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SOCIAL LEGISLATION

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UNIVERSITYOFSANTOTOMAS
Fac ul t a d de De r e c h o Ci v i l
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
F.SOCIALLEGISLATION

Q:WhatisSocialLegislation?

A: It consists of statutes, regulations and


jurisprudence that afford protection to labor,
especially to working women and minors, and is in
fullaccordwiththeconstitutionalprovisionsonthe
promotion of social justice to insure the well being
andeconomicsecurityofallthepeople.

1.SOCIALSECURITYLAW
(RA8282)

Q:Whatisthepolicyobjectiveintheenactmentof
(SSS)Law?

A:ItisthepolicyoftheStatetoestablish,develop,
promoteandperfectasoundandviabletaxexempt
SSSsuitabletotheneedsofthepeoplethroughout
the Phils., 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
contingenciesresultinginlossofincomeorfinancial
burden.(Sec.2)

TheenactmentofSSSlawisalegitimateexerciseof
thepolicepower.Itaffordsprotectiontolaborand
is in full accord with the constitutional mandate on
the promotion of social justice. (Roman Catholic
ArchbishopofManilav.SSS,G.R.No.15045Jan.20,
1961)

Q:Arethepremiumsconsideredastaxes?

A: No. The funds contributed to the System belong


to the members who will receive benefits, as a
matter of right, whenever the hazards provided by
the law occur. (CMS Estate, Inc., v. SSS, G.R. No.
26298Sep.28,1984)

Q:ArebenefitsreceivedunderSSSLawpartofthe
estateofamember?

A:No.BenefitsreceivableundertheSSSLawarein
the nature of a special privilege or an arrangement
secured by the law pursuant to the policy of the
State to provide social security to the workingman.
The benefits are specifically declared not
transferable and exempt from tax, legal processes
and liens. (SSS v. Davac, et. al., G.R. No.21642, July
30,1966)

Q:Howaredisputessettled?

A:
DISPUTESETTLEMENT
Social
Security
Commission
(SSC)
Disputesinvolving:
1. Coverage
2. Benefits
3. Contributions
4. Penalties
5. Anyothermatterrelated
thereto.

Note: Disputes within the mandatory


period of 20 days after the submission of
evidence.(Sec.5a)

Decision, in the absence of appeal, shall


be final and executory 15 days after date
ofnotification.(Sec.5b)
CA/SC
DecisionsofSSCshallbeappealableto:
1.CAquestionsoflawandfact(Sec.
5c)
2.SCquestionsoflaw.(Sec.5c)

Execution
ofdecision

SSCmay,motupropriooronmotionof
any interested party, issue a writ of
execution to enforce any of its
decisions or awards, after it has
becomefinalandexecutory.(Sec.5d)

Q: Can the SSC validly reevaluate the findings of


the RTC, and on its own, declare the latters
decisiontobebereftofanybasis?

A: No. It cannot review, much less reverse,


decisions rendered by courts of law as it did in the
caseatbarwhenitdeclaredthattheCFIOrderwas
obtained through fraud and subsequently
disregardedthesame,makingitsownfindingswith
respecttothevalidityofBailonandAlicesmarriage
on the one hand and the invalidity of Bailon and
Teresitasmarriageontheother.Ininterferingwith
and passing upon the CFI Order, the SSC virtually
acted as an appellate court. The law does not give
theSSCunfettereddiscretiontotriflewithordersof
regular courts in the exercise of its authority to
determine the beneficiaries of the SSS. (SSS vs.
Teresita Jarque Vda. De Bailon, G.R. No. 165545,
Mar.24,2006,J.CarpioMorales)

Q:Whoisanemployer(Er)?

A: Any person, natural or juridical, domestic or


foreign, who carries into the Phils. any trade,
business, industry, undertaking or activity of any
kindandusestheservicesofanotherpersonwhois
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 selfemployed
person shall be both Ee and Er at the same time.
(Sec8[c])

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108

Q:Whoisanemployee(Ee)?

A: Any person who performs services for an Er in


whicheitherorbothmentalandphysicaleffortsare
used and who receives compensation for such
services, where there is an ErEe relationship:
Provided,Thataselfemployedpersonshallbeboth
EeandEratthesametime.(Sec.8[d])

Q:Whatisemployment?

A:GR:AnyserviceperformedbyanEeforhisEr.

XPNs:
1. Employmentpurelycasualandnotforthe
purpose of occupation or business of the
Er;
2. Service performed on or in connection
with an alien vessel by an Ee if he is
employedwhensuchvesselisoutsidethe
Phils;
3. Service performed in the employ of the
Phil. Government or instrumentality or
agencythereof;
4. Service performed in the employ of a
foreign government or international
organization, or their whollyowned
instrumentality:
5. Such other services performed by
temporary and other Ees which may be
excluded by regulation of the SSC. Ees of
bona fide independent contractors shall
notbedeemedEesoftheErengagingthe
servicesofsaidcontractors.(Sec.8[j])

Q:Whatisacontingency?

A: The retirement, death, disability, injury or


sicknessandmaternityofthemember.

a.Coverage

Q:WhoarecoveredbySSS?

A:
1. CompulsoryCoverage
a. All Ees not over 60 years of age and
theirErs;
b. Domestic helpers whose income is
not less than P 1000/month and not
over60yearsofageandtheirErs;
Limitations:
a. Any benefit earned by the Ees
under private benefit plans
existing at the time of the
approval of the Act shall not be
discontinued, reduced or
otherwiseimpaired;
b. Existing private plans shall be
integrated with the SSS but if
the Er under such plan is
contributing more than what is
required by this Act, he shall
pay to the SSS the amount
required to him, and he shall
continue with his contributions
lesstheamountpaidtoSSS;
c. Any changes, adjustments,
modifications, eliminations or
improvementsinthebenefitsof
theremainingprivateplanafter
the integration shall be subject
to agreements between the Ers
andtheEesconcerned;and
d. The private benefit plan which
the Er shall continue for his Ees
shall remain under the Ers
managementandcontrolunless
there is an existing agreement
tothecontrary
c. All selfemployed considered both
anErandEe
d. Professionals;
e. Partners and single proprietors of
business;
f. Actors and actresses, directors,
scriptwriters and news
correspondents who do not fall
within the definition of the term
Ee;
g. Professional athletes, coaches,
trainersandjockeys;AND
h. Individual farmers and fisherman.
(Sec.9)

2. Voluntary
a. 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;(Sec.9[b])
b. Filipinos recruited by foreignbased
Ers for employment abroad may be
covered by the SSS on a voluntary
basis;(Sec.9[c])
c. Ee separated from employment to
maintainhisrighttofullbenefits
d. Selfemployed who realizes no
incomeforacertainmonth

3. ByAgreement
Any foreign government, international
organization, or their whollyowned
SOCIAL LEGISLATION

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UNIVERSITYOFSANTOTOMAS
Fac ul t a d de De r e c h o Ci v i l
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
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instrumentality employing workers in the
Phils., may enter into an agreement with
the Phil. government for the inclusion of
such Ees in the SSS except those already
covered by their respective civil service
retirementsystems.

Q: When is the compulsory coverage deemed


effective?

A:
1. Employeronthefirstdayofoperation
2. Employeeonthedayofhisemployment
3. Compulsory coverage of selfemployed
uponhisregistrationwiththeSSS

Q:Whatistheeffectofseparationofanemployee
fromhisemploymentundercompulsorycoverage?

A:
1. His Ers obligation to contribute arising
from that employment shall cease at the
endofthemonthofseparation,
2. But said Ee shall be credited with all
contributions paid on his behalf and
entitled to benefits according to the
provisionsofR.A.9282.
3. He may, however, continue to pay the
totalcontributionstomaintainhisrightto
fullbenefit.(Sec.11)

Note: The above provision recognizes the once a


member,alwaysamemberrule.

Q:Whatistheeffectofinterruptionofbusinessor
professionalincome?

A: Iftheselfemployedmemberrealizesnoincome
inanygivenmonth:

1. He shall not be required to pay


contributionsforthatmonth.
2. Hemay,however,beallowedtocontinue
payingcontributionsunderthesamerules
and regulations applicable to a separated
Eemember:
3. Provided, that no retroactive payment of
contributions shall be allowed other than
asprescribedunderSec.22A.(Sec.11A)

Q: On her way home from work, Asteria


Benedicta, a machine operator in a sash factory,
enters a movie house to relax. But she is stabbed
by an unknown assailant. Her claim for benefits
under the SSS Law is denied on the ground that
her injury is not workconnected. Is the denial
legal?Why?

A: No. It is not necessary, for the enjoyment of


benefits under the SSS Law that the injury is work
connected.Whatisimportantismembershipinthe
SSS and not the causal connection of the work of
theEetohisinjuryorsickness.

Claims based on workconnected injuries or


occupational diseases are covered by the State
InsuranceFund.

b.Exclusionsfromcoverage

Q: Enumerate the kindsof employment which are


exceptedfromcompulsorycoverageundertheSSS
Law.

