EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE
S. No 1847
%
DA TIE
W£>EX
Introduced by Senator Manuel "Uto" M. Lapid
AN ACT
INSTITUTIONALIZING A NATIONAL UNEMPLOYMENT INSURANCE PROGRAM 
FOR THE PHILIPPINES AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
The unemployment rate in the Philippines had been on a downward trend since 
2005. However, this trend, which was brought about by the sustained period of economic 
growth, was abruptly disturbed due to the effects of the coronavirus pandemic. Many 
workers lost their jobs due to layoff and retrenchment when several companies and 
businesses were forced to shut down due to financial losses. This caused the significant 
Increase in the unemployment rate to 17.7% In April 2020, almost triple the 
unemployment rate in April 2019, and to 10.0% in September quarter 2020, almost half 
the unemployment rate In the same quarter the previous year. According to our 
economists, these figures would be much higher if those not in the labor force as well as 
potential entrants who were hindered by the pandemic were to be included.
This pandemic does not only call for an effective employment recovery plan but 
also necessitate the government to come up with a stable system to safeguard our 
economy from or at least cushion the effects of extraordinary risks which our country 
may experience anytime. Although we have existing programs for unemployment


assistance, this pandemic showed us how inadequate and inefficient these are to support 
the displaced workers. This bill seeks to answer such problem.
It shall be the policy of the State that labor Is affirmed as a primary social economic 
force. As such, the State shall protect the rights of workers and promote their welfare. In 
view thereof, this bill seeks to provide temporary and partial Income replacement to 
insured persons who lose their jobs while they seek to obtain new employment. This aims 
to Institutionalize a National Unemployment Insurance Program which would safeguard 
individuals against risk of substantial income loss and consumption reduction of goods 
for subsistence, provide support for displaced workers during the period of job search, 
and incentivize individuals to proceed with the job search. The key features of the 
program are as follows:
(a) Compulsory participation by Individuals who are formally employed In the private 
and public sectors;
(b) Voluntary participation by the self-employed and informal sector, encouraged 
through incentives;
(c) Progressive, income-based premium contributions;
(d) Shared premium contributions among the government, employer and employee;
(e) Basic unemployment insurance benefits limited to at most 3 monthly payments 
each payment equivalent to 80% of the worker's basic pay prior to separation from 
work;
(f) Additional benefits In the form of training, training allowances and job counselling 
for the unemployed;
(g) Monitoring mechanisms to minimize adverse systemic effects of moral hazard;
(h) The creation of a Philippine Job Insurance Corporation C'PhilJobs"), tasked to 
administer and implement the National Unemployment Insurance Program and 
designed to be administratively lean and efficient;
(I) The designation of SSS as the Interim Program Manager for a maximum of the 
first 5 years of the program existence;


(j) The creation of an Endowment Fund which wili fuliy subsidize premium 
contributions for workers and empioyers on the first year of Program operations, 
as a form of economic stimuius; and
(k) The creation of a Reserve Fund which wili perform, inter alia, the intertemporal 
risk pooling and allow sufiRcient benefit payouts during infrequent spells of massive 
unemployment.
In view of the foregoing, the immediate passage of this bill Is earnestly sought.
iUEL”LJTO"M. LAPID
Senator


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE 
S. No. 1847
DA TC 
T)ME
Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
INSTITUTIONALIZING A NATIONAL UNEMPLOYMENT INSURANCE 
PROGRAM FOR THE PHILIPPINES AND APPROPRIATING FUNDS
THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Short Title. This Act shall be known as the '■'PhiUobs Act of2020'.
Chapter I. Guiding Principles and Objectives
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SECTION 2. Declaration of Policy. It shall be the policy of the State that labor
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is affirmed as a primary social economic force. As such, the State shall protect the
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rights of workers and promote their welfare. During episodes of unemployment, the
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State shall provide assistance to displaced workers to ensure that consumption levels
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are not substantially reduced and that sufficient resources are available for job search
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or the identification of alternative means of livelihood. The purpose of unemployment
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Insurance is to provide temporary and partial income replacement to insured persons
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who lose their jobs while they seek to obtain new employment.
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SECTION 3. Guiding Principles. - In pursuit of a National Unemployment
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Insurance Program, this Act shall adopt the following guiding principles:
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(a) Universality: provide all workers with assistance In the event of job loss, by
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temporarily replacing a portion of lost wages;


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(b) Income smoothing: ensure that all workers will not face substantial reductions
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In the consumption of goods for subsistence, especially during a period of
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unemployment;
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(c)Job search support: support displaced workers during job search while
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minimizing the moral hazard effects of unemployment benefits on job search
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efforts;
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(d) Efficiency: effectively utilize available funds and ensure fund viability at all
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times;
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(e) Progressivity: premium contributions will be based on ability to pay; as benefits
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will be based oti earnings as of the time of Involuntary separation; and
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(f) Social solidarity: a whole-of-nation approach will be taken to attain the policy
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goals of this Act, including risk-sharing among workers with different
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employment status and a pro-active role of government in providing social
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protection for workers.
