Basic Pay ...................................................... 26
Contents
Data Privacy Act (DPA)........................................ 2
Definitions ...................................................... 2
Scope of application ....................................... 3
Data Privacy Principles ................................... 4
Processing of Personal Data ........................... 5
Security Measures for Protection of Personal
Data ................................................................ 7
Rights of Data Subject .................................... 7
Data Breach Notification ................................ 8
Outsourcing and Subcontracting Agreements 9
Registration and Compliance Requirements 10
Electronic Commerce Act (ECA) ....................... 12
Principles ...................................................... 12
Application ................................................... 13
Definition of Terms....................................... 13
Legal Recognition and Communication of
Electronic Data Messages & Electronic
Documents ................................................... 14
Overtime Premium....................................... 27
Night Shift Differential ................................. 28
Holiday Premium.......................................... 28
13th Month Pay............................................. 29
Leaves .......................................................... 29
Service Incentive Leave ................................ 29
Maternity Leave ........................................... 30
Paternity Leave ............................................ 31
Parental Leave for Solo Parent ..................... 31
Social Security Law ........................................... 31
Definitions .................................................... 31
Scope and Coverage..................................... 33
Pension, Retirement and other benefits ...... 35
Exemptions from Tax, Legal Process and Lien
..................................................................... 37
Employee’s and Employer’s Contribution .... 37
Contributions from Self-employed member 38
Remittance of Contributions ........................ 38
Electronic Commerce in Carriage of Goods .. 16
Method of Collection & Payment................. 40
Electronic Transactions in Government ....... 17
Employment Records & Reports .................. 40
Policy, Contruction and Interpretation ......... 19
Penal Clauses ............................................... 41
Definition of Terms....................................... 19
Coverage and Scope ..................................... 20
Reengineering of Systems and Procedures .. 20
Citizen’s Charter ........................................... 21
Accessing Government Services ................... 21
Streamlined Procedures for the Issuance of
Permits and Licenses .................................... 23
Violations, Jurisdiction, Penalties, and
Immunity ...................................................... 25
Labor Law ......................................................... 26
Data Privacy Act (DPA)
[REPUBLIC ACT NO. 10173]
An Act Protecting Individual Personal Information
in Information and Communications Systems in
the Government and the Private Sector, Creating
for this Purpose a National Privacy Commission,
and for Other Purposes” the DPA aims to protect
the fundamental human right of privacy, of
communication while ensuring the free flow of
information to promote innovation and growth.
Definitions
Commission shall refer to the National Privacy
Commission created by virtue of this Act.
Consent of the data subject refers to any freely
given, specific, informed indication of will,
whereby the data subject agrees to the collection
and processing of personal information about
and/or relating to him or her. Consent shall be
evidenced by written, electronic or recorded
means. It may also be given on behalf of the data
subject by an agent specifically authorized by the
data subject to do so.
Data subject refers to an individual whose
personal information is processed.
Direct marketing refers to communication by
whatever means of any advertising or marketing
material which is directed to particular
individuals.
Filing system refers to any act of information
relating to natural or juridical persons to the
extent that, although the information is not
processed by equipment operating automatically
in response to instructions given for that
purpose, the set is structured, either by reference
to individuals or by reference to criteria relating
to individuals, in such a way that specific
information relating to a particular person is
readily accessible.
Information and Communications System refers
to a system for generating, sending, receiving,
storing or otherwise processing electronic data
messages or electronic documents and includes
the computer system or other similar device by
or which data is recorded, transmitted or stored
and any procedure related to the recording,
transmission or storage of electronic data,
electronic message, or electronic document.
The National Privacy Commission (“NPC” or
Commission) is an independent body mandated
to administer and implement the DPA, and to
monitor and ensure compliance of the country
with international standards set for personal data
protection.
Personal Information (PI) refers to any
information whether recorded in a material form
or not, from which (a) the identity of an individual
is apparent; or (b) can be reasonably and directly
ascertained by the entity holding the
information; or (c) when put together with other
information would directly and certainly identify
an individual.
Personal information controller refers to a person
or organization who controls the collection,
holding, processing or use of personal
information, including a person or organization
who instructs another person or organization to
collect, hold, process, use, transfer or disclose
personal information on his or her behalf. The
term excludes:
(1) A person or organization who performs such
functions as instructed by another person or
organization; and
(2) An individual who collects, holds, processes or
uses personal information in connection with the
individual’s personal, family or household affairs.
Personal information processor refers to any
natural or juridical person qualified to act as such
under this Act to whom a personal information
controller may outsource the processing of
personal data pertaining to a data subject.
Processing refers to any operation or any set of
operations
performed
upon
personal
information including, but not limited to, the
collection, recording, organization, storage,
updating or modification, retrieval, consultation,
use, consolidation, blocking, erasure or
destruction of data.
are located in the Philippines, or those
who maintain an office, branch or agency
in the Philippines subject to the
immediately succeeding paragraph.
Does not apply to:
1.
Privileged information refers to any and all forms
of data which under the Rules of Court and other
pertinent
laws
constitute
privileged
communication.
Sensitive Personal Information
SPI refers to info about an individual’s:
• Race
• Religious,
philosophical or
political affiliations
• Ethnic
• Health, education,
origin
genetic or sexual life
• Marital
• Proceeding for any
status
offense committed or
alleged to have been
committed by an
individual
• Age
• Government-issued
IDs
• Color
• Those established by
an executive order or
an act of Congress to be
kept classified
2.
3.
Scope of application
Applicability:
1.
2.
The processing of all types of personal
information and
To any natural and juridical person
involved in personal information
processing including those personal
information controllers and processors
who, although not found or established
in the Philippines, use equipment that
4.
5.
Information about any individual who is
or was an officer or employee of a
government institution that relates to
the position or functions of the
individual, including:
.
The fact that the individual is or
was an officer or employee of
the government institution;
a.
The title, business address and
office telephone number of the
individual;
b. The classification, salary range
and responsibilities of the
position held by the individual;
and
c.
The name of the individual on a
document prepared by the
individual in the course of
employment
with
the
government;
Information about an individual who is or
was performing service under contract
for a government institution that relates
to the services performed, including the
terms of the contract, and the name of
the individual given in the course of the
performance of those services;
Information relating to any discretionary
benefit of a financial nature such as the
granting of a license or permit given by
the government to an individual,
including the name of the individual and
the exact nature of the benefit;
Personal
information
processed
for journalistic, artistic, literary or
research purposes;
Information necessary in order to carry
out
the
functions
of
public
authority which includes the processing
of personal data for the performance by
the independent, central monetary
authority and law enforcement and
regulatory
agencies
of
their
constitutionally
and
statutorily
mandated
functions.
6.
7.
No amendments or repeal to the
following laws:
.
Republic
Act
No.
1405,
otherwise known as the Secrecy
of Bank Deposits Act;
a.
Republic
Act
No.
6426,
otherwise known as the Foreign
Currency Deposit Act; and
b. Republic
Act
No.
9510,
otherwise known as the Credit
Information System Act (CISA);
Information necessary for banks and
other financial institutions under the
jurisdiction of the independent, central
monetary authority or Bangko Sentral ng
Pilipinas to comply with the CISA and
Republic Act No. 9160, as amended,
otherwise known as the Anti-Money
Laundering Act and other applicable
laws; and
Personal information originally collected
from residents of foreign jurisdictions in
accordance with the laws of those
foreign jurisdictions, including any
applicable data privacy laws, which is
being processed in the Philippines.
Protection Afforded to Journalists and Their
Sources: No amendment or repeal of Republic Act
No. 53, which affords the publishers, editors or
duly accredited reporters of any newspaper,
magazine
or
periodical
of
general
circulation protection from being compelled to
reveal the source of any news report or
information appearing in said publication which
was related in any confidence to such publisher,
editor, or reporter.
Extraterritorial Application: The Data Privacy Act
applies to an act done or practice engaged in and
outside of the Philippines by an entity if:
1.
2.
3.
The act, practice or processing relates
to personal information about a
Philippine citizen or a resident;
The entity has a link with the Philippines,
and the entity is processing personal
information in the Philippines or even if
the processing is outside the Philippines
as long as it is about Philippine citizens or
residents such as, but not limited to, the
following:
a.
A contract is entered in the
Philippines;
b. A juridical entity unincorporated
in the Philippines but has central
management and control in the
country; and
c.
An entity that has a branch,
agency, office or subsidiary in the
Philippines and the parent or
affiliate of the Philippine entity
has
access
to
personal
information; and
The entity has other links in the
Philippines such as, but not limited to:
a.
The entity carries on business in
the Philippines; and
b. The
personal
information
was collected or held by an
entity in the Philippines.
Data Privacy Principles
1. Transparency
No surprises in how the data collected is
being processed
(Data subject must be aware of the
nature, purpose, and extent of
processing)
HOW IS TRANSPARENCY SHOWN?
1. CONSENT – the data subject
agrees to the collection and
processing of personal
information.
• Freely given
• Specific
•
Informed indication
will
2. PRIVACY POLICY
✓ Internal statement
that governs an
organization or
entity’s handling
practices of personal
information. Directed
at the users of
personal information.
3. PRIVACY NOTICE
✓ Statement made to a
data subject that
describes how the
organization collects,
uses, retains, and
discloses personal
information. Directed
to external
stakeholders.
2. Legitimate Purpose
Required by law and not contrary to
public morals
(Compatible with a declared and
specified purpose)
3. Proportionality
Collect only what is needed and
commensurate to the benefits
(Processing should be adequate,
relevant, suitable, necessary and not
excessive)
(a) Collected for specified and legitimate
purposes determined and declared
before, or as soon as reasonably
practicable after collection, and later
processed in a way compatible with such
declared, specified and legitimate
purposes only;
(b) Processed fairly and lawfully;
(c) Accurate, relevant and, where
necessary for purposes for which it is to
be used the processing of personal
information, kept up to date; inaccurate
or incomplete data must be rectified,
supplemented, destroyed or their
further processing restricted;
(d) Adequate and not excessive in
relation to the purposes for which they
are collected and processed;
(e) Retained only for as long as necessary
for the fulfillment of the purposes for
which the data was obtained or for the
establishment, exercise or defense of
legal claims, or for legitimate business
purposes, or as provided by law; and
(f) Kept in a form which permits
identification of data subjects for no
longer than is necessary for the purposes
for which the data were collected and
processed:
Processing of Personal Data
The
processing
of
personal
information shall be allowed, subject
to compliance with the requirements
of this Act and other laws allowing
disclosure of information to the
public and adherence to the
principles of transparency, legitimate
purpose and proportionality.
