THE PHILIPPINE SOCIAL SECURITY LAW by the law pursuant to the policy of the State to

Legal Basis: R.A. 1161, R.A. 8282, R.A. 11199 or the provide social security to the workingman. The
“Social Security Act of 2018” benefits are specifically declared not
transferable and exempt from tax, legal
RATIONALE BEHIND THE ENACTMENT OF THE SOCIAL processes and liens. (SSS vs. Davac, et. al., G.R.
SECURITY LAW No.21642, July 30, 1966)
EXCEPTION: The estate may basically
Section 2. Declaration of Policy. - It is the policy of the
become the “beneficiary” when:
State to establish, develop, promote and perfect a
sound and viable tax-exempt social security system
suitable to the needs of the people throughout the o The beneficiary is the estate itself;
Philippines which shall promote social justice through o No beneficiary was expressly
savings, and ensure meaningful social security designated; or
protection to members and their beneficiaries against o If the designation of the beneficiary is
the hazards of disability, sickness, maternity, old age, void.
death, and other contingencies resulting in loss of
income or financial burden. Towards this end, the State - Tax exempt. Its purpose is not for raising
shall endeavor to extend social security protection to
revenues. (Cons Estate vs. SSS)
Filipino workers, local or overseas, and their
beneficiaries.
- The funds contributed to the System belong to the
In the pursuit of this policy, a social security program members who will receive benefits, as a matter
shall be developed emphasizing the value of "work, of right, whenever the hazards provided by the
save, invest and prosper". The maximum profitability of law occur.
investible funds and resources of the program shall be
ensured through a culture of excellence in management - Funds herein are private funds which belongs to
grounded upon sound and efficient policies employing the members and are merely held in trust by the
internationally recognized best practices. government. (Roman Catholic Archbishop of
Manila vs. SSC)
VALIDITY OF THE SOCIAL SECURITY LAW

The enactment of the Social Security Law is a legitimate

exercise of police power. It is in full accord with the WHO ARE CONSIDERED AS EMPLOYERS
constitutional provisions on the “promotion of social AND EMPLOYEES UNDER SEC. 8, R.A. 11199
justice to insure the well-being and economic security of
EMPLOYER EMPLOYEE
all the people.” (Roman Catholic Archbishop of Manila
vs. SSC) Any person, natural or Any person who
juridical, domestic or performs services for
IMPORTANT PRINCIPLES TO REMEMBER foreign, who carries on an employer in which
in the Philippines any either or both mental
- Construed liberally in favor of those seeking its trade, business, or
benefits. (Franklin Baker Co. vs. SSS) industry, physical efforts are
undertaking, or used and who
- Not a law of succession. It is not the heirs of the activity of any kind receives
employee but the DESIGNATED BENEFICIARIES and uses the services compensation for
who are to receive the social security benefits. of another such services, where
(Tecson vs. SSS, 3 SCRA 735) person who is under there is an
his orders as regards employer-employee
the employment. relationship.
- Not part of the estate of a member. Benefits
receivable under the SSS Law are in the nature
of a special privilege or an arrangement secured
OBLIGATION TO PAY
PREMIUMS/CONTRIBUTIONS - Employee
- Employer
Except: Provided, That a
Government and self-employed - Self-employed
any of its political person shall be
subdivisions, both employee Note: Under Sec. 24e of RA 11191, the law requires the
branches or and employer at presentation of the Social Security Number of a person
instrumentalities, the same time. as a condition for employment. This social security
number will become yoursto keep and once you
become a member of the SSS, you will always be a
member for life.
including
corporations COVERAGE
owned or Sec. 9, RA 11199
controlled by the
Government; (a) Coverage in the SSS shall be compulsory upon all
Provided, That a employees including kasambahays or domestic
workers not over sixty (60) years of age and
self-employed
their employers: Provided, That any benefit
person shall be
already earned by the employees under private
both employee
benefit plans existing at the time of the
and employer at
approval of this Act shall not be discontinued,
the same time.
reduced or otherwise impaired: Provided,
further, That private plans which are existing
and in force at the time of compulsory coverage
shall be integrated with the plan of the SSS in
Well-settled is the rule that the mandatory coverage of such a way where the employers contribution
RA 1161, as amended, is premised on the existence of to his private plan is more than that required of
an employer-employee relationship. (Co vs. People, him in this Act, he shall pay to the SSS only the
2009) contribution required of him and he shall
continue his contribution to such private plan
CONTINGENCIES (when the right to avail of the less his contribution to the SSS so that the
benefits under the law arises) employer’s total contribution to his benefit plan
and to the SSS shall be the same as his
- Disability contribution to his private benefit plan before
- Sickness/Injury the compulsory coverage: Provided, further,
- Maternity That any changes, adjustments, modifications,
- Retirement eliminations or improvements in the benefits to
- Death be available under the remaining private plan,
- Other contingencies resulting in loss of income or which may be necessary to adopt by reason of
financial burden. (Sec. 2) the reduced contributions thereto as a result of
the integration, shall be subject to agreements
SOCIAL SECURITY SYSTEM VS. EMPLOYEES between the employers and employees
COMPENSATION PROGRAM concerned: Provided, further, That the private
benefit plan which the employer shall continue
SSS ECC for his employees shall remain under the
employer‘s management and control unless
Contingencies may Contingencies must
there is an existing agreement to the contrary:
not be work- be work-related.
Provided, finally, That nothing in this Act shall
related.
be construed as a limitation on the right of
employers and employees to agree on and
adopt benefits which are over and above those
provided under this Act. (underscoring supplied)
SELF-EMPLOYED Compulsory
PERSONS (Sec. 9-A)
WHO ARE COVERED UNDER SEC. 9, RA 11199
Covered Type of Exception Such as, but not
coverage limited to:

