THIRTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T E  
5 
MAY -4 
P327 
INTRODUCED BY THE HONORABLE MAR ROXAS 
EXPLANATORY NOTE 
The passage of R.A. No. 1161 on 18 June 1954 marks the establishment of the Social 
i 
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 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, R.A. 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." 
Since the Social Security Act was implemented in 1957 up to 1989, the membership of 
SSS grew at a rate of 15%. Collective data from 1957 to 1959 show that it was the period 
whereby twenty-six (26) contributions were equivalent to one (1) benefit. As of the latest 
data from SSS in 2003, the ratio is one (1) contribution for every (1) benefit. This has been 
the case since 1985. Clearly, the amount of benefits that the SSS provides exceeds the rate of 
growth in the number of new entrants and contributions. 
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 re 


THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
S.B. No. - 
1994 
5 ERY -4 P3:27 
INTRODUCED BY THE HONORABLE MAR ROXAS 
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 
assem bled: 
SECTION 1. Paragraph (2) of Section 4(b) of Republic Act No. 1161, as amended, is hereby 
further amended to read as follows: 
Powers and Duties of the Commission and SSS. - (a) B e  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 ACTUARIAL VALUATION 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, firther, That 
such increases in benefits [shall not require any increase in the rate of contribution] CAN BE 
i 


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; 
xxx 
SECTION 2. Section 18 of Republic Act No. 1161, as amended, is hereby further amended to 
read as follows: 
"Sec. 18. Employee's Conm'butions. - (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 
BRACKET 
COMPENSATION SALARY 
CREDIT 
I 
I1 
I11 
IV 
V 
VI 
VI1 
VI11 
IX 
X 
XI 
XI1 
XI11 
XIV 
XV 
XVI 
XVII 
1,000.00 - 1,249.99 
1,250.00 - 1,749.99 
1,750.00 - 2,249.99 
2,250.00 - 2,749.99 
2,750.00 - 3,249.99 
3,250.00 - 3,749.99 
3,750.00 - 4,249.99 
4,250.00 - 4,749.99 
4,750.00 - 5,249.99 
5,250.00 - 5,749.99 
5,750.00 - 6,249.99 
6,250.00 - 6,749.99 
6,750.00 - 7,249.99 
7,250.00 - 7,749.99 
7,750.00 - 8.249.99 
8,250.00 - 8,749.99 
8,750.00 - OVER 
1000 
1500 
2000 
2500 
3000 
3500 
4000 
4500 
5000 
5500 
6000 
6500 
7000 
7500 
8000 
8500 
9000 
MONTHLY CONTRIBUTION 
EMPLOYER EMPLOYEE TOTAL 
50.70 
76.00 
101.30 
126.70 
152.00 
177.30 
202.70 
228.00 
253.30 
278.70 
304.00 
329.30 
354.70 
380.00 
403.30 
430.70 
456.00 
33.30 
84.00 
50.00 126.00 
66.70 168.00 
100.00 252.00 
116.70 294.00 
133.30 336.00 
150.00 378.00 
166.70 420.00 
183.70 462.40 
200.00 504.00 
216.78 546.00 
233.30 588.00 
250.00 630.00 
266.70 672.00 
283.30 714.00 
300.00 756.00 
83.30 210.00 
d 
"The foregoing schedule of contribution shall also appIy to self-employed and voluntary 
members. 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,OOO.OO) effective 
January Nineteen hundred and ninety six (1996); Provided, That it shall be increased by One 
thousand pesos (P1,OOO.OO) every year thereafter until it shall have reached Twelve thousand 


pesos (P12,OOO.OO) by Nineteen hundred and ninety nine (1999): Provfded, fizrther, That the 
minimum and maximum monthly salary credits as well as the rate of contributions may be 
fwed 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. 
SECTION 3. Section 25 of Republic Act No. 1161, as amended, is hereby further amended to 
read as follows: 
"SEC. 25. Deposits andDisbumexnents. -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 [(129'0)] (8%) of 
the total yearly contributions plus three percent (3%) of other revenues shall be disbursed for 
operational expensks such as salaries and wages, supplies and materials, depreciation and the 
maintenance of offices of the SSS: Provided, firthe& 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. 
SECTION 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 [(P5,000.00)] P50,OOO.OO nor 
more than [twenty] TWO HUNDRED thousand pesos [(P20,000.00)] 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 I(P5,OOO.OO)J 
P50,OOO.OO nor more than [twenty] TWO HUNDRED thousand pesos [(P20,000.00)] 
P200,000.00, 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 [(P5,000.00)] P50,OOO.OO nor more than [twenty] TWO 
HUNDRED thousand pesos [(P20,000.00)] 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. 
P 
“(e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and 
regulations promulgated by the Commissiorl, shall be punished by a fine of not less than 
[five] FIFTY thousand pesos [(P5,000.00)] P50,OOO.OO nor more than [twenty] TWO 
HUNDRED thousand pesos [(P20,000.00)] P200,000.00, 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. 
I 
xxx 
“(J) WHENEVER THERE IS A DELAY IN THE REMITTANCE OF CONTRIBUTION TO 
THE COMMISSION, THE SAME AMOUNT SHALL BE PAID TO THE LATTER AND 
SHALL INCLUDE THREE PERCENT (3%) INTEREST PAYMENT MULTIPLIED BY THE 
NUMBER OF MONTHS BY WHICH THE REMITTANCE WAS DELAYED. 
SECTION 5 .  Separabiliv Clause. - If any provision of this Act is declared invalid, the other 
provisions not affected thereby shall remain valid. 
SECTION 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. 
SECTION 7. Effecriviq Clause. -This Act shall take effect fifteen (15) days after its complete 
publication in the OfficiaI Gazette or in at least two (2) national newspapers of general 
circulation whichever comes earlier. 
Approved,