Laws Affecting Nursing Employment in The Philippines

LAWS AFFECTING NURSING EMPLOYMENT IN THE PHILIPPINES
REPUBLIC ACT an act passed by the Congress of the Philippines, while the form of government is Republican
government.
Republic Act 5901

- AN ACT PRESCRIBING FORTY HOURS A WEEK OF LABOR FOR GOVERNMENT AND
PRIVATE HOSPITALS OR CLINIC PERSONNEL
- Government and private resident physicians, nurses, nutritionists, dietitians, pharmacists, social
workers, laboratory technicians, para-medical technicians, psychologists, midwives, attendants and all
other hospital or clinic personnel shall hold regular office hours for eight hours a day, for five days a
week, or a total of forty hours a week, exclusive of time for lunch: Provided, That any of such
employees or laborers who shall suffer a reduction of his weekly or daily wage or compensation
because of a reduction of the number of days or hours of labor in a week, as provided herein, subject to
the minimum daily or hourly wage or compensation already fixed by existing law, shall be given an
automatic increase in his daily or hourly wage or compensation, whose amount in a week or a day or
per piece shall be equal to the diminution which his daily or hourly or per piece wage shall suffer on
account of the reduction of days of labor to five days a week: And provided, further, That the salaries
of employees received on monthly basis shall not suffer any diminution on account of the reduction of
the number of days of labor a week.
- This Act shall apply only to cities and municipalities with a population of one million or more and to
hospitals and clinics with a bed capacity of at least one hundred.
REPUBLIC ACT NO. 6727
AN ACT TO RATIONALIZE WAGE POLICY DETERMINATION BY ESTABLISHING THE

MECHANISM AND PROPER STANDARDS THEREFOR, AMENDING FOR THE PURPOSE
ARTICLE 99 OF, AND INCORPORATING ARTICLES 120, 121, 122, 123, 124, 126 AND 127
INTO, PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE
LABOR CODE OF THE PHILIPPINES, FIXING NEW WAGE RATES, PROVIDING WAGE
INCENTIVES FOR INDUSTRIAL DISPERSAL TO THE COUNTRYSIDE, AND FOR OTHER
PURPOSES.
Section 1. This Act shall be known as the "Wage Rationalization Act."

Sec. 2. It is hereby declared the policy of the State to rationalize the fixing of minimum wages and to
promote productivity-improvement and gain-sharing measures to ensure a decent standard of living for
the workers and their families; to guarantee the rights of labor to its just share in the fruits of
production; to enhance employment generation in the countryside through industry dispersal; and to
allow business and industry reasonable returns on investment, expansion and growth.
chanroblesvirtuallawlibrary
The State shall promote collective bargaining as the primary mode of setting wages and other terms
and conditions of employment; and, whenever necessary, the minimum wage rates shall be adjusted in
a fair and equitable manner, considering existing regional disparities in the cost of living and other
socio-economic factors and the national economic and social development plans.
Sec. 3. In line with the declared policy under this Act, Article 99 of Presidential Decree No. 442, as
amended, is hereby amended and Articles 120, 121, 122, 123, 124, 126 and 127, are hereby
incorporated into Presidential Decree No. 442, as amended, to read as follows:
"Art. 99. Regional Minimum Wages. - The minimum wage rates for agricultural and non- agricultural
employees and workers in each and every region of the country shall be those prescribed by the
Regional Tripartite Wages and Productivity Boards."
"Art. 120. Creation of the National Wages and Productivity Commission. - There is hereby created a
National Wages and Productivity Commission, hereinafter referred to as the Commission, which shall
be attached to the Department of Labor and Employment (DOLE) for policy and program
coordination."
"Art. 121. Powers and Functions of the Commission. - The Commission shall have the following
powers and functions:
(a) To act as the national consultative and advisory body to the President of the Philippines and
Congress on matters relating to wages, incomes and productivity;
(b) To formulate policies and guidelines on wages, incomes and productivity improvement at the
enterprise, industry and national levels;
(c) To prescribe rules and guidelines for the determination of appropriate minimum wage and
productivity measures at the regional, provincial or industry levels;
(d) To review regional wage levels set by the Regional Tripartite Wages and Productivity Boards to
determine if these are in accordance with prescribed guidelines and national development plans;
(e) To undertake studies, researches and surveys necessary for the attainment of its functions and
objectives, and to collect and compile data and periodically disseminate information on wages and
productivity and other related information, including, but not limited to, employment, cost-of-living,
labor costs, investments and returns;
(f) To review plans and programs of the Regional Tripartite Wages and Productivity Boards to
determine whether these are consistent with national development plans;
(g) To exercise technical and administrative supervision over the Regional Tripartite Wages and
Productivity Boards;
(h) To call, from time to time, a national tripartite conference of representatives of government,
workers and employers for the consideration of measures to promote wage rationalization and
productivity; and
(i) To exercise such powers and functions as may be necessary to implement this Act.
"The Commission shall be composed of the Secretary of Labor and Employment as ex officio
chairman, the Director-General of the National Economic and Development Authority [NEDA] as ex
officio vice-chairman, and two [2] members each from workers and employers sectors who shall be
appointed by the President of the Philippines upon recommendation of the Secretary of Labor and
Employment to be made on the basis of the list of nominees submitted by the workers and employers
sectors, respectively, and who shall serve for a term of five [5] years. The Executive Director of the
Commission Secretariat shall also be a member of the Commission.
"The Commission shall be assisted by a Secretariat to be headed by an Executive Director and two [2]
Deputy Directors, who shall be appointed by the President of the Philippines, upon recommendation of
the Secretary of Labor and Employment.
"The Executive Director shall have the same rank, salary, benefits and other emoluments as that of a
Department Assistant Secretary, while the Deputy Directors shall have the same rank, salary, benefits
and other emoluments as that of a Bureau Director. The members of the Commission representing
labor and management shall have the same rank, emoluments, allowances and other benefits as those
prescribed by law for labor and management representatives in the Employees' Compensation
Commission."
"Art. 122. Creation of Regional Tripartite Wages and Productivity Boards. - There is hereby created
Regional Tripartite Wages and Productivity Boards, hereinafter referred to as Regional Boards, in all
regions, including autonomous regions as may be established by law. The Commission shall determine
the offices/headquarters of the respective Regional Boards.
"The Regional Boards shall have the following powers and functions in their respective territorial
jurisdiction:
"(a) To develop plans, programs and projects relative to wages, incomes and productivity improvement
for their respective regions;
"(b) To determine and fix minimum wage rates applicable in their region, provinces or industries
therein and to issue the corresponding wage orders, subject to guidelines issued by the Commission;
"(c) To undertake studies, researches, and surveys necessary for the attainment of their functions,
objectives and programs, and to collect and compile data on wages, incomes, productivity and other
related information and periodically disseminate the same;
"(d) To coordinate with the other Regional Boards as may be necessary to attain the policy and
intention of this Code;
"(e) To receive, process and act on applications for exemption from prescribed wage rates as may be
provided by law or any Wage Order; and
"(f) To exercise such other powers and functions as may be necessary to carry out their mandate under
this Code.
"Implementation of the plans, programs and projects of the Regional Boards referred to in the second
paragraph, letter (a) of this Article, shall be through the respective regional offices of the Department
of Labor and Employment within their territorial jurisdiction: Provided, however, That the Regional
Boards shall have technical supervision over the regional office of the Department of Labor and
Employment with respect to the implementation of said plans, programs and projects.
"Each Regional Board shall be composed of the Regional Director of the Department of Labor and
Employment as chairman, the Regional Directors of the National Economic and Development
Authority and the Department of Trade and Industry as vice-chairmen of two [2] members each from
workers and employers sectors who shall be appointed by the President of the Philippines, upon the
recommendation of the Secretary of Labor and Employment, to be made on the basis of the list of
nominees submitted by the workers and employers sectors, respectively, and who shall serve for a term
of five [5] years.
"Each Regional Board to be headed by its chairman shall be assisted by a Secretariat.
"Art. 123. Wage Order. - Whenever conditions in the region so warrant, the Regional Board shall
investigate and study all pertinent facts; and, based on the standards and criteria herein prescribed,
shall proceed to determine whether a Wage Order should be issued. Any such Wage Order shall take
effect after fifteen [15] days from its complete publication in at least one [1] newspaper of general
circulation in the region.
"In the performance of its wage-determining functions, the Regional Board shall conduct public
hearings/consultations, giving notices to employees' and employers' groups, provincial, city and
municipal officials, and other interested parties.
"Any party aggrieved by the Wage Order issued by the Regional Board, may appeal such order to the
Commission, within ten [10] calendar days from the publication of such order. It shall be mandatory
for the Commission to decide such appeal within sixty [60] calendar days from the filing thereof.
"The filing of the appeal does not operate to stay the order unless the person appealing such order shall
file with the Commission an undertaking with a surety or sureties satisfactory to the Commission for
the payment to the employees affected by the order of the corresponding increase, in the event such
order is affirmed." chanroblesvirtuallawlibrary
"Art. 124. Standards/Criteria for Minimum Wage Fixing. - The regional minimum wages to be
established by the Regional Board shall be as nearly adequate as is economically feasible to maintain
the minimum standards of living necessary for the health, efficiency and general well-being of the
employees within the framework of the national economic and social development program. In the
determination of such regional minimum wages, the Regional Board shall, among other relevant
factors, consider the following:
"(a) The demand for living wages;

"(b) Wage adjustment vis-a-vis the consumer price index;
"(c) The cost of living and changes or increases therein;
"(d) The needs of workers and their families;
"(e) The need to induce industries to invest in the countryside;
"(f) Improvements in standards of living;
"(g) The prevailing wage levels;
"(h) Fair return of the capital invested and capacity to pay of employers;
"(i) Effects on employment generation and family income; and

"(j) The equitable distribution of income and wealth along the imperatives of economic and social
development. chanroblesvirtuallawlibrary
"The wages prescribed in accordance with the provisions of this Title shall be the standard prevailing
minimum wages in every region. These wages shall include wages varying with industries, provinces
or localities if in the judgment of the Regional Board conditions make such local differentiation proper
and necessary to effectuate the purpose of this Title.
"Any person, company, corporation, partnership or any other entity engaged in business shall file and
register annually with the appropriate Regional Board, Commission and the National Statistics Office
an itemized listing of their labor component, specifying the names of their workers and employees
below the managerial level, including learners, apprentices and disabled/handicapped workers who
were hired under the terms prescribed in the employment contracts, and their corresponding salaries
and wages.
"Where the application of any prescribed wage increase by virtue of a law or Wage Order issued by
any Regional Board results in distortions of the wage structure within an establishment, the employer
and the union shall negotiate to correct the distortions. Any dispute arising from wage distortions shall
be resolved through the grievance procedure under their collective bargaining agreement and, if it
remains unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in writing,
such dispute shall be decided by the voluntary arbitrator or panel of voluntary arbitrators within ten
[10] calendar days from the time said dispute was referred to voluntary arbitration.
"In cases where there are no collective agreements or recognized labor unions, the employers and
workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled
through the National Conciliation and Mediation Board and, if it remains unresolved after ten [10]
calendar days of conciliation, shall be referred to the appropriate branch of the National Labor
Relations Commission [NLRC]. It shall be mandatory for the NLRC to conduct continuous hearings
and decide the dispute within twenty [20] calendar days from the time said dispute is submitted for
compulsory arbitration.
"The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability
of any increase in prescribed wage rates pursuant to the provisions of law or Wage Order.
"As used herein, a wage distortion shall mean a situation where an increase in prescribed wage rates
results in the elimination or severe contraction of intentional quantitative differences in wage or salary
rates between and among employee groups in an establishment as to effectively obliterate the
distinctions embodied in such wage structure based on skills, length of service, or other logical bases
of differentiation. chanroblesvirtuallawlibrary
"All workers paid by result, including those who are paid on piecework, takay, pakyaw or task basis,
shall receive not less than the prescribed wage rates per eight [8] hours work a day, or a proportion
thereof for working less than eight [8] hours.
"All recognized learnership and apprenticeship agreements shall be considered automatically modified
insofar as their wage clauses are concerned to reflect the prescribed wage rates."
"Art. 126. Prohibition Against Injunction. - No preliminary or permanent injunction or temporary

restraining order may be issued by any court, tribunal or other entity against any proceedings before
the Commission or the Regional Boards."
"Art. 127. Non-Diminution of Benefits. - No Wage Order issued by any Regional Board shall provide
for wage rates lower than the statutory minimum wage rates prescribed by Congress."
Sec. 4. (a) Upon the effectivity of this Act, the statutory minimum wage rates of all workers and
employees in the private sector, whether agricultural or non-agricultural, shall be increased by Twenty-
five pesos [P25.00] per day, except that workers and employees in plantation agricultural enterprises
outside of the National Capital Region [NCR] with an annual gross sales of less than Five million
pesos [P5,000,000.00] in the preceding year shall be paid an increase of Twenty pesos [P20.00], and
except further that workers and employees of cottage/handicraft industries, non-plantation agricultural
enterprises, retail/service establishments regularly employing not more than ten [10] workers, and
business enterprises with a capitalization of not more than Five hundred thousand pesos [P500,000.00]
and employing not more than twenty [20] employees, which are located or operating outside the NCR,
shall be paid only an increase of Fifteen pesos [P15.00]: Provided, That those already receiving above
the minimum wage rates up to One hundred pesos [P100.00] shall also receive an increase of Twenty-
five pesos [P25.00] per day, except that the workers and employees mentioned in the first exception
clause of this Section shall also be paid only an increase of Twenty pesos [P20.00], and except further
that those employees enumerated in the second exception clause of this section shall also be paid an
increase of Fifteen pesos [P15.00]: Provided, further, That the appropriate Regional Board is hereby
authorized to grant additional increases to the workers and employees mentioned in the exception
clauses of this section if, on the basis of its determination pursuant to Article 124 of the Labor Code
such increases are necessary.
(b) The increase of Twenty-five pesos [P25.00] prescribed under this section shall apply to all workers
and employees entitled to the same in private educational institutions as soon as they have increased or
are granted authority to increase their tuition fees during school year 1989-1990. Otherwise, such
increase shall be so applicable not later than the opening of the next school year beginning 1990.
(c) Exempted from the provisions of this Act are household or domestic helpers and persons employed
in the personal service of another, including family drivers. chanroblesvirtuallawlibrary
Retail/service establishments regularly employing not more than ten [10] workers may be exempted
from the applicability of this Act, upon application with, and as determined by, the appropriate
Regional Board in accordance with the applicable rules and regulations issued by the Commission.
Whenever an application for exemption has been duly filed with the appropriate Regional Board,
action on any complaint for alleged non-compliance with this Act shall be deferred pending resolution
of the application for exemption by the appropriate Regional Board.
In the event that applications for exemptions are not granted, employees shall receive the appropriate
compensation due them as provided for by this Act plus interest of one percent [1%] per month
retroactive to the effectivity of this Act.
(d) If expressly provided for and agreed upon in the collective bargaining agreements, all increases in
the daily basic wage rates granted by the employers three [3] months before the effectivity of this Act
shall be credited as compliance with the increases in the wage rates prescribed herein, provided that,
where such increases are less than the prescribed increases in the wage rates under this Act, the
employer shall pay the difference. Such increases shall not include anniversary wage increases, merit
wage increases and those resulting from the regularization or promotion of employees.
Where the application of the increases in the wage rates under this section results in distortions as
defined under existing laws in the wage structure within an establishment and gives rise to a dispute
therein, such dispute shall first be settled voluntarily between the parties and in the event of a
deadlock, the same shall be finally resolved through compulsory arbitration by the regional arbitration
branch of the National Labor Relations Commission [NLRC] having jurisdiction over the workplace.
It shall be mandatory for the NLRC to conduct continuous hearings and decide any dispute arising
under this section within twenty [20] calendar days from the time said dispute is formally submitted to
it for arbitration. The pendency of a dispute arising from a wage distortion shall not in any way delay
the applicability of the increases in the wage rates prescribed under this section.
Sec. 5. Within a period of four [4] years from the effectivity of this Act and without prejudice to
collective bargaining negotiations or agreements or other employment contracts between employers
and workers, new business enterprises that may be established outside the NCR and export processing
zones whose operation or investments need initial assistance as may be determined by the Department
of Labor and Employment in consultation with the Department of Trade and Industry or the
Department of Agriculture, as the case may be, shall be exempt from the application of this Act for not
more than three [3] years from the start of their operations: Provided, That such new business
enterprises established in Region III [Central Luzon] and Region IV [Southern Tagalog] shall be
exempt from such increases only for two [2] years from the start of their operations, except those
established in the Provinces of Palawan, Oriental Mindoro, Occidental Mindoro, Marinduque,
Romblon, Quezon and Aurora, which shall enjoy such exemption for not more than three [3] years
from the start of their operations.
Sec. 6. In the case of contracts for construction projects and for security, janitorial and similar services,
the prescribed increases in the wage rates of the workers shall be borne by the principals or clients of
the construction/service contractors and the contract shall be deemed amended accordingly. In the
event, however, that the principal or client fails to pay the prescribed wage rates, the
construction/service contractor shall be jointly and severally liable with his principal or client.
Sec. 7. Upon written petition of the majority of the employees or workers concerned, all private
establishments, companies, businesses, and other entities with twenty-five (25) or more employees and
located within one (1) kilometer radius to a commercial, savings or rural bank shall pay the wages and
other benefits of their employees through any of said banks and within the period for payment of
wages fixed by Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the
Philippines.
Sec. 8. Whenever applicable and upon request of a concerned worker or union, the bank shall issue a
certification of the record of payment of wages of a particular worker or workers for a particular
payroll period.
Sec. 9. The Department of Labor and Employment shall conduct inspections as often as possible
within its manpower constraint of the payroll and other financial records kept by the company or
business to determine whether the workers are paid the prescribed wage rates and other benefits
granted by law or any Wage Order. In unionized companies, the Department of Labor and
Employment inspectors shall always be accompanied by the president or any responsible officer of the
recognized bargaining unit or of any interested union in the conduct of the inspection. In non-
unionized companies, establishments or businesses, the inspection should be carried out in the
presence of a worker representing the workers in the said company. The workers' representative shall
have the right to submit his own findings to the Department of Labor and Employment and to testify
on the same if he cannot concur with the findings of the labor inspector. chanroblesvirtuallawlibrary
Sec. 10. The funds necessary to carry out the provisions of this Act shall be taken from the
Compensation and Organizational Adjustment Fund, the Contingent Fund, and other savings under
Republic Act No. 6688, otherwise known as the General Appropriations Act of 1989, or from any
unappropriated funds of the National Treasury: Provided, That the funding requirements necessary to
implement this Act shall be included in the annual General Appropriations Act for the succeeding
years.
Sec. 11. The National Wages Council created under Executive Order No. 614 and the National
Productivity Commission created under Executive Order No. 615 are hereby abolished. All properties,
records, equipment, buildings, facilities, and other assets, liabilities and appropriations of and
belonging to the abovementioned offices, as well as other matters pending therein, shall be transferred
to the Commission. All personnel of the above-abolished offices shall continue to function in a
holdover capacity and shall be preferentially considered for appointments to or placement in the
Commission.
Any official or employee separated from the service as a result of the abolition of offices pursuant to
this Act shall be entitled to appropriate separation pay and retirement and other benefits accruing to
them under existing laws. In lieu, thereof, at the option of the employee, he shall be preferentially
considered for employment in the government or in any of its subdivisions, instrumentalities, or
agencies, including government-owned or controlled corporations and their subsidiaries.
Sec. 12. Any person, corporation, trust, firm, partnership, association or entity which refuses or fails to
pay any of the prescribed increases or adjustments in the wage rates made in accordance with this Act
shall be punished by a fine not exceeding Twenty-five thousand pesos [P25,000.00] and/or
imprisonment of not less than one [1] year nor more than two [2] years: Provided, That any person
convicted under this Act shall not be entitled to the benefits provided for under the Probation Law.
If the violation is committed by a corporation, trust or firm, partnership, association or any other entity,
the penalty of imprisonment shall be imposed on the entity's responsible officers, including, but not
limited to, the president, vice-president, chief executive officer, general manager, managing director or
partner.
Sec. 13. The Secretary of Labor and Employment shall promulgate the necessary rules and regulations
to implement the provisions of this Act.
Sec. 14. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with the
provisions of this Act are hereby repealed, amended or modified accordingly. If any provision or part
of this Act, or the application thereof to any person or circumstance, is held invalid or unconstitutional,
the remainder of this Act or the application of such provision or part hereof to other persons or
circumstances shall not be affected thereby.
Nothing in this Act shall be construed to reduce any existing wage rates, allowances and benefits of
any form under existing laws, decrees, issuances, executive orders, and/or under any contract or
agreement between the workers and employers. chanroblesvirtuallawlibrary
Sec. 15. This Act takes effect fifteen [15] days after its complete publication in the Official Gazette or
in at least two [2] national newspapers of general circulation, whichever comes earlier.

THE MAGNA CARTA OF PUBLIC HEALTH WORKERS
SECTION 1. Title. - This Act shall be known as the "Magna Carta of Public Health Workers."chan
robles virtual law library
SEC. 2. Declaration of the Policy. - The State shall instill health consciousness among our people to
effectively carry out the health programs and projects to the government essential for the growth and
health of the nation. Towards this end, this Act aims:
(a) to promote and improve the social and economic well-being of the health workers, their living and
working conditions and terms of employment;
(b) to develop their skills and capabilities in order that they will be more responsive and better
equipped to deliver health projects and programs; and
(c) to encourage those with proper qualifications and excellent abilities to join and remain in
government service.
SEC. 3. Definition. - For purposes of this Act, "health workers" shall mean all persons who are
engaged in health and health-related work, and all persons employed in all hospitals, sanitaria, health
infirmaries, health centers, rural health units, barangay health stations, clinics and other health-related
establishments owned and operated by the Government or its political subdivisions with original
charters and shall include medical, allied health professional, administrative and support personnel
employed regardless of their employment status.
SEC. 4. Recruitment and Qualification. - Recruitment policy and minimum requirements with respect
to the selection and appointment of a public worker shall be developed and implemented by the
appropriate government agencies concerned in accordance with policies and standards of the Civil
Service Commission: Provided, That in the absence of appropriate eligibles and it becomes necessary
in the public interest to fill a vacancy, a temporary appointment shall be issued to the person who
meets all the requirements for the position to which he/she is being appointed except the appropriate
civil service eligibility: Provided, further, That such temporary appointment shall not exceed twelve
(12) months nor be less than three (3) months renewal thereafter but that the appointee may be
replaced sooner if (a) qualified civil service eligible becomes available, or (b) the appointee is found
wanting in performance or conduct befitting a government employee.chan robles virtual law library
SEC. 5. Performance Evaluation an Merit Promotion. - The Secretary of Health, upon consultation
with the proper government agency concerned and the Management-Health Workers Consultative
Councils, as established under Section 33 of this Act, shall prepare a uniform career and personnel
development plan applicable to all public health personnel. Such career and personnel development
plan shall include provisions on merit promotion, performance evaluation, inservice training grants,
job rotation, suggestions and incentive award system.
The performance evaluation plan shall consider foremost the improvement of individual employee
efficiency and organizational effectiveness: Provided, That each employee shall be informed regularly
by his/her supervisor of his/her performance evaluation.
The merit promotion plan shall be in consonance with the rules of the Civil Service Commission.
SEC. 6. Transfer or Geographical Reassignment of Public health Workers.
(a) a transfer is a movement from one position to another which is of equivalent rank, level or salary
without break in service;
(b) a geographical reassignment, hereinafter referred to as "reassignment," is a movement from one
geographical location to another; and
(c) a public health worker shall not be transferred and or reassigned, except when made in the interest
of public service, in which case, the employee concerned shall be informed of the reasons therefore in
writing. If the public health worker believes that there is no justification for the transfer and/or
reassignment, he/she may appeal his/her case to the Civil Service Commission, which shall cause
his/her reassignment to be held in abeyance; Provided, That no transfer and/or reassignment
whatsoever shall be made three (3) months before any local or national elections: Provided, further,
That the necessary expenses of the transfer and/or reassignment of the public health worker and his/her
immediate family shall be paid for the Government.chan robles virtual law library
SEC. 7. Married Public Health Workers. - Whenever possible, the proper authorities shall take steps to
enable married couples, both of whom are public health workers, to be employed or assigned in the
same municipality, but not in the same office.
SEC. 8. Security of Tenure. - In case of regular employment of public health workers, their services
shall not be terminated except for cause provided by law and after due process: Provided, That if a
public health workers is found by the Civil Service Commission to be unjustly dismissed from work,
he/she shall be entitled to reinstatement without loss of seniority rights and to his/her back wages with
twelve percent (12%) interest computed from the time his/her compensation was withheld from his/her
up to time of reinstatement.
SEC. 9. Discrimination Prohibited. - A public worker shall not be discriminated against with regard to
gender, civil status, civil status, creed, religious or political beliefs and ethnic groupings in the exercise
of his/her profession.
SEC. 10. No Understaffing/Overloading of Health Staff. - There shall be no understaffing or
overloading of public health workers. The ratio of health staff to patient load shall be such as to
reasonably effect a sustained delivery of quality health care at all times without overworking the public
health worker and over extending his/her duty and service. Health students and apprentices shall be
allowed only for purposes of training and education.
In line with the above policy, substitute officers or employees shall be provided in place of officers or
employees who are on leave for over three (3) months. Likewise, the Secretary of Health or the proper
government official shall assign a medico-legal officer in every province.
In places where there is no such medico-legal officer, rural physicians who are required to render
medico-legal services shall be entitled to additional honorarium and allowances.
SEC. 11. Administration Charges. - Administrative charges against a public health worker shall be
heard by a committee composed of the provincial health officer of the province where the public health
worker belongs, as chairperson, a representative of any existing national or provincial public health
workers organization or in its absence its local counterfeit and a supervisor of the district, the last two
(2) to be designated by the provincial health officer mentioned above. The committee shall submit its
findings and recommendations to the Secretary of Health within thirty (30) days from the termination
of the hearings. Where the provincial health officer is an interested party, all the members of the
committee shall be appointed by the Secretary of Health.
SEC. 12. Safeguards in Disciplinary Procedures - In every disciplinary proceeding, the public health
worker shall have;
(a) the right to be informed, in writing, of the charges;

(b) the right to full access to the evidence in the case;
(c) the right to defend himself/herself and to be defended by a representative of his/her choice and/or
by his/her organization, adequate time being given to the public health worker for the preparation of
his/her defense;
(d) the right to confront witnesses presented against him/her and summon witnesses in his/her
behalf;chan robles virtual law library
(e) the right to appeal to designated authorities;
(f) the right to reimbursement of reasonable expenses incurred in his/her defense in case of exoneration
or dismissal of the charges; and
(g) such other rights as will ensure fairness and impartiality during proceedings.
SEC. 13. Duties and Obligations. - The public health workers shall:
(a) discharge his/her duty humanely wit conscience and dignity;
(b) perform his/her duty with utmost respect for life; and race, gender, religion, nationality, party
policies, social standing or capacity to pay.
SEC. 14. Code of Conduct. - Within six (6) months from the approval of this Act, the Secretary of
Health, upon consultation with other appropriate agencies, professional and health workers
organization, shall formulate and prepare a Code of Conduct for Public Health Workers, which shall be
disseminated as widely as possible.
SEC. 15. Normal Hours of Work. - The normal of wok of any public health worker shall not exceed
eight (8) hours a day or forty (40) hours a week. Hours worked shall include:
(a) all the time during which a public health worker is required to be on active duty or to be at a
prescribed workplace; and
(b) all the time during which a public health worker is suffered or permitted to work. Provided, That
the time when the public health worker is place on "On Call" status shall not be considered as hours
worked but shall entitled the public health worker to an "On Call" pay equivalent to fifty percent (50%)
of his/her regular wage. "On Call" status refers to a condition when public health workers are called
upon to respond to urgent or immediate need for health/medical assistance or relief work during
emergencies such that he/she cannot devote the time for his/her own use.
SEC. 16. Overtime Work. - Where the exigencies of the service so require, any public health worker
may be required t render, service beyond the normal eight (8) hours a day. In such a case, the workers
shall be paid an additional compensation in accordance with existing laws and prevailing practices.
SEC. 17. Work During Rest Day. -
(a) Where a public health worker is made to work on his/her schedule rest day, he/she shall be paid an
additional compensation in accordance with existing laws; and
(b) Where a public health worker is made to worm on any special holiday he/she shall be paid an
additional compensation in accordance with existing laws. Where such holiday work falls on the
workers scheduled rest day, he/she shall be entitled to an additional compensation as may be provided
by existing laws.
SEC. 18. Night-Shift Differential. -
(a) Every public health worker shall be paid night-shift differential of ten percent (10%) of his/her
regular wage for each hour of work performed during the night-shifts customarily adopted by
hospitals.
(b) Every health worker required to work on the period covered after his/her regular schedule shall be
entitled to his/her regular wage plus the regular overtime rate and an additional amount of ten percent
(10%) of such overtime rate for each hour of work performed between ten (10) oclock in the evening
to six (6) oclock in the morning.
SEC. 19. Salaries. - In the determination of the salary scale of public health workers, the provisions of
Republic Act No. 6758 shall govern, except that the benchmark for Rural Health Physicians shall be
upgraded to Grade 24.
(a) Salary Scale - Salary Scales of public health workers shall be provided progression: Provided, That
the progression from the minimum to maximum of the salary scale shall not extend over a period of ten
(10) years: Provided, further, That the efficiency rating of the public health worker concerned is at
least satisfactory.
(b) Equality in Salary Scale - The salary scales of public health workers whose salaries are
appropriated by a city, municipality, district, or provincial government shall not be less than those
provided for public health workers of the National Government: Provided, That the National
Government shall subsidize the amount necessary to pay the difference between that received by
nationally-paid and locally-paid health workers of equivalent positions.
(c) Salaries to be Paid in Legal Tender. - Salaries of public health workers shall be paid in legal tender
of the Philippines or the equivalent in checks or treasury warrants: Provided, however, That such
checks or treasury warrants shall be convertible to cash in any national, provincial, city or municipal
treasurers office or any banking institution operating under the laws of the Republic of the
Philippines.chan robles virtual law library
(d) Deductions Prohibited - No person shall make any deduction whatsoever from the salaries or public
health workers except under specific provision of law authorizing such deductions: Provided, however,
That upon written authority executed by the public health worker concerned, (a) lawful dues or fees
owing to any organization/association where such public health worker is an officer or member, and
(b) premium properly due all insurance policies, retirement and medicare shall be considered
deductible.
SEC. 20. Additional Compensation. - Notwithstanding Section 12 of Republic Act No. 6758, public
workers shall received the following allowances: hazard allowance, subsistence allowance, longevity
pay, laundry allowance and remote assignment allowance.
SEC. 21. Hazard Allowance. - Public health worker in hospitals, sanitaria, rural health units, main
centers, health infirmaries, barangay health stations, clinics and other health-related establishments
located in difficult areas, strife-torn or embattled areas, distresses or isolated stations, prisons camps,
mental hospitals, radiation-exposed clinics, laboratories or disease-infested areas or in areas declared
under state of calamity or emergency for the duration thereof which expose them to great danger,
contagion, radiation, volcanic activity/eruption occupational risks or perils to life as determined by the
Secretary of Health or the Head of the unit with the approval of the Secretary of Health, shall be
compensated hazard allowance equivalent to at least twenty-five percent (25%) of the monthly basic
salary of health workers receiving salary grade 19 and below, and five percent (5%) for health workers
with salary grade 20 and above.
SEC. 22. Subsistence Allowance. - Public health workers who are required to render service within the
premises of hospitals, sanitaria, health infirmaries, main health centers, rural health units and barangay
health stations, or clinics, and other health-related establishments in order to make their services
available at any and all times, shall be entitled to full subsistence allowance of three (3) meals which
may be computed in accordance with prevailing circumstances as determined by the Secretary of
Health in consultation with the Management Health Workers Consultative Councils, as established
under Section 33 of this Act: Provided, That representation and travel allowance shall be given to rural
health physicians as enjoyed by municipal agriculturists, municipal planning and development officers
and budget officers.
SEC. Longevity Pay. - A monthly longevity pay equivalent to five percent (5%) of the monthly basic
pay shall be paid to a health worker for every five (5) years of continuous, efficient and meritorious
services rendered as certified by the chief of office concerned commencing with the service after the
approval of this Act.
SEC. 24. Laundry Allowance. - All public health workers who are required to wear uniforms regularly
shall be entitled to laundry allowance equivalent to one hundred twenty-five pesos (P125.00) per
month: Provided, That this rate shall be reviewed periodically and increased accordingly by the
Secretary of Health in consultation with the appropriate government agencies concerned taking into
account existing laws and prevailing practices.
SEC. 25. Remote Assignment Allowance. - Doctors, dentists, nurses, and midwives who accept
assignments as such in remote areas or isolated stations, which for reasons of far distance or hard
accessibility such positions had not been filed for the last two (2) years prior to the approval of this
Act, shall be entitled to an incentive bonus in the form of remote assignment allowance equivalent to
fifty percent (50%) of their basic pay, and shall be entitled to reimbursement of the cost of reasonable
transportation to and from and during official trips.
In addition to the above, such doctors, dentists, nurses, and midwives mentioned in the preceding
paragraph shall be given priority in promotion or assignment to better areas. Their tour of duties in the
remote areas shall not exceed two (2) years, except when there are no positions for their transfer or
they prefer to start in such posts in excess of two (2) years.
SEC. 26. Housing. - All public health workers who are in tour of duty and those who, because of
unavoidable circumstances are forces to stay in the hospital, sanitaria or health infirmary premises,
shall entitles to free living quarters within the hospital, sanitarium or health infirmary or if such
wuarters are not available, shall receive quarters allowance as may be determined by the Secretary of
Health and other appropriate government agencies concerned: Provided, That this rate shall be
reviewed periodically and increased accordingly by the Secretary of Health in consultation with the
appropriate government agencies concerned.chan robles virtual law library
For purposes of this Section, the Department of Health is authorized to develop housing projects in its
own lands, not otherwise devoted for other uses, for public health workers, in coordination with
appropriate government agencies.
SEC. 27. Medical Examination. - Compulsory medical examination shall be provided free of charge to
all public health workers before entering the service in the Government or its subdivisions and shall be
repeated once a year during the tenure of employment of all public health workers: Provided, That
where medical examination shows that medical treatment and/or hospitalization is necessary for those
already in government service, the treatment and/or hospitalization including medicines shall be
provided free either in a government or a private hospital by the government entity paying the salary of
the health worker: Provided, further, That the cost of such medical examination and treatment shall be
included as automatic appropriation in said entitys annual budget.
SEC. 28. Compensation of Injuries. - Public health workers shall be protected against the
consequences of employment injuries in accordance with existing laws. Injuries incurred while doing
overtime work shall be presumed work-connected.
SEC. 29. Leave Benefits for Public Health Workers. - Public health workers are entitled to such
vacation and sick leaves as provided by existing laws and prevailing practices: Provided, That in
addition to the leave privilege now enjoyed by public health, women health workers are entitled to
such maternity leaves provided by existing laws and prevailing practices: Provided, further, That upon
separation of the public health workers from services, they shall be entitled to all accumulated leave
credits with pay.
SEC. 30. Highest Basic Salary Upon Retirement - Three (3) prior to the compulsory retirement, the
public health worker shall automatically be granted one (1) salary range or grade higher than his/her
basic salary and his/her retirement benefits thereafter, computed on the basis of his/her highest salary:
Provided, That he/she has reached the age and fulfilled service requirements under existing laws.
SEC. 31. Right to Self-Organization. - Public health workers shall have the right to freely from, join or
assist organizations or unions for purposes not contrary to law in order to defend and protect their
mutual interests and to obtain redness of their grievances through peaceful concerned activities.
However, meanwhile the State recognizes the right of public health workers to organize or join
organization, public health workers on-duty cannot declare, stage or join any strike or cessation of their
service to patients in the interest of public health, safety or survival of patients.
SEC. 32. Freedom from Interference or Coercion. - It shall be unlawful for any person to commit any
of the following acts of interference or coercion:
(a) to require as a condition of employment that a public health worker shall not join a health workers
organization or union or shall relinquish membership therein;
(b) to discriminate in regard to hiring or tenure of employment or any item or condition of employment
in order to encourage or discourage membership in any health workers organization or union;
(c) to prevent a health worker from carrying out duties laid upon him/her by his/her position in the
organization or union, or to penalize him/her for the action undertaken in such capacity;
(d) to harness or interfere with the discharge of the functions of the health worker when these are
calculated to intimidate or to prevent the performance of his/her duties and responsibilities; and
(e) to otherwise interfere in the establishment, functioning, or administration of health workers
organization or unions through acts designed to place such organization or union under the control of
government authority.
SEC. 33. Consultation With Health Workers Organization. - In the formulation of national policies
governing the social security of public health workers, professional and health workers, organizations
or unions as well as other appropriate government agencies concerned shall be consulted by the
Secretary of Health. For this purpose, Management Health Workers Consultative Councils for
national, regional and other appropriate levels shall be established and operationalized.
SEC. 34. Health Human Resource Development/Management Study. - The Department of Health shall
conduct a periodic health human resource development/management study into, among others, the
following areas;chan robles virtual law library
(a) adequacy of facilities and supplies to render quality health care to patients and other client
population;
(b) opportunity for health workers to grow and develop their potentials and experience a sense of worth
and dignity in their work. Public health workers who undertake postgraduate studies in a degree course
shall be entitled to an upgrading in their position or raise in pay: Provided, That it shall not be more
than every two (2) years;
(c) mechanisms for democratic consultation in government health institutions;
(d) staffing patterns and standard or health care to ensure that the people receive-quality care. Existing
recommendations on staffing and standards of health care shall be immediately and strictly enforced;
(e) ways and means of enabling the rank-and-file workers to avail of education opportunities for
personal growth and development;
(f) upgrading of working conditions, reclassification positions and salaries of public health workers to
correct disparity vis-a-vis other professions such that positions requiring longer study to upgrade and
given corresponding pay scale; and
(g) assessment of the national policy on exportation of skilled health human resource to focus on how
these resources could instead be utilized productivity for the countrys needs.
There is hereby created a Congressional Commission on Health (HEALTHCOM) to review and assess
health human resource development, particularly on continuing professional education and training and
the other areas described above. The Commission shall be composed of five (5) members of the House
of Representatives and five (5) members of the Senate. It shall be co-chaired by the chairperson of the
Committee on health of both houses. It shall render a report and recommendation to Congress which
shall be the basis for policy legislation in the field of health. Such a congressional review shall be
undertaken once every five (5) years.chan robles virtual law library
SEC. 35. Rules and Regulations. - The Secretary of Health after consultation with appropriate agencies
of the Government as well as professional and health workers organizations or unions, shall formulate
and prepare the necessary rules and regulations to implement the provisions of this Act. Rules and
regulations issued pursuant to this section shall take effect thirty (30) days after publication in a
newspaper of general circulation.
SEC. 36. Prohibition Against Double Recovery of Benefits. - Whenever other laws provide for the
same benefits covered by this Act, the public health worker shall have the option to choose which
benefits will be paid to him/her. However, in the event that the benefits chosen are less than that
provided under this Act, the worker shall be paid only the difference.
SEC. 37. Prohibition Against Elimination and/or Diminution. - Nothing in this law shall be construed
to eliminate or in any way diminish benefits being enjoyed by public health workers at the time of the
effectivity of this Act.
SEC. 38. Budgetary Estimates. - The Secretary of health shall submit annually the necessary budgetary
estimates to implement the provisions of this Act in staggered basis of implementation of the proposes
benefits until the total of Nine hundred forty-six million six hundred sixty-four thousand pesos
(P964,664,000.00) is estimated within five (5) years.
Budgetary estimates for the succeeding years should be reviewed and increased accordingly by the
Secretary of Health in consultation with the Department of Budget and Management and the
Congressional Commission on Health (HEALTHCOM).
SEC. 39. Penal Provision. - Any person shall willfully interfere with, restrain or coerce any public
health worker in the exercise of his/her rights or shall in any manner any act in violation of any of the
provisions of this Act, upon conviction, shall be punished by a fine of not less than Twenty thousand
pesos (P20,000.00) but not more than one (1) year or both at the discretion of the court.
If the offender is a public official, the court, in addition to the penalties provided in the preceding
paragraph, may impose the additional penalty of disqualification from office.
SEC. 40. Separability Clause. - If any provision of this Act is declared invalid, the remainder of this
Act or any provision not affected thereby shall remain in force and effect. chan robles virtual law
library
SEC. 41. Repealing Clause. - All laws, presidential decrees, executive orders and their implementing
rules, inconsistent with the provisions of this act are hereby repealed, amended or modified
accordingly.
SEC. 42. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at least two (2)
national newspapers of general circulation.
REPUBLIC ACT No. 10022
AN ACT AMENDING REPUBLIC ACT NO. 8042, OTHERWISE KNOWN AS THE MIGRANT
WORKERS AND OVERSEAS FILIPINOS ACT OF 1995, AS AMENDED, FURTHER
IMPROVING THE STANDARD OF PROTECTION AND PROMOTION OF THE WELFARE OF
MIGRANT WORKERS, THEIR FAMILIES AND OVERSEAS FILIPINOS IN DISTRESS, AND
FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Paragraphs (a), (e), (g) and (h) of Section 2 of Republic Act. No. 8042, as amended,
otherwise known as the "Migrant Workers and Overseas Filipinos Act of 1995," is hereby amended to
read as follows:
"(a) In the pursuit of an independent foreign policy and while considering national sovereignty,
territorial integrity, national interest and the right to self-determination paramount in its relations with
other states, the State shall, at all times, uphold the dignity of its citizens whether in country or
overseas, in general, and Filipino migrant workers, in particular, continuously monitor international
conventions, adopt/be signatory to and ratify those that guarantee protection to our migrant workers,
and endeavor to enter into bilateral agreements with countries hosting overseas Filipino workers."
"(e) Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be
denied to any person by reason of poverty. In this regard, it is imperative that an effective mechanism
be instituted to ensure that the rights and interest of distressed overseas Filipinos, in general, and
Filipino migrant workers, in particular, whether regular/documented or irregular/undocumented, are
adequately protected and safeguarded."
"(g) The State recognizes that the most effective tool for empowerment is the possession of skills by
migrant workers. The government shall provide them free and accessible skills development and
enhancement programs. Pursuant to this and as soon as practicable, the government shall deploy and/or
allow the deployment only of skilled Filipino workers."
"(h) The State recognizes non-governmental organizations, trade unions, workers associations,
stakeholders and their similar entities duly recognized as legitimate, are partners of the State in the
protection of Filipino migrant workers and in the promotion of their welfare. The State shall cooperate
with them in a spirit of trust and mutual respect. The significant contribution of recruitment and
manning agencies shall from part this partnership."
Section 2. Section 3, paragraph (a) of Republic Act No. 8042, as amended, is hereby amended to read
as follows:
"(a) "Overseas Filipino worker" refers to a person who is to be engaged, is engaged or has been
engaged in a remunerated activity in a state of which he or she is not a citizen or on board a vessel
navigating the foreign seas other than a government ship used for miliatry or non-commercial purposes
or on an installation located offshore or on the high seas; to be used interchangeably with migrant
worker."
Section 3. Section 4 of Republic Act No. 8042, as amended, is hereby amended to rerad as follows:
"SEC. 4. Deployment of Migrant Workers. - The State shall allow the deployment of overseas Filipino
workers only in countries where the rights of Filipino migrant workers are protected. The government
recognizes any of the following as a guarantee on the part of the receiving country for the protection of
the rights of overseas Filipino workers:
"(a) It has existing labor and social laws protecting the rights of workers, including migrant workers;
"(b) It is a signatory to and/or a ratifier of multilateral conventions, declarations or resolutions relating

to the protection of workers, including migrant workers; and
"(c) It has concluded a bilateral agreement or arrangement with the government on the protection of the
rights of overseas Filipino Workers:
Provided, That the receiving country is taking positive, concrete measures to protect the rights of
migrant workers in furtherance of any of the guarantees under subparagraphs (a), (b) and (c) hereof.
"In the absence of a clear showing that any of the aforementioned guarantees exists in the country of
destination of the migrant workers, no permit for deployment shall be issued by the Philippine
Overseas Employment Administration (POEA).
"The members of the POEA Governing Board who actually voted in favor of an order allowing the
deployment of migrant workers without any of the aforementioned guarantees shall suffer the penalties
of removal or dismissal from service with disqualification to hold any appointive public office for five
(5) years, Further, the government official or employee responsible for the issuance of the permit or for
allowing the deployment of migrant workers in violation of this section and in direct contravention of
an order by the POEA Governing Board prohibiting deployment shall be meted the same penalties in
this section.
"For this purpose, the Department of Foreign Affairs, through its foreign posts, shall issue a
certification to the POEA, specifying therein the pertinent provisions of the receiving country's
labor/social law, or the convention/declaration/resolution, or the bilateral agreement/arrangement
which protect the rights of migrant workers.
"The State shall also allow the deployment of overseas Filipino workers to vessels navigating the
foreign seas or to installations located offshore or on high seas whose owners/employers are compliant
with international laws and standards that protect the rights of migrant workers.
"The State shall likewise allow the deployment of overseas Filipino workers to companies and
contractors with international operations: Provided, That they are compliant with standards, conditions
and requirements, as embodied in the employment contracts prescribed by the POEA and in
accordance with internationally-accepted standards."
Section 4. Section 5 of Republic Act No. 8042, as amended, is hereby amended to read as follows:
"SEC. 5. Termination or Ban on Deployment. - Notwithstanding the provisions of Section 4 hereof, in

pursuit of the national interest or when public welfare so requires, the POEA Governing Board, after
consultation with the Department of Foreign Affairs, may, at any time, terminate or impose a ban on
the deployment of migrant workers."
"SEC. 6. Definition. - For purposes of this Act, illegal recruitment shall mean any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes referring,
contract services, promising or advertising for employment abroad, whether for profit or not, when
undertaken by non-licensee or non-holder of authority contemplated under Article 13(f) of Presidential
Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines: Provided, That
any such non-licensee or non-holder who, in any manner, offers or promises for a fee employment
abroad to two or more persons shall be deemed so engaged. It shall likewise include the following acts,
whether committed by any person, whether a non-licensee, non-holder, licensee or holder of authority:
"(a) To charge or accept directly or indirectly any amount greater than that specified in the schedule of
allowable fees prescribed by the Secretary of Labor and Employment, or to make a worker pay or
acknowledge any amount greater than that actually received by him as a loan or advance;
"(b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;
"(c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under the Labor Code, or for the
purpose of documenting hired workers with the POEA, which include the act of reprocessing workers
through a job order that pertains to nonexistent work, work different from the actual overseas work, or
work with a different employer whether registered or not with the POEA;
"(d) To include or attempt to induce a worker already employed to quit his employment in order to
offer him another unless the transfer is designed to liberate a worker from oppressive terms and
conditions of employment;
"(e) To influence or attempt to influence any person or entity not to employ any worker who has not
applied for employment through his agency or who has formed, joined or supported, or has contacted
or is supported by any union or workers' organization;
"(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality
or to the dignity of the Republic of the Philippines;
"(h) To fail to submit reports on the status of employment, placement vacancies, remittance of foreign
exchange earnings, separation from jobs, departures and such other matters or information as may be
required by the Secretary of Labor and Employment;
"(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified
by the Department of Labor and Employment from the time of actual signing thereof by the parties up
to and including the period of the expiration of the same without the approval of the Department of
Labor and Employment;
"(j) For an officer or agent of a recruitment or placement agency to become an officer or member of
the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the
management of travel agency;
"(k) To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations, or for any other reasons, other than those authorized under the Labor Code
and its implementing rules and regulations;
"(l) Failure to actually deploy a contracted worker without valid reason as determined by the
Department of Labor and Employment;
"(m) Failure to reimburse expenses incurred by the worker in connection with his documentation and
processing for purposes of deployment, in cases where the deployment does not actually take place
without the worker's fault. Illegal recruitment when committed by a syndicate or in large scale shall be
considered an offense involving economic sabotage; and
"(n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.
"Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more
persons conspiring or confederating with one another. It is deemed committed in large scale if
committed against three (3) or more persons individually or as a group.
"In addition to the acts enumerated above, it shall also be unlawful for any person or entity to commit
the following prohibited acts:
"(1) Grant a loan to an overseas Filipino worker with interest exceeding eight percent (8%) per annum,
which will be used for payment of legal and allowable placement fees and make the migrant worker
issue, either personally or through a guarantor or accommodation party, postdated checks in relation to
the said loan;
"(2) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required
to avail of a loan only from specifically designated institutions, entities or persons;
"(3) Refuse to condone or renegotiate a loan incurred by an overseas Filipino worker after the latter's
employment contract has been prematurely terminated through no fault of his or her own;
to undergo health examinations only from specifically designated medical clinics, institutions, entities
or persons, except in the case of a seafarer whose medical examination cost is shouldered by the
principal/shipowner;
to undergo training, seminar, instruction or schooling of any kind only from specifically designated
institutions, entities or persons, except fpr recommendatory trainings mandated by
principals/shipowners where the latter shoulder the cost of such trainings;
"(6) For a suspended recruitment/manning agency to engage in any kind of recruitment activity
including the processing of pending workers' applications; and
"(7) For a recruitment/manning agency or a foreign principal/employer to pass on the overseas Filipino
worker or deduct from his or her salary the payment of the cost of insurance fees, premium or other
insurance related charges, as provided under the compulsory worker's insurance coverage.
"The persons criminally liable for the above offenses are the principals, accomplices and accessories.
In case of juridical persons, the officers having ownership, control, management or direction of their
business who are responsible for the commission of the offense and the responsible employees/agents
thereof shall be liable.
"In the filing of cases for illegal recruitment or any of the prohibited acts under this section, the
Secretary of Labor and Employment, the POEA Administrator or their duly authorized representatives,
or any aggrieved person may initiate the corresponding criminal action with the appropriate office. For
this purpose, the affidavits and testimonies of operatives or personnel from the Department of Labor
and Employment, POEA and other law enforcement agencies who witnessed the acts constituting the
offense shall be sufficient to prosecute the accused.
"In the prosecution of offenses punishable under this section, the public prosecutors of the Department
of Justice shall collaborate with the anti-illegal recruitment branch of the POEA and, in certain cases,
allow the POEA lawyers to take the lead in the prosecution. The POEA lawyers who act as prosecutors
in such cases shall be entitled to receive additional allowances as may be determined by the POEA
Administrator.
"The filing of an offense punishable under this Act shall be without prejudice to the filing of cases
punishable under other existing laws, rules or regulations."1avvphi1
"SEC. 7. Penalties. -
"(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not less
than twelve (12) years and one (1) day but not more than twenty (20) years and a fine of not less than
One million pesos (P1,000,000.00) nor more than Two million pesos (P2,000,000.00).
"(b) The penalty of life imprisonment and a fine of not less than Two million pesos (P2,000,000.00)
nor more than Five million pesos (P5,000,000.00) shall be imposed if illegal recruitment constitutes
economic sabotage as defined therein.
"Provided, however, That the maximum penalty shall be imposed if the person illegally recruited is
less than eighteen (18) years of age or committed by a non-licensee or non-holder of authority.
"(c) Any person found guilty of any of the prohibited acts shall suffer the penalty of imprisonment of
not less than six (6) years and one (1) day but not more than twelve (12) years and a fine of not less
than Five hundred thousand pesos (P500,000.00) nor more than One million pesos (P1,000,000.00).
"If the offender is an alien, he or she shall, in addition to the penalties herein prescribed, be deported
without further proceedings.
"In every case, conviction shall cause and carry the automatic revocation of the license or registration
of the recruitment/manning agency, lending institutions, training school or medical clinic."
"SEC. 10. Money Claims. - Notwithstanding any provision of law to the contrary, the Labor Arbiters
of the National Labor Relations Commission (NLRC) shall have the original and exclusive jurisdiction
to hear and decide, within ninety (90) calendar days after the filing of the complaint, the claims arising
out of an employer-employee relationship or by virtue of any law or contract involving Filipino
workers for overseas deployment including claims for actual, moral, exemplary and other forms of
damage. Consistent with this mandate, the NLRC shall endeavor to update and keep abreast with the
developments in the global services industry.
"The liability of the principal/employer and the recruitment/placement agency for any and all claims
under this section shall be joint and several. This provision shall be incorporated in the contract for
overseas employment and shall be a condition precedent for its approval. The performance bond to de
filed by the recruitment/placement agency, as provided by law, shall be answerable for all money
claims or damages that may be awarded to the workers. If the recruitment/placement agency is a
juridical being, the corporate officers and directors and partners as the case may be, shall themselves
be jointly and solidarily liable with the corporation or partnership for the aforesaid claims and
damages.
"Such liabilities shall continue during the entire period or duration of the employment contract and
shall not be affected by any substitution, amendment or modification made locally or in a foreign
country of the said contract.
"Any compromise/amicable settlement or voluntary agreement on money claims inclusive of damages

under this section shall be paid within thirty (30) days from approval of the settlement by the
appropriate authority.
"In case of termination of overseas employment without just, valid or authorized cause as defined by
law or contract, or any unauthorized deductions from the migrant worker's salary, the worker shall be
entitled to the full reimbursement if his placement fee and the deductions made with interest at twelve
percent (12%) per annum, plus his salaries for the unexpired portion of his employment contract or for
three (3) months for every year of the unexpired term, whichever is less.
"In case of a final and executory judgement against a foreign employer/principal, it shall be
automatically disqualified, without further proceedings, from participating in the Philippine Overseas
Employment Program and from recruiting and hiring Filipino workers until and unless it fully satisfies
the judgement award.
"Noncompliance with the mandatory periods for resolutions of case provided under this section shall
subject the responsible officials to any or all of the following penalties:
"(a) The salary of any such official who fails to render his decision or resolution within the prescribed
period shall be, or caused to be, withheld until the said official complies therewith;
"(b) Suspension for not more than ninety (90) days; or
"(c) Dismissal from the service with disqualification to hold any appointive public office for five (5)
years.
"Provided, however, That the penalties herein provided shall be without prejudice to any liability
which any such official may have incured under other existing laws or rules and regulations as a
consequence of violating the provisions of this paragraph."
Section 8. The first paragraph of Section 13 of Republic Act No. 8042, as amended is hereby amended
to read as follows:
"SEC. 13. Free Legal Assistance; Preferential Entitlement Under the Witness Protection Program. - A
mechanism for free legal assistance for victims of illegal recruitment shall be established in the anti-
illegal recruitment branch of the POEA including its regional offices. Such mechanism shall include
coordination and cooperation with the Department of Justice, the Integrated Bar of the Philippines, and
other non-governmental organizations and volunteer groups."
"SEC. 16. Mandatory Repatriation of Underage Migrant Workers. - Upon discovery or being informed
of the presence of migrant workers whose ages fall below the minimum age requirement for overseas
deployment, the responsible officers in the foreign service shall without delay repatriate said workers
and advise the Department of Foreign Affairs through the fastest means of communication available of
such discovery and other relevant information. The license of a recruitment/manning agency which
recruited or deployed an underage migrant worker shall be automatically revoked and shall be imposed
a fine of not less than Five hundred thousand pesos (Php 500,000.00) but not more than One million
pesos (Php 1,000,000.00). All fees pertinent to the processing of papers or documents in the
recruitment or deployment shall be refunded in full by the responsible recruitment/manning agency,
without need of notice, to the underage migrant worker or to his parents or guardian. The refund shall
be independent of and in addition to the indemnification for the damages sustained by the underage
migrant worker. The refund shall be paid within thirty (30) days from the date of the mandatory
repatriation as provided for in this Act."
"SEC. 17. Establishment of National Reintegration Center for Overseas Filipino Workers. -A national
reintegration center for overseas Filipino workers (NRCO) is hereby created in the Department of
Labor and Employment for returning Filipino migrant workers which shall provide a mechanism for
their reintegration into the Philippine society, serve as a promotion house for their local employment,
and tap their skills and potentials for national development.
"The Department of Labor and Employment, the Overseas Workers Welfare Administration (OWWA),
and the Philippine Overseas Employment Administration (POEA) shall, within ninety (90) days from
the effectivity of this Act, formulate a program that would motivate migrant workers to plan for
productive options such as entry into highly technical jobs or undertakings, livelihood and
entrepreneurial development, better wage employment, and investment of savings.
"For this purpose, the Technical Education and Skills Development Authority (TESDA), the
Technology Livelihood Resource Center (TLRC), and other government agencies involved in training
and livelihood development shall give priority to returnees who had been employed as domestic
helpers and entertainers."
Section 11. Section 18 of Republic Act No. 8042, as amended is hereby amended to read as follows:
"SEC. 18. Functions of the National Reintegration Center for Overseas Filipino Workers. -The Center
shall provide the following services:
"(a) Develop and support programs and projects for livelihood, entrepreneurship, savings, investments
and financial literacy for returning Filipino migrant workers and their families in coordination with
relevant stakeholders, service providers and international organizations;
"(b) Coordinate with appropriate stakeholders, service providers and relevant international
organizations for the promotion, development and the full utilization of overseas Filipino worker
returnees and their potentials;
"(c) Institute, in cooperation with other government agencies concerned, a computer-based information
system on returning Filipino migrant workers shall be accessible to all local recruitment agencies and
employers, both public and private;
"(d) Proved a periodic study and assessment of job opportunities for returning Filipino migrant
workers;
"(e) Develop and implement other appropriate programs to promote the welfare of returning Filipino
migrant workers;
"(f) Maintain an internet-based communication system for on-line registration and interaction with
clients, and maintain and upgrade computer-based service capabilities of the NRCO;
"(g) Develop capacity-building programs for returning overseas Filipino workers and their families,
implementers, service providers, and stakeholders; and
"(h) Conduct research for policy recommendations and program development."

Section 12. The second paragraph of Section 19 of Republic Act No. 8042, as amended, is hereby
amended to read as follows:
"The establishment and operations of the Center shall be a joint undertaking of the various government
agencies. The Center shall be open for twenty-four (24) hours daily including Saturdays, Sundays and
holidays, and shall be staffed by Foreign Service personnel, service attaches or officers who represent
other Philippine government agencies abroad and, if available, individual volunteers and bona fide
non-government organizations from the host countries. In countries categorized as highly problematic
by the Department of Foreign Affairs and the Department of Labor and Employment and where there
is a concentration of Filipino migrant workers, the government must provide a Sharia or human rights
lawyer, a psychologist and a social worker for the Center. In addition to these personnel, the
government must also hire within the receiving country, in such number as may be needed by the post,
public relation officers or case officers who are conversant, orally and in writing, with the local
language, laws, customs and practices. The Labor Attache shall coordinate the operation of the Center
and shall keep the Chief of Mission informed and updated on all matters affecting it."
"SEC. 20. Establishment of a Shared Government Information System for Migration. - An interagency
committee composed of the Department of Foreign Affairs and its attached agency, the Commission
on Filipinos Overseas, the Department of Labor and Employment and its attached concerned agencies,
the Department of Tourism, the Department of Justice the Bureau of Immigration, the National Bureau
of Investigation, the Department of the Interior and Local Government, the National
Telecommunications Commission, the Commission on Information and Communications Technology,
the National Computer Center, the National Statistical and Coordination Board, the National Statistics
Office and other government agencies concerned with overseas employment shall be established to
implement a shared government information system for migration. The interagency committee shall
initially make available to itself the information contained in existing data bases/files. The second
phase shall involve linkaging of computer facilities on order to allow free-flow data exchanges and
sharing among concerned agencies.
"The inter-agency committee shall be co-chaired by the Department of Foreign Affairs and the
Department of Labor and Employment. The National Computer Center shall provide the necessary
technical assistance and shall set the appropriate information and communications technology
standards to facilitate the sharing of information among the member agencies.
"The inter-agency committee shall meet regularly to ensure the immediate and full implementation of
this section and shall explore the possibility setting up a central storage facility for the data on
migration. The progress of the implementation of this section shall be include in the report to Congress
of the Department of Foreign Affairs and the Department of Labor and Employment under Section 33.
"The inter-agency committee shall convene to identify existing data bases which shall be declassified
and shared among member agencies. These shared data bases shall initially include, but not be limited
to, the following information:
"(a) Masterlists of Filipino migrant workers/overseas Filipino classified according to occupation/job

category, civil status, by country/state of destination including visa classification;
"(b) Inventory of pending legal cases involving Filipino migrant workers and other Filipino nationals,
including those serving prison terms;
"(c) Masterlists of departing/arriving Filipinos;
"(d) Statistical profile on Filipino migrant workers/overseas Filipinos/tourists;
"(e) Blacklisted foreigners/undesirable aliens;
"(f) Basic data on legal systems, immigration policies, marriage laws and civil and criminal codes in
receiving countries particularly those with large numbers of Filipinos;
"(g) List of Labor and other human rights instruments where receiving countries are signatories;
"(h) A tracking system of past and present gender disaggregated cases involving male and female
migrant workers, including minors; and
"(i) Listing of overseas posts which may render assistance to overseas Filipinos, in general, and
migrant workers, in particular."
Section 14. Subparagraph (b.1) of paragraph (b) of Section 23 of Republic Act No. 8042, as amended,
is hereby amended to read as follows:
"(b.1) Philippine Overseas Employment Administration. - The Administration shall regulate private
sector participation in the recruitment and overseas placement of workers by setting up a licensing and
registration system. It shall also formulate and implement, in coordination with appropriate entities
concerned, when necessary, a system for promoting and monitoring the overseas employment of
Filipino workers taking into consideration their welfare and the domestic manpower requirements. It
shall be responsible for the regulation and management of overseas employment from the pre-
employment stage, securing the best possible employment terms and conditions for overseas Filipino
workers, and taking into consideration the needs of vulnerable sectors and the peculiarities of sea-
based and land-based workers. In appropriate cases, the Administration shall allow the lifting of
suspension of erring recruitment/manning agencies upon the payment of fine of Fifty thousand pesos
(P50,000.00) for every month of suspension.
"in addition to its powers and functions, the Administration shall inform migrant workers not only of
their rights as workers but also of their rights as human beings, instruct and guide the workers how to
assert their rights and provide the available mechanism to redress violation of their rights. It shall also
be responsible for the implementation, in partnership with other law-enforcement agencies, of an
intensified program against illegal recruitment activities. For this purpose, the POEA shall provide
comprehensive Pre-Employment Orientation Seminars (PEOS) that will discuss topics such as
prevention of illegal recruitment and gender-sensitivity.
"The Administration shall not engage in the recruitment and placement of overseas workers except on
a government-to-government arrangement only.
"In the recruitment and placement of workers to service the requirements for trained and competent
Filipino workers of foreign governments and their instrumentalitys, and such other employers as public
interests may require, the Administration shall deploy only to countries where the Philippine has
conclude bilateral labor agreements or arrangements: Provided, That such countries shall guarantee to
protect the rights of Filipino migrant workers; and Provided, further, That such countries shall observe
and/or comply with the international laws and standards for migrant workers."
Section 15. Sub-paragraph (b.2) of Paragraph (b) of Section 23 of Republic Act No. 8042, as amended,
is hereby amended to read as follows:
"(b.2) Overseas Workers Welfare Administration. - The Welfare officer of in his absence, the
coordinating officer shall provide the Filipino migrant worker and his family all the assistance they
may need in the enforcement of contractual obligations by agencies or entities and/or by their
principals. In the performance of this function, he shall make representation and may call on the
agencies or entities concerned to conferences or conciliation meetings for the purpose of settling the
compliance or problems brought to his attention. The OWWA shall likewise formulate and implement
welfare programs for overseas Filipino workers and their families while they are abroad and upon their
return. It shall ensure the awareness by the overseas Filipino workers and their families of these
programs and other related governmental programs.
"In the repatriation of workers to be undertaken by OWWA, the latter shall be authorized to pay
repatriation-related expenses, such as fines or penalties, subject to such guidelines as the OWWA
Board of Trustees may prescribe."
Section 16. Under Section 23 of Republic Act No. 8042, as amended, add new paragraphs (c) and (d)
with their corresponding subparagraphs to read as follows:
"(c) Department of Health. - The Department of Health (DOH) shall regulate the activities and
operations of all clinics which conduct medical, physical, optical, dental, psychological and other
similar examinations, hereinafter referred to as health examinations, on Filipino migrant workers as
requirement for their overseas employment. Pursuant to this, the DOH shall ensure that:
" (c.1) The fees for the health examinations are regulated, regularly monitored and duly published to
ensure that the said fees are reasonable and not exorbitant;
" (c.2) The Filipino migrant worker shall only be required to undergo health examinations when there
is reasonable certainty that he or she will be hired and deployed to the jobsite and only those health
examinations which are absolutely necessary for the type of job applied for or those specifically
required by the foreign employer shall be conducted;
" (c.3) No group or groups of medical clinics shall have a monopoly of exclusively conducting health
examinations on migrant workers for certain receiving countries;
" (c.4) Every Filipino migrant worker shall have the freedom to choose any of the DOH-accredited or
DOH-operated clinics that will conduct his/her health examinations and that his or her rights as a
patient are respected. The decking practice, which requires an overseas Filipino worker to go first to an
office for registration and then farmed out to a medical clinic located elsewhere, shall not be allowed;
" (c.5) Within a period of three (3) years from the effectivity of this Act, all DOH regional and/or
provincial hospitals shall establish and operate clinics that can be serve the health examination
requirements of Filipino migrant workers to provide them easy access to such clinics all over the
country and lessen their transportation and lodging expenses and
" (c.6) All DOH-accredited medical clinics, including the DOH-operated clinics, conducting health
examinations for Filipino migrant workers shall observe the same standard operating procedures and
shall comply with internationally-accepted standards in their operations to conform with the
requirements of receiving countries or of foreign employers/principals.
"Any Foreign employer who does not honor the results of valid health examinations conducted by a
DOH-accredited or DOH-operated clinic shall be temporarily disqualified from the participating in the
overseas employment program, pursuant to POEA rules and regulations.
"In case an overseas Filipino worker is found to be not medically fit upon his/her immediate arrival in
the country of destination, the medical clinic that conducted the health examination/s of such overseas
Filipino worker shall pay for his or her repatriation back to the Philippines and the cost of deployment
of such worker.
"Any government official or employee who violates any provision of this subsection shall be removed
or dismissed from service with disqualification to hold any appointive public office for five(5) years.
Such penalty is without prejudice to any other liability which he or she may have incurred under
existing laws, rules or regulations.
"(d) Local Government Units. - In the fight against illegal recruitment, the local government units
(LGUs), in partnership with the POEA, other concerned government agencies , and non-government
organizations advocating the rights and welfare of overseas Filipino workers, shall take a proactive
stance by being primarily responsible for the dissemination of information to their constituents on all
aspects of overseas employment. To carry out this task, the following shall be undertaken by the
LGUs:
"(d.1) Provide a venue for the POEA, other concerned government agencies and non-government
organizations to conduct PEOS to their constituents on a regular basis;
"(d.2) Establish overseas Filipino worker help desk or kiosk in their localities with the objective of
providing current information to their constituents on all the processes aspects of overseas
employment. Such desk or kiosk shall, as be linked to the database of all concerned government
agencies, particularly the POEA for its updated lists of overseas job orders and licensed recruitment
agencies in good standing."
Section 17. Subparagraph ( c ) of Section of Republic Act No. 8042, as amended, is hereby amended to
read as follows:
"( c ) To tap the assistance of reputable law firms, the Integrated Bar of the Philippines, other bar
associations and other government legal experts on overseas Filipino worker laws to complement the
government's efforts to provide legal assistance to our migrant workers;"
"SEC. 25. Legal Assistance Fund. - There is herby established a legal assistance fund for migrant
workers, hereinafter referred to as the Legal Assistance Fund, in the amount of one hundred million
pesos (P100,000,000.00) to be constituted from the following sources.
"Fifty million pesos (50,000,000.00) from the Contingency Fund of the President;
"Thirty million pesos (30,000,000.00) from the Contingency Fund of the President Social Fund;
"Twenty million pesos (20,000,000.00) from the Welfare Fund for Overseas Workers established
under Letter of Instructions No. 537 as amended by Presidential Decree Nos. 1694 and 1809; and
"An amount appropriated in the annual General Appropriations Act (GAA) which shall not be less than
Thirty million pesos (30,000,000.00) per year: Provided, that the balance of the Legal Assistance Fund
(LAF) including the amount appropriated for the year shall not be less than One hundred million pesos
(P100,000,000.00) : Provided, further, That the fund shall be treated as a special fund in the National
Treasury and its balance, including the amount appropriated in the GAA, which shall form part of the
Fund, shall not revert to the General Fund.
" Any balances of existing funds which have been set aside by the government specifically as legal
assistance or defense fund to help migrant workers shall upon effectivity of this Act, be turned over to,
and form part of, the Fund created under this Act."
"SEC. 26. Uses of the Legal Assistance Fund. - The Legal Assistance Fund created under the
preceding section shall be used exclusively6 to provide legal services to migrant workers and overseas
Filipinos in distress in accordance with the guidelines, criteria and procedures promulgated in
accordance with Section 24 ( a ) herof. The expenditures to be charged against the Fund shall include
the fees for the foreign lawyers to be hired by the Legal Assistant for Migrant Workers Affairs to
represent migrant workers facing charges or in filing cases against erring or abusive employers abroad,
bail bonds to secure the temporary releases and other litigation expenses: Provided, That at the end of
every year, the Department of Foreign Affairs shall include in its report to Congress, as provided for
under Section 33 of this Act, the status of the Legal Assistance Fund, including the expenditures from
the said fund duly audited by the Commission on Audit (COA): Provided, further, That the hiring of
foreign legal counsels, when circumstances warrant urgent action, shall be exempt from the coverage
of Republic Act No. 9184 or the Government Procurement Act."
"SEC. 32. POEA, OWWA and other Boards; Additional Memberships. - Notwithstanding any
provision of law to the contrary, the respective Boards of the POEA and the OWWA shall, in addition
to their present composition, have three (3) members each who shall come from the women, sea-based
and land-based sectors respectively, to be selected and nominated openly by the general membership
of the sector being represented.
" The selection and nomination of the additional members from the women, sea-based and land-based
sectors shall be governed by the following guidelines:
"(a) The POEA and the OWWA shall launch a massive information campaign on the selection of
nominees and provide for a system of consultative sessions for the certified leaders or representatives
of the concerned sectors, at least three (3) times, within ninety (90) days before the boards shall be
convened, for purposes of selection. The process shall be open, democratic and transparent;
"(b) Only non-government organizations that protect and promote the rights and welfare of overseas
Filipino workers, duly registered with the appropriate Philippine government agency and in good
standing as such, and in existence for at least three (3) years prior to the nomination shall be qualified
to nominate a representative for each sector to the Board;
"(c) The nominee must be at least twenty-five (25) years of age, able to read and write, and a migrant
worker at the time of his or her nomination or was a migrant worker with at least three (3) years
experience as such; and
"(d) A final list of all the nominees selected by the OWWA/POEA governing boards, which shall
consist of three(3) names for each sector to be represented, shall be submitted to the President and
published in a newspaper of general circulation;
"Within thirty (30) days from the submission of the list, the President shall select and appoint from the
list, the representatives to the POEA/OWWA governing boards.
"The additional members shall have a term of three (3) years and shall be eligible for reappointment
for another three (3) years. In case of vacancy, the President shall in accordance with the provisions of
this Act, appoint a replacement who shall serve the unexpired term of his or her predecessor.
"Any executive issuances or orders issued that contravene the provisions of this section shall have no
force and effect.
"All other government agencies and government-owned or controlled corporations which require at
least one (1) representative from the overseas workers sector to their respective boards shall follow all
the applicable provisions of this section."
Section 21. The first and last paragraph of Section 33 of Republic Act No. 8042, as amended, is hereby
amended to read as follows:
"SEC. 33. Report to Congress. - In order to inform the Philippine Congress on the implementation of
the policy enunciated in Section 4 hereof, the Department of Foreign Affairs and the Department of
Labor and Employment shall submit separately to the said body a semi-annual report of Philippine
foreign posts located in countries hosting Filipino migrant workers. The mid-year report covering the
period January to June shall be submitted not later than October 31 of the same year while the year-end
report covering the period July to December shall be submitted not later than May 31 of the following
year. The report shall include, but shall not limited to, the following information:
"xxx
" Any officer of the government who fails to submit the report as stated in this section shall be subject
to an administrative penalty of dismissal from the service with disqualification to hold any appointive
public office for five (5) years."
SEC. 35. Exemption from Travel Tax Documentary Stamp and Airport Fee. - All laws to the contrary
notwithstanding, the migrant workers shall be exempt from the payment of travel tax and airport-fee
upon proper showing of proof entitlement by the POEA.
"The remittances of all overseas Filipino workers, upon showing of the same proof of entitlement by
the overseas Filipino worker's beneficiary or recipient, shall be exempt from the payment of
documentary stamp tax.
Section 23. A new Section 37-A. of Replublic Act No. 8042, as amended, is hereby added to read as
follows:
"SEC. 37-A. Compulsory Insurance Coverage for Agency-Hired Workers. - In addition to the
performance bond to be filed by the recruitment/manning agency under Section 10, each migrant
worker deployed by a recruitment/manning agency shall be covered by a compulsory insurance policy
which shall be secured at no cost to the said worker. Such insurance policy shall be effective for the
duration of the migrant worker's employment and shall cover, at the minimum:
"(a) Accidental death, with at least Fifteen thousand United States dollars (US$10,000.00) survivor's
benefit payable to the migrant worker's beneficiaries;
"(c) Permanent total disablement, with at least Seven thousand five hundred United States dollars
(US$7,500.00) disability benefit payable to the migrant worker. The following disabilities shall be
deemed permanent: total, complete loss of sight of both eyes; loss of two(2) limbs at or above the
ankles or wrists; permanent complete paralysis of two (2) limbs; brain injury resulting to incurable
imbecility or insanity;
"(d) Repatriation cost of the worker when his/her employment is terminated without any valid cause,
including the transport of his or her personal belongings. In case of death, the insurance provider shall
arrange and pay for the repatriation or return of the worker's remains. The insurance provider shall also
render any assistance necessary in the transport including, but not limited to, locating a local licensed
funeral home, mortuary or direct disposition facility to prepare the body for transport, completing all
documentation, obtaining legal clearances, procuring consular services, providing necessary casket or
air transport container, as well as transporting the remains including retrieval from site of death and
delivery to the receiving funeral home;
"(e) Subsistence allowance benefit, with at least One hundred United States dollars (US$100.00) Per
month for a maximum of six (6) months for a migrant worker who is involved in a case or litigation for
the protection of his/her rights in the receiving country;
"(f) Money claims arising from employer's liability which may be awarded or given to the worker in a
judgment or settlement of his or her case in the NLRC. The insurance coverage for money claims shall
be equivalent to at least three (3) months for every year of the migrant worker's employment contract;
"In addition to the above coverage, the insurance policy shall also include:
"(g) Compassionate visit. When a migrant worker is hospitalized and has been confined for at least
seven (7) consecutive days, he shall be entitled to a compassionate visit by one (1) family member or a
requested individual. The insurance company shall pay for the transportation cost of the family
member or requested individual to the major airport closest to the place of hospitalization of the
worker. It is, however, the responsibility of the family member or requested individual to meet all visa
and travel document requirements;
"(h) Medical evacuation. When an adequate medical facility is not available proximate to the migrant
worker, as determined by the insurance company's physician and/or a consulting physician, evacuation
under appropriate medical supervision by the mode of transport necessary shall be undertaken by the
insurance provider; and
"(i) Medical repatriation. When medically necessary as determined by the attending physician,
repatriation under medical supervision to the migrant worker's residence shall be undertaken by the
insurance provider at such time that the migrant worker is medically cleared for travel by commercial
carrier. If the period to receive medical clearance to travel exceeds fourteen (14) days from the date of
discharge from the hospital, an alternative appropriate mode of transportation, such as air ambulance,
may be arranged. Medical and non-medical escorts may be provided when necessary.
"Only reputable private insurance companies duly registered with the Insurance Commission (IC) ,
which are in existence and operational for at least Five hundred million pesos (P500,000,000.00) to be
determined by the IC, and with a current year certificate of authority shall be qualified to provide for
the worker's insurance coverage. Insurance companies who have directors, partners, officers,
employees or agents with relatives, within the fourth civil degree of consanguinity or affinity, who
work or have interest in any of the licensed recruitment/manning agencies or in any of the government
agencies involved in the overseas employment program shall be disqualified from providing this
workers' insurance coverage.
"The recruitment/manning agency shall have the right to choose from any of the qualified insurance
providers the company that will insure the migrant worker it will deploy. After procuring such
insurance policy, the recruitment/manning agency shall provide an authenticated copy thereof to the
migrant worker. It shall then submit the certificate of insurance coverage of the migrant worker to
POEA as a requirement for the issuance of an Overseas Employment Certificate (OEC) to the migrant
worker. In the case of seafarers who are insured under policies issued by foreign insurance companies,
the POEA shall accept certificates or other proofs of cover from recruitment/manning agencies:
Provided, That the minimum coverage under sub-paragraphs (a) to (i) are included therein.
"Any person having a claim upon the policy issued pursuant to subparagraphs (a), (b), (c), (d) and (e)
of this section shall present to the insurance company concerned a written notice of claim together with
pertinent supporting documents. The insurance company shall forthwith ascertain the truth and extent
of the claim and make payment within ten (10) days from the filing of the notice of claim.
"Any claim arising from accidental death, natural death or disablement under this section shall be paid
by the insurance company without any contest and without the necessity of providing fault or
negligence of any kind on the part of the insured migrant worker: Provided, That the following
documents, duly authenticated by the Philippine foreign posts, shall be sufficient evidence to
substantiate the claim:
"(1) Death Certificate - In case of natural or accidental death;
"(2) Police or Accident Report - In case of accidental death; and
"(3) Medical Certificate - In case of permanent disablement;
"For repatriation under subparagraph (d) hereof, a certification which states the reason/s for the
termination of the migrant worker's employment and the need for his or her repatriation shall be issued
by the Philippine foreign post or the Philippine Overseas Labor Office (POLO) located in the receiving
country.
"For subsistence allowance benefit under subparagraph (e), the concerned labor attach or, in his
absence, the embassy or consular official shall issue a certification which states the name of the case,
the names of the parties and the nature of the cause of action of the migrant worker.
"For the payment of money claims under subparagraph (f), the following rules shall govern:
"(1) After a decision has become final and executor or a settlement/compromise agreement has been
reached between the parties at the NLRC, an order shall be released mandating the respondent
recruitment/manning agency to pay the amount adjudged or agreed upon within thirty (30) days;
"(2) The recruitment/manning agency shall then immediately file a notice of claim with its insurance
provider for the amount of liability insured, attaching therewith a copy of the decision or compromise
agreement;
"(3) Within ten (10) days from the filing of notice of claim, the insurance company shall make
payment to the recruitment/manning agency the amount adjudged or agreed upon, or the amount of
liability insured, whichever is lower. After receiving the insurance payment, the recruitment/manning
agency shall immediately pay the migrant worker's claim in full, taking into account that in case the
amount of insurance coverage is insufficient to satisfy the amount adjudged or agreed upon, it is liable
to pay the balance thereof;
"(4) In case the insurance company fails to make payment within ten (10) days from the filing of the
claim, the recruitment/ manning agency shall pay the amount adjudged or agreed upon within the
remaining days of the thirty (30)-day period, as provided in the first subparagraph hereof;
"(5) If the worker's claim was not settled within the aforesaid thirty (30)-day period, the
recruitment/manning agency's performance bond or escrow deposit shall be forthwith garnished to
satisfy the migrant worker's claim;
"(6) The provision of compulsory worker's insurance under this section shall not affect the joint and
solidary liability of the foreign employer and the recruitment/manning agency under Section 10;
"(7) Lawyers for the insurance companies, unless the latter is impleaded, shall be prohibited to appear
before the NLRC in money claims cases under this section.
"Any question or dispute in the enforcement of any insurance policy issued under this section shall be
brought before the IC for mediation or adjudication.
"In case it is shown by substantial evidence before the POEA that the migrant worker who was
deployed by a licensed recruitment/manning agency has paid for the premium or the cost of the
insurance coverage or that the said insurance coverage was used as basis by the recruitment/manning
agency to claim any additional fee from the migrant worker, the said licensed recruitment/manning
agency shall lose its license and all its directors, partners, proprietors, officers and employees shall be
perpetually disqualified from engaging in the business of recruitment of overseas workers. Such
penalty is without prejudice to any other liability which such persons may have incurred under existing
laws, rules or regulations.
"For migrant workers recruited by the POEA on a government-to-government arrangement, the POEA
shall establish a foreign employers guarantee fund which shall be answerable to the workers' monetary
claims arising from breach of contractual obligations. For migrant workers classified as rehires, name
hires or direct hires, they may opt to be covered by this insurance coverage by requesting their foreign
employers to pay for the cost of the insurance coverage or they may pay for the premium themselves.
To protect the rights of these workers, the POEA shall provide them adequate legal assistance,
including conciliation and mediation services, whether at home or abroad.
"At the end of every year, the Department of Labor and Employment and the IC shall jointly make an
assessment of the performance of all insurance providers, based upon the report of the NLRC and the
POEA on their respective interactions and experiences with the insurance companies, and they shall
have the authority to ban or blacklist such insurance companies which are known to be evasive or not
responsive to the legitimate claims of migrant workers. The Department of Labor and Employment
shall include such assessment in its year-end report to Congress.
"For purposes of this section, the Department of Labor and Employment, IC, NLRC and the POEA, in
consultation with the recruitment/manning agencies and legitimate non-government organizations
advocating the rights and welfare of overseas Filipino workers, shall formulate the necessary
implementing rules and regulations.
"The foregoing provisions on compulsory insurance coverage shall be subject to automatic review
through the Congressional Oversight Committee immediately after three (3) years from the effectivity
of this Act in order to determine its efficacy in favor of the covered overseas Filipino workers and the
compliance by recruitment/manning agencies and insurance companies, without prejudice to an earlier
review if necessary and warranted for the purpose of modifying, amending and/or repealing these
subject provisions.
Section 24. A new Section 37-B of Republic Act No. 8042, as amended, is hereby added to read as
follows:
"Sec. 37-B. Congressional Oversight Committee. - There is hereby created a Joint Congressional
Oversight Committee composed of five (5) Senators and five (5) Representatives to be appointed by
the Senate President and the Speaker of the House of Representatives, respectively. The Oversight
Committee shall be co-chaired by the chairpersons of the Senate Committee on Labor and
Employment and the House of Representatives Committee on Overseas Workers Affairs. The
Oversight Committee shall have the following duties and functions:
"(a) To set the guidelines and overall framework to monitor and ensure the proper implementation of
Republic Act No. 8042, as amended, as well as all programs, projects and activities related to overseas
employment;
"(b) To ensure transparency and require the submission of reports from concerned government
agencies on the conduct of programs, projects and policies relating to the implementation of Republic
Act No. 8042, as amended;
"(c) To approve the budget for the programs of the Oversight Committee and all disbursements
therefrom, including compensation of all personnel;
"(d) To submit periodic reports to the President of the Philippines and Congress on the implementation
of the provisions of Republic Act No. 8042, as amended;
"(e) To determine weaknesses in the law and recommend the necessary remedial legislation or
executive measures; and
"(f) To perform such other duties, functions and responsibilities as may be necessary to attain its
objectives.
"The Oversight Committee shall adopt its internal rules of procedure, conduct hearings and receive
testimonies, reports, and technical advice, invite or summon by subpoena ad testificandum any public
official or private citizen to testify before it, or require any person by subpoena duces tecum
documents or other materials as it may require consistent with the provisions of Republic Act No.
8042, as amended.
"The Oversight Committee shall organize its staff and technical panel, and appoint such personnel,
whether on secondment from the Senate and the House of Representatives or on temporary,
contractual, or on consultancy, and determine their compensation subject to applicable civil service
laws, rules and regulations with a view to ensuring a competent and efficient secretariat.
"The members of the Oversight Committee shall not receive additional compensation, allowances or
emoluments for services rendered thereto except traveling, extraordinary and other necessary expenses
to attain its goals and objectives.
"The Oversight Committee shall exist for a period of ten (10) years from the effectivity of this Act and
may be extended by a joint concurrent resolution."
Section 25. Implementing Rules and Regulations. - The departments and agencies charged with
carrying out the provisions of this Act, except as otherwise provided herein, in consultation with the
Senate Committee on Labor and Employment and the House of Representatives Committee on
Overseas Workers Affairs, shall, within sixty (60) days after the effectivity of this Act, formulate the
necessary rules and regulations for its effective implementation.
Section 26. Funding. - The departments, agencies, instrumentalities, bureaus, offices and government-
owned and controlled corporations charged with carrying out the provisions of this Act shall include in
their respective programs the implementation of this Act, the funding of which shall be included in the
General Appropriations Act. The Congressional Oversight Committee on Overseas Workers Affairs
shall have the sum of Twenty-five million pesos (P25,000,000.00), half of which shall be charged
against the current appropriations of the Senate while the other half shall be charged against the current
appropriations of the House of Representatives, to carry out its powers and functions for its initial
operations and for fiscal years wherein the General Appropriations Act is reenacted and no provision
for its continued operation is included in such Act. Thereafter, such amount necessary for its continued
operations shall be included in the annual General Appropriations Act.
Section 27. Separability Clause. - If, for any reason, may portion of this Act is declared
unconstitutional or invalid, the same shall not affect the validity of the other provisions not affected
thereby.
Section 28. Repealing Clause. - All laws, decrees, executive orders, issuances, rules and regulations or
parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
Section 29. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at least two
(2) newspapers of general circulation.
Approved,
(Sgd.) PROSPERO C. NOGRALES

