Presidential Decree No. 1202 (PD 1202) — Further Amending Republic Act No. 1161 Otherwise Known as Social Security Law.
WHEREAS, under article II, Section 7of the Constitution of
the Philippines,it is the declared policy of the EState to "establish, maintain
and ensure adequate social services in the field of social security to guarantee
the enjoyment by the people of a decent standard of living;"
WHEREAS, in view of the increased membership and judicious
management of funds by the Social Security System, it is now posible for the SSS
to further increase benefits to its members without any new additional
contribution therefor;
WHEREAS, it is likewise necessary to integrate maternity
benefits into the SSS for the better protection of the health and welfare of the
female members of our working population;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
order and decree:
SECTION 1. Section 3 (a) of a Republic Act No. 1161 is
hereby amended to read as follows:
"SEC. 3. Social Security System — (a) To carry out
the purposes of this Act, the Social Security System with principal place of
business in Metro-Manila, Philippines, is hereby created. The SSS shall be
tinder the general supervision of a Social Security Commission composed of the
Secretary of Labor the SSS Administrator and six appointive members, two of whom
shall represent the labor group, two, the management group and two, the general
public, to be appointed by the President of the Philippines. The Chairman of the
Commission shall be designated by the President from among its members. The term
of (he appointive members shall be three years: Provided, That the
terms of the six appointive members shall be one, two, and three years for every
two members, respectively. All vacancies, except through the expiration of the
term, shall be filled for the unexpired term only. The appointive members of the
Commission shall receive two hundred pesos per diem for each meeting actually
attended by them: Provided, that no compensation shall be pair for more
than eight meetings a month."
SEC. 2. Section 12 of Republic Act No. 1161 is hereby
amended to read as follows:
"SEC. 12. Monthly pension—(A) The monthly pension
shall be the sum of the basic monthly amount and the graduated increment.
"(1) Basic Monthly Amount—The basic monthly amount shall be one
hundred fifteen per cent of the sum of the following:
"Forty-five per cent of the first three hundred pesos of the average monthly
salary credit or fraction thereof;
"Twenty-five per cent of the next three hundred pesos of the average monthly
salary credit or fraction thereof;
"Nine per cent of each succeeding one hundred pesos of the average monthly
salary credit or fraction thereof;
"One tenth of one per cent of the average monthly salary credit for each
monthly salary credit for each monthly contribution in excess of one hundred
twenty and paid prior to the semester of contingency."
"(2) Graduated Increment—The graduated increment shall be equal to
seven and seven-tenths per cent of the result obtained by subtracting the basic
monthly amount from three hundred forty pesos Provided, That the
increment shall not be less than ten pesos.
"(B) The monthly pension shall in no case be less than one hundred pesos nor
paid for less than sixty months except to a secondary beneficiary:
Provided, That this monthly pension shall be the new amount of the
monthly pension for surviving pensioners beginning January,
1978."
SEC. 3. Section 12-A of Republic Act No. 1161 is hereby
amended to read as follows:
"SEC. 12-A. Dependent's pension—The dependent's
pension shall be equivalent to ten per cent of the monthly pension for each
dependent child but not exceeding five, beginning with the youngest and without
substitution."
SEC. 4. Section 12-B of Republic Act No. 1161 is hereby
amended to read as follows:
"SEC. 12-B. Retirement benefits—(a) A covered
employee who had paid at least one hundred twenty monthly contributions prior to
the semester of retirement, and who (1) has reached the age of sixty years and
is not receiving monthly compensation of at least three hundred pesos, or (2)
has reached the age of sixty-five years, shall be entitled for as long as he
lives to the monthly pension: Provided, That his dependents born before
his retirement of a marriage subsisting when he was fifty-seven years old shall
be entitled to the defendent's pension.
"(b) A covered member who is sixty years old at retirement and who does not
qualify for pension benefits under paragraph (a) hereof shall be entitled to a
lump sum benegits equal to the total contributions paid by him and on his
behalf, Provided, That he is separated from employment and not
continuing payment of contributions to the SSS on his own.
"(c) The monthly pension and defendent's pension shall be suspended upon the
re-employment of a retired employee who is less than sixty-five years old if
from his employment a monthly compensation of at least three hundred pesos, in
which case, he shall again be subject to section eighteen and his employer to
section nineteenof this Act: Provided, That in the computation of
benefits the period during which he was receiving pension shall not be
counted."