Personal information must, be:
CRITERIA FOR LAWFUL PROCESSING
OF PI
• Consent
• Contract with the individual
• Vital interests/Life & health
• Legal obligation
• National emergency / public order &
safety, as prescribed by law
• Constitutional or statutory mandate
of a public authority
• Legitimate interests of the PIC or
third parties
• Consent
• Existing laws & regulations
• Life & health
• Processing by non-stock, non-profit
orgs
• Medical treatment
• Lawful rights & interests in court
proceedings/legal claims
The processing of sensitive personal
information and privileged
information shall be prohibited,
except in the following cases:
CRITERIA FOR LAWFUL PROCESSING
OF SPI
Penalties
Violation
Unauthorized Processing
Accessing due to
negligence
Improper Disposal
Processing for
Unauthorized Purposes
Unauthorized Access or
Intentional Breach
Concealment of Security
Breaches
Malicious Disclosure
Unauthorized disclosure
Combination or Series of
Acts
Imprisonment
PI
SPI
1 to 3 3 to 6 years
years
1 to 3 3 to 6 years
years
6 mos. 1 to 3 years
to 2
years
1 year 2 to 7 years
and 6
mos. to
5 years
1 to 3 years
Fine
PI
SPI
P500,000 – P2,000,000 P500,000 – P4,000,000
1 and 6
mos. to 5
years
1 and 6 mos. to 5
years
1 to 3 3 to 5 years
years
3 to 6 years
P500,000 – P1,000,000
P500,000 – P2,000,000
P500,000 – P4,000,000
P100,000 – P500,000
P100,000 – P1,000,000
P500,000 – P1,000,000
P500,000 – P2,000,000
P500,000 – P2,000,000
P500,000 – P1,000,000
P500,000-P1,000,000
P1,000,000 –
P5,000,000
P1,000,000 – P5,000,000
Security Measures for Protection of
Personal Data
TYPES OF SECURITY MEASURES (POT)
1) Physical
✓ Should help prevent theft
✓ Workstations secured
• Security locks at the
entrance of the office
where data is stored
• Biometrics
verification
2) Organizational
✓ Appoint a DPO
✓ Conduct Privacy Impact
Assessment
✓ Training & Capacity Building
3) Technical
✓ Implementations of ICT’s
✓ Protection against
Ransomwares, Malwares, etc.
REASON FOR THE MEASURE (CIA)
1) Confidentiality
2) Integrity
3) Availability
✓
✓
✓
✓
DUTIES & RESPONSIBILITY OF PIC/PIP
Implement reasonable and
appropriate POT
Promptly notify the NPC in case of (a)
breach or security incident; (b) PI or
SPI involved; (c) Measures done by
PIC to reduce harm; (d) PIC’s
representatives and their details
Ensure employees, agents, or
representatives involved in the
processing shall operate and hold the
PI under strict confidentiality
Must ensure that third parties
processing PI on its behalf shall also
provide security measures
Rights of Data Subject
•
Right to be informed - IRR, Section 34.a
•
Right to object - IRR, Section 34.b
•
Right to access - IRR, Section 34.c
•
Right to data portability - IRR, Section 36
•
Right to correct (rectification) - IRR,
Section 34.d
•
Right to erasure or blocking - IRR,
Section 34.e
•
Right to file a complaint - IRR, Section
34.a.2
•
Right to damages - IRR, Section 34.f
Section 19 provides that rights may not be
invoked if the processed personal information
are:
1. Scientific and statistical research
2. No activities and decisions are carried
regarding the data subject
3. PI shall be held under strict
confidentiality
4. PI gathered for:
i.
Investigation
ii.
In relation to
a. Criminal
b. Administrative
c. Tax liabilities
5 PILLARS OF DATA PRIVACY
ACCOUNTABILITY & COMPLIANCE
Pillar
1. Appoint a Data
Protection Officer
2. Conduct a Privacy
Impact Assessment
3. Have a Privacy
Management
Program & codify it
into a Privacy Manual
4. Implement data
privacy & protection
measures
5. Exercise Breach
Reporting Procedures
Reference
NPC Advisory
2017-01
NPC Advisory 201703
PMP Guide in NPC
Privacy Toolkit
NPC Circular 201601; DPAC in NPC
Privacy Toolkit
NPC Circular 2016-03
Data Breach Notification
Generally, notification is required only when:
1. The personal data involves sensitive
personal information or any other
information that may be used to enable
identity fraud. “Other information”
includes, but is not limited to: data about
the financial or economic situation of the
data subject; usernames, passwords and
other login data; biometric data; copies
of identification documents, licenses or
unique identifiers like PhilHealth, SSS,
GSIS, TIN number; or other similar
information, which may be made the
basis of decisions concerning the data
subject, including the grant of rights or
benefits.
2. There is reason to believe that the
information may have been acquired by
an unauthorized person; and
3. The personal information controller or
the NPC believes that the unauthorized
acquisition is likely to give rise to a real
risk of serious harm to any affected data
subject.
The Commission and affected data
subjects shall be notified within 24
hours upon knowledge of or
reasonable belief by the PIC or PIP that
a security breach has occurred.
Contents of Notification
National Privacy Commission
Data Subjects
nature of the breach
sensitive personal information possibly involved
measures taken by the entity to address the breach
measures taken to reduce the harm or negative
consequences of the breach
authorities or contact details where the data
subject can obtain additional information about the
breach
any assistance to be provided to the affected data
subjects
Delay of Notification
a) In evaluating if notification is
unwarranted, the Commission may take
into account compliance by the personal
information controller with this section
and existence of good faith in the
acquisition of personal information.
b) The Commission may exempt a personal
information controller from notification
where, in its reasonable judgment, such
notification would not be in the public
interest or in the interests of the affected
data subjects.
c) The Commission may authorize
postponement of notification where it
may hinder the progress of a criminal
investigation related to a serious breach.
Breach Report
a. The PIC shall notify the Commission by
submitting a report, whether written or
electronic, containing the required information.
The PIC shall also include in the report the name
of a designated representative and his or her
contact information. In case of submission by
electronic mail, the PIC shall ensure secure
transmission.
b. All security incident or security breach shall be
documented even if not covered by the
notification requirements. For security breach,
these should include the facts surrounding the
incidents, effects and the remedial actions taken.
For other security incidents, aggregated data
shall constitute sufficient compliance. These
reports shall be made available upon demand. An
electronic summary shall be submitted to the
Commission annually.
The Procedure for security breach
notification shall be in accordance
with the Act and these Rules, and any
other issuance of the Commission
Outsourcing and Subcontracting
Agreements
A personal information controller may
subcontract the processing of personal data,
provided that PIC:
•
•
•
Remains responsible for ensuring proper
safeguards are in place
Prevent its use for unauthorized
purposes
Comply with requirements of DPA and
other applicable laws
Agreements for outsourcing or
subcontracting shall include the following:
a. Subject and duration of work;
b. The extent, type and purpose of
data processing;
c. Technical and organizational
measures to be taken;
d. The rectification, erasure and
blocking of data;
e. The processor's obligations,
particularly with regard to
monitoring;
f. Rights regarding subcontracting;
g. The controller's monitoring
rights;
h. The subcontractor's notification
obligations;
i. The extent of the controller's
authority to issue instructions to
the processor;
j. The return and/or erasure of data
by the processor at the
conclusion of the work;
k. The geographic location/s at
which the processing under the
subcontracting agreement will be
performed.
Duty of personal information processor
o shall comply with all the requirements of this Act and other applicable laws
o put in place adequate safeguards for data privacy and security
o comply with standards for organizational
o physical and technical security measures
o uphold the rights of data subjects.
Registration and Compliance Requirements
Enforcement of the DPA
a. Registration of personal data processing systems operating in the country, including the personal
data processing system of 34 contractors and its employees entering into contracts with
government that involves accessing or requiring sensitive personal information from 1,000 or more
individuals;
b. Notification of automatic processing operations being carried out by PIC or by those they
instructed to do so;
c. Approval by the Commission prior to data sharing if the personal data to be shared is under
control or custody of the government;
d. Annual report on documented security incidents; and
e. Compliance with other requirements that may be provided in other issuances of the Commission.
Registration of Personal Data Processing Systems
a. The contents of registration shall include:
1. The name and address of the controller and of his representative, if any, including their
contact details;
2. The purpose or purposes of the processing;
3. A description of the category or categories of data subject and of the data or categories of
data relating to them;
4. The recipients or categories of recipient to whom the data might be disclosed;
5. Proposed transfers of data outside the Philippines;
6. A description of privacy and security measures for data protection;
7. Name/address/contact details of the compliance officer;
8. Description of the information and communications system;
9. Copy of all policies relating to data governance, data privacy, and information security; and
10.Attestation to all certifications attained that are related to information and communications
processing.
b. In case of complaints or violations of the Act or these Rules, the failure to register shall be taken into
consideration in imposing the fine or penalty.
c. The procedure for registration shall be in accordance with these Rules and the issuances of the
Commission.
Notification for automatic Processing Operations
The PIC shall notify the Commission before carrying out any wholly or partly automatic processing
operations or set of such operations intended to serve a single purpose or several related
purposes, including passive collection of data.
a. The contents of notification should sufficiently detail the following information:
1. Purpose of processing;
2. Data or categories of data to undergo processing;
3. Category or categories of data subject;
4. The recipients or categories of recipient to whom the data are to be disclosed;
5. The length of time the data are to be stored;
6. Methods and logic utilized for automated processing
7. Any decisions relating to the data subject that would be made on the basis of
processed data or that would affect adversely the rights and freedoms of data subject.
b. The Commission shall be given the identity of contact persons from the PIC and any other body
involved in processing of personal data with their contact details, and which shall immediately be
updated in case of changes.
c. No decision with legal effects concerning the data subject shall be made solely on the basis of
automated processing, unless data subject consents.
d. Any processing not in accordance with the notification and the declared purpose shall be
considered unauthorized, and subject to sanctions which include ban on processing or fines,
without prejudice to possible administrative, criminal, or civil liability.
Approval of Data Sharing Agreements
a. Prior approval of the Commission shall be required in cases where data sharing involves personal data
under control and custody of any government body, unless the proposed data sharing is specifically
authorized by law.
b. Data sharing for purpose of research shall require prior approval unless the Commission or a body
authorized by the Commission, or by law, has approved the protocol for the proposed research.
c. Data Sharing should be in accordance with these Rules and other issuances of the Commission.
