RECEIVED
parc: 03 AUG 2016
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17™ CONGRESS

First Regular Session QFRISTRATON UNIT
WALLS AND INDEX SERVICE

=
HOUSE BILL NO. 2505

Introduced by ABONO REPRESENTATIVES,
VINI NOLA A. ORTEGA and CONRADO M. ESTRELLA III

EXPLANATORY NOTE

Since time immemorial, our small farmers and farmworkers have tirelessly toiled
long days under the heat of the sun, braved numerous typhoons, and displayed
resilience during droughts and other natural and man-made calamities in order to
ensure that every Filipino has food to eat in their tables at home. They are our unsung
heroes. Their painstaking efforts and valuable contributions to our country and the
Filipino people deserve a long overdue recognition. It is high time that the plight of our
small farmers and farmworkers be alleviated through social legislation in line with
President Rodrigo R. Duterte’s policy statement of having sustainable development of
the agriculture sector throughout the country. In return to their sacrifices and
unparalleled contributions, this measure is hereby proposed for their mandatory
coverage under Republic Act No. 8282, otherwise known as the Social Security System
(Sss) Law.

According to the Philippine Statistics Authority (PSA), the Philippines has a total
land area of about 30 million hectares and approximately 9.67 million hectares of which
are classified as agricultural. The agricultural land area represents 32.22% of the total
land area of the country. This explains why the data from the May 2014 Quick Stat show
that in January 2014, in terms of employment, the agriculture sector takes up 10.93
million persons out of the total 36.42 million workforce which accounts to 30% of the
total employment.



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Farmers are among those who consistently posted highest poverty incidences
among the nine basic sectors* (i.e. fishermen, farmers, youth, children, women, migrant
and formal sector, self-employed, senior citizens, and individual in urban areas) in the
Philippines as of 2012 at 38.3%.

Farmers (as per survey conducted by the PSA) refer to employed individuals 15
years old and over whose primary occupation is farming, plant growing, or animal
production.

‘As of 2002-2003 based from data provided by the Bureau of Agricultural Statistics
of the Philippine Statistics Authority, the average annual income per farm household
arising solely from farming is PhP57,628.00, excluding income from other sources (e.g.
pensions, remittances from abroad, donations, contributions, etc.) The last update is
August 2011.

According to PhilRice Executive Director Eufemio Erasco, a rice farmer’s average
income ranges from P25,000 to P30,000 per planting season, or P50,000 to P60,000 a
year. This is below the P80,000 annual rural poverty threshold.”

Considering the figures mentioned above, our farmers need now more than ever
legislative measures alleviating their plight from their present state. A step towards this
direction is by providing mandatory coverage under the SSS through the assistance of
the local government units to which our farmers belong.

Social security covers the people’s need for social protection. Thus, it forms an
integral part of social legislation. It offers benefits for all circumstances, like birth,
sickness, accident, disability, old age or death. in the beginning, social protection only
focused on occupations and the benefits can be availed of only after an occurrence of a
defined event.

It must be pointed out that RA 8282 (SSS Law) only covers an individual farmer
while RA 7607 (Magna Carta for Small Farmers) only generally provides for the right of
farmers to be covered by social security. The said laws are not fully implemented and
are in fact, inadequate to truly and mandatorily cover our small farmers and farm
workers for SSS benefits.

' Basic sectors are not mutually exclusive, i.e, there are overlaps for sectors (women may also be
counted as senior citizens, farmers, etc.)

2 http://busi

r-net/167544/govt-urged-to-take-ir »s-of- farmers

fishers; last accessed 5:47pm, 29 June 2016.



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Under this measure, small farmers’ and farm workers’ social security is based on
the principle of compulsory coverage. This means that the coverage relationship is
established automatically, as soon as an insurable activity is commenced and the
covered member is duly identified and registered in the Book of Registry of small
farmers and farm workers of the SSS, through the assistance of the city/municipal
agriculture office to establish the legitimacy of said covered members.

Compulsory membership implies that the coverage under this measure does not
result from a voluntary application, as in the above-mentioned laws, but from the
existence of certain conditions as defined by law (e.g.: entering employment status,
starting a self-employed activity). Thus, compulsory coverage is established without
declaration of intent on the part of the covered member. The covered member/farmer
shall personally register under the SSS upon meeting the requirements determined
below. Entering the coverage scheme is independent of prior registration or payment of
contributions. This provides for a system consisting of another category of members
(small farmers/farm workers) other than that already enumerated under the SSS Law.

Ultimately, this measure provides that social security benefits and/or services are
applied equally for all, irrespective of position and standing in society. The idea behind
this is to place farmers in equal footing with other employees in the objective that
everyone shall be protected by social security in the same and best possible means. In
this way, the social aspect of the statutory social security system can be realized
especially with respect to our small farmers and farm workers.