ALL EMPLOYEES Compulsory (a) All self

including employed
kasambahays or professionals;
domestic workers
who are NOT over 60 (b) Partners
years old; and
and single
proprietors of
Their employers.
businesses;
[Sec. 9(a)]
(c) Actors and
SPOUSES who devote Voluntary Engaged in
actresses,
directors,
scriptwriters
FULL TIME to other and news
managing the vocation or correspondents
household and employme who do not fall
family affairs [Sec. nt which is within the
9(b)] subject to definition of
mandatory the term
coverage "employee" in
Section 8(d) of
this Act;

(d) Professional
athletes,
coaches,
trainers and
jockeys; and

(e) Individual
farmers and
fishermen.

OVERSEAS FILIPINO Compulsory

WORKERS (OFW),
whether sea-based or
land-based, who are
NOT over 60 years
old.

Covered OFWs shall enjoy all the benefits under the law.

Note: Under the old law, OFWs are not compulsorily

covered.
CIVIL LIABILITY; SOLIDARY LIABILITY OF MANNING separation. However, the member employee shall be
AGENCIES OF SEA-BASED OFW credited with all the contributions paid on his behalf and
remain entitled to the benefits and privileges available,
As to sea-based OFWs, their manning agencies are as long as the member employee meet the necessary
deemed agents of their principals and are considered, in qualifying conditions set forth by the SSS.
the eyes of the law, as their employers. These manning
agencies are jointly and severally liable with their This time, the member may opt to continue paying the
principals with respect to civil liabilities incurred for any total contributions as a voluntary member to maintain
violation of RA 11199. (Sec.9-B) his right to full benefits.

CRIMINAL LIABILITY OF MANNING AGENCIES OF SEA What happens if the member is re-employed with the
BASED OFW private sector?
The member can stop paying as a voluntary member
The persons having direct control, management or and resume payment of contributions as an employee
direction of the manning agencies shall be held of his new employer.
criminally liable for any act or omission penalized under
this Act notwithstanding Section 28(f) hereof. What if the member is re-employed with the
(Sec.9-B) government (where he will be covered by another
system: GSIS)?
LAND-BASED OFW The member is given an option to continue paying
Treated in the same manner as “self-employed persons”. contributions to the SSS as a voluntary member so that
Exception: Bilateral social security and labor agreements he may enjoy social security benefits under BOTH
by the Philippine government with their host countries systems.
ensuring payment of SSS contributions.