Review by the Commission
a. Compliance by a personal information controller or personal information processor with the data
privacy act, these Rules and other issuances of the Commission;
b. Compliance with the requirement of putting in place adequate safeguards for data privacy and
security;
c. Any data sharing agreement, outsourcing contract and similar contracts involving processing of
personal data, and its implementation, even those agreements that had been previously approved or
authorized by law;
d. Any off-site or online access to sensitive personal data in government allowed by head of agency;
e. Processing of personal data for research purpose, public function, or commercial activities;
f. Any reported violation of the rights and freedoms of data subject;
g. Other matters necessary to ensure effective implementation of the Act, these Rules and other
issuances of the Commission.
Electronic Commerce Act (ECA)
[REPUBLIC ACT NO. 8792]
An act providing and use of electronic
commercial and non-commercial transactions,
penalties for unlawful use thereof, and other
purposes.
facilitate domestic and international
dealings, transactions, arrangements
agreements, contracts and exchanges
and storage of information through
the utilization of electronic, optical
and
similar
medium,
mode,
instrumentality and technology to
recognize the authenticity and
reliability of electronic data messages
or electronic documents related to
such activities and to promote the
universal
use
of
electronic
transactions in the government and by
the general public.
Principles
Role of the Government. Government
intervention, when required, shall promote a
stable legal environment, allow a fair allocation
of scarce resources and protect public interest.
Such intervention shall be no more than is
essential and should be clear, transparent,
objective, non-discriminatory, proportional,
flexible,
and
technologically
neutral.
Mechanisms for private sector input and
involvement in policy making shall be
promoted and widely used.
Role of the Private Sector. The development of
electronic commerce shall be led primarily by
the private sector in response to market forces.
Participation in electronic commerce shall be
pursued through an open and fair competitive
market.
International Coordination and Harmonization.
Electronic commerce is global by nature.
Government policies that affect electronic
commerce will be internationally coordinated
and
compatible
and
will
facilitate
interoperability within an international,
voluntary and consensus-based environment
for standards setting.
Neutral
Tax
Treatment.
Transactions
conducted using electronic commerce should
receive neutral tax treatment in comparison to
transactions using non-electronic means and
taxation of electronic commerce shall be
administered in the least burdensome
manner.
Protection of Users. The protection of users, in
particular
with
regard
to
privacy,
confidentiality, anonymity and content control
shall be pursued through policies driven by
choice, individual empowerment, industry-led
solutions. It shall be in accordance with
applicable laws. Subject to such laws, business
should make available to consumers and,
where appropriate, business users the means
to exercise choice with respect to privacy,
confidentiality, content control and, under
appropriate circumstances, anonymity.
Electronic Commerce Awareness. Government
and the private sector will inform society, both
individual consumers and businesses, about
the potentials of electronic commerce and its
impact on social and economic structures.
Small
and
Medium-Sized
Enterprises.
Government will provide small and mediumsized enterprises (SMEs) with information and
education relevant to opportunities provided
by global electronic commerce. Government
will create an environment that is conducive to
private sector investment in information
technologies and encourage capital access for
SMEs.
Skills Development. Government shall enable
workers to share in the new and different
employment
generated
by
electronic
commerce. In this regard, the Government
shall continue to promote both formal and
non-formal skills-development programs.
Government as a Model User. Government
shall utilize new electronic means to deliver
core public services in order to demonstrate
the benefits derived therefrom and to
promote the use of such means. In this regard,
the Government will be a pioneer in using new
technologies. In particular, the Government
Information System Plan (GISP), which is
expected to include, but not be limited to, online public information and cultural resources,
databases for health services, web sites at
local, regional and national levels and public
libraries and databases, where appropriate,
will be implemented in accordance with the
provisions of the Act and RPWEB.
supported by appropriate government
policies. Government will work closely with
business in preparing for and reacting to
changes caused by convergence.
Domain Name System. The Government
supports initiatives to ensure that Internet
users will have a sufficient voice in the
governance of the domain name system.
Access to Public Records. Government shall
provide equal and transparent access to public
domain information.
Dispute Mechanisms. Government encourages
the use of self-regulatory extra-judicial dispute
settlement mechanisms such as arbitration and
mediation as an effective way of resolving
electronic commerce disputes.
Convergence. Convergence of technologies is
crucial to electronic commerce and will be
Application
commercial activities
any kind of electronic document
non-commercial activities
Definition of Terms
"Addressee" refers to a person who is intended
by the originator to receive the electronic data
message or electronic document, but does not
include a person acting as an intermediary with
respect to that electronic data message or
electronic data document.
"Computer" refers
to any
device
or
apparatus singly or interconnected which, by
electronic, electro-mechanical, optical and/or
magnetic impulse, or other means with the same
function, can receive, record, transmit, store,
process, correlate, analyze, projects, retrieve,
domestic and international
dealings, transactions,
arrangements, agreements
contracts and exchanges and
storage of information.
and/or produce information, data, text, graphics,
figures, voice, video, symbols or other modes of
expression or perform any one or more of these
functions.
"Electronic
data
message" refers
to information generated, sent, received or
stored by electronic, optical or similar means.
"Information and Communications System" refers
to a system for generating, sending, receiving,
storing, or otherwise processing electronic
documents and includes the computer system or
other similar device by or in which data is
recorded or stored and any procedures related to
the recording or storage of electronic document.
“Electronic
signature" refers
to
any distinctive mark,
characteristic
and/or
sound in electronic from, representing the
identity of a person and attached to or logically
associated with the electronic data message or
electronic document or any methodology or
procedures employed or adopted by a person
and executed or adopted by such person with the
intention of authenticating or approving an
electronic data message or electronic document.
"Electronic document" refers to information or
the representation of information, data, figures,
symbols or other modes of written expression,
described or however represented, by which a
right is established or an obligation extinguished,
or by which a fact may be prove and affirmed,
which is receive, recorded, transmitted, stored,
processed, retrieved or produced electronically.
"Electronic
key" refers
to
a secret
code which secures and defends sensitive
information that crossover public channels into a
form decipherable only with a matching
electronic key.
"Intermediary" refers to a person who in behalf of
another person and with respect to a particular
electronic document sends, receives and/or
stores, provides other services in respect of that
electronic data message or electronic document.
"Originator" refers to a person by whom, or on
whose behalf, the electronic document purports
to have been created, generated and/or sent. The
term does not include a person acting as an
intermediary with respect to that electronic
document.
"Service provider" refers to a provider of:
1. Online services or network access or
the operator
of
facilities therefor
including
entities
offering
the
transmission, routing, or providing of
connections for online communications,
digital or otherwise, between or among
points specified by a user, of electronic
documents of the user's choosing; or
2. The necessary technical means by which
electronic documents of an originator
may be stored and made accessible to
designated or undesignated third party.
Such service providers shall
.
Have no authority to:
.
modify or alter the
content of the electronic
document received or
i.
to make
any
entry therein on behalf
of
the
originator,
addressee or any third
party unless specifically
authorized to do so,
a. Retain
the
electronic
document in accordance with
the specific request or as
necessary for the purpose of
performing the services it was
engaged to perform.
Legal Recognition and Communication of
Electronic Data Messages & Electronic
Documents
Legal Recognition of Electronic Data Messages
Information shall not be denied
validity or enforceability solely on the
ground that it is in the form of
electronic data message purporting to
give rise to such legal effect, or that it
is merely incorporated by reference in
that electronic data message.
Legal Recognition of Electronic Documents
Electronic
the legal
documents shall have
effect,
validity
or
enforceability as any other document
or legal writing, and:
ii.
a. Where the law requires a document to
be in writing, that requirement
is met by an electronic document if the
said electronic document:
i.
maintains its integrity and
reliability and
ii.
can be authenticated so as to
be usable for subsequent
reference, in that:
1) The
electronic
document
has remained
complete
and
unaltered, apart from
the addition of any
endorsement and any
authorized change, or
any change which
arises in the normal
course
of
communication,
storage and display;
and
2) The
electronic
document
is reliable in the light
of
the purpose for
which
it
was
generated and in the
light of all relevant
circumstances.
b. Paragraph (a) applies whether the
requirement therein is in the from of
an obligation or whether the law
simply provides consequences for the
document not being presented or
retained in its original from.
c. Where the law requires that a
document be presented or retained in
its original form, that requirement
is met by an electronic document ifi.
There
exists
a reliable
assurance as
to
the integrity of the document
from the time when it was
first generated in its final
from; and
That document is capable of
being displayed to the person
to whom it is to be presented:
Provided, That no provision of
the Act shall apply to vary any
and all requirements of
existing laws on formalities
required in the execution of
documents for their validity.
Legal Recognition of Electronic Signatures
An electronic signature on the
electronic
document
shall
be equivalent to the signature of a
person on a written document if:
a. the signature is an electronic
signature and
b. proved by showing that a prescribed
procedure, not alterable by the parties
interested in the electronic document,
existed under which.
A method is used to identify
the party sought to be bound
and to indicate said party's
access to the electronic
document necessary for his
consent or approval through
the electronic signature;
i.
Said method is reliable and
appropriate
for
the
purpose for
which
the
electronic document was
generated or communicated,
in
the
light
of
all
circumstances, including any
relevant agreement;
ii.
It is necessary for the party
sought to be bound, in order
to proceed further with the
transaction to have executed
or provided the electronic
signature; and
iii.
The other party is authorized
and enable to verify the
electronic
signature and
to make the decision to
proceed with the transaction
authenticated by the same.
Communication of Electronic Data Messages or
Electronic Documents
Formation of Validity of Electronic Contracts:
1. Except as otherwise agreed by the
parties, (1) an offer, (2) the acceptance
of an offer and (3) such other
elements required under existing laws
for the formation of contracts may be
expressed in, demonstrated and proved
by means of electronic data messages
or electronic documents and no
contract shall be denied validity or
enforceability on the sole ground that
it is in the form of an electronic data
message or electronic document, or
that any or all of the elements
required under existing laws for the
formation of contracts is expressed,
demonstrated and proved by means
of electronic data messages or
electronic documents.
2. Electronic transactions made through
networking among banks, or linkages
thereof with other entities or
networks, and vice versa:
. shall
be deemed
consummated upon
the actual dispensing of cash
or the debit of one account
and the corresponding credit
to another, whether such
transaction is initiated by the
depositor or by an authorized
collecting party.
a. The obligation of one bank,
entity, or person similarly
situated to another arising
therefrom
shall
considered absolute and
shall not be subjected to the
process of preference of
credits.
As between the originator and the
addressee of an electronic data
message or electronic document, a
declaration of will or other statement
shall not be denied legal effect, validity
or enforceability solely on the ground
that it is in the form of an electronic
data message or electronic document.
