DEFINITION:
has not obtained a substantially equivalent and regular
Agrarian Reform means redistribution of lands,
regardless of crops or fruits produced, to farmers and
regular farmworkers who are landless, irrespective of
tenurial arrangement, to include the totality of factors
and support services designed to lift the economic
status of the beneficiaries and all other arrangements
alternative to the physical redistribution of lands, such
as production or profit-sharing, labor administration,
and the distribution of shares of stocks, which will
allow beneficiaries to receive a just share of the fruits
of the lands they work.
Agriculture, Agricultural Enterprise or Agricultural
Activity means the cultivation of the soil, planting of
crops, growing of fruit trees, raising of livestock,
poultry or fish, including the harvesting of such farm
products, and other farm activities and practices
performed by a farmer in conjunction with such
farming operations done by person whether natural or
juridical.
Agricultural Land refers to land devoted to agricultural
activity as defined in this Act and not classified as
mineral, forest, residential, commercial or industrial
land.
Agrarian Dispute refers to any controversy relating to
tenurial arrangements, whether leasehold, tenancy,
stewardship or otherwise, over lands devoted to
agriculture, including disputes concerning
farmworkers' associations or representation of persons
in negotiating, fixing, maintaining, changing, or
seeking to arrange terms or conditions of such tenurial
arrangements.
Idle or Abandoned Land refers to any agricultural land
not cultivated, tilled or developed to produce any crop
nor devoted to any specific economic purpose
continuously for a period of three (3) years
immediately prior to the receipt of notice of acquisition
by the government as provided under this Act, but
does not include land that has become permanently or
regularly devoted to non-agricultural purposes.t does
not include land which has become unproductive by
reason of force majeure or any other fortuitous event,
provided that prior to such event, such land was
previously used for agricultural or other economic
purpose.
Farmer refers to a natural person whose primary
livelihood is cultivation of land or the production of
agricultural crops, either by himself, or primarily with
the assistance of his immediate farm household,
whether the land is owned by him, or by another
person under a leasehold or share tenancy agreement
or arrangement with the owner thereof.
Farmworker is a natural person who renders service
for value as an employee or laborer in an agricultural
enterprise or farm regardless of whether his
compensation is paid on a daily, weekly, monthly or
"pakyaw" basis. The term includes an individual whose
work has ceased as a consequence of, or in
connection with, a pending agrarian dispute and who
farm employment.
Regular Farmworker is a natural person who is
employed on a permanent basis by an agricultural
enterprise or farm.
Seasonal Farmworker is a natural person who is
employed on a recurrent, periodic or intermittent basis
by an agricultural enterprise or farm, whether as a
permanent or a non-permanent laborer, such as
"dumaan", "sacada", and the like.
Other Farmworker is a farmworker who does not fall
under paragraphs (g), (h) and (i).
Cooperatives shall refer to organizations composed
primarily of small agricultural producers, farmers,
farmworkers, or other agrarian reform beneficiaries
who voluntarily organize themselves for the purpose of
pooling land, human, technological, financial or other
economic resources, and operated on the principle of
one member, one vote. A juridical person may be a
member of a cooperative, with the same rights and
duties as a natural person.
Section 4. Scope/Coverage. — The Comprehensive
Agrarian Reform Law of 1989 shall cover, regardless
of tenurial arrangement and commodity produced, all
public and private agricultural lands, as provided in
Proclamation No. 131 and Executive Order No. 229,
including other lands of the public domain suitable for
agriculture.
More specifically the following lands are covered by
the Comprehensive Agrarian Reform Program:
(a) All alienable and disposable lands of the
public domain devoted to or suitable for
agriculture. No reclassification of forest or
mineral lands to agricultural lands shall be
undertaken after the approval of this Act until
Congress, taking into account ecological,
developmental and equity considerations, shall
have determined by law, the specific limits of
the public domain.
(b) All lands of the public domain in excess of
the specific limits as determined by Congress
in the preceding paragraph;
(c) All other lands owned by the Government
devoted to or suitable for agriculture; and
(d) All private lands devoted to or suitable for
agriculture regardless of the agricultural
products raised or that can be raised thereon.
Section 6. Retention Limits. — Except as otherwise
provided in this Act, no person may own or retain,
directly or indirectly, any public or private agricultural
land, the size of which shall vary according to factors
governing a viable family-size farm, such as
commodity produced, terrain, infrastructure, and soil
fertility as determined by the Presidential Agrarian
Reform Council (PARC) created hereunder, but in no
case shall retention by the landowner exceed five (5)
hectares. Three (3) hectares may be awarded to each
child of the landowner, subject to the following
qualifications: (1) that he is at least fifteen (15) years
of age; and (2) that he is actually tilling the land or
directly managing the farm: provided, that landowners
whose lands have been covered by Presidential
Decree No. 27 shall be allowed to keep the areas
originally retained by them thereunder: provided,
further, that original homestead grantees or their direct
compulsory heirs who still own the original homestead
at the time of the approval of this Act shall retain the
same areas as long as they continue to cultivate said
homestead.
The right to choose the area to be retained, which
shall be compact or contiguous, shall pertain to the
landowner: provided, however, that in case the area
selected for retention by the landowner is tenanted,
the tenant shall have the option to choose whether to
remain therein or be a beneficiary in the same or
another agricultural land with similar or comparable
features.n case the tenant chooses to remain in the
retained area, he shall be considered a leaseholder
and shall lose his right to be a beneficiary under this
Act.n case the tenant chooses to be a beneficiary in
another agricultural land, he loses his right as a
leaseholder to the land retained by the landowner. The
tenant must exercise this option within a period of one
(1) year from the time the landowner manifests his
choice of the area for retention.
In all cases, the security of tenure of the farmers or
farmworkers on the land prior to the approval of this
Act shall be respected.
Upon the effectivity of this Act, any sale, disposition,
lease, management, contract or transfer of possession
of private lands executed by the original landowner in
violation of the Act shall be null and void: provided,
however, that those executed prior to this Act shall be
valid only when registered with the Register of Deeds
within a period of three (3) months after the effectivity
of this Act. Thereafter, all Registers of Deeds shall
inform the Department of Agrarian Reform (DAR)
within thirty (30) days of any transaction involving
agricultural lands in excess of five (5) hectares.
Section 10. Exemptions and Exclusions. — Lands
actually, directly and exclusively used and found to be
necessary for parks, wildlife, forest reserves,
reforestation, fish sanctuaries and breeding grounds,
watersheds, and mangroves, national defense, school
sites and campuses including experimental farm
stations operated by public or private schools for
educational purposes, seeds and seedlings research
and pilot production centers, church sites and
convents appurtenant thereto, mosque sites and
Islamic centers appurtenant thereto, communal burial
grounds and cemeteries, penal colonies and penal
farms actually worked by the inmates, government and
private research and quarantine centers and all lands
with eighteen percent (18%) slope and over, except
those already developed shall be exempt from the
coverage of the Act.
Section 22. Qualified Beneficiaries. — The lands
covered by the CARP shall be distributed as much as
possible to landless residents of the same barangay,
or in the absence thereof, landless residents of the
same municipality in the following order of priority:
(a) agricultural lessees and share tenants;
(b) regular farmworkers;
(c) seasonal farmworkers;
(d) other farmworkers;
(e) actual tillers or occupants of public lands;
(f) collectives or cooperatives of the above
beneficiaries; and
(g) others directly working on the land.
Section 41. The Presidential Agrarian Reform Council.
Section 44. Provincial Agrarian Reform Coordinating
Committee (PARCCOM). —
...The PARCCOM shall coordinate and monitor the
implementation of the CARP in the province.t shall
provide information on the provisions of the CARP,
guidelines issued by the PARC and on the progress of
the CARP in the province.
Section 46. Barangay Agrarian Reform Committee
(BARC)
Section 47. Functions of the BARC. — In addition to
those provided in Executive Order No. 229, the BARC
shall have the following functions:
(a) Mediate and conciliate between parties
involved in an agrarian dispute including
matters related to tenurial and financial
arrangements;
(b) Assist in the identification of qualified
beneficiaries and landowners within the
barangay;
(c) Attest to the accuracy of the initial
parcellary mapping of the beneficiary's tillage;
(d) Assist qualified beneficiaries in obtaining
credit from lending institutions;
(e) Assist in the initial determination of the
value of the land;
(f) Assist the DAR representatives in the
preparation of periodic reports on the CARP
implementation for submission to the DAR;
(g) Coordinate the delivery of support services
to beneficiaries; and
(h) Perform such other functions as may be
assigned by the DAR.
(2) The BARC shall endeavor to mediate, conciliate
and settle agrarian disputes lodged before it within
thirty (30) days from its taking cognizance thereof.f
after the lapse of the thirty day period, it is unable to
settle the dispute, it shall issue a certificate of its
proceedings and shall furnish a copy thereof upon the