A:UnderSection8(j)ofR.A.1161,asamended,the
following services or employments are excepted
fromcoverage:

1. Employmentpurelycasualandnotforthe
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
thePhilippines;

3. Service performed in the employ of the


Philippine Government or instrumentality
oragencythereof;

4. Service performed in the employ of a


foreign government or international
organization, or their whollyowned
instrumentality:

Provided, however,That this exemption


notwithstanding,anyforeigngovernment,
internationalorganizationortheirwholly
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
ofsuchemployeesintheSSSexceptthose
already covered by their respective civil
service retirement systems:Provided,
further,Thatthetermsofsuchagreement
shall conform with the provisions of this
Act on coverage and amount of payment
of contributions and benefits:Provided,
finally,ThattheprovisionsofthisActshall
besupplementarytoanysuchagreement;
and


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110
5. Such other services performed by
temporary and other employees which
may be excluded by regulation of the
Commission. Employees ofbona
fideindependent contractors shall not be
deemed employees of the employer
engagingtheserviceofsaidcontractors.

c.Benefits

Q:WhatarethebenefitsundertheSSSAct?

A:
1. MonthlyPension
2. RetirementBenefits
3. DeathBenefits
4. DisabilityBenefits
5. FuneralBenefits
6. SicknessBenefits
7. MaternityBenefits

Q: Are the benefits provided for in the SSS Law


transferable?

A: Benefits provided for in the SSS Law are not


transferable and no power of attorney or other
document executed by those entitled thereto in
favorofanyagent,attorneyoranyotherpersonfor
the collection thereof on their behalf shall be
recognized,exceptwhentheyarephysicallyunable
to collect personally such benefits. (Sec.15, R.A.
1161,asamended)

Q:WhatarethereportorialrequirementsoftheEr
andselfemployed?

A:
1. Er Report immediately to SSS the names,
ages, civil status, occupations, salaries and
dependentsofallhiscoveredEes

2. SelfemployedReporttoSSSwithin30days
fromthefirstdayofhisoperation,hisname,
age, civil status, occupation, average
monthlynetincomeandhisdependents

MonthlyPension

Q:Howmuchisthemonthlypension?

A:
1. The monthly pension shall be the highest
ofthefollowingamounts:
a. Thesumofthefollowing:
ii. P300.00;plus
iii. 20% of the average monthly
salarycredit;plus
iv. 2% of the average monthly
salary credit for each credited
year of service in excess of 10
years;or
b. 40% of the average monthly salary
credit;or
c. P1,000.00, provided that the
monthly pension shall in no case be
paidforanaggregateamountofless
thansixty(60)months(Sec.12[a])
2. MinimumPension
a. P1,200.00 members with at least
10creditedyearsofservice
b. P2,400.00 for those with 20 credited
yearsofservice.(Sec.[b])

Q:Whatwillhappentothemonthlypensionofa
retireeincaseofdeath?

A:
1. Upon the death of the retired member,
hisprimarybeneficiariesasofthedateof
his retirement will get 100% of his
monthly pension plus the dependent's
pensionforeachchild.

Note: The above phrase primary


beneficiaries (as of the date of his
retirement) was declared unconstitutional
bytheSCinDycaicov.SSSandSSC(G.R.No.
16137, June 6, 2006) because it is in
violation of the equal protection, due
processandsocialjustice.

2. Ifhedieswithin60monthsfromthestart
of his pension and he has no primary
beneficiaries, his secondary beneficiaries
willreceivealumpsumbenefitequivalent
to the difference of 60 multiplied by the
monthly pension and the total monthly
pensions paid by the SSS excluding the
dependent'spension.(Sec.12B[d])

Q: Bonifacio and Elena are living together as


husband and wife without the benefit of
marriage. Bonifacio declared Elena and their
children as his primary beneficiaries in his self
employed data record in SSS. A few months prior
to his death, Bonifacio married Elena.Is Elena
entitledtothesurvivorspension?

A: Yes, she is considered primary beneficiary of


Bonifacio. The phrase Upon the death of the
retired member, his primary beneficiaries as of the
date of his retirement will get 100 per cent of his
monthly pension xxx of Sec. 12B d of RA 8282 is
unconstitutional because it violates the: (1) equal
protection clause because it impermissibly
discriminates against dependent spouses whose
SOCIAL LEGISLATION

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UNIVERSITYOFSANTOTOMAS
Fac ul t a d de De r e c h o Ci v i l
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
respective marriages to the SSS members were
contracted after the latters retirement; (2) due
process clause because it outrightly deprives
spouses who married the SSS members after their
retirement of the survivors pension, a property
interest, without giving them opportunity to be
heard;and(3)socialjustice.

Further, the survivorship pension applied for was


classifiedasdeathbenefits.Hence,thecontingency
that gives rise to the entitlement of Elena is the
death of Bonifacio and nothis retirement. (Dycaico
v.SSS,G.R.No.16137,June6,2006)

Q: When is the monthly pension and dependents


pensionsuspended?

A:
1. Uponthereemploymentorresumptionof
selfemployment
2. Recovery of the disabled member from
hispermanenttotaldisability
3. Failuretopresenthimselfforexamination
at least once a year upon notice by the
SSS.(Sec.13A[b])

RetirementBenefit

Q:Whatisaretirementbenefit?

A:Itisacashbenefitpaidtoamemberwhocanno
longerworkduetooldage.

Q:Whatarethetypesofretirementbenefits?

A:
1. Monthly Pension Lifetime cash benefit
paidtoaretireewhohaspaidatleast120
monthly contributions to the SSS prior to
thesemesterofretirement.
2. Lump Sum Amount Granted to a retiree
who has not paid the required 120
monthlycontributions.

Q:Whoareentitledforretirementbenefits?

A:
1. Amemberwho
a. has paid at least 120 monthly
contributions priorto the semester of
retirement;
b. atleast60yearsold;and
c. already separated from employment
orhasceasedtobeselfemployed,OR

2. At least 65 years old, shall be entitled for


as long as he lives to the monthly
pension;(Sec12B[a])

3. Amember
a. At least 60 years old at retirement;
and
b. Doesnotqualifyforpensionbenefits
underparagraph(a)aboveentitled
to a lump sum benefit equal to the
total contributions paid by him and
onhisbehalf;
c. Must be separated from
employment and is not continuing
payment of contributions to the SSS
onhisown.(Sec.12B[b])

Q: What happens when the retirement pensioner


isreemployedorresumesselfemployment?

A: The monthly pension of a retirement pensioner


whoresumesemploymentandislessthan65years
old will be suspended. He and his Er will again be
subjecttocompulsorycoverage.(Sec.12B[c])

Q: Are the children of a retiree member entitled


tothedependent'spension?

A:Yes(Sec.12[A]).However,only5minorchildren,
beginning from the youngest, are entitled to the
dependents' pension. No substitution is allowed.
Where there are more than 5 legitimate and
illegitimate children, the legitimate ones will be
preferred.

Q: For how long will the dependent child receive


thepension?

A: Until the child reaches 21 years of age, gets


married,getsemployedandearnsP300amonthor
more,ordies.

However, the dependent's pension is granted for


lifetochildrenwhoareover21yearsold,provided
theyareincapacitatedandincapableofselfsupport
duetophysicalormentaldefectwhichiscongenital
oracquiredduringminority.

DeathBenefit

Q: When is a beneficiary entitled to death


benefits?

A:
1. Upondeathofamember,ifhehaspaidat
least 36 monthly contributions prior to
thesemesterofdeath:
a. primary beneficiaries shall be
entitledtothemonthlypension;or
b. If there are noprimary beneficiaries,
secondary beneficiaries shall be

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112
entitled to a lump sum benefit
equivalent to 36 times the monthly
pension.
2. Upon death of a member If he has not
paid the required 36 monthly
contributions prior to the semester of
death:
a. Primary or secondary beneficiaries
shall be entitled to a lump sum
benefit equivalent to the monthly
pensionmultipliedbythenumberof
monthly contributions paid to the
SSS:or
b. 12 times the monthly pension,
whicheverishigher.(Sec.13)

DisabilityBenefit

Q:Whatisadisabilitybenefit?

A: It is a cash benefit paid to a member who


becomes permanently disabled, either partially or
totally.

Q: What is the difference between death benefits


andPermanentTotalDisabilitybenefits?

A:
DeathBenefits PTDBenefits
Requisite
atleast36monthlycontributions
Benefitspayabletowhom
PrimaryBeneficiaries Member
Failuretomake36monthlypayments
Benefitsshallbeinlumpsumequivalenttothe
monthlypensiontimesthenumberofmonthly
contributionspaidtoSSSor12timesthemonthly
pension,whicheverishigher.

Q: What is the effect of the death of the PTD


pensioner?

A:
1. Primary beneficiaries are entitled to
receivemonthlypensionasofthedateof
disability.
2. No primary beneficiaries and he dies
within 60 months from the start of his
monthlypensionsecondarybeneficiaries
shall be entitled to a lump sum benefit
equivalent to the total monthly pensions
corresponding to the balance of the 5
year guaranteed period excluding the
dependentspension.(Sec.13A[c])

Q: What is the effect of retirement or death to


partialdisabilitypension?