Electronic Commerce in Carriage of
Goods
Actions Related to Contracts of Carriage of
Goods: applies to any action in connection with,
or in pursuance of, a contract of carriage of
goods, including but not limited to:
A. (i) furnishing the marks, number,
quantity or weight of goods;
(ii) stating or declaring the nature or
value of goods;
(iii) issuing a receipt for goods;
(iv) confirming that goods have been
loaded;
B. (i) notifying a person of terms and
conditions of the contract;
(ii) giving instructions to a carrier;
C. (i) claiming delivery of goods;
(ii) authorizing release of goods;
(iii) giving notice of loss of, or damage to
goods;
D. giving any other notice or statement in
connection with the performance of the
contract;
E. undertaking to deliver goods to a named
person or a person authorized to claim
delivery;
F. granting, acquiring, renouncing,
surrendering, transferring or negotiating
rights in goods;
G. acquiring or transferring rights and
obligations under the contract.
Transport Documents:
1. Where the law requires that any action
referred to contract of carriage of goods
be carried out in writing or by using a
paper document, that requirement
is met if the action is carried out by
using one or more electronic data
messages or electronic documents.
2. The above applies whether the
requirement there in is in the form of an
obligation or whether the law simply
provides consequences for failing either
to carry out the action in writing or to
use a paper document.
3. If (a) a right is to be granted to, or (b) an
obligation is to be acquired by, one
person and no person, and if the law
requires that, in order to effect this, the
right or obligation must be conveyed to
that person by the transfer, or use of, a
paper document, that requirement
is met if the right or obligation is
conveyed by using one or more
electronic data messages or electronic
documents: Provided, that a reliable
method is used to render such
electronic data messages or electronic
documents unique.
4. For the purposes of above, the standard
of reliability required shall be assessed
in the light of the purpose for which the
right or obligation was conveyed and in
the light of all the circumstances,
including any relevant agreement.
5. Where one or more electronic data
messages or electronic documents are
used to effect any action in
subparagraph (f) and (g) of the above
(Actions Related to Contracts of Carriage
of Goods), no paper document used to
effect any such action is valid unless the
use of electronic data message or
electronic document has
been terminated and replaced by the
used of paper documents. A paper
document issued in these circumstances
shall contain a statement of such
termination. The replacement of the
electronic data messages or electronic
documents by paper documents shall
not affect the rights or obligation of the
parties involved.
6. If a rule of
law is compulsorily applicable to a
contract of carriage of goods which is in,
or is evidenced by, a paper document,
that rule shall not be inapplicable to
such a contract of carriage of goods
which is evidenced by one or more
electronic data messages or electronic
documents by reason of the fact that
the contract is evidenced by such
electronic data message or electronic
documents instead of by a paper
document.
Electronic Transactions in Government
notwithstanding any law to the contrary,
within two (2) years from the date of the
effectivity of the Act, all departments,
bureaus, offices and agencies of the
government, as well as all governmentowned and-controlled corporations, that
pursuant to law require or accept the
filing of documents, require that
documents be created, or retained
and/or submitted, issue permits, licenses
or certificates of registration or approval,
or provide for the method and manner of
payment or settlement of fees and other
obligations to the government, shall:
a) accept the creation, filing or retention
of such documents in the form of
electronic data messages or electronic
documents;
b) issue permits, licenses, or approval in
the form of electronic data messages or
electronic documents;
c) require and/or accept payments, and
issue receipts acknowledging such
payments, through systems using
electronic data messages or electronic
documents; or
d) transact the government business
and/or perform governmental functions
using electronic data messages or
electronic documents, and for the
purpose, are authorized to adopt and
promulgate, after appropriate public
hearing and with due publication in
newspapers of general circulation, the
appropriate rules, regulations, or
guidelines, to, among others, specify (1) the manner and format in which
such electronic data messages or
electronic documents shall be filed,
created, retained or issued;
(2) where and when such electronic
data messages or electronic
documents have to be signed, the use
of a electronic signature, the type of
electronic signature required;
(3) the format of an electronic data
message or electronic document and
the manner the electronic signature
shall be affixed to the electronic data
message or electronic document;
(4) the control processes and
procedures as appropriate to ensure
adequate integrity, security and
confidentiality of electronic data
messages or electronic documents or
records or payments;
(5) other attributes required of
electronic data messages or
electronic documents or payments;
and
(6) the full or limited use of the
documents and papers for
compliance with the government
requirements;
Principles Governing Government Use of
Electronic Data Messages, Electronic Documents
and Electronic Signatures.
a) Technology Neutrality. All solutions
implemented shall neither favor a particular
technology over another nor discriminate
against or in favor of particular vendors of
technology.
b) Interoperability. All implementation of
technological solutions shall ensure the
interoperability of systems forming part of the
government network.
c) Elimination of Red Tape. Government
processes shall be re-examined and if
appropriate, simplified or re-engineered to
maximize the functionality of technology and
to eliminate unnecessary delays in the delivery
of governmental services.
d) Security Measures. Government shall
implement appropriate security measures to
guard against unauthorized access, unlawful
disclosure of information, and to ensure the
integrity of stored information.
e) Auditability. All systems installed shall
provide for an audit trail.
Ease of Doing Business and
Efficient Delivery of
Government Service Delivery
Act
Policy, Contruction and Interpretation
It is hereby declared the policy of the State to
promote integrity, accountability, proper
management of public affairs and public property
as well as to establish effective practices, aimed
at efficient turnaround of the delivery of
government services and the prevention of graft
and corruption in government. Towards this end,
the State shall maintain honesty and
responsibility among its public officials and
employees, and shall take appropriate measures
to promote transparency in each agency with
regard to the manner of transacting with the
public, which shall encompass a program for the
adoption of simplified requirements and
procedures that will reduce red tape and
expedite business and nonbusiness related
transactions in government.
Definition of Terms
As used in this Act, the following terms are
defined as follows:
"(a) Action refers to the written approval or
disapproval made by a government office or
agency on the application or request submitted
by an applicant or requesting party for
processing;
"(b) Business One Stop Shop (BOSS) – a single
common site or location, or a single online
website or portal designated for the Business
Permit and Licensing System (BPLS) of an LGU to
receive and process applications, receive
payments, and issue approved licenses,
clearances, permits, or authorizations;
"(c) Business-related transactions – a set of
regulatory requirements that a business entity
must comply with to engage, operate or continue
to operate a business, such as, but not limited to,
collection or preparation of a number of
documents, submission to national and local
government authorities, approval of application
submitted, and receipt of a formal certificate or
certificates, permits, licenses which include
primary and secondary, clearances and such
similar authorization or documents which confer
eligibility to operate or continue to operate as a
legitimate business;
"(d) Complex transactions – applications or
requests submitted by applicants or requesting
parties of a government office which necessitate
evaluation in the resolution of complicated issues
by an officer or employee of said government
office, such transactions to be determined by the
office concerned;
"(e) Fixer – any individual whether or not officially
involved in the operation of a government office
or agency who has access to people working
therein, and whether or not in collusion with
them, facilitates speedy completion of
transactions for pecuniary gain or any other
advantage or consideration;
"(f) Government service – the process or
transaction between applicants or requesting
parties and government offices or agencies
involving applications for any privilege, right,
reward, license, clearance, permit or
authorization, concession, of for any
modification, renewal or extension of the
enumerated applications or requests which are
acted upon in the ordinary course of business of
the agency or office concerned;
"(g) Highly technical application – an application
which requires the use of technical knowledge,
specialized skills and/or training in the processing
and/or evaluation thereof;
"(h) Nonbusiness transactions – all other
government transactions not falling under
Section 4 (c) of this Act;
"(i) Officer or employee – a person employed in a
government office or agency required to perform
specific duties and responsibilities related to the
application or request submitted by an applicant
or requesting party for processing;
"(j) Processing time – the time consumed by an
LGU or national government agency (NGA) from
the receipt of an application or request with
complete
requirements,
accompanying
documents and payment of fees to the issuance
of certification or such similar documents
approving or disapproving an application or
request;
"(k) Red tape – any regulation, rule, or
administrative procedure or system that is
ineffective or detrimental in achieving its
intended objectives and, as a result, produces
slow, suboptimal, and undesirable social
outcomes;
"(l) Regulation – any legal instrument that gives
effect to a government policy intervention and
includes licensing, imposing information
obligation, compliance to standards or payment
of any form of fee, levy, charge or any other
statutory and regulatory requirements necessary
to carry out activity; and
"(m) Simple transactions – applications or
requests submitted by applicants or requesting
parties of a government office or agency which
only require ministerial actions on the part of the
public officer or employee, or that which present
only inconsequential issues for the resolution by
an officer or employee of said government."
Coverage and Scope
This Act shall apply to all government offices and
agencies including local government units (LGUs),
government-owned or controlled corporations
and other government instrumentalities,
whether located in the Philippines or abroad, that
provide services covering business and
nonbusiness related transactions as defined in
this Act.
Reengineering
Procedures
of
Systems
and
Reengineering of Systems and Procedures. – All
offices and agencies which provide government
services are hereby mandated to regularly
undertake cost compliance analysis, time and
motion studies, undergo evaluation and
improvement of their transaction systems and
procedures and reengineer the same if deemed
necessary to reduce bureaucratic red tape and
processing time.
"The Anti-Red Tape Authority, created in this Act,
shall coordinate with all government offices
covered under Section 3 of this Act in the review
of existing laws, executive issuances and local
ordinances, and recommend the repeal of the
same if deemed outdated, redundant, and adds
undue regulatory burden to the transacting
public.
"All proposed regulations of government
agencies under Section 3 of this Act shall undergo
regulatory impact assessment to establish if the
proposed regulation does not add undue
regulatory burden and cost to these agencies and
the applicants or requesting parties: Provided,
That when necessary, any proposed regulation
may undergo pilot implementation to assess
regulatory impact.
"Upon effectivity of this Act, all LGUs and NGAs
are directed to initiate review of existing policies
and operations and commence with the
reengineering of their systems and procedures in
compliance with the provisions of this Act,
pending the approval of the implementing rules
and regulations (IRR) thereof."
Citizen’s Charter
All government agencies including departments,
bureaus,
offices,
instrumentalities,
or
government-owned
and/or
–controlled
corporations, or LGUs shall set up their respective
most current and updated service standards to
be known as the Citizen’s Charter in the form of
information billboards which shall be posted at
the main entrance of offices or at the most
conspicuous place, in their respective websites
and in the form of published materials written
either in English, Filipino, or in the local dialect,
that detail:
"(a) A comprehensive and uniform
checklist of requirements for each type
of application or
request;
"(b) The procedure to obtain a particular
service;
"(c) The person/s responsible for each
step;
"(d) The maximum time to conclude the
process;
"(e) The document/s to be presented by
the applicant or requesting party, if necessary;
"(f) The amount of fees, if necessary; and
"(g) The procedure for filing complaints."
