Salient Features of Republic Act No. 11199, amending Republic Act No. 8282, also known as the New Social Security Law of 2018

Related article: Understanding SSS and its benefits

The Social Security System (SSS) of the Philippines is established to promote the social welfare of the people as well as to protect them against the hazards of disability, sickness, maternity, old age, death and other contingencies in life by helping them in their financial needs.

Compulsory Coverage

            The SS Law mandates that all employees including kasambahays or domestic workers not over sixty (60) years of age shall be members of the SSS (Section 9). The law also mandates compulsory coverage of the Self-Employed as stated in Section 9-A of R.A. No. 11199 which provides that self-employed includes, but not limited to, the following:

1. All self-employed professionals;
2. Partners and single proprietors of businesses;
3. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the term “employee” in Section 8 (d) of this Act;
4. Professional athletes, coaches, trainers and jockeys; and
5. Individual farmers and fishermen.

            The New SS Law likewise made it compulsory for Overseas Filipino Workers, sea-based or land-based, to be members of the SSS as provided for under Section 9-B of R.A. No. 11199.

            As members of the SSS, all of the abovementioned are required to remit monthly contributions to SSS in order for them to avail of the benefits provided for by the SS Law.

Benefits Available under the SS Law

The SSS provides its members the privilege to avail of different benefits depending upon the member’s needs and qualification. Under the New SS Law of 2018, the SSS provides for Maternity Leave Benefit, Retirement Benefit, Death Benefit, Permanent Disability Benefit, Funeral Benefit, Sickness Benefit, and the latest addition in view of the enactment of the New SS Law, the Unemployment Insurance or Involuntary Separation Benefits.

            The Maternity Leave Benefit under Section 14-A of R.A. No. 11199, allows a female member to be paid a daily maternity benefit equivalent to one hundred percent (100%) of her average daily salary credit subject to the following conditions:

1. That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth, which notice shall be transmitted to SSS in accordance with the rules and regulations it may provide;
2. The full payment shall be advanced by the employer within thirty (30) days from the filing of the maternity leave application;
3. That the payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act for the same period for which daily maternity benefits have been received;
4. That the maternity benefits provided under this section shall be paid only for the first four (4) deliveries or miscarriages;
5. That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the amount of the maternity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof; and
6. That if an employee member should give birth or suffer miscarriage without the required contributions having been remitted for her by her employer to the SSS, or without the latter having been previously notified by the employer of the time of the pregnancy, the employer shall pay to the SSS damages equivalent to the benefits which said employee member would otherwise have been entitled to.

In connection with R.A. No. 11210 or the 105-day Expanded Maternity Leave Law, the SSS female member shall be granted one hundred five (105) days maternity leave with full pay, and an option to extend for another thirty (30) days without pay.

            The Retirement Benefit under Section 12-B of R.A. No. 11199, is given to a member who: (1) has reached the age of sixty (60) years old, and is already separated from work or has ceased to be self-employed; or (2) has reached the age of sixty five (65) years provided he/she has complied with the required monthly contributions.

            The Death Benefit under Section 13 of R.A. No. 11199 allows the primary beneficiaries of the deceased member to be entitled to monthly pension provided the latter has paid the required monthly contributions to be qualified thereof.

            The Permanent Disability Benefit under Section 13-A of R.A. No. 11199 provides that those who have permanent disabilities shall be entitled to monthly pension. The sum equivalent to the monthly pension is still subject to the conditions and qualifications provided by the said law. Further, the law provides different monthly pension for permanent total disability, which is defined by Section 13-A (d), and permanent partial disability.

            The Funeral Benefit under Section 13-B of R.A. No. 11199 provides for a funeral grant equivalent to Twelve Thousand Pesos (P12,000.00) to be paid, in cash or in kind, to help defray the cost of funeral expense upon the death of a member, including permanently totally disabled member or retiree.

The Sickness Benefit under Section 14 of R.A. No. 11199 provides daily sickness benefit equivalent to ninety percent (90%) of his average daily salary credit, to members who are confined for more than three (3) days in a hospital or elsewhere with the approval of the SSS. However, to avail of this benefit, the member must have complied with the conditions and qualifications provided by the said law.

