCES THEY RECEIVE
TO SUPPORT THEMSELVES AND/OR THEIR FAMILIES;
[and]

“(5) Such other services performed by temporary and other

employees which may be excluded by regulation of the


Commission. Employees of bona fide independent contractors
shall not be deemed employees of the employer engaging the
services of said contractors.”

SEC. 2. Repealing Clause. — Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation
contrary to or inconsistent with, the provisions of this Act is hereby repealed,
modified, or amended accordingly.

SEC. 3. Effectivity Clause. — This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in at least two (2) national
newspapers of general circulation.

Approved,