Accessing Government Services
The following shall adopted by all government
offices and agencies:
"(a) Acceptance of Applications or
Requests. –
"(1) All officers or employees
shall accept written applications,
requests,
and/or
documents
being
submitted by applicants or
requesting parties of the offices
or agencies.
"(2) The receiving officer or
employee shall perform a
preliminary assessment of the
application or request
submitted with its supporting
documents to ensure a more
expeditious action on the
application or request. The
receiving officer or employee
shall immediately inform the
applicant or requesting party of
any
deficiency
in
the
accompanying
requirements,
which shall be limited to those
enumerated in the Citizen’s
Charter.
"(3) The receiving officer or
employee shall assign a unique
identification number to an
application or request,
which shall be the identifying
number for all subsequent
transactions
between
the
government and the applicant or
requesting party regarding such
specific application or request.
"(4) The receiving officer or
employee shall issue an
acknowledgement
receipt
containing the seal of the
agency, the name of the
responsible officer or employee,
his/her unit and designation, and
the date and time of receipt of
such application or request.
"(b) Action of Offices. –
"(1) All applications or requests
submitted shall be acted upon by
the
assigned
officer
or
employee within the
prescribed processing time
stated in the Citizen’s Charter
which shall not be longer than
three (3) working days in the
case of simple transactions and
seven (7) working days in the
case of complex transactions
from the date the request
and/or complete application or
request was received.
"For applications or requests
involving activities which pose
danger to public health, public
safety, public morals,
public policy, and highly
technical
application,
the
prescribed processing time shall
in no case be longer than twenty
(20) working days or as
determined by the government
agency
or
instrumentality
concerned, whichever is shorter.
"The maximum time prescribed
above may be extended only
once for the same number of
days, which shall be indicated
in the Citizen’s Charter. Prior to
the lapse of the processing time,
the office or agency concerned
shall notify the applicant or
requesting party in writing of the
reason for the extension and
final date of release of the
government
service/s
requested.
Such
written
notification shall be signed by
the applicant or requesting party
to serve as proof of notice.
"If the application or request for
license,
clearance
permit,
certification or authorization
shall require the approval of the
local
Sangguniang
Bayan,
Sangguniang Panlungsod, or the
Sangguniang Panlalawigan as
the case may be, the Sanggunian
concerned shall be given a
period of forty-five (45) working
days to act on the application or
request, which can be extended
for another twenty (20) working
days. If the local Sanggunian
concerned has denied the
application or request, the
reason for the denial, as well as
the remedial measures that may
be taken by the applicant shall
be cited by the concerned
Sanggunian.
"In cases where the cause of
delay is due to force majeure or
natural or man-made disasters,
which result to damage or
destruction of documents,
and/or system failure of the
computerized or automatic
processing, the prescribed
processing times mandated in
this Act shall be suspended and
appropriate adjustments shall be
made.
"(2) No application or request
shall be returned to the
applicant or requesting party
without appropriate action. In
case an application or request is
disapproved, the officer or
employee who rendered the
decision shall send a formal
notice to the applicant or
requesting party within the
prescribed processing time,
stating therein the reason for the
disapproval. A finding by a
competent authority of a
violation of any or other laws by
the applicant or requesting party
shall constitute a valid ground
for the disapproval of the
application or request, without
prejudice to other grounds
provided in this Act or other
pertinent laws.
"(c) Denial of Application or Request for
Access to Government Service. – Any
denial of application or request for
access to government service shall be
fully explained in writing, stating the
name of the person making the denial
and the grounds upon which such denial
is based. Any denial of application or
request is deemed to have been made
with the permission or clearance from
the highest authority having jurisdiction
over the government office or agency
concerned.
"(d) Limitation of Signatories – The
number of signatories in any document
shall be limited to a maximum of three
(3) signatures which shall represent
officers directly supervising the office or
agency concerned: Provided, That in case
the authorized signatory is on official
business or official leave, an alternate
shall be designated as signatory.
Electronic signatures or pre-signed
license, clearance, permit, certification
or authorization with adequate security
and control mechanism may be used.
"(e) Electronic Versions of Licenses,
Clearances, Permits, Certifications or
Authorizations. – All government
agencies covered under Section 3 of this
Act shall, when applicable, develop
electronic
versions
of
licenses,
clearances, permits, certifications or
authorizations with the same level of
authority as that of the signed hard copy,
which may be printed by the applicants
or requesting parties in the convenience
of their offices.
"(f) Adoption of Working Schedules to
Serve Applicants or Requesting Parties. –
Heads of offices and agencies which
render government services shall adopt
appropriate working schedules to ensure
that all applicants or requesting parties
who are within their premises prior to
the end of official working hours are
attended to and served even during
lunch break and after regular working
hours.
"(g) Identification Card. – All employees
transacting with the public shall be
provided with an official identification
card which shall be visibly worn during
office hours.
"(h)
Establishment
of
Public
Assistance/Complaints Desk. – Each
office or agency shall establish a public
assistance/complaints desk in all their
offices."
Streamlined Procedures for the Issuance
of Permits and Licenses
The LGUs are mandated to implement the
following revised guidelines in the issuance of
business
licenses,
clearances,
permits,
certifications or authorizations:
"(a) A single or unified business
application form shall be used in
processing new applications for
business permits and business
renewals which consolidates all the
information of the applicant or
requesting party by various local
government departments, such as, but
not limited to, the local taxes and
clearances, building clearance, sanitary
permit, zoning clearance, and other
specific LGU requirements, as the case
may be, including the fire clearance from
the Bureau of Fire Protection (BFP). The
unified form shall be made available
online
using
technology-neutral
platforms such as, but not limited to, the
central business portal or the
city/municipality’s website and various
channels for dissemination. Hard copies
of the unified forms shall likewise be
made available at all times in designated
areas of the concerned office and/or
agency.
"(b) A one-stop business facilitation
service, hereinafter referred to as the
business one stop
shop, (BOSS) for
the
city/municipality’s
business
permitting and licensing system to
receive and process manual and/or
electronic submission of application for
license, clearance, permit, certification
or authorization shall be established
within the cities/municipalities’ Negosyo
Center as provided for under Republic
Act No. 10644, otherwise known as the
"Go Negosyo Act." There shall be a
queuing mechanism in the BOSS to
better manage the flow of applications
among the LGUs’ departments receiving
and processing applications. LGUs shall
implement collocation of the offices of
the treasury, business permits and
licensing office, zoning office, including
the
BFP,
and
other
relevant
city/municipality offices/departments,
among others, engaged in starting a
business, dealing with construction
permits.
"(c) Cities/Municipalities are mandated
to automate their business permitting
and licensing system or set up an
electronic BOSS within a period of three
(3) years upon the effectivity of this Act
for a more efficient business registration
processes. Cities/Municipalities with
electronic BOSS shall develop electronic
versions of licenses, clearances, permits,
certifications or authorizations with the
same level of authority, which may be
printed by businesses in the convenience
of their offices. The DICT shall make
available to LGUs the software for the
computerization of the business permit
and licensing system. The DICT, DTI, and
DILG, shall provide technical assistance in
the planning and implementation of a
computerized or software-enabled
business permitting and licensing
system.
"(d) To lessen the transaction
requirements, other local clearances
such as, but not limited to,
sanitary
permits, environmental and agricultural
clearances shall be issued together with
the business permit.
"(e) Business permits shall be valid for a
period of one (1) year. The
city/municipality may have
the
option to renew business permits within
the first month of the year or on the
anniversary date of the issuance of the
business permit.
"(f) Barangay clearances and permits
related to doing business shall be
applied, issued, and
collected at the
city/municipality in accordance with the
prescribed processing time of this Act:
Provided, That the share in the
collections shall be remitted to the
respective barangays.
"(g) Failure or refusal to issue official
receipts; and
"The pertinent provisions of Republic Act No.
7160, otherwise known as "The Local
Government Code of 1991", specifically Article IV,
Section 152(c) is hereby amended accordingly."
Penalties and Liabilities. – Any violations of the
preceding actions will warrant the following
penalties and liabilities.1âwphi1
Violations, Jurisdiction, Penalties, and
Immunity
Any person who performs or cause the
performance of the following acts shall be liable:
"(a) Refusal to accept application or
request with complete requirements
being submitted by an applicant
or
requesting party without due cause;
"(b)
Imposition
of
additional
requirements other than those listed in the
Citizen’s Charter;
"(c) Imposition of additional costs not
reflected in the Citizen’s Charter;
"(d) Failure to give the applicant or
requesting party a written notice on the
disapproval of an
application or
request;
"(e) Failure to render government
services within the prescribed processing
time on any
application or request
without due cause;
"(f) Failure to attend to applicants or
requesting parties who are within the
premises of the office
or
agency
concerned prior to the end of official
working hours and during lunch break;
"(h) Fixing and/or collusion with fixers in
consideration of economic and/or other
gain or advantage."
"(a) First Offense: Administrative liability
with six (6) months suspension: Provided,
however,
That in the case of fixing
and/or collusion with fixers under
Section 21(h), the penalty and liability
under Section 22(b) of this Act shall
apply.
"(b) Second Offense: Administrative
liability and criminal liability of dismissal
from the service,
perpetual
disqualification from holding public
office and forfeiture of retirement
benefits and imprisonment of one (1)
year to six (6) years with a fine of not less
than Five hundred thousand pesos
(P500,000.00), but not more than Two
million pesos (P2,000,000.00).
"Criminal liability shall also be incurred through
the commission of bribery, extortion, or when
the violation was done deliberately and
maliciously to solicit favor in cash or in kind. In
such cases, the pertinent provisions of the
Revised Penal Code and other special laws shall
apply."
Civil and Criminal Liability, Not Barred.- The
finding of administrative liability under this Act
shall not be a bar to the filing of criminal, civil or
other related charges under existing laws arising
from the same act or omission as herein
enumerated."
Administrative Jurisdiction. – The administrative
jurisdiction on any violation of the provisions of
this Act shall be vested in either the CSC, or the
Office of the Ombudsman as determined by
appropriate laws and issuances."