Speaker of the House of Representatives (Sgd.) JUAN PONCE ENRILE
President of the Senate
This Act which is a consolidation of Senate Bill No. 3286 and House Bill No. 5649 was finally passed
by the Senate and the House of Representatives on January 18, 2010 and December 18, 2009,
respectively.
(Sgd.) MARILYN B. BARUA-YAP

Secretary General
House of Represenatives
(Sgd.) EMMA LIRIO-REYES

Secretary of Senate
Approved: March 8, 2010
(Sgd.) GLORIA MACAPAGAL-ARROYO

President of the Philippines
The Lawphil Project - Arellano Law Foundation
OMNIBUS RULES AND REGULATIONS IMPLEMENTING THE MIGRANT WORKERS AND

OVERSEAS FILIPINOS ACT OF 1995, AS AMENDED BY REPUBLIC ACT NO. 10022
Pursuant to the authority vested by law on the Secretary of Foreign Affairs and the Secretary of Labor
and Employment, and in the light of Republic Act No. 10022, An Act Amending Republic Act No.
8042, Otherwise Known as the Migrant Workers and Overseas Filipinos Act of 195, as amended,
Further Improving the Standard of Protection and Promotion of the Welfare of Migrant Workers, Their
Families and Overseas Filipinos in Distress, and For Other Purpose, the following Implementing Rules
and Regulations are hereby promulgated:
RULE I
GENERAL PROVISIONS
Section 1. Declaration of Policies.
(a) In the pursuit of an independent foreign policy and while considering national sovereignty,
territorial integrity, national interest and the right to self-determination paramount in its relations with
other states, the State shall, at all times, uphold the dignity of its citizens whether in the country or
overseas, in general, and Filipino migrant workers, in particular, continuously monitor international
conventions, adopt/be signatory to and ratify those that guarantee protection to our migrant workers,
and endeavor to enter into bilateral agreements with countries hosting overseas Filipino workers.
(b) The State shall afford full protection to labor, local and overseas, organized and unorganized, and
promote full employment and equality of employment opportunities for all. Towards this end, the State
shall provide adequate and timely social, economic and legal services to Filipino migrant workers.
(c) While recognizing the significant contribution of Filipino migrant workers to the national economy
through their foreign exchange remittances, the State does not promote overseas employment as a
means to sustain economic growth and achieve national development. The existence of the overseas
employment program rests solely on the assurance that the dignity and fundamental human rights and
freedoms of the Filipino citizens shall not, at any time, be compromised or violated. The State,
therefore, shall continuously create local employment opportunities and promote the equitable
distribution of wealth and the benefits of development.
(d) The State affirms the fundamental equality before the law of women and men and the significant
role of women in nation building. Recognizing the contribution of overseas migrant women workers
and their particular vulnerabilities, the State shall apply gender sensitive criteria in the formulation and
implementation of policies and programs affecting migrant workers and the composition of bodies
tasked for the welfare of migrant workers.
(e) Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied
to any person by reason of poverty. In this regard, it is imperative that an effective mechanism be
instituted to ensure that the rights and interest of distressed overseas Filipinos, in general, and Filipino
migrant workers, in particular, whether regular/documented or irregular/undocumented, are adequately
protected and safeguarded.
(f) The right of Filipino migrant workers and all overseas Filipinos to participate in the democratic
decision-making processes of the State and to be represented in institutions relevant to overseas
employment is recognized and guaranteed.
(g) The State recognizes that the most effective tool for empowerment is the possession of skills by
migrant workers. The government shall expand access of qualified migrant workers to free skills
development and enhancement programs through scholarships, training subsidies/grants of the
concerned agencies. Pursuant to this and as soon as practicable, the government shall deploy and/or
allow the deployment only of skilled Filipino workers.
(h) The State recognizes that non-governmental organizations, trade unions, workers associations,
stakeholders and other similar entities duly recognized as legitimate, are partners of the State in the
protection of Filipino migrant workers and in the promotion of their welfare. The State shall cooperate
with them in a spirit of trust and mutual respect. The significant contribution of recruitment and
manning agencies shall form part of this partnership.
RULE II
DEFINITION OF TERMS
Section 1. Definitions.
(a) Act - refers to the "Migrant Workers and Overseas Filipinos Act of 1995," as amended by Republic
Act No. 9422 and Republic Act No. 10022.
(b) Authority - refers to a document issued by the Secretary of Labor and Employment authorizing the
officers, personnel, agents or representatives of a licensed recruitment/manning agency to conduct
recruitment and placement activities in a place stated in the license or in a specified place.
(c) BI - Bureau of Immigration
(d) Bona fide Non-Government Organizations (NGOs) - refer to non-government, civil society or
faith-based organizations duly recognized by the Philippine Embassy as active partners of the
Philippine Government in the protection of Filipino migrant workers and the promotion of their
welfare.
(e) CICT - Commission on Information and Communications Technology

(f) Contracted workers - refer to Filipino workers with employment contracts already processed by the
POEA for overseas deployment.
(g) DFA - Department of Foreign Affairs
(h) DILG - Department of Interior and Local Government
(i) Direct Hires - workers directly hired by employers for overseas employment as authorized by the
Secretary of Labor and Employment and processed by the POEA, including:
1. Those hired by international organizations
2. Those hired members of the diplomatic corps.
3. Name hires or workers who are able to secure overseas employment opportunity with an employer
without the assistance or participation of any agency. [Labor Code, POEA Rules]
(j) DOH - Department of Health
(k) DOJ - Department of Justice
(l) DOLE - Department of Labor and Employment
(m) DOST - Department of Science and Technology
(n) DOT - Department of Tourism
(o) Employment Contract - refers to the following:
1. For land-based workers hired by private recruitment/employment agencies - an individual written

agreement between the foreign principal/employer and the worker based on the master employment
contract approved by the Administration; and
2. For seafarers - written standard POEA-approved employment contract stipulating a specific period
of employment and formulated through tripartite consultation, individually adopted and agreed upon
by the principal/employer and the seafarer.
(p) Filipino Service Contractor - refers to any person, partnership or corporation duly licensed as a
private recruitment agency by the Secretary of Labor and Employment to recruit workers for its
accredited projects or contracts overseas.
(q) Gender Sensitivity - refers to cognizance of the inequalities and inequities prevalent in society
between women and men and a commitment to address issues with concern for the respective interest
of the sexes.
(r) Head or manage - refers to any of the following acts:
1. Control and supervise the operations of the recruitment/manning agency or branch thereof of which
they are employed; or
2. Exercise the authority to hire or fire employees and lay down and execute management policies of
the recruitment/manning agency or branch thereof.
(s) Joint and several liability - refers to the liability of the principal/employer and the
recruitment/manning agency, for any and all claims arising out of the implementation of the
employment contract involving Filipino workers for overseas deployment. If the recruitment/manning
agency is a juridical being, the corporate officers and directors and partners, as the case may be, shall
themselves be jointly and severally liable with the corporation or partnership for the aforesaid claims
and damages.
(t) IC - Insurance Commission
(u) Irregular/Undocumented Filipino migrant workers - refer to the following:
(1) Those who acquired their passports through fraud or misrepresentation;
(2) Those who possess expired visas or permits to stay;
(3) Those who have no travel document whatsoever;
(4) Those who have valid but inappropriate visas; or
(5) Those whose employment contracts were not processed by the POEA or subsequently verified and
registered on-site by the POLO, if required by law or regulation.
(v) Labor Code - Presidential Decree No. 442, as amended
(w) License - refers to the document issued by the Secretary of Labor and Employment authorizing a
person, partnership or corporation to operate a private recruitment/manning agency.
(x) LGU - Local Government Unit
(y) Manning Agency - refers to any person, partnership or corporation duly licensed by the Secretary
of Labor and Employment to engage in the recruitment and placement of seafarers for ships plying
international waters and for related maritime activities.
(z) NBI- National Bureau of Investigation
(aa) NCC- National Computer Center
(bb) NLRC - National Labor Relations Commission
(cc) Non-licensee - refers to any person, partnership or corporation with no valid license to engage in
recruitment and placement of overseas Filipino workers or whose license is revoked, cancelled,
terminated, expired or otherwise delisted from the roll of licensed recruitment/manning agencies
registered with the POEA.
(dd) NRCO - National Reintegration Center for Overseas Filipino Workers
(ee) NSCB - National Statistical and Coordination Board
(ff) NSO - National Statistics Office
(gg) NTC - National Telecommunications Commission
(hh) Overseas Filipinos - refer to migrant workers, other Filipino nationals and their dependents
abroad.
(ii) Overseas Filipino in distress - refers to an Overseas Filipino who has a medical, psycho-social or
legal assistance problem requiring treatment, hospitalization, counseling, legal representation as
specified in Rule IX of these Rules or any other kind of intervention with the authorities in the country
where he or she is found.
(jj) Overseas Filipino Worker or Migrant Worker - refers to a person who is to be engaged, is engaged,
or has been engaged in a remunerated activity in a state of which he or she is not a citizen or on board
a vessel navigating the foreign seas other than a government ship used for military or non-commercial
purposes, or on an installation located offshore or on the high seas. A "person to be engaged in a
remunerated activity" refers to an applicant worker who has been promised or assured employment
overseas.
(kk) OWWA - Overseas Workers Welfare Administration
(ll) Placement Fees- refer to any and all amounts charged by a private recruitment agency from a
worker for its recruitment and placement services as prescribed by the Secretary of Labor and
Employment.
(mm) POEA - Philippine Overseas Employment Administration, shall be used interchangeably with
the term "Administration".
(nn) POLO - Philippine Overseas Labor Office
(oo) Principal - refers to an employer or foreign placement agency hiring or engaging Filipino workers
for overseas employment through a licensed private recruitment/manning agency.
(pp) Private Recruitment/Employment Agency - refers to any person, partnership or corporation duly
licensed by the Secretary of Labor and Employment to engage in the recruitment and placement of
workers for overseas employment for a fee which is charged, directly or indirectly, from the workers
who renewed their employment contracts with the same principal.
(qq) Rehires - refer to land-based workers who renewed their employment contracts with the same
principal.
(rr) Regular/Documented Filipino Migrant Workers - Refer to the following:
(1) Those who possess valid passports and appropriate visas or permits to stay and work in the
receiving country; and
(2) Those whose contracts of employment have been processed by the POEA, or subsequently verified
and registered on-site by the POLO, if required by law or regulation.
(ss) Seafarer - refers to any person who is employed or engaged in overseas employment in any
capacity on board a ship other than a government ship used for military or non-commercial purposes.
The definition shall include fishermen, cruise ship personnel and those serving on mobile offshore and
drilling units in the high seas.
(tt) Skilled Filipino Workers - refer to those who have obtained an academic degree, qualification, or
experience, or those who are in possession of an appropriate level of competence, training and
certification, for the job they are applying, as may be determined by the appropriate government
agency.
(uu) TESDA - Technical Education and Skills Development Authority
(vv) Underage Migrant Workers - refers to those who are below 18 years or below the minimum age
requirement for overseas employment as determined by the Secretary of Labor and Employment.
RULE III
DEPLOYMENT OF MIGRANT WORKERS
Section 1. Guarantees of Migrant Workers Rights. The State shall allow the deployment of OFWs only
in countries where the rights of Filipino migrant workers are protected. The government recognizes
any of the following as a guarantee on the part of the receiving country for the protection of the rights
of OFWs:
(a) It has existing labor and social laws protecting the rights of workers, including migrant workers; or
(b) It is a signatory to and/or a of multilateral conventions, declarations or resolutions relating to the

protection of workers including migrant workers; or and
(c) It has concluded a bilateral agreement or arrangement with the government on the protection of the
rights of overseas Filipino Workers;
Provided, that the receiving country is taking positive and concrete measures to protect the rights of
migrant workers in furtherance of any of the guarantees under subparagraphs (a), (b), and (c) hereof.
"Positive and concrete measures" shall include legislative or executive initiatives, diplomatic
negotiations, judicial decisions, programs, projects, activities and such other acts by the receiving
country aimed at protecting the rights of migrant workers.
For purposes of the preceding paragraphs, the DFA shall issue a certification that a receiving country
complies with any of the guarantees under subparagraphs (a), (b), and (c) hereof, and that the receiving
country is taking such positive and concrete measures to protect workers, including migrant workers.
The DFA shall issue such certification to the POEA, specifying therein the pertinent provisions of the
receiving country's labor/social law, or the convention/declaration/resolution, or the bilateral
agreement/arrangement which protect the rights of migrant workers. Such a certification shall be
subject to review by the DFA as often as may be deemed necessary.
The POEA Governing Board shall, in a Resolution, allow only the deployment of OFWs to receiving
countries which have been certified by the DFA as compliant with the above stated guarantees.
The POEA shall register OFWs only for receiving countries allowed by the POEA Governing Board,
subject to existing standards on accreditation of foreign employers/principals and qualification
requirements for workers.
Section 2. Liability of the Members of the POEA Governing Board, Government Officials and
Employees. The members of the POEA Governing Board who actually voted in favor of a Resolution
allowing the deployment of migrant workers without the DFA certification referred to in the preceding
section shall suffer the penalties of removal or dismissal from service with disqualification to hold any
appointive public office for five (5) years. Further, the government official or employee responsible for
the issuance of the permit or for allowing the deployment of migrant workers in violation of this
section and in direct contravention of a resolution by the POEA Governing Board prohibiting
deployment shall be meted the same penalties in this section.
Section 3. Deployment of OFWs to Ocean-Going Ships.
The State shall also allow the deployment of OFWs to ships navigating the foreign seas or to
installations located offshore or on high seas whose owners/employers are compliant with international
laws and standards that protect the rights of migrant workers.
Section 4. Deployment to Companies and Contractors with International Operations. The State shall
likewise allow the deployment of OFWs to companies and contractors with international operations:
Provided, That they are compliant with standards, conditions and requirements, as embodied in the
employment contracts prescribed by the POEA and in accordance with internationally-accepted
standards.
Section 5. Deployment of Skilled Workers.
As soon as adequate mechanisms for determination of skills are in place and consistent with national
interest, the Secretary of Labor and Employment shall allow the deployment only of skilled Filipino
workers.
Section 6. Termination or Ban on Deployment.
Notwithstanding the provisions of Sections 1 and 5 of this Rule, in pursuit of the national interest or
when public welfare so requires, the POEA Governing Board, after consultation with the DFA, may, at
any time, terminate or impose a ban on the deployment of migrant workers.
The POEA Governing Board may, after consultation with the DFA, grant exceptions to the ban or lift
the ban.
Section 7. Travel Advisory.
The DFA shall issue travel advisories as the need arises. A "travel advisory" is a notice to the travelling
public normally for a security reason and based on the prevailing peace and order situation in a specific
destination.
Section 8. Labor Situationer. The POEA, in consultation with the DFA, shall disseminate information
on labor and employment conditions, migration realities and other facts, as well as adherence of
particular countries to international standards on human and workers rights which will adequately
prepare individuals into making informed and intelligent decisions about overseas employment. The
POEA shall publish, in a timely manner, such advisory in a newspaper of general circulation.
The POEA may undertake other programs or resort to other modes of information and dissemination
campaigns, such as the conduct of nationwide, comprehensive and sustainable Pre-Employment
Orientation Seminars.
RULE IV
ILLEGAL RECRUITMENT
Section 1. Definition. For purposes of the Act, illegal recruitment shall mean any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes referring,
contract services, promising or advertising for employment abroad, whether for profit or not, when
undertaken by a non-licensee or non-holder of authority contemplated under Article 13(f) of
Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines:
Provided, That any such non-licensee or non-holder who, in any manner, offers or promises for a fee
employment abroad to two or more persons shall be deemed so engaged. It shall likewise include the
following acts, whether committed by any person, whether a non-licensee, non-holder, licensee or
holder of authority:
(a) To charge or accept directly or indirectly any amount greater than that specified in the schedule of
allowable fees prescribed by the Secretary of Labor and Employment, or to make a worker pay or
acknowledge any amount greater than that actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under the Labor Code, or for the
purpose of documenting hired workers with the POEA, which include the act of reprocessing workers
through a job order that pertains to non-existent work, work different from the actual overseas work, or
work with a different employer whether registered or not with the POEA;
(d) To induce or attempt to induce a worker already employed to quit his employment in order to offer
him another unless the transfer is designed to liberate a worker from oppressive terms and conditions
of employment;
(e) To influence or attempt to influence any person or entity not to employ any worker who has not
applied for employment through his agency or who has formed, joined or supported, or has contacted
or is supported by any union or workers' organization;
(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality
or to the dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor and Employment or by his
duly authorized representative;
(h) To fail to submit reports on the status of employment, placement vacancies, remittance of foreign
exchange earnings, separation from jobs, departures and such other matters or information as may be
required by the Secretary of Labor and Employment;
(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified by
the Department of Labor and Employment from the time of actual signing thereof by the parties up to
and including the period of the expiration of the same without the approval of the Department of Labor
and Employment;
(j) For an officer or agent of a recruitment or placement agency to become an officer or member of the
Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the
management of a travel agency;
(k) To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations, or for any other reasons, other than those authorized under the Labor Code
and its implementing Rules and Regulations;
(l) Failure to actually deploy a contracted worker without valid reason as determined by the
Department of Labor and Employment;
(m) Failure to reimburse expenses incurred by the worker in connection with his documentation and
processing for purposes of deployment, in cases where the deployment does not actually take place
without the worker's fault; and
(n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.
Section 2. Crime Involving Economic Sabotage. Illegal recruitment is deemed committed by a

syndicate if carried out by a group of three (3) or more persons conspiring or confederating with one
another. It is deemed committed in large scale if committed against three (3) or more persons
individually or as a group.
Section 3. Other Prohibited Acts. In addition to the acts enumerated above, it shall also be unlawful for
any person or entity to commit the following prohibited acts:
a. Grant a loan to an OFW with interest exceeding eight (8%) percent per annum, which will be used
for payment of legal and allowable placement fees and make the migrant worker issue, either
personally or through a guarantor or accommodation party, postdated checks in relation to the said
loan;
b. Impose a compulsory and exclusive arrangement whereby an OFW is required to avail of a loan
only from specifically designated institutions, entities, or persons;
c. Refuse to condone or renegotiate a loan incurred by an OFW after the latter's employment contract
has been prematurely terminated through no fault of his / her own;
d. Impose a compulsory an exclusive arrangement whereby an OFW is required to undergo health

examinations only from specifically designated medical clinics, institutions, entities or persons, except
in the case of a seafarer whose medical examination cost is shouldered by the principal/shipowner;
e. Impose a compulsory and exclusive arrangement whereby an OFW is required to undergo training,
seminar, instruction or schooling of any kind only from specifically designated institutions, entities or
persons, except for recommendatory training mandated by principals/shipowners where the latter
shoulder the cost of such trainings;
f. For a suspended recruitment/manning agency to engage in any kind of recruitment activity including
the processing of pending workers' applications;
g. For a recruitment/manning agency or a foreign principal/employer to pass-on to the OFW or deduct

from his/her salary the payment of the cost of insurance fees, premium or other insurance related
charges, as provided under the compulsory worker's insurance coverage.
Section 4. Persons Responsible.
The persons criminally liable for the above offenses are the principals, accomplices and accessories. In
case of juridical persons, the officers having ownership, control, management or direction of their
business and the responsible for the commission of the offense and the responsible employees/agents
thereof shall be liable.
Section 5. Penalties.
(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not less
than twelve (12) years and one (1) day but not more than twenty (20) years and a fine of not less than
One million pesos (P1,000,000.00) nor more than Two Million Pesos (P2,000,000.00).
(b) The penalty of life imprisonment and a fine of not less than Two Million Pesos (P2,000,000.00) nor
more than Five Million Pesos (P5,000,000.00) shall be imposed if illegal recruitment constitutes
economic sabotage as defined therein.
Provided, however, That the maximum penalty shall be imposed if the person illegally recruited is less
than eighteen (18) years of age or committed by a non-licensee or non-holder of authority.
(c) Any person found guilty of any of the prohibited acts shall suffer the penalty of imprisonment of
not less than six (6) years and one (1) day but not more than twelve (12) years and a fine of not less
than Five Hundred Thousand Pesos (P500,000.00) nor more than One million pesos (P1,000,000.00).
If the offender is an alien, he or she shall, in addition to the penalties herein prescribed, be deported
without further proceedings.
In every case, conviction shall cause and carry the automatic revocation of the license or registration of
the recruitment/manning agency, lending institutions, training school or medical clinic.
Section 6. Venue. A criminal action arising from illegal recruitment as defined under this Rule shall be
filed with the Regional Trial Court of the province or city where the offense was committed or where
the offended party actually resides at the time of the commission of the offense; Provided, that the
court where the criminal action is first filed shall acquire jurisdiction to the exclusion of other courts.
Section 7. Prescription. Illegal recruitment cases under this Rule shall prescribe in five (5) years;
Provided, however, that illegal recruitment cases involving economic sabotage shall prescribed in
twenty (20) years.
Section 8. Independent Action. The filing of an offense punishable under this section shall be without
prejudice to the filing of cases punishable under other existing laws, rules or regulations.
RULE V
PROHIBITION OF GOVERNMENT PERSONNEL
Section 1. Disqualification. The following personnel shall be prohibited from engaging directly or
indirectly in the business of recruitment of migrant workers;
(a) Any official or employee of the DOLE, POEA, OWWA, DFA, DOJ, DOH, BI, IC, NLRC,
TESDA, CFO, NBI, Philippine National Police (PNP), Manila International Airport Authority
(MIAA), Civil Aviation Authority of the Philippines (CAAP), and other government agencies involved
in the implementation of the Act, regardless of the status of his/her employment; and
(b) Any of his/her relatives within the fourth civil degree of consanguinity or affinity.
Any government official or employee found to be violating this section shall be charged
administratively, according to Civil Service Rules and Regulations without prejudice to criminal
prosecution.
The government agency concerned shall monitor and initiate, upon its initiative or upon the petition of
any private individual, action against erring officials and employees, and/or their relatives.
RULE VI
ANTI-ILLEGAL RECRUITMENT PROGRAMS
Section 1. POEA Anti-Illegal Recruitment Programs. The POEA adopts policies and procedures,
prepares and implements intensified programs
And strategies towards the eradication of illegal recruitment activities such as, but not limited to the
following:
(a) Providing legal assistance to victims of illegal recruitment and related cases which are
administrative or criminal in nature, such as but not limited to documentation and counseling.
(b) Prosecution of illegal recruiters, during preliminary investigation and during trial in collaboration
with the DOJ prosecutors;
(c) Special operations such as surveillance and closure of establishment or entities suspected to be
engaged in illegal recruitment; and
(d) Information and education campaign.
Whenever necessary, the POEA shall coordinate with other appropriate entities in the implementation
of said programs.
Section 2. Legal Assistance.
The POEA shall provide free legal service to victims of illegal recruitment and related cases which are
administrative or criminal in nature in the form of legal advice, assistance in the preparation of
complaints and supporting documents, institution of criminal actions.
Section 3. Receiving of Complaints for Illegal Recruitment.
Victims of illegal recruitment and related cases which are administrative or criminal in nature may file
with the POEA a report or complaint in writing and under oath for assistance purposes.
In regions outside the National Capital Region, complaints and reports involving illegal recruitment
may be filed with the appropriate regional office of the POEA or DOLE.
Section 4. Endorsement of Case to the Proper Prosecution Office. The POEA, after evaluation and
proper determination that sufficient evidence exists for illegal recruitment and other related cases, shall
endorse the case to the proper Prosecution Office for the conduct of preliminary investigation.
During preliminary investigation, the complainant may avail of legal assistance or counseling from the
POEA.
Section 5. Institution of Criminal Action. The Secretary of Labor and Employment, the POEA
Administrator or the DOLE Regional Director, or their duly authorized representatives, or any
aggrieved person, may initiate the corresponding criminal action with the appropriate office.
Section 6. Affidavits and Testimonies of Operatives. Affidavits and testimonies of operatives or

personnel from the DOLE, POEA and law enforcement agencies who witnessed the acts constituting
the offense shall be sufficient basis to prosecute the accused.
Section 7. Legal Assistance During Trial. In the prosecution of offenses punishable under Section 6 of
the Act, the Anti-Illegal Recruitment Branch of the POEA shall collaborate with the public prosecutors
of the DOJ and, in certain cases, allow the POEA lawyers to take the lead in prosecution.
Section 8. Special Allowance for Lawyers of the Prosecution Division. The POEA lawyers who act as
special counsels during preliminary investigation and/or as collaborating attorneys of the public
prosecutors of the DOJ during court hearings shall be entitled to receive additional allowances in such
amounts as may be determined by the Administrator.
Section 9. Action on the Complaint/Report.
Where the complaint/report alleges that illegal recruitment activities are ongoing, surveillance shall be
undertaken at the premises where the alleged illegal recruitment activities are conducted. If illegal
recruitment activities are confirmed, the POEA Director of the Licensing and Regulation Office (LRO)
shall recommend to the POEA Administrator the institution of criminal action and/or the issuance of a
closure order or order of preventive suspension.
Section 10. Surveillance. The POEA and/or designated officials in the DOLE regional offices may, on
their own initiative, conduct surveillance on the alleged illegal recruitment activities.
Within two (2) days from the termination of surveillance, a report supported by an affidavit shall be
submitted to the Director-LRO or the Regional Director concerned, as the case may be.
Section 11. Issuance of Closure Order. The POEA Administrator or the concerned DOLE Regional
Director may conduct an ex parte preliminary examination to determine whether the activities of a
non-licensee constitute a danger to national security and public order or will lead to further
exploitation of job seekers. For this purpose, the POEA Administrator or the Regional Director
concerned or their duly authorized representatives, may examine personally the complainants and/or
their witnesses in the form of searching questions and answers and shall take their testimony under
oath. The testimony of the complainants and/or witnesses shall be reduced in writing and signed by
them and attested by an authorized officer.
If based on a surveillance report, or preliminary examination of the complainants, the POEA

Administrator or DOLE Regional Director, or their authorized representative is satisfied that such
danger or exploitation exists, a written order may shall be issued by the POEA Administrator or DOLE
Regional Director, or their authorized representative is satisfied that such danger or exploitation exists,
a written order shall be issued by the POEA Administrator for the closure of the establishment being
used for illegal recruitment activity.
In case of a business establishment whose license or permit to operate a business was issued by the
local government, the Secretary of Labor and Employment, the POEA Administrator or the Regional
Director concerned shall likewise recommend to the granting authority the immediate
cancellation/revocation of the license or permit to operate its business.
Section 12. Implementation of Closure Order. A closure order shall be served upon the offender or the
person in charge of the subject establishment. The closure shall be effected by sealing and padlocking
the establishment and posting of notice of such closure in bold letters at a conspicuous place in the
premises of the establishment. Whenever necessary, the assistance and support of the appropriate law
enforcement agencies may be requested for this purpose.
Section 13. Report on Implementation. A report on the implementation of the closure order executed
under oath, stating the details of the proceedings undertaken shall be submitted to the Director-LRO or
the Regional Director concerned, as the case may be, within two (2) days from the date of
implementation.
Section 14. Institution of Criminal Action Upon Closure Order. The POEA Administrator or the DOLE
Regional Director, or their duly authorized representatives, or any law enforcement agencies or any
aggrieved person may initiate the corresponding criminal action with the appropriate prosecutor's
office.
Section 15. Effect of Closure Order.

All officers and responsible employees of the entity engaged in illegal recruitment activities shall be
ordered included in the List of Persons with Derogatory Record and be disqualified/barred from
participating in the overseas employment program of the government.
Section 16. Who May File a Motion to Reopen the Establishment. The motion to re-open may be filed
only by the following:
(a) The owner of the building or his/her duly authorized representative;
(b) The building administrator or his/her duly authorized representative;
(c) Any other person or entity legitimately operating within the premises closed/padlocked whose
operations/activities are distinct from the recruitment activities of the person/entity subject of the
closure order.
Section 17. Grounds for Reopening the Establishment.
(a) That the office is not the subject of the closure order;
(b) That the contract of lease with the owner of the building or the building administrator has already
been cancelled or terminated. The request to re-open shall be duly supported by an affidavit of
undertaking either of the owner of the building or the building administrator that the same will not be
leased/rented to any other person/entity for recruitment purposes without the necessary license from
the POEA;
(c) That the office is shared by a person/entity not involved in illegal recruitment activities, whether
directly or indirectly; or
(d) Any other analogous ground that the POEA may consider as valid and meritorious.
Section 18. Motion to Lift a Closure Order. A motion to lift a closure order which has already been
implemented may be entertained only when filed with the Licensing and Regulation Office (LRO)
within ten (10) calendar days from the date of implementation. The motion shall be verified and shall
clearly state the grounds upon which it is based, attaching supporting documents. A motion to lift
which does not conform to the requirements herein set forth shall be denied.
Section 19. Who May File Motion to Lift a Closure Order. The verified motion to lift closure order
may be filed only by the person or entity against whom the closure order was issued and implemented
or a duly authorized representative.
Section 20. Grounds for Lifting A Closure Order. Lifting of the closure order may be granted on any of
the following grounds:
(a) The person/entity is later found out or has proven that it is not involved in illegal recruitment
activities, whether directly or indirectly; or
(b) Any other analogous ground that the POEA may consider as valid and meritorious.
Lifting of a closure order is without prejudice to the filing of criminal complaints with the appropriate
office against the person alleged to have conducted illegal recruitment activities.
Section 21. Appeal.
The order of the POEA Administrator denying the motion to lift a closure order and/or motion to re-
open may be appealed to the Secretary of Labor and Employment within ten (10) days from receipt
thereof.
Section 22. Monitoring of Establishments. The POEA shall monitor establishments that are subject of
closure orders.
Where a re-opened office is subsequently confirmed as still being used for illegal recruitment
activities, a new closure order shall be issued which shall not be subject to a motion to lift.
Section 23. Pre-Employment Orientation Seminar (PEOS). The POEA shall strengthen its
comprehensive Pre-Employment Orientation Program through the conduct of seminars that will
discuss topics such as legal modes of hiring for overseas employment, rights, responsibilities and
obligations of migrant workers, health issues, prevention and modus operandi of illegal recruitment
and gender sensitivity.
The POEA shall inform migrant workers not only of their rights as workers but also of their rights as
human beings, instruct and guide the workers how to assert their rights and provide the available
mechanism to redress violation of their rights.
Section 24. Partnership with LGUs, other Government Agencies and NGOs. The POEA shall maintain
and strengthen its partnership with LGUs, other government agencies and NGOs advocating the rights
and welfare of OFWs for the purpose of dissemination of information on all aspects of overseas
employment.
For this purpose, the POEA shall continuously provide the concerned entities with updated lists of
licensed agencies and entities and information materials such as brochures, pamphlets, posters as well
as recent anti-illegal recruitment laws and regulations for distribution to their respective constituents.
RULE VII
MONEY CLAIMS
Section 1. Jurisdiction of Labor Arbiters. Notwithstanding any provision of law to the contrary, the
Labor Arbiters of the NLRC shall have the original and exclusive jurisdiction to hear and decide,
within ninety (90) calendar days after the filing of the compliant, the claims arising out of an
employer-employee relationship or by virtue of any law or contract involving Filipino workers for
overseas deployment including claims for actual, moral, exemplary and other forms of damages.
Section 2. Updates in the Global Services Industry.
Consistent with the mandate in the preceding section, the NLRC shall:
a. Endeavor to update and keep abreast with the developments in the global services industry; and
b. Participate in international or local conferences involving migration issues and in relevant overseas
missions.
Section 3. Joint and Several Liability. The liability of the principal/employer and the
recruitment/placement agency on any and all claims under this Rule shall be joint and several. This
liability shall be incorporated in the contract for overseas employment and shall be a condition
precedent for its approval. The performance bond to be filed by the recruitment/ placement agency, as
provided by law, shall be answerable for all money claims or damages that may be awarded to the
workers.
If the recruitment/placement agency is a juridical being, the corporate officers and directors and
partners, as the case may be, shall themselves be jointly and severally liable with the corporation or
partnership for the aforesaid claims and damages.
Such liabilities shall continue during the entire period or duration of the employment contract and shall
not be affected by any substitution, amendment or modification of the contract made locally or in a
foreign country.
Section 4. Compromise Agreement. Any compromise, amicable settlement or voluntary agreement on

money claims inclusive of damages under this Rule shall be paid within thirty (30) days from the
approval of the settlement by the appropriate authority, unless a different period is agreed upon by the
parties and approved by the appropriate authority.
Section 5. Effect of Illegal Termination and/or Deduction. In case of termination of overseas
employment without just, valid or authorized cause as defined by law or contract, or any unauthorized
deduction from the migrant worker's salary, the worker shall be entitled to the full reimbursement of
his placement fee with interest of twelve per cent (12%) per annum, plus his salaries for the unexpired
portion of his employment contract or three (3) months for every year of the unexpired term,
whichever is less.
In case of any unauthorized deduction, the worker shall be entitled to the refund of the deductions
made, with interest of twelve per cent (12%) per annum, from the date the deduction was made.
Section 6. Effect of Final and Executory Judgment. In case of final and executory judgment against a
foreign employer/principal, it shall be automatically disqualified, without further proceedings, from
participating in the Philippine Overseas Employment Program and from recruiting and hiring Filipino
workers until and unless it fully satisfies the judgment award.
For this purpose, the NLRC or any party in interest shall furnish the POEA a certified true copy of the
sheriff's return indicating the failure to fully satisfy a final and executory judgment against a foreign
employer/principal.
Should the disqualified foreign employer/principal fully satisfy the judgment award, the NLRC or any
party in interest shall furnish the POEA a certified true copy of the sheriff's return indicating full
compliance with the judgment which may be a basis to lift the disqualification.
Section 7. Voluntary Arbitration. For OFWs with collective bargaining agreements, the case shall be
submitted for voluntary arbitration in accordance with Articles 261 and 262 of the Labor Code.
RULE VIII
ROLE OF DFA
Section 1. Assistance to Nationals as the Third Pillar of Philippine Foreign Policy.
Assistance to nationals is the third pillar of the Philippine foreign policy. Pursuant to the Philippine
Foreign Service Act of 1991 and the Migrant Workers and Overseas Filipino Act, as amended, the
DFA is mandated to formulate and implement policies and programs to promote and protect the rights
and welfare of Filipino migrants, and provide consular and legal assistance to overseas Filipinos in
distress.
Section 2. International, Regional and Bilateral Initiatives to Protect Overseas Filipino Workers. The
DFA shall continue to advocate in international and regional for the protection and promotion of the
rights and welfare of overseas Filipino workers by taking the lead and/or actively participating in the
crafting of international and regional conventions/declarations/ agreements that protect their rights and
promote their welfare.
The DFA, through its foreign service posts, shall endeavor to improve the conditions of overseas
Filipino workers. It shall establish harmonious working relations with the receiving countries through,
among others, the forging of bilateral agreements/arrangements or other forms of cooperation.
Section 3. One Country-Team Approach. Under the country-team approach, all officers,
representatives and personnel posted abroad, regardless of their mother agencies shall, on a per country
basis, act as one country-team with a mission under the leadership of the ambassador.
In receiving countries where there are Philippine consulates, such consulates shall also constitute part
of the country-team under the leadership of the ambassador.
In the implementation of the country-team approach, visiting Philippine delegations shall be provided
full support and information.
Section 4. Negotiations of International Agreements. The DFA shall be the lead agency that shall
advise and assist the President in planning, organizing, directing, coordinating and evaluating the total
national effort in the field of foreign relations pursuant to the Revised Administrative Code (Executive
Order No. 292).
RULE IX
LEGAL ASSISTANT FOR MIGRANT WORKERS AFFAIRS
Section 1. Function and Responsibilities. The Legal Assistant for Migrant Affairs under the
Department of Foreign Affairs shall be primarily responsible for the provision and over-all
coordination of all legal assistance services to Filipino Migrant Workers as well as Overseas Filipinos
in distress. In the exercise of these primary responsibilities, he/she shall discharge the following duties
and functions:
(a) Issue the guidelines, procedures and criteria for the provision of legal assistance services to Filipino
Migrant Workers;
(b) Establish close linkages with the DOLE, POEA, OWWA and other government agencies
concerned, as well as with non-governmental organizations assisting migrant workers, to ensure
effective coordination in providing legal assistance to migrant workers;
(c) When necessary, tap the assistance of the Integrated Bar of the Philippines (IBP), other bar
associations, legal experts on labor, migration and human rights laws, reputable law firms, and other
civil society organizations, to complement government services and resources to provide legal
assistance to migrant workers;
(d) Administer the Legal Assistance Fund for Migrant Workers and to authorize its disbursement,
subject to approved guidelines and procedures, governing its use, disposition and disbursement;
(e)Keep and maintain an information system for migration as provided in Section 20 of the Act;
(f) Prepare its budget for inclusion in the Department of foreign Affair's budget in the annual General
Appropriations Act; and
(g) Perform such other functions and undertake other responsibilities as may be useful, necessary or
incidental to the performance of his/her mandate.
Section 2. Qualifications and Authority. The Legal Assistant for Migrant Workers Affairs shall be
headed by a lawyer of proven competence in the field of law with at least ten (10) years experience as
a legal practitioner and who must not have been a candidate to an elective office in the last local or
national elections. He/she shall be appointed by the President of the Philippines. He/she shall have the
title, rank, salary, and privileges of an Undersecretary of Foreign Affairs, and shall head the Office of
the Undersecretary for Migrant Workers' Affairs (OUMWA) of the Department of Foreign Affairs.
He/she shall have authority to hire private lawyers, domestic or foreign, in order to assist him/her in
the effective discharge of the functions of his/her Office.
Section 3. Legal Assistance Fund. The Legal Assistance Fund created under the Act shall be used
exclusively to provide legal services for Migrant Workers and Overseas Filipinos in distress in
accordance with approved guidelines, criteria and procedures of the DFA.
It shall be used inter alia for the following specific purposes:
(a) In the absence of a counsel de oficio or court-appointed lawyer, payment of attorney's fees to
foreign lawyers for their services in representing migrant workers facing criminal and labor cases
abroad, or in filing cases against erring or abusive employers abroad, provided, that no amount shall be
disbursed for the appeal of cases except when the penalty meted is life imprisonment or death or under
meritorious circumstances as determined by the Undersecretary for Migrant Workers Affairs;
(b) Bail bonds to secure the temporary release of workers under detention upon the recommendation of
the lawyer and the foreign service post concerned; and
(c) Court fees, charges and other reasonable litigation expenses when so recommended by their
lawyers.
RULE X
ROLE OF DOLE
Section 1. On-Site Protection. The DOLE shall see to it that labor and social welfare laws in the
foreign countries are fairly applied to migrant workers and whenever applicable, to other overseas
Filipinos, including the grant of legal assistance and the referral to proper medical centers or hospitals.
Section 2. POLO Functions. The DOLE overseas operating arm shall be the POLO, which shall have
the following functions and responsibilities:
a. Ensure the promotion and protection of the welfare and interests of OFWs and assist them in all
problems arising out of employer-employee relationships;
b. Coordinate the DOLE's employment promotion mandate, consistent with the principles of the Act;
c. Verify employment contracts and other employment-related documents;
d. Monitor and report to the Secretary of Labor and Employment on situations and policy
developments in the receiving country that may affect OFWs in particular and Philippine labor
policies, in general;
e. Supervise and coordinate the operations of the Migrant Workers and Other Overseas Filipinos
Resource Center; and
f. Such other functions and responsibilities as may be assigned by the Secretary of Labor and
Employment.
A. POEA
Section 3. Regulation of Private Sector. The POEA shall regulate private sector participation in the
recruitment and overseas placement of workers by setting up a licensing and registration system. It
shall also formulate and implement, in coordination with appropriate entities concerned, when
necessary, a system for promoting and monitoring the overseas employment of Filipino workers taking
into consideration their welfare and the domestic manpower requirements. It shall be responsible for
the regulation and management of overseas employment from the pre-employment stage, securing the
best possible employment terms and conditions for overseas Filipino workers, and taking into
consideration the needs of vulnerable sectors and the peculiarities of sea-based and land-based
workers.
Section 4. Hiring through the POEA. The Administration shall recruit and place workers primarily on
government-to-government arrangements. In the recruitment and placement to service the
requirements for trained and competent Filipino workers of foreign governments and their
instrumentalities, and such other employers as public interests may require, the Administration shall
deploy only to countries where the Philippines has concluded bilateral agreements or arrangements:
Provided that such countries shall guarantee to protect the rights of Filipino migrant workers; and
provided further that such countries shall observe and/or comply with the international laws and
standards for migrant workers.
Section 5. Foreign Employers Guarantee Fund. For migrant workers recruited by the POEA on a
government to government arrangement, the POEA shall, through relevant guidelines, establish and
administer a Foreign Employers Guarantee Fund which shall be answerable for the workers' monetary
claims arising from breach of contractual obligations.
Section 6. Jurisdiction of the POEA. The POEA shall exercise original and exclusive jurisdiction to
hear and decide:
(a) all cases which are administrative in character, involving or arising out of violations of Rules and
Regulations relating to licensing and registration, including refund of fees collected from the workers
and violation of the conditions for issuance of license to recruit workers; (Based on jurisdictional areas
under the POEA Charter or E.O. 247, as amended.)
(b) disciplinary action cases and other special cases, which are administrative in character, involving
employers, principals, contracting partners and OFWs processed by the POEA.
Section 7. Venue.
Pre-employment/recruitment violation cases may be filed with the POEA Adjudication Office or at any
DOLE/POEA regional office of the place where the complainant applied or was recruited, at the option
of the complainant. The office where the complaint was first filed shall take cognizance of the case.
Disciplinary action cases and other special cases shall be filed with the POEA Adjudication Office.
Section 8. Who may file. Any aggrieved person may file a complaint in writing and under oath for
violation of the Labor Code and the POEA Rules and Regulations and other issuances.
For this purpose, an aggrieved person is one who is prejudiced by the commission of a violation or any
of the grounds for disciplinary actions provided in the POEA Rules and Regulations.
However, the Administration, on its own initiative, may conduct proceedings based on reports of
violations or any of the grounds for disciplinary actions provided in the POEA Rules and Regulations
and other issuances on overseas employment, subject to preliminary evaluation.
Section 9. Prescriptive Period. All pre-employment/recruitment violation and disciplinary action cases
shall be barred if not commenced or filed with the Administration within three (3) years after such
cause of action accrued.
Section 10. Imposition of Administrative Penalty. For pre-employment/recruitment violation cases, the
Administrator, in the exercise of adjudicatory power, may impose the penalty of reprimand,
suspension, or cancellation or revocation of license.
Where the penalty of suspension is imposed, the Administrator may impose disqualification from the
overseas employment program. For disciplinary action cases against workers, the Administrator may
likewise impose suspension or disqualification.
Section 11. Appeal.
The decision of the Administration may be appealed to the Secretary of Labor and Employment within
fifteen (15) days from the receipt of the Decision.
B. OWWA
Section 12. Programs and Services. The OWWA shall continue to formulate and implement welfare
programs for overseas Filipino workers and their families in all phases of overseas employment. It
shall also ensure the awareness by the OFWs and their families of these programs and other related
government programs.
Section 13. Assistance in the Enforcement of Contractual Obligations. In the implementation of

OWWA welfare programs and services and in line with the One-Country Team Approach for on-site
services, the Welfare Officer or in his/her absence, the coordinating officer shall:
1. Provide the Filipino migrant worker and his/her family all the assistance they may need in the
enforcement of contractual obligations by agencies or entities and/or by their principals; and
2. Make representation and may call on the agencies or entities concerned to conferences or
conciliation meetings for the purpose of settling the complaints or problems brought to his/her
attention. If there is no final settlement at the jobsite and the worker is repatriated back to the
Philippines, conciliation may continue at the OWWA Central Office, or in any OWWA Regional
Welfare Office.
C. NRCO
Section 14. Establishment of the National Reintegration Center for OFWs. The NRCO is hereby
created in the Department of Labor and Employment for returning Filipino migrant workers, which
shall provide the mechanism of their reintegration into Philippine society, serve as a promotion house
for their local employment, and tap their skills and potentials for national development.
The NRCO shall, in coordination with appropriate government and non-government agencies, serve as
a One-Stop Center that shall address the multi-faceted needs of OFW-returnees and their families.
For this purpose, TESDA, the Technology Resource Center (TRC), and other government agencies
involved in training and livelihood development shall give priority to household service workers and
entertainers.
The NRCO shall be attached to the Office of the Administrator of OWWA for supervision and policy
guidance.
Section 15. Functions of the NRCO.
The NRCO shall undertake the following:
(a) Develop and support programs and projects for livelihood, entrepreneurship, savings, investments
and financial literacy for returning Filipino migrant workers and their families in coordination with
relevant stakeholders, service providers and international organizations;
(b) Coordinate with appropriate stakeholders, service providers and relevant international
organizations for the promotion, development and the full utilization of overseas Filipino worker
returnees and their potentials;
(c) Institute, in cooperation with other government agencies concerned, a computer-based information
system on returning Filipino migrant workers which shall be accessible to all local recruitment
agencies and employers, both public and private;
(d) Provide a periodic study and assessment of job opportunities for returning Filipino migrant
workers;
(e) Develop and implement other appropriate programs to promote the welfare of returning Filipino
migrant workers;
(f) Maintain an internet-based communication system for on-line registration of returning OFWs and
interaction with clients, and maintain and upgrade computer-based service capabilities of the NRCO;
(g) Develop capacity-building programs for returning overseas Filipino workers and their families,
implementers, service providers, and stakeholders;
(h) Conduct research for policy recommendations and program development; and
(i) Undertake other programs and activities as may be determined by the Secretary of Labor and
Employment.
Section 16. Formulation of Program. The DOLE, OWWA, TESDA, and POEA shall, within sixty (60)
days from effectivity of these Rules, formulate a program that would motivate migrant workers to plan
for productive options such as entry into highly technical jobs or undertakings, livelihood and
entrepreneurial development, better wage employment, and investment of savings.
D. Migrant Workers and Other Overseas Filipinos Resource Center

Section 17. Establishment of Migrant Workers and other Overseas Filipino Resource Center.
A Migrant Workers and other Overseas Filipinos Resource Center shall be established in countries
where there are large concentration of OFWs, as determined by the Secretary of Labor and
Employment. It shall be established within the premises of the Philippine Embassy or the Consulate
and be under the administrative jurisdiction of the Philippine Embassy.1avvphi1
When the Migrant Workers and other Overseas Filipinos Resource Center is established outside the
premises of the Embassy or Consulate, the Department of Foreign Affairs shall exert its best effort to
secure appropriate recognition from the receiving government in accordance with applicable laws and
practices.
Section 18. Services. The Migrant Workers and other Overseas Filipinos Resource Center shall
provide the following services:
a. Counseling and legal services;
b. Welfare assistance including the procurement of medical and hospitalization services;
c. Information, advisory programs to promote social integration such as post-arrival orientation,

settlement and community networking services and activities for social interaction;
d. Registration of irregular/undocumented workers to bring them within the purview of the Act;
e. Implementation of DOLE and OWWA Programs;
f. Human resource development, such as training and skills upgrading;
g. Gender-sensitive programs and activities to assist particular needs of migrant workers;
h. Orientation program for returning workers and other migrants;
i. Monitoring of the daily situation, circumstances and activities affecting migrant workers and other
overseas Filipinos;
j. Ensuring that labor and social welfare laws in the receiving country are fairly applied to migrant
workers and other overseas Filipinos; and
k. Conciliation of disputes arising from employer-employee relationship, in accordance with this Rule.
Section 19. Personnel. Each Migrant Workers and Other Overseas Filipinos Resource Center shall be
staffed by Foreign Service personnel, a Labor Attach and other service attachs or officers who
represent Philippine government agencies abroad.
The following personnel may be assigned to the Center:
a. Psychologists, Social Workers, and a Shari'a or Human Rights Lawyer, in highly problematic
countries as categorized by the DFA and DOLE and where there is a concentration of Filipino migrant
workers;
b. Individual volunteers and representatives from bona fide non-government organizations from the
receiving countries, if available and necessary as determined by the Labor Attach in consultation with
the Chief of Mission;
c. Public Relations Officer or Case Officer conversant, orally and in writing, with the local language,
laws, customs and practices; and/or
d. Legal Officers (POEA/NLRC/DOLE) and such other professionals deemed necessary by the
Secretary of Labor and Employment.
Section 20. Administration of the Center. The POLO through the Labor Attach shall supervise and
coordinate the operations of the Migrant Workers and other Overseas Filipinos Resource Center and
shall keep the Chief of Mission informed and updated on all matters affecting it at least quarterly
through a written report addressed to the Chief of Mission.
Section 21. Round-the Clock Operations. The Migrant Workers and other Overseas Filipino Resource
Center shall operate on a 24-hour basis including Saturdays, Sundays and holidays. A counterpart 24-
hour Information and Assistance Center to ensure a continuous network and coordinative mechanism
shall be established at the DFA and the DOLE/OWWA.
Section 22. Budget. The establishment, yearly maintenance and operating costs of the Migrant
Workers and other Overseas Filipinos Resource Centers, including the costs of services and programs
not specially funded under the Act, shall be sourced from the General Appropriations Act (GAA) and
shall be included in the annual budget of the DOLE.
However, the salaries and allowances of overseas personnel shall be sourced from the respective
agencies' budgets.
RULE XI
ROLE OF DOH
Section 1. Regulation of Medical Clinics. The Department of Health (DOH) shall regulate the activities
and operations of all clinics which conduct medical, physical, optical, dental, psychological and other
similar examinations, hereinafter referred to as health examinations, on Filipino migrant workers as
requirement for their overseas employment. Pre-Employment Medical Examinations (PEME) for
overseas work applicants shall be performed only in DOH-accredited medical clinics and health
facilities utilizing the standards set forth by DOH. Pursuant to this, the DOH shall ensure that:
(a) The fees for the health examinations are regulated, regularly monitored and duly published to
ensure that the said fees are reasonable and not exorbitant. The DOH shall set a minimum and
maximum range of fees for the different examinations to be conducted, based on a thorough and
periodic review of the cost of health examinations and after consultation with concerned stakeholders.
The applicant-worker shall pay directly to the DOH-accredited medical clinics or health facilities
where the PEME is to be conducted.
(b) The Filipino migrant workers shall only be required to undergo health examinations when there is
reasonable certainly by the hiring recruitment/manning agency pursuant to POEA Rules and
Regulations that he/she will be hired and deployed to the jobsite and only those health examinations
which are absolutely necessary for the type of job applied for those specifically required by the foreign
employer shall be conducted;
(c) No groups of medical clinics shall have a monopoly of exclusively conducting health examinations
on migrant workers for certain receiving countries;
(d) Every Filipino migrant worker shall have the freedom to choose any of the DOH-accredited or
DOH-operated clinics that will conduct his/her health examinations and that his/her rights as a patient
are respected. The decking practice, which requires overseas Filipino workers to go first to an office
for registration and then farmed out to a medical clinic located elsewhere, shall not be allowed;
(e) Within a period of three (3) years from the effectivity of the Act, all DOH regional and/or
provincial hospitals under local government units shall establish and operate clinics that can serve the
health examination requirements of Filipino migrant workers to provide them easy access to such
clinics all over the country and lessen their transportation and lodging expenses; and
(f) All DOH-accredited medical clinics, including the DOH-operated clinics, conducting health
examinations for Filipino migrant workers shall observe the same standard operating procedures and
shall comply with internationally-accepted standards in their operations to conform with the
requirements of receiving countries or of foreign employers/principals.
Section 2. Temporary Disqualification of Foreign Employers. Any foreign employer who does not
honor the results of valid health examinations conducted by a DOH-accredited or DOH-operated clinic
shall be temporarily disqualified from participating in the overseas employment program, pursuant to
POEA Rules and Regulations. The temporary disqualification of the employer may be lifted only upon
the latter's unqualified acceptance of the result of the examination.
Section 3. Liability of Medical Clinic or Health Facility. In case an OFW is found to be not medically
fit within fifteen (15) days upon his/her arrival in the country of destination, the medical clinic or
health facility that conducted the health examination/s of such OFW shall pay for his/her repatriation
back to the Philippines and the cost of deployment of such worker.
Any DOH-accredited clinic which violates any provisions of this section shall, in addition to any other
liability it may have incurred, suffer the penalty of revocation of its DOH-accredited if after
investigation, the medical reason for repatriation could have been detected at the time of examination
using the DOH PEME package as required by the employer/principal or the receiving country.
Section 4. Liability of Government Personnel for Nonfeasance and Malfeasance of their Duties under
the Act.
Any government official or employee who violates any provision of this Rule shall be removed or
dismissed from service with disqualification to hold any appointive public office for five (5) years.
Such penalty is without prejudice to any other liability which he/she may have incurred under existing
laws, rules or regulations.
Section 5. Issuance of Guidelines.
Within sixty (60) days from effectivity of these Rules, the DOH shall issue the pertinent guidelines to
implement the provisions of this Rule.
RULE XII
ROLE OF LGUs
Section 1. Role in Anti-Illegal Recruitment and the Overseas Employment Program. In the fight
against illegal recruitment, the local government units (LGUs) and the Department of the Interior and
Local Government (DILG), in partnership with the POEA, other concerned government agencies, and
non-government organizations advocating the rights and welfare of OFWs, shall take a proactive
stance by being primarily responsible for the dissemination of information to their constituents on all
aspects of overseas employment. To carry out this task, the following shall be undertaken by the
LGUs:
a. Launch an aggressive campaign against illegal recruitment. They shall provide legal assistance to
victims of illegal recruitment and, when necessary, coordinate with appropriate government agencies
regarding the arrest and/or prosecution of illegal recruiters. They shall report any illegal recruitment
activity to the POEA for appropriate action.
b. Provide a venue for the POEA, other government agencies, NGOs, and trained LGU personnel to
conduct Pre-Employment Orientation Seminars (PEOS) to their constituents on a regular basis.
c. Establish OFW help desks or kiosks in their localities with the objective of providing current
information to their constituents on all the processes and aspects of overseas employment. Such desks
or kiosks shall, as far as practicable, be fully computerized and shall be linked to the database of all
concerned government agencies, particularly the POEA for its updated lists of overseas job orders and
licensed agencies in good standing.
d. Establish and maintain a database pertaining to a master list of OFWs residing in their respective
localities, classified according to occupation, job category, civil status, gender, by country or state of
destination, including visa classification, name, address, and contact number of the employer.
RULE XIII
REPATRIATION OF WORKERS
Section 1. Primary Responsibility for Repatriation.
The repatriation of the worker or his/her remains, and the transport of his/her personal effects shall be
the primary responsibility of the principal, employer or agency that recruited or deployed him/her
abroad. All costs attendant thereto shall be borne by the principal, employer or the agency concerned.
Section 2. Obligation to Advance Repatriation Costs.
Notwithstanding the provisions of Section 37-A of the Act, the primary responsibility to repatriate
entails the obligation on the part of the principal or agency to advance the repatriation and other
attendant costs, including plane fare, deployment cost of the principal, and immigration fines and
penalties, to immediately repatriate the worker should the need for it arise, without a prior
determination of the cause of the termination of the worker's employment. However, after the worker
has returned to the country, the principal or agency may recover the cost of repatriation from the
worker if the termination of employment was due solely to his/her fault.
In countries where there is a need to secure an exit visa for the worker's repatriation, the principal or
employer shall be primarily responsible for securing the visa at no cost to the worker. The agency shall
coordinate with the principal or employer in securing the visa.
Every contract for overseas employment shall provide for the primary responsibility of the principal or
employer and agency to advance the cost of plane fare, and the obligation of the worker to refund the
cost thereof in case his/her fault is determined by the Labor Arbiter.
Section 3 Repatriation Procedure.
When a need for repatriation arises and the foreign employer fails to provide for its cost, the POLO or
responsible personnel on-site shall simultaneously notify OWWA and the POEA of such need. The
POEA shall issue a notice requiring the agency concerned to provide, within 48 hours from such
notice, the plane ticket or the prepaid ticket advice (PTA) to the POLO or Philippine Embassy. The
agency shall notify the POEA of such compliance, which shall then inform OWWA of the action of the
agency.
In case there is a need to secure an exit visa for the repatriation of the worker, the employer or
principal shall have fifteen (15) days from notice to secure such an exit visa. Moreover, any agency
involved in the worker's recruitment, processing, and/or deployment shall also coordinate with the
principal or employer in securing the visa.
Section 4. Action on Non-Compliance.
If the employment agency fails to provide the ticket or PTA within 48 hours from receipt of the notice,
the POEA shall suspend the documentary processing of the agency or impose such sanctions as it may
deem necessary. Upon notice from the POEA, OWWA shall advance the costs of repatriation with
recourse to the agency or principal. The administrative sanction shall not be lifted until the agency
reimburses the OWWA of the cost of repatriation with legal interest.
If the principal or employer and/or agency fail to secure the exit visa within a period of fifteen (15)
days from receipt of the POEA notice, the POEA shall suspend the employer or principal from
participating in the overseas employment program, and may impose suspension of documentary
processing on the agency, if warranted.
Section 5. Emergency Repatriation.
The OWWA, in coordination with DFA, and in appropriate situations, with international agencies,
shall undertake the repatriation of workers in cases of war, epidemic, disasters or calamities, natural or
man-made, and other similar events without prejudice to reimbursement by the responsible principal or
agency within sixty (60) days from notice. In such case, the POEA shall simultaneously identify and
give notice to the agencies concerned.
Section 6. Mandatory Repatriation of Underage Migrant Workers. Upon discovery or upon being
informed of the presence of migrant workers whose actual ages fall below the minimum age
requirement for overseas deployment, the responsible officers in the Foreign Service shall without
delay repatriate said workers and advise the DFA through the fastest means of communication
available of such discovery and other relevant information.
In addition to requiring the recruitment/manning agency to pay or reimburse the costs of repatriation,
the POEA shall cancel the license of the recruitment/manning agency that deployed an underage
migrant worker after notice and hearing and shall impose a fine of not less than five hundred thousand
pesos (Php500.000.00) but not more than One million pesos (Php1,000,000.00). The POEA shall also
order the recruitment/manning agency to refund all fees pertinent to the processing of papers or
documents in the deployment, to the underage migrant worker or to his parents or guardian in a
summary proceeding conducted.
The refund shall be independent of and in addition to the indemnification for the damages sustained by
the underage migrant worker. The refund shall be paid within thirty (30) days from the date the POEA
is officially informed of the mandatory repatriation as provided for in the Act.
Section 7. Other Cases of Repatriation.
In all cases where the principal or agency of the worker cannot be identified, cannot be located or had
ceased operations, and the worker is in need and without means, the OWWA personnel at the jobsite,
in coordination with the DFA, shall cause the repatriation in appropriate cases. All costs attendant to
repatriation borne by the OWWA may be charged to the Emergency Repatriation Fund provided in the
Act, without prejudice to the OWWA requiring the agency/employer/insurer or the worker to
reimburse the cost of repatriation.
Section 8. Emergency Repatriation Fund.
When repatriation becomes immediate and necessary, the OWWA shall advance the needed costs from
the Emergency Repatriation Fund without prejudice to reimbursement by the deploying agency and/or
principal, or the worker in appropriate cases. Simultaneously, the POEA shall ask the concerned
agency to work towards reimbursement of costs advanced by the OWWA. In cases where the cost of
repatriation shall exceed One Hundred Million (P100,000,000.00) Pesos, the OWWA shall make
representation with the Office of the President for immediate funding in excess of said amount.
Section 9. Prohibition on Bonds and Deposits.
In no case shall a private recruitment/manning agency require any bond or cash deposit from the
worker to guarantee performance under the contract or his/her repatriation.
RULE XIV
SHARED GOVERNMENT INFORMATION SYSTEM FOR MIGRATION
Section 1. Composition. An Inter-Agency Committee shall be established to implement a shared

government information system for migration. The Inter-Agency Committee shall be composed of the
following agencies:
a) Department of Foreign Affairs:
b) Department of Labor and Employment and concerned attached agencies;
c) Department of Justice;
d) Department of the Interior and Local Government;
e) Department of Health and concerned attached agencies;
f) Department of Social Welfare and Development;

g) Department of Tourism;
h) Insurance Commission;
i) Commission on Filipinos Overseas;
j) Bureau of Immigration;
k) National Bureau of Investigation;
l) National Telecommunications Commission;
m) Commission on Information and Communications Technology;
n) National Computer Center;
o) National Statistical and Coordination Board;
p) National Statistics Office;
q) Home Development Mutual Fund; and
r) Other government agencies concerned with overseas employment.
Section 2. Availability, Accessibility and Linkaging of Computer Systems. Initially, the Inter-Agency
Committee shall make available to itself the information contained in existing data bases/files of its
member agencies. The second phase shall involve linkaging of computer facilities systems in order to
allow the free-flow data exchanges and sharing among concerned agencies.
Section 3. Chair and Technical Assistance. The Inter-Agency Committee shall be co-chaired by the
Department of Foreign Affairs and the Department of Labor and Employment. The National Computer
Center shall provide the necessary technical assistance and shall set the appropriate information and
communications technology standards to facilitate the sharing of information among the member
agencies.
Section 4. Declassification and Sharing of Existing Information. The Inter-Agency Committee shall
convene to identify existing databases, which shall be declassified and shared among member
agencies. These shared databases shall initially include, but not be limited to, the following
information:
a) Master lists of Filipino migrant workers/overseas Filipinos classified according to occupation/job

category, civil status, by country/state of destination including visa classification;
b) Inventory of pending legal cases involving Filipino migrant workers and other Filipino migrant
workers and other Filipino nationals, including those serving prison terms;
c) Master list of departing/arriving Filipinos;
d) Statistical profile on Filipino migrant workers/overseas Filipinos/ tourists;
e) Blacklisted foreigners/undesirable aliens;
f) Basic data on legal systems, immigration policies, marriage laws and civil and criminal codes in
receiving countries particularly those with large numbers of Filipinos;
g) List of labor and other human rights instruments where receiving countries are signatories;
h) A tracking system of past and present gender desegregated cases involving male and female migrant
workers, including minors; and
i) List of overseas posts, which may render assistance to overseas Filipinos in general, and migrant
workers, in particular.
j) List of licensed recruiters and recruitment agencies;
k) List of accredited foreign employers;
l) List of recruiters and recruitment agencies with decided/pending criminal/civil/administrative cases,

and their dispositions; and
m) Such other information as may be deemed necessary by the Inter-Agency Committee.
The Inter-Agency Committee shall establish policies, guidelines, and procedures in implementing this
Rule, including declassification of information.
Section 5. Confidentiality of Information. Information and data acquired through this shared
information system shall be treated as confidential and shall only be used for official and lawful
purposes, related to the usual functions of the Inter-Agency Committee members, and for purposes
envisioned by the Act.
Section 6. Regular Meetings. The Inter-Agency Committee shall meet regularly to ensure the
immediate and full implementation of Section 20 of the Act and shall explore the possibility of setting
up a central storage facility for the data on migration. The progress of the implementation shall be
included in the report of the DFA and the DOLE under Section 33 of the Act.
The Inter-Agency Committee shall convene thirty (30) days from effectivity of these Rules to prioritize
the discussion of the following, inter alia: data to be shared, frequency of reporting, and timeless and
availability of data.
Section 7. Secretariat.
A secretariat, which shall provide administrative and support services to the Inter-Agency Committee
shall be based in the DFA.
Section 8. Funds. The Philippine Charity Sweepstakes Office shall allocate an initial amount of P10
Million to carry out the provisions of this Rule. Thereafter, the actual budget of the Inter-Agency
Committee shall be drawn from the General Appropriations Act in accordance with Section 26 of
Republic Act No. 10022.
The E-Government Fund may be tapped for purposes of fund sourcing by the Inter-Agency
Committee.
RULE XV
MIGRANT WORKERS LOAN GUARANTEE FUND
Section 1. Definitions.
(a) Pre-Departure Loans - refer to loans granted to departing migrant workers covered by new contracts
to satisfy their pre-departure requirements such as payments for placement/processing fees, airplane
fare, subsistence allowance, cost of clothing and pocket money.
(b) Family Assistance Loans - refer to loans granted to currently employed migrant workers or their
eligible dependents/families in the Philippines to tide them over during emergency situations.
(c) Guarantee Agreement - refers to a contract between the participating financial institution and
OWWA whereby the latter pledges to pay a loan obtained by a migrant worker from the former in case
the worker defaults.
(d) GFIs - refer to government financial institutions.

Section 2. Loan Guarantee Fund.
The Migrant Workers Loan Guarantee Fund is hereby established:
(a) to prevent any recruiter from taking advantage of workers seeking employment abroad by
expanding the grant of Pre-Departure and Family Assistance Loans to covered migrant workers;
(b) to establish and operate a guarantee system in order to provide guarantee cover on the pre-departure
and family assistance loans of migrant workers who lack or have insufficient collateral or securities;
and
(c) to ensure the participation of GFIs in extending loan assistance to needy migrant workers who are
to be engaged or is engaged for a remunerated activity abroad.
Section 3. Coverage and Scope.
All departing migrant workers who need financial assistance to pay or satisfy their pre-departure
expenses may avail of the Pre-Departure Loans.
Currently employed migrant workers or their eligible dependents who need emergency financing
assistance may avail of the Family Assistance Loan.
Section 4. Administration of the Fund.
Pursuant to Sec. 21 of the Act, the amount of One Hundred Million pesos (P100,000,000.00) from the
Capital Funds of OWWA shall constitute the Migrant Workers Loan Guarantee Fund. The Fund,
which shall be administered by the OWWA, shall be used exclusively to guarantee the repayment of
Pre-Departure and Family Assistance Loans granted by participating GFIs.
All existing revolving funds earmarked for the Pre-Departure and Family Assistance Loans shall revert
back to the OWWA Capital Fund.
Section 5. Financing Scheme.
The OWWA shall initiate arrangements with GFIs to implement mutually agreed financing schemes,
that will expand the Pre-Departure and Family Assistance Loans.
Section 6. Guarantee Agreement.
No loan shall be considered covered by a guarantee unless a Guarantee Agreement has been prepared
and approved by both the participating financial institution and the OWWA.
RULE XVI
COMPULSORY INSURANCE COVERAGE
FOR AGENCY-HIRED WORKERS
Section 1. Migrant Workers Covered. In addition to the performance bond to be filed by the
recruitment/manning agency under Section 10 of the Act, each migrant worker deployed by a
recruitment/manning agency shall be covered by a compulsory insurance policy which shall be secured
at no cost to the said worker.
Section 2. Policy Coverage.
Such insurance policy shall be effective for the duration of the migrant worker's employment contract
and shall cover, at the minimum:
(a) Accidental death, with at least Fifteen Thousand United States Dollars (US$ 15,000.00) survivor's
benefit payable to the migrant worker's beneficiaries;
(b) Natural death, with at least Ten Thousand United States Dollars (US$ 10,000.00) survivor's benefit
payable to the migrant worker's beneficiaries;
(c) Permanent total disablement, with at least Seven Thousand Five Hundred United States Dollars
(US$7,500) disability benefit payable to the migrant worker. The following disabilities shall be
deemed permanent: total, complete loss of sight of both eyes; loss of two limbs at or above the ankles
or wrists; permanent complete paralysis of two limbs; brain injury resulting to incurable imbecility or
insanity;
(d) Repatriation cost of the worker when his/her employment is terminated by the employer without
any valid cause, or by the employee with just cause, including the transport of his/her personal
belongings. In case of death, the insurance provider shall arrange and pay for the repatriation or return
of the worker's remains. The insurance provider shall also render any assistance necessary in the
transport, including but not limited to, locating a local and licensed funeral home, mortuary or direct
disposition facility to prepare the body for transport, completing all documentation, obtaining legal
clearances, procuring consular services, providing death certificates, purchasing the minimally
necessary casket or air transport container, as well as transporting the remains including retrieval from
site of death and delivery to the receiving funeral home. This provision shall be without prejudice to
the provisions of Rule XIII of these Rules and Regulations.
(e) Subsistence allowance benefit, with at least One Hundred United States Dollars (US$100) per
month for a maximum of six (6) months for a migrant worker who is involved in a case or litigation for
the protection of his/her rights in the receiving country.
(f) Money claims arising from employer's liability which may be awarded or given to the worker in a
judgment or settlement of his/her case in the NLRC. The insurance coverage for money claims shall be
equivalent to at least three (3) months salaries for every year of the migrant worker's employment
contract;
(g) Compassionate visit. When a migrant worker is hospitalized and has been confined for at least
seven (7) consecutive days, he shall be entitled to a compassionate visit by one (1) family member or a
requested individual. The insurance company shall pay for the transportation cost of the family
member or requested individual to the major airport closest to the place of hospitalization of the
worker. It is, however, the responsibility of the family member or requested individual to meet all visa
and travel document requirements;
(h) Medical evacuation. When an adequate medical facility is not available proximate to the migrant
worker, as determined by the insurance company's physician and a consulting physician, evacuation
under appropriate medical supervision by the mode of transport necessary shall be undertaken by the
insurance provider; and
(i) Medical repatriation. When medically necessary as determined by the attending physician,
repatriation under medical supervision to the migrant worker's residence shall be undertaken by the
insurance provider at such time that the migrant worker is medically cleared for travel by commercial
carrier. If the period to receive medical clearance to travel exceeds fourteen (14) days from the date of
discharge from the hospital, an alternative appropriate mode of transportation, such as air ambulance,
may be arranged. Medical and non-medical escorts may be provided when necessary. This provision
shall be without prejudice to the provisions of Rule XIII of these Rules and Regulations.
Section 3. Duty to Disclose and Assist. It shall be the duty of the recruitment/manning agency, in
collaboration with the insurance provider, to sufficiently explain to the migrant worker, before his/her
departure, and to at least one of his/her beneficiaries the terms and benefits of the insurance coverage,
including the claims procedure.
Also, in filing a claim with the insurance provider, it shall be the duty of the recruitment/manning
agency to assist the migrant worker and/or the beneficiary and to ensure that all information and
documents in the custody of the agency necessary for the claim must be readily accessible to the
claimant.
Section 4. Qualification of Insurance Companies. Only reputable private insurance companies duly
registered with the (IC), which are in existence and operational for at least five (5) years, with a net
worth of at least Five Hundred Million Pesos (Php500,000,000.00) to be determined by the IC, and
with a current year certificate of authority shall be qualified to provide for the worker's insurance
coverage. Insurance companies who have directors, partners, officers, employees or agents with
relatives, within the fourth civil degree of consanguinity or affinity, who work or have interest in any
of the licensed recruitment/manning agencies or in any of the government agencies involved in the
overseas employment program shall be disqualified from providing this workers' insurance coverage. It
shall be the duty of the said directors, partners, officers, employees or agents to disclose any such
interest to the IC and POEA.
Section 5. Requirement for Issuance of OEC. The recruitment/manning agency shall have the right to
choose from any of the qualified insurance providers the company that will insure the migrant worker
it will deploy. After procuring such insurance policy, the recruitment/manning agency shall provide an
authenticated copy thereof to the migrant worker. It shall then submit the certificate of insurance
coverage of the migrant worker to POEA as a requirement for the issuance of Overseas Employment
Certificate (OEC) to the migrant worker. In the case of seafarers who are insured under policies issued
by foreign insurance companies, the POEA shall accept certificates or other proofs of cover from
recruitment/manning agencies: Provided, that the minimum coverage under sub-paragraphs (a) to (i)
are included therein. For this purpose, foreign insurance companies shall include entities providing
indemnity cover to the vessel.
Section 6. Notice of Claim. Any person having a claim upon the policy issued pursuant to
subparagraphs (a), (b), (c), (d) and (e) of Section 2 of this Rule shall present to the insurance company
concerned a written notice of claim together with pertinent supporting documents. The insurance
company shall forthwith ascertain the truth and extent of the claim and make payment within ten (10)
days from the filing of the notice of claim.
Section 7. Documentary Requirements for Accidental or Natural Death or Disablement Claims. Any
claim arising from accidental death, natural death or permanent total disablement under Section 2 (a),
(b) and (c) shall be paid by the insurance company without any contest and without the necessity of
proving fault or negligence of any kind on the part of the insured migrant worker: Provided the
following documents, duly authenticated by the Philippine foreign posts, shall be sufficient evidence to
substantiate the claim:
(1) Death Certificate - in case of natural or accidental death;
(2) Police or Accident Report - in case of accidental death; and
(3) Medical Certificate - in case of permanent disablement.
In case of a seafarer, the amounts provided in Section 2 (a), (b), or (c), as the case may be shall, within
ten (10) days from submission of the above-stated documents, be paid by the foreign insurance
company through its Philippine representative to the seafarer/beneficiary without any contest and
without any necessity of proving fault or negligence on the part of the seafarer. Such amount received
by the seafarer/beneficiary may be entitled to under the provisions of the POEA-Standard Employment
Contract or collective bargaining agreement (CBA). Any claim in excess of the amount paid pursuant
to the no contest, no fault or negligence provision of this section shall be determined in accordance
with the POEA-SEC or CBA.
Section 8. Documentary Requirement for Repatriation Claim. For repatriation under subparagraph (d)
of Section 2 of this Rule , a certification which states the reason/s for the termination of the migrant
worker's employment and the need for his/her repatriation shall be issued by the Philippine foreign
post or the Philippine Overseas Labor Office (POLO) located in the receiving country. Such
certification shall be solely for the purpose of complying with this section.
Section 9. Documentary Requirements for Subsistence Allowance Benefit Claim. For subsistence
allowance benefit under sub-paragraph (e) of Section 2 of this Rule, the concerned Labor Attach or, in
his absence, the embassy or consular official shall issue a certification which states the name of the
case, the names of the parties and the nature of the cause of action of the migrant worker.
Section 10. Settlement of Money Claims. For the payment of money claims under sub-paragraph (f) of
Section 2 of this Rule, the following rules shall govern:
(1) After a decision has become final and executory or a settlement/compromise agreement has been
reached between the parties at the NLRC, the Labor Arbiter shall, motu proprio or upon motion, and
following the conduct of pre-execution conference, issue a writ of execution mandating the respondent
recruitment/manning agency to pay the amount adjudged or agreed upon within thirty (30) days from
receipt thereof;
(2) The recruitment/manning agency shall then immediately file a notice of claim with its insurance
provider for the amount of liability insured, attaching therewith a copy of the decision or compromise
agreement;
(3) Within ten (10) days from the filing of notice of claim, the insurance company shall make payment
to the recruitment/manning agency the amount adjudged or agreed upon, or the amount of liability
insured, whichever is lower. After receiving the insurance payment, the recruitment/manning agency
shall immediately pay the migrant worker's claim in full, taking into account that in case the amount of
insurance coverage is insufficient to satisfy the amount adjudged or agreed upon, it is liable to pay the
balance thereof;
(4) In case the insurance company fails to make payment within ten (10) days from the filing of the
claim, the recruitment/manning agency shall pay the amount adjudged or agreed upon within the
remaining days of the thirty-day period, as provided in the first sub-paragraph hereof;
(5) If the worker's claim was not settled within the aforesaid thirty-day period, the
recruitment/manning agency's performance bond or escrow deposit shall be forthwith garnished to
satisfy the migrant worker's claim;
(6) The provision of compulsory worker's insurance under this section shall not affect the joint and
several liability of the foreign employer and the recruitment/manning agency under Section 10 of the
Act;
(7) Lawyers for the insurance companies, unless the latter are impleaded, shall be prohibited to appear
before the NLRC in money claims cases under Rule VII.
Section 11. Disputes in the Enforcement of Insurance Claims. Any question or dispute in the
enforcement of any insurance policy issued under this Rule shall be brought before the IC for
mediation or adjudication.
Notwithstanding the preceding paragraph, the NLRC shall have the exclusive jurisdiction to enforce
against the recruitment/manning agency its decision, resolution or order, that has become final and
executory or a settlement/compromise agreement reached between the parties.
Section 12. Liability of Recruitment/Manning Agency. In case it is shown by substantial evidence

before the POEA that the migrant worker who was deployed by a licensed recruitment/manning
agency has paid for the premium or the cost of the insurance coverage or that the said insurance
coverage was used as basis by the recruitment/manning agency to claim any additional fee from the
migrant worker, the said licensed recruitment/manning agency shall lose its license and all its directors,
partners, proprietors, officers and employees shall be perpetually disqualified from engaging in the
business of recruitment of overseas workers. Such penalty is without prejudice to any other liability
which such persons may have incurred under existing laws, rules or regulations.
Section 13. Foreign Employers Guarantee Fund. For migrant workers recruited by the POEA on a
government-to-government arrangement, the POEA Foreign Employers Guarantee Fund referred to
under Section 5, Rule X of these Rules shall be answerable for the workers' monetary claims arising
from breach of contractual obligations.
Section 14. Optional Coverage. For migrant workers classified as rehires, name hires or direct hires,
they may opt to be covered by this insurance coverage by requesting their foreign employers to pay for
the cost of the insurance coverage or they may pay for the premium themselves. To protect the rights
of these workers, the DOLE and POEA shall provide them adequate legal assistance, including
conciliation and mediation services, whether at home or abroad.
Section 15. Formulation of Implementing Rules and Regulations. Within thirty (30) days from the
effectivity of these Rules, and pursuant to Section 37-A of the Act, the IC, as the lead agency, shall,
together with DOLE, NLRC, and POEA, in consultation with the recruitment/manning agencies and
legitimate non-government organizations advocating the rights and welfare of OFWs, issue the
necessary implementing rules and regulations, which shall include the following:
1. Qualifications of participating insurers;
2. Accreditation of insurers;
3. Uniform Standard Policy format;
4. Premium rate;
5. Benefits;
6. Underwriting Guidelines;
7. Claims procedure;
8. Dispute settlement;
9. Administrative monitoring and supervision; and
10. Other matters deemed necessary.
Within five (5) days from effectivity of these Rules, the IC shall convene the inter-agency committee
to commence the formulation of the aforesaid necessary rules and regulations.
Section 16. Assessment of Performance of Insurance Providers. At the end of every year, the DOLE
and the IC shall jointly make an assessment of the performance of all insurance providers, based upon
the report of NLRC and POEA on their respective interactions and experiences with the insurance
companies, and they shall have the authority to ban or blacklist such insurance companies which are
known to be evasive or not responsive to the legitimate claims of migrant workers. The DOLE shall
include such assessment in its year-end report to Congress.
Section 17. Automatic Review. The foregoing provisions on mandatory insurance coverage shall be
subject to automatic review through the Congressional Oversight Committee immediately after three
(3) years from the effectivity of the Act in order to determine its efficacy in favor of the covered
OFWS and the compliance by recruitment/manning agencies and insurance companies, without
prejudice to an earlier review if necessary and warranted for the purpose of modifying, amending
and/or repealing these subject provisions.
RULE XVII
MISCELLANEOUS PROVISIONS
Section 1. POEA, OWWA, and other Boards. Notwithstanding any provision of law to the contrary,
the respective boards of the POEA and the OWWA shall have three (3) members each who shall come
from the women, sea-based and land-based sectors respectively, to be selected and nominated openly
by the general membership of the sector being represented.
The selection and nomination of the additional members from the women, sea-based and land-based
sectors shall be governed by the following guidelines:
(a) The POEA and OWWA shall launch a massive information campaign on the selection of nominees
and provide for a system of consultative sessions for the certified leaders or representatives of the
concerned sectors, at least three (3) times, within ninety days (90) before the Boards shall be convened,
for purposes of selection. The process shall be open, democratic and transparent.
(b) Only non-government organizations that protect and promote the rights and welfare of overseas
Filipino workers, duly registered with the appropriate Philippine government agency and in good
standing as such, and in existence for at least three (3) years prior to the nomination shall be qualified
to nominate a representative for each sector to the Board;
(c) The nominee must be at least 25 years of age, able to read and write, and a migrant worker at the
time of his/her nomination or was a migrant worker with at least three (3) years experience as such;
(d) A Selection and Screening Committee shall be established within the POEA and OWWA by the
Secretary of Labor and Employment to formulate the procedures on application, screening and
consultation, and shall be responsible to provide the list of qualified nominees to the respective
Governing Boards; and
(e) The final list of all the nominees selected by the OWWA/POEA Governing Boards, which shall
consist of three (3) names for each sector to be represented, shall be submitted to the President and
published in a newspaper of general circulation.
Incumbent representatives appointed pursuant to this section and who are eligible for re-appointment
shall be automatically included in the list referred to under subsection (d).
Within thirty (30) days from the submission of the final list referred to under subsection (e), the
President shall select and appoint from the list the representatives to the POEA/OWWA Governing
Boards.
The members shall have a term of three (3) years and shall be eligible for reappointment for another
three (3) years. In case of vacancy, the President shall, in accordance with the provisions of the Act,
appoint a replacement who shall serve the unexpired term of his/her predecessor.
All other government agencies and government-owned or controlled corporations which require at
least one (1) representative from the overseas workers sector to their respective boards shall follow all
the applicable provisions of this section, subject to the respective Charters, Implementing Rules and
Regulations, and internal policies of such agencies and corporations.
The existing members of the Governing Boards of POEA and OWWA representing the women, land-
based, or sea-based sectors shall serve the remaining portion of their three-year terms. Thereafter, their
positions shall be deemed vacant, and the process of selection of their replacement shall be in
accordance with this section. If the incumbent is eligible for re-appointment, he/she shall continue to
serve until re-appointed or another person is appointed in accordance with this section.
Incumbent representatives in the Governing Board with no fixed term shall remain in holdover
capacity, until a replacement is appointed in accordance with this section.
Section 2. Report to Congress. In order to inform the Philippine Congress on the implementation of the
policy enunciated in Section 4 of the Act, the DFA and the DOLE shall submit separately to the said
body a semi-annual report of Philippine foreign posts located in, or exercising consular jurisdiction
over, countries receiving Filipino migrant workers. The mid-year report covering the period January to
June shall be submitted not later than October 31 of the same year while the year-end report covering
the period July to December shall be submitted not later than May 31 of the following year. The report
shall include, but shall not be limited to, the following information:
(a) Master list of Filipino migrant workers, and inventory of pending cases involving them and other
Filipino nationals including those serving prison terms;
(b) Working conditions of Filipino migrant workers;
(c) Problems encountered by the migrant workers, specifically violations of their rights;
(d) Initiatives/actions taken by the Philippine foreign posts to address the problems of Filipino migrant
workers;
(e) Changes in the laws and policies of host countries; and
(f) Status of negotiations on bilateral labor agreements between the Philippines and the receiving
country.
Section 3. Effect on Failure to Report. Any officer of the government who has the legal duty to report,
yet fails to submit the aforesaid Report to Congress, without justifiable cause, shall be subject to an
administrative penalty of dismissal from the service with disqualification to hold any appointive public
officer for five (5) years.
Section 4. Government Fees, Administrative Costs and Taxes. All fees for services being charged by
any government agency on migrant workers prevailing at the time of the effectivity of this Rule shall
not be increased. All other services rendered by the DOLE and other government agencies in
connection with the recruitment and placement of and assistance to migrant workers shall be rendered
free. The administrative cost thereof shall not be borne by the worker.
The migrant worker shall be exempt from the payment of travel tax and airport fee upon proper
showing of the Overseas Employment Certificate (OEA) issued by the POEA.
The remittances of all OFWs, upon showing of the OEC or valid OWWA Membership Certificate by
the OFW beneficiary or recipient, shall be exempt from the payment of documentary stamp tax (DST)
as imposed under Section 181 of the National Internal Revenue Code, as amended.
In addition to the original copy, a duplicate copy or a certified true copy of the valid proof of
entitlement referred to above shall be secured by the OFW from the POEA or OWWA, which shall be
held and used by his/her beneficiary in the availment of the DST exemption.
In case of OFWs whose remittances are sent through the banking system, credited to beneficiaries or
recipient's account in the Philippines and withdrawn through an automatic teller machine (ATM), it
shall be the responsibility of the OFW to show the valid proof of entitlement when making
arrangement that for his/her remittance transfers.
A proof of entitlement that is no longer valid shall not entitle an OFW to DST payment exemption.
The Bureau of Internal Revenue (BIR), under the Department of Finance, may promulgate revenue
regulations deemed to be necessary and appropriate for the effective implementation of the exemption
of OFWs from DST and travel tax.
Section 5. Establishment of the Congressional Migrant Workers Scholarship Fund.
There is hereby created a Congressional Migrant Workers Scholarship Fund which shall benefit
deserving migrant workers and/or their immediate descendants who intend to pursue courses or
training primarily in the field of science and technology, as defined by the DOST.
The fund of One Hundred Fifty Million Pesos (P150,000,000.00) shall be sourced from the proceeds of
Lotto draws.
Section 6. Creation of the Scholarship Fund Committee. There is hereby created a Scholarship Fund
Committee to be composed of representatives from the DOLE, DOST, POEA, OWWA, TESDA and
two (2) representatives of migrant workers to be appointed by the Secretary of Labor and Employment.
Section 7. Functions of the Scholarship Fund Committee.
(a) To set the coverage, criteria and standards of admission to the Scholarship Program;
(b) To determine the amount of availment;

(c) To monitor and evaluate the program;
(d) To identify/accredit training and testing institutions; and
(e) To perform such other functions necessary to attain the purpose of the Fund.
Section 8. Implementing Agency. The OWWA shall be the Secretariat of the Scholarship Fund
Committee. As such, it shall administer the Scholarship Program, in coordination with the DOST.
RULE XVIII
FUNDING
Section 1. Sources of Funds. The departments, agencies, instrumentalities, bureaus, offices and
government-owned and controlled corporations charged with carrying out the provisions of the Act
shall include in their respective programs the implementation of the Act, the funding of which shall be
included in the General Appropriations Act.
RULE XIX
MIGRANT WORKERS DAY
Section 1. Commemoration. The DOLE shall lead and enlist the cooperation of other government
agencies in the commemoration of a Migrant Workers Day on 7 June of every year.
RULE XX
TRANSITORY PROVISIONS
Section 1. Applicability of Criteria for Receiving Countries. In compliance with Section 4 of the Act,
the DFA shall, within 90 days from effectivity of these Rules and Regulations, issue the certification
for countries where the Philippines maintains an embassy.
In countries where the Philippine Embassy exercises concurrent jurisdiction and where the
Ambassador is non-resident, the DFA shall have one hundred twenty days (120) from the effectivity of
these Rules to issue the certification required in Section 4 of the Act. Prior to the expiration of the
aforesaid period, the secretary of Foreign Affairs, in consultation with the Secretary of Labor and
Employment, shall allow the reasonable extension of the period for the issuance of the certification
upon a determination that there is a need therefor.
Pending the issuance of the required certifications of compliance or determinations of non-compliance

and within the periods mentioned in the preceding paragraphs, the deployment of migrant workers
overseas shall proceed on a status quo basis.
For purposes of issuance of the certifications, the DFA shall, in consultation with the POEA, issue a
standard format to be accomplished by all Foreign Service posts.
Section 2. Effectivity of Compulsory Insurance Requirement. All OFWs who were issued Overseas
Employment Certificates prior to the effectivity of the necessary rules and regulations referred to under
Section 15 of Rule XVI shall not be covered by the compulsory insurance requirement.
Republic Act No. 8424 (Tax Reform Act of 1997)

December 14, 2007 By RBAP Leave a Comment
An Act Amending the National Internal Revenue Code as Amended and for other Purposes
TITLE IV
VALUE- ADDED TAX
CHAPTER I IMPOSITION OF TAX

Section 105. Persons Liable. Any person who, in the course of trade or business, sells barters,
exchanges, leases goods or properties, renders services, and any person who imports goods shall be
subject to the value-added tax (VAT) imposed in Sections 106 to 108 of this Code.
The value-added tax is an indirect tax and the amount of tax may be shifted or passed on to the buyer,
transferee or lessee of the goods, properties or services. This rule shall likewise apply to existing
contracts of sale or lease of goods, properties or services at the time of the effectivity of Republic Act
No. 7716.
The phrase in the course of trade or business means the regular conduct or pursuit of a commercial or
an economic activity, including transactions incidental thereto, by any person regardless of whether or
not the person engaged therein is a nonstock, nonprofit private organization (irrespective of the
disposition of its net income and whether or not it sells exclusively to members or their guests), or
government entity.
The rule of regularity, to the contrary notwithstanding, services as defined in this Code rendered in the
Philippines by nonresident foreign persons shall be considered as being course of trade or business.
Section 106. Value-Added Tax on Sale of Goods or Properties. -
(A) Rate and Base of Tax. There shall be levied, assessed and collected on every sale, barter or
exchange of goods or properties, value-added tax equivalent to ten percent (10%) of the gross selling
price or gross value in money of the goods or properties sold, bartered or exchanged, such tax to be
paid by the seller or transferor.
(1) The term goods or properties shall mean all tangible and intangible objects which are capable of
pecuniary estimation and shall include:
(a) Real properties held primarily for sale to customers or held for lease in the ordinary course of trade
or business;
(b) The right or the privilege to use patent, copyright, design or model, plan, secret formula or process,
goodwill, trademark, trade brand or other like property or right;
(c) The right or the privilege to use in the Philippines of any industrial, commercial or scientific
equipment;
(d) The right or the privilege to use motion picture films, tapes and discs; and
(e) Radio, television, satellite transmission and cable television time.
The term gross selling price means the total amount of money or its equivalent which the purchaser
pays or is obligated to pay to the seller in consideration of the sale, barter or exchange of the goods or
properties, excluding the value-added tax. The excise tax, if any, on such goods or properties shall
form part of the gross selling price.
(2) The following sales by VAT-registered persons shall be subject to zero percent (0%) rate:
(a) Export Sales. The term export sales means:
(1) The sale and actual shipment of goods from the Philippines to a foreign country, irrespective of any
shipping arrangement that may be agreed upon which may influence or determine the transfer of
ownership of the goods so exported and paid for in acceptable foreign currency or its equivalent in
goods or services, and accounted for in accordance with the rules and regulations of the Bangko
Sentral ng Pilipinas (BSP);
(2) Sale of raw materials or packaging materials to a nonresident buyer for delivery to a resident local
export-oriented enterprise to be used in manufacturing, processing, packing or repacking in the
Philippines of the said buyers goods and paid for in acceptable foreign currency and accounted for in
accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP);
(3) Sale of raw materials or packaging materials to export-oriented enterprise whose export sales
exceed seventy percent (70%) of total annual production;
(4) Sale of gold to the Bangko Sentral ng Pilipinas (BSP); and
(5) Those considered export sales under Executive Order NO. 226, otherwise known as the Omnibus
Investment Code of 1987, and other special laws.
(b) Foreign Currency Denominated Sale. The phrase foreign currency denominated sale means sale
to a nonresident of goods, except those mentioned in Sections 149 and 150, assembled or
manufactured in the Philippines for delivery to a resident in the Philippines, paid for in acceptable
foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral
ng Pilipinas (BSP).
(c) Sales to persons or entities whose exemption under special laws or international agreements to
which the Philippines is a signatory effectively subjects such sales to zero rate.
(B) Transactions Deemed Sale. The following transactions shall be deemed sale:
(1) Transfer, use or consumption not in the course of business of goods or properties originally
intended for sale or for use in the course of business;
(2) Distribution or transfer to:
(a) Shareholders or investors as share in the profits of the VAT-registered persons; or
(b) Creditors in payment of debt;
(3) Consignment of goods if actual sale is not made within sixty (60) days following the date such
goods were consigned; and
(4) Retirement from or cessation of business, with respect to inventories of taxable goods existing as of
such retirement or cessation.
(C) Changes in or Cessation of Status of a VAT-registered Person. The tax imposed in Subsection
(A) of this Section shall also apply to goods disposed of or existing as of a certain date if under
circumstances to be prescribed in rules and regulations to be promulgated by the Secretary of Finance,
upon recommendation of the Commissioner, the status of a person as a VAT-registered person changes
or is terminated.
(D) Determination of the Tax. -
(1) The tax shall be computed by multiplying the total amount indicated in the invoice by one-eleventh
(1/11).
(2) Sales Returns, Allowances and Sales Discounts. The value of goods or properties sold and
subsequently returned or for which allowances were granted by a VAT-registered person may be
deducted from the gross sales or receipts for the quarter in which a refund is made or a credit
memorandum or refund is issued. Sales discount granted and indicated in the invoice at the time of sale
and the grant of which does not depend upon the happening of a future event may be excluded from
the gross sales within the same quarter it was given.
(3) Authority of the Commissioner to Determine the Appropriate Tax Base. The Commissioner shall,
by rules and regulations prescribed by the Secretary of Finance, determine the appropriate tax base in
cases where a transaction is deemed a sale, barter or exchange of goods or properties under Subsection
(B) hereof, or where the gross selling price is unreasonably lower than the actual market value.
Section 107. Value-Added Tax on Importation of Goods. -
(A) In General. There shall be levied, assessed and collected on every importation of goods a value-
added tax equivalent to ten percent (10%) based on the total value used by the Bureau of Customs in
determining tariff and customs duties plus customs duties, excise taxes, if any, and other charges, such
tax to be paid by the importer prior to the release of such goods from customs custody: Provided, That
where the customs duties are determined on the basis of the quantity or volume of the goods, the value-
added tax shall be based on the landed cost plus excise taxes, If any.
(B) Transfer of Goods by Tax-exempt Persons. In the case of tax-free importation of goods into the
Philippines by persons, entities or agencies exempt from tax where such goods are subsequently sold,
transferred or exchanged in the Philippines to non-exempt persons or entities, the purchasers,
transferees or recipients shall be considered the importers thereof, who shall be liable for any internal
revenue tax on such importation. The tax due on such importation shall constitute a lien on the goods
superior to all charges or liens on the goods, irrespective of the possessor thereof.
Section 108. Value-added Tax on Sale of Services and Use or Lease of Properties. -
(A) Rate and Base of Tax. There shall be levied, assessed and collected, a value-added tax equivalent
to ten percent (10%) of gross receipts derived from the sale or exchange of services, including the use
or lease of properties.
The phrase sale or exchange of services means the performance of all kinds or services in the
Philippines for others for a fee, remuneration or consideration, including those performed or rendered
by construction and service contractors; stock, real estate, commercial, customs and immigration
brokers; lessors of property, whether personal or real; warehousing services; lessors or distributors of
cinematographic films; persons engaged in milling processing, manufacturing or repacking goods for
others; proprietors, operators or keepers of hotels, motels, resthouses, pension houses, inns, resorts;
proprietors or operators of restaurants, refreshment parlors, cafes and other eating places, including
clubs and caterers; dealers in securities; lending investors; transportation contractors on their transport
of goods or cargoes, including persons who transport goods or cargoes for hire another domestic
common carriers by land, air and water relative to their transport of goods or cargoes; services of
franchise grantees of telephone and telegraph, radio and television broadcasting and all other franchise
grantees except those under Section 119 of this Code; services of banks, non-bank financial
intermediaries and finance companies; and non-life insurance companies (except their crop
insurances), including surety, fidelity, indemnity and bonding companies; and similar services
regardless of whether or not the performance thereof calls for the exercise or use of the physical or
mental faculties. The phrase sale or exchange of services shall likewise include:
(1) The lease or the use of or the right or privilege to use any copyright, patent, design or model, plan
secret formula or process, goodwill, trademark, trade brand or other like property or right;
(2) The lease of the use of, or the right to use of any industrial, commercial or scientific equipment;
(3) The supply of scientific, technical, industrial or commercial knowledge or information;
(4) The supply of any assistance that is ancillary and subsidiary to and is furnished as a means of
enabling the application or enjoyment of any such property, or right as is mentioned in subparagraph
(2) or any such knowledge or information as is mentioned in subparagraph (3);
(5) The supply of services by a nonresident person or his employee in connection with the use of
property or rights belonging to, or the installation or operation of any brand, machinery or other
apparatus purchased from such nonresident person.
(6) The supply of technical advice, assistance or services rendered in connection with technical
management or administration of any scientific, industrial or commercial undertaking, venture, project
or scheme;
(7) The lease of motion picture films, films, tapes and discs; and
(8) The lease or the use of or the right to use radio, television, satellite transmission and cable
television time.
Lease of properties shall be subject to the tax herein imposed irrespective of the place where the
contract of lease or licensing agreement was executed if the property is leased or used in the
Philippines.
The term gross receipts means the total amount of money or its equivalent representing the contract
price, compensation, service fee, rental or royalty, including the amount charged for materials supplied
with the services and deposits and advanced payments actually or constructively received during the
taxable quarter for the services performed or to be performed for another person, excluding value-
added tax.
(B) Transactions Subject to Zero Percent (0%) Rate The following services performed in the
Philippines by VAT- registered persons shall be subject to zero percent (0%) rate.
(1) Processing, manufacturing or repacking goods for other persons doing business outside the
Philippines which goods are subsequently exported, where the services are paid for in acceptable
foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral
ng Pilipinas (BSP);
(2) Services other than those mentioned in the preceding paragraph, the consideration for which is paid
for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the
Bangko Sentral ng Pilipinas (BSP);
(3) Services rendered to persons or entities whose exemption under special laws or international
agreements to which the Philippines is a signatory effectively subjects the supply of such services to
zero percent (0%) rate;
(4) Services rendered to vessels engaged exclusively in international shipping; and
(5) Services performed by subcontractors and/or contractors in processing, converting, of

manufacturing goods for an enterprise whose export sales exceed seventy percent (70%) of total annual
production.
(C) Determination of the Tax. The tax shall be computed by multiplying the total amount indicated in
the official receipt by one-eleventh (1/11).
Section 109. Exempt Transactions. The following shall be exempt from the value-added tax:
(a) Sale of nonfood agricultural products; marine and forest products in their original state by the
primary producer or the owner of the land where the same are produced;
(b) Sale of cotton seeds in their original state; and copra;
(c) Sale or importation of agricultural and marine food products in their original state, livestock and
poultry of or king generally used as, or yielding or producing foods for human consumption; and
breeding stock and genetic materials therefor.
Products classified under this paragraph and paragraph (a) shall be considered in their original state
even if they have undergone the simple processes of preparation or preservation for the market, such as
freezing, drying, salting, broiling, roasting, smoking or stripping.
Polished and/or husked rice, corn grits, raw cane sugar and molasses, and ordinary salt shall be
considered in their original state;
(d) Sale or importation of fertilizers; seeds, seedlings and fingerlings; fish, prawn, livestock and
poultry feeds, including ingredients, whether locally produced or imported, used in the manufacture of
finished feeds (except specialty feeds for race horses, fighting cocks, aquarium fish, zoo animals and
other animals generally considered as pets);
(e) Sale or importation of coal and natural gas, in whatever form or state, and petroleum products
(except lubricating oil, processed gas, grease, wax and petrolatum) subject to excise tax imposed under
Title VI;
(f) Sale or importation of raw materials to be used by the buyer or importer himself in the manufacture
of petroleum products subject to excise tax, except lubricating oil, processed gas, grease, wax and
petrolatum;
(g) Importation of passenger and/or cargo vessels of more than five thousand tons (5,000) whether
coastwise or ocean-going, including engine and spare parts of said vessel to be used by the importer
himself as operator thereof;
(h) Importation of personal and household effects belonging to the residents of the Philippines
returning from abroad and nonresident citizens coming to resettle in the Philippines: Provided, That
such goods are exempt from customs duties under the Tariff and Customs Code of the Philippines;
(i) Importation of professional instruments and implements, wearing apparel, domestic animals, and
personal household effects (except any vehicle, vessel, aircraft, machinery other goods for use in the
manufacture and merchandise of any kind in commercial quantity) belonging to persons coming to
settle in the Philippines, for their own use and not for sale, barter or exchange, accompanying such
persons, or arriving within ninety (90) days before or after their arrival, upon the production of
evidence satisfactory to the Commissioner, that such persons are actually coming to settle in the
Philippines and that the change of residence is bona fide;
(j) Services subject to percentage tax under Title V;
(k) Services by agricultural contract growers and milling for others of palay into rice, corn into grits
and sugar cane into raw sugar;
(l) Medical, dental, hospital and veterinary services subject to the provisions of Section 17 of Republic
Act No. 7716, as amended:
(m) Educational services rendered by private educational institutions, duly accredited by the
Department of Education, Culture and Sports (DECS) and the Commission on Higher Education
(CHED), and those rendered by government educational institutions;
(n) Sale by the artist himself of his works of art, literary works, musical compositions and similar
creations, or his services performed for the production of such works;
(o) Services rendered by individuals pursuant to an employer-employee relationship;
(p) Services rendered by regional or area headquarters established in the Philippines by multinational
corporations which act as supervisory, communications and coordinating centers for their affiliates,
subsidiaries or branches in the Asia-Pacific Region and do not earn or derive income from the
Philippines;
(q) Transactions which are exempt under international agreements to which the Philippines is a
signatory or under special laws, except those under Presidential Decree Nos. 66, 529 and 1590;
(r) Sales by agricultural cooperatives duly registered with the Cooperative Development Authority to
their members as well as sale of their produce, whether in its original state or processed form, to non-
members; their importation of direct farm inputs, machineries and equipment, including spare parts
thereof, to be used directly and exclusively in the production and/or processing of their produce;
(s) Sales by electric cooperatives duly registered with the Cooperative Development authority or
National Electrification Administration, relative to the generation and distribution of electricity as well
as their importation of machineries and equipment, including spare parts, which shall be directly used
in the generation and distribution of electricity;
(t) Gross receipts from lending activities by credit or multi-purpose cooperatives duly registered with
the Cooperative Development Authority whose lending operation is limited to their members;
(u) Sales by non-agricultural, non- electric and non-credit cooperatives duly registered with the
Cooperative Development Authority: Provided, That the share capital contribution of each member
does not exceed Fifteen thousand pesos (P15,000) and regardless of the aggregate capital and net
surplus ratably distributed among the members;
(v) Export sales by persons who are not VAT-registered;
(w) Sale of real properties not primarily held for sale to customers or held for lease in the ordinary
course of trade or business or real property utilized for low-cost and socialized housing as defined by
Republic Act No. 7279, otherwise known as the Urban Development and Housing Act of 1992, and
other related laws, house and lot and other residential dwellings valued at One million pesos
(P1,000,000) and below: Provided, That not later than January 31st of the calendar year subsequent to
the effectivity of this Act and each calendar year thereafter, the amount of One million pesos
(P1,000,000) shall be adjusted to its present value using the Consumer Price Index, as published by the
national Statistics Office (NSO);
(x) Lease of a residential unit with a monthly rental not exceeding Eight thousand pesos(P8,000);
Provided, That not later than January 31st of the calendar year subsequent to the effectivity of
Republic Act No. 8241 and each calendar year thereafter, the amount of Eight thousand pesos (P8,000)
shall be adjusted to its present value using the Consumer Price Index as published by the National
Statistics Office (NS0);
(y) Sale, importation, printing or publication of books and any newspaper, magazine review or bulletin
which appears at regular intervals with fixed prices for subscription and sale and which is not devoted
principally to the publication of paid advertisements; and
(z) Sale or lease of goods or properties or the performance of services other than the transactions
mentioned in the preceding paragraphs, the gross annual sales and/or receipts do not exceed the
amount of Five hundred fifty thousand pesos (P550,000): Provided, That not later than January 31st of
the calendar year subsequent to the effectivity of Republic Act No. 8241 and each calendar year
thereafter, the amount of Five hundred fifty thousand pesos (550,000) shall be adjusted to its present
value using the Consumer Price Index, as published by the National Statistics Office (NSO).
The foregoing exemptions to the contrary notwithstanding, any person whose sale of goods or
properties or services which are otherwise not subject to VAT, but who issues a VAT invoice or
receipt therefor shall, in addition to his liability to other applicable percentage tax, if any, be liable to
the tax imposed in Section 106 or 108 without the benefit of input tax credit, and such tax shall also be
recognized as input tax credit to the purchaser under Section 110, all of this Code.
Section 110. Tax Credits. -
A. Creditable Input Tax. -
(1) Any input tax evidenced by a VAT invoice or official receipt issued in accordance with Section
113 hereof on the following transactions shall be creditable against the output tax:
(a) Purchase or importation of goods:
(i) For sale; or
(ii) For conversion into or intended to form part of a finished product for sale including packaging
materials; or
(iii) For use as supplies in the course of business; or
(iv) For use as materials supplied in the sale of service; or

(v) For use in trade or business for which deduction for depreciation or amortization is allowed under
this Code, except automobiles, aircraft and yachts.
(b) Purchase of services on which a value-added tax has been actually paid.
(2) The input tax on domestic purchase of goods or properties shall be creditable:
(a) To the purchaser upon consummation of sale and on importation of goods or properties; and
(b) To the importer upon payment of the value-added tax prior to the release of the goods from the
custody of the Bureau of Customs.
However, in the case of purchase of services, lease or use of properties, the input tax shall be creditable
to the purchaser, lessee or licensee upon payment of the compensation, rental, royalty or fee.
(3) A VAT-registered person who is also engaged in transactions not subject to the value-added tax
shall be allowed tax credit as follows:
(a) Total input tax which can be directly attributed to transactions subject to value-added tax; and
(b) A ratable portion of any input tax which cannot be directly attributed to either activity.
The term input tax means the value-added tax due from or paid by a VAT-registered person in the
course of his trade or business on importation of goods or local purchase of goods or services,
including lease or use of property, from a VAT-registered person. It shall also include the transitional
input tax determined in accordance with Section 111 of this Code.
The term output tax means the value-added tax due on the sale or lease of taxable goods or properties
or services by any person registered or required to register under Section 236 of this Code.
(B) Excess Output or Input Tax. If at the end of any taxable quarter the output tax exceeds the input
tax, the excess shall be paid by the Vat-registered person. If the input tax exceeds the output tax, the
excess shall be carried over to the succeeding quarter or quarters. any input tax attributable to the
purchase of capital goods or to zero-rated sales by a VAT-registered person may at his option be
refunded or credited against other internal revenue taxes, subject to the provisions of Section 112.
(C) Determination of Creditable Input Tax. The sum of the excess input tax carried over from the
preceding month or quarter and the input tax creditable to a VAT-registered person during the taxable
month or quarter shall be reduced by the amount of claim for refund or tax credit for value-added tax
and other adjustments, such as purchase returns or allowances and input tax attributable to exempt sale.
The claim for tax credit referred to in the foregoing paragraph shall include not only those filed with
the Bureau of Internal Revenue but also those filed with other government agencies, such as the Board
of Investments the Bureau of Customs.
Section 111. Transitional/Presumptive Input Tax Credits. -
(A) Transitional Input Tax Credits. A person who becomes liable to value-added tax or any person
who elects to be a VAT-registered person shall, subject to the filing of an inventory according to rules
and regulations prescribed by the Secretary of finance, upon recommendation of the Commissioner, be
allowed input tax on his beginning inventory of goods, materials and supplies equivalent for eight
percent (8%) of the value of such inventory or the actual value-added tax paid on such goods, materials
and supplies, whichever is higher, which shall be creditable against the output tax.
(B) Presumptive Input Tax Credits. -
(1) Persons or firms engaged in the processing of sardines, mackerel and milk, and in manufacturing
refined sugar and cooking oil, shall be allowed a presumptive input tax, creditable against the output
tax, equivalent to one and one-half percent (1 1/2%) of the gross value in money of their purchases of
primary agricultural products which are used as inputs to their production.
As used in this Subsection, the term processing shall mean pasteurization, canning and activities
which through physical or chemical process alter the exterior texture or form or inner substance of a
product in such manner as to prepare it for special use to which it could not have been put in its
original form or condition.
(2) Public works contractors shall be allowed a presumptive input tax equivalent to one and one-half
percent (1 1/2%) of the contract price with respect to government contracts only in lieu of actual input
taxes therefrom.
Section 112. Refunds or Tax Credits of Input Tax. -
(A) Zero-rated or Effectively Zero-rated Sales. any VAT-registered person, whose sales are zero-
rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the
sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due
or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not
been applied against output tax: Provided, however, That in the case of zero-rated sales under Section
106(A)(2)(a)(1), (2) and (B) and Section 108 (B)(1) and (2), the acceptable foreign currency exchange
proceeds thereof had been duly accounted for in accordance with the rules and regulations of the
Bangko Sentral ng Pilipinas (BSP): Provided, further, That where the taxpayer is engaged in zero-rated
or effectively zero-rated sale and also in taxable or exempt sale of goods of properties or services, and
the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of
the transactions, it shall be allocated proportionately on the basis of the volume of sales.
(B) Capital Goods. A VAT-registered person may apply for the issuance of a tax credit certificate or
refund of input taxes paid on capital goods imported or locally purchased, to the extent that such input
taxes have not been applied against output taxes. The application may be made only within two (2)
years after the close of the taxable quarter when the importation or purchase was made.
(C) Cancellation of VAT Registration. A person whose registration has been cancelled due to
retirement from or cessation of business, or due to changes in or cessation of status under Section
106(C) of this Code may, within two (2) years from the date of cancellation, apply for the issuance of a
tax credit certificate for any unused input tax which may be used in payment of his other internal
revenue taxes.
(D) Period within which Refund or Tax Credit of Input Taxes shall be Made. In proper cases, the
Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within
one hundred twenty (120) days from the date of submission of compete documents in support of the
application filed in accordance with Subsections (A) and (B) hereof.
In case of full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the
Commissioner to act on the application within the period prescribed above, the taxpayer affected may,
within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the
one hundred twenty day-period, appeal the decision or the unacted claim with the Court of Tax
Appeals.-
(E) Manner of Giving Refund. Refunds shall be made upon warrants drawn by the Commissioner or
by his duly authorized representative without the necessity of being countersigned by the Chairman,
Commission on audit, the provisions of the Administrative Code of 1987 to the contrary
notwithstanding: Provided, That refunds under this paragraph shall be subject to post audit by the
Commission on Audit.
CHAPTER II COMPLIANCE REQUIREMENTS
Section 113. Invoicing and Accounting Requirements for VAT-Registered Persons. -
(A) Invoicing Requirements. A VAT-registered person shall, for every sale, issue an invoice or
receipt. In addition to the information required under Section 237, the following information shall be
indicated in the invoice or receipt:
(1) A statement that the seller is a VAT-registered person, followed by his taxpayers identification
number (TIN); and
(2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication
that such amount includes the value-added tax.
(B) Accounting Requirements. Notwithstanding the provisions of Section 233, all persons subject to
the value-added tax under Sections 106 and 108 shall, in addition to the regular accounting records
required, maintain a subsidiary sales journal and subsidiary purchase journal on which the daily sales
and purchases are recorded. The subsidiary journals shall contain such information as may be required
by the Secretary of Finance.
Section 114. Return and Payment of Value-Added Tax. -
(A) In General. Every person liable to pay the value-added tax imposed under this Title shall file a
quarterly return of the amount of his gross sales or receipts within twenty-five (25) days following the
close of each taxable quarter prescribed for each taxpayer: Provided, however, That VAT-registered
persons shall pay the value-added tax on a monthly basis.
Any person, whose registration has been cancelled in accordance with Section 236, shall file a return
and pay the tax due thereon within twenty-five (25) days from the date of cancellation of registration:
Provided, That only one consolidated return shall be filed by the taxpayer for his principal place of
business or head office and all branches.
(B) Where to File the Return and Pay the Tax. Except as the Commissioner otherwise permits, the
return shall be filed with and the tax paid to an authorized agent bank, Revenue Collection Officer or
duly authorized city or municipal Treasurer in the Philippines located within the revenue district where
the taxpayer is registered or required to register.
(C) Withholding of Creditable Value-added Tax. The Government or any of its political
subdivisions, instrumentalities or agencies, including government-owned or -controlled corporations
(GOCCs) shall, before making payment on account of each purchase of goods from sellers and
services rendered by contractors which are subject to the value-added tax imposed in Sections 106 and
108 of this Code, deduct and withhold the value-added tax due at the rate of three percent (3%) of the
gross payment for the purchase of goods and six percent (6%) on gross receipts for services rendered
by contractors on every sale or installment payment which shall be creditable against the value-added
tax liability of the seller or contractor: Provided, however, That in the case of government public works
contractors, the withholding rate shall be eight and one-half percent (8.5%): Provided, further, That the
payment for lease or use of properties or property rights to nonresident owners shall be subject to ten
percent (10%) withholding tax at the time of payment. For this purpose, the payor or person in control
of the payment shall be considered as the withholding agent.
The value-added tax withheld under this Section shall be remitted within ten (10) days following the
end of the month the withholding was made.
Section 115. Power of the Commissioner to Suspend the Business Operations of a Taxpayer. The
Commissioner or his authorized representative is hereby empowered to suspend the business
operations and temporarily close the business establishment of any person for any of the following
violations:
(a) In the case of a VAT-registered Person. -
(1) Failure to issue receipts or invoices;
(2) Failure to file a value-added tax return as required under Section 114; or
(3) Understatement of taxable sales or receipts by thirty percent (30%) or more of his correct taxable
sales or receipts for the taxable quarter.
(b) Failure of any Person to Register as Required under Section 236. -

The temporary closure of the establishment shall be for the duration of not less than five (5) days and
shall be lifted only upon compliance with whatever requirements prescribed by the Commissioner in
the closure order.
Republic Act No. 8282 May 01, 1997
AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEM THEREBY

AMENDING FOR THIS PURPOSE, REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE
KNOWN AS THE SOCIAL SECURITY LAW
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
Section 1. Republic Act No. 1161, as amended, otherwise known as the "Social Security Law", is
hereby further amended to read as follows:
"SECTION 1. Short Title. - This Act shall be known as the "AN ACT FURTHER STRENGTHENING
THE SOCIAL SECURITY SYSTEM THEREBY AMENDING FOR THIS PURPOSE, REPUBLIC
ACT NO. 1161, AS AMENDED, OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW."
"SEC. 2. Declaration of Policy. - 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 promote social justice and provide
meaningful protection to members and their beneficiaries against the hazards of disability, sickness,
maternity, old age, death, and other contingencies resulting in loss of income or financial burden.
Towards this end, the State shall endeavor to extend social security protection to workers and their
beneficiaries.
"SEC. 3. Social Security System. - (a) To carry out the purposes of this Act, the Social Security
System, hereinafter referred to as 'SSS', a corporate body, with principal place of business in Metro
Manila, Philippines is hereby created. The SSS shall be directed and controlled by a Social Security
Commission, hereinafter referred to as 'Commission', composed of the Secretary of Labor and
Employment or his duly designated undersecretary, the SSS president and seven (7) appointive
members, three (3) of whom shall represent the workers' group, at least one of whom shall be a
woman; three (3), the employers' group, at least one (1) of whom shall be a woman; and one (1), the
general public whose representative shall have adequate knowledge and experience regarding social
security, to be appointed by the President of the Philippines. The six (6) members representing workers
and employers shall be chosen from among the nominees of workers' and employers' organizations,
respectively. The Chairman of the Commission shall be designated by the President of the Philippines
from among its members. The term of the appointive members shall be three (3) years: Provided, That
the terms of the first six (6) appointive members shall be one (1), two (2) and three (3) years for every
two members, respectively: Provided, further, That they shall continue to hold office until their
successors shall have been appointed and duly qualified. All vacancies, prior to the expiration of the
term, shall be filled for the unexpired term only. The appointive members of the Commission shall
receive at least two thousand five hundred pesos (P2,500.00) per diem for each meeting actually
attended by them but not to exceed Ten thousand pesos (P10,000.00) a month:: Provided, That
members of the Commission shall also receive a per diem of at least Two thousand five hundred pesos
(P2,500.00) but not to exceed Fifteen thousand pesos (P15,000.00) a month: Provided , further, That
said members of the Commission shall also receive reasonable transportation and representation
allowances as may be fixed by the Commission, but not to exceed Ten thousand pesos (P10,000.00) a
month.
"(b) The general conduct of the operations and management functions of the SSS shall be vested in the
SSS President who shall serve as the chief executive officer immediately responsible for carrying out
the program of the SSS and the policies of the Commission. The SSS President shall be a person who
has had previous experience in the technical and administrative fields related to the purposes of this
Act. He shall be appointed by the President of the Philippines and shall receive salary to be fixed by
the Commission with the approval of the President of the Philippines, payable from the funds of the
SSS.
"(c) The Commission, upon the recommendation of the SSS President, shall appoint an actuary, and
such other personnel as may be deemed necessary, fix their reasonable compensation, allowances and
other benefits, prescribe their duties and establish such methods and procedures as may be necessary to
insure the efficient, honest and economical administration of the provisions and purposes of this Act:
Provided, however, That the personnel of the SSS below the rank of Vice-President shall be appointed
by the SSS President: Provided, further, That the personnel appointed by the SSS President, except
those below the rank of assistant manager, shall be subject to the confirmation by the Commission:
Provided, further, That the personnel of the SSS shall be selected only from civil service eligibles and
be subject to civil service rules and regulations: Provided, finally, That the SSS shall be exempt from
the provisions of Republic Act No. 6758 and Republic Act No. 7430.
"SEC. 4. Powers and Duties of the Commission and SSS. - (a) The Commission. - For the attainment
of its main objectives as set forth in Section 2 hereof, the Commission shall have the following powers
and duties:
"(1) To adopt, amend and rescind, subject to the approval of the President of the Philippines, such rules
and regulations as may be necessary to carry out the provisions and purposes of this Act;
"(2) To establish a provident fund for the members which will consist of voluntary contributions of
employers and/or employees, self-employed and voluntary members and their earnings, for the
payment of benefits to such members or their beneficiaries, subject to such rules and regulations as it
may promulgate and approved by the President of the Philippines;
"(3) To maintain a provident fund which consists of contributions made by both the SSS and its
officials and employees and their earnings, for the payment of benefits to such officials and employees
or their heirs under such terms and conditions as it may prescribe;
"(4) To approve restructuring proposals for the payment of due but unremitted contributions and
unpaid loan amortizations under such terms and conditions as it may prescribe;
"(5) To authorize cooperatives registered with the cooperative development authority or associations
registered with the appropriate government agency to act as collecting agents of the SSS with respect
to their members: Provided, That the SSS shall accredit the cooperative or association: Provided,
further, That the persons authorized to collect are bonded;
"(6) To compromise or release, in whole or in part, any interest, penalty or any civil liability to SSS in
connection with the investments authorized under Section 26 hereof, under such terms and conditions
as it may prescribe and approved by the President of the Philippines; and
"(7) To approve, confirm, pass upon or review any and all actions of the SSS in the proper and
necessary exercise of its powers and duties hereinafter enumerated.
"(b) The Social Security System. - Subject to the provision of Section four (4), paragraph seven (7)
hereof, the SSS shall have the following powers and duties:
"(1) To submit annually not later than April 30, a public report to the President of the Philippines and
to the Congress of the Philippines covering its activities in the administration and enforcement of this
Act during the preceding year including information and recommendations on broad policies for the
development and perfection of the program of the SSS;
"(2) To require the actuary to submit a valuation report on the SSS benefit program every four (4)
years, or more frequently as may be necessary, to undertake the necessary actuarial studies and
calculations concerning increases in benefits taking into account inflation and the financial stability of
the SSS, and to provide for feasible increases in benefits every four (4) years, including the addition of
new ones, under such rules and regulations as the Commission may adopt, subject to the approval of
the President of the Philippines: Provided, That the actuarial soundness of the reserve fund shall be
guaranteed: Provided, further, That such increases in benefits shall not require any increase in the rate
of contribution;
"(3) To establish offices of the SSS to cover as many provinces, cities and congressional districts,
whenever and wherever it may be expedient, necessary and feasible, and to inspect or cause to be
inspected periodically such offices;
"(4) To enter into agreements or contracts for such service and aid, as may be needed for the proper,
efficient and stable administration of the SSS;
"(5) To adopt, from time to time, a budget of expenditures including salaries of personnel, against all
funds available to the SSS under this Act;
"(6) To set up its accounting system and provide the necessary personnel therefor;
"(7) To require reports, compilations and analyses of statistical and economic data and to make
investigation as may be needed for the proper administration and development of the SSS;
"(8) To acquire and dispose of property, real or personal, which may be necessary or expedient for the
attainment of the purposes of this Act;
"(9) To acquire, receive, or hold, by way of purchase, expropriation or otherwise, public or private
property for the purpose of undertaking housing projects preferably for the benefit of low-income
members and for the maintenance of hospitals and institutions for the sick, aged and disabled, as well
as schools for the members and their immediate families;
"(10) To sue and be sued in court; and
"(11) To perform such other corporate acts as it may deem appropriate for the proper enforcement of
this Act.
"SEC. 5. Settlement of Disputes. - (a) Any dispute arising under this Act with respect to coverage,
benefits, contributions and penalties thereon or any other matter related thereto, shall be cognizable by
the Commission, and any case filed with respect thereto shall be heard by the Commission, or any of
its members, or by hearing officers duly authorized by the Commission and decided within twenty (20)
days after the submission of the evidence. The filing, determination and settlement of disputes shall be
governed by the rules and regulations promulgated by the Commission.
"(b) Appeal to Courts. - Any decision of the Commission, in the absence of an appeal therefrom as
herein Provided, shall become final and executory fifteen (15) days after the date of notification, and
judicial review thereof shall be permitted only after any party claiming to be aggrieved thereby has
exhausted his remedies before the Commission. The Commission shall be deemed to be a party to any
judicial action involving any such decision, and may be represented by an attorney employed by the
Commission, or when requested by the Commission, by the Solicitor General or any public
prosecutors.
"(c) Court Review. - The decision of the Commission upon any disputed matter may be reviewed both
upon the law and the facts by the Court of Appeals. For the purpose of such review, the procedure
concerning appeals from the Regional Trial Court shall be followed as far as practicable and consistent
with the purposes of this Act. Appeal from a decision of the Commission must be taken within fifteen
(15) days from notification of such decision. If the decision of the Commission involves only questions
of law, the same shall be reviewed by the Supreme Court. No appeal bond shall be required. The case
shall be heard in a summary manner, and shall take precedence over all cases, except that in the
Supreme Court, criminal cases wherein life imprisonment or death has been imposed by the trial court
shall take precedence. No appeal shall act as a supersedeas or a stay of the order of the Commission
unless the Commission itself, or the Court of Appeals or the Supreme Court, shall so order.
"(d) Execution of Decisions. - The Commission may, motu proprio or on motion of any interested
party, issue a writ of execution to enforce any of its decisions or awards, after it has become final and
executory, in the same manner as the decision of the Regional Trial Court by directing the city or
provincial sheriff or the sheriff whom it may appoint to enforce such final decision or execute such
writ; and any person who shall fail or refuse to comply with such decision, award or writ, after being
required to do so shall, upon application by the Commission pursuant to Rule 71 of the Rules of Court,
be punished for contempt.
"SEC. 6. Auditor and Counsel. - (a) The Chairman of the Commission on Audit shall be the ex-officio
Auditor of the SSS. He or his representative shall check and audit all the accounts, funds and
properties of the SSS in the same manner and as frequently as the accounts, funds and properties of the
government are checked and audited under existing laws, and he shall have, as far as practicable, the
same powers and duties as he has with respect to the checking and auditing of public accounts, funds
and properties in general.
"(b) The Secretary of Justice shall be the ex-officio counsel of the SSS. He or his representative shall
act as legal adviser and counsel thereof.
"SEC. 7. Oaths, Witnesses, and Production of Records. - When authorized by the Commission, an
official or employee thereof shall have the power to administer oath and affirmation, take depositions,
certify to official acts, and issue subpoena and subpoena duces tecum to compel the attendance of
witnesses and the production of books, papers, correspondence and other records deemed necessary as
evidence in connection with any question arising under this Act. Any case of contumacy shall be dealt
with by the Commission in accordance with law.
"SEC. 8. Terms Defined. - For purposes of this Act, the following terms shall, unless the context
indicates otherwise, have the following meanings:
"(a) SSS - The Social Security System created by this Act.
"(b) Commission - The Social Security Commission as herein created.
"(c) 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: Provided, That a self-employed person shall be both employee and employer at the same
time.
"(d) Employee - Any person who performs services for an employer in which either or both mental or
physical efforts are used and who receives compensation for such services, where there is an employer-
employee relationship: Provided, That a self-employed person shall be both employee and employer at
the same time.
"(e) Dependents - The dependents shall be the following:
"(1) The legal spouse entitled by law to receive support from the member;
"(2) The legitimate, legitimated or legally adopted, and illegitimate child who is unmarried, not
gainfully employed, and has not reached twenty-one (21) years of age, or if over twenty-one (21) years
of age, he is congenitally or while still a minor has been permanently incapacitated and incapable of
self-support, physically or mentally; and
"(3) The parent who is receiving regular support from the member.
"(f) Compensation - All actual remuneration for employment, including the mandated cost-of-living
allowance, as well as the cash value of any remuneration paid in any medium other than cash except
that part of the remuneration in excess of the maximum salary credit as Provided under Section
Eighteen of this Act.
"(g) Monthly salary credit - The compensation base for contributions and benefits as indicated in the
schedule in Section Eighteen of this Act.
"(h) Monthly - The period from one end of the last payroll period of the preceding month to the end of
the last payroll period of the current month if compensation is on hourly, daily or weekly basis; if on
any other basis, 'monthly' shall mean a period of one (1) month.
"(i) Contribution - The amount paid to the SSS by and on behalf of the members in accordance with
Section Eighteen of this Act.
"(j) Employment - Any service performed by an employee for his employer except:
"(1) Employment purely casual and not for the purpose of occupation or business of the employer;
"(2) Service performed on or in connection with an alien vessel by an employee if he is employed

when such vessel is outside the Philippines;
"(3) Service performed in the employ of the Philippine Government or instrumentality or agency
thereof;
"(4) Service performed in the employ of a foreign government or international organization, or their
wholly-owned instrumentality: Provided, however, That this exemption notwithstanding, any foreign
government, international organization or their wholly-owned instrumentality employing workers in
the Philippines or employing Filipinos outside of the Philippines, may enter into an agreement with the
Philippine Government for the inclusion of such employees in the SSS except those already covered by
their respective civil service retirement systems: Provided, further, That the terms of such agreement
shall conform with the provisions of this Act on coverage and amount of payment of contributions and
benefits: Provided, finally, That the provisions of this Act shall be supplementary to any such
agreement; and
"(5) Such other services performed by temporary and other employees which may be excluded by
regulation of the Commission. Employees of bona fide independent contractors shall not be deemed
employees of the employer engaging the service of said contractors.
"(k) Beneficiaries - The dependent spouse until he or she remarries, the dependent legitimate,
legitimated or legally adopted, and illegitimate children, who shall be the primary beneficiaries of the
member: Provided, That the dependent illegitimate children shall be entitled to fifty percent (50%) of
the share of the legitimate, legitimated or legally adopted children: Provided, further, That in the
absence of the dependent legitimate, legitimated children of the member, his/her dependent illegitimate
children shall be entitled to one hundred percent (100%) of the benefits. In their absence, the
dependent parents who shall be the secondary beneficiaries of the member. In the absence of all the
foregoing, any other person designated by the member as his/her secondary beneficiary.
"(l) Contingency - The retirement, death, disability, injury or sickness and maternity of the member.
"(m) Average monthly salary credit - The result obtained by dividing the sum of the last sixty (60)
monthly salary credits immediately preceding the semester of contingency by sixty (60), or the result
obtained by dividing the sum of all the monthly salary credits paid prior to the semester of contingency
by the number of monthly contributions paid in the same period, whichever is greater: Provided, That
the injury or sickness which caused the disability shall be deemed as the permanent disability for the
purpose of computing the average monthly salary credit.
"(n) Average daily salary credit- The result obtained by dividing the sum of the six (6) highest monthly
salary credits in the twelve-month period immediately preceding the semester of contingency by one
hundred eighty (180).
"(o) Semester - A period of two (2) consecutive quarters ending in the quarter of contingency.
"(p) Quarter - A period of three (3) consecutive calendar months ending on the last day of March, June,
September and December.
"(q) Credited years of service - For a member covered prior to January nineteen hundred and eighty
five (1985) minus the calendar year of coverage plus the number of calendar years in which six (6) or
more contributions have been paid from January nineteen hundred and eighty five (1985) up to the
calendar year containing the semester prior to the contingency. For a member covered in or after
January nineteen hundred and eighty five (1985), the number of calendar years in which six (6) or
more contributions have been paid from the year of coverage up to the calendar year containing the
semester prior to the contingency: Provided, That the Commission may provide for a different number
of contributions in a calendar year for it to be considered as a credited year of service.
"(r) Member - The worker who is covered under Section Nine and Section Nine-A of this Act.
"(s) Self-employed - Any person whose income is not derived from employment, as defined under this
Act, as well as those workers enumerated in Section Nine-A hereof.
"(t) Net earnings - Net income before income taxes plus non-cash charges such as depreciation and
depletion appearing in the regular financial statement of the issuing or assuming institution.
"(u) Fixed charges - Recurring expense such as amortization of debt discount or rentals for leased
properties, including interest on funded and unfunded debt.
"SEC. 9. Coverage. - (a) Coverage in the SSS shall be compulsory upon all employees not over sixty
(60) years of age and their employers: Provided, That in the case of domestic helpers, their monthly
income shall not be less than One thousand pesos (P1,000.00) a month: Provided, further, That any
benefit already earned by the employees under private benefit plans existing at the time of the approval
of this Act shall not be discontinued, reduced or otherwise impaired: Provided, further, That private
plans which are existing and in force at the time of compulsory coverage shall be integrated with the
plan of the SSS in such a way where the employer's contribution to his private plan is more than that
required of him in 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 benefit plan and to the SSS shall be the same as his contribution to his private
benefit plan before the compulsory coverage: Provided, further, 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 contributions thereto as a result of the
integration, shall be subject to agreements between the employers and employees concerned: Provided,
further, 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:
Provided, finally, 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.
"(b) Spouses who devote full time to managing the household and family affairs, unless they are also
engaged in other vocation or employment which is subject to mandatory coverage, may be covered by
the SSS on a voluntary basis.
"(c) Filipinos recruited by foreign-based employers for employment abroad may be covered by the SSS
on a voluntary basis.
"SEC. 9-A. Compulsory Coverage of the Self-Employed. - Coverage in the SSS shall also be
compulsory upon such self-employed persons as may be determined by the Commission under such
rules and regulations as it may prescribe, including but not limited to the following:
"1. All self-employed professionals;
"2. Partners and single proprietors of businesses;
"3. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the
definition of the term "employee" in Section 8 (d) of this Act;
"4. Professional athletes, coaches, trainers and jockeys; and
"5. Individual farmers and fishermen.

"Unless otherwise specified herein, all provisions of this Act applicable to covered employees shall
also be applicable to the covered self-employed persons.
"SEC. 10. Effective Date of Coverage. - 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 the self-employed person shall take effect upon his registration with the SSS.
"SEC. 11. Effect of Separation from Employment. - When an employee under compulsory coverage is
separated from employment, his employer's contribution on his account and his obligation to pay
contributions arising from that employment shall cease at the end of the month of separation, but said
employee shall be credited with all contributions paid on his behalf and entitled to benefits according
to the provisions of this Act. He may, however, continue to pay the total contributions to maintain his
right to full benefit.
"SEC. 11-A. Effect of Interruption of Business or Professional Income. - If the self-employed realizes
no income in any given month, he shall not be required to pay contributions for that month. He may,
however, be allowed to continue paying contributions under the same rules and regulations applicable
to a separated employee member: Provided, That no retroactive payment of contributions shall be
allowed other than as prescribed under Section Twenty-two-A hereof.
"SEC. 12. Monthly Pension. - (a) The monthly pension shall be the highest of the following amounts:
"(1) The sum of the following:
"(i) Three hundred pesos (P300.00; plus
"(ii) Twenty percent (20%) of the average monthly salary credit; plus
"(iii) Two percent (2%) of the average monthly salary credit for each credited year of service in excess
of ten (10) years; or
"(2) Forth percent (40%) of the average monthly salary credit; or
"(3) One thousand pesos (P1,000.00): Provided, That the monthly pension shall in no case be paid for
an aggregate amount of less than sixty (60) months.
"(b) Notwithstanding the preceding paragraph, the minimum pension shall be One thousand two
hundred pesos (P1,200.00) for members with at least ten (10) credited years of service and Two
thousand four hundred pesos (P2,400.00) for those with twenty (20) credited years of service.
"SEC. 12-A. Dependents' Pension. - Where monthly pension is payable on account of death,
permanent total disability or retirement, dependents' pension equivalent to ten percent (10%) of the
monthly pension or Two hundred fifty pesos (P250.00), whichever is higher, shall also be paid for each
dependent child conceived on or before the date of the contingency but not exceeding five (5),
beginning with the youngest and without substitution: Provided, That where there are legitimate or
illegitimate children, the former shall be preferred.
SEC. 12-B. Retirement Benefits. - (a) A member who has paid at least one hundred twenty (120)
monthly contributions prior to the semester of retirement and who: (1) has reached the age of sixty (60)
years and is already separated from employment or has ceased to be self-employed; or (2) has reached
the age of sixty-five (65) years, shall be entitled for as long as he lives to the monthly pension:
Provided, That he shall have the option to receive his first eighteen (18) monthly pensions in lump sum
discounted at a preferential rate of interest to be determined by the SSS.
"(b) A covered member who is sixty (60) years old at retirement and who does not qualify for pension
benefits under paragraph (a) above, shall be entitled to a lump sum benefit equal to the total
contributions paid by him and on his behalf: Provided, That he is separated from employment and is
not continuing payment of contributions to the SSS on his own.
"(c) The monthly pension shall be suspended upon the reemployment or resumption of self-
employment of a retired member who is less than sixty-five (65) years old. He shall again be subject to
Section Eighteen and his employer to Section Nineteen of this Act.
"(d) Upon the death of the retired member, his primary beneficiaries as of the date of his retirement
shall be entitled to receive the monthly pension: Provided, That if he has no primary beneficiaries and
he dies within sixty (60) months from the start of his monthly pension, his secondary beneficiaries
shall be entitled to a lump sum benefit equivalent to the total monthly pensions corresponding to the
balance of the five-year guaranteed period, excluding the dependents' pension.
"(e) The monthly pension of a member who retires after reaching age sixty (60) shall be the higher of
either: (1) the monthly pension computed at the earliest time he could have retired had he been
separated from employment or ceased to be self-employed plus all adjustments thereto; or (2) the
monthly pension computed at the time when he actually retires.
"SEC. 13. Death Benefits. - Upon the death of a member who has paid at least thirty-six (36) monthly
contributions prior to the semester of death, his primary beneficiaries shall be entitled to the monthly
pension: Provided, That if he has no primary beneficiaries, his secondary beneficiaries shall be entitled
to a lump sum benefit equivalent to thirty-six (36) times the monthly pension. If he has not paid the
required thirty-six (36) monthly contributions, his primary or secondary beneficiaries shall be entitled
to a lump sum benefit equivalent to the monthly pension times the number of monthly contributions
paid to the SSS or twelve (12) times the monthly pension, whichever is higher.
"SEC. 13-A. Permanent Disability Benefits. - (a) Upon the permanent total disability of a member who
has paid at least thirty-six (36) monthly contributions prior to the semester of disability, he shall be
entitled to the monthly pension: Provided, That if he has not paid the required thirty-six (36) monthly
contributions, he shall be entitled to a lump sum benefit equivalent to the monthly pension times the
number of monthly contributions paid to the SSS or twelve (12) times the monthly pension, whichever
is higher. A member who (1) has received a lump sum benefit; and (2) is reemployed or has resumed
self-employment not earlier than one (1) year from the date of his disability shall again be subject to
compulsory coverage and shall be considered a new member.
"(b) The monthly pension and dependents' pension shall be suspended upon the reemployment or
resumption of self-employment or the recovery of the disabled member from his permanent total
disability or his failure to present himself for examination at least once a year upon notice by the SSS.
"(c) Upon the death of the permanent total disability pensioner, his primary beneficiaries as of the date
of disability shall be entitled to receive the monthly pension: Provided, That if he has no primary
beneficiaries and he dies within sixty (60) months from the start of his monthly pension, his secondary
beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pensions
corresponding to the balance of the five-year guaranteed period excluding the dependents' pension.
"(d) The following disabilities shall be deemed permanent total:
"1. Complete loss of sight of both eyes;
"2. Loss of two limbs at or above the ankle or wrists;
"3. Permanent complete paralysis of two limbs;
"4. Brain injury resulting to incurable imbecility or insanity; and
"5. Such cases as determined and approved by the SSS.
"(e) If the disability is permanent partial, and such disability occurs before thirty-six (36) monthly
contributions have been paid prior to the semester of disability, the benefit shall be such percentage of
the lump sum benefit described in the preceding paragraph with due regard to the degree of disability
as the Commission may determine.
"(f) If the disability is permanent total and such disability occurs after thirty-six (36) monthly
contributions have been paid prior to the semester of disability, the benefit shall be the monthly
pension for permanent total disability payable not longer than the period designated in the following
schedule:
Complete and permanent loss of use of
Number of Months
One thumb
10
One index finger
One middle finger
One right finger
One little finger
One big toe
One hand
39
One arm
50
One foot
31
One leg
46
One ear
10
Both ears
20
Hearing of one ear
10
Hearing of both ears
50
Sight of one eye
25
"(g) The percentage degree of disability which is equivalent to the ratio that the designated number of
months of compensability bears to seventy-five (75), rounded to the next higher integer, shall not be
additive for distinct, separate and unrelated permanent partial disabilities, but shall be additive for
deteriorating and related permanent partial disabilities to a maximum of one hundred percent (100%),
in which case, the member shall be deemed as permanently totally disabled.
"(h) In case of permanent partial disability, the monthly pension benefit shall be given in lump sum if it
is payable for less than twelve (12) months.
"(i) For the purpose of adjudicating retirement, death and permanent total disability pension benefits,
contributions shall be deemed paid for the months during which the member received partial disability
pension: Provided, That such contributions shall be based on his last contribution prior to his disability.
"(j) Should a member who is on partial disability pension retire or die, his disability pension shall cease
upon his retirement or death.
"SEC. 13-B. Funeral Benefit. - A funeral grant equivalent to Twelve thousand pesos (P12,000.00) shall
be paid, in cash or in kind, to help defray the cost of funeral expenses upon the death of a member,
including permanently totally disabled member or retiree.
"SEC. 14. Sickness Benefit. - (a) A member who has paid at least three (3) monthly contributions in
the twelve-month period immediately preceding the semester of sickness or injury and is confined
therefor for more than three (3) days in a hospital or elsewhere with the approval of the SSS, shall, for
each day of compensable confinement or a fraction thereof, be paid by his employer, or the SSS, if
such person is unemployed or self-employed, a daily sickness benefit equivalent to ninety percent
(90%) of his average daily salary credit, subject to the following conditions:
"(1) In no case shall the daily sickness benefit be paid longer than one hundred twenty (120) days in
one (1) calendar year, nor shall any unused portion of the one hundred twenty (120) 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) The daily sickness benefit shall not be paid for more than two hundred forty (240) days on account
of the same confinement; and
"(3) The employee member shall notify his employer of the fact of his sickness or injury within five (5)
calendar days after the start of his confinement unless such confinement 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 necessary: Provided, That if the member is unemployed or self-
employed, he shall directly notify the SSS of his confinement within five (5) calendar days after the
start thereof unless such confinement is in a hospital in which case notification is also not necessary:
Provided, further, That in cases where notification is necessary, the confinement shall be deemed to
have started not earlier than the fifth day immediately preceding the date of notification.
"(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: Provided, That such allowance shall begin only after all sick leaves of
absence with full pay to the credit of the employee member shall have been exhausted.
"(c) One hundred percent (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 thereof: Provided, That the employer has notified the SSS of the confinement within five (5)
calendar days after receipt of the notification from the employee member: Provided, further, That if the
notification to the SSS is made by the employer beyond five (5) calendar days after receipt of the
notification from the employee member, said employer shall be reimbursed only for each day of
confinement starting from the tenth calendar day immediately preceding the date of notification to the
SSS: Provided, finally, That the SSS shall reimburse the employer or pay the unemployed member
only for confinement within the one-year period immediately preceding the date the claim for benefit
or reimbursement is received by the SSS, except confinement in a hospital in which case the claim for
benefit or reimbursement must be filed within one (1) year from the last day of confinement.
"(d) Where the employee member 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 member as required in
this section.
"(e)The claim of reimbursement shall be adjudicated by the SSS within a period of two (2) months
from receipt thereof: Provided, That should no payment be received by the employer within one (1)
month after the period prescribed herein for adjudication, the reimbursement shall thereafter earn
simple interest of one percent (1%) per month until paid.
"(f) The provisions regarding the notification required of the member 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.
"SEC. 14-A. Maternity Leave Benefit. - A female member who has paid at least three (3) monthly
contributions in the twelve-month period immediately preceding the semester of her childbirth or
miscarriage shall be paid a daily maternity benefit equivalent to one hundred percent (100%) of her
average daily salary credit for sixty (60) days or seventy-eight (78) days in case of caesarian delivery,
subject to the following conditions:
"(a) That the employee shall have notified her employer of her pregnancy and the probable date of her
childbirth, which notice shall be transmitted to the SSS in accordance with the rules and regulations it
may provide;
"(b) The full payment shall be advanced by the employer within thirty (30) days from the filing of the
maternity leave application;
"(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits
Provided by this Act for the same period for which daily maternity benefits have been received;
"(d) That the maternity benefits Provided under this section shall be paid only for the first four (4)
deliveries or miscarriages;
"(e) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the
amount of maternity benefits advanced to the employee by the employer upon receipt of satisfactory
proof of such payment and legality thereof; and
"(f) That if an employee member should give birth or suffer miscarriage without the required
contributions having been remitted for her by her employer to the SSS, or without the latter having
been previously notified by the employer of the time of the pregnancy, the employer shall pay to the
SSS damages equivalent to the benefits which said employee member would otherwise have been
entitled to.
"SEC. 15. Non-Transferability of Benefits. - The SSS shall promptly pay the benefits Provided in this
Act to such persons as may be entitled thereto in accordance with the provisions of this Act: Provided,
That the SSS shall pay the retirement benefits on the day of contingency to qualified members who
have submitted the necessary documents at least six (6) months before: Provided, further, That the
beneficiary who is a national of a foreign country which does not extend benefits to a Filipino
beneficiary residing in the Philippines, or which is not recognized by the Philippines, shall not be
entitled to receive any benefit under this Act: Provided, further, That notwithstanding the foregoing,
where the best interest of the SSS will be served, the Commission may direct payments without regard
to nationality or country of residence: Provided, further, That if the recipient is a minor or a person
incapable of administering his own affairs, the Commission shall appoint a representative under such
terms and conditions as it may deem proper: Provided, further, That such appointment shall not be
necessary in case the recipient is under the custody of or living with the parents or spouse of the
member in which case the benefits shall be paid to such parents or spouse, as representative payee of
the recipient. Such benefits are not transferable and no power of attorney or other document executed
by those entitled thereto in favor of any agent, attorney or any other person for the collection thereof
on their behalf shall be recognized, except when they are physically unable to collect personally such
benefits: Provided, further, That in case of death benefits, if no beneficiary qualifies under this Act,
said benefits shall be paid to the legal heirs in accordance with the law of succession.
"SEC. 16. Exemption from Tax, Legal Process and Lien. -- All laws to the contrary notwithstanding,
the SSS and all its assets and properties, all contributions collected and all accruals thereto and income
or investment earnings therefrom as well as all supplies, equipment, papers or documents shall be
exempt from any tax, assessment, fee, charge, or customs or import duty; and all benefit payments
made by the SSS shall likewise be exempt from all kinds of taxes, fees or charges, and shall not 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
member to the SSS. No tax measure of whatever nature enacted shall apply to the SSS, unless it
expressly revokes the declared policy of the State in Section 2 hereof granting tax-exemption to the
SSS. Any tax assessment imposed against the SSS shall be null and void. (As amended by Sec. 9, P.D.
No. 24, S. 1972; and Sec. 14, P. D. No. 735, S. 1975).
"SEC. 17. Fee of Agents, Attorneys, Etc. - No agent, attorney or other person in charge of the
preparation, filing or pursuing any claim for benefit under this Act shall demand or charge for his
services any fee, and any stipulation to the contrary shall be null and void. The retention or deduction
of any amount from any benefit granted under this Act for the payment of fees for such services is
prohibited: Provided, however, That any member of the Philippine Bar who appears as counsel in any
case heard by the Commission shall be entitled to attorneys' fees not exceeding ten percent (10%) of
the benefits awarded by the Commission, which fees shall not be payable before the actual payment of
the benefits, and any stipulation to the contrary shall be null and void.
"Any violation of the provisions of this Section shall be punished by a fine of not less than Five
hundred pesos (P500.00) nor more than Five thousand pesos (P5,000.00), or imprisonment for not less
than six (6) months nor more than one (1) year, or both, at the discretion of the court.
"SEC. 18. Employee's Contributions. - (a) Beginning as of the last day of the calendar month when an
employee's compulsory coverage takes effect and every month thereafter during his employment, the
employer shall deduct and withhold from such employee's monthly salary, wage, compensation or
earnings, the employee's contribution in an amount corresponding to his salary, wage, compensation or
earnings during the month in accordance with the following schedule:
SALARY BRACKET
RANGE OF COMPENSATION
MONTHLY SALARY CREDIT
MONTHLY CONTRIBUTION
EMPLOYER
EMPLOYEE
TOTAL
I
1,000.00 - 1,249.99
1000
50.70
33.30
84.00
II
1,250.00 - 1,749.99
1500
76.00
50.00
126.00
III
1,750.00 - 2,249.99
2000
101.30
66.70
168.00
IV
2,250.00 - 2,749.99
2500
126.70
83.30
210.00
2,750.00 - 3,249.99
3000
152.00
100.00
252.00
VI
3,250.00 - 3,749.99
3500
177.30
116.70
294.00
VII
3,750.00 - 4,249.99
4000
202.70
133.30
336.00
VIII
4,250.00 - 4,749.99
4500
228.00
150.00
378.00
IX
4,750.00 - 5,249.99
5000
253.30
166.70
420.00
5,250.00 - 5,749.99
5500
278.70
183.70
462.40
XI
5,750.00 - 6,249.99
6000
304.00
200.00
504.00
XII
6,250.00 - 6,749.99
6500
329.30
216.78
546.00
XIII
6,750.00 - 7,249.99
7000
354.70
233.30
588.00
XIV
7,250.00 - 7,749.99
7500
380.00
250.00
630.00
XV
7,750.00 - 8.249.99
8000
403.30
266.70
672.00
XVI
8,250.00 - 8,749.99
8500
430.70
283.30
714.00
XVII
8,750.00 - OVER
9000
456.00
300.00
756.00
"The foregoing schedule of contribution shall also apply to self-employed and voluntary members.
"The maximum monthly salary credit shall be Nine thousand pesos (P9,000.00) effective January
Nineteen hundred and ninety six (1996); Provided, That it shall be increased by One thousand pesos
(P1,000.00) every year thereafter until it shall have reached Twelve thousand pesos (P12,000.00) by
Nineteen hundred and ninety nine (1999): Provided, further, That the minimum and maximum monthly
salary credits as well as the rate of contributions may be fixed from time to time by the Commission
through rules and regulations taking into consideration actuarial calculations and rate of benefits,
subject to the approval of the President of the Philippines.
"SEC. 19. Employer's Contributions. - (a) Beginning as of the last day of the month when an
employee's compulsory coverage takes effect and every month thereafter during his employment, his
employer shall pay, with respect to such covered employee, the employer's contribution in accordance
with the schedule indicated in Section Eighteen of this Act. Notwithstanding any contract to the
contrary, an employer shall not deduct, directly or indirectly, from the compensation of his employees
covered by the SSS or otherwise recover from them the employer's contributions with respect to such
employees.
"(b) The remittance of such contributions by the employer shall be supported by a quarterly collection
list to be submitted to the SSS at the end of each calendar quarter indicating the correct ID number of
the employer, the correct names and the SSS numbers of the employees and the total contributions paid
for their account during the quarter.
"SEC. 19-A. Contributions of the Self-Employed Member. - The contributions to the SSS of the self-
employed member shall be determined in accordance with Section Eighteen of this Act: Provided, That
the monthly earnings declared by the self-employed member at the time of his registration with the
SSS shall be considered as his monthly compensation and he shall pay both the employer and the
employee contributions: Provided, further, That the contributions of self-employed persons earning
One thousand pesos (P1,000.00) monthly or below may be reduced by the Commission.
"The monthly earnings declared by the self-employed member at the time of his registration shall
remain the basis of his monthly salary credit, unless he makes another declaration of his monthly
earnings, in which case such latest declaration becomes the new basis of his monthly salary credit.
"SEC. 20. Government Contribution. - As the contribution of the Government to the operation of the
SSS, Congress shall annually appropriate out of any funds in the National Treasury not otherwise
appropriated, the necessary sum or sums to meet the estimated expenses of the SSS for each ensuing
year. In addition to this contribution, Congress shall appropriate from time to time such sum or sums as
may be needed to assure the maintenance of an adequate working balance of the funds of the SSS as
disclosed by suitable periodic actuarial studies to be made of the operations of the SSS.
"SEC. 21. Government Guarantee. -- The benefits prescribed in this Act shall not be diminished and to
guarantee said benefits the Government of the Republic of the Philippines accepts general
responsibility for the solvency of the SSS.
"SEC. 22. Remittance of Contributions. -- (a) The contributions imposed in the preceding Section shall
be remitted to the SSS within the first ten (10) 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 percent (3%) 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: Provided, That upon separation of an employee, any
contribution so paid in advance but not due shall be credited or refunded to his employer.
"(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.
"The right to institute the necessary action against the employer may be commenced within twenty
(20) years from the time the delinquency is known or the assessment is made by the SSS, or from the
time the benefit accrues, as the case may be.
"(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 (3) 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: Provided,
That the SSS shall not be barred from determining and collecting the true and correct contributions due
the SSS even after full payment pursuant to this paragraph, nor shall the employer be relieved of his
liability under Section Twenty-eight of this Act.
"SEC. 22-A. Remittance of Contributions of Self-Employed Member. - Self-employed members shall