parties within seven (7) days after the expiration of the
thirty-day period.
Section 64. Financial Intermediary for the CARP. —
The Land Bank of the Philippines shall be the financial
intermediary for the CARP, and shall insure that the
social justice objectives of the CARP shall enjoy a
preference among its priorities.
DAR ADMINISTRATIVE ORDER NO. 01-03
The Notice of Coverage (NOC) commences the
compulsory acquisition of private agricultural lands
coverable under the Comprehensive Agrarian Reform
Program (CARP). Along the various phases of the
CARP proceedings, the process stalls because of
Land Owner (LO) resistance, most of whom invoke the
ground of lack of notice or non-observance of due
process in attacking the proceedings. This Order aims
to plug common loopholes in the coverage process to
safeguard and ensure completion of the acquisition
process.
Commencement
Commencement by the Municipal Agrarian Reform
Officer (MARO) — After determining that a landholding
is coverable under the CARP, and upon
accomplishment of the Pre-Ocular Inspection Report,
the MARO shall prepare the NOC (CARP Form No. 5-
A).
Commencement by a party — Any person may
commence the proceedings herein by filing a petition
for coverage before the Department of Agrarian
Reform (DAR) Regional Office (DARRO) or DAR
Provincial Office (DARPO) of the region or province
where the subject landholding is located. Upon receipt
of a petition for coverage, the DARRO or DARPO shall
transmit the case folder to the MARO of the
municipality where the subject landholding is located.
From then on, all rules herein pertaining to service of a
copy of the NOC to the LO shall likewise apply to
service of a copy of the petition for coverage to the
LO.
DAR ADMINISTRATIVE ORDER NO. 02-03
SECTION 2. Statement of Policies — The exercise of
retention right by landowners shall be governed by the
following policies:
2.1.The landowner has the right to choose the area to
be retained by him which shall be compact and
contiguous, and which shall be least prejudicial to the
entire landholding and the majority of the farmers
therein.
2.2. The landowner shall exercise the right to retain by
signifying his intention to retain within sixty (60) days
from receipt of notice of coverage. Failure to do so
within the period shall constitute a waiver of the right
to retain any area.
2.3. Upon manifestation of the landowner's intention to
retain, he shall indicate the exact location thereof
within thirty (30) days from manifestation date. Failure
to do so shall authorize the Municipal Agrarian Reform
Officer (MARO) to choose said retention area.
2.4. The landowner has the obligation to cultivate the
land directly or thru labor administration and thereby
make the area he retains productive.
2.5. In all cases, all rights previously acquired by the
tenant farmers under PD 27 and the security of tenure
of the farmers or farmworkers on the land prior to the
approval of RA 6657 shall be respected. Furthermore,
actual tenant farmers in the landholdings shall not be
ejected or removed therefrom.
2.6. The sale, disposition, lease or transfer of private
lands by the original landowner in violation of RA 6657
shall be null and void. Transactions executed prior to
RA 6657 shall be valid only when registered with the
Register of Deeds within a period of three (3) months
after 15 June 1988 in accordance with Section 6 of RA
6657.
SECTION 3. Who May Apply for Retention
3.1.Any person, natural or juridical, who owns
agricultural lands with an aggregate area of more than
five (5) hectares may apply for retention area.
However, a landowner who exercised his right of
retention under PD 27 may no longer exercise the
same right under RA 6657. Should he opt to retain five
(5) hectares in his other agricultural lands, the seven
(7) hectares previously retained by him shall be
immediately placed under CARP coverage.
3.2. A landowner who owns five (5) hectares or less, of
land which are not yet subject of coverage based on
the schedule of implementation provided in Section 7
of RA 6657, may also file an application for retention
and a Certification of Retention shall be issued in his
favor.
3.3. The right of retention of a deceased landowner
may be exercised by his heirs provided that the heirs
must first show proof that the decedent landowner had
manifested during his lifetime his intention to exercise
his right of retention prior to 23 August 1990 (finality of
the Supreme Court ruling in the case of Association of
Small Landowners in the Philippines Incorporated
versus the Honorable Secretary of Agrarian Reform).
SECTION 4. Period to Exercise Right of Retention
under RA 6657
4.1. The landowner may exercise his right of retention
at any time before receipt of notice of coverage.
4.2. Under the Compulsory Acquisition (CA) scheme,
the landowner shall exercise his right of retention
within sixty (60) days from receipt of notice of
coverage.
4.3. Under the Voluntary Offer to Sell (VOS) and the
Voluntary Land Transfer (VLT)/Direct Payment
Scheme (DPS), the landowner shall exercise his right
of retention simultaneously at the time of offer for sale
or transfer.
SECTION 6. Waiver of the Right of Retention. — The
landowner waives his right to retain by committing any