SEC. 5. Section 13 of Republic Act No. 1161 is hereby
amended to read as follows:
"SEC. 13. Death Benefits—Upon the covered
employee's death, his primary beneficiaries shall be entitled to the monthly
pension, and his dependents to the dependents to the dependent's pension:
Provided, That he has paid at least thirty-Six monthly contributions
prior to the semester of death: Provide, further, That if the foregoing
condition is not satisfied or if he has no primary beneficiaries, the death
benefit shall be a lump, sum equivalent to thirty-five times the monthly
pension: Provided, however, That the minimum death benefit shall not he
less than the total contributions paid by him and his employer on his behalf nor
less than one thousand pesos: Provided, finally, That the
covered employee who dies without having paid at least three monthly
contributions shall be entitled to the minimum benefit."
SEC. 6. Section 13-A of Republic Act No. 1161 is hereby
amended to read as follows:
"SEC. 13-A. Permanent disasbility benefits—(a) Upon
the covered employee's permanent total disability, if such disability occurs
after he had paid atleast thirty-six monthly contributions prior to the semester
of disabilty he shall be entitled to the monthly pension and his dependents to
the dependents' pension: Provided, That if the disaabilty occus before
he has paid thirty-six monthly contributions prior to the benefit equivalent to
thirty-five times the monthly pension: Provided, further, That the
minimum disability benefit shall not on his behalf nor less than one thousand
pesos: Provided, furthermore, That a covered employee who becomes
permanently totally disabled without having paid at least three monthly
contributions shall be entitled to the minimum benefit: Provided, finally,
That a member who received a lump sum benefit and (2) is reemployed not
earlier than one year from the date of his disability shall again be subject to
compulsory coverage and considered a new member.
"(b)' The monthly pension and the dependents' pension shall be suspended upon
his re-employment if he receives a monthly compensation of three hundred pesos
or more or his recovery from the permanent total disability, or his failure to
present himself for examination at least once a year upon notice by the SSS:
Provided, That in case of suspension of pension by reason of
re-employment, ho shall again be subject to section eighteen an.I his employer
to section nineteen of this Act: Provided, That, in the computation of
benefits, the period during which he was receiving pension shall not be
counted.
"(c) The following disabilities shall be deemed permanent total:
1. Complete loss of sight of both eye;
2. Loss of two limbs at or above
the ankle or wrist;
3. Permanent complete paralysis of two limbs;
4. Brain
injury resulting in incurable imbecility or insanity; and
5. Such cases as
determined and approved by the SSS.
"(d) If the disability is permanent partial, and such disability occurs
before thirty-six monthly contributions have been paid prior to the semester of
disability, the benefit shall be such percentage of the lump sum benefit
described in the preceding paragraph with flue regard to the degree of
disability as the Commission may determine.
"(f) If the disability is permanent partial, and such disability occurs after
thirty-six monthly contributions have been paid prior to the semester of
disability, the benefit shall be the monthly pension for permanent total
disability payable not longer than the period designated in the following
schedule:
COMPLETE AND PERMANENT
LOSS OF THE USE OF
NUMBER OF
MONTHS
One thumb
8
One index finger
6
One middle finger
5
One ring finger
4
One little finger
2
One big toe
5
Any toe
2
One hand
31
One arm
40
One foot
25
One leg
37
One ear
8
Both ears
16
Hearing of one ear
8
Hearing of both ears
40
Sight of one eye
20
"(f) The precentage degree of disability, which is equivalent to the ratio
that the designated number of months of compensability bears to sixty, shall not
be additive for distinct, separate and unrelated permanent partial disabilities,
but shall be additive for deteriorating and related permanent partial
disabilities, to a maximum of one hundred per cent, in which case the employee
shall be deemed as permanent totally disabled."
SEC. 7. Republic Act No. 1161 is hereby amended by adding a
new section after Section 14 thereof, to read as follows:
"SEC. 14-A. Maternity Leave Benefits—Any female
employee covered under this Act for whom at least three monthly maternity
contributions in the twelve-month period immediately preceding the semester of
her childbirth, abortion, or miscarriage have been paid in accordance with
section eighteen (a) hereof and who is currently employed shall be paid a daily
maternity benefit equivalent to one hundred per cent of her average daily salary
credit for forty-five days subject to the following conditions
:
That the employee shall have notified her employer of her pregnancy and the
probable date of her childbirth which notice shall be transmitted to the SSS in
accordance with the rules and regulations it may provide.
That payment shall be advanced by the employer in two equal installments
within thirty days from the filing of the maternity leave application;
That payment of daily maternity benefits shall be a bar to the recovery of
sickness benefits provided by this Act for the same compensable period
of forty-five days for the same childbirth, abortion, or miscarriage:
That the maternity benefits provided under this Section shall be
paid only for the first four deliveries after March 13, 1973;
That the SSS shall immediately reimburse the employer of one hundred per
centum of the amount of maternity benefits advanced to the employee by the
employer upon receipt of satisfactory proof of such payment and legality
thereof;
That if an employee should Live birth or suffer abortion or miscarriage
without the required contributions having been remitted for her by her employer
to the SSS. or without the latter having been previously notified by the
employer of time of the pregnancy, the employer shall pay to the SSS damages
equivalent to the benefits which said employees would otherwise have been
entitled to, and the SSS shall in turn pav such amount to the employee
concerned.
