FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 667 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The passage of RA 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, 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." 
Th'is 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 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 66'7 
>1" ;, 
, t)f:F~CE ,~;~..: ~~ i ' 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
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<'~Cl- Sii: e\nv 
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 
p'rogram 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; 
xxx 
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 
CREDIT 
EMPLOYER 
EMPLOYEE 
TOTAL 
I 
1,000.00 - 1,249.99 
1000 
50.70 
33.30 
84.00 
II 
1,250.00 - 1,749.99 
1500 
76.00 
50.00 
126.00 
III 
1,750.00 - 2,249.99 
2000 
101.30 
66.70 
168.00 
IV 
2,250.00 - 2,749.99 
2500 
126.70 
83.30 
210.00 
V 
2,750.00 - 3,249.99 
3000 
152.00 
100.00 
252.00 
VI 
3,250.00 - 3,749.99 
3500 
177.30 
116.70 
294.00 
VII 
3,750.00 - 4,249.99 
4000 
202.70 
133.30 
336.00 
VIII 
4,250.00 - 4,749.99 
4500 
228.00 
150.00 
378.00 
IX 
4,750.00 - 5,249.99 
5000 
253.30 
166.70 
420.00 
X 
5,250.00 - 5,749.99 
5500 
278.70 
183.70 
462.40 
XI 
5,750.00 - 6,249.99 
6000 
304.00 
200.00 
504.00 
XII 
6,250.00 - 6,749.99 
6500 
329.30 
216.78 
546.00 
XIII 
6,750.00 - 7,249.99 
7000 
354.70 
233.30 
588.00 
XIV 
7,250.00 - 7,749.99 
7500 
380.00 
250.00 
630.00 
XV 
7,750.00 - 8.249.99 
8000 
403.30 
266.70 
672.00 
XVI 
8,250.00 - 8,749.99 
8500 
430.70 
283.30 
714.00 
XVII 
8,750.00 - OVER 
9000 
456.00 
300.00 
756.00 
"The foregoing schedule of contribution shall also apply 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 (PI,OOO.OO) every year 
thereafter until it shall have reached Twelve thousand pesos (P12,OOO.OO) by 
Nineteen hundred and ninety nine (1999): Provided, fwther, 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 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. 
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,