A: Disability pension shall cease upon his


retirementordeath.(Sec13A[j])

FuneralBenefit

Q:Whatisthefuneralbenefit?

A:AfuneralgrantequivalenttoP12,000.00shallbe
paid, in cash or in kind, to help defray the cost of
expenses upon the death of a member or retiree.
(Sec.13B)

SicknessBenefit

Q:Whatissicknessbenefit?

A: Itisadailycashallowancepaidforthenumber
ofdaysamemberisunabletoworkduetosickness
orinjury.

Q: What are the requirements to be entitled for


sicknessbenefit?

A:
1. The member paid at least 3 monthly
contributions in the 12month period
immediately preceding the semester of
sicknessorinjury
2. Confined for more than 3 days in a
hospital or elsewhere with the approval
oftheSSS
3. He has used all current company sick
leaveswithpayforthecurrentyear
4. Notified his Er or the SSS, if he is a
separated, voluntary or selfemployed
member

Q:Whowillpaysicknessbenefits?andhowmuch
isthebenefit?

A:TheErshallpaythe:
1. Ee for each compensable confinement or
fractionthereofor

2. SSS if member is selfemployed daily


sickness benefit equivalent to 90% of his
average daily salary credit, subject to the
followingconditions:
a. In no case shall the daily sickness
benefitbepaidlongerthan120days
in 1 calendar year, nor shall any
unused portion of the 120 days of
sickness benefit granted be carried
forward and added to the total
number of compensable days
allowableinthesubsequentyear;
SOCIAL LEGISLATION

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UNIVERSITYOFSANTOTOMAS
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ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
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b. Notpaidformorethan240dayson
account of the same confinement;
and
c. Ee member shall notify his Er of the
fact of his sickness or injury within 5
calendar days after the start of his
confinement unless such
confinement:
i. isinahospital
ii. the Ee became sick or was
injured while working or
within the premises of the Er
(notification to the Er not
necessary);

3. If the member is unemployed or self


employed, he shall directly notify the SSS
ofhisconfinementwithin5calendardays
after the start thereof unless such
confinementisinahospitalinwhichcase
notificationisalsonotnecessary;

4. Where notification is necessary,


confinement shall be deemed to have
started not earlier than the 5th day
immediately preceding the date of
notification.(Sec.14[b])

Note: The law does not require that sickness must be


relatedtothedutiesofthebeneficiaries.

Q: When will compensable confinement


commence?

A:
1. Beginsonthe1stdayofsickness
2. Payment of such allowances shall be
promptlymadebytheEr:
a. every regular payday or on the 15
th

andlastdayofeachmonth,
b. incaseofdirectpaymentbytheSSS
as long as such allowances are due
andpayable.(Sec.14[b])

Q:WhataretherequirementsinorderthatErmay
claimreimbursementofthesicknessbenefit?

A:
1. 100% of daily benefits shall be
reimbursed by SSS if the following
requirementsaresatisfied:
a. Receipt of SSS of satisfactory proof
ofsuchpaymentandlegalitythereof:
b. The Er has notified the SSS of the
confinement within 5 calendar days
after receipt of the notification from
theEemember:

2. Er shall be reimbursed only for each day


of confinement starting from the 10
th

calendar day immediately preceding the


date of notification to the SSS if the
notification to the SSS is made beyond 5
calendar days after receipt of the
notificationfromtheEemember.(Sec.14
[c])

Q:WhenwillreimbursementbemadebySSS?

A:GR: SSS shall reimburse the Er or pay the


unemployed member only for confinement
within1yearimmediatelyprecedingthedatethe
claimforbenefitorreimbursementisreceivedby
theSSS

XPN:Confinementinahospitalinwhichcasethe
claimforbenefitorreimbursementmustbefiled
within 1 year from the last day of confinement.
(Sec.14[c])

MaternityBenefit

Q:Whatisthematernitybenefit?

A: The maternity benefit is a daily cash allowance


granted to a female member who was unable to
workduetochildbirthormiscarriage.

Q: What are the qualifications for entitlement to


thematernitybenefit?

A:
1. She has paid at least three monthly
contributionswithinthe12monthperiod
immediately preceding the semester of
herchildbirthormiscarriage.
2. She has given the required notification of
her pregnancy through her employer if
employed, or to the SSS if separated,
voluntaryorselfemployedmember.

Q: Is the voluntary or selfemployed member also


entitledtothematernitybenefit?

A: Yes, A voluntary or a selfemployed member is


entitled to the maternity benefit provided that she
meetsthequalifyingconditions.

Q:Howmuchisthematernitybenefit?

A: The maternity benefit is equivalent to 100 per


cent of the members average daily salary credit
multiplied by 60 days for normal delivery or
miscarriage,78daysforcaesareansectiondelivery.

Q:Howisthematernitybenefitcomputed?

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114

A:
1. Exclude the semester of contingency
(deliveryormiscarriage).

Note: Semester refers to two consecutive


quarters ending in the quarter of
contingency. Quarter refers to three
consecutive months ending March, June,
SeptemberorDecember.

2. Count12monthsbackwardsstartingfrom
the month immediately before the
semesterofcontingency.

3. Identify the six highest monthly salary


creditswithinthe12monthperiod.

Note: Monthly salary credit means the


compensation base for contributions
benefitsrelatedtothetotalearningsforthe
month.

4. Addthesixhighestmonthlysalarycredits
togetthetotalmonthlysalarycredit.

5. Divide the total monthly salary credit by


180 days to get the average daily salary
credit. This is equivalent to the daily
maternityallowance.

6. Multiplythedailymaternityallowanceby
60 (for normal delivery or miscarriage) or
78days(forcaesareansectiondelivery)to
getthetotalamountofmaternitybenefit.

Q:Whatisthedifferenceofcompensabilityunder
theLaborLawandtheSocialSecurityLaw?

A: The claims are different as to their nature and


purpose. (Ortega vs. Social Security Commission,
G.R.No.176150,June25,2008)

LABORLAW SOCIALSECURITYLAW
Purpose
Governs compensability
of:
1. workrelated
disabilities
2. when there is loss
of income due to
workconnected
or work
aggravated injury
orillness.
Benefits are intended to
provide insurance or
protection against the
hazards or risks of
disability, sickness, old
age or death, inter alia,
irrespective of whether
theyarosefromorinthe
course of the
employment.
Nature
A disability is total and
permanentifasaresultof
the injury or sickness the
Ee is unable to perform
Disability may be
permanent total or
permanentpartial.
anygainfuloccupationfor
a continuous period
exceeding 120 days
regardless of whether he
losestheuseofanyofhis
bodyparts.

d.Beneficiaries

Q:Whoareprimarybeneficiaries?

A:
1. The dependent spouse until he or she
remarries

2. The dependent legitimate, legitimated or


legallyadopted,andillegitimatechildren,:
Provided, That the dependent illegitimate
children shall be entitled to 50% of the
share of the legitimate, legitimated or
legallyadoptedchildren.

Q:Whoaresecondarybeneficiaries?

A: In the absence of primary beneficiaries, the


dependentparents.

In the absence of all the foregoing, any other


person designated by the member as his or her
secondarybeneficiary.(Sec.8[k])

Q:Whoareconsidereddependents?

A:
1. The legal spouse entitled by law to
receivesupportfromthemember;
2. The legitimate, legitimated, or legally
adopted,andillegitimatechildwho:
a. Isunmarried,
b. Notgainfullyemployed,and
c. Hasnotreached21yearsofage,orif
over 21 years of age, he is
congenitallyorwhilestillaminorhas
been permanently incapacitated and
incapable of selfsupport, physically
ormentally.
3. The parent who is receiving regular
supportfromthemember.

Q:Whatismeantbydependentforsupport?

A: The entitlement to benefits as a primary


beneficiary requires not only legitimacy but also
dependence upon the member Ee. (Gil v. SSC CA
GRSP.37150,May8,1996)

Ifawifewhoisalreadyseparateddefactofromher
husband cannot be said to be "dependent for
support"uponthehusband,absentanyshowingto
SOCIAL LEGISLATION

115

UNIVERSITYOFSANTOTOMAS
Fac ul t a d de De r e c h o Ci v i l
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
the contrary. Conversely, if it is proved that the
husband and wife were still living together at the
timeofhisdeath,itwouldbesafetopresumethat
she was dependent on the husband for support,
unless it is shown that she is capable of providing
forherself.(SSSv.Aguas,G.R.No.165546,Feb.27,
2006)

Q: Who is entitled to the benefits of an SSS


member who was survived not only by his legal
wife,whoisnotdependentuponthemember,but
alsobytwocommonlawwiveswithwhomhehad
illegitimateminorchildren?

A: The illegitimate minor children shall be entitled


to the death benefits as primary beneficiaries
because the legal wife is not dependent upon the
member.TheSSSLawisclearthatforaminorchild
to qualify as a dependent the only requirements
are that he/she must be below 21 yrs. of age, not
marriednorgainfullyemployed.(Signeyv.SSS,G.R.
No.173582,Jan.28,2008)

Q:Whatiscompensation?