remit their monthly contributions quarterly on such dates and schedules as the Commission may
specify through rules and regulations: Provided, That no retroactive payment of contributions shall be
allowed, except as Provided in this Section.
"SEC. 23. Method of Collection and 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, stamps, coupons, tickets, or other reasonable devices that the
Commission may adopt.
"SEC. 24. Employment Records and 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: Provided, That if an employee subject to compulsory coverage should die or
become sick or disabled or reach the age of sixty (60) without the SSS having previously received any
report or written communication about him from his employer, the said employer shall pay to the SSS
damages equivalent to the benefits to which said employee member would have been entitled had his
name been reported on time by the employer to the SSS, except that in case of pension benefits, the
employer shall be liable to pay the SSS damages equivalent to the accumulated pension due as of the
date of settlement of the claim or to the five (5) years' pension, including dependents' pension:
Provided, further, That if the contingency occurs within thirty (30) days from the date of employment,
the employer shall be relieved of his liability for damages: Provided, further, That any person or entity
engaging the services of an independent contractor shall be subsidiarily liable with such contractor for
any civil liability incurred by the latter under this Act: Provided, finally, That the same person or entity
engaging the services of an independent contractor shall require such contractor to post a surety bond
to guarantee the payment of the worker's benefits.
"(b) Should the employer misrepresent the true date of employment of the employee member or remit
to the SSS contributions which are less than those required in this Act or fail to remit any contribution
due prior to the date of contingency, resulting in a reduction of benefits, the employer shall pay to the
SSS damages equivalent to the difference between the amount of benefit to which the employee
member or his beneficiary is entitled had the proper contributions been remitted to the SSS and the
amount payable on the basis of contributions actually remitted: Provided, That if the employee
member or his beneficiary is entitled to pension benefits, damages shall be equivalent to the
accumulated pension due as of the date of settlement of the claim or to the five (5) years' pension,
whichever is higher, including dependents' pension.
"In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof, the employer
shall also be liable for the corresponding unremitted contributions and penalties thereon.
"(c) The records and reports duly accomplished and submitted to the SSS by the employer or the
member, as the case may be, shall be kept confidential by the SSS except in compliance with a
subpoena duces tecum issued by the Court, shall not be divulged without the consent of the SSS
President 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.
"The SSS may also require each employer to submit, with respect to the persons in his employ, reports
needed for the effective administration of this Act.
"(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 accordance with such procedure as the
SSS may adopt: Provided, That in case of employees who have been assigned registration numbers by
virtue of a previous employment, such numbers originally assigned to them should be used for
purposes of this Section: Provided, further, That the issuance of such registration numbers by the SSS
shall not exempt the employer from complying with the provisions of paragraph (a) of this Section.
"(f) Notwithstanding any law to the contrary, microfilm, or non-erasable optical disk and other similar
archival media copies of original SSS records and reports, duly certified by the official custodian
thereof, shall have the same evidentiary value as the originals and be admissible as evidence in all legal
proceedings.
"(g) Notwithstanding any law to the contrary, local government units shall, prior to issuing any annual
business license or permit, require submission of certificate of SSS coverage and compliance with the
provisions of this Act: Provided, That the certification or clearance shall be issued by the SSS within
five (5) working days from receipt of the request.
"SEC. 24-A. Report and Registration of the Self-Employed Member. - Each covered self-employed
person shall, within thirty (30) days from the first day he started the practice of his profession or
business operations register and report to the SSS his name, age, civil status, and occupation, average
monthly net income and his dependents.
"SEC. 25. Deposits and Disbursements. - All money paid to or collected by the SSS every year under
this Act, and all accruals thereto shall be deposited, administered and disbursed in the same manner
and under the same conditions and requirements as Provided by law for other public special funds:
Provided, That not more than twelve percent (12%) of the total yearly contributions plus three percent
(3%) of other revenues shall be disbursed for operational expenses such as salaries and wages, supplies
and materials, depreciation and the maintenance of offices of the SSS: Provided, further, That if the
expenses in any year are less than the maximum amount permissible, the difference shall not be
availed of as additional expenses in the following years.
"SEC. 26. Investment of Reserve Funds. - All revenues of the SSS that are not needed to meet the
current administrative and operational expenses incidental to the carrying out of this Act shall be
accumulated in a fund to be known as the "Reserve Fund." Such portions of the Reserve Fund as are
not needed to meet the current benefit obligations thereof shall be known as the "Investment Reserve
Fund" which the Commission shall manage and invest with the skill, care, prudence and diligence
necessary under the circumstances then prevailing that a prudent man acting in like capacity and
familiar with such matters would exercise in the conduct of an enterprise of a like character and with
similar aims. Pursuant thereto, and in line with the basic principles of safety, good yield and liquidity,
the Commission shall invest the funds to earn an annual income not less than the average rates of
treasury bills or any other acceptable market yield indicator in any or in all of the following:
"(a) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the
Philippines, or in bonds, securities, promissory notes or other evidence of indebtedness to which the
full faith, credit and unconditional guarantee of the Government of the Philippines is pledged;
"(b) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the
Philippines, or any agencies or instrumentalities to finance domestic infrastructure projects such as
roads, bridges, ports, telecommunications, and other similar projects: Provided, That the instruments
issued by an agency or instrumentality of the government shall be guaranteed by the Government of
the Philippines or any government financial institution or acceptable multilateral agency: Provided,
further, That the SSS shall have priority over the revenues of the projects: Provided, finally, That such
investments shall not exceed thirty percent (30%) of the Investment Reserve Fund;
"(c) In bonds, securities, promissory notes or other evidence of indebtedness of government financial
institutions or government corporations with acceptable credit or guarantee: Provided, That such
"(d) In bonds, securities, promissory notes or other evidence of indebtedness of any bank doing
business in the Philippines and in good standing with the Bangko Sentral ng Pilipinas to finance loans
to private corporations doing business in the Philippines, including schools, hospitals, small-and-
medium scale industries, cooperatives and non-governmental organizations, in which case the
collaterals or securities shall be assigned to the SSS under such terms and conditions as the
Commission may prescribe: Provided, That in the case of bank deposits, they shall not exceed at any
time the unimpaired capital and surplus or total private deposits of the depository bank, whichever is
smaller: Provided, further, That said bank shall first have been designated as a depository for this
purpose by the Monetary Board of the Bangko Sentral ng Pilipinas: Provided, finally, That such
investments shall not exceed forty percent (40%) of the Investment Reserve Fund;
"(e) In bonds, securities, promissory notes or other evidence of indebtedness of shelter agencies of the
National Government or financial intermediaries to finance housing loans of members; and in long-
term direct individual or group housing loans giving priority to the low-income groups, up to a
maximum of ninety percent (90%) of the appraised value of the properties to be mortgaged by the
borrowers; and
"In short and medium term loans to members such as salary, educational, livelihood, marital, calamity
and emergency loans: Provided, That not more than thirty five percent (35%) of the Investment
Reserve Fund at any time shall be invested for housing purposes: Provided, further, That not more than
ten percent (10%) of the Investment Reserve Fund shall be invested in short and medium term loans;
"(f) In bonds, securities, promissory notes or other evidence of indebtedness of educational or medical
institutions to finance the construction, improvement and maintenance of schools and hospitals and
their equipment and facilities: Provided, That such investments shall not exceed ten percent (10%) of
the Investment Reserve Fund;
"(g) In real estate property, including shares of stocks involving real estate property, and investment
secured by first mortgages on real estate or other collaterals acceptable to the SSS: Provided, That such
projects and investments shall, in the determination of the Commission, redound to the benefit of the
SSS, its members, as well as the general public: Provided, further, That investment in real estate
property, including shares of stocks involving real estate property shall not exceed five percent (5%) of
the Investment Reserve Fund: Provided, finally, That investments in other income earning projects and
investments secured by first mortgages or other collaterals shall not exceed twenty five percent (25%)
of the Investment Reserve Fund;
"(h) In bonds, debentures, securities, promissory notes or other evidence of indebtedness of any prime
corporation or multilateral institutions to finance domestic projects: Provided, That the issuing or
assuming entity or its predecessors shall not have defaulted in the payment of interest on any of its
securities and that during each of any three (3) including the last two (2) of the five (5) fiscal years
next preceding the date of acquisition by the SSS of such bonds, debentures or other evidence of
indebtedness, the net earnings of the issuing or assuming institution available for its fixed charges, as
defined in this Act, shall have been not less than one and one-quarter times the total of its fixed charges
for such year: Provided, further, That such investments shall not exceed thirty percent (30%) of the
Investment Reserve Fund;
"(i) In preferred or common shares of stocks listed or about to be listed in the stock exchange or
options or warrants to such stocks or, subject to prior approval of the Bangko Sentral ng Pilipinas, such
other risk management instruments of any prime or solvent corporation or financial institution created
or existing under the laws of the Philippines with proven track record of profitability over the last three
(3) years and payment of dividends at least once over the same period: Provided, That such
"(j) In domestic or foreign mutual funds in existence for at least three (3) years; Provided, That such
investments shall not exceed twenty percent (20%) of the Investment Reserve Fund: Provided, further,
That investments in foreign mutual funds shall not exceed one percent (1%) of the Investment Reserve
Fund in the first year which shall be increased by one percent (1%) for each succeeding year, but in no
case shall it exceed seven and one-half percent (7.5%) of the Investment Reserve Fund;
"(k) In foreign currency deposits or triple "A" foreign currency denominated debts, prime and non-
speculative equities, and other Bangko Sentral ng Pilipinas approved financial instruments or other
assets issued in accordance with the existing laws of the countries where such financial instruments are
issued: Provided, That these instruments or assets are listed in bourses of the respective countries
where these instruments or assets are issued: Provided, further, That the issuing company has proven
track of record of profitability over the last three (3) years and a record of regular dividend pay-out
over the same period: Provided, finally, That such investments shall not exceed one percent (1%) of
the Investment Reserve Fund in the first year which shall be increased by one percent (1%) for each
succeeding year, but in no case shall it exceed seven and one-half percent (7.5%) of the Investment
Reserve Fund;
"(l) In loans secured by such collaterals like cash, government securities or guarantees of multilateral
institutions: Provided, That such investments shall not exceed thirty percent (30%) of the Investment
Reserve Fund; and
"(m) In other Bangko Sentral ng Pilipinas approved investment instruments with the same intrinsic
quality as those enumerated in paragraphs (a) to (l) hereof, subject to the policies and guidelines which
the Commission may formulate.
"No portion of the Investment Reserve Fund or income thereof shall accrue to the general fund of the
National Government or to any of its agencies or instrumentalities, including government-owned or
controlled corporations, except as may be allowed under this Act: Provided, That no portion of the
Investment Reserve Fund shall be invested for any purpose or in any instrument, institution or industry
over and above the prescribed cumulative ceilings as follows:
40% in private securities
35% in housing
30% in real estate related investments
10% in short and medium-term member loans
30% in government financial institutions and corporations
30% in infrastructure projects
15% in any particular industry
7.5% in foreign-currency denominated investments
"SEC. 26-A. Fund Managers. - As part of its investment operations, the SSS may appoint local or, in
the absence thereof, foreign fund managers to manage the Investment Reserve Fund, as it may deem
appropriate.
"SEC. 26-B. Mortgagor Insurance Account. - (a) As part of its investment operations, the SSS shall act
as insurer of all or part of its interest on SSS properties mortgaged to the SSS, or lives of mortgagors
whose properties are mortgaged to the SSS. For this purpose, the SSS shall establish a separate account
to be known as the "Mortgagors' Insurance Account." All amounts received by the SSS in connection
with the aforesaid insurance operations shall be placed in the Mortgagors' Insurance Account. The
assets and liabilities of the Mortgagors' Insurance Account shall at all times be clearly identifiable and
distinguishable from the assets and liabilities in all other accounts of the SSS. Notwithstanding any
provision of law to the contrary, the assets held in the Mortgagors' Insurance Account shall not be
chargeable with the liabilities arising out of any other business the SSS may conduct but shall be held
and applied exclusively for the benefit of the owners or beneficiaries of the insurance contracts issued
by the SSS under this paragraph.
"(b) The SSS may insure any of its interest or part thereof with any private company or reinsurer. The
Insurance Commission or its authorized representatives shall make an examination into the financial
condition and methods of transacting business of the SSS at least once in two (2) years, but such
examination shall be limited to the insurance operation of the SSS as authorized under this paragraph
and shall not embrace the other operations of the SSS; and the report of said examination shall be
submitted to the Commission and a copy thereof shall be furnished the Office of the President of the
Philippines within a reasonable time after the close of the examination: Provided, That for each
examination, the SSS shall pay to the Insurance Commission an amount equal to the actual expense of
the Insurance Commission in the conduct of examination, including the salaries of the examiners and
of the actuary of the Insurance Commission who have been assigned to make such examination for the
actual time spent in said examination: Provided, further, That the general law on insurance and the
rules and regulations promulgated thereunder shall have suppletory application insofar as it is not in
conflict with this Act and its rules and regulations.
"SEC. 27. Records and Reports. - The SSS President shall keep and cause to keep records of operations
of the funds of the SSS and of disbursements thereof and all accounts of payments made out of said
funds. During the month of January of each year, the SSS President shall prepare for submission to the
President of the Philippines and to Congress of the Philippines a report of operations of the SSS during
the preceding year, including statistical data on the number of persons covered and benefited, their
occupations and employment status, the duration and amount of benefits paid, the finances of the SSS
at the close of the said year, and recommendations. He shall also cause to be published in two (2)
newspapers of general circulation in the Philippines a synopsis of the annual report, showing in
particular the status of the finances of the SSS and the benefits administered.
"SEC. 28. Penal Clause. - (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 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 Article One hundred seventy-two 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 member, employer or the SSS, shall be fined
not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) and
imprisoned for not less than six (6) years and one (1) day nor more than twelve (12) years.
"(c) Whoever buys, sells, offers for sale, uses, transfers or takes or gives in exchange, or pledges or
gives in pledge, except as authorized in this Act or in regulations made pursuant thereto, any stamp,
coupon, ticket, book or other device, prescribed pursuant to Section Twenty-three hereof by the
Commission for the collection or payment of contributions required herein, shall be fined not less than
Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or imprisoned
for not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the
discretion of the court.
"(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 Five thousand pesos (P5,000.00) non more than Twenty thousand pesos
(P20,000.00) or imprisoned for not less than six years (6) and one (1) day nor more than twelve (12)
years, 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 thousand pesos
(P5,000.00) nor more than Twenty thousand pesos (P20,000.00), or imprisonment for not less than six
(6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court:
Provided, That where the violation consists in failure or refusal to register employees or himself, in
case of the covered self-employed or to deduct contributions from the employees' compensation and
remit the same to the SSS, the penalty shall be a fine of not less Five thousand pesos (P5,000.00) nor
more than Twenty thousand pesos (P20,000.00) and imprisonment for not less than six (6) years and
one (1) day nor more than twelve (12) years.
"(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 for the
penalties Provided in this Act for the offense.
"(g) Any employee of the SSS who receives or keeps funds or property belonging, payable or
deliverable to the SSS 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 Article Two hundred seventeen 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 deduction to the SSS within thirty (30) 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 Article Three hundred fifteen of the Revised
Penal Code.
"(i) Criminal action arising from a violation of the provisions of this Act may be commenced by the
SSS or the employee concerned either under this Act or in appropriate cases under the Revised Penal
Code: Provided, That such criminal action may be filed by the SSS in the city or municipality where
the SSS office is located, if the violation was committed within its territorial jurisdiction or in Metro
Manila, at the option of the SSS.
"SEC. 29. Government Aid. - The establishment of the SSS shall not disqualify the members and
employers from receiving such government assistance, financial or otherwise, as may be Provided.
"SEC. 30. Transitory Clause. - Any employer who is delinquent or has not remitted all contributions
due and payable to the SSS may, within six (6) months from the effectivity of this Act, remit said
contributions or submit a proposal to pay the same in installment within a period of not more than
twelve (12) months from the effectivity of this Act without incurring the prescribed penalty, subject to
the implementing rules and regulations which the Commission may prescribe: Provided, That the
employer submits the corresponding collection lists together with the remittance or proposal to pay in
installments: Provided, further, That in case the employer fails to remit contributions within the six-
month grace period or defaults in the payment of any amortization Provided the approved proposal, the
prescribed penalty shall be imposed from the time the contributions first became due as Provided in
Section 22 (a) hereof."
THE
GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997
AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS AMENDED, EXPANDING AND

INCREASING THE COVERAGE AND BENEFITS OF THE GOVERNMENT SERVICE
INSURANCE SYSTEM, INSTITUTING REFORMS THEREIN AND FOR OTHER PURPOSES.
SECTION 1. Presidential Decree No. 1146, as amended, otherwise known as the "Revised
Government Service Insurance Act of 1977", is hereby further amended to read as follows:
"SECTION 1. Title. -The title of this Act shall be: "The Government Service Insurance System Act of
1997."
"A. DEFINITIONS
"SEC. 2. Definition of terms.- Unless the context otherwise indicates, the following terms shall mean:
"(a) GSIS- The Government Service Insurance System created by Commonwealth Act No. 186;
"(b) Board- The Board of Trustees of the Government Service Insurance System;
"(c) Employer- The national government, its political subdivisions, branches, agencies or
instrumentalities, including government-owned or controlled corporations, and financial institutions
with original charters, the constitutional commissions and the judiciary;
"(d) Employee or Member- Any person receiving compensation while in the service of an employer as
defined herein, whether by election or appointment, irrespective of status of appointment, including
barangay and Sanggunian officials;
"(e) Active Member- A member who is not separated from the service;
"(f) Dependents- Dependents shall be the following: (a) the legitimate spouse dependent for support
upon the member or pensioner; (b) the legitimate, legitimated, legally adopted child, including the
illegitimate child, who is unmarried, not gainfully employed, not over the age of majority, or is over
the age of majority but incapacitated and incapable of self-support due to a mental or physical defect
acquired prior to age of majority; and (c) the parents dependent upon the member for support;
"(g) Primary beneficiaries- The legal dependent spouse until he/she remarries and the dependent
children;
"(h) Secondary beneficiaries- The dependent parents and, subject to the restrictions on dependent
children, the legitimate descendants;
"(i) Compensation- The basic pay or salary received by an employee, pursuant to his
election/appointment, excluding per diems, bonuses, overtime pay, honoraria, allowances and any
other emoluments received in addition to the basic pay which are not integrated into the basic pay
under existing laws;
"(j) Contribution- The amount payable to the GSIS by the member and the employer in accordance
with Section 5 of this Act;
"(k) Current Daily Compensation- The actual daily compensation or the actual monthly compensation
divided by the number of working days in the month of contingency but not to exceed twenty-two (22)
days;
"(l) Average Monthly Compensation (AMC)- The quotient arrived at after dividing the aggregate
compensation received by the member during his last thirty-six (36) months of service preceding his
separation/retirement/ disability/death by thirty-six (36), or by the number of months he received such
compensation if he has less than thirty-six (36) months of service: Provided, That the average monthly
compensation shall in no case exceed the amount and rate as may be respectively set by the Board
under the rules and regulations implementing this Act as determined by the actuary of the GSIS:
Provided, further, That initially the average monthly compensation shall not exceed Ten thousand
pesos (P10,000.00), and premium shall be nine percent (9%) and twelve percent (12%) for employee
and employer covering the AMC limit and below and two percent (2%) and twelve percent (12%) for
employee and employer covering the compensation above the AMC limit;
"(m) Revalued average monthly compensation- An amount equal to one hundred seventy percent
(170%) of the first One thousand pesos (P1,000.00) of the average monthly compensation plus one
hundred percent (100%) of the average monthly compensation in excess of One thousand pesos
(P1,000.00);
"(n) Lump sum- The basic monthly pension multiplied by sixty (60);
"(o) Pensioner- Any person receiving old-age permanent total disability pension or any person who has
received the lump sum excluding one receiving survivorship pension benefits as defined in Section 20
of this Act;
"(p) Gainful Occupation- Any productive activity that provided the member with income at least equal
to the minimum compensation of government employees;
"(q) Disability- Any loss or impairment of the normal functions of the physical and/or mental faculty
of a member which reduces or eliminates his/her capacity to continue with his/her current gainful
occupation or engage in any other gainful occupation;
"(r) Total Disability- Complete incapacity to continue with his present employment or engage in any
gainful occupation due to the loss or impairment of the normal functions of the physical and/or mental
faculties of the member;
"(s) Permanent Total Disability- Accrues or arises when recovery from the impairment mentioned in
Section 2 (Q) is medically remote;
"(t) Temporary Total Disability- Accrues or arises when the impaired physical and/or mental faculties
can be rehabilitated and/or restored to their normal functions;
"(u) Permanent Partial Disability- Accrues or arises upon the irrevocable loss or impairment of certain
portion/s of the physical faculties, despite which the member is able to pursue a gainful occupation.
"B. MEMBERSHIP IN THE GSIS

"SEC. 3. Compulsory Membership. - Membership in the GSIS shall be compulsory for all employees
receiving compensation who have not reached the compulsory retirement age, irrespective of
employment status, except members of the Armed Forces of the Philippines and the Philippine
National Police, subject to the condition that they must settle first their financial obligation with the
GSIS, and contractuals who have no employer and employee relationship with the agencies they serve.
"Except for the members of the judiciary and constitutional commissions who shall have life insurance
only, all members of the GSIS shall have life insurance, retirement, and all other social security
protections such as disability, survivorship, separation, and unemployment benefits.
"SEC. 4. Effect of Separation from the Service. - A member separated from the service shall continue
to be a member, and shall be entitled to whatever benefits he has qualified to in the event of any
contingency compensable under this Act.
"C. SOURCES OF FUNDS

"SEC. 5. Contributions. - (a) It shall be mandatory for the member and employer to pay the monthly
contributions specified in the following schedule:
"Monthly Compensation Percentage of Monthly

Compensation
Payable by
Member Employer
I. Maximum Average
Monthly Compensation
(AMC) Limit and Below 9.0% 12.0%
II. Over the Maximum

AMC Limit
-Up to the Maximum

AMC Limit 9.0% 12.0%
-In Excess of the

AMC Limit 2.0% 12.0%
"Members of the judiciary and constitutional commissioners shall pay three percent (3%) of their
monthly compensation as personal share and their employers a corresponding three percent (3%) share
for their life insurance coverage.
"(b) The employer shall include in its annual appropriation the necessary amounts for its share of the
contributions indicated above, plus any additional premiums that may be required on account of the
hazards or risks of its employees occupation.
"(c) It shall be mandatory and compulsory for all employers to include the payment of contributions in
their annual appropriations. Penal sanctions shall be imposed upon employers who fail to include the
payment of contributions in their annual appropriations or otherwise fail to remit the accurate/exact
amount of contributions on time, or delay the remittance of premium contributions to the GSIS. The
heads of offices and agencies shall be administratively liable for non-remittance or delayed remittance
of premium contributions to the GSIS.
"SEC. 6. Collection and Remittance of Contributions. - (a) The employer shall report to the GSIS the
names of all its employees, their corresponding employment status, positions, salaries and such other
pertinent information, including subsequent changes therein, if any, as may be required by the GSIS;
the employer shall deduct each month from the monthly salary or compensation of each employee the
contribution payable by him in accordance with the schedule prescribed in the rules and regulations
implementing this Act.
"(b) Each employer shall remit directly to the GSIS the employees and employers contributions
within the first ten (10) days of the calendar month following the month to which the contributions
apply. The remittance by the employer of the contribution to the GSIS shall take priority over and
above the payment of any and all obligations, except salaries and wages of its employees.
"SEC. 7. Interest on Delayed Remittances. - Agencies which delay the remittance of any and all
monies due the GSIS shall be charged interests as may be prescribed by the Board but not less than
two percent (2%) simple interest per month. Such interest shall be paid by the employers concerned.
"SEC. 8. Government Guarantee. - The government of the Republic of the Philippines hereby
guarantees the fulfillment of the obligations of the GSIS to its members as and when they fall due.
"D. BENEFITS
"SEC. 9. Computation of the Basic Monthly Pension. - (a) The basic monthly pension is equal to:
"1) thirty-seven and one-half percent (37.5%) of the revalued average monthly compensation; plus
"2) two and one-half percent (2.5%) of said revalued average monthly compensation for each year of
service in excess of (15) years: Provided, That the basic monthly pension shall not exceed ninety
percent (90%) of the average monthly compensation.
"(b) The basic monthly pension may be adjusted upon the recommendation of the President and
General Manager of the GSIS and approved by the President of the Philippines in accordance with the
rules and regulations prescribed by the GSIS: Provided, however, that the basic monthly pension shall
not be less than One thousand and three hundred pesos (P1,300.00): Provided, further, that the basic
monthly pension for those who have rendered at least twenty (20) years of service after the effectivity
of this Act shall not be less than Two thousand four hundred pesos (P2,400.00) a month.
"SEC. 10. Computation of Service. - (a) The computation of service for the purpose of determining the
amount of benefits payable under this Act shall be from the date of original appointment/election,
including periods of service at different times under one or more employers, those performed overseas
under the authority of the Republic of the Philippines, and those that may be prescribed by the GSIS in
coordination with the Civil Service Commission.
"(b) All service credited for retirement, resignation or separation for which corresponding benefits
have been awarded under this Act or other laws shall be excluded in the computation of service in case
of reinstatement in the service of an employer and subsequent retirement or separation which is
compensable under this Act.
"For the purpose of this section, the term service shall include full-time service with compensation:
Provided, that part-time and other services with compensation may be included under such rules and
regulations as may be prescribed by the GSIS.
"SEPARATION BENEFITS
"SEC. 11. Separation Benefits. - The separation benefits shall consist of: (a) a cash payment equivalent
to one hundred percent (100%) of his average monthly compensation for each year of service he paid
contributions, but not less than Twelve thousand pesos (P12,000) payable upon reaching sixty (60)
years of age upon separation, whichever comes later: Provided, that the member resigns or separates
from the service after he has rendered at least three (3) years of service but less than fifteen (15) years;
or
"(b) a cash payment equivalent to eighteen (18) times his basic monthly pension at the time of
resignation or separation, plus an old-age pension benefit equal to the basic monthly pension payable
monthly for life upon reaching the age of sixty (60): Provided, that the member resigns or separates
from the service after he has rendered at least fifteen (15) years of service and is below sixty (60) years
of age at the time of resignation or separation.
"SEC. 12. Unemployment or Involuntary Separation Benefits. - Unemployment benefits in the form of
monthly cash payments equivalent to fifty percent (50%) of the average monthly compensation shall
be paid to a permanent employee who is involuntarily separated from the service due to the abolition
of his office or position usually resulting from reorganization: Provided, That he has been paying
integrated contributions for at least one (1) year prior to separation. Unemployment benefits shall be
paid in accordance with the following schedules:
"Contributions Made Benefit Duration
1 year but less than 3 years 2 months

3 or more years but less than 6 years 3 months
"The first payment shall be equivalent to two (2) monthly benefits. A seven-day (7) waiting period
shall be imposed on succeeding monthly payments.
"All accumulated unemployment benefits paid to the employee during his entire membership with the
GSIS shall be deducted from voluntary separation benefits.
"The GSIS shall prescribe the detailed guidelines in the operationalization of this section in the rules
and regulations implementing this Act.
"RETIREMENT BENEFITS
"SEC. 13. Retirement Benefits. - (a) Retirement benefits shall be:
"(1) the lump sum payment as defined in this Act payable at the time of retirement plus an old-age
pension benefit equal to the basic monthly pension payable monthly for life, starting upon expiration of
the five-year (5) guaranteed period covered by the lump sum; or
"(2) cash payment equivalent to eighteen (18) months of his basic monthly pension plus monthly
pension for life payable immediately with no five-year (5) guarantee.
"(b) Unless the service is extended by appropriate authorities, retirement shall be compulsory for an
employee of sixty-five (65) years of age with at least fifteen (15) years of service: Provided, That if he
has less than fifteen (15) years of service, he may be allowed to continue in the service in accordance
with existing civil service rules and regulations.
"SEC. 13-A. Conditions for Entitlement. - A member who retires from the service shall be entitled to
the retirement benefits enumerated in paragraph (a) of Section 13 hereof: Provided, That:
(1) he has rendered at least fifteen years of service;
(2) he is at least sixty (60) years of age at the time of retirement; and
(3) he is not receiving a monthly pension benefit from permanent total disability.
"SEC. 14. Periodic Pension Adjustment. - The monthly pension of all pensioners including all those
receiving survivorship pension benefits shall be periodically adjusted as may be recommended by the
GSIS actuary and approved by the Board in accordance with the rules and regulations prescribed by
the GSIS.
"PERMANENT DISABILITY BENEFITS
"SEC. 15. General Conditions for Entitlement. - A member who suffers permanent disability for
reasons not due to his grave misconduct, notorious negligence, habitual intoxication, or willful
intention to kill himself or another, shall be entitled to the benefits provided for under Sections 16 and
17 immediately following, subject to the corresponding conditions thereof.
"SEC. 16. Permanent Total Disability Benefits. - (a) If the permanent disability is total, he shall receive
a monthly income benefit for life equal to the basic monthly pension effective from the date of
disability: Provided, That:
(1) he is in the service at the time of disability; or
(2) if separated from the service, he has paid at least thirty-six (36) monthly contributions within the
five (5) year period immediately preceding disability, or has paid a total of at least one hundred eighty
(180) monthly contributions, prior to his disability: Provided, further, That if at the time of disability,
he was in the service and has paid a total of at least one hundred eighty (180) monthly contributions, in
addition to the monthly income benefit, he shall receive a cash payment equivalent to eighteen (18)
times his basic monthly pension: Provided, finally, That a member cannot enjoy the monthly income
benefit for permanent disability and the old-age retirement simultaneously.
"(b) If a member who suffers permanent total disability does not satisfy conditions (1) and (2) in
paragraph (a) of this section but has rendered at least three (3) years of service at the time of his
disability, he shall be advanced the cash payment equivalent to one hundred percent (100%) of his
average monthly compensation for each year of service he paid contributions, but not less than Twelve
thousand pesos (P12,000.00) which should have been his separation benefit.
"(c) Unless the member has reached the minimum retirement age, disability benefit shall be suspended
when:
"(1) he is reemployed; or
"(2) he recovers from his disability as determined by the GSIS, whose decision shall be final and
binding; or
"(3) he fails to present himself for medical examination when required by the GSIS.
"(d) The following disabilities shall be deemed total and permanent:
"(1) complete loss of sight of both eyes;
"(2) loss of two (2) limbs at or above the ankle or wrist;
"(3) permanent complete paralysis of two (2) limbs;
"(4) brain injury resulting in incurable imbecility or insanity; and
"(5) such other cases as may be determined by the GSIS.
"SEC. 17. Permanent Partial Disability Benefits. - (a) If the disability is partial, he shall receive a cash
payment in accordance with a schedule of disabilities to be prescribed by the GSIS: Provided, That he
satisfies either conditions (1) or (2) of Section 16 (a);
"(b) The following disabilities shall be deemed permanent partial:
"(1) complete and permanent loss of the use of:

(i) any finger
(ii) any toe
(iii) one arm
(iv) one hand
(v) one foot
(vi) one leg
(vii) one or both ears
(viii) hearing of one or both ears
(ix) sight of both eyes
"(2) such other cases as my be determined by the GSIS.
"TEMPORARY DISABILITY BENEFITS

"SEC. 18. Temporary Total Disability Benefits. - (a) A member who suffers temporary total disability
for reasons not due to any of the conditions enumerated in Section 15 hereof shall be entitled to
seventy-five percent (75%) of his current daily compensation for each day or fraction thereof of
temporary disability benefit not exceeding one hundred twenty (120) days in one calendar year after
exhausting all his sick leave credits and collective bargaining agreement sick leave benefits, if any, but
not earlier than the fourth day of his temporary total disability: Provided, That:
"(1) he is in the service at the time of his disability; or

"(2) if separated, he has rendered at least three (3) years of service and has paid at least six (6) monthly
contributions in the twelve-month period immediately preceding his disability.
"Provided, however, That a member cannot enjoy the temporary total disability benefit and sick leave
pay simultaneously: Provided, further, That if the disability requires more extensive treatment that lasts
beyond one hundred twenty (120) days, the payment of the temporary total disability benefit may be
extended by the GSIS but not to exceed a total of two hundred forty (240) days.
"(b) The temporary total disability benefit shall in no case be less than Seventy pesos (P70.00) a day.
"(c) The notices required of the member and the employer, the mode of payment, and the other
requirements for entitlement to temporary total disability benefits shall be provided in the rules and
regulations to be prescribed by the GSIS.
"SEC. 19. Non-scheduled Disability. - For injuries or illnesses resulting in a disability not listed in the
schedule of partial/total disability provided herein, the GSIS shall determined the nature of the
disability and the corresponding benefits therefor.
"SURVIVORSHIP BENEFITS
"SEC. 20. Survivorship Benefits. - When a member or pensioner dies, the beneficiaries shall be
entitled to survivorship benefits provided in Sections 21 and 22 hereunder subject to the conditions
therein provided for. The survivorship pension shall consist of:
(1) the basic survivorship pension which is fifty percent (50%) of the basic monthly pension; and
(2) the dependent childrens pension not exceeding fifty percent (50%) of the basic monthly pension
.
"SEC. 21. Death of a Member. - (a) Upon the death of a member, the primary beneficiaries shall be
entitled to:
(1) survivorship pension: Provided, That the deceased:
(i) was in the service at the time of his death; or

(ii) if separated from the service, has at least three (3) years of service at the time of his death and has
paid thirty-six (36) monthly contributions within the five-year period immediately preceding his death;
or has paid a total of at least one hundred eighty (180) monthly contributions prior to his death; or
(2) the survivorship pension plus a cash payment equivalent to one hundred percent (100%) of his
average monthly compensation for every year of service: Provided, That the deceased was in the
service at the time of his death with at least three (3) years of service; or
(3) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for
each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000.00):
Provided, That the deceased has rendered at least three (3) years of service prior to his death but does
not qualify for the benefits under item (1) or (2) of this paragraph.
(b) The survivorship pension shall be paid as follows:

(1) when the dependent spouse is the only survivor, he/she shall receive the basic survivorship pension
for life or until he/she remarries;
(2) when only dependent children are the survivors, they shall be entitled to the basic survivorship
pension for as long as they are qualified, plus the dependent childrens pension equivalent to ten
percent (10%) of the basic monthly pension for every dependent child not exceeding five (5), counted
from the youngest and without substitution;
(3) when the survivors are the dependent spouse and the dependent children, the dependent spouse
shall receive the basic survivorship pension for life or until he/she remarries, and the dependent
children shall receive the dependent childrens pension mentioned in the immediately preceding
paragraph (2) hereof.
(c) In the absence of primary beneficiaries, the secondary beneficiaries shall be entitled to:
(1) the cash payment equivalent to one hundred percent (100%) of his average monthly compensation
for each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000.00):
Provided, That the member is in the service at the time of his death and has at least three (3) years of
service; or
(2) in the absence of secondary beneficiaries, the benefits under this paragraph shall be paid to his legal
heirs.
(d) For purposes of the survivorship benefits, legitimate children shall include legally adopted and
legitimated children.
"SEC. 22. Death of a Pensioner. - Upon the death of an old-age pensioner or a member receiving the
monthly income benefit for permanent disability, the qualified beneficiaries shall be entitled to the
survivorship pension defined in Section 20 of this Act, subject to the provisions of paragraph (b) of
Section 21 hereof. When the pensioner dies within the period covered by the lump sum, the
survivorship pension shall be paid only after the expiration of the said period.
"FUNERAL BENEFITS
"SEC. 23. Funeral Benefits. - The amount of the funeral benefits shall be determined and specified by
the GSIS in the rules and regulations but shall not be less than Twelve thousand pesos (P12,000.00):
Provided, That it shall be increased to at least Eighteen thousand pesos (P18,000.00) after five (5)
years and shall be paid upon the death of:
(a) an active member as defined under Section 2 (e) of this Act; or

(b) a member who has been separated from the service, but who may be entitled to future benefit
pursuant to Section 4 of this Act; or
(c) a pensioner, as defined in Section 2 (o) of this Act; or
(d) a retiree who at the time of his retirement was of pensionable age under this Act but who opted to
retire under Republic Act No. 1616.
"LIFE INSURANCE BENEFITS

"SEC. 24. Compulsory Life Insurance. - All employees except for Members of the Armed Forces of
the Philippines (AFP) and the Philippine National Police (PNP) shall, under such terms and conditions
as may be promulgated by the GSIS, be compulsorily covered with life insurance, which shall
automatically take effect as follows:
(1) for those employed after the effectivity of this Act, their insurance shall take effect on the date of
their employment;
(2) for those whose insurance will mature after the effectivity of this Act, their insurance shall be
deemed renewed on the day following the maturity or expiry date of their insurance;
(3) for those without any life insurance as of the effectivity of this Act, their insurance shall take effect
following said effectivity.
"SEC. 25. Dividends. - An annual dividend may be granted to all members of the GSIS whose life
insurance is in force for at least one (1) year in accordance with a dividends allocation formula to be
determined by the GSIS.
"SEC. 26. Optional Insurance. - Subject to the rules and regulations prescribed by the GSIS, a member
may apply for insurance and/or pre-need coverage embracing life, health, hospitalization, education,
memorial plans, and such other plans as may be designed by the GSIS, for himself and/or his
dependents. Any employer may likewise apply for group insurance coverage for its employees. The
payment of the premiums/installments for optional insurance and pre-need products may be made by
the insured or his employer and/or any person acceptable to the GSIS.
"SEC. 27. Reinsurance. - The GSIS may reinsure any of its interests or part thereof with any private
company or reinsurer whether domestic of foreign: Provided, That the GSIS shall submit an annual
report on its reinsurance operations to the Insurance Commission.
"E. ADJUDICATION OF CLAIMS AND DISPUTES

"SEC. 28. Prescription. - Claims for benefits under this Act except for life and retirement shall
prescribe after four (4) years from the date of contingency.
"SEC. 29. Facility of Payment. - The GSIS shall prescribe rules and regulations to facilitate payment of
benefits, proceeds, and claims under this Act and any other laws administered by the GSIS. Payments
made by the GSIS prior to its receipt of an adverse claim, to a beneficiary or claimant subsequently
found not entitled thereto, shall not bar the legal and eligible recipient to his right to demand the
payment of benefits, proceeds, and claims from the GSIS, who shall, however, have a right to institute
the appropriate action in a court of law against the ineligible recipient.
"SEC. 30. Settlement of Disputes. - The GSIS shall have original and exclusive jurisdiction to settle
any disputes arising under this Act and any other laws administered by the GSIS.
The Board may designate any member of the Board, or official of the GSIS who is a lawyer, to act as
hearing officer to receive evidence, make findings of fact and submit recommendations, together with
all documentary and testimonial evidence to the Board within thirty (30) working days from the time
the parties have closed their respective evidence and filed their last pleading. The Board shall decide
the case within thirty (30) days from the receipt of the hearing officers findings and recommendations.
The cases heard directly by the Board shall be decided within thirty (30) working days from the time
they are submitted by the parties for decision.
"SEC. 31. Appeals. - Appeals from any decision or award of the Board shall be governed by Rules 43
and 45 of the 1997 Rules of Civil Procedure adopted by the Supreme Court on April 8, 1997 which
will take effect on July 1, 1997: Provided, That pending cases and those filed prior to July 1, 1997 shall
be governed by the applicable rules of procedure: Provided, further, That the appeal shall take
precedence over all other cases except criminal cases when the penalty of life imprisonment or death or
reclusion perpetua is imposable.
The appeal shall not stay the execution of the order or award unless ordered by the Board, by the Court
of Appeals or by the Supreme Court and the appeal shall be without prejudice to the special civil action
of certiorari when proper.
"SEC. 32. Execution of Decision. - When no appeal is perfected and there is no order to stay by the
Board, by the Court of Appeals or by the Supreme Court, any decision or award of the Board shall be
enforced and executed in the same manner as decisions of the Regional Trial Court. For this purpose,
the Board shall have the power to issue to the city or provincial sheriff or its appointed sheriff such
writs of execution as may be necessary for the enforcement of such decision or award, and any person
who shall fail or refuse to comply with such decision, award, writ or process after being required to do
so shall, upon application by the GSIS, be punished for contempt.
"SEC. 33. Oaths, Witnesses, and Production of Records. - When authorized by the Board, an official or
employee of the GSIS shall have the power to administer oath and affirmation, take deposition, certify
to official acts, and issue subpoena ad testificandum and subpoena duces tecum to compel the
attendance of witnesses and the production of books, papers, correspondences, and other records
deemed necessary as evidence in connection with any question arising under this Act. Any case of
contumacy shall be dealt with in accordance with the provisions of Section 580 of the Revised
Administrative Code.
"F. FUNDS OF THE GSIS