My dear colleagues, let us truly empower our small farmers and farm workers by
actively supporting this measure and we respectfully seek your valuable assistance for
the immediate passage thereof to give true meaning, life and spirit of the said earlier
laws enacted which are the subject of amendment of this undertakigg.

VINI NOLA A. ORTEGA

Representative
ABONO Party-list ‘ABONO Party-list



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17™ CONGRESS
First Regular Session

.
House BILL No, 2905

Introduced by ABONO REPRESENTATIVES
VINI NOLA A, ORTEGA AND CONRADO M. ESTRELLA II1

AN ACT
ESTABLISHING MANDATORY COVERAGE IN THE SOCIAL SECURITY SYSTEM (SSS)
OF SMALL FARMERS AND FARMWORKERS, AMENDING FOR THE PURPOSE
SECTIONS 9(a), 9-A(5) and 10 OF REPUBLIC ACT NO. 8282 AND SECTIONS 8(3)
AND 23(9) OF REPUBLIC ACT NO. 7606, AND FOR OTHER PURPOSES

SECTION 1. Sections 9(a), 9-A (5) and 10 of Republic Act No. 8282 (Social Security Law),
are hereby amended to read as follows:

X00 XXX XXX

“SEC. 9. Coverage. - (a) xxx, including small farmers and farmworkers,:

“SEC. 9-A. xxx, small farmers and farmworkers. — x0, smal! farmers and farmworkers,
200:

XXXX OOK XXX
"S. All small farmers and farmworkers as defined in Republic Act No. 7607 xxx.” Xxxx

"SEC. 10. Effective Date of Coverage. — xxx Provided, That the compulsory coverage of
the xxx, small farmers and farmworkers as defined in RA 7607, xxx.”


SEC. 2. Sections 8 (3) and 23 (9) of Republic Act No. 7607 (Magna Carta for Small
Farmers), are amended to read as follows:

“Sec. 8. Farmers’ Rights. — The farmers have the right to:
Xv XXX XXXX;

(3) Be mandatory covered by social security to serve as protection from event such as
calamities, death, sickness and disability;

“Sec. 23. Incentives. — xxxx
Xxx 2K bood

(9) Farmers’ mandatory insurance coverage by the Social Security System subject to its
charter shall be extended to small farmers and farmworkers; and xxx”

SEC. 3. Determination of Legitimate Covered Members. — The SSS Commission, upon
endorsement by the Municipal Agriculture Office (MAO) of every locality shall submit
the verified certified list of legitimate small farmers and farm workers within the area of
his jurisdiction, accompanied by a verified certification as to the occupation and annual
aggregate family income by the city/municipal social welfare officer of the same locality
as part of the validation process.

For this purpose, the SSS shall have its Registry Book of small farmers and
farmworkers which shall contains the basic personal information of the said persons,
such as complete name, complete permanent residential address, date of birth,
occupation, date of registration and beneficiaries, and others to establish the legitimacy
and entitlement of the covered member, as part of its records.

To attain compulsory and widest coverage and give significance of this Act to fully
implement its purpose, the SSS shall schedule the conduct of its series caravan for the
registration of the covered members in every legislative district nationwide.

Sec. 4. Monthly Contribution Premium and Sources of Funding. — The SSS shall
compute and provide the affordable, practical and reasonable monthly contribution
premium of the covered members, taking into consideration the certification made
under oath by the city/municipal social welfare officer as to the occupation and annual
aggregate family income of the covered member.


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The 50% monthly payment of premiums shall be covered under the Subsidy
Program of the SSS and the remaining 50% shall be subsidized by the local government
units (LGUs) concerned where such Small Farmer and/or Farmworker resides and is
registered. The LGUs’ Budget for Social Funds and/or General Purpose Fund shall
provide subsidy of said monthly payment of premiums.

Provided, that in the case of fourth, fifth and sixth class LGUs, the National
Government shall provide the fifty percent (50%) subsidy for the said covered members
for a period of ten (10) years and the other 50% by the Subsidy Program of the SSS.

This subsidy program shall cover 100% of the premiums to be paid per covered
member from the date of effectivity of coverage up to ten (10) years thereafter.

After the tenth (10") year, the Small Farmer and/or Farmworker shall contribute
5% of the monthly contribution premium. For every year thereafter, the contribution of
the Small Farmer and/or Farmworker shall be increased by 5%. The maximum amount
of the increase in contribution shall not exceed 50%, meaning that the incremental
increase shall cease on the tenth (10") year following the tenth anniversary of coverage.
Thereafter, the share in contributions of the Small Farmer and/or Farmworker and the
LGU concerned or the National Government for fourth, fifth, and sixth class LGUs shall
be on a 50%-50% basis, respectively.

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: