VICTORIAS MILLING COMPANY, INC., petitioner-appellant, vs. SOCIAL SECURITY COMMISSION, respondent-appellee.

G.R. No. L-16704             March 17, 1962 

Ross, Selph, and Carrascoso for petitioner-appellant.

Office of the Solicitor General and Ernesto T. Duran for respondent-appellee. 

Related topic:

ARTICLE 2. Laws shall take effect after fifteen days following the completion of their publication either in the Official Gazette (or in a newspaper of general circulation in the Philippines,) unless it is otherwise provided.

BARRERA, J.: 

FACTS:

1. Social Security Commission (SSC)issued Circular no. 22 requiring all employers to include all of the employees' bonuses and overtime time pay, as well as the cash value of other media remuneration that will be considered when computing for the premium monthly contribution due to the commission.

2. The petitioner-appellant (Victorias Milling Company Inc.) questioned the validity of that circular for the lack of publication in the Official Gazette. 

3. SSC overruled and stated that the Circular was a mere administrative interpretation of the statute that need not be published in the Official Gazette. 

4. Dissatisfied, the petitioner appealed to the Supreme Court.

ISSUE:

Is the Circular 22 issued by the Social Security Commission valid without publication in the Official Gazette?

RULING:

YES it is valid since it is merely an administrative interpretation. According to a precedent, administrative rules and regulations give the implementing administrative body the power to make a law with the force and effect of a valid law. On the other hand, administrative interpretation, although it gives an opinion or state of policy, merely interprets a pre-existing law. In the present case, since the definition of the term compensation was changed, it was upon the Commission to issue a guide as to how the change could be interpreted. Since the Circular in question was a mere administrative interpretation, it doesn't fall under the coverage of Article 2, requiring laws to be published in the Official Gazette. Thus, Circular 22 is valid.