"(b) There is no other direct evidence
available for the proper prosecution of
the offense
committed, except the
testimony of said respondent/accusedinformant;
Immunity, Discharge of Co-Respondent/Accused
to be a Witness. – Any public official or employee
or any person having been charged with another
offense under this Act and who voluntarily gives
information pertaining to an investigation or who
willingly testifies therefore, shall be exempt from
prosecution in the case/s where his/her
information and testimony are given. The
discharge may be granted and directed by the
investigating body or court upon the application
or petition of any of the respondent/accusedinformant and before the termination of the
investigation: Provided, That:
"(c) The testimony of said respondent
can be substantially corroborated in its material
points;
"(a) There is absolute necessity for the
testimony of the respondent/accusedinformant whose
discharge
is
requested;
Labor Law
Book III of the Labor Code on Labor Standards shall
apply to employees in all establishments and
undertakings whether for profit or not, but NOT
to the following:
1. Government employees
2. Managerial employees
3. Officers of the managerial staff
4. Field personnel
5. Persons in the personal service of
another
6. Domestic helpers
7. Workers who are paid by results
"(d) The respondent/accused-informant
has not been previously convicted of a
crime involving moral turpitude; and
"(e) Said respondent/accused-informant
does not appear to be the most guilty.
"Evidence adduced in support of the discharge
shall automatically form part of the records of the
investigation. Should the investigating body or
court deny the motion or request for discharge as
a witness, his/her sworn statement shall be
inadmissible as evidence."
8. Members of the family of the
employer who are dependent on him for
support
Basic Pay
means all remuneration or earnings paid by an
employer to a worker for services rendered on
normal working days and hours but does not
include cost-of-living allowances, profit sharing
payments, premium payments, 13th month pay
or other monetary benefits which are not
considered as part of or integrated into the
regular salary of the workers on the dale the Act
became effective.
NORMAL HOURS OF WORK: should not exceed 8
hours
Hours worked: Hours worked shall include
1. All time during which an employee is
required to be on duty or to be at a
prescribed workplace; and
2. All time during which an employee is
suffered or permitted to work.
Rest periods of short duration during working
hours shall be counted as hours worked.
Meal Periods Subject to such regulations as the
Secretary of Labor may prescribe, it shall be the
duty of every employer to give his employees not
less than sixty (60) minutes time-off for their
regular meals.
Health Personnel:
1. In locality has a population of at least 1M
or in a hospital or clinic with a bed
capacity of at least 100: regular hours of
work is 8 hours a day for 5 days in a week,
2. Exception: when there are exigencies: the
health personnel may be required to
work for 6 days or 48 hours in a week, in
which case they are entitled to additional
compensation of 30% of their regular
wage on the 6th day.
Overtime Premium
refers to the additional compensation for work
performed beyond 8 hours and shall be
compensated with additional:
1. 25% when work is rendered on the
regular working day of the employee; or
2. 30% when work is rendered on one's
rest day or holiday
Basis: employee's regular wage for work
performed beyond eight (8) hours within the
worker's 24-hour workday.
For purposes of computing overtime and other
additional remuneration as required by this
Chapter, the "regular wage" of an employee shall
include the cash wage only, without deduction on
account of facilities provided by the employer
Work day refers to the
twenty four (24) hour
period commencing
from the time an
employee regularly
starts to work.
Calendar day refers to
the twenty four (24)
hour
period
commencing at 12
a.m. and ending at
11:59
pm
the
following day.
Compressed Work Week: may be authorized
when it is the employees themselves who
proposed the compressed workweek and if the
following criteria are present:
1. It is voluntary on the part of the worker;
2. There will be no diminution of the weekly or
monthly take-home pay and fringe benefits of the
employees;
3. The value of the benefits that will accrue to the
employees under the proposed schedule is more
than or at least commensurate with the one-hour
OT pay that is due them during weekdays based
on the employee's quantification;
4. The one-hour OT pay will become due and
payable if they are made or permitted to work on
a day not scheduled for work on the compressed
workweek;
5. The work does not involve strenuous physical
exertion and employees must have adequate rest
periods; 6. The arrangement is of temporary
duration.
✓ Undertime work on any particular day
shall not be offset by overtime work
on any other day. Permission given to
the employee to go on leave on some
other day of the week shall not
exempt the employer from paying the
additional compensation required in
this Chapter.
Emergency overtime work: Any employee may be
required by the employer to perform overtime
work in employer to perform overtime work in
any of the following cases:
a) When the country is at war or when any
other national or local war or when any
other national or local emergency has
been declared by the National Assembly
or the Chief Executive;
b) When it is necessary to prevent loss of
life or property or in case of imminent
danger to public se or impending
emergency in the locality caused by
serious accidents, fire, flood, typhoon,
earthquake, epidemic, or other or
imminent danger to public safety due to
an actual disaster or calamity;
c) When there is urgent work to be
performed on machines, installations, or
equipment, mon ed on machines,
installations, or equipment in order to
avoid serious loss or damage to the
employer or some other cause of similar
nature;
✓ Situations When the Employee Is Not
Entitled to Holiday Pay:
1. If he was absent without pay on the day
prior a regular holiday.
2. If he was absent without pay on the day
prior to successive regular holidays like
Maundy Thursday and Good Friday.
3. If he was absent without pay on the day
prior to his rest day or a special holiday
that is followed by a regular holiday.
4. If he was absent without leave on the
day prior to successive regular holidays but
he worked on the first holiday, n only
entitled to holiday pay for the following
day.
d) When the work is necessary to prevent
loss or damage to perishable goods, and
e) where the completion or continuation of
the work started before the eight hour is
necessary to prevent serious obstruction
or prejudice to the business or
operations of the employer.
Any employee required to render emergency
overtime work shall be paid the additional
compensation required.
Night Shift Differential
refers to the additional compensation of not less
than ten percent (10%) of an employees regular
wage for every hour of work done between 10:00
PM and 6:00 AM, whether or not such period is
part of the worker's regular shift.
Holiday Premium
Every worker shall be paid his regular daily wage
during regular holidays, except in retail and
service establishments regularly employing less
than ten (10) workers
The employer may require an employee to
work on any holiday but such employee shall
be paid a compensation equivalent to twice
his regular rate; and
As used in herein, "holiday" includes:
1. New Year's Day - January 1
2. Maundy Thursday Good Friday
4. Araw ng Kagitingan - April 9
5. Labor Day - May 1
6. Eid'l Fitr - varies per year
7. Independence Day - June 12
8. Eid'l Adha - varies per year
9. National Heroes Day - last Monday of
August
10. Bonifacio Day - November 30
11. Christmas Day - December 25
12. Rizal Day - December 30
13. The day designated by law for holding
a general election.
REGULAR HOLIDAY
Compensable even
if unworked
SPECIAL HOLIDAY
Not compensable if
unworked
Generally limited to the
10 enumerated in the
Labor Code plus the
two Muslim holidays
Observed throughout
the country
Rate is twice if worked
Not exclusive since
a law for other
special holidays
There may be
special holidays
which are observed
only in one locality
Rate is 130%
FACULTY MEMBERS:
1. Regular holiday - no pay: Regular
holidays specified as such by law are
known to both school and faculty
members as no class days;" certainly
the latter do not expect payment for
said unworked days, and this was
clearly in their minds when they
entered into the teaching contracts.
2. Special holiday -the faculty member,
although forced to take a rest, does
not earn what he should earn on
that day. Be it noted that when a
special public holiday is declared,
the faculty member paid by the hour
is deprived of expected income, and
it does not matter that the school
calendar is extended in view of the
days or hours lost, for their income
that could be earned from other
sources is lost during the extended
days. Similarly, when classes are
called off or shortened on account of
typhoons, floods, rallies, and the
like, these faculty members must
likewise be paid, whether or not
extensions are ordered. (Jose Rizal
College vs, NLRC, GR No. L-65482
Dec. 1, 1987)
13th Month Pay
refers to the additional income based on wage
required by P.D. 851 which is equivalent to 1/12
of the total basic salary earned by an employee
within a calendar year.
Payment: anytime not later than Dec. 24.
Entitlement: All rank-and-file employees
regardless of their designation or employment
status and irrespective of the method by which
their wages are paid, are entitled to this benefit,
provided, that they have worked for at least one
(1) month during the calendar year.
Form: It may be in the form of Christmas bonus,
midyear bonus, profit sharing payments, and
other cash bonuses amounting to not less than
1/12 of the employees' basic salary.
Not valid substitutes: Free rice, electricity cash,
stock dividends, Cost of Living Allowances.
Leaves
These are days when employees may still be paid
despite their absence from work.
Service Incentive Leave
✓ Every employee who has rendered
at least one year of service shall be
entitled to a yearly service incentive
leave of 5 days with pay.
Exclusion: This above shall not apply to:
1. Those who are already enjoying the
benefit herein provided,
2. Those enjoying vacation leave with pay
of at least five days and
3. Those employed in establishments
regularly employing less than ten than
ten employees or in establishments
exempted from granting this benefit by
the Secretary of Labor and Employment
after considering the viability such
establishment.
Also the following under DOLE Implementing
Rules:
a) Those of the government and any of its
political
subdivisions,
including
government-owned
and
controlled
corporations;
b) Domestic helpers and persons in the
personal service of another;
c) Managerial employees as defined in Book
Three of this Code;
d) Field personnel and other employees
whose performance is unsupervised by
the employer including those who are
engaged on task or contract basis, purely
commission basis, or those who are paid
a fixed amount for performing work
irrespective of the time consumed in the
performance thereof;
e) Those who are already enjoying the
benefit herein provided;
f)
Those enjoying vacation leave
with pay of at least five days; and
g) Those employed in establishments
regularly employing less than ten
employees.
At Least One Year of Service: means for not
less than 12 months, whether continuous or
broken reckoned from the date the employee
started working, including authorized
absences and paid regular holidays unless the
working days in the establishment as a matter
of practice or policy, or that provided in the
employment contract is less than 12 months,
in which case said period shall be considered
as one year. (Sec. 3, Book Ill, Rule V)
Part-Time Workers Also Entitled: Part-time
workers are entitled to the full benefit of the
yearly five (5) days Service Incentive Leave. The
reason is that the law speaks of at least one (1)
year of service without any distinction for
entitlement to said benefit
SERVICE INCENTIVE LEAVE
Mandatory labor standard
Intended to alleviate the economic
condition of the workers for it acts as
replacement for regular income that would
not be earned during such instance
May not be waived
Commutable to cash
Maternity Leave
✓ Under Sec. 14-A of Republic Act No.
(“R.A.”) 1161 (Social Security Law), as
amended by R.A. No. 7322, R.A. No. 8282
and R.A. No. 11210, every pregnant
woman in the private sector, married or
unmarried, is entitled to maternity leave
benefits. The law provides for daily
maternity benefit equivalent to the
average daily salary credit for 105 days,
regardless of whether the woman gave
birth by normal delivery or caesarean
delivery. For miscarriages or emergency
termination of pregnancy, the woman is
given a 60-day leave. For solo parents, an
additional 15 days maternity leave shall
be granted. At the option of the woman,
she can allocate up to seven days of leave
to her child’s father.
