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NOTES ON SOCIAL LEGISLATION

Kenneth and King C. Hizon _________________________________________________________________________________________________________________

UNIVERSITY OF SANTO TOMAS


Faculty of Civil Law
A.Y. 2012-2013
Second Semester

SOCIAL LEGISLATION

Q: Who are compulsorily covered by the law?


SOCIAL SECURITY SYSTEM
R.A. No. 8282 A:

1. EEs not over 60 years of age and their ERs;


2. Domestic helpers earning not less than P1000.00 per
Constitutionality of the law
month;
3. Self-employed individuals
Q: What is the purpose of the law (Policy of the State under Social
Security Law)?
Q: Who can be subject of voluntary coverage?
A: It is enacted pursuant to the policy to establish, develop and
A:
perfect a social Security system suitable to the needs of the people
throughout the Philippines. It is also intended for the promotion of
a. Spouse who devote full time to managing their household
social justice
and family affairs;
XPN: If engage in other vocation or employment
NOTE: The law provides protection against hazards of:
b. Filipinos recruited in the Philippines by foreign-based ERs
1. Disability
2. Sickness
Q: Who will reap the benefits of the SSS law?
3. Old age
4. Death
A:
Q: What is the basis of the SSS Law?
EMPLOYEE EMPLOYER
A: It is a legitimate exercise of police power. The working man while in his The employers mandatory
productive years is compelled to contribution will reap the
Q: Is the principle of non-impairment of obligation of contract a part with a portion of his benefit of not being liable in the
proper defense? earnings which are held in trust future to give benefits to the
by the System to answer for employee upon happening of
A: No. SSS is not the result of bilateral, consensual agreement where payment of benefits. event that would preclude loss
the rights and obligations of the parties are defined by and subject of income or financial burden.
to their will. His expenses are to be divided
into minimal contributions at
NOTE: Law requires compulsory coverage present to meet the need of the
employee in the future.
Q: The law imposes upon the ees and the ers the obligation to
become members of and make contributions to the Social Security Premiums not considered taxes
System. Is such legal imposition valid and constitutional?
Q: Are the premiums considered as taxes?
A: Yes. It affords protection to labor and is in full accord with the
constitutional mandate on the promotion of social justice. A: No. SSS is exercised more on the promotion of general welfare
Membership in the system is in the lawful exercise of the police and not to raise revenue. The funds contributed to SSS belong to the
power of the state, to which the principle of non-impairment of members who will receive the benefits, as a matter of right,
obligations of contract is not a proper defense. whenever the hazards provided by the law occur.

History of the law Benefits not considered part of estate of the member

Pls. refer to pp. 2-4 of the book. Q: Can the benefits form part of the estate of the member?

RA.No.8282 provides for better packages, expansion of coverage, A: No. The benefits receivable are in the nature of special privilege
flexibility in investments, stiffer penalties for violations of the law as or an arrangement to provide Security to the workingman. They are
well as condonation of penalties of delinquent members. not considered as property earned by the member during his
lifetime. Besides, persons other than the heirs of the deceased EE
may be entitled to said benefits.
Facultad de Derecho Civil 1
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________

NOTE: Benefits are not transferable and exempt from tax, legal SOCIAL SECURITY COMMISSION
processes and liens. Composition

Limited portability tule NOTE: The SSS shall be directed and controlled by Social Security
Commission.
NOTE: A covered worker who transfers employment from one
Sector to another or is employed on both Sectors shall have his Q: What is the composition of the SSS Commission?
creditable services or contributions on both Systems credited to his
service or contribution record in each of the Systems and shall be A:
totalized for purposes of:
1. SOLE or his duly designated undersecretary;
1. Old age; 2. SSS president;
2. Disability; 3. 7 appointive members:
3. Survivorship; a. 3-represent the workers group, at least 1 of
4. and other benefits in case the covered EE does not qualify whom shall be a woman;
for such benefits either or both systems without b. 3-employersgroup, at least 1 of whom shall be a
totalization; woman;
c. 1-general public whose representative shall have
NOTE: Overlapping periods of membership shall be credited only adequate knowledge and experience regarding
once for purposes of utilization (Sec. 3, RA. 7699). social Security, to be appointed by the President
of the Philippines.
All contributions paid by such member personally, and those that
were paid by his employers to both Systems shall be considered in NOTE: The 6 members representing the workers and ERs shall be
the processing of benefits which he can claim from either or both chosen from among the nominees of workers and ERs
Systems: Provided, however, That the amount of benefits to be paid organizations, respectively;
by one System shall be in proportion to the number of contributions
actually remitted to that System (Sec. 4). Q: Who shall choose the chairman?

Declaration of policy A: The Chairman shall be designated by the President of the


Philippines from among its members.
Promote social justice and provide protection to members and their
beneficiaries against the: Q: What is the term of the appointive officials?

i. Hazards of disability; A: The Term of appointive members shall be 3 years.


ii. Sickness;
iii. Maternity; Q: Discuss the rules as to the compensation of the Commission
iv. Old age; members?
v. Death; and
vi. Other contingencies resulting in loss of income or financial A:
burden.
a. Appointive members shall receive at least P2,500.00 per
Q: What is the latest amendatory law of the SSS law? diem for each meeting actually attended by them, but not
to exceed P10,000.00 a month;
A: It is R.A. 8282 (SSS Law of 1997), effective May 24, 1997. It b. Members of the commission who shall hear cases before
provides for better benefit packages, expansion of coverage, the Commission shall also receive a per diem of at least
flexibility in investments, stiffer penalties for violations of the law, P2,500.00, but not to exceed P15,000.00 a month;
condonation of penalties of delinquent employees, and the c. Members shall also receive reasonable transportation and
establishment of voluntary provident fund for members. representation allowances as may be fixed by the
Commission but it shall not exceed P10,000.00.
Q: Who are subject to compulsory coverage under the Social
Security Law? SSS President

A: Q: What is the duty of the SSS President?

1. Employees not over 60 years of age A:


2. Their employers
3. Domestic helpers earning not less than P1,000 a month a. To whom the general conduct of the operations and
4. Self-employed individuals management functions of SSS is vested;
b. CEO responsible for the carrying out the program of SSS
and the policies of the Commission

Q: What is his Qualification?

Facultad de Derecho Civil 2


UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
A: Previous experience in technical and administrative fields. e. Adopt a budget of expenditures including salaries of
personnel;
NOTE: He shall be appointed by the President of the Philippines. His f. To set up its accounting system and provide the necessary
salary is to be fixed by the Commission. personnel therefor;
g. To require reports, compilations and analyses of statistical
Actuary and other personnel and economic data;
h. Acquire and dispose property necessary or expedient for
a. Fix their reasonable compensation, allowances and other the attainment of this Acts purposes;
benefits; i. Acquire, receive or hold public or private property for the
b. Prescribe their duties and establish such methods and purpose of undertaking housing projects, for maintenance
procedure as may be necessary to insure the efficient, of hospitals, etc;
honest and economical administration of the provisions j. To sue and be sued in court.
and purposes of this Act;
c. Personnel appointed shall be subject to the confirmation Q: May a provident fund be established under the SSS law?
by the Commission;
d. Personnel shall be selected only from civil service eligible A: Yes. Commission is empowered by law to establish a provident
and be subject to civil service rules and regulations. fund for the members which will consist of the contributions subject
to the IRR promulgated and approval of the President. It also has the
Powers and duties of the Commission (SSC) and SSS (Sec. 4) power to maintain a provident fund which consists of contributions
made by both the SSS and its officials and employees and their
Q: What are the powers of the SSSC? earnings, for the payment of benefits to such officials and
employees or their heirs under terms and conditions prescribed.
A:
Q: May the existence of a welfare funded solely by the employer a
a. Adopt, amend and rescind rules and regulations; ground for the exemption from SSS coverage?
b. Establish a provident fund;
i. Consisting of contributions of ERs and/or EEs, A: No, coverage is compulsory upon all employees not over 60 years
self-employed and voluntary members and their of age and their employees. The welfare plan may however be
earnings; integrated with the SSS in such a way where the employers
ii. Contributions made by both SSS and its officials contribution to his private plan is more than that required of him
and EEs and their earnings and he shall continue his contribution to such private plan less his
c. Approve restructuring proposals for the payment of due total contribution to benefit plan and to SSS shall be the same as his
but unremitted contributions and unpaid loan contribution to the private benefit plan before the compulsory
amortizations; coverage.
d. Authorize cooperatives as collecting agents of SSS with
respect to their members; Settlement of disputes
e. To compromise or release penalty or any civil liability to
SSS; Q: What are the disputes covered by the jurisdiction of SSC?
f. Approve, confirm, pass upon or review any and all actions
of SSS. A: Disputes with respect to:
g. SSC shall exercise quasi-judicial functionsto settle 1. Coverage
conflicting claims to expedite and to settle the same within 2. Benefits
the shortest time possible; 3. Contributions
I. Authority to settle any dispute arising under the Act 4. Penalties
including entitlement to benefits.
II. As long as no action has been filed in the regular courts, Q: When should the case be decided?
the Commission may pass upon the question of who
between 2 or more women claiming the benefits is A: To be decided within the mandatory period of 20 days after the
entitled thereto. submission of the evidence

Q: What are the powers and duties of the SSS? Appeal to Courts

A: Q: When should the decision of the SSSC become final and


executory?
a. Submit annual report to the President of the Philippines
and to Congress covering activities in the administration A: The decision of the Commission shall become final and executory
and enforcement of this Act; 15 days after the date of notification.
b. Require the actuary to submit a valuation report on the
SSS benefit program every 4 years; Q: When is judicial review allowed?
c. To establish offices of SSS to cover as many provinces,
cities and congressional districts; A: Judicial review shall be permitted only after any party claiming to
d. To enter into agreements or contracts for such service and be aggrieved thereby.
aid;
Court review
Facultad de Derecho Civil 3
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
d. Provided, That a self-employed person shall be both
Q: What is the basis of the appeal? employee and employer at the same time.

A: The decision of the Commission may be reviewed both upon law Q: Who is an EE?
and facts by the Court of Appeals.
A:
NOTE: Appeals from a decision of the Commission shall be taken
within 15 days from notification of such decision. a. Any person who performs services for an employer
b. in which either or both mental or physical efforts are used
If the decision of the Commission involves question of law, the same and who receives compensation for such services, where
shall be reviewed by the SC. there is an employer-employee relationship;
c. Provided, that a self-employed person shall be both
No appeal shall act as supersdeas or a stay of the order of the employee and employer at the same time.
Commission unless the Commission itself, or the CA or the SC, shall
so order. Q: Who are considered as dependents?

Execution of decisions A:

Q: May the SSSC issue writs of execution? a. The legal spouse entitled by law to receive support from
the member;
A: Commission may, motu propio or on motion of any interested b. The legitimate, legitimated or legally adopted, and
party, issue a writ of execution to enforce any of its decisions or illegitimate child who is unmarried, not gainfully
awards; directing the party or provincial sheriff or the sheriff whom employed, and has not reached twenty-one (21) years of
it may appoint to enforce such final decision or execute such writ. age, or if over twenty-one (21) years of age, he is
congenitally or while still a minor has been permanently
Power of the RTC over the Commission incapacitated and incapable of self-support, physically or
mentally; and
Q: What is the nature of the jurisdiction of the SSSC? c. The parent who is receiving regular support from the
member.
A: SSC performs administrative and quasi-judicial functions. It can
sue in the RTC as regards its administrative functions or in the Q: What do you mean by compensation?
enforcement and protection of its private rights. In exercising its
quasi-judicial powers, the Commission ranks with the RTC. Hence, an A: It means all actual remuneration for employment, including the
RTC has no jurisdiction to issue such writs against the Commission. mandated cost-of-living allowance, as well as the cash value of any
remuneration paid in any medium other than cash except that part
Exclusive appellate jurisdiction of the CA of the remuneration in excess of the maximum salary credit as
provided under Section Eighteen of this Act.
NOTE: CA has been granted exclusive appellate jurisdiction over all
final judgments, decisions, resolutions, orders or awards of quasi- Kinds of employment which are expected from compulsory
judicial agencies, instrumentalities, boards or commissions, including coverage under the SSS Law
the SSC.
Q: What is employment?
Q: How should the appeal be made?
A: Any service performed by an employee for his employer except:
A: Appeals from quasi-judicial bodies shall be by a verified petition
for review to be filed with the CA, whether the appeal involves a. Employment purely casual and not for the purpose of
questions of fact, of law or mix. occupation or business of the employer;
b. Service performed on or in connection with an alien vessel
by an employee if he is employed when such vessel is
outside the Philippines;
DEFINITIONS (SEC. 8) c. Service performed in the employ of the Philippine
Government or instrumentality or agency thereof;
Q: Who is an ER? d. Service performed in the employ of a foreign government
or international organization, or their wholly-owned
A: instrumentality: Provided, however, That this exemption
notwithstanding, any foreign government, international
a. Any person, natural or juridical, domestic or foreign; organization or their wholly-owned instrumentality
b. who carries on in the Philippines any trade, business, employing workers in the Philippines or employing
industry, undertaking, or activity of any kind and; Filipinos outside of the Philippines, may enter into an
c. uses the services of another person who is under his agreement with the Philippine Government for the
orders as regards the employment inclusion of such employees in the SSS except those
XPN: the Government and any of its political subdivisions, already covered by their respective civil service
branches or instrumentalities, including corporations retirement systems: Provided, further, That the terms of
owned or controlled by the Government: such agreement shall conform with the provisions of this
Facultad de Derecho Civil 4
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
Act on coverage and amount of payment of contributions institutions within the scope of the law. The Archbishop as
and benefits: Provided, finally, That the provisions of this corporation sole, to whom a share of the income or collection is
Act shall be supplementary to any such agreement; and sent, is considered his employer (Bascua v. Roman Catholic
e. Such other services performed by temporary and other Archbishop of Caceres, 1974).
employees which may be excluded by regulation of the
Commission. Employees of bona fide independent Q: Is this a violation of the separation of State and Church?
contractors shall not be deemed employees of the
employer engaging the service of said contractors. A: This is not a violation of the separation of state and church. The
principle of separation of church and state is not an impediment to
Q: ABC hired 10 carpenters to repair the roof of its factory which the exercise of police power. The SSS Law is devised under the police
was destroyed by typhoon Bebeng. Are they subject to compulsory power of the state and is echoed in the Rerum Novarum of many
coverage? Popes. Although the state must respect rites as well as the faith that
goes with them, state cannot forgo its duty to give due protection
A: No, the employment is purely casual and not for the purpose of to labor when public interest is intertwined therewith. There is no
the occupation or business of the employer. They are not hired on double sovereignty in our government system.
the regular basis.
Q: Is it enough that a person is engaged in an activity?
Q: Who are beneficiaries?
A: No. It must use the services of another person who is under his
A: orders as regards the employment.

