R.A. No.

1161
Effectivity: June 18, 1954
An Act to create a social
security system providing
sickness, unemployment,
retirement, disability and
death benefits for
employees.
Principally, to provide for better
benefit packages, expansion
coverage, flexibility investments
and stiffer penalties for violators.
To promote social justice and provide
protection to its members and their
families against the hazards of:
disability
sickness
maternity
old age
death
other contingencies resulting in the loss
of income or causing financial burden
Social Security System
created to carry out the purposes of
this Act.
principal place of business in Metro
Manila.
directed and controlled by Social
Security Commission (the Commission),
composed of Secretary of Labor &
Employment, SSS Administrator, and 7
appointive members.
 SSS President, serves as the chief
executive officer, who vested the general
conduct of operations and management
functions of SSS. It is also responsible for
carrying out the program of SSS and the
policies of the Commission.

The Commission, upon the

Recommendation of the President
shall appoint an actuary and other
personnel as may deemed necessary.
Compulsory Coverage
a) all employees not over 60 years of age
and their employers. Provided,
In case of domestic helpers, their monthly income shall
not be less than P1,000.00 a month;
Any benefit earned by the employees under private
benefit plans existing at the time of the approval of this
Act shall not be discontinued, reduced or impaired;
Private plans which are existing and in force at the time
of compulsory coverage shall be integrated with the
plan of SSS;
 Any changes, adjustments, modifications, eliminations
or improvements in the benefits available under the
remaining private plan, which may be necessary to
adopt by reason of the reduced contributions thereto
as a result of the integration, shall be subject to
arrangements between employers and employees
concerned;
Private benefit plan which the employer shall continue
for his employees shall remain under the employers
management and control, unless there is an existing
agreement to the contrary;
Nothing in this Act shall 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.
b) Self employed persons as may be
determined by the Commission,
including but not limited to the
following:
All self-employed professionals;
Partners and single proprietorships of
business;
Actors and actresses, directors,
scriptwriters and news correspondents
who do not fall within the definition of
the term employee
 Professionals athlete, coaches, trainers
and jockeys; and
Individual farmers and fishermen.

Unless otherwise specified herein,

all provisions of this Act
applicable to covered employees
shall also be applicable to the
covered self-employed persons.
Voluntary Coverage,
a) Spouses devoted full time to managing the
household and family affairs, unless they
are also engaged in other vocation or
employment which is subject to mandatory
coverage.

b) Filipinos recruited by foreign-based

employers for employment abroad.
Compulsory coverage of the employer
shall take effect on the first day of his
operation and on the employee on the
first day of his employment.

Compulsory coverage of the self-

employed person shall take effect
upon his registration with the SSS.
An employee under compulsory coverage,
separated from employment, his employer's
contribution on his account and his
obligation to pay contributions arising from
that employment shall cease at the end of the
month of separation, but said employee shall
be credited with all contributions paid on his
behalf and entitled to benefits according to
the provisions of this Act.

He may, however, continue to pay the total

contributions to maintain his right to full
benefit.
If self-employed member realizes no
income in any given month, he shall
not be required to pay contributions
for that month.
However, he may be allowed to
continue paying contributions under
the same rules and regulations
applicable to a separated member.
No retroactive payment of contributions shall be
allowed other than as prescribed by this Act.
 The Commission shall have
cognizance over any dispute arising
under this act with respect to
coverage, benefits, contributions and
penalties. Any case filed with respect
thereto shall be heard by the
Commission and be decided within 20
days after submission of the evidence.
 Any decision of the Commission shall
become final 15 days after the date of
notification, in absence of an appeal
therefrom.
Judicial review shall be permitted only
after any party claiming to be
aggrieved thereby has exhausted his
remedies before the Commission.
The case shall be heard in summary
manner, and shall take the precedence
over all cases.
The sickness benefit is a daily cash allowance
paid for the number of days a member is
unable to work due to sickness or injury.

