Republic of the Philippines The OWWA shall be an attached agency of the Department of Labor and Employment

CONGRESS OF THE PHILIPPINES (DOLE). Its officials and employees are covered by the Salary Standardization Law.
Metro Manila SECTION 5. ​Scope. – This Act shall apply to the OWWA, the OWWA Secretariat, the
Sixteenth Congress OWWA Fund, to its member-OFWs and those who will avail of the voluntary
Third Regular Session membership program of the OWWA, and to overseas recruitment/manning
Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, two agencies/employers who are duly registered with the Philippine Overseas
thousand fifteen. Employment Administration (POEA).
REPUBLIC ACT No. 10801 SECTION 6.​ ​Functions.​ – The OWWA shall exercise the following functions:
AN ACT GOVERNING THE OPERATIONS AND ADMINISTRATION OF THE (a) To protect the interest and promote the welfare of member-OFWs in all phases of
OVERSEAS WORKERS WELFARE ADMINISTRATION overseas employment in recognition of their valuable contribution to the overall
Be it enacted by the Senate and House of Representatives of the Philippines in national development effort;
Congress assembled: (b) To facilitate the implementation of the provisions of the Labor Code of the
CHAPTER I Philippines (Presidential Decree No. 442, as amended) and the Migrant Workers and
TITLE, POLICY AND OBJECTIVES Overseas Filipinos Act of 1995 (Republic Act No. 8042, as amended), concerning the
SECTION 1. ​Short Title. – This Act shall be known as the “Overseas Workers Welfare responsibility of the government to promote the well-being of OFWs. Pursuant thereto,
Administration Act”. and in furtherance thereof, it shall provide legal assistance to member-OFWs;
SECTION 2. ​Declaration of Policy. – It is the policy of the State to afford full protection (c) To provide social and welfare programs and services to member-OFWs, including
to labor, local and overseas, organized and unorganized, and promote full social assistance, education and training, cultural services, financial management,
employment opportunities for all. Towards this end, it shall be the State’s responsibility reintegration, and entrepreneurial development services;
to protect the Overseas Filipino Workers (OFWs). (d) To provide prompt and appropriate response to global emergencies or crisis
The Overseas Workers Welfare Administration (OWWA) shall be one of the principal situations affecting OFWs and their families;
agencies of the State to serve and promote the rights, interest and welfare of the (e) To ensure the efficiency of collections and the viability and sustainability of the
OFWs and their families. OWWA Fund through sound, judicious, and transparent investment and management
Welfare assistance, services, and programs provided by the OWWA shall be policies;
gender-responsive, taking into consideration the different impacts of labor migration to (f) To undertake studies and researches for the enhancement of the social, economic,
men and women. and cultural well-being of member-OFWs and their families;
SECTION 3. ​Objectives. – This Act is enacted to provide guidelines on matters (g) To develop, support and finance specific projects for the welfare of member-OFWs
concerning the OWWA, its mandate, purposes and objectives, membership, collection and their families; and
of contributions, and availment of benefits and services. This Act also embodies the (h) To ensure the implementation of all laws and ratified international conventions
policies on fund management, programs and services administration. within its jurisdiction.
CHAPTER II CHAPTER III
NATURE, SCOPE AND FUNCTIONS OF THE OWWA DEFINITION OF TERMS
SECTION 4. ​Nature of the OWWA. – The OWWA is a national government agency SECTION 7.​ ​Definition of Terms.​ – As used in this Act:
vested with the special function of developing and implementing welfare programs and (a) Compensation refers to the basic pay or salary received by an officer or employee
services that respond to the needs of its member-OFWs and their families. It is of the OWWA, pursuant to the official appointment, excluding per diems, bonuses,
endowed with powers to administer a trust fund to be called the OWWA Fund. Being a overtime pay, honoraria, allowances and any other emoluments received that are not
chartered institution, the OWWA shall not fall under any of the following categories: integrated into the basic pay under existing laws;
government instrumentalities with corporate powers (GICPs), government corporate (b) Contribution or membership fee refers to the amount paid to the OWWA by the
entities (GCEs), government financial institutions (GFIs) and/or government-owned or employer or by an OFW in accordance with the provisions of this Act;
-controlled corporations (GOCCs). (c) Dependent refers to any of the following:
(1) The legal spouse;
(2) The legitimate, illegitimate, legitimated, and legally adopted child, who is SECTION 11. ​Proof of Membership. – Upon payment of the required contribution, an
unmarried, not gainfully employed, and not over the age of majority, or is over the age OWWA member shall be issued an official receipt, an OWWA E-Card, identification
of majority but incapacitated and incapable of self-support due to a mental or physical card, or other proof of membership. No additional or extra charges shall be levied on
defect; and the member-OFW.
(3) The parents who rely primarily upon the member-OFWs for support; The OWWA shall maintain a comprehensive database of member-OFWs, which shall
(d) Non-active OWWA member refers to an OFW whose OWWA membership has be updated regularly.
expired; SECTION 12. ​Separate Accounting of Land-Based and Sea-Based Members’
(e) Non-OWWA member refers to an undocumented OFW and who has not availed of Contributions. – For a more effective financial management, the membership
the voluntary membership of the OWWA; contributions of land-based and sea-based members shall be accounted for in two (2)
(f) OWWA member refers to an OFW with a paid contribution or membership fee; separate books of accounts.
(g) Overseas Filipino Worker (OFW) refers to a person who is to be engaged, is SECTION 13.​ ​Authorized Collecting Officers.​ –
engaged, or has been engaged in a remunerated activity in a State of which the (a) Membership contributions shall be collected by duly authorized OWWA collecting
person is not a citizen, or on board a vessel navigating the foreign seas other than a officers, deputized collecting officers, or accredited collecting agents. The collection of
government ship used for military or noncommercial purposes, or on an installation membership contributions shall be made at the POEA contract processing hub,
located offshore or on the high seas; and OWWA regional and overseas offices, and other accredited collection centers.
(h) Voluntary OWWA member refers to the OFW who has availed of the voluntary (b) In case of voluntary members who register at the job site, membership
membership of the OWWA at job sites or through electronic registration. contributions shall be made directly to the OWWA Overseas Offices located in the
CHAPTER IV respective foreign service posts of the Philippines.
MEMBERSHIP, CONTRIBUTION AND COLLECTION SECTION 14. ​Reportorial Requirements. – The collecting officer, deputized collecting
SECTION 8. ​Registration of Membership. – Membership in the OWWA may be officer, or the accredited collecting agent shall prepare and submit the required
obtained in two (2) ways: monthly reports to the OWWA Central Office in the Philippines.
(a) By compulsory registration upon processing of employment contracts of OFWs at SECTION 15. ​Handling, Deposit and Remittance of Collection. – The OWWA shall
the POEA; and ensure that the handling, deposit and remittance of collections shall be in accordance
(b) By voluntary registration of OFWs at job sites, or through electronic registration. with the existing rules and regulations of the Commission on Audit (COA), Department
SECTION 9. ​Amount of Contribution and Effectivity of Membership. – Membership in of Budget and Management (DBM), and other concerned agencies.
the OWWA, either through the compulsory or voluntary coverage, shall be effective SECTION 16. ​Sanctions for Erring Officers. – Corresponding administrative sanctions
upon payment of membership contribution in the amount of twenty-five US dollars and other disciplinary measures, including recall from post, suspension, or separation
(US$ 25.00) or its equivalent in the prevailing foreign exchange rates. Such from service, shall be imposed upon any officer who violates Sections 14 and 15 of
membership shall be considered active until the expiration of the OFWs existing this Act.
employment contract or after two (2) years from contract effectivity, whichever comes SECTION 17. ​Prohibition Against Discrimination on Membership. – No OFW shall be
first. denied membership to the OWWA by reason of age, gender, religious belief, or
In case of voluntary registration, membership shall be considered active until the political affiliation. The OWWA shall take affirmative steps to enhance the access of
expiration of the OFWs existing employment contract or after two (2) years from the OFWs to its programs and services.
date of voluntary registration, whichever comes first. SECTION 18. ​Payment of Contribution or OWWA Fee by Employer. – Contributions to
The OWWA shall be allowed to collect a subsequent membership contribution from the OWWA Fund must be paid by the employers or principals, or in their default, by
the member-OFW only after every two (2) years from the last membership contribution the recruitment/manning agency in the case of new hires. The POEA shall ensure that
made. this stipulation is made an integral part of the overseas employment contract.
SECTION 10. ​Power of the Board to Adjust the Membership Contribution. – Based on SECTION 19. ​Penalty for Violation by Recruitment/Manning Agency. – Violation by a
actuarial studies and taking into consideration the welfare and interest of the recruitment/manning agency of the preceding section shall constitute an offense
member-OFWs, the OWWA Board may adjust or modify the amount of membership punishable by revocation of its license and all its officers and directors shall be
contribution. perpetually disqualified from engaging in the business of recruitment/placement of
overseas workers. Such penalty is without prejudice to any other liability which the SECTION 22. ​Responsibilities and Powers of the Board of Trustees. – The Board
officers and directors may have incurred under existing laws, rules and regulations. shall exercise the following specific powers and duties:
CHAPTER V (a) To define the thrusts of the OWWA and adopt policy guidelines to ensure their
THE OWWA BOARD OF TRUSTEES implementation;
SECTION 20. The OWWA Board of Trustees. – To carry out the purposes of this Act, (b) To preserve the integrity of the OWWA Fund;
the OWWA shall be directed and controlled by a Board of Trustees which shall act as (c) To approve programs, projects, and the organizational structure of the OWWA
its policy-making body. It shall be composed of the following members: Secretariat;
(a) Secretary of Labor and Employment, as Chairperson; (d) To modify or adjust the membership contribution and other necessary charges
(b) OWWA Administrator, as Vice Chairperson; based on periodic reviews and actuarial studies, subject to due consultation with
(c) Secretary of Foreign Affairs; OFWs or nongovernment organizations (NGOs) advocating the protection of the rights
(d) Secretary of Finance; and welfare of OFWs and their families;
(e) Secretary of Budget and Management; (e) To formulate rules and regulations governing financial transactions and prepare
(f) POEA Administrator; the annual and supplemental budget of the Secretariat for submission to the DBM;
(g) Two (2) representatives from the land-based OFWs who are nominated and (f) To formulate rules and regulations governing the conduct and discipline of OWWA
appointed in accordance with the provisions of Republic Act No. 8042, as amended by officials and employees in accordance with civil service rules;
Republic Act No. 10022; (g) To ensure the efficiency of collection and the viability and sustainability of the fund
(h) Two (2) representatives from the sea-based. OFWs who are nominated and through sound and judicious investment and fund management policies;
appointed in accordance with the provisions of Republic Act No. 8042, as amended by (h) To receive and appropriate all sums to carry out the purposes and functions of the
Republic Act No. 10022; OWWA;
(i) One (1) representative from the women sector who is nominated and appointed in (i) To authorize the construction or repair of its buildings, machinery, equipment and
accordance with the provisions of Republic Act No. 8042, as amended by Republic other facilities, and the purchase and acquisition of real and personal properties,
Act No. 10022; including the necessary supplies, materials and equipment;
(j) One (1) representative from the land-based recruitment sector who is selected from (j) To receive in trust legacies, gifts and donations of real and personal property of all
among the various associations of registered overseas placement and recruitment kinds, and to administer and dispose the same when necessary for the benefit of the
agencies based in the Philippines, who shall be appointed by the President of the OWWA general membership and subject to the instructions of the donor, if any;
Philippines to serve a single term of three (3) years; and (k) To delegate any of its powers to the Chairperson of the Board or to the
(k) One (1) representative from the sea-based manning sector, who is selected from Administrator of the OWWA Secretariat in case of any national emergency that affects
among the various associations of registered overseas placement and manning the rights and welfare of its member-OFWs and their families;
agencies based in the Philippines, who shall be appointed by the President of the (l) To prescribe such general policies, rules and regulations, not contrary to law,
Philippines to serve a single term of three (3) years. consistent with the purposes of the OWWA subject to due consultation with OFWs or
The Trustees holding office as members of the OWWA Board at the time of the NGOs advocating the protection of the rights and welfare of OFWs and their families;
effectivity of this Act shall continue to serve until the expiration of their term of and
appointments. (m) To exercise such, powers as may be proper and necessary to carry out the
In case of vacancy in any of the appointive positions in the OWWA Board, the vacancy objectives of this Act.
shall be filled by the subsequent nomination of the respective sector concerned, in the CHAPTER VI
same manner as the selection of the predecessor. Such successor shall hold office for BOARD MEETINGS, PROXIES, AND RECORDS MANAGEMENT
the unexpired term. SECTION 23. ​Schedule of Meetings. – The regular meetings of the Board shall be
SECTION 21. ​Per Diem. – The members of the OWWA Board shall not receive any held every last Friday of the month. If a change of date becomes necessary, the
compensation but shall be provided with per diem at rates allowed under existing rules meetings shall be held at the most convenient time set by the Board.
and regulations.
Special Board meetings and executive meetings may be scheduled as the need SECTION 26. ​Duties and Responsibilities of the OWWA Secretariat. – The OWWA
arises. Special Board meetings may be called upon by the Chairperson or upon the Secretariat shall perform and assume the following duties and responsibilities:
instance of five (5) members of the Board. (a) To implement all decisions and policies promulgated by the Board including
SECTION 24. ​Proceedings of the Board. – The proceedings of the Board shall be investment and fund management;
governed by the following rules: (b) To manage programs and implement the delivery of welfare services to its
(a) Notice of Meetings – The Board Secretary shall distribute to all members of the members, both local and overseas, supported by advocacy and information campaign
Board the notice of meeting, together with the discussion materials, at least three (3) programs;
working days prior to the scheduled meeting; (c) To formulate medium-term development plans responsive to the welfare, needs,
(b) Quorum – In determining the existence of a quorum, the Board shall adopt the and demands of member-OFWs;
simple majority rule or one-half (1/2) of the total filled Board seats plus one (1); (d) To submit work and financial plans for Board consideration;
(c) Voting – For the approval of any policy requiring the disbursement of at least one (e) To provide policy analyses and recommendations for Board consideration;
hundred million pesos (P100,000,000.00) of the OWWA Fund, an affirmative vote of (f) To conduct continuing research and studies, including impact evaluation, in aid of
the absolute majority of all the members shall be required. For the approval of all other policy and program development;
policies, an affirmative vote of a majority of the members present constituting a (g) To regularly monitor and conduct assessment and evaluation of organizational
quorum shall be necessary; performance;
(d) Attendance in Board Meetings – Board members are responsible for attending all (h) To establish and maintain an on-line management information system, which shall
Board meetings. The ex officio members of the Board of Trustees may designate in include a database on membership;
writing their permanent alternate who shall have voting power. The Board shall install (i) To establish and maintain linkages and networks with social and institutional
teleconferencing facilities in order to muster a quorum during Board meetings; partners, both local and international;
(e) Presiding Officer – The Chairperson shall preside over meetings of the Board. In (j) To submit written quarterly reports on the assessment and evaluation of programs,
the absence of the Chairperson, the Vice Chairperson shall preside; projects and services, and such other reports as maybe required by the Board;
(f) Board Resolution – All decisions of the Board shall be expressed in the form of (k) To conduct an annual planning, budgeting and organizational performance
Resolutions and shall take effect upon adoption and signing by all the members assessment, and render the corresponding report to the Board;
present, subject to requisite publication, as may be required by existing laws, rules (l) To submit annual reports to the Board, the Congress and the President of the
and regulations; Provided, That resolutions may be modified or superseded by Philippines;
another resolution; and (m) To undertake a periodic review of programs, standards, thrusts, and policies;
(g) Records Management and Archiving of Board Documents – The Board Secretary (n) To perform other functions as may be instructed by the Board; and
shall ensure a complete and thorough recording of all proceedings during a Board (o) To adopt internal rules of procedure consistent with the provisions of this Act.
meeting. The minutes of the previous meeting shall be made available for approval SECTION 27. ​The OWWA Administrator. – The management and supervision of the
during the succeeding scheduled Board meeting. OWWA shall be vested in the Administrator. As the Chief Executive Officer of the
The minutes of the meeting shall contain the attendance, business arising from the Secretariat, the Administrator shall oversee the overall operations of the Secretariat,
minutes of the previous meeting, agreements reached, corresponding resolutions, which shall include the general supervision and control of all its personnel and
other items noted or discussed, and instructions issued by the Board. resources, and the assumption of full responsibility and accountability thereof.
All minutes of meetings and Board Resolutions, tape recordings, and other documents The Administrator must possess good leadership and managerial skills, and shall be
pertaining to the business of the Board shall be kept and archived pursuant to appointed by the President of the Philippines. The Administrator shall report to the
standard records management systems, procedures and shall be made accessible to President, through the Secretary of the DOLE, and shall perform the duties and
the public at all times. functions stated in this Act and all the necessary and related functions of the office of
CHAPTER VII the Administrator, subject to the policies and rules prescribed by the OWWA Board.
OWWA SECRETARIAT SECTION 28. ​The Deputy Administrators. – Two (2) Deputy Administrators shall
SECTION 25. ​The OWWA Secretariat. – The OWWA Secretariat shall be the assist the Administrator in the management and supervision of operations of the
implementing arm of the OWWA. OWWA. There shall be one (1) Deputy Administrator for Administration and Fund
Management, and one (1) Deputy Administrator for Operations. They shall also be Decree No. 1809, and renamed under Executive Order No. 126, series of 1987, and
appointed by the President upon the recommendation of the Administrator. They must OWWA Board Resolution No. 001, series of 2004, shall be appointed, reappointed, or
also possess good leadership and managerial skills. The Board may assign specific transferred to the appropriate unit in the new OWWA organizational structure, as
functional responsibilities to the Deputy Administrators. determined by the Board, and subject to the qualifications provided in Section 31 of
SECTION 29. ​Regional and On-site Welfare Offices. – The OWWA shall maintain this Act. There shall be no gender discrimination, no demotion in ranks and positions
Regional and On-site Welfare Offices under the Philippine Overseas Labor Offices and no diminution in salaries, benefits, allowances and emoluments of all OWWA
(POLOs) of the DOLE. personnel.
CHAPTER VIII SECTION 33. ​General Qualifications for Appointment. – The general qualifications for
PERSONNEL AND STAFFING PATTERN appointment of OWN A personnel shall be in accordance with the minimum
SECTION 30. ​Authority of the Board to Reorganize the Administration. – qualification standards requirements set by the CSC. The OWWA may hire experts in
Notwithstanding the provisions of existing laws, the OWWA Board shall conduct a actuarial studies, information technology, finance and investment, and such other
management audit within one hundred twenty (120) days from the effectivity of this Act fields as may be deemed necessary in the implementation of its programs and
and submit to the DBM a proposed reorganization plan of the OWWA not later than services.
one (1) year after the audit, subject to the limitations provided under this Act and CHAPTER IX
based on the following criteria: OWWA BENEFITS AND SERVICES
(a) Increased OWWA visibility from the head office to the various regional offices, and SECTION 34. ​Guiding Principles. – Pursuant to its mandate, the OWWA shall provide
by the appointment and assignment of personnel to positions that are purely gender-responsive reintegration programs, repatriation assistance, loan and credit
administrative, technical, clerical in nature, and other positions that are not actually assistance, on-site workers assistance, death and disability benefits, health care
and directly related to its operation and administration; and benefits, education and skills training, social services, family welfare assistance,
(b) Efficient and optimized delivery of OWWA services to the OFWs and their programs and services for women migrant workers and other appropriate programs
respective families. The OWWA shall ‘endeavor to assign its representatives in every that provide timely social and economic services.
foreign post of the Philippines to, among others, ensure the provision of services to Nothing in this Act shall be construed as a limitation or denial of the right of an OFW to
member-OFWs and the promotion of voluntary membership to non-members. avail of any benefit plan which may be adopted in the employment contract, or offered
SECTION 31. Qualifications Upgrading Program. – The OWWA Board shall design voluntarily by employers, or by the laws of the receiving country, over and above those
and establish a qualifications upgrading program for the staffing of the OWWA, in provided under this Act.
coordination with the DOLE and the Civil Service Commission (CSC), within one SECTION 35.​ ​Benefits and Services to OFWs.​ –
hundred twenty (120) days from the effectivity of this Act: Provided, That those who (a) Reintegration of OFWs. – The reintegration of OFWs, taking into consideration the
are already in the service from the effectivity of this Act shall have, not later than five needs of women migrant workers, shall be one of the core programs of the OWWA. In
(5) years, obtained the required academic degree and/or qualifications counted from this regard, and for purposes of policy and program coordination, the National
the implementation of the qualifications upgrading program: Provided, further, That Reintegration Center for OFWs created under Republic Act No. 10022 shall be an
those who are already in the service from the effectivity of this Act shall have, not later attached office of the OWWA. It shall be headed by an Executive Director who shall
than one (1) year, obtained the necessary CSC qualification required for the position be under the supervision of the OWWA Administrator.
they are currently holding: Provided, finally, That said personnel have obtained at least To be able to sustain the viability of this program, not less than ten percent (10%) of
a satisfactory performance rating. OWWA’s collection of contribution for the immediately preceding year shall be
SECTION 32.​ New Structure and Staffing Pattern. – allocated annually for the reintegration program,
(a) The new structure and staffing pattern for the OWWA shall be prescribed by the (b) Repatriation Assistance. – Consistent with the provisions of Republic Act No. 8042,
OWWA Board and shall be submitted to the Secretary of the DBM for approval. The as amended, the OWWA shall assist the Department of Foreign Affairs in providing
salaries and benefits of all personnel shall be in accordance with existing OFWs with services necessary to facilitate repatriation, as may be required.
compensation laws. (c) Loan and Other Credit Assistance. – The OWWA shall provide low-interest loans to
(b) The current officials and employees of the OWWA, as organized under Letter of member-OFWs. It shall have the authority to hire experts in finance or banking to
Instruction No. 537 and Presidential Decree No. 1694, as amended by Presidential assist in implementing the said loan programs.