The Unemployment Insurance or Involuntary Separation Benefits under Section 14-B of R.A. No. 11199 provides that an employee who is involuntarily unemployed or separated from work can avail of this benefit. However, this benefit shall only be availed once every three (3) years.

Violations and its corresponding Penalties

Section 28 of the New SS Law of 2018 provides for the following violations and its corresponding penalties:

VIOLATION	PENALTY (IES)
Whoever, for the purpose of causing any payment to be made under this Act, or under an agreement thereunder, where none is authorized to be paid, shall make or cause to be made false statement or representation as to any compensation paid or received or whoever makes or causes to be made any false statement of a material fact in any claim for any benefit payable under this Act, or application for loan with SSS, or whoever makes or causes to be made any false statement, representation, affidavit or document in connection with such claim or loan (Section 28 (a)).	Suffer penalties provided under Article 172 of the Revised Penal Code.
Whoever shall obtain or receive any money or check under this Act or any agreement thereunder, without being entitled thereto with intent to defraud any member, employer, or the SSS (Section 28 (b)).	Fine of not less than Five Thousand Pesos (P5,000.00) nor more than Twenty Thousand Pesos (P20,000.00) AND imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years.
Whoever buys, sells, offers for sale, uses, transfers or takes or gives in exchange, or pledges or gives in pledge, except as authorized in this Act or in regulations made pursuant thereto, any stamp, coupon, ticket, book or other device, prescribed pursuant to Section Twenty Three hereof by the Commission for the collection or payment of contributions required herein (Section 28 (c)).	Fine of not less than Five Thousand Pesos (P5,000.00) nor more than Twenty Thousand Pesos (P20,000.00) or imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court.
Whoever, with intent to defraud, alters, forges, makes or counterfeits any stamp, coupon, ticket, book or other device prescribed by the Commission for the collection or payment of any contribution required herein, or uses, sells, lends, or has in his possession any such altered, forged, or counterfeited materials, or makes, uses, sells, or has in his possession any such altered, forged, material in imitation of the material used in the manufacture of such stamp, coupon, ticket, book or other device (Section 28 (d)).	Fine of not less than Five Thousand Pesos (P5,000.00) nor more than Twenty Thousand Pesos (P20,000.00) or imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court.
Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations promulgated by the Commission (Section 28 (e)).	Fine of not less than Five Thousand Pesos (P5,000.00) nor more than Twenty Thousand Pesos (P20,000.00) OR imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years.
Violation consists in failure or refusal to register employees or himself, in case of the covered self-employed or to deduct contributions from the employees’ compensation and remit the same to the SSS (Section 28 (e)).	Fine of not less than Five Thousand Pesos (P5,000.00) nor more than Twenty Thousand Pesos (P20,000.00) AND imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years.
If the act or omission penalized under this Act be committed by an association, partnership, corporation or any other institution (Section 28 (f)).	Its managing head, directors or partners shall be liable for the penalties provided in this Act for the offense.
Any employee of the SSS who receives or keeps funds or property belonging, payable or deliverable to the SSS and shall appropriate the same, or shall take or misappropriate, or shall consent, or through abandonment or negligence, shall permit any other person to take such property or funds, wholly or partially, or shall otherwise be guilty of misappropriation of such funds or property (Section 28 (g)).	Suffer penalties provided under Article 217 of the Revised Penal Code.
Any employer who, after deducting the monthly contributions or loan amortizations from his employee’s compensation, fails to remit the said deduction to the SSS within thirty (30) days from the date they become due, shall be presumed to have misappropriated such contributions or loan amortizations (Section 28 (h)).	Suffer penalties provided under Article 315 of the Revised Penal Code.

            The New SS Law of 2018 or R.A. No. 11199, made changes to the old SS Law that strengthen the policy of the government to provide a better social welfare security to the people, and also to make sure that violators of the said law shall be punished accordingly.

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