✓ The law requires that the employee has
contributed at least three monthly
contributions to the Social Security
System for the 12-month period
immediately preceding the semester of
her childbirth or miscarriage. She must
also have properly notified her employer
of her pregnancy and probable date of
childbirth. The leave can be availed by
female workers in every instance of
pregnancy, miscarriage or emergency
termination of pregnancy, regardless of
frequency.
DURATION
60 days- for
normal delivery
78 days- for
caesarian
delivery
WHOS ENTITLED:
Pregnant employees,
whether married or
unmarried
✓ After paying 3
monthly SSS
contributions
within 12-month
period.
Paternity Leave
every married male employee in the
private and public sectors shall be
entitled to a paternity leave of seven (7)
days with full pay for the first four (4)
deliveries (including miscarriages) of the
legitimate spouse with whom he is
cohabiting. The male employee applying
for paternity leave shall notify his
employer of the pregnancy of his
legitimate spouse and the expected date
of such delivery. (Sec. 2, RA No. 8187
([Solo Parent's Act])
Conditions for entitlement:
a. He is employed at the time of
delivery of his child;
b. He has notified his employer of
the pregnancy of his wife and her
expected
date
of
delivery
(notification does not apply to
miscarriages or abortion); and
c. His wife has given birth, suffers a
miscarriage or an abortion. (Sec. 3)
Availment: The paternity benefits set
forth herein may be enjoyed by the
qualified employee before, during or
after the delivery by his wife; provided,
not later than sixty (60) days after the
date of said delivery. (Sec. 5)
Parental Leave for Solo Parent
Parental leave of not of more than seven
7 working days every year shall be
granted to any solo parent employee
who has rendered service of at least one
(1) year, which shall not be cumulative.
(RA No. 8972)
Social Security Law
by Sec. 1, R.A. 1792 and Sec. 2, P.D. No. 24, S1972)
[REPUBLIC ACT No. 1161]
Definitions
It is the policy of the Republic of the Philippines
to establish, develop, promote and perfect a
sound and viable tax-exempt social security
service suitable to the needs of the people
throughout the Philippines which shall provide to
covered employees and their families protection
against the hazards of disability, sickness, old age
and death, with a view to promoting their wellbeing in the spirit of social justice. (As amended
SSS — The Social Security System created by this
Act. (As amended by Sec. 2, P.D. No. 1636, S1979)
Commission — The Social Security Commission as
herein created.
Employer — Any person, natural or juridical,
domestic or foreign, who carries on in the
Philippines any trade, business, industry,
undertaking, or activity of any kind and uses the
services of another person who is under his
orders as regards the employment, except the
Government and any of its political subdivisions,
branches or instrumentalities, including
corporations owned or controlled by the
Government.
Employee — Any person who performs services
for an employer in which either or both mental
and physical efforts are used and who receives
compensation for such services, where there is
an employer-employee relationship.
Dependent — The legitimate, legitimated or
legally adopted child who is unmarried, not
gainfully employed, and not over twenty-one
years of age, or over twenty-one years of age,
provided that he is congenitally incapacitated
and incapable of self-support, physically or
mentally; the legitimate spouse dependent for
support upon the employee; and the legitimate
parents wholly dependent upon the covered
employee for regular support.
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 three thousand pesos received during
the month.
Monthly salary credit — The compensation base
for contributions and benefits as indicated in the
schedule in section eighteen of this Act.
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 month.
(i) Contribution — The amount paid to
the SSS by the employee and by his
employer in accordance with section
eighteen of this Act. (As amended by Sec.
5, P.D. No. 24, S-1972)
(j) Employment.
—
Any
service
performed by an employee for his
employer, except —
1. Agricultural labor when
performed by a share or
leasehold tenant or worker who
is not paid any regular daily wage
or base pay and who does not
work for an uninterrupted
period of at least six months in a
year; (As amended by Sec. 4, R.A.
2658)
2. Domestic service in a private
home;
3. Employment purely casual and
not for the purposes of
occupation or business of the
employer;
4. Service performed by an
individual in the employ of his
son, daughter, or spouse, and
service performed by a child
under the age of twenty-one
years in the employ of his
parents;
5. Service performed on or in
connection with an alien vessel
by an employee if he is employed
when such vessel is outside the
Philippines;
6. Service performed in the
employ of the Philippine
Government
or
an
instrumentality
or
agency
thereof;
7. Service performed in the
employ of a foreign government
or international organization, or
their
instrumentality.
wholly-owned
8. Such other services performed
by temporary employees who
may be excluded by regulation of
the Commission. Employees of
bona
fide
independent
contractors shall not be deemed
employees of the employer
engaging the services of said
contractors. (As amended by
Sec. 5, P.D. No. 735, S-1975)
Beneficiaries — The dependent spouse until he
remarries and dependent children, who shall be
the primary beneficiaries. In their absence, the
dependent parents and, subject to the
restrictions imposed on dependent children, the
legitimate descendents and illegitimate children
who shall be the secondary beneficiaries. In the
absence of any of the foregoing, any other person
designated by the covered employee as
secondary beneficiary.
Contingency —
The
retirement,
death,
permanent disability, injury or sickness of the
covered employee.
Average monthly salary credit — The result
obtained by dividing the sum of the monthly
salary credits in the sixty-month period
immediately preceding the semester of
contingency by the number of months of
coverage in the same period, 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 calendar months
of coverage in the same period, whichever is
greater: except where the month of contingency
falls within eighteen months from the month of
coverage, in which case it is the result obtained
by dividing the sum of all monthly salary credits
paid prior to the month of contingency by the
total number of calendar months of coverage in
the same period.
Average daily salary credit — The result obtained
by dividing the sum of the six highest monthly
salary credits in the twelve-month period
immediately preceding the semester of
contingency by one hundred eighty.
Semester — A period of two consecutive quarters
ending in the quarter of contingency.
Quarter — A period of three consecutive
calendar months ending on the last day of March,
June, September and December.
Replacement ratio — The sum of twenty per cent
and the quotient obtained by dividing three
hundred by the sum of three hundred forty and
the average monthly salary credit.
Credited years of service — For a member
covered prior to January 1975, nineteen hundred
seventy five minus the calendar year of coverage
plus the number of calendar years in which six or
more contributions have been paid from January
1975 up to the calendar year containing the
semester prior to the contingency. For a member
covered in or after January 1975, the number of
calendar years in which six or more contributions
have been paid from the year of coverage up to
the calendar year containing the semester prior
to the contingency.
Scope and Coverage
Compulsory coverage.
A. Coverage in the SSS shall be
compulsory upon all employees not
over sixty years (60) of age and their
employers:
o
That any benefit already earned
by employees under private
benefit plans existing at the time
of the approval of this Act shall
not be discontinued, reduced or
otherwise impaired:
o
o
o
o
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 that that
required of him in this Act he
shall pay to the SSS only the
contribution required of him and
he
shall
continue
his
contribution to such private plan
less his contribution to the SSS so
that the employer's total
contribution to his private
benefit plan and to the Social
Security System shall be the
same as his contribution to his
private benefit plan before the
compulsory coverage:
That any changes, adjustments,
modifications, eliminations or
improvements in the benefits to
be available under the remaining
private plan, which may be
necessary to adopt by reason of
the
reduced
contribution
thereto as a result of the
integration, shall be subject to
agreements
between
the
employers
and
employees
concerned:
That the private benefit plan
which the employer shall
continue for his employees shall
remain under the employer's
management and control unless
there is an existing agreement to
the contrary:
That nothing in this Act shall be
construed as a limitation on the
right
of
employers
and
employees to agree on and adopt
benefits which are over and
above those provided under this
Act. (As amended by Sec. 5, R.A.
1972; Sec. 5, R.A. 2658; and Sec.
2, R.A. 3839)
B. Filipinos recruited in the Philippines
by foreign-based employers for
employment abroad may be covered
by the SSS on a voluntary basis. (As
amended by Sec. 2, P.D. No. 177, S1973 and Sec. 6, P.D. No. 735, S1975)
Compulsory Coverage of the Self-employed.
Coverage in the SSS shall also be
compulsory upon all self-employed
persons earning P1,800 or more per
annum: Provided, That the effectivity of
coverage of certain groups of selfemployed shall be determined by the
Commission under such rules and
regulations it may prescribe: Provided,
further, That the effectivity of the
coverage of the following self-employed
persons shall be in accordance with
section ten (b) hereof:
1. All self-employed professionals
licensed by the Professional Regulations
Commission or those licensed to practice
law.
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 eight (d)
of this Act.
4. Professionals athletes, coaches,
trainers licensed by the Games and
Amusement Board as well as jockeys and
trainers licensed by the Philippine Racing
Commission.
Unless otherwise specified herein, all provisions
of the SSS Law applicable to covered employees
shall also be applicable to the covered selfemployed persons. (As amended by Sec. 3, P.D.
No. 1636, S-1979)
Effective Date of Coverage.
Dependents' Pension.
The dependents' pension shall be equivalent
to ten per cent of the monthly pension for each
dependent child but not exceeding five,
beginning with the youngest and without
substitution. (As amended by Sec. 3, P.D. No.
1202, S-1977)
Retirement Benefits.
a cash benefit paid either in monthly pension
or as lump sum to a member who can no
longer work due to old age.
Compulsory coverage of the employer
shall take effect on the first day of his
operation and that of the employee on
the day of his employment: Provided,
That the compulsory coverage of selfemployed persons referred to in
paragraphs (1) to (4) shall take effect on
the first day of January following the
calendar year they started the practice of
their profession or business operations
but in no case earlier than January 1,
1980. (As amended by Sec. 6, R.A. 1972;
Sec. 6, R.A. 2658; and Sec. 4, P.D. No.
1636, S-1979)
Pension, Retirement and other benefits
Monthly Pension
a) The monthly pension shall be the sum of
the following:
i.
The average monthly salary
credit multiplied by the
replacement ratio; and
ii.
One and a half per cent of the
average monthly salary credit for
each credited year of service in
excess of ten years.
b) The monthly pension shall in no case be
less than two hundred pesos nor paid in
an aggregate amount of less than sixty
times the monthly pension except to a
secondary beneficiary: Provided, That
the monthly pension of surviving
pensioners as of December 31, 1986
shall be increased by twenty per cent.
Death Benefits.
Upon the covered employee's death, his primary
beneficiaries shall be entitled to the monthly
pension and his dependents to the dependents'
pension:
o That he has paid at least thirty-six
monthly contributions prior to the
semester of death:
o That if the foregoing condition is not
satisfied his primary beneficiaries shall
be entitled to a lump sum benefit
equivalent to thirty-five times the
monthly pension:
o That if he has no primary beneficiaries,
his secondary beneficiaries shall be
entitled to a lump sum benefit
equivalent to twenty times the monthly
pension:
o That the minimum death benefit shall
not be less than the total contributions
paid by him and his employer on his
behalf nor less than one thousand
pesos:
o That the beneficiaries of the covered
employee who dies without having paid
at least three monthly contributions
shall be entitled to the minimum
benefit.