(d) Workers Assistance and On-site Services. – The OWWA shall sustain and (ii) Education for Development Scholarship Program. – For baccalaureate programs;
maintain assistance to member-OFWs in all its overseas and regional offices. and
Services shall be gender-responsive and shall include information regarding the (iii) Seafarers’ Upgrading Program. – To ensure the competitive advantage of Filipino
names, occupation/job categories and addresses of the member-OFWs; legal seafarers in meeting competency standards, as required by the International Maritime
assistance providing guidance and information on protection of migrant rights, Organization (IMO), International Labor Organization (ILO) conventions, treaties and
including the prevention of gender-based violence; developing materials for the agreements, sea-based members shall be entitled to one upgrading program for every
predeparture orientation seminars; conducting psycho-social counseling services; three (3) membership contributions.
conciliation services; appropriate services and intervention for victims of gender-based The annual scholarship lists of all these programs shall be submitted to the Board.
violence, and outreach missions, among others. The OWWA shall likewise make SECTION 36. New Programs, Interactive Website and Extension of Services. – The
competent representations with employers, agents, and host government authorities OWWA shall continue to develop and implement new programs to meet new OFW
to assist member-OFWs in obtaining relief from grievances and work-related issues, needs and requirements as they arise, and to assess the effectiveness of existing
including claims for unpaid wages, and illegal recruitment cases among others. services and benefits in serving the welfare of OFWs.
(e) Social Benefits. – A member-OFW shall be covered with the following social The OWWA shall also maintain an interactive website to collect OFW feedbacks,
benefits: comments, suggestions, and complaints on existing programs and services.
(1) Death and Disability Benefits: The OWWA may also extend appropriate programs or services to non-members, as
(i) Death Benefits. – A member shall be covered with life insurance for the duration of may be determined by the Board.
his or her employment contract. The coverage shall include one hundred thousand CHAPTER X
pesos (P100,000.00) for natural death and two hundred thousand pesos THE OWWA TRUST FUND
(P200,000.00) for accidental death; SECTION 37. ​The OWWA Fund. – The Welfare Fund for Overseas Workers created
(ii) Disability and Dismemberment Benefits. – Disability and dismemberment benefits under Letter of Instruction No. 537 and Presidential Decree No. 1694, as amended by
shall be included in a member’s life insurance policy, as provided for in the Presidential Decree No. 1809, is hereinafter referred to as the OWWA Fund. The
impediment schedule contained in the OWWA Manual of Systems and Procedures. OWWA Fund is a private fund held in trust by the OWWA. Being a trust fund, no
The coverage is within the range of two thousand pesos (P2,000.00) to fifty thousand portion thereof or any of its income, dividends or earnings shall accrue to the general
pesos (P50,000.00); fund of the National Government. Neither shall any amount or portion thereof be
(iii) Total Disability Benefit. – In case of total permanent disability, a member shall be conjoined with government money, nor revert to the National Government. In the
entitled to one hundred thousand pesos (P100,000.00); and same manner, it is exempted from the “one fund doctrine” of the government.
(iv) Burial Benefit. – A burial benefit of twenty thousand pesos (P20,000.00) shall be SECTION 38. ​Purpose of the OWWA Fund. – The OWWA Fund can only be used for
provided in case of the member’s death. the purposes for which it was created, that is, to serve the welfare of member-OFWs
Based on actuarial studies, the Board may increase the amount of the and their families which shall include the financing of core programs and services of
abovementioned benefits. the OWWA.
(2) Health Care Benefits. – Within two (2) years from the effectivity of this Act, the No funds shall be withdrawn from the OWWA Fund to respond, aid, supplement, or in
OWWA shall develop and implement health care programs for the benefit of any manner augment any required expenditure by other government agencies.
member-OFWs and their families, taking into consideration the health care needs of SECTION 39. ​Source of the OWWA Fund. – The OWWA Fund is the sum total of the
women as provided for in Republic Act No. 9710, or the Magna Carta of Women, and amounts under the management and fiscal administration of the OWWA Board and
other relevant laws. the Secretariat, including the twenty-five US dollars (US$25.00) contributions that shall
(3) Education and Training Benefits. – A member, or the member’s designated accrue to the Fund as fees, investment and interest income, and income from other
beneficiary, may avail any of the following scholarship programs, subject to a selection sources.
process and accreditation of participating institutions: SECTION 40. ​Disbursement of the OWWA Fund. – Any provision of existing law to the
(i) Skills-for-Employment Scholarship Program. – For technical or vocational training contrary notwithstanding, all incomes generated by the OWWA shall, upon their
scholarship; collection, be retained by the OWWA and disbursed at the discretion of the Board for
providing services and other benefits of the OWWA general membership and their SECTION 46. ​Examination and Valuation of the Funds. – The OWWA shall make a
families. periodic actuarial examination and valuation of its funds in accordance with accepted
SECTION 41. ​Trustees of the Fund. – The Board is designated as the trustee of the actuarial principles.
OWWA Fund. It is bound by a fiduciary duty to manage the Fund with extraordinary CHAPTER XII
diligence and with utmost skill, care and judiciousness. FISCAL AND BUDGET POLICY: MANAGEMENT OF OWWA FUND
SECTION 42. ​Transparency. – The OWWA Fund shall be managed with full SECTION 47. ​Budget for Benefits and Services. – The annual budget for benefits and
transparency and full public disclosure. The OWWA shall make available all records of services to OWWA members and their families shall be sourced from the OWWA
how the funds are utilized, disbursed, and invested, in accordance with existing laws. funds.
SECTION 43. ​Reporting of the OWWA Fund Collection and Utilization. – Within fifteen SECTION 48. ​Budget Preparation and Approval. – In preparing the annual budget for
(15) days after receipt of audited reports from the COA, the OWWA Board of Trustees benefits and services, the OWWA shall follow the national government budget system,
shall submit to the Congress and the President of the Philippines a report showing the format and cycle.
total collections of, and the disbursements from, the OWWA Fund and shall publish The Board shall approve the annual budget, by a majority vote of all its members.
the electronic copy of the report and make them available online, in a format that is SECTION 49. ​Reenacted Budget. – In case the proposed annual budget sourced from
searchable, accessible and useful to the public. the OWWA Fund has not been approved by the Boar d at the start of the year, the
CHAPTER XI OWWA shall operate within the budget level of the previous year allocated on a
INVESTMENT ADMINISTRATION: SAFEGUARDS month-to-month basis. All savings realized in the previous year shall be deducted from
SECTION 44. ​Safeguards of the OWWA Fund; Acquired Assets; Unredeemed the current year’s budget.
Investments.​ – SECTION 50. ​Budget Realignment. – Realignment of funds sourced from the OWWA
(a) The OWWA Fund shall be managed and expended in accordance with the Fund including adjustments in targets shall be submitted to the Board for approval.
purposes stipulated in this Act and safeguarded against any possible loss and misuse. Similarly, in the event that extraordinary circumstances may occur which require
The OWWA shall ensure an appropriate growth rate in the Fund sufficient to sustain sourcing of additional funds from the OWWA Fund beyond the coverage of the
the growing needs of member-OFWs. It shall periodically conduct an inventory of its approved budget, the same shall be submitted to the Board for approval.
investment instruments and ensure that they are properly kept at a government bank SECTION 51. ​Branch Accounting System; Financial Reports; Auditing Procedures;
under a custodianship agreement. Annual Reports. – The OWWA Regional Units shall maintain their respective books of
A monthly report on all investment schedules showing the interest rates, yields, accounts which shall be consolidated by the central office.
discount rates, and other relevant data, shall be submitted to the Board. The OWWA shall install sound internal control and monitoring systems and submit
(b) The OWWA shall administer all properties, acquired or foreclosed. quarterly prescribed Financial Statements to the COA, such as income statement,
To ensure that the properties are safeguarded and preserved, the same must be balance sheet, and cash flow as prescribed in post auditing reports by the COA.
properly accounted for and documented, reinspected, reappraised, and insured. The OWWA Secretariat shall submit a monthly fund utilization report to the Board,
An asset development/disposal plan shall be submitted by the Administrator for the copies of which shall be made available to Congress.​1âwphi1 It shall also submit an
consideration of the Board. Annual Report on its overall performance for the previous year within the first sixty ‘
Foreclosed properties shall be registered as OWWA assets within one (1) month after (60) days of the following year to the OWWA Board, the Congress and the President
foreclosure. of the Philippines, through the DBM.
(c) Unredeemed investments and other receivables shall be inventoried semi-annually SECTION 52. ​Chart of Accounts. – The OWWA shall adopt the appropriate and
and corresponding redemption plan shall be submitted to tide Board. All receivables standard chart of accounts as prescribed by the COA
shall be supported by documents appropriately acknowledged by the accountable CHAPTER XIII
party. APPROPRIATION FROM THE NATIONAL GOVERNMENT
SECTION 45. ​General Investment Policy. – Upon approval of the Board, all OWWA SECTION 53. ​Appropriation from the National Government. – The amount needed to
investments shall be placed only in government securities and bonds which provide carry out the initial implementation of this Act shall be charged against the current
optimum earnings, liquidity and protection of the Fund. Portfolio management of operative budget sourced from the internal funds of the OWWA. Thereafter, such lump
investible funds shall be outsourced to GFIs. sum representing the responsibility of the National Government for the continued
operations and maintenance of the OWWA shall be included in the annual General SECTION 58. ​Implementing Rules and Regulations. – Within ninety (90) days from the
Appropriations Act (GAA). effectivity of this Act, the present OWWA Board shall promulgate the rules and
Congress shall annually appropriate the necessary amount to meet the funding regulations implementing the provisions of this Act. The implementing rules and
requirement for personal services (PS) and the maintenance and other operating regulations issued pursuant to this section shall take effect fifteen (15) days after its
expenses (MOOE) of the OWWA. Nothing in this Act shall prevent the National publication in two (2) newspapers of general circulation.
Government from allocating funds for the operation or implementation of any of the SECTION 59. ​Separability Clause. – If any provision of this Act is declared
programs or services stated herein, including the budget for capital outlay (CO). unconstitutional, the remainder of this Act or any provision not affected thereby shall
CHAPTER XIV remain in full force and effect.
MISCELLANEOUS PROVISIONS SECTION 60. ​Repealing Clause. – Letter of Instruction No. 537, Presidential Decree
SECTION 54. ​Rebates for Long-time Members. – In recognition of the contribution of No. 1694 and Presidential Decree No. 1809 are hereby repealed. All other laws,
long-time members to the OWWA Fund, the OWWA shall develop and implement a decrees, executive orders, rules and regulations inconsistent with the provisions of
program for the grant of rebates or some form of financial assistance to OFWs who this Act are likewise repealed.
have been members of the OWWA for at least ten (10) years and who, along with their SECTION 61. ​Effectivity. – This Act shall take effect fifteen (15) days after its
families, have not availed of any service or benefit from the OWWA. The provision and publication in the Official Gazette or in two (2) newspapers of general circulation.
the amount of rebates shall be based on actuarial study commissioned by the OWWA
for this purpose.
SECTION 55. ​Procurement System. – The OWWA procurement system shall be
governed by Republic Act No. 9184, also known as the “Government Procurement
Reform Act”.
SECTION 56. ​Exemption from Tax, Legal Process and Lien. – All laws to the contrary
notwithstanding, the OWWA and all its assets and properties, all contributions
collected and all accruals thereto and income or investment earnings therefrom as
well as all supplies, equipment, papers or documents shall be exempt from any tax,
assessment, fee, charge, or customs or import duty. All benefit payments made by the
OWWA shall likewise be exempt from all kinds of taxes, fees or charges, and shall not
be liable to attachments, garnishments, levy or seizure by or under any legal or
equitable process, either before or after receipt by the person or persons entitled
thereto, except to pay any debt of the member to the OWWA. No tax measure of
whatever nature enacted shall apply to the OWWA, unless this section is expressly,
specifically and categorically revoked or repealed by law and a provision is enacted to
substitute or replace the exemption referred to herein. Any tax assessment imposed
against the OWWA shall be null and void.
SECTION 57. ​Transitory Provision. – All facilities, equipment, supplies, records, files,
appropriations and funds under the OWWA, as organized under Letter of Instruction
No. 537 and Presidential Decree No. 1694, as amended by Presidential Decree No.
1809, and renamed under Executive Order No. 126, series of 1987, shall remain with
the OWWA.
Current officials and employees of the OWWA shall continue to draw their salaries,
benefits and emoluments from the OWWA Fund until such time, but not later than one
(1) year from the effectivity of this Act, that the corresponding funds from the National
Government shall have been appropriated and released to the OWWA.
 known as the "National Health Insurance Act of 1995", as amended, or their
implementing rules and regulations (IRR), and is inimical to the public;
(b) Amenities refer to features of the health service that provide comfort or
convenience, such as private accommodation, air conditioning, telephone, television,
and choice of meals, among others;
Seventeenth Congress
(c) Basic or ward accommodation refers to the provision of regular meal, bed in
Third Regular Session
shared room, fan ventilation, and shared toilet and bath;
Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
(d) Co-insurance refers to a percentage of a medical charge that is paid by the
thousand eighteen.
insured, with the rest paid by the health insurance plan;
REPUBLIC ACT No. 11223
(e) Co-payment refers to a flat fee or predetermined rate paid at point of service;
An Act Instituting Universal Health Care for All Filipinos, Prescribing Reforms in
(f) Direct contributors refer to those who have the capacity to pay premiums, are
the Health Care System, and Appropriating Funds Therefor
gainfully employed and are bound by an employer-employee relationship, or are
Be it enacted by the Senate and House of Representatives of the Philippine Congress
self-earning, professional practitioners, migrant workers, including their qualified
Assembled:
dependents, and lifetime members;
CHAPTER 1
(g) Emergency refers to a condition or state of a patient wherein based on the
GENERAL PROVISIONS
objective findings of a prudent medical officer on duty, there is immediate danger and
Section 1.​ ​Short Title.​ - This Act shall be known as the ​"Universal Health Care Act".
where delay in initial support and treatment may cause loss of life or permanent
Section 2. ​Declaration of Principles and Policies. - It is the policy of the State to
disability to the patient, or in the case of a pregnant woman, permanent injury or loss
protect and promote the right to health of all Filipinos and instill health consciousness
of her unborn child, or a non-institutional delivery;
among them. Towards this end, the State shall adopt:
(h) Entitlement refers to any singular or package of health services provided to
(a) An integrated and comprehensive approach to ensure that all Filipinos are health
Filipinos for the purpose of improving health;
literate, provided with healthy living conditions, and protected from hazards and risks
(i) Essential health benefit package refers to a set of individual-based entitlements
that could affect their health;
covered by the National Health Insurance Program (NHIP) which includes primary
(b) A health care model that provides all Filipinos access to a comprehensive set of
care; medicines, diagnostics and laboratory; and preventive, curative, and
quality and cost-effective, promotive, preventive, curative, rehabilitative and palliative
rehabilitative services;
health services without causing financial hardship,, and prioritizes the needs of the
(j) Fraudulent act refers to any act of misrepresentation or deception resulting in
population who cannot afford such services;
undue benefit or advantage on the part of the doer or any means that deviate from
(c) A framework that fosters a whole-of-system, whole-of-government, and
normal procedure and is undertaken for personal gam, resulting thereafter to damage
whole-of-society approach in the development, implementation, monitoring, and
and prejudice which may be capable of pecuniary estimation;
evaluation of health policies, programs and plans; and
(k) Health care provider refers to any of the following:
(d) A people-oriented approach for the delivery of health services that is centered on
(1) A health facility which may be public or private, devoted primarily to the provision
people’s needs and well-being, and cognizant of the differences in culture, values, and
of services for health promotion, prevention, diagnosis, treatment, rehabilitation and
beliefs.
palliation of individuals suffering from illness, disease, injury, disability, or deformity, or
Section 3.​ ​General Objectives.​ - This Act seeks to:
in need of obstetrical or other medical and nursing care;
(a) Progressively realize universal health care in the country through a systemic
(2) A health care professional who may be a doctor of medicine, nurse, midwife,
approach and clear delineation of roles of key agencies and stakeholders towards
dentist, or other allied professional or practitioner duly licensed to practice in the
better performance in the health system; and
Philippines;
(b) Ensure that all Filipinos are guaranteed equitable access to quality and affordable
(3) A community-based health care organization, which is an association of members
health care goods and services, and protected against financial risk.
of the community organized for the purpose of improving the health status of that
Section 4.​ ​Definition of Terms.​ - As used in this Act:
community; or
(a) Abuse of authority refers to an act of a person performing a duty or function that
(4) Pharmacies or drug outlets, laboratories and diagnostic clinics.
goes beyond what is authorized by this Act and Republic Act No. 7875, otherwise
(l) Health care provider network refers to a group of primary to tertiary care providers, Section 6.​ ​Service Coverage.​ -
whether public or private, offering people-centered and comprehensive care in an (a) Every Filipino shall be granted immediate eligibility and access to preventive,
integrated and coordinated manner with the primary care provider acting as the promotive, curative, rehabilitative, and palliative care for medical, dental, mental and
navigator and coordinator of health care within the network; emergency health services, delivered either as population-based or individual-based
(m) Health Maintenance Organization (HMO) refers to an entity that provides, offers, health services: ​Provided, That the goods and services to be included shall be
or covers designated health services for its plan holders or members for a fixed determined through a fair and transparent HTA process;
prepaid premium; (b) Within two (2) years from the effectivity of this Act, PhilHealth shall implement a
(n) Health Technology Assessment (HTA) refers to the systematic evaluation of comprehensive outpatient benefit, including outpatient drug benefit and emergency
properties, effects, or impact of health-related technologies, devices, medicines, medical services in accordance with the recommendations of the Health Technology
vaccines, procedures and all other health-related systems developed to solve a health Assessment Council (HTAC) created under Section 34 hereof;
problem and improve quality of lives and health outcomes, utilizing a multidisciplinary (c) The DOH and the local government units (LGUs) shall endeavor to provide a
process to evaluate the social, economic, organizational, and ethical issues of a health health care delivery system that will afford every Filipino a primary care provider that
intervention or health technology; would act as the navigator, coordinator, and initial and continuing point of contact in
(o) Indirect contributors refer to all others not included as direct contributors, as well as the health care delivery system: ​Provided, That except in emergency or serious cases
their qualified dependents, whose premium shall be subsidized by the national and when proximity is a concern, access to higher levels of care shall be coordinated
government including those who are subsidized as a result of special laws; by the primary care provider; and
(p) Individual-based health services refer to services which can be accessed within a (d) Every Filipino shall register with a public or private primary care provider of choice.
health facility or remotely that can be definitively traced back to one (1) recipient, has The DOH shall promulgate the guidelines on the licensing of primary care providers
limited effect at a population level and does not alter the underlying cause of illness and the registration of every Filipino to a primary care provider.
such as ambulatory and inpatient care, medicines, laboratory tests and procedures, Section 7.​ ​Financial Coverage.​ -
among others; (a) Population-based health services shall be financed by the National Government
(q) Population-based health services refer to interventions such as health promotion, through the DOH and provided free of charge at point of service for all Filipinos.
disease surveillance, and vector control, which have population groups as recipients; The National Government shall support LGUs in the financing of capital investments
(r) Primary care refers to initial-contact, accessible, continuous, comprehensive and and provision of population-based interventions.
coordinated care that is accessible at the time of need including a range of services (b) Individual-based health services shall be financed primarily through prepayment
for all presenting conditions, and the ability to coordinate referrals to other health care mechanisms such as social health insurance, private health insurance, and HMO
providers in the health care delivery system, when necessary; plans to ensure predictability of health expenditures.
