Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

1544

HOUSE BILL NO.

Introduced by Hon. GABRIEL LUIS R. QUISUMBING

EXPLANATORY NOTE

The Philippines is heavily affected by the prevailing global financial crisis,
with the closure of business enterprises due to reduced capital flows and
shrinking exports caused by depressed consumption in the world economy:
Mass lay-offs are happening left and right, here and abroad.

The State needs to address the plight of displaced workers in this time of
economic crisis, which shows no sign of easing up in the near future.

Social Security is a government program whereby economic assistance is
provided to persons faced with disability or illness, work injury, maternity, old
age, and even death. Various income maintenance programs are designed to
improve the recipient's welfare through public services. In other countries, like
the United States, Australia, United Kingdom and Germany, economic assistance
is also extended to people who are confronted with income losses due to
unemployment,

This bill seeks to amend RA 8282, other wise known as the Social Security
Law, to expand the benefits under the social security system so as to provide for
unemployment or involuntary separation benefits to its member contributors.
The unemployment insurance provision is proposed to give temporary economic
support to those who were separated from work due to reorganization or
otherwise laid-off due to retrenchment or other similar business cecsion

Hence, approval of this bill is earnestly sought. /| )
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Hon. GABRIEL LUIS R. QUISUMBING

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

1544

HOUSE BILL NO.

Introduced by Hon. GABRIEL LUIS R. QUISUMBING

AN ACT EXPANDING THE BENEFITS OF THE SOCIAL SECURITY SYSTEM SO
AS TO PROVIDE FOR UNEMPLOYMENT OR INVOLUNTARY SEPARATION
BENEFITS THEREBY AMENDING FOR THIS PURPOSE, REPUBLIC ACT NO.
8282, AS AMENDED, OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW

Be it enacted by the Senate and House of Representatives in the Philippines in
Congress assembled:

SECTION 1. There shall be added a new section after Section 12-B of Republic Act
No. 8282, to be known as Section 12-C, to read as follows:

“Section 12-C. Unemployment or Involuntary Separation Benefits. -
Unemployment benefits in the form of monthly cash payments equivalent
to fifty percent (50%) of the average monthly compensation shall be paid
to a permanent or regular employee who is involuntarily separated from
the service due to the abolition of his office or position usually resulting
from reorganization or otherwise laid off from work due to retrenchment
or other similar business decision; Provided, That he has been paying
integrated contributions for at least six (6) _months_year prior to
separation. Unemployment benefits shall be paid _in_accordance with the
following schedules:

Contributions Made Benefit Duration

6 months but less than 2 years 2months
2or more years but less than 5 years 3 months
5 or more years but less than 8 years 4 months
8 or more years but less than 10 years 5 months
10 or more years but less than 14 years 6 months

a) The first payment shall be equivalent to two (2) monthly benefits.
Provided, That a seven-day (7) waiting period shall be imposed on
succeeding monthly payments.

b) All accumulated unemployment benefits paid _to the employee
during his entire membership with the SSS shall be deducted from

voluntary separation benefits.



SECTION 2. Implementing Rules and Regulations - The Social Security System
(SSS) shall promulgate the rules and regulations for the effective implementation
of this Act within sixty (30) days from approval hereof.

SECTION 3. Repealing Clause. All laws, decrees, ordinances, administrative
orders, rules and regulations, or any part thereof, which are inconsistent with
this Act are hereby repealed or amended accordingly.

SECTION 4. Separability Clause. Should any provision of this Act be subsequently
declared unconstitutional, the other provisions not so declared shall remain in
full force and effect.

SECTION 5. Bffectivity. This Act shall take effect fifteen (15) days after its

publication in at least two (2) newspapers of general circulation in Filipino and
English.

Approved,