HOUSEOF REPRESENTATIVES
RECENED

Republic of the Philippines pate. 24 AUG 2016
HOUSE OF REPRESENTATIVES| es
Quezon City
SEVENTEENTH CONGRESS

REGISTRATION UIT

First Regular Session
BILLS ano

AEE X San

HOUSE BILL No 3277

Introduced by Honorable Rosenda Ann Ocampo

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. Many jobs are lost or deemed redundant.

‘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, otherwise 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
decision.

Hence, approval of this bill is earnestly sought.

Re IDA ANN OCA\


Republic of the Philippine
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

3277

HOUSE BILL NO

Introduced by Honorable Rosenda Ann Ocampo

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 involuntary 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

tributions kk ix. months _in vr
Unemployment_benefits_shall_be paid in accordance with the following
schedules:
Contributions Made Benefit Duration
6 months but less than 2 years 2 months
2 or more years but less 5 3 months
Sor more years but less than 8 years 4 months

8 or more years but less than 10 years Smonths



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 (60) 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. Effectivity — 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.