A: All actual remuneration for employment,


including the mandated cost of living allowance, as
well as the cash value of any remuneration paid in
anymediumotherthancashexceptthatpartofthe
remuneration received during the month in excess
ofthemaximumsalary.

Q: The owners of FALCON Factory, a company


engaged in the assembling of automotive
components, decided to have their building
renovated. (50) persons, composed of
engineers, architects and other construction
workers, were hired by the company for this
purpose. The work was estimated to be
completed in 3 years. The Ees contended that
since the work would be completed after more
than1year,theyshouldbesubjecttocompulsory
coverage under the Social Security Law. Do you
agree with their contention? Explain your answer
fully.

A: No. Under Sec. 8 (j) of R.A. 1161, as amended,


employment of purely casual and not for the
purpose of the occupation or business of the
employer are excepted from compulsory coverage.
An employment is purely casual if it is not for the
purposeofoccupationorbusinessoftheEr.

In the problem given, Falcon Factory is a company


engaged in the assembly of automotive
components. The 50 persons (engineers, architects
and construction workers) were hired by Falcon
Factory to renovate its building. The work to be
performed by these 50 people is not in connection
with the purpose of the business of the factory.
Hence, the employment of these 50 persons is
purely casual. They are, therefore, excepted from
the compulsory coverage of the SSS law. (2000 Bar
Question)

2.GSIS
(R.A.8291)

Q: What are the purposes behind the enactment
oftheGSISAct?

A: To provide and administer the following social


securitybenefitsforgovernmentemployees(Ee):

1. Compulsorylifeinsurance
2. Optionallifeinsurance
3. Retirementbenefits
4. Disability benefits to workrelated
contingencies;and
5. Deathbenefits

Q: Who are considered employers (Er) under the


GSISAct?

A:
1. NationalGovernment
2. Its political subdivisions, branches,
agencies,instrumentalities
3. GOCCs, and financial institutions with
originalcharters
4. Constitutional Commissions and the
Judiciary(Sec.2[c])

Q:CanSSSEesbecoveredbyGSIS?

A:Yes.

Q:WhoisanEmployeeormember?

A:Anyperson,receivingcompensationwhileinthe
service of an Er, whether by election or
appointment,irrespectiveofstatusofappointment,
including barangay and sanggunian officials. (Sec.
2[d])

Q:Whatiscompensation?

A: The basic pay or salary received by an Ee,


pursuant to his or her election or appointment,
excluding per diems, bonuses, OT pay, honoraria,
allowances and any other emoluments received in
addition to the basic pay which are not integrated
intothebasicpayunderexistinglaws.(Sec.2[i])

Q: Baradero is a member of the Sangguniang


BayanoftheMunicipalityofLaCastellana,Negros

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116
Occ.andispaidonaperdiembasis.Ontheother
hand, Belo a ViceGovernor of Capiz is in a hold
over capacity and is paid on a per diem basis. Are
the services rendered by Baradero and Belo on a
per diem basis creditable in computing the length
ofserviceforretirementpurposes?

A: Yes. The traditional meaning of per diem is a


reimbursement for extra expenses incurred by the
public official in the performance of his duties.
Under this definition the per diem is intended to
coverthecostoflodgingandsubsistenceofofficers
and employees when the latter are on a duty
outside of their permanent station. On the other
hand, a per diem could rightfully be considered a
compensation or remuneration attached to an
office.

The per diems paid to Baradero and Belo were in


the nature of compensation or remuneration for
their services as Sangguniang Bayan and Vice
Governor, respectively, rather than a
reimbursement for incidental expenses incurred
whileawayfromtheirhomebase.

If the remuneration received by a public official in


theperformanceofhisdutiesdoesnotconstitutea
mere allowance for expenses but appears to be
hisactualbasepay,thennoamountofcategorizing
the salary as a per diem would take the
allowances received from the term service with
compensation for the purpose of computing the
number of years of service in government. (GSIS v.
CSC,G.R.Nos.98395and102449,June19,1995)

Q:WhatarethesourcesoffundsoftheGSIS?

A: It comes from the monthly contributions of the


coveredEesandErs.(Sec.5)

The contributions of the Ees are deducted and


withheld by the Er each month from the monthly
salaryoftheformerandareremittedbythelatter,
together with its own share, to the System within
the first 10 days of each calendar month following
themonthtowhichthecontributionsapply.(Sec.6)

Q: What is the penalty in case of delayed


remittanceornonremittanceofcontributions?

A: The unremitted contributions shall be charged


interests as prescribed by the GSIS Board of
Trustees but shall not be less than 2% simple
interest per month from due date to the date of
paymentbytheemployersconcerned.

a.Coverage

Q: What government Ees are subject to coverage


undertheGSIS?

A:
GR: All Ees receiving compensation who have
not reached the compulsory retirement age,
irrespectiveofemploymentstatus.

XPNs:
1. Uniformedmembersofthe:
a.AFP;and
b.PNP.
2. Contractuals who have no Er and Ee
relationshipwiththeagenciestheyserve.

Q: Who are covered by life insurance, retirement


andothersocialsecurityprotection?

A:
GR: 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.3)

XPNs:Membersof:
1. Thejudiciary;and
2. Constitutional commissions who shall
havelifeinsuranceonly.

b.Exclusionsfromcoverage

Q: Who, under the GSIS, are excluded from the


coverage?

A:
1. Ees who have separate retirement
schemes (members of the Judiciary,
Constitutional Commissions and others
similarlysituated)
2. Contractual Ees who have no ErEe with
theagenciestheyserve
3. Uniformed members of the AFP, BJMP,
whose coverage by the GSIS has ceased
effectiveJune24,1997
4. Uniformed members of the PNP whose
coveragebytheGSIShasceasedeffective
February1,1996.(Sec.2.4,RuleII,IRR)

Q:Forthepurposeofbenefitentitlement,howare
themembersclassified?

A:
1. Activemembers
a. Still in the service and are paying
integratedpremiums.
SOCIAL LEGISLATION

117

UNIVERSITYOFSANTOTOMAS
Fac ul t a d de De r e c h o Ci v i l
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
b. Covered for the entire package
benefits and privileges being
extendedbyGSIS.

2.Policyholders
a. Coveredforlifeinsuranceonly
b. Canavailofpolicyloanprivilegeonly
c. Mayalsoapplyforhousingloans
d. Judiciary and Constitutional
Commissions

3. RetiredMembers
a. Former active members who have
retired from the service and are
already enjoying the corresponding
retirementbenefitsappliedfor
b. Not entitled to any loan privilege,
except stock purchase loan (Sec. 2.2,
RulesII,IRR)

c.Benefits

Q: What are the benefits provided by the GSIS


Act?

A:
1. Separation
2. Unemploymentorinvoluntaryseparation
3. Retirement
4. Permanentdisability
5. Temporarydisability
6. Survivorship
7. Funeral
8. LifeInsurance
9. Such other benefits and protection as
may be extended to them by the GSIS
suchasloans.

Q:WhatarethebenefitsunderP.D.1146(Revised
GSIS Act of 1977) that may be granted to the
separatedmembersofthePNP,BJMPandBFP?

A:GR:
1. Oldagebenefit
2. Permanentdisabilitybenefit
3. Survivorshipbenefit
4. Funeralbenefit
5. Retirementbenefit

XPN:Judiciary(Lifeinsuranceonlytaxexempt)

Q: What are the reportorial requirements of the


Er?

A: Er must report to GSIS the names, employment


status, positions, salaries of the employee and such
othermatterasdeterminedbytheGSIS.

SeparationBenefits

Q: When will a member be entitled to separation


benefits and what comprises these separation
benefits?

A: A member who has rendered a minimum of 3


years creditable service shall be entitled to
separation benefit upon resignation or separation
underthefollowingterms:

1. A member with at least 3 years but less


than 15 years: Cash payment equivalent
to 100% of the AMC for every year of
service the member has paid
contributions:
a. notlessthanP12,000.00
b. Payable upon reaching 60 years of
age or upon separation, whichever
comeslater.

2. A member with less than 15 years of


service and less than 60 years of age at
thetimeofresignationorseparation:
a. Cashpaymentequivalentto18times
the basic monthly pension (BMP),
payableatthetimeofresignationor
separation
b. An oldage pension benefit equal to
the basic monthly pension, payable
monthly for life upon reaching the
ageof60.

Q:Whataretheeffectsofseparationfromservice
withregardtomembership?

A: A member separated from the service shall


continue to be a member and shall be entitled to
whateverbenefitshehasqualifiedto.

Note: A member separated for a valid cause shall


automatically forfeit his benefits, unless the terms of
resignationorseparationprovideotherwise.

Inthecaseofforfeiture,theseparatedemployeeshall
be entitled to receive only of the cash surrender
valueofhisinsurance.

UnemploymentBenefits

Q: What are the conditions for entitlement to


unemploymentbenefits?