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SECTION 4. General Objectives. This Act seeks to:
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(a) Provide all workers in the Philippines with a mechanism to protect them from
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the risk of income loss and consequently, consumption reduction when one is
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involuntarily separated from a job, and to provide support for job search;
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(b) Create the National Unemployment Insurance Program (hereafter referred to
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as the "Program") to serve as the means to assist workers during an episode
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of unemployment;
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(c) Establish the Philippine Job Insurance Corporation (PhlDobs), hereafter referred
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to as. the "Corporation") that will administer the Program and ensure Its
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continued long-term effectivity and viability.
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CHAPTER II. Definition of Terms
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SECTION 5. Definition of Terms. For purposes of this Act, these terms are
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defined as follows:
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(a) Board- refers to the Board of Directors of the Corporation;
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(b) Contribution - the amount payable to the Fund by the government, member,
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and employer in accordance with Section 9 of this Act;
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(c) Employee - Includes any person who performs services for an employer in
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which either both mental or physical efforts are used and who receives
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compensation for such services; where there Is an employer-employee
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relationship; Provided, That a self-employed worker shall be both the employee
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and employer at the same time;
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(d) Employer- any person, natural or juridical, domestic or foreign, who carries on
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In the Philippines any trade, business, industry, undertaking, or activity of any
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kind and used the services of another person who under his or her orders as
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regards the employment. For purposes of this Act, employer Includes national


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government agencies, political subdivisions, local government units, branches,
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instrumentalities, and government owned and contrplled corporations;
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(e) Eligible employee - any member as defined herein who lost his or her gainful
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occupation through no fault of his or her own. Is able and available to work, is
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actively seeking work, and has paid the minimum number of contributions as
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provided for in Section 15 (b) of this Act;
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(f) Formal sector employees - workers with specific working hours and regular
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wages, wherein the worker's job is assured. These workers are employed by
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national government agencies, instrumentalities or government owned and
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controlled corporations or private sector enterprises and their employment is
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subject to standard labor legislation, taxation, social protection or entitlement
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to certain employment benefits;
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(g) Gainful occupation - any productive activity that provides an employee as
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defined herein with income;
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(h) Informal sector workers- those whose employment Is not subject to standard
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labor legislation, taxation, social protection or entitlement to certain
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employment benefits such as but not limited to advance notice of dismissal,
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severance pay, paid annual or sick leave, for reasons, such as but not limited
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to, the worker or his or her job are undeclared; the job is casual or of a limited
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short duration; the hours of work or wage are below a certain threshold; or the
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employer is an unregistered enterprise;
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(I) Involuntary separation - separation of a worker from employment or pre-
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termination of a contract of employment without his or her consent and without
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cause by the worker, for reasons including but not limited to installation of
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labor-saving devices, redundancy, retrenchment to prevent losses or the
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closing or cessation of operation of the establishment; disease as ground for
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termination; and termination by employee, as provided for by Articles 298,299
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and 300 of the Labor Code of the Philippines, or abolition of office or position
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or other similar cases for government employees occupying plantllia positions,
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respectively, or separation due to significant economic downturn or natural or
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human-induced calamities/disasters.
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In the case of probationary employees, pre-termination of contract by the
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employer for reason/s other than the failure to meet regularization standards, as
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indicated in the employment contract. Is not considered involuntary separation under
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this Act, except in the case of significant economic downturn or closure of the
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employer's business;
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(j) Member - any worker who is an existing and current member of the
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Government Service Insurance System (GSIS) or the Social Security System
40 
(SSS) upon the effectlvlty of this Act or any worker who is not a member of the
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same but shall register with the Program. Member registration can either be
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compulsory or voluntary;
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(k) Compulsory member - refers to any formal sector employee, receiving 
compensation while in the service of an employer as defined herein, whether 
the premiums have been paid successively or intermittently. Any member 
separated from employment and any member who becomes self-employed may 
opt to continue paying contributions as a voluntary member;
(l) Voluntary member - includes informal sector workers, self-employed, and 
previously compulsory members who have become self-employed. Voluntary 
members become compulsory members once they are employed by employers 
as defined herein;
(m) 
Program Manager- refers to Interim Program Manager as provided in 
Section 8 of this Act or the Corporation as provided in Section 18 of this Act;
(n) Unemployment Insurance Benefit Payments - benefits in the form of monthly 
cash payments as provided for in Section 16 of this Act.
Chapter III. The National Unemployment Insurance Program
SECTION 6. Establishment of the Program. There Is hereby created a National 
Unemployment Insurance Program which shall provide assistance to workers during 
period of unemployment to ensure that consumption levels are not substantially 
reduced and that sufficient resources are available for job search or alternative means 
of livelihood.
SECTION 7. Coverage. The Program shall cover ail employees as defined in 
Section 5 of this Act. All SSS and GSIS members are automatically covered by the 
Program. Workers who are neither SSS nor GSIS members. Including but not limited 
to workers in the Informal sector shall be encouraged to join the Program through 
Innovative approaches to be undertaken by the Program Manager, including 
information campaigns and the provision of incentives.
SSS and GSIS shall transfer membership data to the Program Manager upon 
execution of a data sharing agreement in compliance with the requirements of the 
Data Privacy Act of 2012.
Each member shall incorporate in their identification systems and databases 
the PSN of covered individuals as provided in Section 6 of the Philippine Identification 
System Act.
