FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
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SENATE 
S. No. 
1184 
INTRODUCED BY THE HONORABLE MAR ROXAS 
EXPLANATORY NOTE 
The passage of R.A. Wo. 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." 
From the time 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 1989 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 requested. 


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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
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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 OfRepresentatives of the Philippines in Congress 
assembled: 
SECTION 1. Paragraph (2) of Section 4(b) of Republic Act No. 1161, as amended, is 
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hereby further amended to read as follows: 
"Sec. 4. Powers and Duties ofthe Commiksion andSSS. - (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: 
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"(b) The Social Security Sysrem. - 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 pubIic report to the President of the 
Philippines and to the Congress of the Philippines THROUGH THE MOUSE 
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 
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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, hrther, 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; 
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to read as follows: 
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SEC. 2. Section 18 of Republic Act No. 1161, as amended, is hereby further amended 
"Sec. 18. Employee's ConUibutions. - (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 
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contribution in an amount corresponding to his salary, wage, compensation or 
earnings during the month in accordance with the following schedule: 
SALARY 
BRACKET 
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VI 
VI1 
VI11 
IX 
X 
XI 
XI1 
XI11 
XIV 
XV 
XVI 
XVII 
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RANGE OF 
MONTHLY 
COMPENSATION 
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 
SALARY 
CREDIT 
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 
83.30 210.00 
100.00 252.00 
116.70 294.00 
133.30 336.00 
.I50.00 378.00 
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 
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"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 (Pl,OO0.00) every year thereafter until it shall have 
reached Twelve thousand pesos (P12,OOO.OO) 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 
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through rules and regulations taking into consideration actuarial calculations and rate 
of benefits, subject to the approval of the President of the Philippines.~ 
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to read as follows: 
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SEC 3. Section 25 of Republic Act No. 1161, as amended, is hereby further amended 
"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 sucE;- as 
salaries and wages, supplies and materials, depreciation and the maintenance of 
offices of the SSS: Provided, firrher, 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. 
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to read as follows: 
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SEC. 4. Section 28 of Republic Act No. 1161, as amended, is hereby further amended 
"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 
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be paid, shall make or cause to be made false statement or representation as to any 
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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 
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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 
[(PS,OOO.OO)] 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 [(PS,OOO.OO)] 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 
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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, 
“(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 [(P5,000.00)] 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. 
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“(J) WHENEVER THERE IS A DELAY IN THE REMITTANCE OF CONTRIBUTION 
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TO THE COMMISSION, THE SAME AMOUNT SHALL BE PAID TO THE LATTER 
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AND SHALL INCLUDE THREE PERCENT (3%) INTEREST PAYMENT 
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MULTIPLIED BY THE NUMBER OF MONTHS BY WHICH THE REMITTANCE 
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WAS DELAYED. 
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SEC. 5. SeparabiIity Clause. -If any provision of this Act is declared invalid, the other 
provisions not affected thereby shall remain valid. 
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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. 
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SEC. 7. 
Effectivify Clause. - This Act shall take effect fifteen (15) days after its 
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complete publication in the OfficiaI Gazette or in at least two (2) national newspapers of 
general circulation whichever comes earlier. 
Approved, 
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