a. The dependent spouse until he or she remarries, NOTE: A self-employed individual is considered both EE and ER.
b. the dependent legitimate,
c. legitimated or EMPLOYEE
d. legally adopted, and
e. illegitimate children, who shall be the primary Q: What are the elements to be classified as an EE?
beneficiaries of the member
A:
NOTE: The dependent illegitimate children shall be
entitled to fifty percent (50%) of the share of the a. Person must perform services for an ER in which either or
legitimate, legitimated or legally adopted children. both mental and physical efforts are used;
b. The person must receive compensation for such services;
In the absence of the dependent legitimate, legitimated c. There is an ER-EE relationship.
children of the member, his/her dependent illegitimate
children shall be entitled to one hundred percent (100%) Q: What is the test to determine the existence of ER-EE
of the benefits. relationship?

f. Dependent parents who shall be the Secondary A:


beneficiaries of the member.
g. In the absence of all the foregoing, any other person a. Who has the power to hire or select EEs;
designated by the member as his/her Secondary b. Who has the power to pay for their services;
beneficiary. c. Who has the power to dismiss;
d. Exercise of the power of control over the manner or
Q: Who are self-employed? means by which the work was done.

A: Any person whose income is not derived from employment, as NOTE: An acolyte or sacristan is an employee of the church and the
defined under this Act, as well as those workers enumerated in archbishop as a corporation sole to whom a share of the income or
Section Nine-A hereof. collection is sent may be considered as his ER for purposes of
compulsory coverage under the SSAct.
a. Self-employed professionals;
b. Partners and single proprietors of business; Investment Planning Corp. v. SSS
c. Actors and actresses, directors, script writers and news
correspondents; a. Control Test- whether or not the ER controls or has reserved
d. Professional athletes, coaches, trainers and jockeys; the right to control the EE not only as to the results of the work
i. Including PBA players unless employed by a to be done but also as to the means and methods by which the
particular company . same is to be accomplished;
e. Individual farmers and fishermen. b. Where a person who works for another does so more or less at
his own pleasure and is not subject to definite hours or
EMPLOYER condition of work, and in turn is compensated according to the
result of his efforts and not to the amount hereof, we should
Q: Are religious entities covered? not find that the relationship of ER-EE exists.

A: Yes, it includes religious or entities not organized for profit. It is Singer Sewing Machine v. SSS
the intention of the lawmakers to include charitable and religious
Facultad de Derecho Civil 5
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
a. Manner and means of soliciting sales and effecting collections A: Jeepney drivers on the boundary system are considered EEs of
are left solely to the discretion of the sales agent without the jeepney operators and are subject to compulsory coverage
interference from the company; under the system;
b. They are not subject to the control of the company as to the
means and methods of doing their work. NOTE: Even if the drivers of the jeeps take material possession of
the jeeps, still the respondent as owner thereof and holder of a
SSS v. CA and Manila Cosmos Aerated Water Factory, Inc. certificate of convenience is entitled to exercise supervision over the
drivers by seeing to it that they follow the route prescribed by the
Q: What are the factors to be considered whether or not there Public Service Commission.
exists an ER-EE relationship?
Manila Golf and Country Club v. Intermediate Appellate Court and
A: Among the factors to be considered are: Fermin Llamar

