Article 58Labor and Agrarian Laws and Social Legislation, p. 58

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

owned or controlled by the Government: Provided , That a

self-employed

person

shall

be

both

employee

and

employer at the same time.

(d) Employee - Any person who performs services for an

employer in which either or both mental or physical

efforts are used and who receives compensation for such

services,

where

there

is

an

employer-employee

relationship: Provided , That a self-employed person shall

be both employee and employer at the same time.

(e) Dependents - The dependents shall be the following:

(1) The legal spouse entitled by law to receive support

from the member;

(2) The legitimate, legitimated or legally adopted, and

illegitimate

child

who

is

unmarried,

not

gainfully

employed, and has not reached twenty-one (21) years of

age,

or

if

over

twenty-one

(21) years of age, he is

congenitally or while still a minor has been permanently

incapacitated and incapable of self-support, physically or

mentally; and

(3) The parent who is receiving regular support from the

member.

(f)

Compensation

-

All

actual

remuneration

for

employment,

including

the

mandated

cost-of-living

allowance, as well as the cash value of any remuneration

paid in any medium other than cash except that part of

the remuneration in excess of the maximum salary credit

as Provided under Section Eighteen of this Act.

(g) Monthly salary credit - The compensation base for

contributions and benefits as indicated in the schedule in

Section Eighteen of this Act.

(h) Monthly - The period from one end of the last payroll

period of the preceding month to the end of the last

payroll period of the current month if compensation is on

hourly, daily or weekly basis; if on any other basis,

'monthly' shall mean a period of one (1) month.

(i) Contribution - The amount paid to the SSS by and on

behalf

of

the members in accordance with Section

Eighteen of this Act.

(j) Employment - Any service performed by an employee

for his employer except:

(1) Employment purely casual and not for the purpose of

occupation or business of the employer;

(2) Service performed on or in connection with an alien

vessel by an employee if he is employed when such vessel

is outside the Philippines;

(3) Service performed in the employ of the Philippine

Government or instrumentality or agency thereof;

(4)

Service

performed

in

the

employ

of

a

foreign

government

or

international

organization,

or

their

wholly-owned instrumentality: Provided , however , That

this

exemption

notwithstanding,

any

foreign

government,

international

organization

or

their

wholly-owned instrumentality employing workers in the

Philippines

or

employing

Filipinos

outside

of

the

Philippines,

may

enter into an agreement with the

Philippine

Government

for

the

inclusion

of

such

employees in the SSS except those already covered by

their respective civil service retirement systems: Provided ,

further , That the terms of such agreement shall conform

with the provisions of this Act on coverage and amount of

payment of contributions and benefits: Provided , finally ,

That the provisions of this Act shall be supplementary to

any such agreement; and

(5) Such other services performed by temporary and

other employees which may be excluded by regulation of

the Commission. Employees of bona fide independent

contractors

shall

not

be

deemed employees of the

employer engaging the service of said contractors.

(k) Beneficiaries - The dependent spouse until he or she

remarries,

the

dependent

legitimate,

legitimated

or

legally adopted, and illegitimate children, who shall be

the primary beneficiaries of the member: Provided , That

the dependent illegitimate children shall be entitled to

fifty

percent

(50%)

of

the

share

of

the

legitimate,

legitimated or legally adopted children: Provided , further ,

That

in

the

absence

of

the

dependent

legitimate,

legitimated children of the member, his/her dependent

illegitimate children shall be entitled to one hundred

percent (100%) of the benefits. In their absence, the

dependent

parents

who

shall

be

the

secondary

beneficiaries of the member. In the absence of all the

foregoing, any other person designated by the member

as his/her secondary beneficiary.

(l) Contingency - The retirement, death, disability, injury or

sickness and maternity of the member.

(m) Average monthly salary credit - The result obtained

by dividing the sum of the last sixty (60) monthly salary

credits

immediately

preceding

the

semester

of

contingency by sixty (60), or the result obtained by

dividing the sum of all the monthly salary credits paid

prior to the semester of contingency by the number of

monthly

contributions

paid

in

the

same

period,

whichever is greater: Provided , That the injury or sickness

which caused the disability shall be deemed as the

permanent disability for the purpose of computing the

average monthly salary credit.

(n) Average daily salary credit- The result obtained by

dividing the sum of the six (6) highest monthly salary

credits

in

the

twelve-month

period

immediately

preceding the semester of contingency by one hundred

eighty (180).

(o) Semester - A period of two (2) consecutive quarters

ending in the quarter of contingency.

(p) Quarter - A period of three (3) consecutive calendar

months

ending

on

the

last

day

of

March,

June,

September and December.

(q) Credited years of service - For a member covered prior

to January nineteen hundred and eighty five (1985) minus

the

calendar

year

of

coverage plus the number of

calendar years in which six (6) or more contributions have

been paid from January 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 hundred and eighty five

(1985), the number of calendar years in which six (6) or

more contributions have been paid from the year of

coverage up to the calendar year containing the semester

prior to the contingency: Provided , That the Commission

may provide for a different number of contributions in a

calendar year for it to be considered as a credited year of

service.

(r) Member - The worker who is covered under Section

Nine and Section Nine-A of this Act.

(s) Self-employed - Any person whose income is not

derived from employment, as defined under this Act, as

well as those workers enumerated in Section Nine-A

hereof.

(t) Net earnings - Net income before income taxes plus

non-cash charges such as depreciation and depletion

appearing in the regular financial statement of the

issuing or assuming institution.

(u)

Fixed

charges

-

Recurring

expense

such

as

amortization

of

debt

discount

or

rentals for leased

properties, including interest on funded and unfunded

debt.

SECTION 9. Coverage . - (a) Coverage in the SSS shall be

compulsory upon all employees not over sixty (60) years

of age and their employers: Provided , That in the case of

domestic helpers, their monthly income shall not be less

than One thousand pesos (P1,000.00) a month: Provided ,

further ,

That

any

benefit

already

earned

by

the

employees under private benefit plans existing at the

time of the approval of this Act shall not be discontinued,

reduced or otherwise impaired: Provided , further , That

private plans which are existing and in force at the time of

compulsory coverage shall be integrated with the plan of

the SSS in such a way where the employer's contribution

to his private plan is more than that required of him in

© Compiled By RGL

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