of the following act or omission:
6.1. Failure to manifest an intention to exercise his
right to retain within sixty (60) calendar days from
receipt of notice of CARP coverage.
6.2. Failure to state such intention upon offer to sell or
application under the VLT/DPS scheme.
6.3. Execution of any document stating that he
expressly waives his right to retain. The MARO and/or
PARO and/or Regional Director shall attest to the due
execution of such document.
6.4. Execution of a Landowner Tenant Production
Agreement and Farmer's Undertaking (LTPA-FU) or
Application to Purchase and Farmer's Undertaking
(APFU) covering subject property.
6.5. Entering into a VLT/DPS or VOS but failing to
manifest an intention to exercise his right to retain
upon filing of the application for VLT/DPS or VOS.
6.6. Execution and submission of any
document indicating that he is consenting to the CARP
coverage of his entire landholding.
6.7. Performing any act constituting estoppel
by laches which is the failure or neglect for an
unreasonable length of time to do that which he may
have done earlier by exercising due diligence,
warranting a presumption that he abandoned his right
or declined to assert it.
SECTION 7. Criteria/Requirements for Award of
Retention — The following are the criteria in the grant
of retention area to landowners:
7.1. The land is private agricultural land;
7.2. The area chosen for retention shall be compact
and contiguous and shall be least prejudicial to the
entire landholding and the majority of the farmers
therein; TSHEIc
7.3. The landowner must execute an affidavit as to the
aggregate area of his landholding in the entire
Philippines; and
7.4. The landowner must submit a list of his children
who are fifteen (15) years old or over as of 15 June
1988 and who have been actually cultivating or directly
managing the farm since 15 June 1988 for
identification as preferred beneficiaries, as well as
evidence of such.
7.5. The landowner must execute an affidavit stating
the names of all farmers, agricultural lessees and
share tenants, regular farmworkers, seasonal
farmworkers, other farmworkers, actual tillers or
occupants, and/or other persons directly working on
the land; if there are no such persons, a sworn
statement attesting to such fact.
SECTION 9. When Retained Area is tenanted
9.1. In case the area selected by the landowner or
awarded for retention by the DAR is tenanted, the
tenant shall have the option to choose whether to
remain therein as lessee or be a beneficiary in the
same or another agricultural land with similar or
comparable features.
9.2. In case the tenant declines to enter into leasehold
and there is no available land to transfer, or if there is,
the tenant refuses the same, he may choose to be
paid disturbance compensation by the landowner in
such amount as may be agreed between the parties
taking into consideration the improvements made on
the land. However, in no case shall the agreed amount
be less than five (5) times the average gross harvest
on their landholding during the last five (5) preceding
calendar years pursuant to Section 36 of RA 3844, as
amended by Section 7 of RA 6389. If the parties fail to
agree on the amount of disturbance compensation,
either party may file a petition for fixing disturbance
compensation with the appropriate Provincial Agrarian
Adjudicator (PARAD). In the latter case, the petitioner
must show proof that earnest efforts were exerted by
the parties to fix the amount of disturbance
compensation, which efforts proved unsuccessful,
before the same was filed with the PARAD. The tenant
shall not be dispossessed or ejected from the
landholding, unless disturbance compensation is paid
and proof thereof is submitted to the MARO.
9.3. The tenant must exercise his option within one (1)
year from the time the landowner manifests his choice
of the area for retention, or from the time the MARO
has chosen the area to be retained by the landowner,
or from the time an order is issued granting the
retention.
9.4. In case the tenant chooses to remain in the
retained area, he shall be considered a leaseholder
and shall lose his right to be an Agrarian Reform
Beneficiary (ARB) under CARP. In this case, the
required lease agreement shall be executed in
accordance with relevant issuances on the matter.
9.5. The provisions on preemption and redemption
under RA 3844, as amended, shall apply to the lessee.
DAR ADMINISTRATIVE ORDER NO. 04-03
Republic Act (RA) 6657 or the Comprehensive
Agrarian Reform Law (CARL), Section 3, Paragraph
(c) defines "agricultural land" as referring to "land
devoted to agricultural activity as defined in this Act
and not classified as mineral, forest, residential,
commercial or industrial land."
Thus, all lands that are already classified as
commercial, industrial or residential before 15 June
1988 no longer need any conversion clearance.
DISTURBANCE COMPENSATION
4.1.The applicant shall pay disturbance compensation,
in cash or kind or combination of cash and kind, to the
farmers, agricultural lessees, share tenants,
farmworkers, and actual tillers (as defined and
following the order of priority in Section 22 of RA 6657)
found in the subject landholding, in such amount and
under such terms which the parties may mutually
agree upon among themselves.