"SEC. 34. Funds. - All contributions payable under Section 5 of this Act together with the earnings and
accruals thereon shall constitute the GSIS Social Insurance Fund. The said fund shall be used to
finance the benefits administered by the GSIS under this Act. In addition, the GSIS shall administer the
optional insurance fund for the insurance coverage described in Section 26 hereof, the Employees
Compensation Insurance Fund created under P.D. 626, as amended, General Insurance Fund created
under Act No. 656, as amended, and such other special funds existing or that may be created for
special groups or persons rendering services to the government. The GSIS shall maintain the required
reserves to guarantee the fulfillment of its obligations under this Act.
The funds of the GSIS shall not be used for purposes other than what are provided for under this Act.
Moreover, no portion of the funds of the GSIS or income thereof shall accrue to the General Fund of
the national government and its political subdivisions, instrumentalities and other agencies including
government-owned and controlled corporations except as may be allowed under this Act.
"SEC. 35. Deposits and Disbursements. - All revenues collected and all accruals thereto shall be
deposited, administered and disbursed in accordance with the law. A maximum expense loading of
twelve percent (12%) of the yearly revenues from all sources may be disbursed for administrative and
operational expenses except as may be otherwise approved by the President of the Philippines on the
basis of actuarial and management studies.
"SEC. 36. Investment of Funds. - The funds of the GSIS which are not needed to meet the current
obligations may be invested under such terms and conditions and rules and regulations as may be
prescribed by the Board: Provided, That investments shall satisfy the requirements of liquidity,
safety/security and yield in order to ensure the actuarial solvency of the funds of the GSIS: Provided,
further, That the GSIS shall submit an annual report on all investments made to both Houses of
Congress of the Philippines, to wit:
(a) in interest-bearing bonds or securities or other evidence of indebtedness of the Government of the
Philippines;
(b) in interest-bearing deposits or securities in any domestic bank doing business in the Philippines:
Provided, That in the case of such deposits, there shall not exceed at any time the unimpaired capital
and surplus or total private deposits of the depository bank, whichever is smaller: Provided, further,
That the said bank has prior designation as a depository for the purpose by the Monetary Board of the
Central Monetary Authority;
(c) in direct housing loans to members and group housing projects secured by first mortgage, giving
priority to the low income groups and in short and medium term loans to members such as salary,
policy, educational, emergency stock purchase plan and other similar loans: Provided, That no less
than forty percent (40%) of the investible fund of the GSIS Social Insurance Fund shall be invested for
these purposes;
(d) in bonds, securities, promissory notes or other evidence of indebtedness of educational or medical
institutions to finance the construction, improvement and maintenance of schools and hospitals;
(e) in real estate property including shares of stocks involving real state property and investments
secured by first mortgages on real estate or other collaterals acceptable to the GSIS: Provided, That
such investment shall, in the determination of the Board, redound to the benefit of the GSIS, its
members as well as the general public;
(f) in debt instruments and other securities traded in the secondary markets;
(g) in loans to, or in bonds, debentures, promissory notes or other evidence of indebtedness of any
solvent corporation created or existing under the laws of the Philippines;
(h) in common and preferred stocks of any solvent corporation or financial institution created or
existing under the laws of the Philippines listed in the stock exchange with proven track record of
profitability over the last three (3) years and payment of dividends at least once over the same period;
(i) in domestic mutual funds including investments related to the operations of mutual funds; and
(j) in foreign mutual funds and in foreign currency deposits or foreign currency-denominated debts,
non-speculative equities and other financial instruments or other assets issued in accordance with
existing laws of the countries where such financial instruments are issued: Provided, That these
instruments or assets are listed in bourses of the respective countries where these instruments or assets
are issued: Provided, further, That the issuing company has proven track record of profitability over
the last three (3) years and payment of dividends at least once over the same period.
"SEC. 37. Records and Reports. - The GSIS shall keep and cause to keep such records as may be
necessary for the purpose of making actuarial studies, calculations and valuations of the funds of the
GSIS including such data needed in the computation of rates of disability, mortality, morbidity,
separation and retirement among the members and any other information useful for the adjustment of
the benefits of the members. The GSIS shall maintain appropriate books of accounts to record its
assets, liabilities, income, expenses, receipts and disbursement of funds and other financial transactions
and operations.
"SEC. 38. Examination and Valuation of the Funds. - The GSIS shall make a periodic actuarial
examination and valuation of its funds in accordance with accepted actuarial principles.
"SEC. 39. Exemption from Tax, Legal Process and Lien. - It is hereby declared to be the policy of the
State that the actuarial solvency of the funds of the GSIS shall be preserved and maintained at all times
and that contribution rates necessary to sustain the benefits under this Act shall be kept as low as
possible in order not to burden the members of the GSIS and their employers. Taxes imposed on the
GSIS tend to impair the actuarial solvency of its funds and increase the contribution rate necessary to
sustain the benefits of this Act. Accordingly, notwithstanding any laws to the contrary, the GSIS, its
assets, revenues including all accruals thereto, and benefits paid, shall be exempt from all taxes,
assessments, fees, charges, or duties of all kinds. These exemptions shall continue unless expressly and
specifically revoked and any assessment against the GSIS as of the approval of this Act are hereby
considered paid. Consequently, all laws, ordinances, regulations, issuances, opinions or jurisprudence
contrary to or in derogation of this provision are hereby deemed repealed, superseded and rendered
ineffective and without legal force and effect.
"Moreover, these exemptions shall not be affected by subsequent laws to the contrary unless this
section is expressly, specifically and categorically revoked or repealed by law and a provision is
enacted to substitute or replace the exemption referred to herein as an essential factor to maintain or
protect the solvency of the fund, notwithstanding and independently of the guaranty of the national
government to secure such solvency or liability.
"The funds and/or the properties referred to herein as well as the benefits, sums or monies
corresponding to the benefits under this Act shall be exempt from attachment, garnishment, execution,
levy or other processes issued by the courts, quasi-judicial agencies or administrative bodies including
Commission on Audit (COA) disallowances and from all financial obligations of the members,
including his pecuniary accountability arising from or caused or occasioned by his exercise or
performance of his official functions or duties, or incurred relative to or in connection with his position
or work except when his monetary liability, contractual or otherwise, is in favor of the GSIS.
"G. ADMINISTRATION
"SEC. 40. Implementing Body. - The Government Service Insurance System as created under
Commonwealth Act No. 186 shall implement the provisions of this Act.
"SEC. 41. Powers and Functions of the GSIS. - The GSIS shall exercise the following powers and
functions:
(a) to formulate, adopt, amend and/or rescind such rules and regulations as may be necessary to carry
out the provisions and purposes of this Act, as well as the effective exercise of the powers and
functions, and the discharge of duties and responsibilities of the GSIS, its officers and employees;
(b) to adopt or approve the annual and supplemental budget of receipts and expenditures including
salaries and allowances of the GSIS personnel; to authorize such capital and operating expenditures
and disbursements of the GSIS as may be necessary and proper for the effective management and
operation of the GSIS;
(c) to invest the funds of the GSIS, directly or indirectly, in accordance with the provisions of this Act;
(d) to acquire, utilize or dispose of, in any manner recognized by law, real or personal property in the
Philippines or elsewhere necessary to carry out the purposes of this Act;
(e) to conduct continuing actuarial and statistical studies and valuations to determine the financial
condition of the GSIS and taking into consideration such studies and valuations and the limitations
herein provided, re-adjust the benefits, contributions, premium rates, interest rates or the allocation or
re-allocation of the funds to the contingencies covered;
(f) to have the power of succession;
(g) to sue and be sued;
(h) to enter into, make, perform and carry out contracts of every kind and description with any person,
firm or association or corporation, domestic or foreign;
(i) to carry on any other lawful business whatsoever in pursuance of, or in connection with the
provisions of this Act;
(j) to have one or more offices in and outside of the Philippines, and to conduct its business and
exercise its powers throughout and in any part of the Republic of the Philippines and/or in any or all
foreign countries, states and territories: Provided, That the GSIS shall maintain a branch office in every
province where there exists a minimum of fifteen thousand (15,000) membership;
(k) to borrow funds from any source, private or government, foreign or domestic, only as an incident in
the securitization of housing mortgages of the GSIS and on account of its receivables from any
government or private entity;
(l) to invest, own or otherwise participate in equity in any establishment, firm or entity;
(m) to approve appointments in the GSIS except appointments to positions which are policy
determining, primarily confidential or highly technical in nature according to the Civil Service rules
and regulations: Provided, That all positions in the GSIS shall be governed by the compensation and
position classification system and qualifications standards approved by the GSIS Board of Trustees
based on a comprehensive job analysis and audit of actual duties and responsibilities: Provided,
further, That the compensation plan shall be comparable with the prevailing compensation plans in the
private sector and shall be subject to the periodic review by the Board no more than once every four
(4) years without prejudice to yearly merit reviews or increases based on productivity and profitability;
(n) to design and adopt an Early Retirement Incentives Plan (ERIP) and/or financial assistance for the
purpose of retirement for its own personnel;
(o) to fix and periodically review and adjust the rates of interest and other terms and conditions for
loans and credits extended to members or other persons, whether natural or juridical;
(p) to enter into agreement with the Social Security System or any other entity, enterprise, corporation
or partnership for the benefit of members transferring from one system to another subject to the
provisions of Republic Act No. 7699, otherwise known as the Portability Law;
(q) to be able to float proper instrument to liquefy long-term maturity by pooling funds for short-term
secondary market;
(r) to submit annually, not later than June 30, a public report to the President of the Philippines and the
Congress of the Philippines regarding its activities in the administration and enforcement of this Act
during the preceding year including information and recommendations on board policies for the
development and perfection of the programs of the GSIS;
(s) to maintain a provident fund, which consists of contributions made by both the GSIS and its
officials and employees and their earnings, for the payments of benefits to such officials and
employees or their heirs under such terms and conditions as it may prescribe;
(t) to approve and adopt guidelines affecting investments, insurance coverage of government
properties, settlement of claims, disposition of acquired assets, privatization or expansion of
subsidiaries, development of housing projects, increased benefit and loan packages to members, and
the enforcement of the provision of this Act;
(u) any provision of law to the contrary notwithstanding, to authorize the payment of extra
remuneration to the officials and employees directly involved in the collection and/or remittances of
contributions, loan repayments, and other monies due to the GSIS at such rates and under such
conditions as it may adopt: Provided, That the best interest of the GSIS shall be observed thereby;
(v) to determine, fix and impose interest upon unpaid premiums due from employers and employees;
(w) to ensure the collection or recovery of all indebtedness, liabilities and/or accountabilities, including
unpaid premiums or contributions in favor of the GSIS arising from any cause or source whatsoever,
due from obligors, whether public or private. The Board shall demand payment or settlement of the
obligations referred to herein within thirty (30) days from the date the obligation becomes due, and in
the event of failure or refusal of the obligor or debtor to comply with the demand, to initiate or institute
the necessary or proper actions or suits, criminal, civil or administrative or otherwise, before the
courts, tribunals, commissions, boards, or bodies of proper jurisdiction within thirty (30) days
reckoned from the expiry date of the period fixed in the demand within which to pay or settle the
account;
(x) to design and implement programs that will promote and mobilize savings and provide additional
resources for social security expansion and at the same time afford individual members appropriate
returns on their savings/investments. The programs shall be so designed as to spur socio-economic
take-off and maintain continued growth; and
(y) to exercise such powers and perform such other acts as may be necessary, useful, incidental or
auxiliary to carry out the provisions of this Act, or to attain the purposes and objectives of this Act.
"SEC. 42. The Board of Trustees; its Composition; Tenure and Compensation. - The corporate powers
and functions of the GSIS shall be vested in and exercised by the Board of Trustees composed of the
President and General Manager of the GSIS and eight (8) other members to be appointed by the
President of the Philippines, one (1) of whom shall be either the President of the Philippine Public
School Teachers Association (PPSTA) or the President of the Philippine Association of School
Superintendents (PASS), another two (2) shall represent the leading organizations or associations of
government employees/retirees, another four (4) from the banking, finance, investment, and insurance
sectors, and one (1) recognized member of the legal profession who at the time of appointment is also
a member of the GSIS. The Trustees shall elect from among themselves a Chairman while the
President and General Manager of the GSIS shall automatically be the vice-chairman.
The Trustees, except the President and General Manager who shall cease as trustee upon his
separation, shall hold office for six (6) years without reappointment, or until their successors are duly
appointed and qualified. Vacancy, other than through the expiration of the term, shall be filled for the
unexpired term only. The members of the Board shall be entitled to a per diem of Two thousand five
hundred pesos (P2,500.00) for each board meeting actually attended by them, but not to exceed Ten
thousand pesos (P10,000.00) a month and reasonable transportation and representation allowances as
may be fixed by the Board.
"SEC. 43. Powers and Functions of the Board of Trustees. - The Board of Trustees shall have the
following powers and functions:
"(a) to formulate the policies, guidelines and programs to effectively carry out the purposes of this Act;
"(b) to promulgate such rules and regulations as may be necessary or proper for the effective exercise
of the powers and functions as well as the discharge of the duties and responsibilities of the GSIS, its
officers and employees;
"(c) upon the recommendation of the President and General Manager, to approve the annual and
supplemental budget of receipts and expenditures of the GSIS, and to authorize such operating and
capital expenditures and disbursements of the GSIS as may be necessary or proper for the effective
management, operation and administration of the GSIS;
"(d) upon the recommendation of the President and General Manager, to approve the GSIS
organizational and administrative structure and staffing pattern, and to establish, fix, review, revise and
adjust the appropriate compensation packages for the officers and employees of the GSIS and
reasonable allowances, incentives, bonuses, privileges and other benefits as may be necessary or
proper for the effective management, operation and administration of the GSIS, which shall be exempt
from Republic Act No. 6758, otherwise known as the Attrition Law;
"(e) to fix and periodically review and adjust the rates of interest and other terms and conditions for
loans and credits extended to its members or other persons, whether natural or juridical;
"(f) the provision of any law to the contrary notwithstanding, to compromise or release, in whole or in
part, any claim or settle liability to the GSIS, regardless of the amount involved, under such terms and
conditions as it may impose for the best interest of the GSIS;
"(g) to approve and adopt guidelines affecting investments, insurance coverage of government
properties, settlement of claims, disposition of acquired assets, development of housing projects,
increased benefit and loan packages to members, and the enforcement of the provisions of this Act;
"(h) to determine, fix, and impose interest upon unpaid or unremitted premiums and/or contributions;
and
"(i) to do and perform any and all acts necessary, proper or incidental to the attainment of the purposes
and objectives of this Act.
"SEC. 44. Appointment, Qualifications, and Compensation of the President and General Manager and
of other Personnel. - The President and General Manager of the GSIS shall be its Chief Executive
Officer and shall be appointed by the President of the Philippines. He shall be a person with
management and investments expertise necessary for the effective performance of his duties and
functions under this Act.
"The GSIS President and General Manager shall be assisted by one or more executive vice-presidents,
senior vice-presidents and managers in addition to the usual supervisory and rank-and-file positions
who shall be appointed and removed by the President and General Manager with the approval of the
Board, in accordance with the existing Civil Service rules and regulations.
"SEC. 45. Powers and Duties of the President and General Manager. - The President and General
Manager of the GSIS shall, among others, execute and administer the policies and resolutions
approved by the Board and direct and supervise the administration and operations of the GSIS. The
President and General Manager, subject to the approval of the Board, shall appoint the personnel of the
GSIS, remove, suspend or otherwise discipline them for cause, in accordance with the existing Civil
Service rules and regulations, and prescribe their duties and qualifications to the end that only
competent persons may be employed.
"SEC. 46. Auditor. - (a) The Chairman of the Commission on Audit shall be the ex officio auditor of
the GSIS, and the necessary personnel to assist said representative in the performance of his duties.
"(b) The Chairman of the Commission on Audit or his authorized representatives, shall submit to the
Board soon after the close of each calendar year, an audited statement showing the financial condition
and progress of the GSIS for the calendar year just ended.
"SEC. 47. Legal Counsel. - The Government Corporate Counsel shall be the legal adviser and
consultant of the GSIS, but the GSIS may assign to the Office of the Government Corporate Counsel
(OGCC) cases for legal action or trial, issues for legal opinions, preparation and review of
contracts/agreements and others, as the GSIS may decide or determine from time to time: Provided,
however, That the present legal services group in the GSIS shall serve as its in-house legal counsel.
"The GSIS may, subject to approval by the proper court, deputize any personnel of the legal service
group to act as special sheriff in the enforcement of writs and processes issued by the court, quasi-
judicial agencies or administrative bodies in cases involving the GSIS.
"SEC. 48. Powers of the Insurance Commission. - The Insurance Commissioner or his authorized
representatives shall make an examination of financial condition and methods of transacting business
of the GSIS at least once every three (3) years and the report of said examination shall be submitted to
the Board of Trustees and copies thereof be furnished the Office of the President of the Philippines and
the two houses of the Congress of the Philippines within five (5) days after the close of examination:
Provided, however, That for each examination, the GSIS shall pay the office of the Insurance
Commissioner an amount equal to the actual expenses incurred by the said office in the conduct of
examination, including the salaries of the examiners and of the actuary of such examination for the
actual time spent.
"H. GENERAL PROVISION

"SEC. 49. Dispensation of Social Insurance Benefits. - (a) The GSIS shall pay the retirement benefits
to the employee on his last day of service in the government: Provided, That all requirements are
submitted to the GSIS within a reasonable period prior to the effective date of the retirement;
"(b) The GSIS shall discontinue the processing and adjudication of retirement claims under R.A. No.
1616 except refund of retirement premium under R. A. No. 910. Instead, all agencies concerned shall
process and pay the gratuities of their employees. The Board shall adopt the proper rules and
procedures for the implementation of this provision.
"SEC. 50. Development and Disposition of Acquired Assets. - The GSIS shall have the right to
develop and dispose of its acquired assets obtained in the ordinary course of its business. To add value
to, improve profitability on, and/or enhance the marketability of an acquired asset, the GSIS may
further develop/renovate the same either with its own capital or through a joint venture arrangement
with private companies or individuals.
"The GSIS may sell its acquired assets in accordance with existing Commission on Audit (COA) rules
and regulations for an amount not lower than the current market value of the property. For this
purpose, the GSIS shall conduct an annual appraisal of its property or acquired assets to determine its
current market value. All notices of sale shall be published in newspapers of general circulation.
"No injunction or restraining order issued by any court, commission, tribunal or office shall bar,
impede or delay the sale and disposition by the GSIS of its acquired assets except on questions of
ownership and national or public interest.
"SEC. 51. Government Assistance to the GSIS. - The GSIS may call upon any employer for such
assistance as may be necessary in the discharge of its duties and functions.
"I. PENAL PROVISIONS

"SEC. 52. Penalty. - (a) Any person found to have participated directly or indirectly in the commission
of fraud, collusion, falsification, or misrepresentation in any transaction with the GSIS, whether for
him or for some other persons, shall suffer the penalties provided for in Article 172 of the Revised
Penal Code.
"(b) Whoever shall obtain or receive any money or check invoking any provision of this Act or any
agreement thereunder, without being entitled thereto with the intent to defraud any member, any
employer, the GSIS, or any third party, shall be punished by a fine of not less than Five thousand pesos
(P5,000.00) nor more than Twenty thousand pesos (P20,000.00) or by imprisonment of not less than
six (6) years and one (1) day to twelve (12) years, or both, at the discretion of the court.
"(c) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations
adopted by the GSIS, shall be punished by a fine of not less than Five thousand pesos (P5,000.00) nor
more than Twenty thousand pesos (P20,000.00) or imprisonment of not less than six (6) years and one
(1) day to twelve (12) years, or both, at the discretion of the court.
"(d) The treasurer, finance officer, cashier, disbursing officer, budget officer or other official or
employee who fails to include in the annual budget the amount corresponding to the employer and
employee contributions, or who fails or refuses or delays by more than thirty (30) days from the time
such amount becomes due and demandable, or to deduct the monthly contributions of the employee
shall, upon conviction by final judgment, suffer the penalties of imprisonment from six (6) months and
one (1) day to six (6) years, and a fine of not less than Three thousand pesos (P3,000.00) but not more
than Six thousand pesos (P6,000.00), and in addition, shall suffer absolute perpetual disqualification
from holding public office and from practicing any profession or calling licensed by the government.
"(e) Any employee or member who receives or keeps fund or property belonging, payable or
deliverable to the GSIS and appropriates the same, or takes or misappropriates or uses the same for any
purpose other than authorized by this Act, or permits another person to take, misappropriate or use said
fund or property by expressly consenting thereto, or through abandonment or negligence, or is
otherwise guilty of the misappropriation of said fund or property, in whole or in part, shall suffer the
penalties provided in Article 217 of the Revised Penal Code, and in addition, shall suffer absolute
perpetual disqualification from holding public office and from practicing any profession or calling
licensed by the government.
"(f) Any employee who, after deducting the monthly contribution or loan amortization from a
members compensation, fails to remit the same to the GSIS within thirty (30) days from the date they
should have been remitted under Section 6(a), shall be presumed to have misappropriated such
contribution or loan amortization and shall suffer the penalties provided in Article 315 of the Revised
Penal Code, and in addition, shall suffer absolute perpetual disqualification from holding public office
and from practicing any profession or calling licensed by the government.
"(g) The heads of the offices of the national government, its political subdivisions, branches, agencies
and instrumentalities, including government-owned or controlled corporations and government
financial institutions, and the personnel of such offices who are involved in the collection of premium
contributions, loan amortization and other accounts due the GSIS who shall fail, refuse or delay the
payment, turnover, remittance or delivery of such accounts to the GSIS within thirty (30) days from the
time that the same shall have been due and demandable shall, upon conviction by final judgment,
suffer the penalties of imprisonment of not less than one (1) year nor more than five (5) years and a
fine of not less than Ten thousand pesos (P10,000.00) nor more than Twenty thousand pesos
(P20,000.00), and in addition, shall suffer absolute perpetual disqualification from holding public
office and from practicing any profession or calling licensed by the government.
"(h) The officers and/or personnel referred to in paragraph (g) of this section shall be liable not only
criminally but also civilly to the GSIS or to the employee or member concerned in the form of
damages, including surcharges and interests.
"(i) For the charges or complaints referred to in paragraph (g) of this section, the liabilities therein set
forth shall be construed as waiver of the State of its immunity from suit, hence, the above-mentioned
officials and/or personnel may not invoke the defense of non-suability of the State.
"(j) Failure of the Members of the GSIS Board, including the chairman and the vice-chairman, to
comply with the provisions of paragraph (w) of Section 41 hereof, shall subject them to imprisonment
of not less than six (6) months nor more than one (1) year or a fine of not less than Five thousand pesos
(P5,000.00) nor more than Ten thousand pesos (P10,000.00) without prejudice to any civil or
administrative liability which may also arise therefrom.
"(k) Criminal actions arising from violations of the provisions of this Act may be commenced by the
GSIS or by the aggrieved member, either under this Act or, in appropriate cases, under the Revised
Penal Code.
"SEC. 53. Implementing Rules and Regulations. - The implementing rules and regulations to carry out
the provisions of this Act shall be adopted and promulgated by the GSIS not later than ninety (90) days
after the approval of this Act.
"SEC. 54. Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges, Functions and
Activities. - Nothing in this Act shall be construed to repeal, amend or limit any provision of existing
laws, Presidential Decrees and Letters of Instructions, not otherwise specifically inconsistent with the
provisions of this Act.
"SEC. 55. Exclusiveness of Benefits. - Whenever other laws provide similar benefits for the same
contingencies covered by this Act, the member who qualifies to the benefits shall have the option to
choose which benefits will be paid to him. However, if the benefits provided by the law chosen are less
than the benefits provided under this Act, the GSIS shall pay only the difference.
"SEC. 56. Appropriations. - The amount necessary to carry out the provisions of this Act shall be
included in the respective budgets of the agencies in the national government obligation program of the
year following its enactment into law and thereafter."

December 9, 1992
RETIREMENT PAY LAW
AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED,

OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, BY PROVIDING FOR
RETIREMENT PAY TO QUALIFIED PRIVATE SECTOR EMPLOYEES IN THE ABSENCE OF
ANY RETIREMENT PLAN IN THE ESTABLISHMENT
Section 1. Article 287 of Presidential Decree No. 442, as amended, otherwise known as the Labor
Code of the Philippines, is hereby amended to read as follows:
"Art. 287. Retirement. - Any employee may be retired upon reaching the retirement age established
in the collective bargaining agreement or other applicable employment contract.
"In case of retirement, the employee shall be entitled to receive such retirement benefits as he may
have earned under existing laws and any collective bargaining agreement and other agreements:
Provided, however, That an employee's retirement benefits under any collective bargaining and other
agreements shall not be less than those provided herein.
"In the absence of a retirement plan or agreement providing for retirement benefits of employees in the
establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-
five (65) years which is hereby declared the compulsory retirement age, who has served at least five
(5) years in the said establishment, may retire and shall be entitled to retirement pay equivalent to at
least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being
considered as one whole year.
"Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall mean
fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more
than five (5) days of service incentive leaves.
"Retail, service and agricultural establishments or operations employing not more than (10) employees
or workers are exempted from the coverage of this provision.
"Violation of this provision is hereby declared unlawful and subject to the penal provisions provided
under Article 288 of this Code."
House Bill 5641: An Act Prohibiting the Exploitative Volunteerism of Nurses has been filed at the
House of Representatives last December 14, 2011.
Instead of just removing the fees, there is finally a bill to stop the EXPLOITATIVE practices of
FALSE Volunteerism: having nurses do STAFF Nurse responsibilities, but without salaries.
Violators can be penalized a fine of P100,000 to P500,000 and face imprisonment of 6 Months to 1
Year; while hospitals themselves face suspension or cancellation of their licenses.
House Bill 4900 prohibits collection of fees from nursing apprentice
Nursing graduates will soon be allowed to undergo onthe-job training without paying the regular fees being
charged by most of the hospitals in the country.
House Bill 4900, authored by Rep. Salvio Fortuno (5th District, Camarines Sur), prohibits private and public
administrators from collecting fees from nursing apprentices who will undergo training at their hospitals.
Fortuno said under the bill, the "Pay for Training" scheme being implemented by most of the hospitals in the
country will be considered a criminal act punishable by one year imprisonment and a fine of not more than
P200,000.
According to Fortuno, nursing apprentices are required to pay the hospitals for 6 months training by as much as
P20,000 and are not assured of any job in any medical institutions. "Since no hospitals will hire them, nursing
graduates instead land in call centers and other jobs not related to their profession," Fortuno said.
"Nursing apprentices are forced to pay for the required training. Even the government hospitals are demanding fees
for the training," Fortuno declared.
Fortuno said the practice could be considered an exploitation of the highest order. These hospitals will no longer hire
registered nurses because the nursing apprentices are doing the job, Fortuno said.
Under the bill, nursing graduates who passed and obtained licenses from the Professional Regulations Commission
(PRC) will undergo a 6-month on-the-job free of charge training in any government or private hospitals or medical
centers.
The bill provides that a nurse will not be allowed to leave for employment abroad unless the prescribed training has
been completed as certified by the hospital or medical center concerned.
Fortuno said due to lack of employment opportunities in the country many nurses are compelled to seek a better
future for themselves and their families.
"Many Filipino nurses are accepting lower medical jobs abroad due to declining demands in the United States and in
the United Kingdom. The nurses and their families have made huge financial sacrifices and yet they are in the losing
end," Fortuno said.
Fortuno said the objective of the bill is to criminalize the practice of demanding fees from nursing apprentices while
they are in on-the-job training at hospitals.
SUMMARY
"A DECREE INSTITUTING A LABOR CODE, THEREBY REVISING AND CONSOLIDATING LABOR AND
SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN
RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE"
Also known as: "Labor Code of the Philippines"
Signed: May 1, 1974

This law has been extensively amended over the years to reflect the changing needs of the times.
(a) Nightwork prohibition - This provision discriminate against women because it limit the time when women may
engage in lawful employment. It does not address the real problem of security for women working at night.
(b) Facilities for women - The Secretary of Labor has yet to promulgate rules implementing this provision, but it
provides that adequate facilities must be made available for women workers, such as seats, separate toilet and
lavatories for women, and nursery. It also provides that the Secretary of Labor shall issue standards for the minimum
age and retirement in special occupations such as flight attendants.
(c) Maternity leave - Provides maternity leave benefits for pregnant woman, not necessarily married in order to avail
of the benefit. It addresses only the need of the mother to rest after giving birth but not the need to have the father
with her during the same period to assist her. These provisions apply only to the private sector. Further, maternity
leave shall be paid by the employer only for the first four deliveries by a woman employee.
(d) Family Planning - It only provides that family planning services be provided to employees of establishments who
are by law required to maintain a clinic or infirmary.
(e) Discrimination - It provides that employer shall not discriminate against women in the work place with respect to
terms and conditions of employment on account of her sex. Whoever discriminates against a woman incurs criminal
liability under the Labor Code but it does not preclude the filing of separate action for damages or money claims.
(f) Stipulation against marriage - The right to get married is an internationally recognized right of any individual. It,
therefore, is unlawful to discriminate against married employees or to require that a woman remain unmarried. It
discriminates against women because of their biological function of bearing children.
(g) Prohibited Acts - Provides for acts that employer must refrain from doing because these acts are discriminatory
on account of women's mothering function.
(h) Classification of certain women workers - Provides that women who are not formally employed in night clubs,
cocktail lounges, massage clinic, bar or similar establishments and, therefore, do not receive benefits due to regular
employees shall be considered employed for purposes of labor and social legislation if they are suffered to work,
with or without compensation.
(i) Employment of Househelpers - Provides for compensation of domestic helpers including drivers and prohibits
assignment of househelps to non-household work. It also states that they be given opportunity for at least elementary
education for those below 18 years of age and that they be treated in a just and humane manner. This provision is
beneficial for women since househelpers are usually women. This was amended by Republic Act No.7655 (see
discussion below).
(j) Employment of Homeworkers - Provides for the general welfare and protection of homeworkers and field
personnel and the industries employing them. See Department Order No. 5 (1990) which provides the rules
regarding contracting and subcontracting of goods and articles to homeworkers. However, since this is only an
administrative order and not a law, its provisions are seldom followed.
REPUBLIC ACT an act passed by the Congress of the Philippines, while the form of government is Republican
government.
Republic Act 349 Legalizes the use of human organs for surgical, medical and scientific purposes.
Republic Act 1054 Requires the owner, lessee or operator of any commercial, industrial or agricultural
establishment to furnish free emergency, medical and dental assistance to his employees and laborers.
Republic Act 1080 Civil Service Eligibility
Republic Act 1082 Rural Health Unit Act
Republic Act 1136 Act recognizing the Division of Tuberculosis in the DOH
Republic Act 1612 Privilege Tax/Professional tax/omnibus tax should be paid January 31 of each year
Republic Act 1891 Act strengthening Health and Dental services in the rural areas
Republic Act 2382 Philippine Medical Act which regulates the practice of medicines in the Philippines
Republic Act 2644 Philippine Midwifery Act
Republic Act 3573 Law on reporting of Communicable Diseases
Republic Act 4073 Liberalized treatment of Leprosy
Republic Act 4226 Hospital Licensure Act requires all hospital to be licensed before it can operative
Republic Act 5181 Act prescribing permanent residence and reciprocity as qualifications for any examination or
registration for the practice of any profession in the Philippines
Republic Act 5821 The Pharmacy Act
Republic Act 5901 40 hours work for hospital workers
Republic Act 6111 Medicare Act
Republic Act 6365 Established a National Policy on Population and created the Commission on population
Republic Act 6425 Dangerous Drug Act of 1992
Republic Act 6511 Act to standardize the examination and registration fees charged by the National Boards, and
for other purposes.
Republic Act 6675 Generics Act of 1988
Republic Act 6713 Code of Conduct and Ethical Standards for Public Officials and Employees
Republic Act 6725 Act strengthening the prohibition on discrimination against women with respect to terms and
condition of employment
Republic Act 6727 Wage Rationalization Act
Republic Act 6758 Standardized the salaries
Republic Act 6809 Majority age is 18 years old
Republic Act 6972 Day care center in every Barangay
Republic Act 7160 Local Government Code
Republic Act 7164 Philippine Nursing Act of 1991
Republic Act 7170 Law that govern organ donation
Republic Act 7192 Women in development nation building
Republic Act 7277 Magna Carta of Disabled Persons
Republic Act 7305 The Magna Carta of public Health Workers
Republic Act 7392 Philippine Midwifery Act of 1992
Republic Act 7432 Senior Citizen Act
Republic Act 7600 Rooming In and Breastfeeding Act of 1992
Republic Act 7610 Special protection of children against abuse, exploitation and discrimination act
Republic Act 7624 Drug Education Law
Republic Act 7641 New Retirement Law
Republic Act 7658 An act prohibiting the employment of children below 15 years of age
Republic Act 7719 National Blood Service Act of 1994
Republic Act 7875 National Health Insurance Act of 1995
Republic Act 7876 Senior Citizen Center of every Barangay
Republic Act 7877 Anti-sexual harassment Act of 1995
Republic Act 7883 Barangay Health workers Benefits and Incentives Act of 1992
Republic Act 8042 Migrant Workers and Overseas Filipino Act of 1995
Republic Act 8172 Asin Law
Republic Act 8187 Paternity Leave Act of 1995
Republic Act 8203 Special Law on Counterfeit Drugs
Republic Act 8282 Social Security Law of 1997 (amended RA 1161)
Republic Act 8291 Government Service Insurance System Act of 1997 (amended PD 1146)
Republic Act 8344 Hospital Doctors to treat emergency cases referred for treatment
Republic Act 8423 Philippine Institute of Traditional and Alternative Medicine
Republic Act 8424 Personal tax Exemption
Republic Act 8749 The Philippine Clean Air Act of 1999
Republic Act 8981 PRC Modernization Act of 2000
Republic Act 9165 Comprehensive Dangerous Drugs Act 2002
Republic Act 9173 Philippine Nursing Act of 2002
Republic Act 9288 Newborn Screening Act
PRESIDENTIAL DECREE An order of the President. This power of the President which allows him/her to act as
legislators was exercised during the Marshall Law period.
Presidential Decree 46 An act making it punishable for any public officials or employee, whether of the national or
local government, to receive directly or indirectly any gifts or valuable things
Presidential Decree 48 Limits benefits of paid maternity leave privileges to four children
Presidential Decree 69 Limits the number of children to four (4) tax exemption purposes
Presidential Decree 79 Population Commission
Presidential Decree 147 Declares April and May as National Immunization Day
Presidential Decree 148 Regulation on Woman and Child Labor Law
Presidential Decree 166 Strengthened Family Planning program by promoting participation of private sector in the
formulation and implementation of program planning policies.
Presidential Decree 169 Requiring Attending Physician and/or persons treating injuries resulting from any form of
violence.
Presidential Decree 223 Professional Regulation Commission
Presidential Decree 442 Labor Code Promotes and protects employees self-organization and collective bargaining
rights. Provision for a 10% right differential pay for hospital workers.
Presidential Decree 491 Nutrition Program
Presidential Decree 539 Declaring last week of October every as Nurses Week. October 17, 1958
Presidential Decree 541 Allowing former Filipino professionals to practice their respective professions in the
Philippines so they can provide the latent and expertise urgently needed by the homeland
Presidential Decree 568 Role of Public Health midwives has been expanded after the implementation of the
Restructed Health Care Delivery System (RHCDS)
Presidential Decree 603 Child and Youth Welfare Act / Provision on Child Adoption
Presidential Decree 626 Employee Compensation and State Insurance Fund. Provide benefits to person covered by
SSS and GSIS for immediate injury, illness and disability.
Presidential Decree 651 All births and deaths must be registered 30 days after delivery.
Presidential Decree 825 Providing penalty for improper disposal garbage and other forms of uncleanliness and for
other purposes.
Presidential Decree 851 13th Month pay
Presidential Decree 856 Code of Sanitation
Presidential Decree 965 Requiring applicants for Marriage License to receive instruction on family planning and
responsible parenthood.
Presidential Decree 996 Provides for compulsory basic immunization for children and infants below 8 years of
age.
Presidential Decree 1083 Muslim Holidays
Presidential Decree 1359 A law allowing applicants for Philippine citizenship to take Board Examination pending
their naturalization.
Presidential Decree 1519 Gives medicare benefits to all government employees regardless of status of
appointment.
Presidential Decree 1636 requires compulsory membership in the SSS and self-employed
Presidential Decree 4226 Hospital Licensure Act
PROCLAMATION an official declaration by the Chief Executive / Office of the President of the Philippines on
certain programs / projects / situation
Proclamation No.6 UNs goal of Universal Child Immunization; involved NGOs in the immunization program
Proclamation No. 118 Professional regulation Week is June 16 to 22
Proclamation No. 499 National AIDS Awareness Day
Proclamation No. 539 Nurses Week Every third week of October
Proclamation No. 1275 Declaring the third week of October every year as Midwifery Week
LETTER OF INSTRUCTION An order issued by the President to serve as a guide to his/her previous decree or
order.
LOI 47 Directs all school of medicine, nursing, midwifery and allied medical professions and social work to
prepare, plan and implement integration of family planning in their curriculum to require their graduate to take the
licensing examination.
LOI 949 Act on health and health related activities must be integrated with other activities of the overall national
development program. Primary Health Care (10-19-79)
LOI 1000 Government agencies should be given preference to members of the accredited professional
organization when hiring
EXECUTIVE ORDER an order issued by the executive branch of the government in order to implement a
constructional mandate or a statutory provision.
Executive Order 51 The Milk Code
Executive Order 174 National Drug Policy on Availability, Affordability, Safe, Effective and Good Quality drugs
to all
Executive Order 180 Government Workers Collective Bargaining Rights Guidelines on the right to Organize of
government employee.
Executive Order 203 List of regular holidays and special holidays
Executive Order 209 The Family Code (amended by RA 6809)
Executive Order 226 Command responsibility
Executive Order 503 Provides for the rules and regulations implementing the transfer of personnel, assets,
liabilities and records of national agencies whose functions are to be devoted to the local government units.
Executive Order 857 Compulsory Dollar Remittance Law
Other Important Information
Administrative Order 114 Revised/updated the roles and functions of the Municipal Health Officers, Public Health
Nurses and Rural Midwives
ILO Convention 149 Provides the improvement of life and work conditions of nursing personnel.

Laws Affecting Nursing Employment in The Philippines

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Laws Affecting Nursing Employment in The Philippines

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LAWS AFFECTING NURSING EMPLOYMENT IN THE PHILIPPINES

Republic Act 5901

REPUBLIC ACT NO. 6727

AN ACT TO RATIONALIZE WAGE POLICY DETERMINATION BY ESTABLISHING THE

Section 1. This Act shall be known as the "Wage Rationalization Act."

"Each Regional Board to be headed by its chairman shall be assisted by a Secretariat.

"(a) The demand for living wages;

"(c) The cost of living and changes or increases therein;

"(d) The needs of workers and their families;

"(e) The need to induce industries to invest in the countryside;

"(f) Improvements in standards of living;

"(g) The prevailing wage levels;

"(i) Effects on employment generation and family income; and

"Art. 126. Prohibition Against Injunction. - No preliminary or permanent injunction or temporary

REPUBLIC ACT NO. 7305

SEC. 6. Transfer or Geographical Reassignment of Public health Workers.

(a) the right to be informed, in writing, of the charges;

(c) mechanisms for democratic consultation in government health institutions;

"(b) It is a signatory to and/or a ratifier of multilateral conventions, declarations or resolutions relating

"SEC. 5. Termination or Ban on Deployment. - Notwithstanding the provisions of Section 4 hereof, in

"(n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.

"Any compromise/amicable settlement or voluntary agreement on money claims inclusive of damages

"(b) Suspension for not more than ninety (90) days; or

"(h) Conduct research for policy recommendations and program development."

"(a) Masterlists of Filipino migrant workers/overseas Filipino classified according to occupation/job

"(c) Masterlists of departing/arriving Filipinos;

"(d) Statistical profile on Filipino migrant workers/overseas Filipinos/tourists;

"(e) Blacklisted foreigners/undesirable aliens;

"(1) Death Certificate - In case of natural or accidental death;

"(2) Police or Accident Report - In case of accidental death; and

"(3) Medical Certificate - In case of permanent disablement;

(Sgd.) PROSPERO C. NOGRALES

(Sgd.) MARILYN B. BARUA-YAP

(Sgd.) EMMA LIRIO-REYES

Approved: March 8, 2010

(Sgd.) GLORIA MACAPAGAL-ARROYO

The Lawphil Project - Arellano Law Foundation

OMNIBUS RULES AND REGULATIONS IMPLEMENTING THE MIGRANT WORKERS AND

Section 1. Declaration of Policies.

(c) BI - Bureau of Immigration

(e) CICT - Commission on Information and Communications Technology

(g) DFA - Department of Foreign Affairs

(h) DILG - Department of Interior and Local Government

1. Those hired by international organizations

2. Those hired members of the diplomatic corps.

(j) DOH - Department of Health

(k) DOJ - Department of Justice

(l) DOLE - Department of Labor and Employment

(m) DOST - Department of Science and Technology

(n) DOT - Department of Tourism

(o) Employment Contract - refers to the following:

1. For land-based workers hired by private recruitment/employment agencies - an individual written

(r) Head or manage - refers to any of the following acts:

(u) Irregular/Undocumented Filipino migrant workers - refer to the following:

(1) Those who acquired their passports through fraud or misrepresentation;

(2) Those who possess expired visas or permits to stay;

(3) Those who have no travel document whatsoever;

(4) Those who have valid but inappropriate visas; or

(v) Labor Code - Presidential Decree No. 442, as amended

(x) LGU - Local Government Unit

(z) NBI- National Bureau of Investigation

(aa) NCC- National Computer Center