A:
1. The recipient must be a permanent
employeeatthetimeofseparation;
2. Hisseparationwasinvoluntaryduetothe
abolitionofhisofficeorpositionresulting
fromreorganization;and

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118
3. He has been paying the contribution for
atleast1yearpriortoseparation.

Q:Whatwillconsistofanunemploymentbenefit?

A: It will consists of cash payment equivalent to


50%oftheaveragemonthlycompensation

Note:Amemberwhohasrenderedatleast15yearsof
service will be entitled to separation benefits instead
ofunemploymentbenefits.

RetirementBenefits

Q:Whataretheconditionsinordertobeentitled
toretirementbenefits?

A:
1. Amemberhasrenderedatleast15years
ofservice;
2. He is at least 60 years of age at the time
ofretirement;and
3. He is not receiving a monthly pension
benefit from permanent total disability.
(Sec.13A)

Q: What is therule in case of extension of service


inordertobeentitledforretirementbenefit?

A:ThedoctrineinCenavs.CSC(G.R.No.97419,July
3, 1992), was modified in Rabor vs. CSC, (G.R. No.
111812,May31,1995),wheretheSCheldthat:The
head of the government agency concerned is
vested with discretionary authority to allow or
disallowextensionoftheserviceofanofficialorEe
who has reached 65 years old without completing
the15yearsofgovernmentservice.However, this
discretion is to be exercise conformably with the
provisions of Civil Service Memorandum Circular
No. 27, series of 1990 which provides that the
extensionshallnotexceed1year.

Q:Whatisthereasonforcompulsoryretirement?

A: The compulsory retirement of government


officials and Ees upon their reaching the age of 65
yearsisfoundedonpublicpolicywhichaimsbyitto
maintain efficiency in the government service and
atthesametimegivetotheretiringpublicservants
the opportunity to enjoy during the remainder of
their lives the recompense, for their long service
and devotion to the government , in the form of a
comparatively easier life, freed from the rigors of
civil service discipline and the exacting demands
that the nature of their work and their relations
with their superiors as well as the public would
impose upon them. (Beronilla v. GSIS, G.R. No.
21723,Nov.26,1970)

Q:Whataretheoptionsoftheretireewithregard
tohisorherretirementbenefits?

A:Theretireemaygeteitherofthefollowing:

1. Lump sum equivalent to 6 months of the


basic monthly pension (BMP) payable at
the time of retirement and an oldage
pensionbenefitequaltoBMPpayablefor
life, starting upon the expiration of the 5
yearscoveredbythelumpsum;or
2. Cash payment equivalent to 18 times his
BMPandmonthlypensionforlifepayable
immediately.(Sec.13[a])

PermanentDisabilityBenefits

Q:Whatisdisability?

A: Any loss or impairment of the normal functions


ofthephysicaland/ormentalfacultyofamember,
which reduces or eliminates his/her capacity to
continuewithhis/hercurrentgainfuloccupationor
engageinanyothergainfuloccupation.

Q:Whatistotaldisability?

A: Complete incapacity to continue with present


employment or engage in any gainful occupation
due to the loss or impairment of the normal
functionsofthephysicaland/ormentalfacultiesof
themember.

Q:Whatispermanenttotaldisability(PTD)?

A: Accrues or arises when recovery from


impairment mentioned in Sec.2(q) (defining
disability)ismedicallyremote.

Q:Whatispermanentpartialdisability(PPD)?

A: Accrues or arises upon the irrevocable loss or


impairment of certain portions of the physical
faculties, despite which the member is able to
pursueagainfuloccupation.

Q:Whataretheconditionsinordertobeentitled
forpermanentdisabilitybenefits?

A: The permanent disability was not due to any of


theff:

1. Gravemisconduct
2. Notoriousnegligence
3. Habitualintoxication
4. Willfulintentiontokillhimselforanother

SOCIAL LEGISLATION

119

UNIVERSITYOFSANTOTOMAS
Fac ul t a d de De r e c h o Ci v i l
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q: What are the two types of permanent
disability?

A:
1. Permanent total disability (PTD) accrues
or arises when recovery from any loss or
impairment of the normal functions of
the physical and/or mental faculty of a
member which reduces or eliminates his
capacity to continue with his current
gainfuloccupationorengageinanyother
gainful occupation is medically remote.
[Section2(q)and(s)]

2. Permanent partial disability (PPD)


accrues or arises upon the irrevocable
lossorimpairmentofcertainportion/sof
the physical faculties, despite which the
member is able to pursue a gainful
occupation.(Sec.2[u])

PTD PPD
Causes
1. Completelossofsight
ofbotheyes
2. Lossof2limbsator
abovetheankleor
wrist
3. Permanentcomplete
paralysisof2limbs
4. Braininjuryresulting
inincurableimbecility
orinsanity
5. Suchothercasesas
maybedetermined
bytheGSIS
Complete and
permanent loss of the
useof:

1.Anyfinger
2.Anytoe
3.Onearm
4.Onehand
5.Onefoot
6.Oneleg
7.Oneorbothears
8.Hearingofoneorboth
ears
9.Sightofoneeye

Such other causes as


determinedbyGSIS
Benefits
1.Amemberisentitledto
the monthly income
benefit for life equivalent
totheBMPwhen:
a. Heisintheservice
at the time of the
disabilityor
b. If separated from
service
c. He has paid at
least 36 monthly
contributions
within 5 years
immediately
preceding his
disability
d. Hehaspaidatotal
of at least 180
monthly
A member is entitled to
cash payment in
accordance with the
scheduleofdisabilitiesto
be prescribed by GSIS, if
he satisfies the given
conditions of either (1)
or(2)ofSec.16(a).
contribution prior
hisdisability
e. He is not receiving
oldageretirement
pensionbenefits

2.Ifthememberdoesnot
satisfy the conditions
abovebuthasrenderedat
least 3 years service, he
shallbeadvancedthecash
payment equivalent to
100% of his average
monthlycompensationfor
each year of service he
has pad contributions but
not less than P12,000.00
which should have been
his separation benefit (he
shall no longer receive
separationbenefits)

Q: When will the payment of these benefits be


suspended?

A:
1. Incaseamemberisreemployed;or
2. Member recovers from disability as
determinedbytheGSIS;or
3. Fails to present himself for medical
examination when required by the GSIS.
(Sec.16[c])

Q: Manioso was suffering from several diseases


from1959to1994whenheworkedasAccounting
ClerkIattheBudgetCommissionuptothetimehe
was transferred and promoted to the DENR as
Senior Bookkeeper. On 95, he was
hospitalized.The results of his examinations
showed that he was suffering from Acute
Myocardial Infarction and Hypertensive Vascular
Disease. From Jan May 95 when he compulsory
retired from government service and after serving
for36yrs,henolongerreportedforwork.Hissick
leave covering said period was duly approved. In
the meantime, Manioso filed a claim for income
benefits with the GSIS which found his ailments
workrelated. He was granted Temporary Total
Disability benefits for 2 months.He was later
grantedPermanentPartialDisabilitybenefitsfor8
months. It appears that he appealed for more
disability benefits with the GSIS which subjected
him to a series of medical tests. In 97, he was
brought to the PGH several times due to Chronic
Renal Infection 2 to Obstructive Uropathy 2 to
Staghorn Calculi (L) and Benign Prostatic
Hypertrophy;DiabetesMellitusNeprophaty,Stage
IV, and Hypertensive Nephrosclerosis. He then
filed a request with the GSIS for additional
disability benefits, claiming that the ailments for

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120
which he was hospitalized several times in 97
developed from his workrelated illnesses. The
GSISdisapprovedManiososrequest.

Do Maniosos ailments which later developed fall


underthecategoryofpermanenttotaldisability?

A: Yes. Under Art. 192 (c) of P.D. No. 442, as


amended (the LC), the following disabilities are
deemed total and permanent:(1) Temporary total
disability lasting continuously for more than 120
days. Under Section 2(b), Rule VII of the Amended
Rules on Ees Compensation, [a] disability is total
and permanent if as a result of the injury or
sickness the Ee is unable to perform any gainful
occupation for a continuous period exceeding 120
days,exceptasotherwiseprovidedunderRuleXof
these Rules. In the case at bar, Manioso was on
sick leave from Jan 11, 95 up to his date of
retirement on May 15, 95 or for a period of more
than 120 days. Surely, the DENR, in approving his
more than 120 days leave must have passed upon
his Medical Certificate relative to his ailments.
Maniosos disability having lasted for more than
120 days, he is entitled to PTD benefits. (Manioso,
v.GSIS,G.R.No.148323,Apr.29,2005)

Q: Does Maniosos retirement from service


preventhimfromentitlementtoPTDbenefits?

A: No. Benefits due an Ee due to workrelated


sickness shall be provided until he becomes
gainfully employed, or until his recovery or death.
None of these are present in Maniosos case. It
would be an affront to justice if Manioso, a
government Ee who had served for 36 years, is
deprived of the benefits due him for workrelated
ailments that resulted in his Permanent Total
Disability. (Manioso v. GSIS, G.R. No. 148323, Apr.
29,2005)

TemporaryDisabilityBenefits

Q:Whendoestemporarytotaldisabilityarises?