a. whether the contractor is carrying on an independent a. Club has no measure of control over the incidents of the
business; caddies work and compensation that an ER would
b. whether the work is part of the employer's general possess;
business; b. The group rotation system is less a measure of control
c. the nature and extent of the work; than an assurance that the work is fairly distributed.
d. the skill required;
e. the term and duration of the relationship; Republic and SSS v. Asiapro Cooperative
f. the right to assign the performance of the work to
another; COMPENSATION
g. the power to terminate the relationship;
h. the existence of a contract for the performance of a Q: What do you mean by compensation?
specified piece of work;
i. the control and supervision of the work; A: It includes salaries, wages, commissions, bonuses, overtime pay,
j. the employer's powers and duties with respect to the vacation and sick leaves and other remunerations given for services
hiring, firing, and payment of the contractor's servants; rendered by the EE, whether paid in cash or in some other medium.
k. the control of the premises;
l. the duty to supply the premises, tools, appliances, a. Per diems for hotel and meal expenses becomes an
material and labor; and integral part of the earnings and working conditions of the
m. the mode, manner, and terms of payment. (56 C.J.S. 46). EE and therefore forms part of his salary compensation;
b. Transportation allowance given to be expended by the EE
NOTE: In determining whether one is an independent contractor, in commuting to his place of work because he maintains
each case must be determined on its own facts and all the features his work elsewhere for personal convenience is
of the relationship are to be considered. compensation;
c. Separation and retirement pay given as a result of the
SSS v. CA and Quality Tobacco Corporation cessation of the ER-EE relationship is not compensation;
d. So are bonuses or gifts that are pure acts of magnanimity
Control test- whether the ER controls or has reserved the right to on the part of the ER;
control the EE not only as to the result of the work to be done but e. Christmas bonuses or gifts do not fall within the purview
also as to the means and methods by which the same is to be of the EEs earning or remunerationthey are purely acts
accomplished. of magnanimity;
th
f. 13 month pay need not be credited as part of the regular
Q: Under the control test, is it important for employer-employee wage of EEs for purposes of determining Social Security
relationship to arise that the employer actually exercises the and Medicare premiums.
power of control over the employee?
Domestic services
A: No, it is sufficient that such power could have under the
circumstances been exercised (Aurora Land Projects Corp. v. NLRC, Q: What is Domestic service?
1995).
A: It is that which is rendered in connection with the maintenance of
Other Cases on ER-EE relationship the residence of the ER and for the purpose of ministering to his
wants and those of the members of his household:
1. Joint venture
a. No ER-EE relationship established between the a. Services of housemaids;
boat-owner and the pilot and crew members; b. Cooks;
b. Jockey is not an EE of the race club and does not c. Laundry women
fall within the coverage of the SSAct; d. Family driver is not subject to the compulsory coverage if
his function and duties are not in connection with the
Q: Are jeepney drivers on the boundary system subject to business of his ER;
compulsory coverage under the SSS law? e. Cooks, bellboys, and chambermaids are subject to
compulsory coverage.

Facultad de Derecho Civil 6


UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
EMPLOYMENT PURELY CASUAL foreign ER for the faithful and regular remittance required SSS, EC
and Medicare contributions and compliance with other duties
a. Nature of the services performed not the duration thereof imposed on the ERs
is determinative of coverage and non-coverage of SSS law;
b. To be exempted on basis of casual employmentservices BEN STA.RITA v. CA
must not merely be irregular, temporary or intermittent
but the same must not also be in connection with the The extension of the coverage of the SSS to Filipino seafarers in this
business or occupation of the ER; case arises by virtue of the assent given in the contract of
employment signed by the ER and seafarer. It binds the petitioner
TEMPORARY EEs therefore.

Q: Are temporary employees subject to compulsory coverage? Compulsory coverage of the Self-employed (Sec. 9-A)

A: Yes. Their work is in furtherance of the business or occupation of Coverage in the SSS shall also be compulsory upon such self-
the ER; employed persons such as:

E.g.: a. All self-employed professionals;


1. Guides hired by surveying firms for 2 or 3 days; b. Partners and single proprietors of businesses;
2. Cargadores employed by a mining company; c. Actors and actresses, directors, scriptwriters and news
correspondents who do not fall within the definition of the
Dependent children term employee in Section 8 (d) of this Act;
d. Professional athletes, coaches, trainers and jockeys; and
NOTE: Must not have reached 21 years of age. A child who has e. Individual farmers and fishermen.
st
already celebrated his 21 birthday anniversary is no longer entitled
nd
to the dependents pension although he has not yet reached his 22 Effective Date of Coverage (Sec. 10)
birthday anniversary.
Q: When is the effective date of the coverage of an employer, an
COVERAGE (Sec. 9) employee, or a self-employed person take effect?

Q: Who are covered by the compulsory membership? A:

A: a. Compulsory coverage of the employer shall take effect on


the first day of his operation and that of the employee on
a. Coverage in the SSS shall be compulsory upon all the day of his employment;
employees not over sixty (60) years of age and their b. the compulsory coverage of the self-employed person
employers: Provided, That in the case of domestic helpers, shall take effect upon his registration with the SSS.
their monthly income shall not be less than One thousand
pesos (P1,000.00) a month: Provided, further, That any Effect of Separation from Employment (Sec.11)
benefit already earned by the employees under private
benefit plans existing at the time of the approval of this Q: What is the effect of separation from employment?
Act shall not be discontinued, reduced or otherwise
impaired xxx A:
b. Spouses who devote full time to managing the household
and family affairs, unless they are also engaged in other a. When an employee under compulsory coverage is
vocation or employment which is subject to mandatory separated from employment, his employers contribution
coverage, may be covered by the SSS on a voluntary basis. on his account and his obligation to pay contributions
c. Filipinos recruited by foreign-based employers for arising from that employment shall cease at the end of the
employment abroad may be covered by the SSS on a month of separation, but said employee shall be credited
voluntary basis. with all contributions paid on his behalf and entitled to
benefits according to the provisions of this Act.
Coverage of Filipino Seafarers b. He may, however, continue to pay the total contributions
to maintain his right to full benefit.
Q: Are Filipino seafarers covered?
Once a member, always a member rule
A: Seafarers recruited in the Philippines by local licensed manning
agencies in behalf of their foreign principals must be registered for NOTE: Separation from employment does not terminate
coverage under the SSS, Medicare and EEs Compensation laws. membership with the SSS. He remains a member of the system and
would even be entitled to benefits arising from any contingency
Q: What is the effect if the foreign principals are not registered? occurring while he is out of work and not paying SSS premiums. Only
necessary that he has satisfied the requirements: Number of
A: DOLE will not approve the contract without such condition. premiums payments;