(s) Primary care provider refers to a health care worker, with defined competencies, CHAPTER III
who has received certification in primary care as determined by the Department of NATIONAL HEALTH INSURANCE PROGRAM
Health (DOH) or any health institution that is licensed and certified by the DOH; Section 8. ​Program Membership. - Membership into the Program shall be simplified
(t) Private health insurance refers to coverage of a defined set of health services into two (2) types, direct contributors and indirect contributors, as defined in Section 4
financed through private payments in the form of a premium to the insurer; and of this Act.
(u) Unethical act refers to any action, scheme or ploy against the NHIP, such as Section 9. ​Entitlement to Benefits. - Every member shall be granted immediate
overbilling, upcasing, harboring ghost patients or recruitment practice, or any act eligibility for health benefit package under the Program: ​Provided, That PhilHealth
contrary to the Code of Ethics of the responsible persons profession or practice, or Identification Card shall not be required in the availment of any health service:
other similar, analogous acts that put or tend to put in disrepute the integrity and Provided, further, That no co-payment shall be charged for services rendered in basic
effective implementation of the NHIP. or ward accommodation: ​Provided, furthermore, That co-payments and co-insurance
CHAPTER II for amenities in public hospitals shall be regulated by the DOH and PhilHealth:
UNIVERSAL HEALTH CARE (UHC) Provided, finally, That the current PhilHealth package for members shall not be
Section 5. ​Population Coverage. - Every Filipino citizen shall be automatically reduced.
included into the NHIP, hereinafter referred to as the Program.
PhilHealth shall provide additional Program benefits for direct contributors, where Program expenditures: ​Provided, further, That whenever actual reserves exceed the
applicable: ​Provided, That failure to pay premiums shall not prevent the enjoyment of required ceiling at the end of the fiscal year, the excess of the PhilHealth reserve fund
any Program benefits: ​Provided, further, That employers and self-employed direct shall be used to increase the Program’s benefits and to decrease the amount of
contributors shall be required to pay all missed contributions with an interest, members’ contributions.
compounded monthly, of at least three percent (3%) for employers and not exceeding Any unused portion of the reserve fund that is not needed to meet the current
one and one-half percent (1.5%) for self-earning, professional practitioners, and expenditure obligations or support the abovementioned programs shall be placed in
migrant workers. investments to earn an average annual income at prevailing rates of interest and shall
Section 10. ​Premium Contributions. - For direct contributors, premium rates shall be be referred to as the Investment Reserve Fund. The Investment Reserve Fund shall
in accordance with the following schedule, and monthly income floor and ceiling: be invested in any or all of the following:
(a) In interest-bearing bonds, securities or other evidences of indebtedness of the
Year Premium Rate Income Floor Income Ceiling
Government of the Philippines: ​Provided, That such investment shall be at least fifty
percent (50%) of the reserve fund;
2019 2.75% ₱10,000.00 ₱50.000.00 (b) In debt securities and corporate bonds of prime or solvent corporations created or
existing under the laws of the Philippines: ​Provided, That the issuing or its
predecessor entity shall not have defaulted in the payment of interest on any of its
2020 3.00 % ₱10,000.00 ₱60,000.00 securities: ​Provided, further, That the securities are issued by companies with high
growth opportunities and earnings potentials: ​Provided, finally, That such investment
2021 3.50% ₱10,000.00 ₱70,000.00 shall not exceed thirty percent (30%) of the reserve fund;
(c) In interest-bearing deposits and loans to or securities in any domestic bank doing
business in the Philippines: ​Provided, That in the case of such deposits, this shall not
2022 4.00 % ₱10,000.00 ₱80,000.00 exceed at any time the unimpaired capital and surplus or total private deposits of the
depository bank, whichever is smaller: ​Provided, further,​That the bank shall have been
designated as a depository for this purpose by the Monetary Board of the Bangko
2023 4.50 % ₱10,000.00 ₱90,000.00
Sentral ng Pilipinas;
(d) In preferred stocks of any solvent corporation or institution created or existing
2024 5.00 % ₱10,000.00 ₱100,000.00 under the laws of the Philippines listed in the stock exchange with proven track record
or profitability over the last three (3) years and payment of dividends for a period of at
least three (3) years immediately preceding the date of investment in such preferred
2025 5.00 % ₱10,000.00 ₱100,000.00 stocks;
(e) In common stocks of any solvent corporation or institution created or existing under
Provided, That for indirect contributors, premium subsidy shall be gradually adjusted the laws of the Philippines listed in the stock exchange with high growth opportunities
and included annually in the General Appropriations Act (GAA): ​Provided, further, That and earnings potentials;
the funds shall be released to PhilHealth: ​Provided,f​ urthermore; That the DOH, in (f) In bonds, securities, promissory notes, or other evidences of indebtedness of
coordination with PhilHealth, may request Congress to appropriate supplemental accredited and financially sound medical institutions exclusively to finance the
funding to meet targeted milestones of this Act: ​Provided, finally, That for every construction, improvement and maintenance of hospitals and other medical facilities:
increase in the rate of contribution of direct contributors and premium subsidy of Provided, That such securities and instruments shall be guaranteed by the Republic of
indirect contributors, PhilHealth shall provide for a corresponding increase in benefits. the Philippines or the issuing medical institution and the issued securities are both
Section 11. Program Reserve Funds.— PhilHealth shall set aside a portion of its rated triple ‘A’ by authorized accredited domestic rating agencies: ​Provided, further,
accumulated revenues not needed to meet the cost of the current year’s expenditures That said investments shall not exceed ten percent (10%) of the total reserve fund;
as reserve funds: ​Provided, That the total amount of reserves shall not exceed a and
ceiling equivalent to the amount actuarially estimated for two (2) years’ projected
(g) In debt instruments and other securities traded in the secondary markets with the Philippines, League of Cities of the Philippines and League of Municipalities of the
same intrinsic quality as those enumerated in paragraphs (a) to (e) hereof, subject to Philippines: ​Provided, That at least one (1) of the expert panel members and at least
the approval of the PhilHealth Board. two (2) of the sectoral panel members are women.
No portion of the reserve fund or income thereof shall accrue to the general fund of The sectoral and expert panel members must be Filipino citizens and of good moral
the National Government or to any of its agencies or instrumentalities, including character.
government-owned or -controlled corporations. The expert panel members must: (i) be of recognized probity and independence and
As part of its investments operations, PhilHealth may hire institutions with valid trust must have distinguished themselves professionally in public, civic or academic
licenses as its external local fund managers to manage the reserve fund, as it may service; (ii) be in the active practice of their professions for at least seven (7) years;
deem appropriate, through public bidding. The fund manager shall submit an annual and (iii) not be appointed within one (1) year after losing in the immediately preceding
report on investment performance to PhilHealth. elections, whether regular or special.
The PhilHealth shall set up the following funds: (b) The Secretary of Health shall be an ex officio nonvoting Chairperson of the Board.
(1) A fund to secure benefit payouts to members prior to their becoming lifetime (c) All appointive members of the Board shall be required to undergo training in health
members; care financing, health systems, costing health services and HTA prior to the start of
(2) A fund to secure payouts to lifetime members; and their term. Noncompliance shall be a ground for dismissal.
(3) A fund for optional supplemental benefits that are subject to additional Within thirty (30) days following the effectivity of this Act, the Governance Commission
contributions. for Government-Owned or -Controlled Corporations (GCG) shall, in accordance with
A portion of each of the above funds shall be identified as current and kept in liquid the provisions of Republic Act No. 10149, promulgate the nomination and selection
instruments. In no case shall said portion be considered part of invested assets. process for appointive members of the Board with a clear set of qualifications,
The PhilHealth shall allocate a portion of all contributions to the fund for lifetime credentials, and recommendation from the concerned sectors.
members based on an allocation to be determined by the PhilHealth actuary based on Section 14. ​President and Chief Executive Officer (CEO) of PhilHealth. - Upon the
a pre-determined percentage using the current average age of members and the recommendation of the Board, the President of the Philippines shall appoint the
current life expectancy and morbidity curve of Filipinos. President and CEO of PhilHealth from the Board’s non-ex officio members: ​Provided,
The PhilHealth shall manage the supplemental benefits and the lifetime members’ That the Board cannot recommend a President and CEO of PhilHealth unless the
fund in an actuarially sound manner. member is a Filipino citizen and must have at least seven (7) years of experience in
The PhilHealth shall manage the supplemental benefits fund to the minimum required the field of public health, management, finance, and health economics or a
to ensure that the supplemental benefit payments are secure. combination of any of these expertise.
Section 12. ​Administrative Expense. - No more than seven and one-half percent Section 15. ​PhilHealth Personnel as Public Health Workers. - All PhilHealth personnel
(7.5%) of the actual total premium collected from direct and indirect contributory shall be classified as public health workers in accordance with the pertinent provisions
members during the immediately preceding year shall be allotted for the administrative under Republic Act No. 7305, also known as the Magna Carta of Public Health
cost of implementing the Program. Workers.
Section 13.​ ​PhilHealth Board of Directors.​ - Section 16.​ ​Additional Powers and Functions of PhilHealth.​ -
(a) The PhilHealth Board of Directors, hereinafter referred to as the Board, is hereby (a) To fix the reasonable compensation, allowances and other benefits of all positions,
reconstituted to have a maximum of thirteen (13) members, consisting of the following: including its President and CEO, based on a comprehensive job analysis and audit of
(1) five (5) ex officio members, namely: the Secretary of Health, Secretary of Social actual duties and responsibilities, subject to the approval of the President of the
Welfare and Development, Secretary of Budget and Management, Secretary of Philippines. The compensation plan shall be comparable with government social
Finance, Secretary of Labor and Employment; (2) three (3) expert panel members with security institutions and shall be subject to periodic review by the Board no more than
expertise in public health, management, finance, and health economics; and (3) five once every four (4) years without prejudice to merit reviews or increases based on
(5) sectoral panel members, representing the direct contributors, indirect contributors, productivity and efficiency;
employers group, health care providers to be endorsed by their national associations (b) To establish the organizational structure and staffing pattern of PhilHealth’s central
of health care institutions and health care professionals, and representative of the and regional offices to cover as many provinces, cities and legislative districts,
elected local chief executives to be endorsed by the League of Provinces of the including foreign countries, whenever and wherever it may be expedient, necessary
and feasible and to inspect or cause to be inspected periodically such offices, subject ORGANIZATION OF LOCAL HEALTH SYSTEMS
to the approval by the Board; Section 19. ​Integration of Local Health Systems into Province-wide and City-wide
(c) To maintain a Provident Fund which consists of contributions made by both Health System. - The DOH, Department of the Interior and Local Government (DILG),
PhilHealth and its officials and employees and earnings thereon, for the payment of PhilHealth and the LGUs shall endeavor to integrate health systems into
benefits to such officials and employees or their dependents or heirs under such terms province-wide and city-wide health systems. The Provincial and City Health Boards
and conditions as may be prescribed by the Board, subject to the approval of the shall oversee and coordinate the integration of health services for province-wide and
President of the Philippines; and city-wide health systems, to be composed of municipal and component city health
(d) To adopt or approve the annual and supplemental budget of receipts and systems, and city-wide health systems in highly urbanized and independent
expenditures including salaries, allowances and early retirement of PhilHealth component cities, respectively. The Provincial and City Health Boards shall manage
personnel and to authorize such capital and operating expenditures and the Special Health Fund referred to in Section 20 of this Act and shall exercise
disbursements as may be necessary and proper for the effective management and administrative and technical supervision over health facilities and health human
operation of PhilHealth: ​Provided, That this shall be subject to the budgetary resources within their respective territorial jurisdiction: ​Provided, That municipalities
limitations stated under Section 12 hereof: ​Provided, further, That the submission of and cities included in the province-wide and city-wide health systems shall be entitled
the corporate budget to the Department of Budget and Management (DBM) shall be to a representative in the Provincial or City Health Board, as the case may be.
for information purposes only. Section 20. ​Special Health Fund. - The province-wide or city-wide health system shall
CHAPTER IV pool and manage, through a special health fund, all resources intended for health
HEALTH SERVICES DELIVERY services to finance population-based and individual-based health services, health
Section 17. ​Population-based Health Services. - The DOH shall endeavor to contract system operating costs, capital investments, and remuneration of additional health
province-wide and city-wide health systems for the delivery of population-based health workers and incentives for all health workers: ​Provided, That the DOH, in consultation
services. Province-wide and city-wide health systems shall have the following with the DBM and the LGUs, shall develop guidelines for the use of the Special Health
minimum components: Fund.
(a) Primary care provider network with patient records accessible throughout the Section 21. ​Income Derived from PhilHealth Payments. - All income derived from
health system; PhilHealth payments shall accrue to the Special Health Fund to be allocated by the
(b) Accurate, sensitive, and timely epidemiologic surveillance systems; and LGUs exclusively for the improvement of the LGU health system: ​Provided, That
(c) Proactive and effective health promotion programs or campaigns. PhilHealth payments shall be credited to the annual regular income (ARI) of the LGU.
Section 18.​ ​Individual-based Health Services.​ - Section 22. ​Incentives for Improving Competitiveness of the Public Health Service
(a) PhilHealth shall endeavor to contract public, private, or mixed health care provider Delivery System. - The National Government shall make available commensurate
networks for the delivery of individual-based health services: ​Provided, That member financial and non-financial matching grants, including capital outlay, human resources
access to services shall not be compromised: ​Provided, further, That these networks for health and health commodities, to improve the functionality of province-wide and
agree to service quality, co-payment/co-insurance, and data submission standards: city-wide health systems: ​Provided, That underserved and unserved areas shall be
Provided, furthermore, That during the transition, PhilHealth and DOH shall incentivize given priority in the allocation of grants: ​Provided, further, That the grants shall be in
health care providers that form networks: ​Provided, finally, That apex or end-referral accordance with the approved province-wide and city-wide health investment plans,
hospitals, as determined by the DOH, may be contracted as stand-alone health care which shall account for complementation of public and private health care providers
providers by PhilHealth. and public or private health sector investments.
(b) PhilHealth shall endeavor to shift to paying providers using performance-driven, CHAPTER VI
close-end, prospective payments based on disease or diagnosis related groupings HUMAN RESOURCES FOR HEALTH
and validated costing methodologies and without differentiating facility and Section 23. ​National Health Human Resource Master Plan. - The DOH, together with
professional fees; develop differential payment schemes that give due consideration to stakeholders, shall ensure the formulation and implementation of a National Health
service quality, efficiency and equity; and institute strong surveillance and audit Human Resource Master Plan that will provide policies and strategies for the
mechanisms to ensure networks’ compliance to contractual obligations. appropriate generation, recruitment, retraining, regulation, retention and reassessment
CHAPTER V of health workforce based on population health needs.
To ensure continuity in the provision of the health programs and services, all health (a) PhilHealth shall establish a rating system under an incentive scheme to
professionals and health care workers shall be guaranteed permanent employment acknowledge and reward health facilities that provide better service quality, efficiency
and competitive salaries. and equity: ​Provided, That PhilHealth shall recognize third party accreditation
Section 24. ​National Health Workforce Support System. - A national health workforce mechanisms and may use these as basis for granting incentives.
(NHW) support system shall be created to support local public health systems in (b) The DOH shall institute a licensing and regulatory system for stand-alone health
addressing their human resource needs: ​Provided, That deployment to Geographically facilities, including those providing ambulatory and primary care services, and other
Isolated and Disadvantaged Areas (GIDAs) shall be prioritized. modes of health service provision.
Section 25.​ ​Scholarship and Training Program.​ - (c) The DOH shall set standards for clinical care through the development, appraisal,
(a) The Commission on Higher Education (CHED), Technical Education and Skills and use of clinical practice guidelines in cooperation with professional societies and
Development Authority (TESDA), Professional Regulation Commission (PRC) and the the academe.
DOH shall develop and plan the expansion of existing and new allied and Section 28.​ ​Affordability.​ -
health-related degree and training programs including those for community-based (a) DOH-owned health care providers shall procure drugs and devices guided by price
health care workers and regulate the number of enrollees in each program based on reference indices, following centrally negotiated prices, sell them following the
the health needs of the population especially those in underserved areas. prescribed maximum mark-ups, and submit to DOH a price list of all drugs and
(b) The CHED and the DOH shall expand scholarship grants for allied and devices procured and sold by the health care provider.
health-related undergraduate and graduate programs: ​Provided, That scholarships (b) An independent price negotiation board, composed of representatives from the
shall be based on the needed cadre of national and local health managers and health DOH, PhilHealth and the Department of Trade and Industry (DTI), among others, shall
professionals: ​Provided, further, That scholarships for ​bona fide residents of unserved be constituted to negotiate prices on behalf of the DOH and PhilHealth, guided by
or underserved areas or members of indigenous peoples shall be given priority. certain parameters including new technology, innovator drugs, and sourced from a
(c) The PRC and the DOH, in coordination with duly-registered medical and allied single supplier: ​Provided, That the negotiated price in the framework contract shall be
health professional societies, shall set up a registry of medical and allied health applicable for all health care providers under DOH: ​Provided, further, That the price
professionals, indicating, among others, their current number of practitioners and negotiation board shall adhere to the guidelines issued by the Government
location of practice. Procurement Policy Board.
(d) The CHED, PRC, and DOH, in coordination with duly-registered medical and allied (c) Health care providers and facilities shall be required to make readily accessible to
professional societies, shall reorient medical and allied medical professional the public and submit to DOH and PhilHealth, all pertinent, relevant, and up-to-date
education, and health professional certification and regulation towards producing information regarding the prices of health services, and all goods and services being
health workers with competencies in the provision of primary care services. offered.
Section 26. ​Return Service Agreement. - All graduates of allied and health-related (d) Drug outlets shall be required at all times to carry the generic equivalent of all
courses who are recipients of government-funded scholarship programs shall be drugs in the Primary Care Formulary and shall be required to provide customers with a
required to serve in priority areas in the public sector for at least three (3) full years, list of therapeutic equivalents and then’ corresponding prices when fulfilling
with compensation, and under the supervision of the DOH: ​Provided, further, That prescriptions or in any transaction.
those who will serve for additional two (2) years shall be provided with additional (e) The DOH, PhilHealth, HMOs, life and non-life private health insurance (PHIs) shall
incentives as determined by the DOH: ​Provided, further, That graduates of allied and develop standard policies and plans that complement the Program’s benefit schedule:
health-related courses from state universities and colleges and private schools shall Provided, That a coordination mechanism between PhilHealth, PHIs and HMOs shall
be encouraged to serve in these areas. be set up to ensure that no benefits shall be unnecessarily dropped.
The DOH shall coordinate with the CHED and PRC for the effective implementation of Section 29.​ ​Equity.​ -
this section including the establishment of guidelines for noncompliance. (a) The DOH shall annually update its list of underserved areas, which shall be the
CHAPTER VII basis for preferential licensing of health facilities and contracting of health services.
REGULATION The DOH shall develop the framework and guidelines to determine the appropriate
Section 27.​ ​Safety and Quality.​ - bed capacity and number of health care professionals of public health facilities.