A: It accrues or arises when the impaired physical


and/ormentalfacultiescanberehabilitatedand/or
restoredtotheirnormalfunctions.(Sec2[t])

Q: What benefits are given for temporary


disability?

A:
1. Member is entitled to 75% of his current
daily compensation for each day or
fractionthereofoftotaldisabilitybenefit,
to start at the 4
th
day but not exceeding
120daysinonecalendaryearwhen:
a. Hehasexhaustedallsickleaves
b. CBAsickleavebenefits
Provided,that:
i. He was in the service at time of
disability;or
ii. If separated, he has rendered at
least 3 years of service and has
paid at least 6 monthly
contributions in the year
precedinghisdisability
2. The temporary total disability benefits
shallinnocasebelessthanP70aday.

Note: A member cannot enjoy the temporary total


disabilitybenefitandsickleavepaysimultaneously.

AnapplicationfordisabilitymustbefiledwiththeGSIS
within 4 years from the date of the occurrence of the
contingency.

SurvivorshipBenefits

Q:Whoareentitledtosurvivorshipbenefits?

A: Upon the death of a member or pensioner, his


beneficiaries shall be entitled to survivorship
benefits.Suchbenefitshallconsistof:

1. The basic survivorship pension which is


50%ofthebasicmonthlypension;and
2. The dependent childrens pension not
exceeding 50% of the basic monthly
pension

Q: Under what conditions are the primary


beneficiaries entitled to the basic monthly
pension?

A: Upon the death of a member, the primary


beneficiariesshallbeentitledto:

1. Survivorship pension: Provided, That the


deceased:
a. was in the service at the time of his
death;or
b. if separated from the service, has
rendered at least 3 years of service
atthetimeofhisdeathandhaspaid
36 monthly contributions within the
fiveyear period immediately
preceding his death; or has paid a
total of at least 180 monthly
contributionspriortohisdeath;or

2. The survivorship pension plus a cash


payment equivalent to 100% of his
average monthly compensation for every
year of service: Provided, That the
deceasedwasintheserviceatthetimeof
SOCIAL LEGISLATION

121

UNIVERSITYOFSANTOTOMAS
Fac ul t a d de De r e c h o Ci v i l
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
his death with at least 3 years of service;
OR

3.Acashpaymentequivalentto100%ofhis
average monthly compensation for each
year of service he paid contributions, but
not less than P12,000.00: Provided, That
the deceased has rendered at least 3
years of service prior to his death but
does not qualify for the benefits under
item (1) or (2) of this paragraph. [Sec. 21
(a)]

Q:Aftertheendoftheguaranteed30months,are
the beneficiaries still entitled to any survivorship
benefits?

A: Yes. The survivorship pension shall be paid as


follows:

1. When the dependent spouse is the only


survivor, he/she shall receive the basic
survivorshippensionforlifeoruntilheor
sheremarries;

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 10% of
the basic monthly pension for every
dependentchildnotexceeding5,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
childrenspension.(Sec.21[b])

Note: The dependent children shall be entitled to the


survivorship pension as long as there are dependent
children and, thereafter, the surviving spouse shall
receive the basic survivorship pension for life or until
heorsheremarries.

Q: When are secondary beneficiaries entitled to


survivorshipbenefits?

A: In the absence of primary beneficiaries, the


secondarybeneficiariesshallbeentitledto:

1. The cash payment equivalent to 100% of


his average monthly compensation for
each year of service he paid
contributions, but not less than
P12,000.00:Provided,Thatthememberis
intheserviceatthetimeofhisdeathand
hasatleast3yearsofservice;or
2. Intheabsenceofsecondarybeneficiaries,
the benefits under this par. shall be paid
tohislegalheirs.(Sec.21[c])

Q:Whatarethebenefitsthatthebeneficiariesare
entitledtouponthedeathofthepensioner?

A:
1. Upon the death of an oldage pensioner
or a member receiving the monthly
income benefit for permanent disability,
the qualified beneficiaries shall be
entitled to the survivorship pension
defined in Sec. 20 of this Act, subject to
theprovisionsofpar.(b)ofSec.21.
2. When the pensioner dies within the
period covered by the lump sum, the
survivorship pension shall be paid only
aftertheexpirationofthesaidperiod.

Q: Gary Leseng was employed as a public school


teacherattheMarinduqueHigh.OnApril27,1997,
a memorandum was issued by the school principal
designating Gary to prepare the model dam
project, which will be the official entry of the
school in the search for Outstanding Improvised
Secondary Science Equipment for Teachers. Gary
compliedwithhissuperior'sinstructionandtook
home the project to enable himto finish before
the deadline. While working on the model dam
project, he came to contact with a live wire and
was electrocuted. The death certificate showed
that he died of cardiac arrest due to accidental
electrocution.

Bella (Garys commonlaw wife) and Jobo (his


onlyson)filedaclaimfordeathbenefitswiththe
GSISwhichwasdeniedonthe groundthatGarys
death did not arise out of and in the course of
employment and therefore not compensable
because the accident occurred in his house and
not in the school premises. Is Bella entitled to
file a claim for death benefits with the GSIS?
Why?

A: The beneficiaries of a member of the GSIS are


entitled to the benefits arising from the death
of said member. Death benefits are called
survivorship benefits under the GSIS Law. Not
being a beneficiary, Bella is not entitled to receive
survivorship benefits. She is not a beneficiary
because she is a commonlaw wife and not a legal
dependentspouse.(1991BarQuestion)

Q: Is the cause of death of Gary (cardiac arrest



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122
due to accidental electrocution in his house)
compensable?Why?

A:Yes.TobecompensableundertheGSISLaw,the
deathneednotbeworkconnected.

Q: Abraham, a policeman, was on leave for a


month.Whilerestingintheirhouse,heheardtwo
of his neighbors fighting with each other.
Abraham rushed to the scene intending to
pacify the protagonists.However,hewasshotto
death by one of the protagonists. Eva Joy, a
housemaid, was Abraham's surviving spouse
whom he had abandoned for another woman
years back. When she learned of Abraham's
death, Eva Joy filed a claim with the GSIS for
death benefits. However, her claim was denied
because:(a)whenAbrahamwaskilled,hewason
leave; and (b) she was not the dependent
spouse of Abraham when he died. Resolve with
reasons whether GSIS is correct in denying the
claim.

A: Yes, because under the law, a dependent is one


whoisalegitimatespouselivingwiththeEe.
(Art. 167 [i], LC) In the problem given, Eva Joy had
been abandoned byAbrahamwhowasthenliving
already with another woman at the time of his
death.

Moreover, Abraham was on leave when he was


killed. The 24hour duty rule does not apply when
the policeman is on vacation leave. (ECC v. CA, G.R.
No. 121545, Nov. 14, 1996) Taking together
jurisprudence and the pertinent guidelines of the
ECC with respect to claims for death benefits,
namely:

1. That the Ee must be at the place where


hisworkrequireshimtobe;
2. That the Ee must have been performing
hisofficialfunctions;and
3. That if the injury is sustained elsewhere,
theEemusthavebeenexecutinganorder
for the Er, it is not difficult to understand
then why Eva Joy's claim was denied by
the GSIS. (Tancinco v. GSIS, G.R. No.
132916,Nov.16,2001)

In the present case, Abraham was resting at his


house when the incident happened; thus, he was
not at the place where his work required him to
be.AlthoughatthetimeofhisdeathAbrahamwas
performing a police function, it cannot be said
that his death occurred elsewhere other than the
place where he was supposed to be because he
was executing an order for his Er. (2005 Bar
Question)

FuneralBenefits

Q:Whatcomprisesthefuneralbenefit?

A:CashnotlessthanP12,000tobeincreasedtoat
least P18,000 after 5 years (specifically year 2002).
The amount shall be determined and specified by
theGSISthroughaninformationcirculardistributed
to all Ers for posting at their premises. (Sec. 23,
par.1)

Q:Whenwillitbepaid?

A:Uponthedeathof:

1. Anactivemember
2. A member who has been separated from
the service but is entitled to future
separationorretirementbenefits
3. A member who is a pensioner (excluding
survivorshippensioners)
4. A retiree who is at the time of his
retirement was of pensionable age, at
least 60 years old, who opted to retire
under RA 1616 (An act further amending
Sec.12, C.A. 186, as amended, by
prescribingtwoothermodesofretirement
andforotherpurposes).

LifeInsurance

Q:Whataretheclassesoflifeinsurancecoverage?

A:
1. Compulsorylifeinsurance
2. Optionallifeinsurance

Note:Theplansmaybeendowmentorordinarylife.

Q: When does compulsory life insurance coverage


takeeffect?

A: All Ees including the members of the Judiciary


and the Constitutional Commissioners except for
MembersoftheAFP,thePNP,BFPandBJMP,shall,
under such terms and conditions as may be
promulgated by the GSIS, be compulsorily covered
with life insurance, which shall automatically take
effectasfollows:

1. Those employed after the effectivity of


this Act, their insurance shall take effect
onthedateoftheiremployment;
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
dateoftheirinsurance;
SOCIAL LEGISLATION

123

UNIVERSITYOFSANTOTOMAS
Fac ul t a d de De r e c h o Ci v i l
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
3. For those without any life insurance as of
the effectivity of this Act, their insurance
shalltakeeffectfollowingsaideffectivity.

Q: When may a member obtain optional life


insurancecoverage?

A:
1. A member may at any time apply for
himself and/or his dependents an
insurance and/or preneed coverage
embracing:
a. Life
b. Memorialplans
c. Health
d. Education
e. Hospitalization
f. Other plans as maybe designed by
GSIS

2. Any employer may apply for group


insurancecoverageforitsemployees.

Q:WherecanGSISloansbeinvestedin?

A:
1. In direct housing loans to members and
group housing projects secured by first
mortgage giving priority to the low
incomegroups
2. In short and medium term loans to
members such as salary, policy,
educational, emergency stock purchase
plan,andothersimilarloans

Q: What is the prescriptive period to claim the


benefits?

A:
GR:4Yearsfromthedateofcontingency

XPN:Lifeinsuranceandretirement(Sec.28)

Q: What is the process for the adjudication of


claimsanddisputesregardingtheGSISbenefits?

A: The quasijudicial functions of the GSIS shall be


vestedinitsBoardofTrustees.

1. The GSIS, in appropriate cases, or any


person whose rights are or may be
prejudiced by the operations or
enforcement of R.A. 8291 and other laws
administered by the GSIS, may file a
petition before the GSIS either personally
orthroughcounsel.
2. Within 15days from receipt of the notice
of decision or award, the aggrieved party
mayappealthedecisionoftheGSISBoard
of Trustees to the CA. Appeal shall be
taken by filling a verified petition for
review with the CA. (Sec 1 to 5, Rule 43,
RulesofCourt)
3. When no appeal is perfectedand there is
no order to stay by the Board, by the CA
orbytheSC,anydecisionorawardofthe
Board shall be enforced and executed in
thesamemannerasdecisionsoftheRTC.
Note: Thesocialsecuritybenefitsshallbe
exempt from attachment, garnishment,
execution, levy or other processes issued
by the courts, quasijudicial bodies or
administrative agencies including the
Commission on Audit, disallowances, and
from all financial obligations of the
members.

Q: May a member enjoy the benefitsprovided for


in the Revised GSIS Act simultaneous with similar
benefits provided under other laws for the same
contingency?

A:Wheneverotherlawsprovidesimilarbenefitsfor
the same contingencies covered by this Act, the
memberwhoqualifiestothebenefitsshallhavethe
optiontochoosewhichbenefitswillbepaidtohim.
However,ifthebenefitsprovidedbythelawchosen
are less than the benefits provided under this Act,
theGSISshallpayonlythedifference.(Sec.55)

d.Beneficiaries

Q:Whoaretheconsideredbeneficiaries?

A:
1. Primarybeneficiaries
a. The legal dependent spouse until
he/sheremarriesand
b. Thedependentchildren.(Sec.2[g])

2. Secondarybeneficiaries
a. Thedependentparentsand
b. Subject to the restrictions on
dependent children, the legitimate
descendants.(Sec.2[h])

Q:Whoareconsidereddependents?

A:
1. Legitimate spouse dependent for support
uponthememberorpensioner;
2. Legitimate, legitimated, legally adopted
child,includingtheillegitimatechild,
a. whoisunmarried,

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124
b. notgainfullyemployed,
c. not over the age of majority, or if
over the age of majority,
incapacitated and incapable of self
support due to a mental or physical
defect acquired prior to age of
majority;and
3. Parents dependent upon the member for
support.(Sec.2[f])

3.LIMITEDPORTABILITYLAW
(RA7699)

Q:WhatistheLimitedPortabilityRule?

A: A covered worker who transfers employment


fromonesectortoanotherorisemployedonboth
sectors, shall have creditable services or
contributions on both Systems credited to his
service or contribution record in each of the
Systems and shall be totalized for purposes of old
age, disability, survivorship, and other benefits in
eitherorbothSystems.(Sec.3)

All contributions paid by such member personally,


and those that were paid by his employers to both
Systems shall be considered in the processing of
benefits which he can claim from either or both
Systems.(Sec.4)

Q:How are the "portability" provisions of R.A.No.


7699 beneficial or advantageous to SSS and GSIS
members in terms of their creditable employment
servicesintheprivatesectororthegovernment,as
the case may be, for purposes of death, disability
orretirement?

A: Portability provisions of R.A. No. 7699 shall


benefit a covered worker whose creditable
services or contributions in both systems credited
tohisserviceorcontributionrecordineachofthe
system and shall be totalized for purposes of old
age, disability, survivorship and other benefits.
(Sec. 3)

The "portability" provisions of R.A. 7699 allow the


transferoffundsfortheaccountandbenefitofthe
workerwhotransfersfromonesystemtoanother.

This is advantageous to the SSS and GSIS members


for purposes of death, disability or retirement
benefits. In the event the employees transfer from
theprivatesectortothepublicsector,orviceversa,
their creditable employment services and
contributions are carried over and transferred as
well.(2005BarQuestion)

4.EMPLOYEESSCOMPENSATION

Q: Discuss briefly the Employees Compensation


Program(ECP).

A: It is the program provided for in Article 166 to


208 of the Labor Code whereby a fund known as
the State Insurance Fund (SIF) is established
through premium payments exacted from Ers and
from which the Ees and their dependents in the
event of workconnected disability or death, may
promptly secure adequate income benefit, and
medicalorrelatedbenefits.

Coverage

Q:WhoaresubjecttocoverageundertheECP?

A: ErsandtheirEesnotoversixty(60)yearsofage
are subject to compulsory coverage under this
program.

TheErmaybelongtoeitherthe:

1. Public sector covered by the GSIS, comprising


the National Government, including GOCCs,
Philippine Tuberculoses Society, the Philippine
NationalRedCros,andthePhilippineVeterans
Bank;and
2. Private sector covered by the SSS, comprising
all Ers other than those defined in the
immediatelyprecedingparagraph.

TheEemaybelongtoeitherthe:

1. Public sector comprising the employed


workers who are covered by the GSIS,
including the members of the AFP, elective
officials who are receiving regular salary and
any person employed as casual emergency,
temporary,substituteorcontractual;
2. Private sector comprising the employed
workerswhoarecoveredbytheSSS.

Q:Whendoescompulsorycoveragetakeeffect?

A:
1. Employeronthefirstdayofoperation

2. Employeeonthedayofhisemployment

Q:WhatisanOccupationalDisease?

A: One which results from the nature of the


employment, and by nature is meant conditions
which all Ees of a class are subject and which
produce the disease as a natural incident of a
particular occupation, and attach to that
SOCIAL LEGISLATION

125

UNIVERSITYOFSANTOTOMAS
Fac ul t a d de De r e c h o Ci v i l
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
occupationahazardwhichdistinguishesitfromthe
usual run of occupations and is in excess of the
hazardattendingtheemploymentingeneral

To be occupational, the disease must be one


wholly due to causes and conditions which are
normalandconstantlypresentandcharacteristicof
theparticularoccupation.

Q:WhatisSickness?

A: It means any illness definitely accepted as an


occupational disease listed by the Commission or
anyillnesscausedbyemployment,subjecttoproof
thattheriskofcontractingthesameisincreasedby
workingconditions(Art.167(l),LC).

Q:DiscussbrieflythetheoryofIncreasedRisk.

A:ThetermsicknessasdefinedinArticle167(l)of
the Labor Code is a recognition of the theory of
increased risk. To establish compensability under
thesame,theclaimantmustshowsubstantialproof
of workconnection, but what is required is merely
a reasonable workconnection and not a direct
causalrelation.Proofofactualcauseoftheailment
isnotnecessary.Thetestofevidenceofrelationof
thediseasewiththeemploymentisprobabilityand
notcertainty.(Jimenezv.EmployeesCompensation
Commission, G.R. No. L58176, March 23, 1984;
Panotesvs.ECC,G.R.No.L64802,March29,1984)

Q: May an illness not listed by the Employees


Compensation Commission as an occupational
diseasebecompensable?

A: Where the illness is not listed by the Employees


Compensation Commission as an occupational
disease, it must be established that the risk of
contracting the same is increased by working
conditions.

Q: What defenses may be interposed by the State


Insurance Fund (SIF) against a claim for
compensation made by a covered Ee or his
dependents?

A:Thefollowingdefensesmaybesetup:

1. Injury is not workconnected or the


sicknessisnotoccupational
2. Disability or death was occasioned by the
Eesintoxication,wilfulintentiontoinjure
orkillhimselforanother,orhisnotorious
negligence(Art.172,LC)
3. Nonoticeofsickness,injuryordeathwas
giventotheEr(Art.206,LC)
4. Claim was filed beyond three (3) years
fromthetimethecauseofactionaccrued
(Art.201,LC,asamendedbyP.D.1921)

Note: Notorious negligence is equivalent to gross


negligence; it is something more than mere
carelessnessorlackofforesight.

Q: Abraham Dino works as a delivery man in a


construction supply establishment owned by
Abraham Julius. One day, while Dino was making
reportsonhisdelivery,hehadanaltercationwith
Julius; irked by the disrespectful attitude of Dino,
JuliuspulledouthisgunandshotDino,hittinghim
in the spinal column and paralyzing him
completely.Juliuswasprosecutedfortheact.

1. Is the disability suffered by Abraham Dino


compensable?
2. IfAbrahamDinorecoverscompensationfrom
the SIF, can he still recover from Abraham
Juliusdamagesinthecriminalcase?Why?

A:
1. Yes.TheinjurywassustainedbyAbrahamDino
in his place of work and while in the
performanceofhisofficialfunctions.

2. No. Under Article 173 of the Labor Code, as


amendedbyP.D.1921,theliabilityoftheState
Insurance Fund under the Employees
Compensation Program shall be exclusive and
in place of all other liabilities of the Er to the
Ee or his dependents or anyone otherwise
entitled to recover damages on behalf of the
Eeorhisdependents.

Q: Socrates Benjie, a truck driver employed by a


local construction company, was injured in an
accident while on assignment in one of his
employers project in Iraq. Considering that his
injury was sustained in a foreign country, is
SocratesBenjieentitledtobenefitsundertheECP?

A:Yes.Filipinosworkingabroadintheserviceofan
Er, domestic or foreign, who carries on in the
Philippines any trade, business, industry,
undertaking or activity of any kind, are covered by
theECP.(Rule1,Section5,ECCRules;Art.169,LC)

Q: What is the Going and Coming Rule? Is this


ruleabsolute?

A: GR: In the absence of special circumstances, an


Ee injured while going to or coming from his place
ofworkisexcludedfromthebenefitsofWorkmens
CompensationAct.

XPNS:

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126
1. WheretheEeisproceedingtoorfromhis
workonthepremisesoftheEr;
2. Proximity Rulewhere the Ee is about to
enter or about to leave the premises of
his Er by way of exclusive or customary
meansofingressandegress;
3. Eeischarged,whileonhiswaytoorfrom
his place of employment or at his home,
or during this employment with some
dutyorspecialerrandconnectedwithhis
employment;and
4. Where the Er as an incident of the
employment provides the means of
transportation to and from the place of
employment.

Q:WhoareentitledtobenefitsundertheECP?

A: The covered Ee, his dependents, and in case of


hisdeath,hisbeneficiaries.

Q:WhoarethedependentsoftheEe?

A:
1. Legitimate, legitimated, legally adopted
or acknowledged natural child who is
unmarried, not gainfully employed, and
not over twentyone (21) years of age or
over twentyone (21) years of age
provided he is incapacitated and
incapableofselfsupportduetoaphysical
or mental defect which is congenital or
acquiredduringminority;
2. LegitimatespouselivingwiththeEe;and
3. ParentsofsaidEewhollydependentupon
himforregularsupport.(Art.167(i),LC,as
amendedbyP.D.1921)

Q:Whoareincludedinthetermbeneficiaries?

A: "Beneficiaries" means the dependent spouse


untilheremarriesanddependentchildren,whoare
the primary beneficiaries. In their absence, the
dependent parents and subject to the restrictions
imposed on dependent children, the illegitimate
children and legitimate descendants who are the
secondary beneficiaries;Provided, that the
dependent acknowledged natural child shall be
consideredasaprimarybeneficiarywhenthereare
nootherdependentchildrenwhoarequalifiedand
eligibleformonthlyincomebenefit.(Art.167,LC,as
amendedbySec.I,P.D.1921)

Q: What are the benefits which may be enjoyed


undertheSIF?

A:
1. MedicalBenefits
2. DisabilityBenefits
3. DeathBenefits
4. FuneralBenefits

MedicalBenefit

Q: What are the conditions of entitlement to


MedicalServices?

A: For an Ee to be entitled to medical services, the


followingconditionsmustbesatisfied:
1. He has been duly reported to the System
(SSSorGSIS);
2. He sustains a permanent disability as a
resultofaninjuryorsickness;and
3. TheSystemhasbeennotifiedoftheinjury
orsicknesswhichcausedhisdisability.

DisabilityBenefit

Q:Whataredisabilitybenefits?

A: They are income benefits in case of temporary


total disability, permanent total disability and
permanentpartialdisability

Q: What are the disabilities that are considered


totalandpermanent?

A: The following disabilities shall be deemed total


andpermanent:
1. Temporary total disability lasting
continuously for more than one hundred
twenty days, except as otherwise
providedforintheRules;
3. Completelossofsightofbotheyes;
4. Lossoftwolimbsatorabovetheankleor
wrist;
5. Permanent complete paralysis of two
limbs;
6. Brain injury resulting in incurable
imbecilityorinsanity;and
7. Such cases as determined by the Medical
Director of the System and approved by
theCommission.(Art.192(c),LC)

Q: May a permanent partial disability be


converted to permanent total disability after the
Eesretirement?Why?

A:Yes.Thisisinlinewiththesocialjusticeprovision
in the Constitution. A persons disability may not
manifest itself fully at one precise moment in time
but rather over a period of time. And disability
should not be understood more on its medical
significancebutonthelossofearningcapacity.

SOCIAL LEGISLATION


127

UNIVERSITYOFSANTOTOMAS
Fac ul t a d de De r e c h o Ci v i l
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
Q: May permanent total disability arise although
the Ees does not lose the use of any part of his
body?

A: Yes. Where the Ee is unable, by reason of the


injury or sickness, to perform his customary job for
more than 120 days, permanent total disability
arises. (Ijares vs. CA, G.R. No. 105854, August 26,
1999)

DeathBenefit

Q: What are the conditions for entitlement to


deathbenefits?

A: The beneficiaries of a deceased Ee shall be


entitled to an income benefit if all of the following
conditionsaresatisfied:

1. The Ee has been duly reported to the


System;
2. He died as a result of an injury or
sickness;and
3. The System has been duly notified of his
death, as well as the injury or sickness
whichcausedhisdeath.

Q: For how long are the primary beneficiaries


entitledtothedeathbenefits?

A:
1. Dependent Spouseuntil he or she
remarries.
2. Dependent Childrenuntil they get
married, or find gainful employment, or
reachtwentyone(21)yearsofage.
3. Dependent Child suffering from physical
or mental defectuntil such defect
disappears.

Q: If an Ee suffers disability or dies before he is


duly reported for coverage to the System (SSS or
GSIS),whowillbeliableforthebenefits?

A: The Er (Sec.1, Rule X; Sec.1, Rule XI; Sec. 1, Rule


XII;Sec.1,RuleXIII;ECCRules)

FuneralBenefit

Q:Whatisthefuneralbenefit?

A: A funeral benefit of P10, 000.00 shall be paid


upon the death of a covered Ee or permanently
totallydisabledpensioner.

Q: When is an Er liable to pay a penalty to the


StateInsuranceFund(SIF)?

A: In case the employee's injury or death was due


to the failure of the employer to comply with any
law, or to install and maintain safety devices, or
takeotherprecautionsforthepreventionofinjury,
saidemployershallpaytotheStateInsuranceFund
a penalty of twentyfive percent of the lump sum
equivalent of the income benefit payable by the
System to the employee. All employers, especially
those who should have been paying a rate of
contribution higher than required of them under
thisTitle,areenjoinedtoundertakeandstrengthen
measures for the occupational health and safety of
theiremployee.(Art.200,LC)

Q:Whoarerequiredtomakecontributionstothe
SIF?

A: Contributions under this Title shall be paid in


their entirety by the employer and any contract or
device for the deduction of any portion thereof
from the wages or salaries of the employees shall
benullandvoid.(Art.183(c),LC)

The Republic of the Philippines guarantees the


benefits prescribed under this Title, and accepts
general responsibility for the solvency of the State
InsuranceFund.Incaseofanydeficiency,thesame
shall be covered by supplemental appropriation
fromthenationalgovernment.(Art.184,LC)

Q: When does the right to compensation or


benefit for loss or impairment of an Ees earning
capacity due to workrelated illness or injury
arise?

A: It arises or accrues upon, and not before, the


happening of the contingency. Hence, an Ee
acquires no vested right to a program of
compensation benefits simply because it was
operative at the time he became employed. (San
Miguel Corporation vs. NLRC, G.R. No. 57473,
August15,1988)

Q: Does recovery from the SIF bar a claim for


benefitsundertheSSSLaw?Why?

A:No,asexpresslyprovidedforinArticle173ofthe
Labor Code, payment of compensation under the
SIF shall not bar the recovery of benefits underthe
SSS Law, Republic Act No. 1161, as amended.
Benefits under the SIF accrueto the Ees concerned
duetohazardsinvolvedandaremadeaburdenon
the employment itself. On the other hand, social
security benefits are paid to SSS members by
reason of their membership therein for which they
contribute their money to a general fund. (Maao
Sugar Central Co., Inc. vs. CA, G.R. No. 83491,
August27,1990)