Equivalent to 90% of his/her average

salary credit.
*it is granted up to a maximum of 120
days in one calendar year.
 The member is unable to work due to sickness or
injury and is confined either in a hospital or at home
for at least four (4) days;
He/she has paid at least three (3) months of
contributions within the 12-month period immediately
before the semester of sickness or injury;
He/she has used up all company sick leaves with pay
for the current year and has duly notified his/her
employer; or
He/she must notify the SSS directly by filing a sickness
benefit application if he/she is separated from
employment, a self-employed or voluntary member,
including overseas Filipino worker (OFW)-member.
 It is a cash benefit granted - either as a
monthly pension or a lump sum
amount - to a member who can no
longer work due to old age.
300
+ 20% of the average monthly salary credit
+ 2% average monthly salary credit for each
credited year of service in excess of 10 years; or
40% of the average monthly salary credit; or P1000
(whichever is higher)
 The member is granted a monthly
retirement pension, if he/she has paid at
least 120 monthly contributions prior to
the semester of retirement. Minimum
pension, 1200 pesos for members with at
least 10 credited years of service and 2,400
for 20 credited years of service.
If less than 120 monthly contributions,
he/she is granted a lump sum amount. In
no case be paid for an aggregate amount of
less than 60 months.
 The member is at least 60 years old (optional
retirement), separated from employment or
has ceased to be self-employed; and has
paid at least 120 monthly contributions prior
to the semester of retirement; or

The member is 65 years old (mandatory

retirement), whether employed or not; and
has paid at least 120 monthly contributions
prior to the semester of retirement.
 A cash benefit granted either as a monthly
pension or lump sum amount to beneficiaries
of a deceased member.

The lowest monthly pension is P1,000 if

with less than 10 credited years of
service (CYS); P1,200 if with at least 10
CYS; and P2,400 if with at least 20 CYS.
 Ifthe member has paid at least 36 monthly
contributions prior to semester of death,
beneficiaries entitled to a monthly pension.

If member has not paid the required 36

monthly contributions, beneficiaries shall be
entitled to lump-sum amount.
The following are the qualified beneficiaries:
Legal Spouse
The legitimate, legitimated, or legally adopted, and
illegitimate child who is unmarried, not gainfully
employed and has not reached 21 years of age, or if
over 21years he is congenitally or while still a minor
has been permanently incapacitated and incapable of
self-support, physically or mentally; and
The parent who is receiving regular support from the
member. (secondary beneficiaries)
 A cash benefit given to whoever paid for
burial expenses of the deceased member.

Equivalent to a variable amount ranging

from a minimum P20,000 to a
maximum of P40,000, depending on
the members paid contributions and
credited years of service.
 Forself-employed / non-working spouse /
OFW members, the deceased member must
have paid at least 1 monthly contribution.

For employed and those separated from

employment, the deceased must been
reported for coverage by his/her employer,
even if no contribution was paid.
A daily cash allowance granted to a female
member who was unable to work due to
childbirth or miscarriage.

Equivalent to 100 percent of the members

average daily salary credit (ADSC) multiplied
by 60 days for normal delivery/ miscarriage/
ectopic pregnancy without operation/
hydatidiform mole (H-mole) and 78 days for
caesarean section delivery/ectopic pregnancy
with operation.
 She has paid at least three (3) monthly
contributions within the 12-month period
immediately preceding the semester of her
childbirth or miscarriage.

Shehas given the required notification of her

pregnancy through her employer if
employed, or directly to the SSS, if a self-
employed or voluntary member or Member
Separated from Employment.
Member Loan in order to meet a members
short-term credit needs. SSS members can
make salary or calamity loans. Salary loans
are calculated based on a members
particular monthly salary credit. Calamity
loans are for instances when government has
declared a State of Calamity in the area
where an SSS members lives, following
disasters such as flooding and earthquakes.
Employee - SSS Form E-1(Personal Data Record)

For Employers
Single Proprietorships - SSS Form R-1 (Employer
Registration) and R-1A (Employment Report)/E1
Partnerships - SSS Form R-1/R1-A/E-1/Articles of
Partnership
Corporations - R-1/R1-A/E-1/Articles of Incorporation
Employee - SSS Form E-1(Personal Data Record)

For Employers
Single Proprietorships - SSS Form R-1 (Employer
Registration) and R-1A (Employment Report)/E1
Partnerships - SSS Form R-1/R1-A/E-1/Articles of
Partnership
Corporations - R-1/R1-A/E-1/Articles of Incorporation
Employee - SSS Form E-1(Personal Data Record)
For Employers
Single Proprietorships - SSS Form R-1 (Employer Registration) and
R-1A (Employment Report)/E1
Partnerships - SSS Form R-1/R1-A/E-1/Articles of Partnership
Corporations - R-1/R1-A/E-1/Articles of Incorporation

Self-employed Members - SSS Form RS-1 (Self-employed Date

Record)
Non-working Spouse - NW-1 (duly signed by the spouse with
Marriage Certificate)
Overseas Filipino Workers (OFWs) - OW-1
Changes in members records - SSS Form E-4