Provided, however, That for conticontingencies occuring during of
social from January 1, 1978 to June 30, 1978. the payment of social security
contributions shall instead be required for entitlement to maternity
benefits."
SEC. 8. Section 17 of Republic Act No. 1161 is hereby
amended to read as follows:
"SEC. 17. Fee of Agents, Attorneys, Etc.— No agent,
attorney or other person in charge of the preparation, filing or pursuing any
claim or benefit uner this Act shall demand or charge for his service any fee,
and any stipulation to the contrary shall be null and void. The retention or
deduction of any amount from any benefit granted under this Act for the payment
of fees for such services is is prohibited: Provided, however, That any
member of the Philippine Bar who appears as counsel in any case heard by the
Social Security Commission shall be entitled to attorney's fees not exceeding
ten percent of the benefits awarded by the commission, which fees shall not be
payable before the actual payment of the benefits, and any stipulation to the
contrary shall be null and void.
"Any violation of the provisions of this Section shall be punished by a fine
of not less than five hundred pesos nor more than five thousand pesos, or
imprisonment for not less than six months nor more than one year, or both, at
the discretion of the court."
SEC. 9. Section 18(a) is hereby amended by adding a new
paragraph to read as follows:
"The maximum covered earnings or compensation of all SSS members shall be
limited to P1,000 per month as provided in the foregoing schedule
unless otherwise provided for by the Social Security Commission through
rules and regulations taking into consideration actuarial calculations and rate
of benefits."
SEC. 10. Republic Act No. 1161 is hereby amended by adding a
new section after Section 18 thereof, to read as follows:
"SEC. 18-A. Additional Contributions for Maternity
Benefits.— The employer shall remit to the SSS an additional contribution
equivalent to 0.40 of the monthly salary credit of all his employees and if any
contribution is not paid to the SSS as herein prescribed, he shall pay, besides
the contribution, a penalty of 3% per month from the date the contribution falls
due until paid.
"The contribution provided hereunder shall be collected,
administered and disbursed in the same manner, conditions, requirements and
safe-guards us those provided for other funds collected and kept by the
SSS in accordance with this Act and shall be kept separate and distinct from all
such other funds of the SSS."
SEC. 11. Section 22(d) of Republic Act No. 1161 is hereby
amended to read as follows:
''SEC. 22(d). The last complete record of monthly
contributions paid by the employer of the average of the monthly contributions
paid during the past three years as of the date of filing of the action for
collection shall be presumed to be the monthly contributions payable by and due
from the employer to the SSS for each of the unpaid month, unless contradicted
and overcome by other evidence: Provided, That the SSS shall not be
barred from determining and collecting the true and correct contributions due
the SSS even after full payment pursuant to this paragraph, nor shall the
employer be relieved of his liability under section twenty-eight of this Act."
SEC. 12. Section 24(a) of Republic Act No. 1161 is hereby
amended to read as follows:
"SEC. 24(a) Employment Records and Reports — (a)
immediately report to the SSS the names, ages, civil statuses, occupations,
salaries and dependents of all his employees who are subject to compulsory
coverage: Provided, That if an employee subject to compulsory coverage
should die or become sick or disabled or reach the age of sixty without the SSS
having previously received any report or written communication about him from
his employer or a contribution paid his name by his employer, the said employer
shall pay to the SSS damages equivalent to the benefits to which said employee
would have been entitled had his name been reported on time hy the employer to
the SSS, except that in case of pension benefits, the employer shall be liable
to pay the SSS damages equivalent to five years' monthly pension, including
dependents' pension: Provided, further, That if the
contingency occurs within thirty days from the date of employment, the employer
shall be relieved of his liability for damages."
SEC. 13. Section 28(i) of Republic Act No. 1161 is hereby
amended to read as follows:
"(i) Criminal action arising from a violation of the provision of this Act
may be commenced by the SSS or the employee concerned either under this Act or
in appropriate cases under the Revised Penal Code: Provided, That such
criminal action may be filed by the SSS in the city or municipality where the
SSS provincial or regional office is located if the violation was committed
within its territorial jurisdiction or in Metro Manila, at the option of the
SSS."
SEC. 14. Effectivity—This decree shall take effect
on January 1, 1978.
Done in the City of Manila, this 27th day of September, in the year of Our
Lord, nineteen hundred and seventy-seven.
(Sgd.) FERDINAND E. MARCOS
President of the
Philippines
By the President:
(Sgd.) JUAN C. TUVERA
Presidential
Assistant
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