SECTION 8. Interim Program Manager. The SSS shall manage the Program until 
five (5) years after the effectivity of this Act, or until such time when the Program has 
demonstrated financial viability, whichever is earlier.


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As Interim Program Manager, the SSS shall perform the powers and functions
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in Section 20 of this Act until such time that the Program is transferred to the
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Corporation.
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SECTION 9. Contributions. It shall be compulsory for the national government 
members and employers to contribute to the Fund in accordance with a reasonable 
equitable and progressive contributions schedule, to be determined by the Program 
Manager on the basis of applicable actuarial studies and in accordance with the 
following guidelines.
The national, government, employers, and employees shall equally share 
compulsory premium contributions.
The risk-rated premium computations shall take into account factors such as: 
(i) the probability of job loss, (li) salary level, (iii) the program administration costs, 
and (Iv) type of employment, as follows:
(a) Formal sector employees, regardless of tenure status, shall pay monthly 
contributions based on a contribution schedule to be actually determined by 
the Program Manager: Provided, that their monthly contributions shall not, 
however, exceed one and one-half percent (1.5%) of their respective monthly 
salaries;
(b) Contributions from self-employed employees shall be based primarily on their 
reported earnings; their monthly contributions shall not, however, exceed one 
and one-half percent (1.5%) of their estimated actual net monthly income for 
the preceding year;
(c) Contributions made by informal sector workers for the first year of membership 
shall be lower than the minimum contributions set for formally employed 
workers, as a form of incentive to formalize their employment.
A cap for maximum premium contributions shall be set by the Program 
Manager, to be actuarially determined.
For the first year of Program Implementation, the rate of monthly contribution 
is as follows:
Private Employees
Government Employees
Monthly
Contribu­
tion
Rate
Monthly
Govern
ment
Share
Monthly
Employer
Share
Monthly
Employee
Share
Monthly
Contribution
Rate
Monthly
Contribution
Share
Monthly
Employer
Share
Monthly
Employee
Share
Salary
Level


Up to 
125,000 
Pesos
1/12 of 
13.5% 
of basic 
pay
1/12 of 
4.5% 
of basic 
pay
1/12 of 
4.5% 
of basic 
pay
1/12 of 
4.5% 
of basic 
pay
1/12 of 
13.5% 
of basic pay
1/12 of 
4.5%
of basic pay
1/12 of 
4.5% 
of basic 
pay
1/12 of
4.5% 
of basic 
pay
Grater
Than
125,000
pesos
1,395
pesos
465
pesos
465
pesos
465 pesos
1,395 pesos
465 pesos
465
pesos
465 pesos
2 
Unemployment insurance benefits under existing SSS and GSIS programs shall
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be integrated with the Program created under this Act. SSS and GSIS shall continue
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the provision of unemployment insurance benefits to classes of workers that are not
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covered by this Act.
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SECTION 10. Duty to Contribute and Remit to the Unemployment Insurance 
Fund. Premium contributions to the Fund shall be remitted by'employers within ten 
(10) days from the end of each month. The member's employer shall contribute one- 
third (1/3) of each month. The member's employer shall contribute one-third (1/3) of 
each premium contribution from the member's monthly compensation. The employer's 
obligation to remit to the Fund shall begin on the member's first month of 
employment. The government's share of total contributions shall likewise be released 
to the Fund within ten (10) days from the end of each month.
The employer shall include in its annual appropriation the necessary amounts 
for its share of contributions indicated above.
SECTION 11. Incentives for Job Search. In determining the structure of 
premium contributions and benefits, the Program Manager shall Introduce 
mechanisms that optimize incentives for job search, Including but not limited to, the 
granting of additional cash allowances if job search is completed prior to 90 days after 
involuntary separation from work and the establishment of mechanisms for the 
monitoring of job search by displaced workers.
SECTION 12. Endowment Fund. To provide a source for the initial funding of 
the Program under the administration of the Interim Program Manager, there is hereby 
established an Endowment Fund which shall be self-sustaining and shall subsequently 
consist of premium contributions, investment revenues, donations, bequests, grants 
and loans from domestic and/or foreign sources, government subsidy appropriations 
and operational requirements of the Program, there is hereby appropriated out of any 
fund in the National Treasury or other sources not otherwise appropriated the sum of 
Thirty Billion Pesos (P30,000,000,000.00).


1 
The Endowment Fund shall also serve as a subsidy for workers and economic
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stimulus during the period of economic downturn caused by the COVID-19 pandemic.
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The Program Manager shail determine the initiation of charging of premium
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contributions to employers and employees, on the basis of generai economic and labor
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market conditions.
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All program administration costs to be incurred by the Interim Program
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Manager shali be charged against this Endowment Fund.
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At the end of the first fiscal year of the Program's implementation, all funds
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remaining In the Endowment Fund shall be transferred to the Reserve Fund and shall
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be utilized in accordance with Section 14 of this Act.
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SECTION 13. Unemployment Insurance Fund. An Unemployment Insurance
13 
Fund C'Fund") will be created for purposes of financing the unemployment insurance
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benefits and the administration of the Program as provided In this Act.
