Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Fifteenth Congress
First Regular Session

HOUSE BILL Ne._4593

INTRODUCED BY REPRESENTATIVE MARC DOUGLAS C. CAGAS IV

AN ACT PROVIDING FOR THE INCREASE IN THE MONTIJLY PENSIONS
UNDER THE SOCIAL. SECURITY SYSTEM, AMENDING FOR THIS PURPOSE
SECTION 12 OF R.A. 1161, OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW,
AS AMENDED, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

The current state of both global and local economies has subjected all the peoples of the
world to a continuing escalation in the prices of ail the basic necessities required for everyday
living. Added to this, the present unrest in the Middle East region has caused untold speculators
to drive the price of oil and its related products in a continuous uptrend.

All told, there is an ever pressing need to increase the income of all our people to meet
their present day expenses.

Bearing this in mind, there is a push for an increase in our workers wages. But let us not
forget our elders who have funded the previous expenses of our generation and now already
retired. Many of them subsist on the meager pensions provided for by an old law which is sorely
in need of updating.

By increasing their pension benefits thru this law, we not only provide for a better
existence on their part, but we likewise show them our gratitude for their past services, as well as
comply with the social justice provision of our Constitution

The earnest approval of this legislative measure is therefore requested.

MARC DOUGLAS C. dis IV


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Fifteenth Congress
First Regular Session

i 4593

HOUSE BILL No.

INTRODUCED BY REPRESENTATIVE MARC DOUGLAS C. CAGAS IV

AN ACT PROVIDING FOR THE INCREASE IN THE MONTHLY PENSIONS
UNDER THE SOCIAL SECURITY SYSTEM, AMENDING FOR THIS PURPOSE
SECTION 12 OF R.A. 1161, OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW,
AS AMENDED, AND FOR OTHER PURPOSES

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

Congress assembled:

SECTION 1. Section 12 of Republic Act No. 1161, as amended by Republic Act No.
8282, otherwise known as the Social Security Law, is hereby further amended to read as follows:

“Sec. 12. Monthly Pension. - (a) The monthly pension shall be the highest of the
following amounts:

(1) The sum of the following:
(i) Three hundred pesos (P300.00; plus
(ii) Twenty percent (20%) of the average monthly salary credit; plus

(iii) Two percent (2%) of the average monthly salary credit for each
credited year of service in excess of ten (10) years; or

(2) Forth percent (40%) of the average monthly salary credit; or

(3) One thousand pesos (P1,000.00): Provided, hat the monthly pension shall in
no case be paid for an aggregate amount of fess than sixty (60) months.

(b) Notwithstanding the preceding paragraph, the minimum MONTHLY pension
shail be [One thousand two hundred pesos (P1,200.00)] TWO THOUSAND FIVE
HUNDRED PESOS (P2,500.00) for members with at least ten (10) credited years
of service and [Two thousand four hundred pesos (P2,400.00)] FIVE
THOUSAND PESOS (P5,000.00) for those with twenty (20) credited years of
service]. THE AFORESAID MINIMUM MONTHLY PENSION SHALL
THEREAFTER BE ANUALLY INCREASED BY THE AMOUNT OF FIVE
HUNDRED PESOS (P500.00) PER MONTH UNTI. THE MINIMUM
MONTHLY PENSION SHALL REACH THE AMOUNTS OF FIVE


THOUSAND PESOS (P5,000.00) AND SEVEN THOUSAND FIVE HUNDRED
PESOS (P7,500.00), RESPECTIVELY.

THE COMMISSION SHALL LIKEWISE EQUITABLY ADJUST THE
MONTHLY PENSIONS OF OTHER ENTITLED MEMBERS OR THEIR
BENEFICIARIES WHOSE MONTHLY PENSIONS ARE HIGHER THAN THE
PREVIOUS MINIMUM PENSION TO PRESERVE ITE INTEGRITY AND
GRADIATION OF THE PENSION PROGRAM.

(C) THE NEWLY PRESCRIBED MINIMUM MONTHLY PENSIONS AND
THEIR SUBSEQUENT ANNUAL INCREASES SHALL APPLY TO ALL
MEMBERS OR THEIR BENEFICIARIES REGARDLESS OF THE
EFFECTIVITY OF THEIR RETIREMENT.”

SECTION 3. Repealing Clause. - All laws, executive orders, executive issuances. rules
and regulations or part thereof inconsistent or contrary to the provisions of this Act, are bereby
repealed or amended accordingly.

SECTION 4. Separabitity Clause. {n case any provision of this Act is declared
unconstitutional or invalid, the other provisions hereof which are not affected thereby shall
continue in full force and effect.

SECTION 5. Efectivity. — This Act shall take effect thirty (30) days after its publication
in two (2) national newspapers of general circulation.

ZAD Coser
MARC DOUGLAS C. CAGAS IV