NOTE: Manning agency is to be considered the ERs representative in Circular no. 101-T
the Philippines and is made jointly and severally liable with the
Facultad de Derecho Civil 7
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
1. When an SSS member is separated from employment, he EMPLOYER
may continue to pay SSS and Medicare contributions on
his own by shouldering both ERs and EEs share; Beginning as of the last day of the month when an employee's
2. He shall not be allowed to continue payment of his compulsory coverage takes effect and every month thereafter
Medicare contributions unless he also pays his SSS during his employment, his employer shall pay, with respect to such
contributions; covered employee, the employer's contribution in accordance with
3. No contribution shall be paid retroactively; the schedule indicated in Section Eighteen of this Act.
4. When members have filed retirement claims and they opt Notwithstanding any contract to the contrary, an employer shall not
to continue saying SSS contributions in order for them to deduct, directly or indirectly, from the compensation of his
qualify for the monthly pension, they shall be allowed to employees covered by the SSS or otherwise recover from them the
continue such payment and apply the same effective as of employer's contributions with respect to such employees.
the month of filing the retirement claim, subject to the
following conditions: The remittance of such contributions by the employer shall be
supported by a quarterly collection list to be submitted to the SSS at
a. Option must be exercised and communicated to the end of each calendar quarter indicating the correct ID number of
the SSS within 60 days from the date of receipt the employer, the correct names and the SSS numbers of the
of notice from the SSS informing him of his employees and the total contributions paid for their account during
option; the quarter.
b. Option must be accompanied by actual
remittance of all past contributions; SELF-EMPLOYED
c. Each subsequent remittance must be made not
later than 3 months from the last day of the The contributions to the SSS of the self-employed member shall be
month to which it is applicable determined in accordance with Section Eighteen of this Act:
Provided, That the monthly earnings declared by the self-employed
Effect of Interruption of Business or Professional Income member at the time of his registration with the SSS shall be
(Sec. 11-A) considered as his monthly compensation and he shall pay both the
employer and the employee contributions: Provided, further, That
Q: What if the self-employed realizes no income in a given month? the contributions of self-employed persons earning One thousand
pesos (P1,000.00) monthly or below may be reduced by the
A: If the self-employed realizes no income in any given month, he Commission.
shall not be required to pay contributions for that month. He may,
however, be allowed to continue paying contributions under the The monthly earnings declared by the self-employed member at the
same rules and regulations applicable to a separated employee time of his registration shall remain the basis of his monthly salary
member. Provided, That no retroactive payment of contributions credit, unless he makes another declaration of his monthly earnings,
shall be allowed other than as prescribed under Section Twenty- in which case such latest declaration becomes the new basis of his
two-A hereof. monthly salary credit.

Q: For what purposes are the contributions to the SSS utilized?


EMPLOYER, EMPLOYEE, SELF-EMPLOYED CONTRIBUTIONS TO THE
SSS A: They are to be used to meet the current administrative and
operational expenses and for the payment of the benefits under the
EMPLOYEE SSS law.

Beginning as of the last day of the calendar month when an


employee's compulsory coverage takes effect and every month
thereafter during his employment, the employer shall deduct and Benefits available to employees covered by the SSS law
withhold from such employee's monthly salary, wage, compensation
or earnings, the employee's contribution in an amount Q: What are the benefits available to employees covered by the
corresponding to his salary, wage, compensation or earnings during SSS law?
the month and remit the same with the SSS
A:
The maximum monthly salary credit shall be Nine thousand pesos
(P9,000.00) effective January Nineteen hundred and ninety six 1. Sickness benefits
(1996); Provided, That it shall be increased by One thousand pesos 2. Permanent disability benefits
(P1,000.00) every year thereafter until it shall have reached Twelve 3. Maternity leave benefit
thousand pesos (P12,000.00) by Nineteen hundred and ninety nine 4. Retirement benefit
(1999): Provided, further, That the minimum and maximum monthly 5. Death
salary credits as well as the rate of contributions may be fixed from 6. Funeral benefits
time to time by the Commission through rules and regulations taking 7. Loans
into consideration actuarial calculations and rate of benefits, subject
to the approval of the President of the Philippines.

