Victoria’s Milling Company, Inc v. Social Security Commission FACTS: On October !, "!#, t$e Social Security Commission issue% Circular &o. '' re(uiring all employers to inclu%e in t$e )mployee*s remuneration +salary all bonu bonuse ses s an% an% over overti time me pay pay, as -e -ell ll as t$e t$e cas$ cas$ valu value e o ot$e ot$err me%i me%ia a o remuneration +service. /pon /pon receip receiptt o a copy copy t$ereo t$ereo, , petit petition ioner er Vict Victori orias as Mil Millin ling g Compan Company, y, Inc., Inc., t$roug$ t$roug$ counsel, counsel, -rote t$e Social Security Security Commissio Commission n in eect eect protesting protesting against t$e circular as contra%ictory to a previous Circular &o. 0 %ate% October 0, "!0 e1pressly e1clu%ing overtime pay an% bonus in t$e computation o t$e employers* employers* an% employees* employees* respective mont$ly premium contributions. Counsel urt$er (uestione% t$e vali%ity o t$e circular or lac2 o aut$ority on t$e t$e part part o t$e t$e Soci Social al Secu Securit rity y Comm Commis issi sion on to prom promul ulga gate te it -i -it$ t$ou outt t$e t$e approv approval al o t$e 3resi%ent 3resi%ent an% or lac2 o publicat publication ion in t$e Oicial 4a5ette. 4a5ette.
ISS/): 6$et$e 6$et$err or not Circular Circular &o. '' is a rule or regula regulatio tion, n, as contem contempla plate% te% in Section 7+a o 8epublic Act 9 empo-ering t$e Social Security Commission to a%opt, amen% an% repeal sub;ect to t$e approval approval o t$e 3resi%ent 3 resi%ent suc$ rules an% regulations as may be necessary to carry out t$e provisions an% purposes o t$is Act.< 8/=I&4: T$ere can be no %oubt t$at t$ere is a %istinction bet-een an a%ministrative rule rule or regu regula lati tion on an% an% an a%mi a%mini nist stra rati tive ve inte interp rpre reta tati tion on o a lala- -$ -$os ose e enorcement is entruste% to an a%ministrative bo%y. 6$en an a%ministrative agency promulgates rules an% regulations, it ma2es ma2es a ne- la- -it$ t$e orce an% eect o a vali% la-, -$ile -$en it ren%ers an opinion or gives a statement o policy, it merely interprets a pre>e1isting la-. 8ules an% regulations -$en promulgate% may be enorce% by a penal sanction provi%e% t$erein. In t$is sense, it $as been sai% t$at rules an% regulations are t$e pro%uct o a %elegat %elegate% e% po-er po-er to create ne- or a%%itiona a%%itionall legal legal provisio provisions ns t$at $ave t$e eect o la-. T$ereore, Circular &o. '' purports merely to a%vise employers>members o t$e System o -$at, in t$e lig$t o t$e amen%ment o t$e la-, t$ey s$oul% inclu%e in %eter %etermin mining ing t$e mont$l mont$ly y compen compensat sation ion o t$eir t$eir emplo employe yees es upon upon -$ -$ic$ ic$ t$e social security contributions s$oul% be base%, an% t$at suc$ circular %i% not re(uir re(uire e presi% presi%ent ential ial appro approva vall an% an% public publicati ation on in t$e Oici Oicial al 4a5et 4a5ette te or its eectivity.
T$e 8esolution appeale% rom is $ereby airme%, -it$ costs against appellant. So or%ere%. In avor -it$ Social Security Commission. Costs against Victoria’s Milling Company.