EFFECT OF TERMINATION OF EMPLOYMENT OVERSEAS EFFECT OF INTERRUPTION OF BUSINESS OR

The OFWs may opt to continue to pay contributions on PROFESSIONAL INCOME
a voluntary basis to maintain their rights to full benefits If the self-employed member realizes no income in any
under SSS law. given month, he shall not be required to pay
contributions for that month. He may, however, be
EFFECTIVE DATE OF COVERAGE allowed to continue paying contributions under the
same rules and regulations applicable to a separated
employee member: Provided, That no retroactive
When will the compulsory coverage start? (Sec. 10) payment of contributions shall be allowed other than as
EMPLOYER First day of operation prescribed under Section 22-A hereof. (Sec. 11-A)

EMPLOYEE First day of work Note: Should the member misrepresent as to

declaration of no income, he may incur criminal liability.
SELF-EMPLOYED Upon registration
with SSS DEPENDENTS
1. Legal spouse entitled by law to receive support
from the member;
EFFECT OF SEPARATION FROM EMPLOYMENT When an 2. Legitimate, legitimated or legally adopted, and
employee under compulsory coverage is separated illegitimate child who is unmarried, not
from employment, his employer’s contribution on his gainfully employed, and has:
account and his obligation to pay contributions arising - not reached twenty-one (21) years of age, or - if
from that employment shall cease at the end of the over twenty-one (21) years of age, he is
month of separation, but said employee shall be congenitally or while still a minor has been
credited with all contributions paid on his behalf and permanently incapacitated and incapable of self
entitled to benefits according to the provisions of this support, physically or mentally; and
Act. He may, however, continue to pay the total 3. Parent who is receiving regular support from
contributions to maintain his right to full benefit. (Sec. the member.
11) BENEFICIARIES
Note: After separation from employment, the
employer’s obligation to pay their share in the SSS PRIMARY BENEFICIARIES
contribution ceases at the end of the month of
1. Dependent spouse until he or she remarries; the employer. Employer will report to the SSS
and pay you your benefit. The employer will just
2. Dependent legitimate, legitimated or legally be reimbursed by the SSS. Notice must be given
adopted, and illegitimate children; within 5 calendar days after the start of
confinement.
Note: The dependent illegitimate children shall be
entitled to 50% of the share of the legitimate, RETIREMENT BENEFITS (Sec. 12-B)
legitimated or legally adopted children. However, in the
absence of the dependent legitimate or legitimated
children of the member, his/her dependent illegitimate Retirement benefit is a cash benefit either monthly
children shall be entitled to 100% of the benefits. pension or lump sum period paid to a member who
can no longer work due to old age.
SECONDARY BENEFICIARIES
1. Dependent parent, in the absence of the primary Two Types of Retirement Benefits
beneficiaries; Monthly Pension Lump Sum
2. Any other person designated by the member as Lifetime cash benefit Granted to those who
his/her secondary beneficiary, in the absence of paid to a retiree who has not paid the
all the foregoing primary beneficiaries and
dependent parents. has paid at least 120 required 120 monthly
monthly contributions contributions. This is
BENEFITS prior to the semester equal to the total
They are not transferable. When the person entitled to of retirement. contributions paid by
receive them is unavailable to receive his/her benefits, the employer
he/she cannot delegate another person to receive them including interest.
in his/her place. Another person can only be authorized
to receive the benefits if the person entitled is physically
incapacitated.
Provided, that he shall have the option to receive his
SOCIAL SECURITY BENEFITS first 18 monthly pensions in lump sum discounted at
1. Sickness preferential rate of interest to be determined by SSS.
2. Maternity Leave
3. Retirement NOTE: A covered member who is 60 years old at
4. Unemployment Insurance or Involuntary
Separation retirement and who does not qualify above, shall be
5. Disability entitled to a lump sum benefit equal to the total
6. Death contributions paid by him and on his behalf.
7. Funeral Provided, he is:
1. Separated from employment; and
2. Not continuing payment of contributions on his
SICKNESS BENEFIT (Sec.14) own.