(b) The government shall guarantee that the distribution of health services and thereof, to the President of the Philippines, the Senate President, and the Speaker of
benefits provided for in this Act shall be equitable by prioritizing GIDAs in the provision the House of Representatives.
of assistance and support. Furthermore, the LGUs are also directed to enact stricter ordinances that strengthen
(c) All government hospitals are required to operate not less than ninety percent (90%) and broaden existing health policies, the laws to the contrary notwithstanding, and
of their bed capacity as basic or ward accommodation: ​Provided, That specialty implement effective programs that promote health literacy and healthy lifestyle among
hospitals are required to operate not less than seventy percent (70%) of then bed their constituencies to advance population health and individual wellbeing, reduce the
capacity as basic or ward accommodation: ​Provided, further, That private hospitals prevalence of non-communicable diseases and their risk factors, particularly tobacco
are required to operate not less than ten percent (10%) of then bed capacity as basic and alcohol use, lower the incidence of new infectious diseases, address mental
or ward accommodation: ​Provided, finally, That all government hospitals, specialty health issues and improve health indicators. An annual report on the policies adopted
hospitals and private hospitals shall regularly submit a report on the allotment or and programs undertaken and an assessment of the impact thereof shall be submitted
percentage of their bed capacity to basic or ward accommodation to DOH, which shall by the LGUs to the DILG.
issue the necessary guidelines for the immediate implementation of this provision. Section 31.​ ​Evidence-Informed Sectoral Policy and Planning for UHC.​ -
CHAPTER VIII (a) All public and private, national and local health-related entities shall be required to
GOVERNANCE AND ACCOUNTABILITY submit health and health-related data to PhilHealth including, among others,
Section 30. ​Health Promotion. - The DOH, as the overall steward for health care, shall administrative, public health, medical, pharmaceutical and health financing data:
strengthen national efforts in providing a comprehensive and coordinated approach to Provided, That PhilHealth shall furnish the DOH a copy of the health data: ​Provided,
health development with emphasis on scaling up health promotion and preventive further, That these shall be used for the purpose of generating information to guide
care.The DOH shall transform its existing Healthy Promotion and Communication research and policy-making: ​Provided, finally, That the DOH shall strengthen its
Service into a full-fledged Bureau, to be named as the Health Promotion Bureau, to research capability by supporting health systems development and reform initiatives
improve health literacy and mainstream health promotion and protection. through policy and systems research, and shall support the growth of research
The Health Promotion Bureau shall formulate a framework strategy for health consortia in line with the vision of the Philippine National Health Research System.
promotion which shall serve as the basis for DOH programs in increasing health (b) The DOH and Department of Science and Technology (DOST) shall develop a
literacy with focus on reducing non-communicable diseases, implement cadre of policy systems researchers, technical experts and managers by providing
population-wide health promotion programs and activities across social determinants training grants in glob ally-benchmarked institutions: ​Provided, That grantees shall be
of health, exercise policy coordination across government instrumentalities to ensure required to serve for at least three (3) full years, under supervision and with
the attainment of the framework strategy and its programs, and promote and provide compensation, in DOH, PhilHealth and other relevant government agencies: ​Provided,
technical support to local research and development programs and projects: ​Provided, further, That those who will serve for additional two (2) years, shall be provided with
That within two (2) years from the effectivity of this Act, the cost of implementing additional incentives as determined by the agency concerned.
health promotion programs shall be at least one percent (1%) of the DOH’s total (c) All health, nutrition and demographic-related administrative and survey data
budget appropriations. generated using public funds shall be considered public records and be made
The schools under the supervision of the Department of Education (DepEd) are accessible to the public unless otherwise prohibited by law: ​Provided, That any person
hereby designated as healthy settings for the purpose of this Act, The DepEd, in who requests a copy of such public records may be required to pay the actual costs of
coordination with DOH, shall formulate programs and modules on health literacy and reproduction and copying of the requested public records.
rights to be integrated into the existing school curricula to intensify the fight against the (d) Participatory action researches on cost-effective, high-impact interventions for
spread of communicable diseases and increase in prevalence of non-communicable health promotion and social mobilization shall form part of the national health research
diseases through, among others, the effective promotion of healthy lifestyle, physical agenda of the Philippine National Health Research System which shall also be
activity, proper nutrition, and prevention of smoking and alcohol consumption among mandated to provide adequate funding support for the conduct of these researches.
students. The program shall likewise acquaint the students on their entitlements, Section 32.​ ​Monitoring and Evaluation.​ -
privileges and responsibilities under this Act. (a) The Philippine Statistics Authority (PSA) shall conduct the relevant modules of
The DOH and DepEd shall submit annual reports on the health promotion and literacy household surveys annually during the first ten (10) years of the implementation, and
programs they have respectively implemented, including an assessment of the impact thereafter follow its regular schedule.
(b) The DOH shall publish annual provincial burden of disease estimates using (c) The HTAC, to be composed of health experts, shall be created within the DOH and
internationally validated estimation methods and biennially using actual public and supported by a Secretariat and a Technical Unit for Policy, Planning and Evaluation
private sector data from electronic records and disease registries, to support LGUs in with evidence generation and validation capacity. The HTAC shall: (1) facilitate
tracking progress of health outcomes. provision of financing and/or coverage recommendations on health technologies to be
Section 33. ​Health Impact Assessment (HIA). - HIA shall be required for policies, financed by DOH and Philhealth; (2) oversee and coordinate the HTA process within
programs, and projects that are crucial in attaining better health outcomes or those DOH and PhilHealth; and (3) review and assess existing DOH and PhilHealth benefit
that may have an impact on the health sector. packages. Within five (5) years after the establishment and effective operation of the
Section 34.​ ​Health Technology Assessment (HTA).​ - HTAC, it shall transition into an independent entity separate from the DOH, attached
(a) The HTA process shall be institutionalized as a fan’ and transparent priority setting to DOST.
mechanism that shall be recommendatory to the DOH and PhilHealth for the (d) The HTAC shall conduct the HTA in accordance with the principles, criteria and
development of policies and programs, regulation, and the determination of a range of procedures of this Act and ensure that its process is transparent, conducted with
entitlements such as drugs, medicines, pharmaceutical products, and other devices, reasonable promptness, and the result of its deliberations is made public. The HTAC
procedures and services as provided for under this Act: ​Provided, That investments on shall consist of a core committee and subcommittees.
any health technology or development of any benefit package by the DOH and The core committee, which shall elect from among themselves its Chairperson, shall
PhilHealth shall be based on the positive recommendations of the HTA: ​Provided, be composed of nine (9) voting members, namely: a public health epidemiologist; a
farther, That despite having undergone the HTA process, all health technology, health economist; an ethicist; a citizen’s representative; a sociologist or anthropologist;
intervention or benefit package shall still be subjected to periodic review: ​Provided, a clinical trial or research methods expert; a clinical epidemiologist or evidence-based
furthermore, That a health technology assessment may be conducted as new medicine expert; a medico-legal expert; and a public health expert.
evidence emerges which may have substantial impact on the initial coverage decision The subcommittees to be constituted shall include, among others: Drugs, Vaccines,
by the DOH or PhilHealth: ​Provided, finally, That the HTA process shall adhere to the Clinical Equipment and Devices, Medical and Surgical Procedure, Preventive and
principles of ethical soundness, inclusiveness and preferential regard for the Promotive Health Services, and Traditional Medicine. Each subcommittee shall have a
underserved, evidence-based and scientific defensibility, transparency and minimum of one (1) and maximum of three (3) non-voting members for each
accountability, efficiency, enforceability and availability of remedies, and due process. subcommittee.
(b) The following criteria must be observed in the conduct of HTA: The HTAC may call upon technical resource persons from the PhilHealth, Food and
(1) ​Responsiveness to Magnitude, Severity, and Equity. - The health interventions Drug Administration (FDA), patient groups and clinical medicine experts as regular
must address the top medical conditions that place the heaviest burden on the resource persons; and representatives from the private sector and health care
population, including dimensions of magnitude or the number of people affected by a providers as by-invitation resource persons.
health problem, and severity or health loss by an individual as a result of disease, (e) The HTAC’s core committee and subcommittee members shall be appointed by
such as death, handicap, disability or pain, and conditions of the poorest and most the Secretary of Health for a term of three (3) years except for the medico-legal
vulnerable population; expert, ethicist, and the sociologist or anthropologist who shall serve for a term of four
(2) ​Safety and Effectiveness. - Each intervention must have undergone Phase IV (4) years: ​Provided, That no member shall serve for more than three (3) consecutive
clinical trial, and systematic review and meta-analysis must be readily available. The terms: ​Provided, further, That the members of the HTAC shall receive an honorarium
interventions must also not pose any harm to the users and health care providers; in accordance with existing policies: ​Provided, furthermore, That the DOH shall
(3) ​Household Financial Impact. - The interventions must reduce out-of-pocket promulgate the nomination process for all HTAC members with a clear set of
expenses. Interventions must have economic studies and cost-of-illness studies to qualifications, credentials and recommendations from the sectors concerned:
satisfy this criterion; Provided, finally, That the Secretary of the DOST shall appoint the members of the
(4) ​Cost-effectiveness. - The interventions must provide overall health gain to the HTAC upon its transition into an attached agency under DOST.
health system and outweigh the opportunity costs of funding drug and technology; and Section 35. ​Ethics in Public Health Policy and Practice. - The implementation of UHC
(5) ​Affordability and Viability. - The interventions must be affordable and the cost shall be strengthened by commitment of all stakeholders to abide by ethical principles
thereof must be viable to the financing agents. in public health practice:
(a) Conflict of interest declaration and management shall be routine in all The amount necessary to implement the provisions of this Act shall be included in the
policy-determining activities, and applicable to all appointed decision-makers, GAA and shall be appropriated under the DOH and National Government subsidy to
policymakers and then staff. PhilHealth. In addition, the DOH, in coordination with PhilHealth, may request
(b) All manufacturers of drugs, medical devices, biological and medical supplies Congress to appropriate supplemental funding to meet targeted milestones of this Act.
registered by the FDA shall collect and track all financial relationships with health care CHAPTER X
professionals and health care providers and report these to the DOH, which shall then PENAL PROVISIONS
make this list publicly available in accordance with existing laws. Section 38. ​Penal Provisions. - Any violation of the provisions of this Act, after due
(c) A public health ethics committee shall be constituted as an advisory body to the notice and hearing, shall suffer the corresponding penalties as herein provided:
Secretary of Health to ensure compliance with the provision of this section. (a) A health care provider of population-based health services who violates any of the
Section 36. ​Health Information System. - All health service providers and insurers provision in its respective contract shall be subject to sanctions and penalties under its
shall each maintain a health information system consisting of enterprise resource respective contracts without prejudice to the right of the government to institute any
planning, human resource information, electronic health records, and an electronic criminal or civil action before the proper judicial body.
prescription log consistent with DOH standards, which shall be electronically uploaded (b) A health care provider contracted for the provision of individual-based health
on a regular basis through interoperable systems: ​Provided, That the health services who commits an unethical act, abuses the authority vested upon the health
information system shall be developed and funded by the DOH and PhilHealth: care provider, or performs a fraudulent act shall be punished by a fine of Two hundred
Provided, further, That patient privacy and confidentiality shall at all times be upheld, thousand pesos (₱200,000.00) for each count, or suspension of contract up to three
in accordance with the Data Privacy Act of 2012. (3) months or the remaining period of its contract or accreditation whichever is shorter,
CHAPTER IX or both, at the discretion of the PhilHealth, taking into consideration the gravity of the
APPROPRIATIONS offense.
Section 37. ​Appropriations. - The amount necessary to implement this Act shall be The same shall also constitute a criminal violation punishable by imprisonment for six
sourced from the following: (6) months and one (1) day up to six (6) years, upon discretion of the court without
(a) Total incremental sin tax collections as provided for in Republic Act No. 10351, prejudice to criminal liability defined under the Revised Penal Code.
otherwise known as the "Sin Tax Reform Law": ​Provided, That the mandated If the health care provider is a juridical person, its officers and employees or other
earmarks as provided for in Republic Act Nos. 7171 and 8240 shall be retained; representatives found to be responsible, who acted negligently or with intent, or have
(b) Fifty percent (50%) of the National Government share from the income of the directly or indirectly caused the commission of the violation, shall be liable. Recidivists
Philippine Amusement Gaming Corporation (PAGCOR) as provided for in Presidential may no longer be contracted as participants of the Program.
Decree No. 1869, as amended: ​Provided,T ​ hat the funds raised for this purpose shall (c) A member who commits any violation of this Act or knowingly and deliberately
be transferred to PhilHealth at the end of each quarter subject to the usual budgeting, cooperates or agrees, whether explicitly or implicitly, to the commission of a violation
accounting and auditing rules and regulations: ​Provided, further, That the funds shall by a contracted health care provider or employer as defined in this section, including
be used by PhilHealth to improve its benefit packages; the filing of a fraudulent claim for benefits or entitlement under this Act, shall be
(c) Forty percent (40%) of the Charity Fund, net of Documentary Stamp Tax punished by a fine of Fifty thousand pesos (₱50,000.00) for each count or suspension
Payments, and mandatory contributions of the Philippine Charity Sweepstakes Office from availment of the benefits of the Program for not less than three (3) months but
(PCSO) as provided for in Republic Act No. 1169, as amended: ​Provided, That the not more than six (6) months, or both, at the discretion of PhilHealth.
funds raised for this purpose shall be transferred to PhilHealth at the end of each (d) Any employer who:
quarter subject to the usual budgeting, accounting, and auditing rules and regulations: (1) Deliberately or through inexcusable negligence, fails or refuses to register
Provided, further,​That the funds shall be used by PhilHealth to improve its benefit employees regardless of their employment status, accurately and timely deduct
packages; contributions from the employee’s compensation or to accurately and timely remit or
(d) Premium contributions of members; submit the report of the same to PhilHealth shall be punished with a fine of Fifty
(e) Annual appropriations of the DOH included in the GAA; and thousand pesos (₱50,000.00) for every violation per affected employee, or
(f) National Government subsidy to PhilHealth included in the GAA. imprisonment of not less than six (6) months but not more than one (1) year, or both
such fine and imprisonment, at the discretion of the court.
Any employer or any officer authorized to collect contributions under this Act who, All other violations involving funds of PhilHealth shall be governed by the applicable
after collecting or deducting the monthly contributions from the employee’s provisions of the Revised Penal Code or other laws, taking into consideration the rules
compensation, fails or refuses for whatever reason to accurately and timely remit the on collection, remittances, and investment of funds as may be promulgated by
contributions to PhilHealth within thirty (30) days from due date shall be presumed PhilHealth.
prima facie to have misappropriated the same and is obligated to hold the same in PhilHealth may enumerate circumstances that will mitigate or aggravate the liability of
trust for and in behalf of the employees and PhilHealth, and is immediately obligated the offender or erring health care provider, member or employer.
to return or remit the amount.​1âwphi1 Despite the cessation of operation by a health care provider or termination of practice
If the employer is a juridical person, its officers and employees or other of an independent health care professional while the complaint is being heard, the
representatives found to be responsible, whether they acted negligently or with intent, proceeding shall continue until the resolution of the case.
or have directly or indirectly caused the commission of the violation, shall be liable. CHAPTER XI
(2) Deducts, directly or indirectly, from the compensation of the covered employees or MISCELLANEOUS PROVISIONS
otherwise recover from them the employer’s own contribution on behalf of such Section 39. ​Oversight Provision. - There is hereby created a Joint Congressional
employees shall be punished with a fine of Five thousand pesos (₱5,000.00) multiplied Oversight Committee on Universal Health Care to conduct a regular review, of the
by the total number of affected employees or imprisonment of not less than six (6) implementation of this Act which shall entail a systematic evaluation of the
months but not more than one (1) year, or both such fine and imprisonment, at the performance, impact or accomplishments of this Act and the performance of the
discretion of the court. various agencies involved in realizing universal health care, particularly with respect to
If the unlawful deduction is committed by an association, partnership, corporation or their roles and functions.
any other institution, its managing directors or partners or president or general The Joint Congressional Oversight Committee shall be jointly chaired by the
manager, or other persons responsible for the commission of the act shall be liable for Chairpersons of the Senate Committee on Health and Demography and the House of
the penalties provided for in this Act. Representatives Committee on Health. It shall be composed of five (5) members from
(e) Any director, officer or employee of PhilHealth who: the Senate and five (5) members from the House of Representatives, to be appointed
(1) Without prior authority or contrary to the provisions of this Act or its IRR, wrongfully by the Senate President and the Speaker of the House of Representatives,
receives or keeps funds or property payable or deliverable to the PhilHealth, and who respectively.
appropriates and applies such fund or property for personal use, or shall willingly or The National Economic and Development Authority, in coordination with the PSA,
negligently consents either expressly or implicitly to the misappropriation of funds or National Institutes of Health, and other academic institutions shall undertake studies to
property without objecting to the same and promptly reporting the. matter to proper validate and evaluate the accomplishments of this Act. These validation studies and
authority, shall be liable for misappropriation of funds under this Act and shall be annual reports, on the performance of the DOH and PhilHealth shall be submitted to
punished with a fine equivalent to triple the amount misappropriated per count and the Joint Congressional Oversight Committee.
suspension for three (3) months without pay. The DOH and PhilHealth shall allocate an adequate funding for the purpose of
(2) Commits an unethical act, abuse of authority, or performs a fraudulent act shall be conducting these studies.
punished by a fine of Two hundred thousand pesos (₱200,000.00) or suspension for The Joint Congressional Oversight Committee shall commission an independent study
three to evaluate the implementation of this Act.
(3) months without pay, or both, at the discretion of PhilHealth, taking into Section 40. ​Performance Monitoring Division. - The DOH shall establish a
consideration the gravity of the offense. The same shall also constitute a criminal Performance Monitoring Division to monitor and evaluate the proper and effective
violation punishable by imprisonment for six (6) months and one (1) day up to six (6) implementation of the provisions of this Act. The office in charge of field
years, upon discretion of the court without prejudice to criminal liability defined under implementation performance of the DOH shall comprise the core personnel of the
the Revised Penal Code. office which shall be augmented by the DOH Secretary, as may be deemed
Other violations of the provisions of this Act or of the rules and regulations necessary.
promulgated by PhilHealth shall be punished with a fine of not less than Five thousand Section 41.​ ​Transitory Provision.​ -
pesos (₱5,000.00) but not more than Twenty thousand pesos (₱20,000.00). (a) Within thirty (30) days from the effectivity of this Act, the President of the
Philippines shall appoint the new members of the Board and the President of
PhilHealth. The existing board of directors shall serve in a hold-over capacity until a (h) Within three (3) years from the effectivity of this Act, all private insurance
full and permanent board of directors of PhilHealth is constituted and functioning. companies and HMOs, together with DOH and PhilHealth, shall have developed a
(b) All officers and personnel of PhilHealth, except members of the Board who shall be system of co-payment that complements PhilHealth benefit packages.
governed by the first paragraph of this section, shall continue to perform their duties (i) Within ten (10) years from the effectivity of this Act, only those who have been
and responsibilities and receive their corresponding salaries and benefits. The certified by the DOH and PRC to be capable of providing primary care will be eligible
approval of this Act shall not cause any demotion in rank or diminution of salary, to be a primary care provider.
benefits and other privileges of the incumbent personnel of PhilHealth: ​Provided, That (j) For the first two (2) years from the effectivity of this Act, the PCSO shall transfer at
qualified officers and personnel may voluntarily elect for retirement or separation from least fifty percent (50%) of the forty percent (40%) of the charity fund per year, in
service and shall be entitled to the benefits under existing laws.​1âwphi1 accordance with Section 37(c) of this Act, to enable the PCSO to conclude and
(c) All affected officers and personnel of the PCSO shall be absorbed by the agency liquidate its Individual Medical Assistance Program At-Source-ang-Processing
without demotion in rank or diminution of salary, benefits and other privileges: (IMAP-ASAP) obligations.
Provided, That qualified officers and personnel of the agency may voluntarily elect for Section 42. ​Interpretation. - All doubts in the implementation and interpretation of this
retirement or separation from service based on PCSO Board-approved Early Act, including its IRR, shall be resolved in favor of upholding the rights and interests of
Retirement Incentive Program (ERIP), utilizing internally-generated funds, or savings every Filipino to quality, accessible and affordable health care.
from its operating fund: ​Provided, finally, That the retirement benefit package shall be Nothing in this Act shall be construed to eliminate or in any way diminish Program
reasonable and within the bounds of existing laws. benefits being enjoyed at the time of promulgation of this Act.
(d) In the first six (6) years from the enactment of this Act, the National Government Section 43. ​Implementing Rules and Regulations (IRR). - The DOH and the
shall provide technical and financial support to selected LGUs that commit to PhilHealth, in consultation and coordination with appropriate national government
province-wide integration, subject to further review after the lapse of six (6) years: agencies, civil society organizations, nongovernment organizations, private sector
Provided, That in the first three (3) years from the enactment of this Act, the representatives, and other stakeholders, shall promulgate the necessary rules and
province-wide and city-wide systems shall exhibit managerial integration: ​Provided, regulations for the effective implementation of this Act no later than one hundred
further, That within the next three (3) years thereafter, the province-wide and city-wide eighty (180) days upon the effectivity of this Act.​1avvphi1
systems shall exhibit financial integration: ​Provided, finally, That upon positive Section 44. ​Separability Clause. - If any part or provision of this Act is held invalid or
recommendation by an independent study commissioned by the Joint Congressional unconstitutional, the remaining parts or provisions not affected shall remain in full
Oversight Committee on Universal Health Care of the overall benefit of province-wide force and effect.
integration and the positive recommendation of the Secretary of Health, all local health Section 45. ​Repealing Clause. - The pertinent provisions of the following laws are
systems shall be integrated as prescribed by Section 19 of this Act through the hereby amended accordingly:
issuance of an Executive Order by the President. (a) Sections 6, 7, 10, 12, 16(n), 18, 19, 25, 26, 27, 28, 44, 45, 46, 47, 48 and 54 of
(e) In the first ten (10) years from the enactment of this Act, PhilHealth may outsource Republic Act No. 7875, otherwise known as the "National Health Insurance Act of
certain functions to ensure operational efficiency and towards the fulfillment of this Act: 1995", as amended by Republic Act No. 9241 and Republic Act No. 10606;
Provided, That any outsourcing shall comply with the provisions of Republic Act No. (b) Section 8(c) of Republic Act No. 10351, otherwise known as the "Sin Tax Reform
9184, otherwise known as the "Government Procurement Reform Act", and its IRR. Law";
(f) In the first three (3) years from the enactment of this Act, PhilHealth and DOH shall (c) Presidential Decree No. 1869, otherwise known as the PAGCOR Charter, as
provide reasonable financial and licensing incentives to contracted health care amended; and
facilities to form health care provider networks. Thereafter, these incentives shall be (d) Republic Act No. 1169, otherwise known as the PCSO Charter, as amended, with
withdrawn and providers shall be fully subject to the provisions of Section 19 of this respect to the provision of Section 37 of this Act.