Permanent disability benefits.
a cash benefit to members with a total or
partial permanent disability. The benefit is paid
either as a monthly disability pension or a onetime lump sum benefit, depending on a
member's number of monthly SSS contribution
payments.
Funeral Benefit.
A funeral grant of two thousand pesos shall be
paid to help defray the cost of funeral
expenses upon the death of a covered
member, permanently
employee or retiree.
totally
disabled
Sickness Benefit.
a) A covered employee who has paid at least
three monthly contributions in the
twelve-month
period
immediately
preceding the semester of sickness and is
confined for more than three days in a
hospital or elsewhere with the
Commission's approval, shall, for each
day of compensable confinement or
fraction thereof, be paid by his employer,
or the SSS, if such person is unemployed,
an allowance equivalent to ninety per
cent of his average daily salary credit,
subject to the following conditions:
(1) In no case shall the total
amount of such daily allowance
be less than seven pesos and fifty
centavos nor exceed seventy-five
pesos nor paid longer than one
hundred twenty days in one
calendar year; nor shall any
unused portion of the one
hundred twenty days of sickness
benefit granted under this
section be carried forward and
added to the total number of
compensable days allowable in
the subsequent year;
(2) No employee shall be paid any
sickness benefit for more than
two hundred forty days on
account
of
the
same
confinement; and
(3) The employee shall notify his
employer of the fact of his
sickness or injury within five
calendar days after the start of
his confinement unless such
confinement 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
b) The compensable confinement shall
begin on the first day of sickness, and the
payment of such allowances shall be
promptly made by the employer every
regular payday or on the fifteenth and
last day of each month, and similarly in
the case of direct payment by the SSS, for
as long as such allowances are due and
payable
c) 100% of the daily benefits provided in the
preceding paragraph shall be reimbursed
by the SSS to said employer upon receipt
of satisfactory proof of such payment and
legality.
d) Where the employee has given the
required notification but the employer
fails to notify the SSS of the confinement
or to file the claim for reimbursement
within the period prescribed in this
section resulting in the reduction of the
benefit or denial of the claim such
employer shall have no right to recover
the corresponding daily allowance he
advanced to the employee as required in
this section.
e) The claim of reimbursement shall be
adjudicated by the SSS within a period of
two months from receipt.
f) The provisions regarding the notification
required of the covered employee and
the employer as well as the period within
which the claim for benefit or
reimbursement may be filed shall apply
to all claims filed with the SSS.
Maternity Leave Benefit
cash allowance granted to qualified female
members. To qualify, there must be at least
three (3) monthly contributions within the 12month period immediately preceding the
semester of the childbirth, miscarriage, or
emergency termination of pregnancy (ETP).
Exemptions from Tax, Legal Process and
Lien
✓ all contributions collected and all
accruals income or investment
earnings therefrom as well as all
supplies, equipment, papers or
documents which may be required in
connection with the operation or
execution of this Act.
✓ all benefit payments made by the SSS
shall likewise be exempt from all kinds
Employee’s and Employer’s Contribution
of taxes, fees or charges, and shall not
be
liable
to
attachments,
garnishments, levy or seizure by or
under any legal or equitable process
whatsoever, either before or after
receipt by the person or persons
entitled thereto, except to pay any
debt of the covered employee to the
SSS.
No tax measure hereafter enacted
shall apply to the SSS, unless it
expressly revokes the declared policy
of the State in section two hereof
granting tax-exemption to the SSS.
Any tax assessment against, and still
unpaid by the SSS shall be null and
void.
Contributions from Self-employed member
Remittance of Contributions
a. The contribution imposed in the
preceding section shall be
remitted to the SSS within the
first seven days of each calendar
month following the month for
which they are applicable or
within such time as the
Commission may prescribe.
Every employer required to
deduct and to remit such
contributions shall be liable for
their payment and if any
contribution is not paid to the
SSS as herein prescribed, he shall
pay besides the contribution a
penalty thereon of three per
cent per month from the date
the contribution falls due until
paid. If deemed expedient and
advisable by the Commission,
the collection and remittance of
contributions shall be made
quarterly or semi-annually in
advance, the contributions
payable by the employees to be
advanced by their respective
employers
b. The contributions payable under
this Act in cases where an
employer refuses or neglects to
pay the same shall be collected
by the SSS in the same manner as
taxes are made collectible under
the National Internal Revenue
Code, as amended. Failure or
refusal of the employer to pay or
remit the contributions herein
prescribed shall not prejudice
the right of the covered
employee to the benefits of the
coverage.
c. Should any person, natural or
juridical, default in any payment
of
contributions,
the
Commission may also collect the
same in either of the following
ways: (1) By an action in court,
which shall hear and dispose of
the case in preference to any
other civil action, or (2) By
issuing a warrant to the Sheriff of
any
province
or
city
commanding him to levy upon
and sell any real and personal
property of the debtor. The
Sheriff's sale by virtue of said
warrant shall be governed by the
same procedure prescribed for
executions against property
upon judgments by a court of
record.
d. The last complete record of
monthly contributions paid by
the employer or the average of
the monthly contributions paid
during the past three years as of
the date of filing of the action for
collection shall be presumed to
be the monthly contributions
payable by and due from the
employer to the SSS for each of
the unpaid month, unless
contradicted and overcome by
other evidence
e. For purposes of this Section, any
employer who is delinquent or
has not remitted all the monthly
contributions due and payable
may within six months from the
issuance of this Executive Order
remit said contributions to the
SSS
and
submit
the
corresponding collection lists
herefore without incurring the
prescribed three per cent
penalty. In case the employer
fails to remit to the SSS the said
contributions within the six
months grace period, the
penalty of three per cent shall be
imposed from the time the
contributions first became due
as provided in paragraph (a) of
this section
Remittance of Contributions of Selfemployed. — Self-employed members
shall remit their monthly contributions
quarterly on such dates and schedules,
as the Commission may specify through
rules and regulations.
The penalty of 3% per month for late
payments provided for in paragraph (a)
of section twenty-two of this Act and the
manner of collection of contributions
specified in paragraphs (b), (c) and (d) of
section twenty-two of this Act are also
applicable to the collection of penalties
and contributions of the covered selfemployed.
Method of Collection & Payment
the SSS shall require a complete and proper collection and payment of contributions and proper
identification of the employer and the employee. Payment may be made in cash, checks, stamp,
coupons, tickets, or other reasonable devices that the Commission may adopt.
Employment Records & Reports
a. Each employer shall immediately report
to the SSS the names, ages, civil status,
occupations, salaries and dependents of
all his employees who are subject to
compulsory coverage.
b. Should the employer misrepresent the
true date of employment of his
employees or remit to the SSS
contributions which are less than those
required in this Act, resulting in a
reduction of benefits, the employer shall
pay to the SSS damages to the extent of
such reduction.
c. The records and reports duly
accomplished and submitted to the SSS
by the employee or the employer, as the
case may be, shall be kept confidential by
the SSS except in compliance with a
subpoena duces tecum issued by the
Courts, shall not be divulged without the
consent of the Administrator or any
official of the SSS duly authorized by him,
shall be presumed correct as to the data
and other matters stated therein, unless
the necessary corrections to such
records and reports have been properly
made by the parties concerned before
the right to the benefit being claimed
accrues, and shall be made the basis for
the adjudication of the claim. If as a
result of such adjudication the SSS in
good faith pays a monthly pension to a
beneficiary who is inferior in right to
another beneficiary or with whom
another beneficiary is entitled to share,
such payments shall discharge the SSS
from liability, unless and until such other
beneficiary notifies the SSS of his claim
prior to the payments.
d. Every employer shall keep true and
accurate work records for such period
and containing such information as the
Commission may prescribe, in addition to
an "Annual Register of New and
Separated Employees" which shall be
secured from the SSS wherein the
employer shall enter on the first day of
employment or on the effective date of
separation, the names of the persons
employed
or
separated
from
employment, their SSS numbers, and
such other data that the Commission
may require and said annual register
shall be submitted to the SSS in the
month of January of each year. Such
records shall be open for inspection by
the SSS or its authorized representatives
quarterly or as often as the SSS may
require.
e. Each employer shall require as a condition
to employment, the presentation of a
registration number secured by the
prospective employee from the SSS in
a) 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 any 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 the
SSS, or whoever makes or causes to be
made
any
false
statement,
representation, affidavit, or document in
connection with such claim or loan, shall
suffer the penalties provided for in Art.
172 of the Revised Penal Code.
b) 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 covered employee, employer or the
SSS, shall be fined not less than five
hundred pesos (P500.00) nor more than
five thousand pesos and imprisoned for
not less than six months nor more than
one year.
c) Whoever buys, sells, offers for sale, uses,
transfers, 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 twentythree hereof by the Commission for the
f.
accordance with such procedure as the
SSS may adopt
Notwithstanding any law to the contrary,
microfilm copies of original SSS records
and reports, duly certified by the official
custodian thereof, shall have evidentiary
value as the originals and be admissible as
evidence in all legal proceedings.
Penal Clauses
collection or payment of contributions
required herein, shall be fined not less
than five hundred pesos (P500.00) nor
more than five thousand pesos, or
imprisoned for not less than six months
(6) nor more than one year, or both, at
the discretion of the court.
d) 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,
shall be fined not less than one thousand
pesos (1,000.00) nor more than ten
thousand
pesos
(10,000.00)
or
imprisoned for not less than one year (1)
nor more than five years (5), or both, at
the discretion of the court.
e) Whoever fails or refuses to comply with
the provisions of this Act or with the rules
and regulations promulgated by the
Commission, shall be punished by a fine
of not less than five hundred pesos nor
more than five thousand pesos,
imprisonment for not less than six months
nor more than one year, or both, at the
discretion of the court
f)
If the act or omission penalized by this Act
be committed by an association,
partnership, corporation or any other
institution, its managing head, directors
or partners shall be liable to the penalties
provided in this Act for the offense.
g) Any employee of the System who receives
or keeps funds or property belonging,
payable or deliverable to the System and
who 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, shall suffer the penalties
provided in Art. 217 of the Revised Penal
Code.
h) Any employer who after deducting the
monthly
contributions
or
loan
amortizations from his employee's
compensation; fails to remit the said
deductions to the SSS within thirty days
from the date they became due shall be
presumed to have misappropriated such
contributions or loan amortizations and
shall suffer the penalties provided in Art.
315 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.