The sickness benefit is a daily cash allowance paid for Retirement of Underground
the number of days a member is unable to work due
to sickness or injury. Mineworkers Entitled to retirement benefits
if he has:
Eligibility 1. Reached the age of 60 yrs old whether

1. Member has paid at least 3 monthly contributions employed or not

in the 12-month period immediately preceding 2. Reached 55 yrs old and is an underground
the semester of sickness or injury; mineworker for at least 5 yrs
2. Confined for more than 3 days in the hospital or a. continuous or accumulated, and
elsewhere with the approval of the SSS; b. has paid at least 120 monthly
3. Notice of the fact or sickness of the employee to contributions
Q: What happens if a retired member dies? Primary UNEMPLOYMENT INSURANCE OR INVOLUNTARY
beneficiaries shall be entitled to receive monthly SEPARATION (Sec. 14-B)
pensions. A member, who is not over 60 years old who has
paid at least 36 monthly contributions, 12 months of
If he has no primary beneficiaries and he dies within which should be in the 18-month period
60 months from the start of monthly pension, his immediately preceding the involuntary
secondary beneficiaries shall be entitled to a lump unemployment or separation, shall be paid:
sum benefit equivalent of the total monthly
pensions corresponding to the balance of the 5-year Monthly cash payments equivalent to 50% of the
guaranteed period. Excluding the dependents average monthly salary credit for a maximum of 2
pension. months, provided that;
1. He can only claim benefits once every 3 years,
MONTHLY PENSION (Sec. 12) and
Amount of Monthly Pension 2. In case of concurrence of two or more
1. The sum of P300 plus twenty percent (20%) of compensable contingencies, only the highest
the average monthly salary credit (AMSC) plus benefit shall be paid.
two percent (2%) of the AMSC for each
credited year of service (CYS) in excess of ten DISABILITY BENEFITS
(10) years; or
2. Forty percent (40%) of the AMSC; or Permanent Total Disability (Sec. 13-A)
3. P1,000 if the member had less than ten (10) A member who has paid at least 36 monthly
CYS; P1,200 if with at least ten (10) CYS; or contributions prior to the semester of disability shall
P2,400 if with at least twenty (20) CYS. be entitled to monthly pension. Provided:
1. If he has not paid the required contributions, he
Note: Average monthly salary credit – the result shall be entitled to:
obtained by dividing the sum of the last 60 monthly ▪ Lump sum benefit equivalent to
salary credits immediately preceding the semester of
monthly pension times the
contingency by 60, or the result obtained by dividing
number of monthly contributions
the sum of all the monthly salary credits paid prior to
the semester of contingency by the number of monthly paid to the SSS; or 12 times the
contributions paid in the same period, whichever is monthly pension, whichever is
greater. higher.

Additional Monthly Benefit Allowance If a person decides to reemploy, he shall again be

Additional P1000 shall be given to all retirement, subject to compulsory coverage and shall be
death, and disability pensioners receiving monthly considered a new member.
pensions in or after January 2017.
What if the pensioner with permanent total
Dependents’ Pension (Sec. 12-A) disability dies?
In the event that the pensioner had died, had Primary beneficiaries shall be entitled to receive the
permanent total disability or had retired, the monthly pension. Provided; If he has no primary
dependents shall be paid 10% of the monthly beneficiaries, if he has no primary beneficiaries and
pension or P250, whichever is higher. he dies within 60 months from the start of monthly
pension, his secondary benefits shall be entitled to a
This shall be paid for each dependent child born on lump sum benefit equivalent of the total monthly
or before the contingency but not exceeding 5, pensions corresponding to the balance of the 5- year
beginning with the youngest and without guaranteed period excluding the dependents
substitution. Legitimate children are preferred. pension.
What disabilities are deemed permanent Amount of Benefits
total? 1. Complete loss of sight of both eyes; The monthly pension depends on the member’s paid
2. Loss of two limbs at or above the ankle or contributions including the credited years of service
wrists; and the number of dependent minor children but
3. Permanent complete paralysis of two limbs; 4. not to exceed 5.
Brain injury resulting to incurable imbecility or Note: If a deceased member is survived by less than
insanity; and 5 minor legitimate, legitimated, or legally adopted
5. Such cases deemed and approved by SSS. children, the illegitimate minor children will be
entitled to 50% of the share of legitimate,
Permanent Partial Disability (Sec. 13-A) legitimated, or legally adopted children in the basic
pension and 100% of the dependents’ pension.
Before 36 Monthly After 36 Monthly
Contributions Contributions
If there are no legitimate, legitimated, or legally
Percentage of the Monthly pension for adopted children, the illegitimate children shall be
lump sum benefit. permanent total entitled to 100% of the basic pension.
disability payable not
longer than the The entitlement to benefits as a primary beneficiary
period designated by requires not only legitimacy but also dependence
law. upon the member