Act. All other laws, decrees, executive orders and rules and regulations contrary to or
(g) The HTAC under the DOH shall be established within one (1) year from the inconsistent with the provisions of this Act are hereby repealed or amended
effectivity of this Act: ​Provided,​That the existing health benefit package shall be accordingly.
rationalized within two (2) years from the establishment of the HTAC. Section 46. ​Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in any newspaper of general circulation.
 absence of thie Finance Secretary, the Secretary of Labor and Employment, as ex
officio member, and six (6) appointive members, three (3) of whom shall represent the
workers’ group, at least one (1) of whom shall be a woman; three (3), the employers’
group, at least one (1) of whom shall be a woman; all of whom shall be appointed by
the President of the Philippines and shall be of known competence, probity, integrity
Seventeenth Congress
and recognized expertise in any of the fields of social security, pension fund,
Third Regular Session
insurance, investment, banking and finance, economics, management, law or actuarial
Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
science and with at least ten (10) years of managerial or leadership experience. The
thousand eighteen.
six (6) members representing workers and employers groups shall be chosen from
REPUBLIC ACT No. 11199
among the nominees of workers’ and employers’ organizations respectively, as
An Act Rationalizing and Expanding the Powers and Duties of the Social
endorsed by the Governance Commission for GOCCs following the fit and proper rule
Security Commission to Ensure the Long-Term Viability of the Social Security
and standards on integrity, experience, education, training and competence. The term
System, Repealing for the Purpose Republic Act No. 1161, as Amended by
of office of the regular appointive members of the Commission shall be three (3)
Republic Act No. 8282, Otherwise Known as the "Social Security Act of 1997"
years, which can be extended for another term of three (3) years: ​Provided, That the
Be it enacted by the Senate and House of Representatives of the Philippine Congress
terms of the first six (6) appointive members shall be one (1), two (2), and three (3)
Assembled:
years for every two (2) members, respectively, notwithstanding Section 17 of the GCG
Section 1.​ ​Short Title.​ - This Act shall be known as the "Social Security Act of 2018".
Law: ​Provided, further, That they shall continue to hold Office until their successors
Section 2. ​Declaration of Policy. - It is the policy of the State to establish, develop,
shall have been appointed and duly qualified. All vacancies, prior to the expiration of
promote and perfect a sound and viable tax-exempt social security system suitable to
the term, shall be filled for the unexpired term only.
the needs of the people throughout the Philippines which shall promote social justice
The fiduciary duties of a member of the Commission include the following:
through savings, and ensure meaningful social security protection to members and
(1) Act with utmost and undivided loyalty to the SSS;
their beneficiaries against the hazards of disability, sickness, maternity, old age,
(2) Act with due care, extraordinary diligence and skill in the conduct of business and
death, and other contingencies resulting in loss of income or financial burden.
exercise utmost good faith in all transactions relating to his/her duties to the SSS and
Towards this end. the State shall endeavor to extend social security protection to
its properties, and in his/her dealings with and for the SSS he/she is held to the same
Filipino workers, local or overseas, and their beneficiaries.
strict rule of honesty and fair dealing between himself/herself and his/her principal as
In the pursuit of this policy, a social security program shall be developed emphasizing
other agent;
the value of "work, save, invest and prosper". The maximum profitability of investible
(3) Act for the benefit of the SSS and not for his/her own benefit;
funds and resources of the program shall be ensured through a culture of excellence
(4) Not to profit as individual by virtue of his/her position and ensure that profits
in management grounded upon sound and efficient policies employing internationally
received by him/her from the SSS properties or businesses revert to the SSS and to
recognized best practices.
hold the same as trustee for the benefit of the SSS and its members;
Section 3.​ ​Social Security System​ -
(5) Avoid conflicts of interest and not to acquire an interest adverse to or in conflict
(a) To carry out the purposes of this Act, the Social Security System, hereinafter
with that of the SSS. while acting for the SSS or when dealing individually with third
referred to as "SSS", a corporate body, with principal place of business in Metro
persons and declare any interest he/she may have in any particular matter before the
Manila, Philippines, is hereby created. In the discharge of its mandated responsibilities
Commission; and
under this Act, the SSS shall function and operate as an independent and accountable
(6) Apply sound business principles to ensure the financial soundness of the SSS.
government-owned and -controlled corporation (GOCC) within the corporate
The compensation, per diems allowances and incentives of the appointive members of
governance standards and principles of Republic Act No. 10149 (GCG Law), except
the Commission shall be in accordance with and subject to GCG Law.
as otherwise provided herein.
(b) The general conduct of the operations and management functions of the SSS shall
The SSS shall be directed and controlled by a Social Security Commission,
be vested in the SSS President who shall serve as the Chief Executive Officer
hereinafter referred to as "Commission", composed of the Secretary of Finance as ex
immediately responsible for carrying out the program of the SSS and the policies of
officio Chairperson, the SSS President and Chief Executive Officer as
the Commission. The SSS President shall be appointed by the President of the
Vice-Chairperson who shall automatically act as the Commission Chairperson in the
Philippines and shall be a person of known competence, probity, integrity and (1) To formulate, adopt, amend and/or rescind such rules and regulations as may be
recognized expertise in social security, pension fund, insurance, investment, banking necessary to carry out the provisions and purposes of this Act;
and finance, economics, management, law or actuarial science. (2) To establish a Provident Fund for the members which will consist of contributions
The SSS President may be removed for a valid cause or any of the following reasons of employers and employees, self-employed, OFW and voluntary members based on
in accordance with the requirement of due process: (i) the SSS contribution rate in excess of twelve percent (12%), or (ii) monthly salary
(1) If he or she becomes physically or mentally incapacitated from discharging the credit in excess of Twenty thousand pesos (₱20,000.00) up to the prescribed
duties and responsibilities of the office, and such incapacity has lasted for more than maximum monthly salary credit and their earnings, for the payment of benefits to such
six (6) months; members or their beneficiaries in addition to the benefits provided for under this Act:
(2) If he or she is guilty of acts or omissions which are of fraudulent or illegal character Provided, That a member may contribute voluntarily in excess of the prescribed SSS
or which are manifestly opposed to the aims and interests of the SSS; contribution rate and/or the maximum monthly salary credit, subject to such rules and
(3) If he or she no longer possess the qualifications specified in this Act; regulations as the Commission may promulgate;
(4) If he or she does not meet the standards of performance based on the evaluation (3) To maintain a Provident Fund which consists of contributions made by both the
by the Governance Commission for GOCCs under the GCG Law. SSS and its officials and employees and their earnings, for the payment of benefits to
(c) An Office of the Actuary shall be created to conduct the necessary actuarial studies such officials and employees or their heirs under such terms and conditions as it may
and present recommendations on premiums, investments and other related matters. prescribe;
The Commission, upon the recommendation of the SSS President, shall appoint the (4) To conduct continuing actuarial and statistical studies and valuations to determine
Chief Actuary and such other personnel as may be deemed necessary; prescribe their the financial condition of the SSS and taking into consideration such studies and
duties and establish such methods and procedures as may be necessary to ensure valuations and the limitations herein provided, to readjust the benefits, contributions,
the efficient, honest and economical administration of the provisions and purposes of premium rates, interest rates or the allocation or reallocation of the funds to the
this Act: ​Provided, however, That the personnel of the SSS below the rank of contingencies covered;
Vice-President shall be appointed by the SSS President: ​Provided, further, That the (5) To approve restructuring proposals for the payment of due but unremitted
personnel appointed by the SSS President, except those below the rank of assistant contributions and unpaid loan amortizations under such terms and conditions as it
manager, shall be subject to the confirmation by the Commission: ​Provided, further may prescribe;
That the personnel of the SSS shall be selected only from civil service eligibles and be (6) To authorize cooperatives registered with the Cooperative Development Authority
subject to civil service rules and regulations: ​Provided, finally, That the SSS shall be or associations registered with the appropriate government agency to act as collecting
exempt from the provisions of Republic Act No. 6758 and Republic Act No. 7430. agents of the SSS with respect to their members: ​Provided, That the SSS shall
The Chief Actuary of the SSS can only be removed by just causes which include accredit the cooperative or association: ​Provided, further, That the persons authorized
among others gross incompetence, gross inefficiency, disloyalty, conflict of interest, to collect are bonded;
dishonesty and serious misconduct. (7) To compromise or release, in whole or in part, any interest, penalty or any civil
(d) The Commission shall fix the reasonable compensation, allowances and other liability to SSS in connection with the investments authorized under Section 26 hereof,
benefits of all positions in the SSS, including its President and Chief Executive Officer, under such terms and conditions as it may prescribe;
based on a comprehensive job analysis and audit of actual duties and responsibilities. (8) Any law to the contrary notwithstanding, to condone, enter into a compromise or
The compensation plan shall be comparable with the prevailing compensation plan in release, in whole or in part, such penalties imposed upon delinquent social security
the Government Service Insurance System (GSIS), the Bangko Sentral ng Pilipinas contributions regardless of the amount involved under such valid terms and conditions
(BSP) and other government financial institutions and shall be subject to periodic it may prescribe through rules and regulations when the financial position of the
review by the Commission no more than once every four (4) years without prejudice to employer demonstrates a clear inability to pay the assessed delinquency arising from
merit reviews or increases based on productivity and efficiency. economic crisis, serious business losses or financial reverses, or resulting from
Section 4.​ ​Powers and Duties of the Commission and SSS​ - natural calamity or man-made disaster without fault on the part of the employer.
(a) The Commission. - For the attainment of its main objectives as set forth in Section Provided, That the Social Security Commission shall, immediately after the passage of
2 hereof, the Commission shall have the following powers and duties: this Act. institute a condonation of penalties of delinquent employers under Republic
Act No. 10361, subject to such rules and regulations as the Social Security on their actual monthly salary: ​Provided, further,T ​ hat members, who are subject to
Commission may provide. compulsory coverage and receiving a monthly income lower than the minimum
The Commission shall submit to the Office of the President of the Philippines, the monthly salary credit or more than the maximum monthly salary credit, and their
Senate and the House of Representatives an annual report on the exercise of the employers, shall pay the SSS contributions based on the current minimum monthly
powers under this provision, stating therein the following facts and information, among salary credit or the maximum monthly salary credit, respectively, as provided in this
others: names and addresses of employers whose penalty delinquencies have been Act.
subjected to compromise or condonation; amount involved; amount compromised or The rate of penalty on unpaid loan amortizations shall be determined and fixed by the
condoned and the underlying reasons and justifications thereon, to determine that said Commission from time to time through rules and regulations on the basis of applicable
powers are reasonably exercised and that the SSS is not unduly prejudiced; actuarial studies, rate of benefits, inflation, and other relevant socioeconomic data;
(9) To implement the rate of contributions as well as the minimum and maximum (10) To develop and administer a special social security program for workers, with
monthly salary credits in accordance with the following schedule effective January of unique economic, social, and geographic situations, as determined by the
the year of implementation as follows: Commission; ​Provided, That the program may have different contributions and
benefits that are proportionately calculated which must be fair, equitable, actuarially
Share Monthly Salary
sound and viable: ​Provided, further That the special program shall enjoy the same
Credit
legal privileges as the regular social security program; and
(11) To approve, confirm, pass upon or review any and all actions of the SSS in the
Year of Contribution Employ Employ Minimu Maximu
proper and necessary exercise of its powers and duties hereinafter enumerated.
Implementation Rate er ee m m
(b) The Social Security System.— Subject to the provision of Section 4, Subsection
2019 12% 8% 4% ₱2,000.0 ₱20,000. (a)(ll) hereof, the SSS shall have the following powers and duties:
0 00 (1) To submit annually not later than April 30, a public report to the President of the
Philippines and to the Congress of the Philippines covering its activities in the
2020 12% 8% 4% ₱2,000.0 ₱20,000. administration and enforcement of this Act during the preceding year including
0 00 information and recommendations on broad policies for the development and
perfection of the program of the SSS;
2021 13% 8.5% 4.5% ₱3,000.0 ₱25,000. (2) To require the Chief Actuary to submit a valuation report on the SSS benefit
0 00 program every three (3) years, or more frequently as may be necessary, to undertake
the necessary actuarial studies and calculations concerning increases in benefits
2022 13% 8.5% 4.5% ₱3,000.0 ₱25,000. taking into account inflation and the financial stability of the SSS, the individual income
0 00 gap and poverty threshold for the elderly, similar benefits provided by other social
protection programs of the government: and to provide for feasible increases in
2023 14% 9.5% 4.5% ₱4,000.0 ₱30,000. benefits every four (4) years, including the addition of new ones, under such rules and
0 00 regulations as the Commission may adopt: ​Provided, That the actuarial soundness of
the reserve fund shall be guaranteed;
2024 14% 9.5% 4.5% ₱4,000.0 ₱30,000. (3) To establish offices of the SSS to cover as many provinces, cities and
0 00 congressional districts, including foreign countries whenever and wherever it may be
expedient, necessary and feasible, and to inspect or cause to be inspected
2025 15% 10% 5% ₱5,000.0 ₱35,000. periodically such offices;
0 00 (4) To enter into agreements or contracts for such service and aid, as may be needed
for the proper, efficient and stable administration of the SSS;
Provided, That the domestic workers or "kasambahays" as defined under Republic Act
(5) To adopt or approve the annual and supplemental budget of receipts and
No. 10361 or the Batas Kasambahay who are receiving a monthly income lower than
expenditures including salaries and allowances of the SSS personnel, against all
minimum monthly salary credit prescribed under this Act shall pay contributions based
funds available to the SSS under this Act, and to authorize such capital and operating (c) Court Review. - The decision of the Commission upon any disputed matter may be
expenditures and disbursements of the SSS as may be necessary and proper for the reviewed both upon the law and the facts by the Court of Appeals. For the purpose of
effective management and operation of the SSS; such review, the procedure concerning appeals from the Regional Trial Court shall be
(6) To set up its accounting system and provide the necessary personnel therefor; followed as far as practicable and consistent with the purposes of this Act. Appeal
(7) To require reports, compilations and analyses of statistical and economic data and from a decision of the Commission must be taken within fifteen (15) days from
to make investigations as may be needed for the proper administration and notification of such decision. If the decision of the Commission involves only questions
development of the SSS: of law, the same shall be reviewed by the Supreme Court. No appeal bond shall be
(8) To acquire, develop and dispose of property, real or personal, on its own, or required. The case shall be heard in a summary manner, and shall take precedence
through a joint venture arrangement with the public and/or private sector, which may over all cases, except that in the Supreme Court, criminal cases wherein life
be necessary or expedient for the attainment of the purposes of this Act: imprisonment or death has been imposed by the trial court shall take precedence. No
No injunction or restraining order issued by any court, tribunal or office shall bar, appeal shall act as a supersedeas or a stay of the order of the Commission unless the
impede or delay the sale, development or disposition by the SSS of its property except Commission itself, or the Courfc of Appeals or the Supreme Court, shall so order.
on questions of ownership and national or public interest; (d) Execution of Decisions. - The Commission may, motu proprio or on motion of any
(9) To acquire, receive, or hold, by way of purchase, expropriation or otherwise, public interested party, issue a writ of execution to enforce any of its decisions or awards,
or private property for the purpose of undertaking housing projects preferably for the after it has become final and executory, in the same manner as the decision of the
benefit of low-income members and for the maintenance of hospitals and institutions Regional Trial Court by directing the city or provincial sheriff or the sheriff whom it may
for the sick, aged and disabled, as well as schools for the members and them appoint to enforce such final decision or execute such writ; and any person who shall
immediate families; fail or refuse to comply with such decision, award or writ, after being required to do so
(10) To enter into agreement with the GSIS or any other entity, enterprise, corporation shall, upon application by the Commission pursuant to Rule 71 of the Rules of Court,
or partnership for the benefit of members transferring from one system to another be punished for contempt.
subject to the provision of Republic Act No. 7699, otherwise known as the Portability Section 6.​ ​Auditor and Counsel.​ -
Law; (a) The Chairman of the Commission on Audit shall be the ex officio Auditor of the
(11) To sue and be sued in court; and SSS. He or his representative shall check and audit all the accounts, funds and
(12) To perform such other corporate acts as it may deem appropriate for the proper properties of the SSS in the same manner and as frequently as the accounts, funds
enforcement of this Act. and properties of the government are checked and audited under existing laws, and
Section 5.​ ​Settlement of Disputes​ - he shall have, as far as practicable, the same powers and duties as he has with
(a) Any dispute arising under this Act with respect to coverage, benefits, contributions respect to the checking and auditing of public accounts, funds and properties in
and penalties thereon or any other matter related thereto, shall be cognizable by the general.
Commission, and any case filed with respect thereto shall be heard by the (b) The Secretary of Justice shall be the ex officio counsel of the SSS. He or his
Commission, or any of its members, or by hearing officers duly authorized by the representative shall act as legal adviser and counsel thereof.
Commission and decided within the mandatory period of twenty (20) days after the Section 7. ​Oaths, Witnesses, and Production of Records. - When authorized by the
submission of the evidence. The filing, determination and settlement of disputes shall Commission, an official or employee thereof shall have the power to administer oath
be governed by the rules and regulations promulgated by the Commission. and affirmation, take depositions, certify to official acts, and issue subpoena and
(b) Appeal to Courts. - Any decision of the Commission, in the absence of an appeal subpoena duces tecum to compel the attendance of witnesses and the production of
therefrom as herein provided, shall become final and executory fifteen (15) days after books, papers, correspondence and other records deemed necessary as evidence in
the date of notification, and judicial review thereof shall be permitted only after any connection with any question arising under this Act. Any case of contumacy shall be
party claiming to be aggrieved thereby has exhausted his remedies before the dealt with by the Commission in accordance with law.
Commission. The Commission shall be deemed to be a party to any judicial action Section 8. ​Terms Defined. - For purposes of this Act, the following terms shall, unless
involving any such decision, and may be represented by an attorney employed by the the context indicates otherwise, have the following meanings:
Commission, or when requested by the Commission, by the Solicitor General or any (a) SSS – The Social Security System created by this Act.
public prosecutor. (b) Commission – The Social Security Commission as herein created.
(c) Employer – Any person, natural or juridical, domestic or foreign, who carries on in wholly-owned instrumentality employing workers in the Philippines or employing
the Philippines any trade, business, industry, undertaking, or activity of any kind and Filipinos outside of the Philippines, may enter into an agreement with the Philippine
uses the services of another person who is under his orders as regards the Government for the inclusion of such employees in the SSS except those already
employment, except the government and any of its political subdivisions, branches or covered by their respective civil service retirement systems: ​Provided, further, That the
instrumentalities, including corporations owned or controlled by the Government: terms of such agreement shall conform with the provisions of this Act on coverage and
Provided, That a self-employed person shall be both employee and employer at the amount of payment of contributions and benefits: ​Provided, finally, That the provisions
same time. of this Act shall be supplementary to any such agreement; and
(d) Employee – Any person who performs services for an employer in which either or (4) Such other services performed by temporary and other employees which may be
both mental or physical efforts are used and who receives compensation for such excluded by regulation of the Commission. Employees of ​bona fide independent
services, where there is an employer-employee relationship: ​Provided, That a contractors shall not be deemed employees of the employer engaging the service of
self-employed person shall be both employee and employer at the same time. said contractors.
(e) Dependents – The dependents shall be the following: (k) Beneficiaries – The dependent spouse until he or she remarries, the dependent
(1) The legal spouse entitled by law to receive support from the member; legitimate, legitimated or legally adopted, and illegitimate children, who shall be the
(2) The legitimate, legitimated or legally adopted, and illegitimate child who is primary beneficiaries of the member: ​Provided, That the dependent illegitimate
unmarried, not gainfully employed, and has not reached twenty-one (21) years of age, children shall be entitled to fifty percent (50%) of the share of the legitimate,
or if over twenty-one (21) years of age, he is congenitally or while still a minor has legitimated or legally adopted children: ​Provided, further, That in the absence of the
been permanently incapacitated and incapable of self-support, physically or mentally: dependent legitimate, legitimated or legally adopted children of the member, his/her
and dependent illegitimate children shall be entitled to one hundred percent (100%) of the
(3) The parent who is receiving regular support from the member. benefits. In their absence, the dependent parents who shall be the secondary
(f) Compensation – All actual remuneration for employment, including :he mandated beneficiaries of the member. In the absence of all the foregoing, any other person
cost-of-livmg allowance, as well as the cash value of any remuneration paid in any designated by the member as his/her secondary beneficiary.
medium other than cash except that part of the remuneration received during the (l) Contingency – The retirement, death, disability, injury or sickness and maternity of
month in excess of the maximum salary credit as provided in this Act. the member.
(g) Monthly salary credit – The compensation base for contributions and benefits as (m) Average monthly salary credit – The result obtained by dividing the sum of the last
indicated in this Act: ​Provided, That in the computation of benefits, the maximum sixty (60) monthly salary credits immediately preceding the semester of contingency
monthly salary credit to be considered shall be Twenty thousand pesos (₱20,000.00), by sixty (60), or the result obtained by dividing the sum of all the monthly salary credits
until adjusted as provided in Section 4(a)(9). paid prior to the semester of contingency by the number of mohthly contributions paid
(h) Monthly – The period from one end of the last payroll period of the preceding in the same period, whichever is greater: ​Provided, That the injury or sickness which
month to the end of the last payroll period of the current month if compensation is on caused the disability shall be deemed as the permanent disability for the purpose of
hourly, daily or weekly basis; if on any other basis, ‘monthly’ shall mean a period of computing the average monthly salary credit.
one (1) month. (n) Average daily salary credit – The result obtained by dividing the sum of the six (6)
(i) Contribution – The amount paid to the SSS by and on behalf of the members in highest monthly salary credits in the twelve-month period immediately preceding the
accordance with the schedule provided in this Act. semester of contingency by one hundred eighty (180).
(j) Employment – Any service performed by an employee for his employer except: (o) Semester – A period of two (2) consecutive quarters ending in the quarter of
(1) Services where there is no employer-employee relationship in accordance with contingency.
existing labor laws, rules, regulations and jurisprudence; (p) Quarter – A period of three (3) consecutive calendar months ending on the last day
(2) Service performed in the employ of the Philippine Government or instrumentality or of March. June. September and December.
agency thereof; (q) Credited years of service – For a member covered prior to January nineteen
(3) Service performed in the employ of a foreign government or international hundred and eighty-five (1985) minus the calendar year of coverage plus the number
organization, or their wholly-owned instrumentality: ​Provided, however, That this of calendar years in which six (6) or more contributions have been paid from January
exemption notwithstanding, any foreign government, international organization or their nineteen hundred and eighty-five (1985) up to the calendar year containing the
semester prior to the contingency. For a member covered in or after January nineteen Section 9-A. ​Compulsory Coverage of the Self-Employed. — Coverage in the SSS
hundred and eighty-five (1985), the number of calendar years in which six (6) or more shall also be compulsory upon such self-employed persons as may be determined by
contributions have been paid from the year of coverage up to the calendar year the Commission under such rules and regulations as it may prescribe, including, but
containing the semester prior to the contingency: ​Provided, That the Commission may not limited to the following:
provide for a different number of contributions in a calendar year for it to be (a) All seif-empioyed professionals;
considered as a credited year of service. (b) Partners and single proprietors of businesses;
(r) Member – The worker who is covered under Section 9, Section 9-A and Section (c) Actors and actresses, directors, scriptwriters and news correspondents who do not
9-B of this Act. fall within the definition of the term "employee" in Section 8(d) of this Act;
(s) Self-employed – Any person whose income is not derived from employment, as (d) Professional athletes, coaches, trainers and jockeys; and
defined under this Act, as well as those workers enumerated in Section 9-A hereof. (e) Individual farmers and fishermen.
(t) Net earnings – Net income before income taxes plus non-cash charges such as Unless otherwise specified herein, all provisions of this Act applicable to covered
depreciation and depletion appearing in the regular financial statement of the issuing employees shall also be applicable to the covered self-employed persons.
or assuming institution. Section 9-B.​ ​Compulsory Coverage of Overseas Filipino Workers (OFWs)​ -
(u) Fixed charges – Recurring expense such as amortization of debt discount and (a) Coverage in the SSS shall be compulsory upon all sea-based and land-based
rentals for leased properties, including interest on funded and unfunded debt. OFWs as defined under Republic Act No. 8042, otherwise known as the Migrant
Section 9.​ ​Coverage​ - Workers and Overseas Filipinos Act of 1995. as amended by Republic Act No. 10022:
(a) Coverage in the SSS shall be compulsory upon all employees including Provided,​ That they are not over sixty (60) years of age.
kasambahays or domestic workers not over sixty (60) years of age and their All benefit provisions under this Act shall apply to all covered OFWs. The benefits
employers: ​Provided, That any benefit already earned by the employees under private include, among others, retirement, death, disability, funeral, sickness and maternity.
benefit plans existing at the time of the approval of this Act shall not be discontinued, (b) Manning agencies are agents of their principals and are considered as employers
reduced or otherwise impaired: ​Provided, further, That private plans which are existing of sea-based OFWs.
and in force at the time of compulsory coverage shall be integrated with the plan of the For purposes of the implementation of this Act, any law to the contrary notwithstanding
SSS in such a way where the employers contribution to his private plan is more than manning agencies are jointly and severally or solidarity liable with their principals with
that required of him in this Act, he shall pay to the SSS only the contribution required respect to the civil liabilities incurred for any violation of this Act.
of him and he shall continue his contribution to such private plan less his contribution The persons having direct control, management or direction of the manning agencies
to the SSS so that the employer’s total contribution to his benefit plan and to the SSS shall be held criminally liable for any act or omission penalized under this Act
shall be the same as his contribution to his private benefit plan before the compulsory notwithstanding Section 28(f) hereof.
coverage: ​Provided, further, That any changes, adjustments, modifications, (c) Land-based OFWs are compulsory members of the SSS and considered in the
eliminations or improvements in the benefits to be available under the remaining same manner as self-employed persons under such rules and regulations that the
private plan, which may be necessary to adopt by reason of the reduced contributions Commission shall prescribe.
thereto as a result of the integration, shall be subject to agreements between the (d) The Department of Foreign Affairs (DFA), the Department of Labor and
employers and employees concerned: ​Provided, further, That the private benefit plan Employment (DOLE) and all its agencies involved in deploying OFWs for employment
which the employer shall continue for his employees shall remain under the abroad are mandated to negotiate bilateral labor agreements with the OFWs’ host
employer‘s management and control unless there is an existing agreement to the countries to ensure that the employers of land-based OFWs, similar to the principals
contrary: ​Provided, finally, That nothing in this Act shall be construed as a limitation on of sea-based OFWs, pay the required SSS contributions, in which case these
the right of employers and employees to agree on and adopt benefits which are over land-based OFWs shall no longer be considered in the same manner as
and above those provided under this Act. self-employed persons in this Act. Instead, they shall be considered as compulsorily
(b) Spouses who devote full time to managing the household and family affairs, unless covered employees with employer and employee shares in contributions that shall be
they are also engaged in other vocation or employment which is subject to mandatory provided for in the bilateral labor agreements and their implementing administrative
coverage, may be covered by the SSS on a voluntary basis. agreements: ​Provided, That in countries which already extend social security
coverage to OFWs, the DFA through the Philippine embassies and the DOLE shall determination of actuarial soundness, may provide pension increase than the amounts
negotiate further agreements to serve the best interests of the OFWs. specified herein.
(e) The DFA, the DOLE and, the SSS shall ensure compulsory coverage of OFWs (c) Additional Benefit Allowance. - Pursuant to Memorandum from the Executive
through bilateral social security and labor agreements and other measures for Secretary dated 22 February 2017, by authority of the President of the Republic of the
enforcement. Philippines, an additional monthly benefit allowance amounting to One thousand
(f) Upon the termination of their employment overseas, OFWs may continue to pay pesos (₱1,000.00) shall be given to all retirement, death, and disability pensioners
contributions on a voluntary basis to maintain their rights to full benefits. receiving monthly pensions in or after January two thousand seventeen (2017). The
(g) Filipino permanent migrants, including Filipino immigrants, permanent residents Commission may determine the grant of additional benefit allowance: ​Provided, That
and naturalized citizens of their host countries may be covered by the SSS on a the actuarial soundness of the reserve fund shall be guaranteed. All other additional
voluntary basis. allowances to monthly pension subsequent to the Memorandum of the Executive
Section 10. ​Effective Date of Coverage. - Compulsory coverage of the employer shall Secretary dated February 22, 2017 shall be subject to the requirement of fund viability
take effect on the first day of his operation and that of the employee on the day of his and sustainability as determined by the Commission based on the recommendations
employment: ​Provided, That the compulsory coverage of the self-employed person of the Office of the Chief Actuary guaranteeing the actuarial soundness of the grant of
shall take effect upon his registration with the SSS. such allowances.
Section 11. ​Effect of Separation from Employment. - When an employee under Section 12-A. ​Dependents’ Pension. - Where monthly pension is payable on account
compulsory coverage is separated from employment, his employer’s contribution on of death, permanent total disability or retirement, dependents’ pension equivalent to
his account and his obligation to pay contributions arising from that employment shall ten percent (10%) of the monthly pension or Two hundred fifty pesos (₱250.00),
cease at the end of the month of separation, but said employee shall be credited with whichever is higher, shall also be paid for each dependent child conceived on or
all contributions paid on his behalf and entitled to benefits according to the provisions before the date of the contingency but not exceeding five (5), beginning with the
of this Act. He may, however, continue to pay the total contributions to maintain his youngest and without substitution: ​Provided,T ​ hat where there are legitimate and
right to full benefit. illegitimate children, the former shall be preferred.
Section 11-A. ​Effect of Interruption of Business or Professional Income. - If the Section 12-B​. ​Retirement Benefits.​ -
self-employed member realizes no income in any given month, he shall not be (a) A member who has paid at least one hundred twenty (120) monthly contributions
required to pay contributions for that month. He may, however, be allowed to continue prior to the semester of retirement and who: (1) has reached the age of sixty (60)
paying contributions under the same rules and regulations applicable to a separated years and is already separated from employment or has ceased to be self-employed;
employee member: ​Provided, That no retroactive payment of contributions shall be or (2) has reached the age of sixty-five (65) years, shall be entitled for as long as he
allowed other than as prescribed under Section 22-A hereof. lives to the monthly pension: ​Provided, That he shall have the option to receive his
Section 12.​ ​Monthly Pension.—​ - first eighteen (18) monthly pensions in lump sum discounted at a preferential rate of
(a) The monthly pension shall be the highest of the following amounts: interest to be determined by the SSS.
(1) The sum of the following: (b) A covered member who is sixty (60) years old at retirement and who does not
(i) Three hundred pesos (₱300.00); plus qualify for pension benefits under paragraph (a) above, shall be entitled to a lump sum
(ii) Twenty percent (20%) of the average monthly salary credit; plus benefit equal to the total contributions paid by him and on his behalf: ​Provided, That
(iii) Two percent (2%) of the average monthly salary credit for each credited year of he is separated from employment and is not continuing payment of contributions to the
service in excess of ten (10) years; or SSS on his own.
(2) Forty percent (40%) of the average monthly salary credit; or (c) The monthly pension shall be suspended upon the reemployment or resumption of
(3) One thousand pesos (₱1,000.00): ​Provided, That the monthly pension shall in no self-employment of a retired member who is less than sixty-five (65) years old. He
case be paid for an aggregate amount of less than sixty (60) months. shall again be subject to Section Eighteen and his employer to Section Nineteen of
(b) Notwithstanding the preceding paragraph, the minimum pension shall be One this Act.
thousand two hundred pesos (₱1,200.00) for members with at least ten (10) credited (d) Upon the death of the retired member, his primary beneficiaries as of the date of
years of service and Two thousand four hundred pesos (₱2,400.00) for those with his retirement shall be entitled to receive the monthly pension: ​Provided, That if he has
twenty (20) credited years of service: ​Provided, That the Commission, upon no primary beneficiaries and he dies within sixty (60) months from the start of his
monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit (4) Brain injury resulting to incurable imbecility or insanity; and
equivalent to the total monthly pensions corresponding to the balance of the five-year (5) Such cases as determined and approved by the SSS.
guaranteed period, excluding the dependents’ pension. (e) If the disability is permanent partial, and such disability occurs before thirty-six (36)
(e) The monthly pension of a member who retires after reaching age sixty (60) shall be monthly contributions have been paid prior to the semester of disability, the benefit
the higher of either: (1) the monthly pension computed at the earliest time he could; shall be such percentage of the lump sum benefit described in the preceding
have retired had he been separated from employment or ceased to be self-employed paragraph with due regard to the degree of disability as the Commission may
plus all adjustments thereto; or (2) the monthly pension computed at the time when he determine.
actually retires. (f) If the disability is permanent partial and such disability occurs after thirty-six (36)
Section 13. ​Death Benefits. - Upon the death of a member who has paid at least monthly contributions have been paid prior to the semester of disability, the benefit
thirty-six (36) monthly contributions prior to the semester of death, his primary shall be the monthly pension for permanent total disability payable not longer than the
beneficiaries shall be entitled to the monthly pension: ​Provided, That if he has no period designated in the following schedule:
primary beneficiaries, his secondary beneficiaries shall be entitled to a lump sum
Complete and permanent loss of/use of Number of Months
benefit equivalent to thirty-six (36) times the monthly pension. If he has not paid the
required thirty-six (36) monthly contributions, his primary or secondary beneficiaries
shall be entitled to a lump sum benefit equivalent to the monthly pension times the One thumb 10
number of monthly contributions paid to the SSS or twelve (12) times the monthly
pension, whichever is higher.
Section 13-A.​ ​Permanent Disability Benefits.​ - One index finger 8
(a) Upon the permanent total disability of a member who has paid at least thirty-six
(36) monthly contributions prior to the semester of disability, he shall be entitled to the One middle finger 6
monthly pension: ​Provided, That if he has not paid the required thirty-six (36) monthly
contributions, he shall be entitled to a lump sum benefit equivalent to the monthly
pension times the number of monthly contributions paid to the SSS or twelve (12) One ring finger 5
times the monthly pension, whichever is higher. A member who (1) has received a
lump sum benefit; and (2) is reemployed or has resumed self-employment not earlier
One little finger 3
than one (1) year from the date of his disability shall again be subject to compulsory
coverage and shall be considered a new member.
(b) The monthly pension and dependents’ pension shall be suspended upon the One big toe 6
reemployment or resumption of self-employment or the recovery of the disabled
member from his permanent total disability or his failure to present himself for
examination at least once a year upon notice by the SSS. One hand 39
(c) Upon the death of the permanent total disability pensioner, his primary
beneficiaries as of the date of disability shall be entitled to receive the monthly One arm 50
pension: ​Provided, That if he has no primary beneficiaries and he dies within sixty (60)
months from the start of his monthly pension, his secondary beneficiaries shall be
entitled to a lump sum benefit equivalent to the total monthly pensions corresponding One foot 31
to the balance of the five-year guaranteed period excluding the dependents’ pension.
(d) The following disabilities shall be deemed permanent total:
One leg 46
(1) Complete loss of sight of both eyes;
(2) Loss of two limbs at or above the ankle or wrists;
(3) Permanent complete paralysis of two limbs;
 twenty (120) days of sickness benefit granted under this section be carried forward
One ear 10
and added to the total number of compensable days allowable in the subsequent year;
(2) The daily sickness benefit shall not be paid for more than two hundred forty (240)
Both ears 20 days on account of the same confinement; and
(3) The employee member shall notify his employer of the fact of his sickness or injury
within five (5) calendar days after the start of his confinement unless such confinement
Hearing of one ear 10 is in a hospital or the employee became sick or was injured while working or within the
premises of the employer in which case, notification to the employer is not necessary:
Hearing of both ears 50 Provided, That if the member is unemployed or self-employed, he shall directly notify
the SSS of his confinement within five (5) calendar days after the start thereof unless
such confinement is in a hospital in which case notification is also not necessary:
Sight of one eye 25 Provided, further, That in cases where notification is necessary, the confinement shall
be deemed to have started not earlier than the fifth day immediately preceding the
(g) The percentage degree of disability which is equivalent to the ratio that the date of notification.
designated number of months of compensability bears to seventy-five (75), rounded to (b) The compensable confinement shall begin on the first day of sickness, and the
the next higher integer, shall not be additive for distinct, separate and unrelated payment of such allowances shall be promptly made by the employer every regular
permanent partial disabilities, but shall be additive for deteriorating and related payday or on the fifteenth and last day of each month, and similarly in the case of
permanent partial disabilities, to a maximum of one hundred percent (100%), in which direct payment by the SSS, for as long as such allowances are due and payable:
case, the member shall be deemed as permanently totally disabled. Provided, That such allowance shall begin only after all sick leaves of absence with
(h) In case of permanent partial disability, the monthly pension benefit shall be given in full pay to the credit of the employee member shall have been exhausted.
lump sum if it is payable for less than twelve (12) months. (c) One hundred percent (100%) of the daily benefits provided in the preceding
(i) For the purpose of adjudicating retirement, death and permanent total disability paragraph shall be reimbursed by the SSS to said employer upon receipt of
pension benefits, contributions shall be deemed paid for the months during which the satisfactory proof of such payment and legality thereof: ​Provided, That the employer
member received partial disability pension: ​Provided, That such contributions shall be has notified the SSS of the confinement within five (5) calendar days after receipt of
based on his last contribution prior to his disability. the notification from the employee member: ​Provided, further, That if the notification to
(j) Should a member who is on partial disability pension retire or die, his disability the SSS is made by the employer beyond five (5) calendar days after receipt of the
pension shall cease upon his retirement or death. notification from the employee member, said employer shall be reimbursed only for
Section 13-B. ​Funeral Benefit. - A funeral grant equivalent to Twelve thousand pesos each day of confinement starting from the tenth calendar day immediately preceding
(₱12,000.00) shall be paid, in cash or in kind, to help defray the cost of funeral the date of notification to the SSS: ​Provided, finally, That the SSS shall reimburse the
expenses upon the death of a member, including permanently totally disabled member employer or pay the unemployed member only for confinement within the one-year
or retiree. period immediately preceding the date the claim for benefit or reimbursement is
Section 14. ​Sickness Benefit. - (a) A member who has paid at least three (3) monthly received by the SSS, except confinement in a hospital in which case the claim for
contributions in the twelve-month period immediately preceding the semester of benefit or reimbursement must be filed within one (1) year from the last day of
sickness or injury and is confined therefor for more than three (3) days in a hospital or confinement.
elsewhere with the approval of the SSS, shall, for each day of compensable (d) Where the employee member has given the required notification but the employer
confinement or a fraction thereof, be paid by his employer, or the SSS, if such person fails to notify the SSS of the confinement or to file the claim for reimbursement within
is unemployed or self-employed, a daily sickness benefit equivalent to ninety percent the period prescribed in this section resulting in the reduction of the benefit or denial of
(90%) of his average daily salary credit, subject to the following conditions: the claim, such employer shall have no right to recover the corresponding daily
(1) In no case shall the daily sickness benefit be paid longer than one hundred twenty allowance he advanced to the employee member as required in this section.
(120) days in one (1) calendar year, nor shall any unused portion of the one hundred (e) The claim of reimbursement shall be adjudicated by the SSS within a period of two
(2) months from receipt thereof: ​Provided, That should no payment be received by the
employer within one (1) month after the period prescribed herein for adjudication, the Section 15. ​Non-Transferability of Benefits. - The SSS shall promptly pay the benefits
reimbursement shall thereafter earn simple interest of one percent (1%) per month provided in this Act to such persons as may be entitled thereto in accordance with the
until paid. provisions of this Act: ​Provided, That the SSS shall pay the retirement benefits on the
(f) The provisions regarding the notification required of the member and the employer day of contingency to qualified members who have submitted the necessary
as well as the period within which the claim for benefit or reimbursement may be filed documents at least six (6) months before: ​Provided, further, That the beneficiary who
shall apply to all claims filed with the SSS. is a national of a foreign country which does not extend benefits to a Filipino
Section 14-A. ​Maternity Leave Benefit. - A female member who has paid at least beneficiary residing in the Philippines, or which is not recognized by the Philippines,
three (3) monthly contributions in the twelve-month period immediately preceding the shall not be entitled to receive any benefit under this Act: ​Provided, further, That
semester of her childbirth or miscarriage shall be paid a daily maternity benefit notwithstanding the foregoing, where the best interest of the SSS will be served, the
equivalent to one hundred percent (100%) of her average daily salary credit for sixty Commission may direct payments without regard to nationality or country of residence:
(60) days or seventy-eight (78) days in case of caesarian delivery, subject to the Provided, further, That if the recipient is a minor or a person incapable of
following conditions: administering his own affairs, the Commission shall appoint a representative under
(a) That the employee shall have notified her employer of her pregnancy and the such terms and conditions as it may deem proper: ​Provided, further, That such
probable date of her childbirth, which notice shall be transmitted to the SSS in appointment shall not be necessary in case the recipient is under the custody of or
accordance with the rules and regulations it may provide; living with the parents or spouse of the member in which case the benefits shall be
(b) The full payment shall be advanced by the employer within thirty (30) days from paid to such parents or spouse, as representative payee of the recipient. Such
the filing of the maternity leave application; benefits are not transferable and no power of attorney or other document executed by
(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness those entitled thereto in favor of any agent, attorney or any other person for the
benefits provided by this Act for the same period for which daily maternity benefits collection thereof on their behalf shall be recognized, except when they are physically
have been received; unable to collect personally such benefits: ​Provided, further That in case of death
(d) That the maternity benefits provided under this section shall be paid only for the benefits, if no beneficiary qualifies under this Act, said benefits shall be paid to the
first four (4) deliveries or miscarriages; legal heirs in accordance with the law of succession.
