Section 19June 18, 1954, Sec./Art. 19

Contributions of the Self-employed. The contributions to the SSS of the self-employed shall be determined in accordance with section eighteen of this Act: Provided, That the average monthly net earnings declared by the self-employed at the time of his registration with the SSS shall be considered as his monthly compensation and he shall pay both the employer and employee contributions.

Net earnings as understood under this section shall be the net income from his business or profession as reflected in the income tax return for the immediately preceding year, excluding rental income, dividend, interest investments and the like or all types of incomes which are not derived from his business registered with the SSS or from the practice of his profession.

The average monthly net earnings declared by the self-employed member at the time of his registration shall remain the basis of his monthly salary credit, unless he makes, at the start of the year, another declaration of his average monthly net earnings based on his income tax returns for the immediately preceding year, in which case such latest declaration becomes the new basis of his monthly salary credit. (As amended by Sec. 14, P.D. No. 1636, S-1979)