Facultad de Derecho Civil 8


UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
NOTE: For the enjoyment of benefits under the SSS law, what is whichever is higher, shall also be paid for each dependent
necessary is membership in the SSS and not the causal connection of child conceived on or before the date of the contingency;
the work of the employee to his injury or sickness. c. but not exceeding five (5), beginning with the youngest
and without substitution;
MONTHLY PENSIONS (SEC. 12) d. Provided, that where there are legitimate or illegitimate
children, the former shall be preferred.
NOTE: Payment in dollars of SSS pension benefits for prisoners
permanently living abroad does not violate the Uniform Currency RETIREMENT BENEFITS (SEC. 12-B)
Act.
A. A member who has paid at least one hundred twenty (120)
Q: What is the monthly pension? monthly contributions prior to the semester of retirement
and who:
A: The monthly pension shall be the sum of the following: i. has reached the age of sixty (60) years and is
already separated from employment or has
a. The average monthly salary credit multiplied by the ceased to be self-employed; or
replacement ratio; and ii. has reached the age of sixty-five (65) years,
b. One and a half per cent of the average monthly salary a. shall be entitled for as long as he lives to the monthly
credit for each credited year of service in excess of ten pension;
years. b. Provided, that he shall have the option to receive his first
eighteen (18) monthly pensions in lump sum discounted at
NOTE: The monthly pension shall in no case be less than two a preferential rate of interest to be determined by the SSS.
hundred pesos nor paid in an aggregate amount of less than sixty
times the monthly pension except to a secondary beneficiary B. A covered member who is sixty (60) years old at
retirement and who does not qualify for pension benefits
Q: What are average monthly salary credit and average daily under paragraph (a) above, shall be entitled to a lump sum
salary credit? benefit equal to the total contributions paid by him and on
his behalf: Provided, That he is separated from
A: employment and is not continuing payment of
contributions to the SSS on his own.
Average monthly salary credit Average daily salary credit
The result obtained by dividing the The result obtained by dividing C. The monthly pension shall be suspended upon the
sum of the monthly salary credits in the sum of the six highest reemployment or resumption of self-employment of a
the sixty-month period immediately monthly salary credits in the retired member who is less than sixty-five (65) years old.
preceding the semester of He shall again be subject to Section Eighteen and his
twelve-month period
contingency by the number of
immediately preceding the employer to Section Nineteen of this Act.
months of coverage in the same
period, or the result obtained by semester of contingency by one
dividing the sum of all the monthly hundred eighty D. Upon the death of the retired member, his primary
salary credits paid prior to the beneficiaries as of the date of his retirement shall be
semester of contingency by the entitled to receive the monthly pension: Provided, That if
number of calendar months of he has no primary beneficiaries and he dies within sixty
coverage in the same period, (60) months from the start of his monthly pension, his
whichever is greater: except where Secondary beneficiaries shall be entitled to a lump sum
the month of contingency falls
benefit equivalent to the total monthly pensions
within eighteen months from the
month of coverage, in which case it corresponding to the balance of the five-year guaranteed
is the result obtained by dividing the period, excluding the dependents pension.
sum of all monthly salary credits
paid prior to the month of E. The monthly pension of a member who retires after
contingency by the total number of reaching age sixty (60) shall be the higher of either:
calendar months of coverage in the a. the monthly pension computed at the earliest time
same period: Provided, That the he could have retired had he been separated from
injury or sickness which caused the
employment or ceased to be self-employed plus all
disability shall be deemed as the
permanent disability for the purpose adjustments thereto; or
of computing the average monthly b. the monthly pension computed at the time when he
salary credit. actually retires.

DEPENDENTS PENSION (SEC. 12-A) Retirement of underground miners

a. Where monthly pension is payable on account of: a. SSC has reduced the retirement age of underground mine
i. death, workers from 60 to 55 years;
ii. permanent total disability or b. Worker must be certified as underground worker by his
iii. retirement, ER, who must be duly registered with the Bureau of Mines
b. dependents pension equivalent to ten percent (10%) of as a mining company;
the monthly pension or Two hundred fifty pesos (P250.00), c. He must have been working as underground mine worker
for at least 5 years prior to the semester of retirement.
Facultad de Derecho Civil 9
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________