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SECTION 14. Reserve Fund. To ensure that the Program has the capacity to
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provide sufficient unemployment insurance benefits during periods of unexpectedly
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high unemployment levels caused by general economic downturn, national disasters,
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or such other crises of massive scale, the Program shall, on an annual basis, set aside
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a portion of its funds as reserve funds. Provided, That a ceiling on reserve funds shall
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be actuarially determined, taking into consideration the need to provide for
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extraordinary benefit payments in the short- and long-run. Provided, further. That the
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balance of the Endowment Fund at the time of the creation of the Corporation shall
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form part of the Reserve Fund, Provided, further. That whenever there are
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Unemployment Insurance Fund . balances at the end of the Corporation's fiscal year,
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either whenever premium contributions exceed unemployment insurance benefit
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payments or whenever there are unutilized portions of the reserved funds, the
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Program's benefits shall be increased in amounts, expanded in scope, or member
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contributions decreased prospectively in order to adjust expenditures or revenues to
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meet the required celling for reserve funds. Provided, further. That a portion of the
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reserve funds shall be set aside for purposes of short-term investments to earn an
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average annual Income at prevailing rates of Interest. The portion of reserve funds for
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Investment purposes shall be known as the "Investment Reserve Fund" which shall be
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Invested in any or all of the following:
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(a) In bonds, securities, promissory notes or other evidence of indebtedness of the
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Government of the Philippines, or in bonds, securities, promissory notes or
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other evidence of Indebtedness to which the full path, credit and unconditional
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guarantee of the Government of the Philippines is pledged: Provided, That at
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least fifteen percent (15%) of the investment reserve fund shall be invested for
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these purposes;


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(b) In bonds, securities, promissory notes or other evidence of indebtedness of the
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Government of the Philippines, or any of its agencies or instrumentalities to
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finance domestic infrastructure projects such as roads, bridges, ports,
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telecommunications, and other similar projects: Provided, That the.lnstruments
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issued by an agency or instrumentality of the government shall be guaranteed
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by the Government of the Philippines or any government financial Institutions
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or acceptable multilaterai agency: Provided, furtiier. That the Corporation shall
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have priority over the revenues of the projects: Provided, finally. That such
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investments shall not exceed thirty percent (30%) of the Investment Reserve
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Fund;
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(c) In bonds, securities, promissory notes or other evidence of indebtedness of the
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government financial Institutions or government corporations with acceptable
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credit or guarantee: Provided, That such investments shall not exceed thirty
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(30%) of the Investment Reserve Fund;
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(d)In bonds, securities, deposits, promissory notes or other evidence of
16. 
indebtedness of any, bank doing business in the Philippines and in good
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standing with the BSP to finance loans to private corporations doing business
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in the Philippines, including schools, hospitals, small-and-medlum scale
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Industries, cooperative and nongovernmental organizations, in which case the
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collaterals or securities shall be assigned to the Corporation, under such terms
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and conditions as the Board may prescribe: Provided, That in the case of bank
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deposits, they shall not exceed at any time the unimpaired capital and surplus
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or total private deposits of the depository bank, whichever is smaller: Provided,
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further. That said bank shall first have been designated as a depository for this
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purpose by the Monetary Board of the BSP: Provided, Anally, That such
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investments shall not exceed forty (40%) of the Investment Reserve Fund;
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(e) In bonds, securities, promissory notes or other evidence of indebtedness of
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educational or medical institutions to finance the construction, improvement
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and maintenance of schools and hospitals and their equipment and facilities:
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Provided, That such investments shall not exceed ten percent (10%) of the
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Investment Reserve Fund;
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(f) In real estate property, including shares of stocks involving real estate property,.
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and investments secured by first mortgages on real estate or other collaterals
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acceptable to the Corporation: Provided, That such projects and investments
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shall, in the determination of the Board, redound to the benefit of the
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Corporation, its members, as well as the general public: Provided, further. That
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investment in real estate property and joint ventures including shares of stocks
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involving real estate property, shall not exceed ten percent (10%) of the
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Investment Reserve Fund: Provided, Anally, That Investments in other Income
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earning projects and Investment secured by first mortgages and/or other
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collaterals shall not exceed twenty-five percent (25%) of the Investment
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Reserve Fund;
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(g)In bonds, debentures, securities, promissory notes or other evidence of
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Indebtedness of any prime corporation or multilateral institutions to finance


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domestic projects: Providedf That the issuing or assuming entity or its
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predecessors shall not have defaulted in the payment of interest on any of its
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securities and that during each of any three (3) including the last two (2) of
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the five (5) fiscal years next preceding the date of acquisition by the
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Corporation of such bonds, debentures or other evidence of indebtedness, the
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net earnings of the Issuing or assuming Institution available for its fixed
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charges, as defined In this charges for such year: Provided, further. That such
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investments shall not exceed forty (40%) of the Investment Reserve Fund;
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(h) In preferred or common shares of stocks listed or to be listed in the stock
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exchange and other securities trading markets or options or warrants to such
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Instruments of any prime or solvent corporation or financial institution created
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or existing under the laws of the Philippines with proven track record of
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profitability over the last three (3) years and payment of dividends at least once
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over the same period: Provided, That such Investments shall not exceed forty
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(40%) of the Investment Reserve Fund;
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(I) In domestic or foreign mutual funds in existence for at least three (3) years:
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Provided, That such Investments shall not exceed forty percent (40%) of the
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Investment Reserve Fund: Provided, further. That investments in foreign
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mutual funds shall not exceed one percent (1%) of the Investment Reserve
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Fund in the first year which shall be increased by one percent (1%) for each
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succeeding year, but in no case shall it exceed fifteen percent (15%) of the
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Investment Reserve Fund;
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(j) In foreign currency deposits or investment-grade rated foreign currency-
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denominated debts, prime and nonspeculative equities, and other BSP
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approved financial inSruments or other assets issued in accordance with the
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existing laws of the countries where such financial Instruments are Issued:
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Provided, That these instruments or assets are listed In bourses of the
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respective countries where these Instruments or assets are issued: Provided,
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further. That the Issuing company has proven track record of profitability over
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the last three (3) years and payment of dividends at least once over the same
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period: Provided, finaiiy. That such investments shall not exceed one percent
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(1%) of the Investment Reserve Fund In the first year which shall be increased
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by one percent (1%) for each succeeding year, but In no case shall it exceed
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fifteen percent (15%) of the Investment Reserve Fund;
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(k) In loans secured by such collaterals like cash, pensions, government securities
36 
or guarantees of multilateral Institutions Including loans to pensioners:
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Provided, That such investment shall not exceed thirty percent (30%) of the
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Investment Reserve Fund; and
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(I) In other BSP approved investment instruments with the same intrinsic quality
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as those enumerated in-paragraphs (a) to (k) hereof, subject to the policies
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and guidelines which the Board may formulate.
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No portion of the Investment Reserve Fund or income thereof shall accrue to
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the general fund of the National Government or to any of its agencies or


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instrumentalities, Including government-owned or -controlled corporations, 
except as may be allowed under this Act; Provided, That no portion of the 
Investment Reserve Fund shall be invested for any purpose or any instrument, 
institution or industry over and above the prescribed cumulative ceilings as 
follows:
60% In private securities 
5% In housing
30% in real estate related investments
30% in government financial institutions and corporations
15% in any particular industry
7.5% in foreign-currency denominated investments
5% in private-sponsored infrastructure projects without guarantee
5% in private and government sponsored infrastructure projects with
guarantee
5% in private and government sponsored Infrastructure projects.
SECTION 15. Eligibility. A worker shall be eligible for unemployment benefits 
under the Program if they meet the following requirements:
(a) The worker is a "member7' as defined under Section 5(j) of this Act;
(b) The member has paid at least 6 monthly contributions in the 12-month 
period prior to separation from work;
(c) The member was involuntarily separated from employment as defined in 
Section 5(i) of this Act;
(d) The member has undergone job counselling provided by the Program or by 
its accredited partners, and has signed an agreement with the Corporation 
to commence active job search, the compliance of which will be determined 
and monitored by the Corporation; and
(e) The member has submitted an affidavit duly signed and notarized indicating 
availability and willingness to work at any time after the filing of claims for 
unemployment benefits.
SECTION 16. Unemployment Insurance Benefit Payments. Unemployment 
insurance benefits amounting to eighty percent (80%) of the member's basic monthly 
pay at their last employment, shall be paid to the eligible worker on the 30th day of 
unemployment. A second and third payment of equivalent amounts shall be given on 
the 60th day and 90th day of unemployment, respectively, as applicable, /Voz/cfe^/that 
monthly benefits per beneficiary shall not to exceed the cap of one hundred thousand 
pesos (P100,000), subject to regular review by the Program Manager, based on 
relevant actuarial studies. Provided, further. That unemployment Insurance benefit 
payments shall cease upon the completion of the job search, or 90 days after the 
involuntary separation from employment. Provided further. That the Program Manager 
is authorized to adjust the amount of benefits defined in this Section on the basis of
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labor market conditions and as validated by actuarial studies pursuant to Section 19 
(e) of this Act, Provided/ Anally, That sufficient consultation with the Department of 
Labor and Employment and labor groups is conducted prior to any such adjustment.
SECTION 17. Government-provided Unemployment Benefits. In addition to 
unemployment Insurance benefit payments as defined In Section 5 of this Act, the 
Program shall facilitate the provision of additional unemployment benefits, at no 
additional cost to members:
(a) Training or re-tooling programs by TESDA;
(b) Job search assistance, including the provision of localized information on job 
market opportunities, job matching, and identification of education and training 
opportunities by Public Employment Service Offices;
(c) Other training or re-tooling programs or job search assistance services 
accredited by the Corporation.
The Corporation shall enter Into agreements with the relevant government 
agencies or private entities to ensure the effective and efficient provision of training 
and re-tooling programs and other forms of job search assistance for unemployed 
members to improve their chances for reemployment.
The Program shall provide members with a training allowance to cover the cost 
of attending their chosen training program. Including training fees and transportation, 
subject to the member's compliance with training program requirements.
The Corporation shall include in Its annual appropriation a provision for training 
allowance of members.
CHAPTER IV. The Philippine Job Insurance Corporation
SECTION 18. Establishment of the Corporation. There is hereby created a 
Philippine Job Insurance Corporation, which shall manage and administer the Program 
and its funds at such point in time that the fund viability has been established, not 
later than 5 years after the effectivity of the Act. In the discharge of its mandated 
responsibilities under this Act, the Corporation shall function and operate as 
independent and accountable government-owned and controlled corporations within 
the corporate governance standards and principles of Republic Act No. 10149, except 
as may be otherwise provided herein.
SECTION 19. Powers and Functions. The Corporation shall have the following 
powers and functions:
11


1 
(a j To administer the Nationai Unempioyment Insurance Program according to the
2 
provisions of this Act;
3 
(b)To formuiate, adopt, amend and/or rescind such ruies and reguiations as may
4 
be necessary as may . be necessary to carry out the overaii objectives of the
5 
Program and the other provisions of this Act;
6 
(c) Receive compiaints, institute investigations, fadiitate or enabie settiement of
7 
compiaints through the use of aiternative dispute resoiution processes,
8 
adjudicate, award indemnity on matters affecting any PhiUobs member. That
9 
in resoiving any compiaint or investigation (except where amicabie settlement
10 
is reached by the parties), the Board shall act as a collegial body. However, the
11 
Chairperson shall only vote in case of a tie.
12 
(d)To formulate and implement guidelines to determine contributions, benefits,
13' 
and disbursement arrangements, among • others, in order to effectively
14 
implement the objectives of this Act, Provided, That the Program may have
15 
different contributions and benefits that are proportionately calculated, and
16 
which must be fair, equitable, and actuarially sound and viable;
17 
(e)To conduct continuing actuarial and statistical studies and valuations to
18 
determine the financial condition of the Program, and to take into consideration
19 
such studies and valuations in the determination and readjustment of benefits,
20 
contributions, premium rates, among others;
21 
(f) To authorize cooperatives registered with the Cooperative Development
22 
Authority or associations registered with the appropriate government agency
23 
to act as collection agents with respect to Program members. Provided, That
24 
the Corporation shall accredit the cooperative or association. Provided, further,
25 
That the persons authorized to collect are bonded;
26 
(g)To approve, restructuring proposals for the payment of due but unfemitted
27 
contributions under such terms and conditions as it may prescribe;
28 
(h) Any law to the contrary notwithstanding, to condone, enter into a compromise
29 
or release, in whole or in part, such penalties imposed upon delinquent
30 
contributions regardless of the amount Involved under such valid terms and
31 
conditions it may prescribe through rules and regulations when the financial
32 
position of the employer or worker demonstrates a clear inability to pay the
33 
assessed delinquency arising from economic crisis, serious business losses or
34 
financial reverses, or resulting from natural calamity or man-made disaster
35 
without fault on the part of the employer or worker. Provided, That the
36 
Corporation shall institute a condonation of penalties of delinquent employers
37 
or workers under Republic Act No. 10361, subject to such rules and regulations
38 
it may provide;
39
40 
To determine that the powers under this provision are reasonably exercised,
41 
the Corporation shall submit to the Office of the President, the Senate, and the
42 
House of Representatives an annual report on the exercise of said powers under
43 
this provision, stating the following facts, among others: names and addresses
44 
of those whose penalty delinquencies have been subjected to compromise or
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condonation, amount involved, amount compromised or condoned, underlying
2 
reasons and justifications for compromise or condonation;
3 
(i) To collect, deposit. Invest, administer, arid disburse the Unemployment
4 
Insurance Fund In accordance with the provisions of this Act;
5 
(j) To submit to the President of the Philippines and to both Houses of Congress
6 
its Annual Report which shall contain the, status of the Fund, Its total collections,
7 
disbursements, reserves, average cost to eligible workers, unemployment
8 
statistics, any request for additional appropriation, and other data pertinent to
9 
the Implementation of the Program, and publish as synopsis of such report in
10 
at least two (2) newspaper of general circulation and on its website;
11 
(k) To require the Chief Actuary to submit a valuation report on the Program every
12 
two (2) years, or more frequently as may be necessary, and to undertake the
13 
necessary actuarial studies and calculations concerning adjustments to
14 
benefits, contributions, among others;
15 
(I) To organize Its office, fix the compensation of and appoint personal as may be
16 
deemed necessary, and upon the recommendation of the president of the
17 
Corporation;
18 
(m) To enter into agreements or contracts for such service and aid as may
19 
be needed for the proper, efficient, and stable administration of the Program,
20 
including but not limited to partnerships with public and private entitles for the
21 
efficient delivery of job counselling, skills training, and job placement services,
22 
among others;
23 
(n)To receive and manage grants, donations, and other forms of assistance;
24 
(o)To sue and be sued in court;
25 
(p)To adopt or approve the annual and supplemental budget of receipts and
26 
expenditures including salaries and allowances of the Corporation's personnel,
27 
against all funds available to the Corporation under this Act, and to authorize
28 
such capital and operating expenditures and disbursement of the Program as
29 
may be necessary and proper for the effective management and operation of
30 
the Program;
31 
(q)To set up its accounting system and provide the necessary personnel
32 
* therefor;
33 
(r) To enter Into the necessary agreements with existing Insurance programs or
34 
any other entity, enterprise, corporation, or partnership for the benefit of
35 
members transferring between systems;
36 
(s) To perform such other acts as it may deem appropriate for the proper
37 
Implementation between systems;
38
39
40
41
42
SECTION 20. Board of Directors. The Corporation shall be governed by a Board 
of Directors hereinafter referred to as the Board, composed of the following:
(a) Secretary of Labor and Employment, as the ex officio Chairperson,
(b) SSS President and Chief Executive Officer as Vice Chairperson,
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(c) Director General of the National Economic and Development Authority, as ex
2 
officio member,
3 
(d) Six (6) appointive members, three (3) of whom shall represent employers'
4 
groups, and three (3) shall represent labor groups, all of whom shall be
5 
appointed by the President.
7 
All those In the Board shall be on known competence, probity. Integrity and
8 
recognized expertise in any of the field of insurance, social security, investment,
9 
finance, economics, management, law, actuarial science, or similar fields, with at least
10 
ten (10) years of managerial or leadership experience. The six (6) members
11 
representing workers and employer groups shall be chosen from among the nominees
12 
of employees and employers' organizations respectively, as endorsed by the
13 
Governance Commission for GOCCs following the fit and proper rule and standards on
14 
Integrity, experience, education, training, and competence. The term of office of the
15 
regular appointive members of the Board shall be three (3) years, which can be
16 
extended for another'term of three (3) years. Provided, That the terms for the first
17 
six (6) appointive members shall be one (1), two (2), and three (3) years for every
18 
two (2) Directors, respectively, notwithstanding Section 17 of the GCG Law, Provided,
19 
further. That they shall continue to hold office until their successors shall have been
20 
appointed and duly qualified. All vacancies prior to the expiration of the term shall be
21 
filled for the remaining unexpired term only.
22
23 
SECTION 21. Staffing. The extend and size of the Corporation shall take Into
24 
account the size of the Program membership, functional distribution, workload, span
25 
of control, type, and variety of skills required. The Corporation's staffing structure
26 
should promote focused use of limited resources on core functions and program
27 
structure. In the creation of the staffing structure, the Board shall:
28 
(a) Determine the number of positions required based on the size of the Program
29 
membership, functions, and program structure of the Corporation;
30 
(b) Determine the skills and competencies required to perform the core functions;
31 
(c) Observe an optimal ratio between technical and administrative positions; and
32 
(d) Determine the extent of functions that can be efficiently performed by
33 
outsourced services.
34
35 
SECTION 22. Settlement of Disputes. Any dispute arising under this Act with
36 
respect to contributions, penalties, benefits, and other matter related thereto shall be
37 
cognizable by the Board, and any case filed with respect hereto shall be heard by the
38 
Board and decided within the period provided for under Republic Act No. 1103 (Ease
39 
of Doing Business and Efficient Government Service Delivery Act of 2018) after the
40 
submission of the evidence. The filing, determination and settlement of disputes shall
41 
be governed by the rules and’regulations promulgated by the Board.
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2 
Any decision of the Board in the absence of an appeal therefrom as herein provided
3 
shall become final and executory after fifteen (15) days from receipt of notice of
4 
decision, and judicial review thereof shall be permitted only after any party claiming
5 
to be aggrieved thereby has exhausted his remedies before the Board. The Board shall
6 
be deemed to be a party to any judicial action involving any such decisions, and may
7 
be represented by an attorney employed by the Board, or when requested by the
8 
Board, by the Solicitor General or any public prosecutor.
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SECTION 23. Appeals. Appeals from any decision of the Board shall be 
governed by Rules 43 and 45 of the 1997 Rules of Civil Procedure. The appeal shall 
not stay the execution of the decision unless ordered by the Board, Court of Appeals 
or by the Supreme Court and the appeal shall be without prejudice to the special civil 
action of certiorari when proper.
SECTION 24. Execution of Decision. When no appeal is perfected and there is 
no order to stay by the Board, Court of Appeals or the Supreme Court, any decision 
of the Board shall be enforced and executed in the same manner as decisions of the 
Regional Trial Court. For this purpose, the Board shall have the power to issue to the 
city or provincial or its appointed sheriff such writ of execution as may be necessary 
for the enforcement of such decision, and any person who shall fail or refuse to comply 
with such decision, writ or process after being required to do so, shall, upon application 
by the Board, be punished for contempt.
SECTION 25. Exemption from Tax, Legal Process and Lien and Government 
Guarantee. It is hereby declared to be the policy of the State that the actuarial 
solvency of the funds of the Program shall be preserved and maintained at all times 
and that contribution rates necessary to sustain the benefits under this Act shall be 
kept as low as possible In order not to burden the members and their employers. 
Taxes Imposed tend to impair the actuarial solvency of its funds and increase the 
contribution rate necessary to sustain the benefits of this Act. Accordingly, 
notwithstanding any laws to the contrary, the Corporation, its assets, revenues 
including all accruals thereto, and benefits paid, shall be exempt from all taxes, 
assessments, fees, charges, or duties of all kinds. These exemptions shall continue 
unless expressly and specifically revoked and any assessment against the Corporation 
as of the approval of this Act are hereby considered paid. Consequently, all laws, 
ordinances, regulations. Issuances, opinions or jurisprudence contrary to or in 
derogation of this provision are hereby deemed repealed, superseded and rendered 
ineffective and without legal force and effect.
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1 
Moreover, these exemptions shall not be affected by subsequent laws to the
2 
contrary unless this section Is expressly, specifically and categorically revoked or
3 
repealed by law and a provision is enacted to substitute or replace the exemption
4 
referred to herein as an essential factor of the guaranty of the national government
5 
to secure such solvency or liability.
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38
The funds and/or the properties referred to herein as well as the benefits, sums 
or monies corresponding to the benefits under this Act shall be exempt from 
attachment, garnishment, execution, levy or other processes Issued by the courts, 
quasl-judiclal agencies or administrative bodies Including Commission on Audit (COA) 
disallowances and from all financial obligations .of the members, including his 
pecuniary accountability arising from or caused or occasioned by his exercise or 
performance of his official functions or duties, or incurred relative to or in connection 
with his position or work except when his monetary liability, contractual or otherwise, 
is in favor of the Corporation.
CHAPTER V. Appropriations
SECTION 26. Appropriations. An appropriation of Thirty Billion pesos 
(P30,000,000,000.00) is hereby appropriated for the SSS as Interim Program 
Manager, as the amount necessary for the creation of the Endowment Fund as 
provided for in Section 12. Subsequently, the funds necessary for the continuous and 
effective operation of the Program shall be included in the General Appropriations Act 
(GAA), including the national government's share in the premium contributions and 
funds for the provision of allowances for training programs and job search assistance.
CHAPTER VI. Penal Provisions
SECTION 27. The Program Manager or responsible officer of the Corporation 
who fails or refuses to comply with the provisions of this Act or with its implementing 
rules and regulations shall be punished by a fine of not less than fifty thousand pesos 
(P50,000.00) nor more than two hundred thousand pesos (P200,000.00), or by 
imprisonment of not less than six (6) years and one day to twelve (12), or both, at 
the discretion of the court.
SECTION 28. The Program Manager or responsible officer of the Corporation 
who takes or misappropriates the contribution for the Fund or permits another person 
to take, misappropriate or use said contribution through consent, abandonment or 
negligence shall be punished by a fine of not less than fifty thousand (P50,000.00) 
nor more than two hundred thousand pesos (P200,000.00), or by imprisonment of not
16


1 
less than six (6) years and one day to twelve (12), or both, at the discretion of the
2 
court.
4
5
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7
8 
9
10
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12
13
14
15
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19
SECTION 29. Any employer who after deducting the monthly contribution of 
members, falls to remit the same to the Corporation within the period prescribe in this 
Act shall been presumed to have taken the same shall suffer the penalties provided in 
Article 315 of the Revised Penal Code.
SECTION 30. The heads of the offices of the national government, its political 
subdivisions, branches, agencies and instrumentalities, including government-owned 
or controlled corporations and government financial Institutions, and the personnel of 
such offices who are Involved In the collection contributions who shall fail, refuse or 
delay the payment, turnover, remittance or delivery of such accounts, upon conviction 
by final judgement, suffer the penalties of imprisonment of not less than one (1) year 
nor more than five (5) years and a fine of not less than fifty thousand pesos 
(P50,000.00) nor . more than two hundred thousand pesos (P200,000.00), and in 
addition shall suffer absolute perpetual disqualification from holding public office and 
from practicing any profession or calling licensed by the government.
20 
The officers and/or personnel referred in this section shall be liable not only
21 
criminally but also civilly to the member concerned in the form of damages as provided
22 
for in the Civil Code of Philippines.
23
24 
SECTION 31. The officers and the personnel of private companies who are
25 
involved in the collection contributions who shall fail, refuse or delay the payment,
26 
turnover, remittance or delivery of such accounts, upon conviction by final judgement,
27 
suffer the penalties of imprisonment of not less than one (1) year nor more than five
28 
(5) years and a fine of not less than fifty thousand pesos (P50,000.00) nor more than
29 
two hundred thousand pesos (P200,000.00) and shall also* be civilly liable to the
30 
member concerned in the form of damages provided for in the Civil Code of the
31 
Philippines.
32
33 
CHAPTER VII. Miscellaneous Provisions
34 
SECTION 32. Oversight Provision. Congress shall conduct a regular review of
35 
the Program, which shall entail a systematic evaluation of the Program's performance
36 
and impact. Every two years, an independent review shall be undertaken by an expert
37 
third pa^, at a cost to be shouldered by the Program, and whose results shall be
38 
submitted to the Committees of the Senate and the House of Representatives which
39 
have legislative jurisdiction over the Program.
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3
4
5
SECTION 33. Implementing Rules and Regulations. Within forty-five (45) days 
from the effectivity of this Act, the SSS as Interim Program Manager shall formulate 
the rules and regulations necessary for the implementation of this Act, in consultation 
with the DOLE and NEDA.
7
8 
9
10
11
12
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21
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SECTION 34. Information Campaign. An Intensive public information campaign 
shall be undertaken by the SSS prior to the Implementation of the rules and regulations 
of this Act.
SECTION 35. Separability Clause. If any provision of this Act is declared 
unconstitutional or invalid, the remainder of the provisions thereof not affected shall 
remain in force and effect.
SECTION 36. Repealing Clause. All laws, executive orders, administrative rules 
and regulations or parts thereof which are Inconsistent with the provisions of this Act 
are hereby amended, modified, or repealed accordingly.
SECTION 37. Effectivity Clause. This Act shall take effect immediately upon Its 
publication in a newspaper of general circulation or in the Official Gazette.
Approved,
18