FUNERAL BENEFIT (Sec. 13-B)

If a person who is on partial disability retire or dies, Amount: Funeral grant is equivalent to P12,000 paid
his disability pension shall cease upon his retirement in cash or kind.
or death.
Qualification of Spouse-Beneficiary
DEATH BENEFITS (Sec. 13) Must have been legally married to the retiree
pensioner at the time of death.
Death Benefit is a cash benefit either in monthly If the marriage was celebrated after the retirement
pension or lump sum paid to the beneficiaries of a of the member, any of the following circumstances is
deceased member. present:
- The spouses were living together as husband and
Types of Death Benefits wife without legal impediment to marry each
other prior to the retirement of the member;
Monthly Pension Lump Sum
or
Granted only to the Granted to primary - The surviving spouse was reported as beneficiary-
primary beneficiaries beneficiaries of a spouse in the SSS Forms prior to the
of a deceased deceased member retirement of the member; or
member who had who had paid less - A child was born during the existence of the
paid 36 monthly than 36 monthly marriage between the retiree-pensioner and
contributions before contributions before the surviving spouse; or
the semester of the semester death. - Before marriage, a child was born during the time
death. The secondary the spouses were living together as husband
beneficiaries shall be and wife without legal impediment to marry
entitled to a lump each other; or
sum. - The marriage between the surviving spouse and
retiree-pensioner is established to have been
contracted not for any fraudulent purpose. In
this regard, the SSS Branch concerned shall
conduct an appropriate investigation to satisfy divorces. It did not sever her marriage ties with
this requirement. Antonio. Nonetheless, although Gloria was the legal
Must have been dependent for support upon the spouse of the deceased, she is still disqualified to be
retiree-pensioner during the existence of marriage his primary beneficiary under the SSS Law. She fails to
(SSS Office Order No. 2010-02). fulfill the requirement of dependency upon her
deceased husband Antonio (SSS v. De Los Santos,
If a wife is already separated de facto from her G.R. No. 164790, Aug. 29, 2008).
husband, she cannot be said to be "dependent for
support" upon the husband, absent any showing to Q: Rodolfo, an SSS member, was survived by the
the contrary. Conversely, if it is proved that the following: his legal wife Editha, who was now
husband and wife were still living together at the cohabiting with another man; another wife Yolanda,
time of his death, it would be safe to presume that whom Rodolfo married and had four illegitimate
she was dependent on the husband for support, children now over 21 years old; and another
unless it is shown that she is capable of providing for common law wife, Gina, with whom he had two
herself (SSS vs. Aguas, G.R. No. 165546, Feb. 27, illegitimate minor children. All wives filed a claim
2006). before the SSS for death benefits. Who among the
claimants are qualified and/or disqualified as
beneficiaries?
Q: Antonio and Gloria de los Santos, both Filipinos,
got married in 1964. In 1983, Gloria left Antonio and A: Yolanda is disqualified, because the marriage
went to the United States. In 1986, she filed for between her and Rodolfo was null and void because
divorce against Antonio in California. The divorce of a prior subsisting marriage contracted with
was granted. Editha.

