" 
SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
"13 
JUL -4 RiO :16 
SENATE 
S.No. 
450 
Introduced by Senator Ralph G. Recto 
; ,'~4' h-1ct 
Explanatory Note 
The global recession few years back exposed the vulnerability of the Philippines to 
external shocks resulting in the downsizing, laying off of workers and even closing down of 
industries. Unemployment rate as of July 2012 reached 7% placing the unemployed persons in 
the country at 2.8 million!. 
Ideally, countries rely on their social security agencies to support their workforce during 
such financial difficulties. Unfortunately, this does not apply to the Philippines because the 
Social Security System is not mandated to provide unemployment benefits to displaced workers. 
This proposal recognizes workers to be an important component of a country's human 
resources and economic development. It is therefore imperative upon the state to ensure that our 
workforce not only have meaningful and satisfYing jobs, but also to guarantee employment 
security during unfortunate times when they unfortunately lose their jobs. 
This bill intends to provide unemployment benefits in the form of monthly cash payments 
equivalent to the existing monthly minimum wage to a permanent employee who is involuntarily 
unemployed. 
The grant of unemployment benefits even only for a few months will help alleviate the 
plight of these employees and give them the necessary assistance while looking for new work 
opportunities. This benefit also becomes an economic tool during periods of unemployment 
because it tempers the drop in consumption brought about by unemployment. It also serves as an 
effective instrument for government to identify the workers and industries most vulnerable to job 
layoffs and closures, so that proper support programs are introduced. 
Finally, this benefit, unlike other government programs does not promote mendicancy 
because it is extended to those who have judiciously paid their taxes and contributed to the 
Social Security System. 
In the light of the foregoing, immediate passage of the bill is earnestly sought. 
1 See National Statistics Office National Quick Stat as of December 2012 accessed at 
http://www.census.gov.ph/sites/ defau Itjfiles/attachments/ird/ quickstat/December2012.pdf on Ma rch 11, 2013. 


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SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) . 
'13 
JUL -4 AtO :16 
SENATE 
S. No. 450 
Introduced by Senator Ralph O. Recto .. 
AN ACT 
AUTHORIZING 
THE 
GRANT 
OF 
UNEMPLOYMENT 
OR 
INVOLUNTARY 
SEPARATION BENEFITS TO ELIGIBLE MEMBERS OF THE SOCIAL SECURITY 
SYSTEM (SSS), AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 8282, 
OTHERWISE KNOWN AS "SOCIAL SECURITY ACT OF 1997" 
Be it enacted by the Senate and the House of Representative of the Philippines in Congress 
assembled: 
1 
SECTION 1. Republic Act No. 8282, otherwise known as the "Sodal Security Act of 
2 
1997" is hereby amended by inserting a new section after Section 14-A, to read as follows: 
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"SEC. 
15. 
UNEMPLOYMENT 
OR 
INVOLUNTARY 
SEPARATION 
BENEFITS. UNEMPLOYMENT 
BENEFITS 
IN 
THE 
FORM 
OF 
MONTHLY CASH PAYMENTS 
EQUIVALENT 
TO 
THE I EXISTING 
MONTHLY MINIMUM WAGE SHALL BE PAID TO A PERMANENT 
EMPLOYEE WHO IS INVOLUNTARILY UNEMPLOYED: PROVIDED, 
THAT HE/SHE HAS BEEN PAYING INTEGRATED CONTRIBUTIONS FOR 
AT 
LEAST 
ONE 
(1) 
YEAR 
PRIOR 
TO 
THE 
INVOLUNTARY 
UNEMPLOYMENT. 
"UNEMPLOYMENT BENEFITS SHALL BE PAID IN ACCORDANCE WITH 
THE FOLLOWING SCHEDULE: 
CONTRIBUTIONS MADE 
I YEAR BUT LESS THAN 3 YEARS 
BENEFIT DURATION 
................. 2MONTHS 
3 OR MORE YEARS BUT LESS THAN 6 yEARS....... 3 MONTHS 
6 OR MORE YEARS BUT LESS THAN 9 yEARS....... 4 MONTHS 
9 OR MORE YEARS BUT LESS THAN 11 yEARS..... 5 MONTHS 
11 OR MORE YEARS BUT LESS THAN 15 yEARS.... 6 MONTHS 
"THE FIRST PAYMENT SHALL BE EQUIVALENT TO TWO (2) MONTHLY 
BENEFITS. 
A SEVEN-DAY (7) WAITING PERIOD SHALL BE IMPOSED 
ON SUCCEEDING MONTHLY PAYMENTS. 
"THE SSS SHALL PRESCRIBE THE DETAILED GUIDELINES IN THE 
OPERATIONALIZATION OF THIS ACT." 


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Sec. 2. The succeeding Sections of Republic Act No. 8282 are hereby renumbered 
accordingly. 
Sec. 3. Implementing Rules and Regulations. - The Social Security System (SSS) shall 
promulgate not later than thirty (30) days upon the effectivity of this Act the necessary rules and 
I 
regulations for its effective implementation. 
Sec. 4. Separability Clause. - If any part or provision of this Act is subsequently declared 
unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall 
continue to be in full force and effect. 
Sec. 5. Repealing Clause. - All laws, decrees, executive orders, rules and regulations, or 
parts thereof which are inconsistent with this Act are hereby repealed, amended or modified 
accordingly. 
Sec. 6. Effectivity. - This Act shall take effect fifteen days (15) days following its 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved,