EXECUTIVE ORDER NO. 28 July 16, 1986
FURTHER AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW.
WHEREAS, paragraph (c) of Sec. 4 Republic Act No. 1161, as amended, authorizes the Social Security Commission to provide for the feasible increases in benefits and the addition of new ones under such rules and regulations as the Commission may adopt subject to the approval of the President, provided that the actuarial stability or solvency of the Reserve Fund shall be guaranteed, and provided further that such increases in benefits shall not require any increase in contribution;
WHEREAS, the benefit structure for the low income group must constantly be upgraded to keep pace with the changing patterns of the social and economic development;
WHEREAS, actuarial studies conducted by the Social Security System show that certain income benefits provided for under Republic Act No. 1161, as amended, can be increased without adversely affecting the actuarial stability or solvency of the Social Security System Reserve Fund;
WHEREAS, an...
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Executive Orders
Further Amending Certain Provisions Of Republic Act No. 1161, As Amended, Otherwise Known As The Social Security Law.
Executive Order No. 28
Summary of Executive Order No. 28
Amendments to the Social Security Law (Republic Act No. 1161)
- Increase in Monthly Pension (Section 1, amending Section 12(b)):
• The monthly pension shall not be less than ₱200.
• The total pension paid shall not be less than 60 times the monthly pension, except for secondary beneficiaries.
- Increase in Funeral Benefit (Section 2, amending Section 13-B):
• A funeral grant of ₱1,500 shall be paid to help defray funeral expenses upon the death of a covered member, permanently totally disabled employee, or retiree.
- Increase in Sickness Benefit (Section 3, amending Section 14(a) and (1)):
• A covered employee who has paid at least three monthly contributions in the preceding 12 months and is confined for more than three days shall receive a daily allowance equivalent to 90% of their average salary credit, subject to the following conditions:
• The daily allowance shall not be less than ₱4 nor exceed ₱20. (Section 14(a)(1))
• The benefit shall not be paid longer than 120 days in one calendar year. (Section 14(a)(1))
• Unused portions of the 120 days cannot be carried forward to the subsequent year. (Section 14(a)(1))
- Grace Period for Remitting Contributions (Section 4, amending Section 22(e)):
• Employers who are delinquent or have not remitted monthly contributions may remit the contributions within six months from the issuance of this Executive Order without incurring the prescribed 3% penalty.
• If the employer fails to remit the contributions within the six-month grace period, the 3% penalty shall be imposed from the time the contributions first became due.
- Repealing Clause (Section 5):
• All laws, orders, rules, regulations, and other issuances inconsistent with this Executive Order are repealed or modified accordingly.
- Effectivity (Section 6):
• This Executive Order shall take effect immediately, except for the increase in benefits, which will take effect on August 1, 1986.
Amendments to the Social Security Law (Republic Act No. 1161)
- Increase in Monthly Pension (Section 1, amending Section 12(b)):
• The monthly pension shall not be less than ₱200.
• The total pension paid shall not be less than 60 times the monthly pension, except for secondary beneficiaries.
- Increase in Funeral Benefit (Section 2, amending Section 13-B):
• A funeral grant of ₱1,500 shall be paid to help defray funeral expenses upon the death of a covered member, permanently totally disabled employee, or retiree.
- Increase in Sickness Benefit (Section 3, amending Section 14(a) and (1)):
• A covered employee who has paid at least three monthly contributions in the preceding 12 months and is confined for more than three days shall receive a daily allowance equivalent to 90% of their average salary credit, subject to the following conditions:
• The daily allowance shall not be less than ₱4 nor exceed ₱20. (Section 14(a)(1))
• The benefit shall not be paid longer than 120 days in one calendar year. (Section 14(a)(1))
• Unused portions of the 120 days cannot be carried forward to the subsequent year. (Section 14(a)(1))
- Grace Period for Remitting Contributions (Section 4, amending Section 22(e)):
• Employers who are delinquent or have not remitted monthly contributions may remit the contributions within six months from the issuance of this Executive Order without incurring the prescribed 3% penalty.
• If the employer fails to remit the contributions within the six-month grace period, the 3% penalty shall be imposed from the time the contributions first became due.
- Repealing Clause (Section 5):
• All laws, orders, rules, regulations, and other issuances inconsistent with this Executive Order are repealed or modified accordingly.
- Effectivity (Section 6):
• This Executive Order shall take effect immediately, except for the increase in benefits, which will take effect on August 1, 1986.