In 1987, Antonio married Cirila de los Santos. On her Editha is disqualified, that even if she was the legal
part, Gloria married Larry Thomas Constant, an wife, she was not qualified to the death benefits
American citizen, in the US. In 1999, Antonio died of since she herself admitted that she was not
respiratory failure. Cirila applied for and began dependent on her deceased husband for support
receiving his SSS pension benefit. On December 21, inasmuch as she was cohabiting with another man.
1999, Gloria filed a claim for Antonio’s death benefits
with the SSS. Her claim was denied on the ground Gina is disqualified, being a common-law wife. Since
that she was not a qualified beneficiary of Antonio. the wives are disqualified and because the deceased
She contended that her marriage to Larry Constant has no legitimate child, it follows that the
was not the subsequent marriage contemplated dependent illegitimate minor children of the
under SSS Law that would disqualify her as a deceased shall be entitled to the death benefits as
beneficiary; that the decree of divorce issued by a primary beneficiaries. The SSS Law is clear that for a
foreign state involving Filipino citizens has no validity minor child to qualify as a “dependent,” the only
and effect under Philippine law. Is Gloria still requirements are that he/she must be below 21
qualified as a primary beneficiary of Antonio under years of age, not married nor gainfully employed
the SSS Law? Yolanda’s children are disqualified for being over 21
years old.
A: NO. It is true that the divorce obtained by Gloria
against the deceased Antonio was not binding in this In this case, the minor illegitimate children of Gina
jurisdiction. Under Philippine law, only aliens may are the only qualified beneficiaries of Rodolfo
obtain divorces abroad, provided they are valid (Signey vs. SSS, G.R. No. 173582, 28 January 2008).
according to their national law. The divorce was
obtained by Gloria while she was still a Filipino citizen OTHER PRINCIPLES TO REMEMBER
and thus covered by the policy against absolute
RULE ON CONTRIBUTIONS OF THE SELF-EMPLOYED received by the SSS in connection with the aforesaid
MEMBER insurance operations shall be placed in the Mortgagors’
Insurance Account. (Sec. 26-B)
A self-employed member is obliged to declare his
monthly earnings at the time of his registration with the PENAL PROVISIONS OF R.A. 11199
SSS. This will become the basis of the computation of his
contributions unless later on he decides to declare (a) Whoever, for the purpose of causing any payment to
another amount of monthly earnings. be made under this Act. or under an agreement
thereunder, where none is authorized to be paid, shall
As a self-employed member, he is bound to pay both make or cause to be made false statement or
the “employer” and the “employee” contributions. (Sec. representation as to any compensation paid or received
19- A) or whoever makes or causes to be made any false
EFFECT OF REFUSAL OR NEGLECT OF EMPLOYER TO statement of a material fact in any claim for any benefit
REMIT CONTRIBUTIONS payable under this Act, or application for loan with the
SSS. or whoever makes or causes to be made any false
The contributions shall be collected by the SSS in the statement, representation, affidavit or document in
same manner as taxes are made collectible under the connection with such claim or loan, shall suffer the
National Internal Revenue Code, as amended. penalties provided for in Article One hundred seventy
two of the Revised Penal Code. (Falsification of private
The employer may also be held criminally liable for individuals and use of falsified documents)
swindling or estafa.
(b) Whoever shall obtain or receive any money or check
Q: Can the member-employee still avail of the benefits under this Act or any agreement thereunder, without
under SSS law despite the failure of the employer to being entitled thereto with intent to defraud any
remit contributions? member, employer or the SSS, shall be fined not less
than Five thousand pesos (₱5,000.00) nor more than
Twenty thousand pesos (₱20,000.00) and imprisoned
A: Yes. Failure or refusal of the employer to pay or remit
for not less than six (6) years and one (1) day nor more
the contributions herein prescribed shall not prejudice
than twelve (12) years.
the right of the covered employee to the benefits of the
coverage. (Sec. 22b)
(c) Whoever buys, sells, offers for sale, uses, transfers or
takes or gives in exchange, or pledges or gives in pledge,
INVESTMENT RESERVE FUND (Sec. 26) except as authorized in this Act or in regulations made
pursuant thereto, any stamp, coupon, ticket, book or
All revenues of the SSS that are not needed to meet the other device, prescribed pursuant to Section Twenty
current administrative and operational expenses three hereof by the Commission for the collection or
incidental to the carrying out of this Act shall be payment of contributions required herein, shall be fined
accumulated in a fund to be known as the "Reserve not less than Five thousand pesos (₱5,000.00) nor more
Fund". than Twenty thousand pesos (₱20,000.00), or
imprisoned for not less than six (6) years and one (1) day
Such portions of the Reserve Fund as are not needed to nor more than twelve (12) years, or both, at the
meet the current benefit obligations thereof shall be discretion of the court.
known as the "Investment Reserve Fund" which the
Commission shall manage and invest with the skill, care, (d) Whoever, with intent to defraud, alters, forges,
prudence and diligence necessary to earn an annual makes or counterfeits any stamp, coupon, ticket, book
income not less than the average rates of treasury bills or other device prescribed by the Commission for the
or any other acceptable market yield indicator in any or collection or payment of any contribution required
in all of the undertakings mentioned in Sec. 26. herein, or uses, sells, lends, or has in his possession any
such altered, forged or counterfeited materials, or
SSS AS INSURER makes, uses, sells or has in his possession any such
altered, forged, material in imitation of the material
As part of its investment operations, the SSS shall act as used in the manufacture of such stamp, coupon, ticket,
insurer of all or part of its interest on SSS properties book or other device, shall be fined not less than Five
mortgaged to the SSS, or lives of mortgagors whose thousand pesos (₱5,000.00) nor more than Twenty
properties are mortgaged to the SSS. For this purpose, thousand pesos (₱20,000.00) or imprisoned for not less
the SSS shall establish a separate account to be known than six (6) years and one (1) day nor more than twelve
as the "Mortgagors’ Insurance Account". All amounts (12) years, or both, at the discretion of the court.
(e) Whoever fails or refuses to comply with the CRIMINAL LIABILITY UNDER SEC. 22 VIS-À-VIS SEC. 28
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 thousand pesos (₱5,000.00) Kua vs. Sacupayo (G.R. No. 191237, September 24,
nor more than Twenty thousand pesos (₱20,000.00), or 2014)
imprisonment for not less than six (6) years and one (1)
day nor more than twelve (12) years, or both, at the Q: Will belated remittance of contributions by
discretion of the court: Provided, That where the employers cure the defect and spare them from
violation consists in failure or refusal to register criminal liability?
employees or himself, in case of the covered self
employed or to deduct contributions from the A: No. The elements of criminal liability under Section
employees’ compensation and remit the same to the
22 (a) are:
SSS, the penalty shall be a fine of not less than Five
thousand pesos (₱5,000.00) nor more than Twenty 1. The employer fails to register its employees
thousand pesos (₱20,000.00) and imprisonment for not with the SSS;
less than six (6) years and one (1) day nor more than
twelve (12) years. 2. The employer fails to deduct monthly
contributions from the salaries and/or
(f) If the act or omission penalized by this Act be wages of its employees; and
committed by an association, partnership, corporation
or any other institution, its managing head, directors or 3. Having deducted the SSS contributions
partners shall be liable for the penalties provided in this and/or loan payments to SSS, the employer
Act for the offense. fails to remit these to the SSS.