4.2. The amount of disturbance compensation shall

not be less than five (5) times the average of gross
harvests on the subject landholding during the last five
(5) preceding calendar years, pursuant to Section 36
of RA 3844, as amended by Section 7 of RA 6389.

4.3. Compensation in kind may consist of some or all

or mixture of housing, homelots, employment, and/or
other benefits. The DAR shall approve the terms of
any agreement for the payment of disturbance
compensation and monitor compliance therewith.

4.4. Whenever there is a dispute on the fixing of

disturbance compensation or entitlement to
disturbance compensation, the Regional Director shall
refer the matter to the Adjudicator who shall be bound
to take cognizance of and resolve the case despite the
non-finality of the issue on whether or not the subject
land is exempt from CARP.

4.5. The Approving Authority may grant a conditional

exemption order, despite non-payment of disturbance
compensation or while awaiting determination of
entitlement thereto, subject however to the condition
that the applicant and/or landowner shall post a bond
in an amount to be determined by the Adjudicator.
Notwithstanding the posting of such bond, the property
applied for exemption shall not be developed for non-
agricultural purposes and the farmers, agricultural
lessees, share tenants, farmworkers, and actual tillers
thereof cannot be ejected therefrom until the finality of
the exemption 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.
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. owards this end, the State shall endeavor to
extend social security protection to workers and their
beneficiaries.
The Social Security System, hereinafter referred to as
'SSS', a corporate body, with principal place of
business in Metro Manila, Philippines is hereby
created.
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 term of the appointive members shall be three (3)
years.
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.
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.
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.
Powers and Duties of the Commission and SSS
(a) The Commission.
"(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.
"(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.
Settlement of Disputes.
The self-employed person shall be both employee and
employer at the same time.
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.
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.
Monthly salary credit - The compensation base for
contributions and benefits.
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.
Contingency - The retirement, death, disability, injury
or sickness and maternity of the member.
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.
Coverage. - (a) Coverage in the SSS shall be
compulsory upon all employees not over sixty (60)
years of age and their employers.

Any dispute arising under this Act with respect to

Effective Date of Coverage. - Compulsory coverage of
coverage, benefits, contributions and penalties
the employer shall take effect on the first day of his
thereon or any other matter related thereto, shall be
operation and that of the employee on the day of his
cognizable by the Commission, and any case filed with
employment.
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. 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
Employer- Any person, natural or juridical, domestic or
from that employment shall cease at the end of the
foreign, who carries on in the Philippines any trade,
month of separation, but said employee shall be
business, industry, undertaking, or activity of any kind
credited with all contributions paid on his behalf and
and uses the services of another person who is under
entitled to benefits according to the provisions of this
his orders as regards the employment.
Act. He may, however, continue to pay the total
contributions to maintain his right to full benefit.
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.
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.
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.
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.
REPUBLIC ACT NO. 8291 May 30, 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
Board — The Board of Trustees of the Government
Service Insurance System;
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;
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;
Active Member — A member who is not separated
from the service;
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;
Primary beneficiaries — The legal dependent spouse
until he/she
remarries and the dependent children;
Secondary beneficiaries — The dependent parents
and, subject to the restrictions on dependent children,
the legitimate descendants;
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;
Contribution — The amount payable to the GSIS by
the member and the employer in accordance with
Section 5 of this Act;
Lump sum — The basic monthly pension multiplied by
sixty (60);
Pensioner — Any person receiving old-age or
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;
employee at 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.

Conditions for Entitlement. — A member who retires

Compulsory Membership. — Membership in the GSIS
from the service shall be entitled to the retirement
shall be compulsory for all employees receiving
benefits in paragraph (a) of Section 13 hereof:
compensation who have not reached the compulsory
Provided, That:
retirement age, irrespective of employment status,
except members of the Armed Forces of the (1) he has rendered at least fifteen (15) years of
Philippines and the Philippine National Police, subject service;
to the condition that they must settle first their financial
(2) he is at least sixty (60) years of age at the time of
obligation with the GSIS, and contractuals who have
retirement; and
no employer and employee relationship with the
agencies they serve. (3) he is not receiving a monthly pension benefit from
permanent total disability.

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.

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.

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.

Interests 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.

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.

Retirement Benefits. — (a) Retirement benefit 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