(e) That the SSS shall immediately reimburse the employer of one hundred percent Section 16. ​Exemption from Tax, Legal Process and Lien. - All laws to the contrary
(100%) of the amount of maternity benefits advanced to the employee by the notwithstanding, the SSS and all its assets and properties, all contributions collected
employer upon receipt of satisfactory proof of such payment and legality thereof; and and all accruals thereto and income or investment earnings therefrom as well as all
(f) That if an employee member should give birth or suffer miscarriage without the supplies, equipment, papers or documents shall be exempt from any tax, assessment,
required contributions having been remitted for her by her employer to the SSS, or fee, charge, or customs or import duty; and all benefit payments made by the SSS
without the latter having been previously notified by the employer of the time of the shall likewise be exempt from all kinds of taxes, fees or charges, and shall not be
pregnancy, the employer shall pay to the SSS damages equivalent to the benefits liable to attachments, garnishments, levy or seizure by or under any legal or equitable
which said employee member would otherwise have been entitled to. process whatsoever, either before or after receipt by the person or persons entitled
Section 14-B. ​Unemployment. Insurance or Involuntary Separation Benefits. - A thereto, except to pay any debt of the member to the SSS. No tax measure of
member who is not over sixty (60) years of age who has paid at least thirty-six (36) whatever nature enacted shall apply to the SSS, unless it expressly revokes the
months contributions twelve (12) months of which should be in the eighteen-month declared policy of the State in Section 2 hereof granting tax-exemption to the SSS.
period immediately preceding the involuntary unemployment or separation shall be Any tax assessment imposed against the SSS shall be null and void.
paid benefits in the form of monthly cash payments equivalent to fifty percent (50%) of Section 17. ​Fee of Agents, Attorneys, Etc. - No agent, attorney or other person in
the average monthly salary credit for a maximum of two (2) months: ​Provided, That an charge of the preparation, filing or pursuing any claim for benefit under this Act shall
employee who is involuntarily unemployed can only claim unemployment benefits demand or charge for his services any fee, and any stipulation to the contrary shall be
once every three (3) years: ​Provided, further, That in case of concurrence of two or null and void. The retention or deduction of any amount from any benefit granted
more compensable contingencies, only the highest benefit shall be paid, subject to the under this Act for the payment of fees for such services is prohibited: ​Provided,
rules and regulations that the Commission may prescribe. however, That any member of the Philippine Bar who appears as counsel in any case
heard by the Commission shall be entitled to attorney‘s fees not exceeding ten percent
(10%) of the benefits awarded by the Commission, which fees shall not be payable another declaration of his monthly earnings, in which case such latest declaration
before the actual payment of the benefits, and any stipulation to the contrary shall be becomes the new basis of his monthly salary credit.
null and void. Section 20. ​Government Contribution. - As the contribution of the Government to the
Any violation of the provisions of this Section shall be punished by a fine of not less operation of the SSS, Congress shall annually appropriate out of any funds in the
than Five hundred pesos (₱500.00) nor more than Five thousand pesos (₱5,000.00). National Treasury not otherwise appropriated, the necessary sum or sums to meet the
or imprisonment for not less than six (6) months nor more than one (1) year, or both, estimated expenses of the SSS for each ensuing year. In addition to this contribution,
at the discretion of the court. Congress shall appropriate from time 10 time such sum or sums as may be needed to
Section 18. ​Employee’s Contributions. - Beginning on the last day of the calendar assure the maintenance of an adequate working balance of the funds of the SSS as
month when an employee’s compulsory coverage takes effect and every month disclosed by suitable periodic actuarial studies to be made of the operations of the
thereafter during his employment, the employer shall deduct and withhold from such SSS.
employee’s monthly salary, wage, compensation or earnings, the employee’s Section 21. ​Government Guarantee. - The benefits prescribed in this Act shall not be
contribution in an amount corresponding to his salary, wage, compensation or diminished and to guarantee said benefits the Government of the Republic of the
earnings during the month in accordance with the monthly salary credits, the schedule Philippines accepts general responsibility for the solvency of the SSS.
and the rate of contributions as may be determined and fixed by the Commission, Section 22.​ ​Remittance of Contributions​ -
subject to the provisions of Section 4(a)(9) of this Act. (a) The contribution imposed in the preceding section shall be remitted to the SSS
The monthly salary credits, the schedule and the rate of contributions shall also apply within the first ten (10) days of each calendar month following the month for which
to self-employed, voluntary, and other members. they are applicable or within such time as the Commission may prescribe. Every
Section 19.​ ​Employer’s Contributions.​ - employer required to deduct and to remit such contributions shall be liable for their
(a) Beginning on the last day of the month when an employee’s compulsory coverage payment and if any contribution is not paid to the SSS as herein prescribed, the
takes effect and every month thereafter during his employment, his employer shall delinquent employer shall pay besides the contribution a penalty thereon of two
pay, with respect to such covered employee, the employer’s contribution in percent (2%) per month from the date the contribution falls due until paid. If deemed
accordance with the schedule provided in this Act. Notwithstanding any contract to the expedient and advisable by the Commission, the collection and remittance of
contrary, an employer shall not deduct, directly or indirectly, from the compensation of contributions shall be made quarterly or semi-annually in advance, the contributions
his employees covered by the SSS or otherwise recover from them the employer’s payable by the employees to be advanced by their respective employers: ​Provided,
contributions with respect to such employees. That upon separation of an employee, any contribution so paid in advance but not due
(b) The remittance of such contributions by the employer shall be supported by a shall be credited or refunded to his employer.
quarterly collection list to be submitted to the SSS at the end of each calendar quarter (b) The contributions payable under this Act in cases where an employer refuses or
indicating the correct ID number of the employer, the correct names and the SSS neglects to pay the same shall be collected by the SSS in the same manner as taxes
numbers of the employees and the total contributions paid for their account during the are made collectible under the National Internal Revenue Code, as amended. Failure
quarter. or refusal of the employer to pay or remit the contributions herein prescribed shall not
Section 19-A. ​Contributions of the Self-Employed Member. - The contributions to the prejudice the right of the covered employee to the benefits of the coverage.
SSS of the self-employed member shall be determined in accordance with the The right to institute the necessary action against the employer may be commenced
schedule provided in this Act: ​Provided, That the monthly earnings declared by the within twenty (20) years from the time the delinquency is known or the assessment is
self-employed member at the time of his registration with the SSS shall be considered made by the SSS, or from the time the benefit accrues, as the ease may be.
as his monthly compensation and he shall pay both the employer and the employee (c) Should any person, natural or juridical, defaults in any payment of contributions,
contributions: ​Provided, further,​That the contributions of self-employed persons the Commission may also collect the same in either of the following ways:
earning One thousand pesos (₱1,000.00) monthly or below may be reduced by the (1) By an action in court, which shall hear and dispose of the case in preference to any
Commission. other civil action; or
The monthly earnings declared by the self-employed member at the time of his (2) By issuing a warrant to the Sheriff of any province or city commanding him to levy
registration shall remain the basis of his monthly salary credit, unless he makes upon and sell any real and personal property of the debtor. The Sheriffs sale by virtue
of said warrant shall be governed by the same procedure prescribed for executions reduction of benefits, such employer shall pay to the SSS damages equivalent to the
against property upon judgments by a court of record. difference between the amount of benefit to which the employee member or his
(d) The last complete record of monthly contributions paid by the employer or the beneficiary is entitled had the proper contributions been remitted to the SSS and the
average of the monthly contributions paid during the past three (3) years as of the amount payable on the basis of contributions actually remitted: ​Provided, That if the
date of filing of the action for collection shall be presumed to be the monthly employee member or his beneficiary is entitled to pension benefits, the damages shall
contributions payable by and due from the employer to the SSS for each of the unpaid be equivalent to the accumulated pension due as of the date of settlement of the claim
month, unless contradicted and overcome by other evidence: ​Provided, That the SSS or to the five (5) years’ pension, whichever is higher, including dependents’ pension.
shall not be barred from determining and collecting the true and correct contributions In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof,
due the SSS even after full payment pursuant to this paragraph, nor shall the the employer shall also be liable for the payment of the corresponding unremitted
employer be relieved of his liability under Section Twenty-eight of this Act. contributions and penalties thereon.
Section 22-​A. ​Remittance of Contributions of Self-Employed Member. - (c) The records and reports duly accomplished and submitted to the SSS by the
Self-employed members shall remit their monthly contributions quarterly on such employer or the member, as the case may be, shall be kept confidential by the SSS
dates and schedules as the Commission may specify through rules and regulations: except in compliance with a subpoena duces tecum issued by the courts, shall not be
Provided, That no retroactive payment of contributions shall be allowed, except as divulged without the consent of the SSS President or any official of the SSS duly
provided in this Section. authorized by him, shall be presumed correct as to the data and other matters stated
Section 23. ​Method of Collection and. Payment. - The SSS shall require a complete therein, unless the necessary corrections to such records and reports have been
and proper collection and payment of contributions and proper identification of the properly made by the parties concerned before the right to the benefit being claimed
employer and the employee. Payment may be made in cash, checks, stamps, accrues, and shall be made the basis for the adjudication of the claim. If as a result of
coupons, tickets, or other reasonable devices that the Commission may adopt. such adjudication the SSS in good faith pays a monthly pension to a beneficiary who
Section 24.​ ​Employment Records and Reports.​ - is inferior in right to another beneficiary or with whom another beneficiary is entitled to
(a) Each employer shall immediately report to the SSS the names, ages, civil status, share, such payments shall discharge the SSS from liability unless and until such
occupations, salaries and dependents of all his employees who are subject to other beneficiary notifies the SSS of his claim prior to the payments.
compulsory coverage: ​Provided, That if an employee subject to compulsory coverage (d) Every employer shall keep true and accurate work records for such period and
should die or become sick or disabled or reach the age of sixty (60) without the SSS containing such information as the Commission may prescribe, in addition to an
having previously received any report or written communication about him from his "Annual Register of New and Separated Employees" which shall be secured from the
employer, the said employer shall pay to the SSS damages equivalent to the benefits SSS wherein the employer shall enter on the first day of employment or on the
to which said employee member would have been entitled had his name been effective date of separation, the names of the persons employed or separated from
reported on time by the employer to the SSS, except that in case of pension benefits, employment, their SSS numbers, and such other data that the Commission may
the employer shall be liable to pay the SSS damages equivalent to the accumulated require and said annual register shall be submitted to the SSS in the month of January
pension due as of the date of settlement of the claim or to the five (5) years’ pension, of each year. Such records shall be open for inspection by the SSS or its authorized
whichever is higher, including dependents’ pension: ​Provided, further, That if the representatives quarterly or as often as the SSS may require.
contingency occurs within thirty (30) days from the date of employment, the employer The SSS may also require each employer to submit, with respect to the persons in his
shall be relieved of his liability for damages: ​Provided, further, That any person or employ, reports needed for the effective administration of this Act.
entity engaging the services of an independent contractor shall be subsidiarily liable (e) Each employer shall require, as a condition to employment, the presentation of a
with such contractor for any civil liability incurred by the latter under this Act: ​Provided, registration number secured by the prospective employee from the SSS in accordance
finally, That the same person or entity engaging the services of an independent with such procedure as the SSS may adopt: ​Provided, That in case of employees who
contractor shall require such contractor to post a surety bond to guarantee the have earlier been assigned registration numbers by virtue of a previous employment,
payment of the worker’s benefits. such numbers originally assigned to them should be used for purposes of this Section:
(b) Should the employer misrepresent the true date of employment of the employee Provided, further, That/ the issuance of such registration numbers by the SSS shall
member or remit to the SSS contributions which are less than those required in this not exempt the employer from complying with the provisions of paragraph (a) of this
Act or fail to remit any contribution due prior to the date of contingency, resulting in a Section.
(f) Notwithstanding any law to the contrary, microfilm, or non-erasable optical disk and the Government of the Philippines is pledged: ​Provided, That at least fifteen percent
other similar archival media copies of original SSS records and reports, or copies of (15%) of the investment reserve fund shall be invested for these purposes:
such records and reports duly certified by the official custodian thereof, shall have the (b) In bonds, securities, promissory notes or other evidence of indebtedness of the
same evidentiary value as the originals and be admissible as evidence in all legal Government of the Philippines, or any of its agencies or instrumentalities to finance
proceedings. domestic infrastructure projects such as roads, bridges, ports, telecommunications,
(g) Notwithstanding any law to the contrary, local government units shall, prior to and other similar projects: ​Provided, That the instruments issued by an agency or
issuing any annual business license or permit, require submission of certificate of SSS instrumentality of the government shall be guaranteed by the Government of the
coverage and compliance with the provisions of this Act: ​Provided, That the Philippines or any government financial institution or acceptable multilateral agency:
certification or clearance shall be issued by the SSS within five (5) working days from Provided, further, That the SSS shall have priority over the revenues of the projects:
receipt of the request. Provided, finally, That such investments shall not exceed thirty percent (30%) of the
Section 24-A. ​Report and. Registration of the Self-Employed Member. - Each covered Investment Reserve Fund;
self-employed member shall, within thirty (30) days from the first day he started the (c) In bonds, securities, promissory notes or other evidence of indebtedness of
practice of his profession or business operations, register and report to the SSS his government financial institutions or government corporations with acceptable credit or
name, age, civil status, and occupation, average monthly net income and his guarantee: ​Provided, That such investments shall not exceed thirty percent (30%) of
dependents. the Investment Reserve Fund;
Section 25. ​Deposit and Disbursements. - All money paid to or collected by the SSS (d) In bonds, securities, deposits, promissory notes or other evidence of indebtedness
every year under this Act, and all accruals thereto, shall be deposited, administered of any,bank doing business in the Philippines and in good standing with the BSP to
and disbursed in the same manner and under the same conditions and requirements finance loans to private corporations doing business in the Philippines, including
as provided by law for other public special funds: ​Provided, That not more than twelve schools, hospitals, small-and-medium scale industries, cooperatives and
percent (12%) of the total yearly contributions plus three percent (3%) of other nongovernmental organizations, in which case the collaterals or securities shall be
revenues shall be disbursed for administrative and operational expenses such as assigned to the SSS, under such terms and conditions as the Commission may
salaries and wages, supplies and materials, depreciation, and the maintenance of prescribe: ​Provided, That in the case of bank deposits, they shall not exceed at any
offices of the SSS: ​Provided, further, That if the expenses in any year are less than time the unimpaired capital and surplus or total private deposits of the depository
the maximum amount permissible, the difference shall not be availed of as additional bank, whichever is smaller: ​Provided, further, That said bank shall first have been
expenses in the following years. designated as a depository for this purpose by the Monetary Board of the BSP:
Section 26. ​Investment of Reserve Funds. - All revenues of the SSS that are not Provided, finally, That such investments shall not exceed forty percent (40%) of the
needed to meet the current administrative and operational expenses incidental to the Investment Reserve Fund;
carrying out of this Act shall be accumulated in a fund to be known as the "Reserve (e) In bonds, securities, promissory notes or other evidence of indebtedness of shelter
Fund". Such portions of the Reserve Fund as are not needed to meet the current agencies of the National Government or financial intermediaries to finance housing
benefit obligations thereof shall be known as the "Investment Reserve Fund" which loans of members; and in long-term direct individual or group housing loans giving
the Commission shall manage and invest with the skill, care, prudence and diligence priority to the low-income groups, up to a maximum of ninety percent (90%) of the
necessary to earn an annual income not less than the average rates of treasury bills appraised value of the properties to be mortgaged by the borrowers; and
or any other acceptable market yield indicator in any or in all of the following In short and medium-term Mans to members such as salary, educational, livelihood,
undertaking, under such rules and regulations as may be prescribed by the calamity, and emergency loans: ​Provided, That not more than five percent (5%) of the
Commission: ​Provided, That investments shall satisfy the requirements of liquidity, Investment Reserve Fund at any time shall be invested for housing purposes:
safety/ security and yield in order to ensure the actuarial solvency of the funds of the Provided, further, That not more than twenty five percent (25%) of the Investment
SSS: ​Provided, further, That the SSS shall submit an annual report on all investments Reserve Fund shall be invested in short-and medium-term loans;
made to both the Senate and House of Representatives: (f) In bonds, securities, promissory notes or other evidence of indebtedness of
(a) In bonds, securities, promissory notes or other evidence of indebtedness of the educational or medical institutions to finance the construction, improvement and
Government of the Philippines, or in bonds, securities, promissory notes or other maintenance of schools and hospitals and their equipment and facilities: ​Provided,
evidence of indebtedness to which the full faith, credit and unconditional guarantee of
That such investments shall not exceed ten percent (10%) of the Investment Reserve these instruments or assets are issued: ​Provided, further, That the issuing company
Fund: has proven track record of profitability over the last three (3) years and payment of
(g) In real estate property, including shares of stocks involving real estate property, dividends at least once over the same period: ​Provided, finally, That such investments
and investments secured by first mortgages on real estate or other collaterals shall not exceed one percent (1%) of the Investment Reserve Fund in the first year
acceptable to the SSS: ​Provided, That such projects and investments shall, in the which shall be increased by one percent (1%) for each succeeding year, but in no
determination of the Commission, redound to the benefit of the SSS, its members, as case shall it exceed fifteen percent (15%) of the Investment Reserve Fund;
well as the general public: ​Provided, further, That investment in real estate property (l) In loans secured by such collaterals like cash, pensions, government securities or
and joint ventures including shares of stocks involving real estate property, shall not guarantees of multilateral institutions including loans to pensioners: ​Provided, That
exceed ten percent (10%) of the Investment Reserve Fund: ​Provided, finally, That such investments shall not exceed thirty percent (30%) of the Investment Reserve
investments in other income earning projects and investment secured by first Fund; and
mortgages and or other collaterals shall not exceed twenty-five percent (25%) of (m) In other BSP approved investment instruments with the same intrinsic quality as
the-Investment Reserve Fund; those enumerated in paragraphs (a) to (l) hereof, subject to the policies and guidelines
(h) In bonds, debentures, securities, promissory notes or other evidence of which the Commission may formulate.
indebtedness of any prime corporation or multilateral institutions to finance domestic No portion of the Investment Reserve Fund or income thereof shall accrue to the
projects: ​Provided, That the issuing or assuming entity or its predecessors shall not general fund of the National Government or to any of its agencies or instrumentalities,
have defaulted in the payment of interest on any of its securities and that during each including government-owned or -controlled corporations, except as may be allowed
of any three (3) including the last two (2) of the five (5) fiscal years next preceding the under this Act: ​Provided, That no portion of the Investment Reserve Fund shall be
date of acquisition by the SSS of such bonds, debentures or other evidence of invested for any purpose or any instrument, institution or industry over and above the
indebtedness, the net earnings of the issuing or assuming institution available for its prescribed cumulative ceilings as follows:
fixed charges, as defined in this Act, shall have been not less than one and 60% in private securities
one-quarter times the total of its fixed charges for such year: ​Provided, further, That 5% in housing
such investments shall not exceed forty percent (40%) of the Investment Reserve 30% in real estate related investments
Fund; 25% in short and medium-term member loans
(i) In preferred or common shares of stocks listed or to be listed in the stock exchange 30% in government financial institutions and corporations
and other securities trading markets or options or warrants to such stock or, subject to 15% in any particular industry
prior approval of the BSP, such other risk management instruments of any prime or 7.5% in foreign-currency denominated investments
solvent corporation or financial institution created or existing under the laws of the 5% in private-sponsored infrastructure projects without guarantee
Philippines with proven track record of profitability over the last three (3) years and 5% private and government sponsored infrastructure projects with guarantee
payment of dividends at least once over the same period: ​Provided, That such 5% in private and government sponsored infrastructure projects.
investments shall not exceed forty percent (40%) of the Investment Reserve Fund; Section 26-A. ​Fund Managers. - As part of its investment operations, the SSS may
(j) In domestic or foreign mutual funds in existence for at least three (3) years: appoint local or, in the absence thereof, foreign fund managers to manage the
Provided, That such investments shall not exceed forty percent (40%) of the Investment Reserve Fund, as it may deem appropriate.
Investment Reserve Fund: ​Provided, further, That investments in foreign mutual funds Section 26-B.​ ​Mortgagor Insurance Account.​ -
shall not exceed one percent (1%) of the Investment Reserve Fund in the first year (a) As part of its investment operations, the SSS shall act as insurer of all or part of its
which shall be increased by one percent (1%) for each succeeding year, but in no interest on SSS properties mortgaged to the SSS, or lives of mortgagors whose
case shall it exceed fifteen percent (15%) of the Investment Reserve Fund; properties are mortgaged to the SSS. For this purpose, the SSS shall establish a
(k) In foreign currency deposits or investment-grade rated foreign separate account to be known as the "Mortgagors’ Insurance Account". All amounts
currency-denominated debts, prime and nonspeculative equities, and other BSP received by the SSS in connection with the aforesaid insurance operations shall be
approved financial instruments or other assets issued in accordance with the existing placed in the Mortgagors’ Insurance Account. The assets and liabilities of the
laws of the countries where such financial instruments are issued: ​Provided, That Mortgagors’ Insurance Account shall at all times be clearly identifiable and
these instruments or assets are listed in bourses of the respective countries where distinguishable from the assets and liabilities in all other accounts of the SSS.
Notwithstanding any provision of law to the contrary, the assets held in the (b) Whoever shall obtain or receive any money or check under this Act or any
Mortgagors’ Insurance Account shall not be chargeable with the liabilities arising out of agreement thereunder, without being entitled thereto with intent to defraud any
any other business the SSS may conduct but shall be held and applied exclusively for member, employer or the SSS, shall be fined not less than Five thousand pesos
the benefit of the owners or beneficiaries of the insurance contracts issued by the SSS (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00) and imprisoned for
under this paragraph. not less than six (6) years and one (1) day nor more than twelve (12) years.
(b) The SSS may insure any of its interest or part thereof with any private company or (c) Whoever buys, sells, offers for sale, uses, transfers or takes or gives in exchange,
reinsurer.​1âwphi1 The Insurance Commission or its authorized representatives shall or pledges or gives in pledge, except as authorized in this Act or in regulations made
make an examination into the financial condition and methods of transacting business pursuant thereto, any stamp, coupon, ticket, book or other device, prescribed pursuant
of the SSS at least once in two (2) years, but such examination shall be limited to the to Section Twenty-three hereof by the Commission for the collection or payment of
insurance operation of the SSS as authorized under this paragraph and shall not contributions required herein, shall be fined not less than Five thousand pesos
embrace the other operations of the SSS: and the report of said examination shall, be (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00), or imprisoned for not
submitted to the Commission and a copy thereof shall be furnished the Office of the less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the
President of the Philippines within a reasonable time after the close of the discretion of the court.
examination: ​Provided, That for each examination, the SSS shall pay to the Insurance (d) Whoever, with intent to defraud, alters, forges, makes or counterfeits any stamp,
Commission an amount equal to the actual expense of the Insurance Commission in coupon, ticket, book or other device prescribed by the Commission for the collection or
the conduct of examination, including the salaries of the examiners and of the actuary payment of any contribution required herein, or uses, sells, lends, or has in his
of the Insurance Commission who have been assigned to make such examination for possession any such altered, forged or counterfeited materials, or makes, uses, sells
the actual time spent in said examination: ​Provided, further, That the general law on or has in his possession any such altered, forged, material in imitation of the material
insurance and the rules and regulations promulgated thereunder shall have suppletory used in the manufacture of such stamp, coupon, ticket, book or other device, shall be
application insofar as it is not in conflict with this Act and its rules and regulations. fined not less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand
Section 27. ​Records and Reports. - The SSS President shall keep and cause to keep pesos (₱20,000.00) or imprisoned for not less than six (6) years and one (1) day nor
records of operations of the funds of the SSS and of disbursements thereof and all more than twelve (12) years, or both, at the discretion of the court.
accounts of payments made out of said funds. During the month of January of each (e) Whoever fails or refuses to comply with the provisions of this Act or with the rules
year, the SSS President shall prepare for submission to the President of the and regulations promulgated by the Commission, shall be punished by a fine of not
Philippines and to Congress of the Philippines a report of operations of the SSS during less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand pesos
the preceding year, including statistical data on the number of persons covered and (₱20,000.00), or imprisonment for not less than six (6) years and one (1) day nor more
benefited, their occupations and employment status, the duration arid amount of than twelve (12) years, or both, at the discretion of the court: ​Provided, That where the
benefits paid, the finances of the SSS at the close of the said year, and violation consists in failure or refusal to register employees or himself, in case of the
recommendations. He shall also cause to be published in two (2) newspapers of covered self-employed or to deduct contributions from the employees’ compensation
general circulation in the Philippines a synopsis of the annual report, showing in and remit the same to the SSS, the penalty shall be a fine of not less than Five
particular the status of the finances of the SSS and the benefits administered. thousand pesos (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00) and
Section 28.​ ​Penal Clause.​ - imprisonment for not less than six (6) years and one (1) day nor more than twelve (12)
(a) Whoever, for the purpose of causing any payment to be made under this Act. or years.
under an agreement thereunder, where none is authorized to be paid, shall make or (f) If the act or omission penalized by this Act be committed by an association,
cause to be made false statement or representation as to any compensation paid or partnership, corporation or any other institution, its managing head, directors or
received or whoever makes or causes to be made any false statement of a material partners shall be liable for the penalties provided in this Act for the offense.
fact in any claim for any benefit payable under this Act, or application for loan with the (g) Any employee of the SSS who receives or keeps funds or property belonging,
SSS. or whoever makes or causes to be made any false statement, representation, payable or deliverable to the SSS and who shall appropriate the same, or shall take or
affidavit or document in connection with such claim or loan, shall suffer the penalties misappropriate, or shall consent, or through abandonment or negligence, shall permit
provided for in Article One hundred seventy-two of the Revised Penal Code. any other person to take such property or funds, wholly or partially, or shall otherwise
be guilty of misappropriation of such funds or property, shall suffer the penalties Section 33. ​Repealing Clause. - Republic Act No. 1161 and Republic Act No. 8282
provided in Article Two hundred seventeen of the Revised Penal Code. and all other laws, proclamations, executive orders, rules and regulations or parts
(h) Any employer who, after deducting the monthly contributions or loan amortizations thereof inconsistent with this Act are hereby repealed, modified or amended
from his employee’s compensation, fails to remit the said deduction to the SSS within accordingly: ​Provided, That no person shall be deemed to be vested with any property
thirty (30) days from the date they became due, shall be presumed to have or other right by virtue of the enactment or operation of this Act.
misappropriated such contributions or loan amortizations and shall suffer the penalties
provided in Article Three hundred fifteen of the Revised Penal Code.
(i) Criminal action arising from a violation of the provisions 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 office is located, if
the violation was committed within its territorial jurisdiction or in Metro Manila, at the
option of the SSS.
Section 29. ​Government Aid. - The establishment of the SSS shall not disqualify the
members and employers from receiving such government assistance, financial or
otherwise, as may be provided.
Section 30. ​Implementing Rules and Regulations. - The Commission shall promulgate
the necessary rules and regulations to implement this Act not later than ninety (90)
days after its effectivity.
Section 31. ​Transitory Clause. - Any employer who is delinquent or has not remitted
all contributions due and payable to the SSS may, within six (6) months from the
effectivity of this Act, remit said contributions or submit a proposal to pay the. same in
installment within a period as approved by the Commission from the effectivity of this
Act without incurring the prescribed penalty, subject to the implementing rules and
regulations which the Commission may prescribe: ​Provided, That the employer
submits the corresponding collection lists together with the remittance or proposal to
pay in installments: ​Provided, further, That in case the employer fails to remit
contributions within the six-month grace period or defaults in the payment of any
amortization provided in the approved proposal, the prescribed penalty shall be
imposed from the time the contributions first became due as provided in Section 22(a)
hereof: ​Provided, finally, That upon approval and payment in full or in installments of
contributions due and payable to the SSS, any pending case filed against the
employer shall be withdrawn without prejudice to the (i) refiling of the case in the event
the employer fails to remit in full the required delinquent contributions or defaults in the
payment of any installment under the approved proposal and (ii) the reimposition of
the prescribed penalty from the time the contributions first became due as provided in
Section 22(a) hereof.
Section 32. ​Separability Clause. - If, for any reason, any part, section, or provision of
this Act is held invalid or unconstitutional, the remaining provisions not affected
thereby shall continue to be in full force and effect.
 Enjoyment of maternity leave cannot be deferred but should be availed of either
before or after the actual period of delivery in a continuous and uninterrupted manner,
not exceeding one hundred five (105) days, as the case may be.
Maternity leave shall be granted to female workers in every instance of pregnancy,
miscarriage or emergency termination of pregnancy, regardless of frequency:
Seventeenth Congress
Provided, That for cases of miscarriage or emergency termination of pregnancy, sixty
Third Regular Session
(60) days maternity leave with full pay shall be granted.
Begun and held in Metro Manila, on Monday, the twenty-third day of July, two
Section 4. ​Maternity Leave for Female Workers in the Public Sector.​— Any pregnant
thousand eighteen.
female worker in the government service, regardless of employment status, in
REPUBLIC ACT No. 11210
National Government Agencies (NGAs), Local Government Units (LGUs),
An Act Increasing the Maternity Leave Period to One Hundred Five (105) Days
Government-Owned or -Controlled Corporations (GOCCs), or State Universities and
for Female Workers With an Option to Extend for an Additional Thirty (30) Days
Colleges (SUCs), shall be granted a maternity leave of one hundred five (105) days
Without Pay, and Granting an Additional Fifteen (15) Days for Solo Mothers, and
with full pay regardless if the delivery was normal or caesarian: ​Provided, That, in
for Other Purposes
case the employee qualifies as a solo parent under Republic Act No. 8972, or the
Be it enacted by the Senate and House of Representatives of the Philippine Congress
"Solo Parents’ Welfare Act", the employee shall be paid an additional maternity benefit
Assembled:
of fifteen (15) days. An additional maternity leave of thirty (30) days, without pay, can
Section 1. ​Short Title. - This Act shall be known and cited as the ​"105-Day Expanded
be availed of, at the option of the female worker: ​Provided, further, That, the head of
Maternity Leave Law".
the agency shall be given due notice, in writing, at least forty-five (45) days before the
Section 2. ​Declaration of Policy. — It is the declared policy of the State under Article
end of her maternity leave: ​Provided, finally, That no prior notice shall be necessary in
XIII, Section 14 of the 1987 Constitution to protect and promote the rights and welfare
the event of a medical emergency but subsequent notice shall be given to the head of
of working women, taking into account them maternal functions, and to provide an
the agency.
enabling environment in which their full potential can be achieved.
Maternity leave of sixty (60) days, with full pay, shall be granted for miscarriage or
Article II, State Policies, Section 12 of the 1987 Constitution provides that the State
emergency termination of pregnancy.
recognizes the sanctity of family life and shall protect and strengthen the family as the
Section 5. ​Maternity Leave for Female Workers in the Private Sector.— ​ Any pregnant
basic autonomous social institution and that it shall equally protect the life of the
female worker in the private sector shall be granted a maternity leave of one hundred
mother and the life of the unborn from conception. Moreover, Sections 17 and 22 of
five (105) days with full pay, regardless of whether she gave birth via caesarian
Republic Act No. 9710, otherwise known as "The Magna Carta of Women", provides
section or natural delivery, while maternity leave of sixty (60) days with full pay shall
for women’s rights to health and decent work.
be granted for miscarriage or emergency termination of pregnancy.
To achieve these, and in recognition of women’s maternal function as a social
(a) A female Social Security System (SSS) member who has paid at least three (3)
responsibility, the State shall institutionalize a mechanism to expand the maternity
monthly contributions in the twelve (12)-month period immediately preceding the
leave period of women workers. This will provide them with ample transition time to
semester of her childbirth, miscarriage, or emergency termination of pregnancy shall
regain health and overall wellness as well as to assume maternal roles before
be paid her daily maternity benefit which shall be computed based on her average
resuming paid work. This Act is consistent with local and international legal
monthly salary credit for one hundred five (105) days, regardless of whether she gave
instruments that protect and promote the rights of women.
birth via caesarian section or natural delivery, subject to the following conditions:
Section 3. ​Grant of Maternity Leave.— ​ All covered female workers in government and
(1) That the female worker shall have notified her employer of her pregnancy and the
the private sector, including those in the informal economy, regardless of civil status or
probable date of her childbirth, which notice shall be transmitted to the SSS in
the legitimacy of her child, shall be granted one hundred five (105) days maternity
accordance with the rules and regulations it may provide;
leave with full pay and an option to extend for an additional thirty (30) days without
(2) That the full payment shall be advanced by the employer within thirty (30) days
pay: ​Provided, That in case the worker qualifies as a solo parent under Republic Act
from the filing of the maternity leave application;
No. 8972, or the "Solo Parents’ Welfare Act", the worker shall be granted an additional
fifteen (15) days maternity leave with full pay.
(3) That payment of daily maternity benefits shall be a bar to the recovery of sickness fourth degree of consanguinity or the current partner of the female worker sharing the
benefits provided under Republic Act No. 1161, as amended, for the same period for same household, upon the election of the mother taking into account the best interests
which daily maternity benefits have been received; of the child: ​Provided, further, That written notice thereof is provided to the employers
(4) That the SSS shall immediately reimburse the employer of one hundred percent of the female worker and alternate caregiver: ​Provided, furthermore, That this benefit
(100%) of the amount of maternity benefits advanced to the female worker by the is over and above that which is provided under Republic Act No. 8187, or the
employer upon receipt of satisfactory and legal proof of such payment; and "Paternity Leave Act of 1996": ​Provided, finally, That in the event the beneficiary
(5) That if a female worker should give birth or suffer a miscarriage or emergency female worker dies or is permanently incapacitated, the balance of her maternity leave
termination of pregnancy without the required contributions having been remitted for benefits shall accrue to the father of the child or to a qualified caregiver as provided
her by her employer to the SSS, or without the latter having been previously notified above.
by the employer of the time of the pregnancy, the employer shall pay to the SSS Section 7. ​Maternity Leave for Women Regardless of Civil Status.— ​ All female
damages equivalent to the benefits which said female member would otherwise have workers in the government and female members of the SSS, regardless of their civil
been entitled to. status, shall be granted maternity leave, with full pay, upon compliance with the
In case the employee qualifies as a solo parent under Republic Act No. 8972, or the preceding section.
"Solo Parents’ Welfare Act", the employee shall be paid an additional maternity benefit Section 8. ​Maternity Leave With Pay in Case of Childbirth, Miscarriage, or Emergency
of fifteen (15) days. Termination of Pregnancy After the Termination of an Employee’s Service.​—
(b) An additional maternity leave of thirty (30) days, without pay, can be availed of, at Maternity leave with full pay shall be granted even if the childbirth, miscarriage, or
the option of the female worker: ​Provided, That the employer shall be given due emergency termination of pregnancy occurs not more than fifteen (15) calendar days
notice, in writing, at least forty-five (45) days before the end of her maternity leave: after the termination of an employee’s service, as her right thereto has already
Provided, further, That no prior notice shall be necessary in the event of a medical accrued: ​Provided, That such period is not applicable when the employment of the
emergency but subsequent notice shall be given to the head of the agency. pregnant woman worker has been terminated without just cause, in which case the
(c) Workers availing of the maternity leave period and benefits must receive their full employer will pay her the full amount equivalent to her salary for one hundred five
pay. Employers from the private sector shall be responsible for payment of the salary (105) days for childbirth and sixty (60) days for miscarriage or emergency termination
differential between the actual cash benefits received from the SSS by the covered of pregnancy based on her full pay, in addition to the other applicable daily cash
female workers and their average weekly or regular wages, for the entire duration of maternity benefits that she should have received had her employment not been
the maternity leave, with the following exceptions, subject to the guidelines to be illegally terminated.
issued by the Department of Labor and Employment (DOLE): Section 9. ​Maternity Leave Credits.​— The maternity leave can be credited as
(1) Those operating distressed establishments; combinations of prenatal and postnatal leave as long as it does not exceed one
(2) Those retail/service establishments and other enterprises employing not more than hundred five (105) days and provided that compulsory postnatal leave shall not be
ten (10) workers; less than sixty (60) days.
(3) Those considered as micro-business enterprises and engaged in the production, Section 10. ​Maternity Leave Benefits for Women in the Informal Economy and
processing, or manufacturing of products or commodities including agro-processing, Voluntary Contributors to the SSS.​— Maternity benefits shall cover all married and
trading, and services, whose total assets are not more than Three million pesos unmarried women, including female workers in the informal economy.
(₱3,000,000.00); and Female workers in the informal economy are entitled to maternity leave benefits if they
(4) Those who are already providing similar or more than the benefits herein provided. have remitted to the SSS at least three (3) monthly contributions in the .twelve
Provided, That said exemptions shall be subject to an annual submission of a (12)-month period immediately preceding the semester of her childbirth, miscarriage,
justification by the employer claiming exemption for the approval of the DOLE. or emergency termination of pregnancy.
Section 6. ​Allocation of Maternity Leave Credits.— ​ Any female worker entitled to Section 11. ​Maternity Benefits for Female Workers Who are Non-Members of the
maternity leave benefits as provided for herein may, at her option, allocate up to seven SSS.— ​ Female workers who are neither voluntary nor regular members of the SSS
(7) days of said benefits to the child’s father, whether or not the same is married to the shall be governed by the Philippine Health Insurance Corporation (PhilHealth) Circular
female worker: ​Provided, That in the death, absence, or incapacity of the former, the No. 022-2014 or the "Social Health Insurance Coverage and Benefits for Women
benefit may be allocated to an alternate caregiver who may be a relative within the About to Give Birth".
Section 12. ​Maternity Leave of a Female Worker With Pending Administrative Case. view of meeting the needs of pregnant women and newly-born infants, and improving
— The maternity leave benefits granted under this Act shall be enjoyed by a female their welfare.
worker in the government service and in the private sector even if she has a pending Section 18. ​Penalties. - Whoever fails or refuses to comply with the provisions of this
administrative case. Act shall be punished by a fine of not less than Twenty thousand pesos (₱20,000.00)
Section 13. ​Maternity Leave for Female National Athletes.​— In the event a national nor more than Two hundred thousand pesos (₱200,000.00), and imprisonment of not
athlete becomes pregnant, she will be referred to the team physician or an accredited less than six (6) years and one (1) day nor more than twelve (12) years or both. If the
physician of the Philippine Sports Commission (PSC) or an obstetrician-gynecologist act or omission penalized by this Act shall be committed by an association,
to determine her fitness to continue training. She will be allowed to participate in all partnership, corporation, or any other institution, its managing head, directors, or
team-related activities, unless the physician advises that participation is not medically partners shall be liable to the penalties provided in this Act for the offense.
safe or should be limited. Upon medical advice, she shall go on maternity leave until Failure on the part of any association, partnership, corporation, or private enterprise to
cleared to return to training. She shall continue receiving her allowance and be entitled comply with the provisions of this Act shall be a ground for non-renewal of business
to the same benefits while on maternity leave prior to childbirth and up to six (6) permits.
months after, unless she can resume sooner as advised by her physician, in which Section 19. ​Implementing Rules and Regulations. - The CSC, the DOLE, and the
case, she will be entitled to the allowance and benefits she had prior to pregnancy: SSS shall issue the necessary rules and regulations for the effective implementation
Provided, That a female national athlete employed in the public sector shall not of this Act within sixty (60) days from the effectivity of the same.
receive double compensation or benefits. Section 20. ​Separability Clause. - If any provision of this Act is declared
Section 14. ​Non-Diminution of Benefits. - Nothing in this Act shall be construed as to unconstitutional or otherwise invalid, the validity of the other provisions shall not be
diminish existing maternity benefits currently enjoyed whether or not these are granted affected thereby.
under collective bargaining agreements (CBA) or present laws, if the same are more Section 21. ​Repealing Clause. - All laws, decrees, orders, rules and regulations or
beneficial to the female worker. Any other working arrangement which the female parts thereof inconsistent with this Act are hereby repealed or modified accordingly.
worker shall agree to, during the additional maternity leave period, shall be allowed: Section 22. ​Effectivity. - This Act shall take effect after fifteen (15) days from its
Provided, That this shall be consented to in writing by the female worker and shall publication in the Official Gazette or in a newspaper of general circulation.
primarily uphold her maternal functions and the requirements of postnatal care.
Section 15. ​Security of Tenure. - Those who avail of the benefits of this Act, whether
in the government service or private sector, shall be assured of security of tenure. As
such, the exercise of this option by them shall not be used as basis for demotion in
employment or termination. The transfer to a parallel position or reassignment from
one organizational unit to another in the same agency or private enterprise shall be
allowed: ​Provided, That it shall not involve a reduction in rank, status, salary, or
otherwise amount to constructive dismissal.​1âwphi1
Section 16. ​Non-Discrimination. - No employer whether in the public or private sector
shall discriminate against the employment of women in order to avoid the benefits
provided for in this Act.
Section 17. ​Periodic Review. - The Civil Service Commission (CSC), the DOLE, the
SSS, and the Gender Ombud of the Commission on Human Rights (CHR), in
consultation with trade unions, labor organizations, and employers’ representatives
shall within one (1) month after the effectivity of this Act conduct a review of the
maternity leave benefits of female workers in the government service and the private
sector, respectively. Thereafter, they shall include maternity leave benefits in their
valuation report conducted every four (4) years for the SSS and the DOLE and every
three (3) years for the CSC, or more frequently as may be necessary, with the end in