(g) Any employee of the SSS who receives or keeps Petitioners defense: In this case, petitioners split hairs
funds or property belonging, payable or deliverable to that they "did not fail to remit the SSS contributions of
the SSS and who shall appropriate the same, or shall respondents;" they "fully paid the same, albeit
take or misappropriate, or shall consent, or through belatedly."
abandonment or negligence, shall permit any other
person to take such property or funds, wholly or
partially, or shall otherwise be guilty of Ruling: We affirm the finding of a prima facie case of
petitioners’ failure to remit the SSS contributions and
misappropriation of such funds or property, shall suffer
loan amortization of respondents for a period of
the penalties provided in Article Two hundred
approximately two (2) years, in 2003 and 2004. In
seventeen of the Revised Penal Code. (malversation of
October 2004, after respondents were successively
public funds or property)
dismissed from employment by Vicmar in August 2004,
they separately filed for SSS benefits, relating to sickness
(h) Any employer who, after deducting the monthly and procurement of a loan, which were both denied
contributions or loan amortizations from his employee’s outright for lack of contributions or payments twelve
compensation, fails to remit the said deduction to the months (12) prior to the semester of confinement and
SSS within thirty (30) days from the date they became failure to pay a prior loan. After respondents filed
due, shall be presumed to have misappropriated such criminal complaints against petitioners, the latter then
contributions or loan amortizations and shall suffer the remitted their SSS wage deductions and loan payments
penalties provided in Article Three hundred fifteen of to the SSS.
the Revised Penal Code. (swindling or estafa)
The factual milieu obtaining herein does not denote a
(i) Criminal action arising from a violation of the simple delay in payment. Again, petitioners initially
provisions of this Act may be commenced by the SSS or failed to remit the SSS contributions and payments of
the employee concerned either under this Act or in respondents such thatrespondents were denied benefits
appropriate cases under the Revised Penal Code: under the SS Law which they wanted to avail of. It was
Provided, That such criminal action may be filed by the only under threat of criminal liability that petitioners
SSS in the city or municipality where the SSS office is subsequently remitted what they had long deducted
located, if the violation was committed within its from the wages of respondents.
territorial jurisdiction or in Metro Manila, at the option
of the SSS.
Ambassador Hotel vs. SSS (G.R. No. 194137)

ON FAILURE TO REMIT CONTRIBUTIONS; ELEMENTS OF ON LIABILITY OF CORPORATION AS AN

EMPLOYER Q: Can the corporation be absolved its separate judicial entity to escape its liability for non-
from the civil liability if the accused President is payment of SSS contributions.
acquitted?
To acquire jurisdiction over the corporation in a criminal
A: No. case, its head, directors or partners must be served with
a warrant of arrest. Naturally, a juridical entity cannot
Petitioner’s defense: Ambassador Hotel argued that it be the subject of an arrest because it is a mere fiction of
has a separate and distinct personality from its officers law; thus, an arrest on its representative is sufficient to
such as Yolanda; that it was neither a party to the acquire jurisdiction over it. To reiterate, the law
criminal case nor was summons issued against it, hence, specifically disregards the separate personality between
the RTC did not acquire jurisdiction over it; that it was the corporation and its officers with respect to violations
deprived due process when the RTC ruled that it was of R.A. No. 8282; thus, an arrest on its officers binds the
civilly liable for the unpaid SSS contributions even corporation.
though the trial court had no jurisdiction over its
person; and The acquittal of Yolanda (hotel’s president) does not
that the RTC had no right to render an adverse decision extinguish the civil liability of Ambassador Hotel.
against it because it was not a party in the criminal
action. It is a basic rule that when a criminal action is instituted,
the civil action for the recovery of civil liability arising
Ruling: Even when the employer is a corporation, it shall from the offense charged shall be deemed instituted
still be held liable for the non-remittance of SSS with the criminal action unless the offended party
contributions. It is, however, the head, directors or waives the civil action, reserves the right to institute it
officers that shall suffer the personal criminal liability. separately, or institutes the civil action prior to the
criminal action. Necessarily, when the Information was
Although a corporation is invested by law with a
filed with the RTC, the civil action against Ambassador
personality separate and distinct from that of the Hotel for the recovery of civil liability arising from the
persons composing it, 12 the corporate veil is pierced non-remittance of SSS contributions was deemed
when a director, trustee or officer is made personally instituted therein.
liable by specific provision of law. 13 In this regard,
Section 28 (f) of R.A. No. 8282 explicitly provides that ON TWO WARRING “SPOUSES”; WHO IS THE “LEGAL”
"[i]f the act or omission penalized by this Act be SPOUSE
committed by an association, partnership, corporation
or any other institution, its managing head, directors or SSS vs. Azote (G.R. No. 209741, April 15, 2015)
partners shall be liable to the penalties provided in this
Act for the offense." Thus, a corporation cannot invoke Two spouses. First marriage subsists. Away ni Edna ug
Rosemarie. Rosemarie: married Edgardo on 1982. Edna:
married Edgardo on 1992. ROSEMARIE WON! ☺

Ruling: The existence of two Form E-4s designating, on

two different dates, two different women as his
spouse is already an indication that only one of them
can be the legal spouse. As can be gleaned from the
certification issued by the NSO, there is no doubt that
Edgardo married Rosemarie in 1982. Edna cannot be
considered as the legal spouse of Edgardo as their
marriage took place during the existence of a
previously contracted marriage. For said reason, the
denial of Edna’s claim by the SSC was correct. It
should be emphasized that the SSC determined
Edna’s eligibility on the basis of available statistical
data and documents on their database as expressly
permitted by Section 4(b) (7) of R.A. No. 8282.

It is of no moment that the first wife, Rosemarie, did

not participate or oppose Edna’s claim. Rosemarie’s
non participation or her subsequent death on
November 11, 200432 did not cure or legitimize the
status of Edna.