FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. B. No. 156 
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Introduced by Senator Ralph G. Recto 
Explanatory Note 
The recent global recession 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 January 2009 reached 7.7% placing the unemployed persons in the 
country at 2.855 million. 
Ideally, countries rely on their social security agencies to support their workforce during 
such financial difficulties. 
Unfortunately, the Philippines until now does not have an 
unemployment related benefit scheme to rely on because the Social Security System is not 
mandated to provide unemployment benefits to 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 lose their jobs through no fault of their own. 
This bill provides 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 
opportunities to work. 
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 enforced. 
Finally, this benefit, unlike other government programs do not promote mendicancy 
because it is extended to those who have judiciously payed their taxes and contributed to the 
Social Security System. 
In light of the foregoing, immediate passage of the bill is earnestly sought. 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.NO: 156 
) 
) 
) 
Introduced by Senator Ralph G. Recto 
AN ACT 
AUTHORIZING 
THE 
GRANT OF UNEMPLOYMENT 
OR INVOLUNTARY 
SEPARATION BENEFITS TO ELIGmLE 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: 
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SECTION 1. Republic Act No. 8282, otherwise known as "Social Security Act of 1997" 
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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 
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BENEFITS. 
UNEMPLOYMENT BENEFITS IN THE FORM OF MONTHLY CASH 
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PAYMENTS EQUIVALENT TO THE EXISTING MONTHLY MINIMUM WAGE SHALL 
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BE PAID TO A PERMANENT EMPLOYEE WHO IS INVOLUNTARILY UNEMPLOYED: 
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PROVIDED, THAT HE/SHE HAS BEEN PAYING INTEGRATED CONTRIBUTIONS FOR 
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AT LEAST ONE (1) YEAR PRIOR TO THE INVOLUNTARY UNEMPLOYMENT. 
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"UNEMPLOYMENT BENEFITS SHALL BE PAID IN ACCORDANCE WITH THE 
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FOLLOWING SCHEDULE: 
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CONTRIBUTIONS MADE 
BENEFIT DURATION 
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1 YEAR BUT LESS THAN 3 YEARS ............................ 2 MONTHS 
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 BUTLESS THAN 11 YEARS .......... 5 MONTHS 
11 OR MORE YEARS BUT LESS THAN 15 YEARS .......... 6 MONTHS 
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"THE FIRST PAYMENT SHAll BE EQUIVALENT TO TWO (2) 
MONTHLY 
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BENEFITS. 
A SEVEN-DAY (7) WAITING PERIOD SHALL BE 
IMPOSED 
ON 
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SUCCEEDING MONTHL Y PAYMENTS. 
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"THE SSS SHALL PRESCRIBE THE DETAILED GUIDELINES IN THE 
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OPERATIONALIZATION OF TIllS ACT." 
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SEC. 2. The succeeding Sections of Republic Act No. 8282 are hereby renumbered 
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accordingly. 
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SEC. 3. Separability Clause. - If any part or provision of this Act is subsequently 
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declared unconstitutional or invalid, other parts or provisions hereof which are not affected 
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thereby shall continue to be in full force and effect. 
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SEC. 4. Repealing Clause. - All laws, decrees, executive orders, rules and regulations, or 
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parts thereof which are inconsistent with this Act are hereby repealed, amended or modified 
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accordingly. 
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SEC. 5. Effectivity. - This Act shall take effect fifteen days (15) days following its 
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publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved,