SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
AUG 15 
AS :35 
SENATE 
Senate Bill No, 12 84 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The passage of R.A. No. 1161 on 18 June 1954 marks the establishment 
of the Social Security System (SSS) for our country's wage earners and low-
salaried employees. It took three (3) years from the time the law was enacted to 
formulate a complex system for a pension plan that· will provide lifetime 
retirement income to employees. The creation of SSS is the response of the 
state to its duty to promote social justice by insuring the well-being and economic 
stability of the people in. all phases of national development as stated in Section 
10 of the Constitution. Henceforth, RA No. 1161 was enacted pursuant to the 
"policy of the Republic of the Philippines to develop, establish gradually and 
perfect a social security system which shall be suitable to the needs of the 
people throughout the Philippines and shall provide protection to employees 
against the hazards of disability, sickness, old age and death." 
This bill seeks to address the fund deficiencies that the SSS will face in 
the future if these problems are not addressed. Specifically, this bill ensures that 
increases in the value or additions to the kinds of benefits should be supported 
by a corresponding increase in the rate of contribution. It will also free four 
percent (4%) of administrative and operating costs to more productive and 
profitable uses for the institution. Furthermore, to reduce the incidence of 
delinquent payments by employers and other offenses, the fine was increased by 
ten times. 
In view of the foregoing, approval of this bill is earnestly requested. 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
"13 
AUIi 15 A8 :35 . 
, 
SENATE 
Senate Bill No;128 4 
\V'" 
RECk.'.i\ !;:P i>,Y:-U . 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
TO STRENGTHEN THE SOCIAL SECURITY SYSTEM THEREBY AMENDING 
FOR THIS 
PURPOSE, 
REPUBLIC ACT NO. 1161, AS AMENDED, 
OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Paragraph (2) of Section 4(b) of Republic Act No. 1161, as 
amended, is hereby further amended to read as follows: 
"Sec. 4. Powers and Duties of the Commission and SSS. - (a) 
The Commission. - For the attainment of its main objectives as set 
forth in Section 2 hereof, the Commission shall have the following 
powers and duties: 
Xxx 
"(b) The Social Security System. - Subject to the provIsIon of 
Section four (4), paragraph seven (7) hereof, the SSS shall have 
the following powers and duties: 
"(1) To submit annually not later than April 30, a public report to the 
President of the Philippines and to the Congress of the Philippines 
THROUGH THE HOUSE COMMITTEE ON GOVERNMENT 
ENTERPRISES AND 
PRIVATIZATION AND THE SENATE 
COMMITTEE ON GOVERNMENT CORPORATIONS AND PUBLIC 
ENTERPRISES, covering its activities in the administration and 
enforcement of this Act during the preceding year including 
information ON THE ACTUARIALNALUATION REPORT AND 
OTHER DATA [information] and recommendations on broad 
policies for the development and perfection of the program of the 
SSS; 
"(2) To require the actuary to submit a valuation report on the SSS 
benefit program every four (4) years, or more frequently as may be 
necessary, to undertake the necessary actuarial studies and 
calculations concerning increases in benefits taking into account 
inflation and the financial stability of the SSS, and to provide for 
feasible increases in benefits every four (4) years, including the 
addition of new ones, under such rules and regulations as the 
Commission may adopt, subject to the approval of the President of 
the Philippines: Provided, That the actuarial soundness of the 


reserve fund shall be guaranteed Provided, further, That such 
increases in benefits [shall not require any increase in the rate of 
contribution] CAN BE SUPPORTED BY THE CURRENT RATE OF 
CONTRIBUTION, OTHERWISE ANY INCREASE IN BENEFITS 
OR ANY ADDITION THEREOF SHALL ONLY BE IMPLEMENTED 
IF THE CURRENT CONTRIBUTION AND INCOME LEVELS CAN 
SUSTAIN SUCH AN INCREASE;" 
SEC. 2. Section 18 of Republic Act No. 1161, as amended, is hereby 
further amended to read as follows: 
"Sec. 18. Employee's Contributions. - (a) Beginning as of the last 
day of the calendar month when an employee's compulsory 
coverage takes effect and every month thereafter during his 
employment, the employer shall deduct and withhold from such 
employee's monthly salary, wage, compensation or earnings, as 
the employee's contribution in an amount corresponding to his 
salary, wage, compensation or earnings during the month in 
accordance with the following schedule: 
SALARY 
RANGE OF 
MONTHLY 
MONTHLY CONTRIBUTION 
BRACKET 
COMPENSATION 
SALARY 
I 
II 
III 
IV 
V 
VI 
VII 
VIII 
IX 
X 
XI 
XII 
XIII 
XIV 
XV 
XVI 
XVII 
CREDIT 
EMPLOYER 
EMPLOYEE 
TOTAL 
1,000.00 - 1,249.99 
1000 
50.70 
33.30 
84.00 
1,250.00 - 1,749.99 
1500 
76.00 
50.00 
126.00 
1,750.00 - 2,249.99 
2000 
101.30 
66.70 
168.00 
2,250.00 - 2,749.99 
2500 
126.70 
83.30 
210.00 
2,750.00 - 3,249.99 
3000 
152.00 
100.00 
252.00 
3,250.00 - 3,749.99 
3500 
177.30 
116.70 
294.00 
3,750.00 - 4,249.99 
4000 
202.70 
133.30 
336.00 
4,250.00 - 4,749.99 
4500 
·228.00 
150.00 
378.00 
4,750.00 - 5,249.99 
5000 
253.30 
166.70 
420.00 
5,250.00 - 5,749.99 
5500 
278.70 
183.70 
462.40 
5,750.00 - 6,249.99 
6000 
304.00 
200.00 
504.00 
6,250.00 - 6,749.99 
6500 
329.30 
216.78 
546.00 
6,750.00 - 7,249.99 
7000 
354.70 
233.30 
588.00 
7,250.00 - 7,749.99 
7500 
380.00 
250.00 
630.00 
7,750.00 - 8.249.99 
8000 
403.30 
266.70 
672.00 
8,250.00 - 8,749.99 
8500 
430.70 
283.30 
714.00 
8,750.00 - OVER 
9000 
456.00 
300.00 
756.00 
"The foregoing schedule of contribution shall also apply to 
self-employed and voluntary member,s. IT SHALL ALSO BE 
ADJUSTED 
EVERY FOUR 
(4) 
YEARS, 
OR WHENEVER 
NECESSARY, TO THE PREVAILING COST OF LIVING INDEX AS 
DETERMINED 
BY 
THE 
NATIONAL 
ECONOMIC 
AND 
DEVELOPMENT AUTHORITY (NEDA); PROVIDED, FURTHER, 
THAT THE SAME SHALL BE IMPLEMENTED ONLY UPON 
APPROVAL OF CONGRESS. 
"The maximum monthly salary credit shall be Nine thousand 
pesos (P9,000.00) effective January Nineteen hundred and ninety 
six (1996); Provided, That it shall be increased by One thousand 
pesos (P1,000.00) every year thereafter until it shall have reached 
Twelve thousand pesos (P12,000.00) by Nineteen hundred and 
ninety nine (1999): Provided, further, That the minimum and 
maximum monthly salary credits as well as the rate of contributions 


, 
' 
may be fixed from time to time by the Commission through rules 
and regulations taking into consideration actuarial calculations and 
rate of benefits, subject to the approval of the President of the 
Philippines, 
SEC. 3. Section 25 of Republic Act No, 1161, as amended, is hereby 
further amended to read as follows: 
.' , 
"Sec. 25. Deposits and Disbursements. - All money paid to or 
collected by the SSS every year under this Act, and all accruals 
thereto shall be deposited, administered and disbursed in the same 
manner and under the same conditions and requirements as 
provided by law for other public special funds: Provided, That not 
more than [twelVe] EIGHT percent [(12%)] (8%) of the total yearly 
contributions plus three percent (3%) of other revenues shall be 
disbursed for operational expenses such; as salaries and wages, 
supplies and materials, depreciation and the maintenance of offices 
of the SSS: Provided, further, That if the expenses in any year are 
less than the maximum amount permissible, the difference Shall not 
be availed of as additional expenses in the following years, 
SEC. 4. Section 28 of Republic Act No. 1161, as amended, is hereby 
further amended to read as follows: 
"Sec. 28. Penal Clause. - (a) Whoever, for the purpose of causing 
any payment to be made under this Act, or under an agreement 
thereunder, where none is authorized to be paid, shall make or 
cause to be made false statement or representation as to any 
compensation paid or received or whoever makes or causes to be 
made any false statement of a material Fact in any claim for any 
benefit payable under this Act, or application for loan with the SSS, 
or whoever makes or causes to be made any false statement, 
representation, affidavit or document in connection with such claim 
or loan, shall suffer the penalties provided for in Article One 
hundred seventy-two of the Revised Penal Code. 
"(b) Whoever shall obtain or receive any money or check under this 
Act or any agreement thereunder, without being entitled thereto 
with intent to defraud any member, employer or the SSS, shall be 
fined not less than [five] FIFTY thousand pesos [(P5,OOO.OO)] 
P50,OOO.OO nor more than [twenty] TWO HUNDRED thousand 
pesos [(P20,OOO.OO)] P200,OOO.OO and imprisoned for not less than 
six (6) years and one (1) day nor more than twelve (12) years. 
"(c) Whoever buys, sells, offers for sale, uses, transfers or takes or 
gives in exchange, or pledges or gives in pledge, except as 
authorized in this Act or in regulations made pursuant thereto, any 
stamp, coupon, ticket, book or other deVice, prescribed' pursuant to 
Section Twenty-three hereof by the Commission for the collection 
or payment of contributions required herein, shall be fined not less 
than [five] FIFTY thousand pesos [(P5,OOO.OO)] P50,OOO.OO nor 
more 
than 
[twenty] 
TWO 
HUNDRED 
thousand 
pesos 
[(P20,OOO.OO)] P200,OOO,OO, or imprisoned for not less than six (6) 
years and one (1) day nor more than twelve (12) years, or both, at 
the discretion of the court. 


., , 
"(d) Whoever, with intent to defraud, alters, forges, makes or 
counterfeits any stamp, coupon, ticket, book or other device 
prescribed by the Commission for the collection or payment of any 
contribution required herein, or uses, sells, lends, or has in his 
possession any such altered, forged or counterfeited materials, or 
makes, uses, sells or has in his possession any such altered, 
forged, material in imitation of the material used in the manufacture 
of such stamp, coupon, ticket, book or other device, shall be fined 
not less than [five] FIFTY thousand pesos [(P5,OOO.OO)] P50,OOO.OO 
nor more than [twenty] TWO HUNDRED thousand pesos 
[(P20,OOO.OO)] P200,OOO.OO or imprisoned for not less than six 
years (6) and one (1) day nor more than twelve (12) years, or both, 
at the discretion of the court. 
"(e) Whoever fails or refuses to comply with the provisions of this 
Act or with the rules and regulations promulgated by the 
Commission, shall be punished by a fine of not less than [five] 
FIFTY thousand pesos [(P5,OOO.OO)] P50,OOO.OO nor more than 
[twenty] 
TWO HUNDRED thousand pesos [ 
(P20,OOO.OO)] 
P200,OOO.OO, or imprisonment for not less than six (6) years and 
one (1) day nor more than twelve (12) years, or both, at the 
discretion of the court: Provided, That where the violation consists 
in failure or refusal to register employees or himself, in case of the 
covered self-employed or to deduct contributions from the 
employees' compensation and remit the same to the SSS, the 
penalty shall be a fine of not less Five thousand pesos (P5,OOO.OO) 
nor more than Twenty thousand pesos 
(P20,OOO.OO) 
and 
imprisonment for not less than six (6) years and one (1) day nor 
more than twelve (12) years. 
Xxx 
"(J) WHENEVER THERE IS A DELAY IN THE REMIDANCE OF 
CONTRIBUTION TO THE COMMISSION, THE SAME AMOUNT 
SHALL BE PAID TO THE LADER AND SHALL INCLUDE THREE 
PERCENT (3%) INTEREST PAYMENT MULTIPLIED BY THE 
NUMBER OF MONTHS BY WHICH THE REMIDANCE WAS 
DELAYED." 
SEC. 5. Separability Clause. -If any provision of this Act is declared 
invalid, the other provisions not affected thereby shall remain valid. 
SEC. 6. Repealing Clause. - All laws, proclamations, executive orders, 
rules and regulations or parts thereof inconsistent with this Act are hereby 
repealed, modified or amended accordingly: Provided, That no person shall be 
deemed to be vested with any property or other right by virtue of the enactment 
or operation of this Act. 
SEC. 7. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its complete publication in the Official Gazette or in at least two (2) national 
newspapers of general circulation whichever comes earlier. 
Approved,