Dycaico v. SSS Spouse

NOTE: The proviso as of the date of his retirement which qualifies 1. Must be legally married to the retiree-pensioner at
the term primary beneficiaries is unconstitutional for it violates the time of death
the due process and equal protection clauses of the Constitution. 2. If death was celebrated after the retirement of the
The proviso reflects congressional concern with the possibility of member, any of the following circumstances is
relationships entered after retirement for the purpose of obtaining present:
benefits a. The spouses were living together as
husband and wife without legal
Q: What are the requisites for a valid classification? impediment to marry each other prior to
the retirement of the member
A: b. The surviving spouse in the SSS Forms
1. Must rest on substantial distinctions; prior to the retirement of the member
2. Must be germane to the purpose of the law; c. A child was born during the existence of
3. It must not be limited to existing conditions only; the marriage between the retiree-
4. Must apply equally to all members of the same class. pensioner and the surviving spouse
d. Before the marriage, a child was born
NOTE: If it was the intention of Congress to prevent sham marriages during the time the spouses were living
or those entered in contemplation of imminent death, then it should together as husband and wife without
have prescribed a definite duration of relationship or durational legal impediment to marry each other
period of relationship as one of the requirements for entitlement to e. The marriage between the surviving
survivors pension. spouse and retiree-pensioner is
established to have been contracted not
Retirement benefits are property interest of the retiree: where the for any fraudulent purpose. In this regard,
EE retires and meets the eligibility requirements, he acquires a he SSS Branch concerned shall conduct an
vested right to the benefits that is protected by due process clause appropriate investigation to satisfy this
and retirees enjoy a protected property interest whenever they requirement. One indicator of a marriage
acquire a right to immediate payment under existing law; celebrated in good faith is that of the
retired-pensioner and surviving spouse
An outright confiscation of benefits due to the surviving spouse had subsequently lived together as
without giving them an opportunity to be heard; it creates husband and wife.
conclusive presumption which is unconstitutional because it 3. Must have been dependent for support upon the
presumes a fact which is not necessarily or universally true. retiree-pensioner during the existence of the
marriage
SSS Office Order No. 2010-025 Child of the retiree-pensioner
Claims for benefits accruing from the death of a retiree-pensioner
1. Must be legitimate, legitimated, legally adopted, or
Q; What is the purpose of the Office Order? illegitimate child who is
2. Unmarried,
A: To insure the implementation of Elena Dycaico v. SSS. 3. Not gainfully employed
4. Had not reached 21 years of age or
NOTE: The guidelines shall apply to claims for benefits arising from 5. even if 21 years of age, he is congenitally or while a
the death of the retiree-pensioner. minor has been permanently incapacitated and
incapable of self-support, physically or mentally
Q: Who are the beneficiaries?
SECONDARY BENEFICIARIES
A:
Parents of the retiree-pensioner
PRIMARY BENEFICIARIES SECONDARY
BENEFICIARIES 1. Must have been dependent for support from the
1. Spouse of the retiree- 1. Parents of the retiree- retiree-pensioner
pensioner pensioner;
2. Child of the retiree- 2. In their absence, any Any other person designated by the retiree-pensioner
pensioner other person
designated by the 1. Must have been duly designated as secondary
retiree pensioner beneficiary by the retiree-pensioner in the records
of the SSS
Q: What are the qualifications of the beneficiaries?
Q: What are the benefits of each beneficiary?
A:
A:
QUALIFICATIONS
PRIMARY BENEFICIARIES
Facultad de Derecho Civil 10
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
PRIMARY BENEFICIARIES SECONDARY BENEFICIARIES Q: Who are the beneficiaries?
1. The spouse shall be entitled If the retiree-pensioner has no
to receive the monthly primary beneficiaries and he A:
pension until he/she dies within 60 months from the
remarries. start of his monthly pension, the PRIMARY BENEFICIARIES SECONDARY BENEFICIARIES
2. The legitimate, legitimated secondary beneficiaries shall be 1. Dependent spouse 1. Dependent parents
or legally adopted and entitled to a lump sum benefit until he or she 2. In the absence of such,
illegitimate child, who is equivalent to the monthly remarries any other person
unmarried or not gainfully pensions corresponding to the 2. Dependent legitimate designated by the
employed and has not balance of the 5-year 3. Legitimated covered employee as
reached 21 years of age of guaranteed period, excluding 4. Legally adopted secondary beneficiary
if over 21 years of age, he is the dependents pension. 5. Illegitimate children
congenitally or while still a
minor has been PERMANENT DISABILITY BENEFITS
permanently incapacitated
and incapable of self- NOTE: Upon the permanent total disability of a member who has
support, physically or paid at least thirty-six (36) monthly contributions prior to the
mentally shall be entitled to semester of disability, he shall be entitled to the monthly pension.
receive their share of the
monthly pension plus the Q: What if the member has not paid the required 36 contributions?
dependents pension.
Provided, that the A: If he has not paid the required thirty-six (36) monthly
dependent illegitimate contributions, his primary or secondary beneficiaries shall be
child shall be entitled to entitled to:
50% of the share of the
legitimate, legitimated or a. a lump sum benefit equivalent to the monthly pension
legally adopted child. times the number of monthly contributions paid to the SSS
Provided further that in the or
absence of the legitimate, b. twelve (12) times the monthly pension, whichever is
legitimated, or legally higher
adopted child of the
member, his or her Q: What if a member who (1) has received a lump sum benefit is
dependent illegitimate reemployed or has resumed self-employment not earlier than one
child shall be entitled to (1) year from the date of his disability?
100% of the benefits
A: He shall again be subject to compulsory coverage and shall be
FILING OF PETITION BEFORE THE SSC considered a new member.

In the event a claim for survivorship benefit is denied, the SSS NOTE: The monthly pension and dependents pension shall be
branch is to advise the claimant to file a Petition before the SSC for suspended upon the reemployment or resumption of self-
adjudication of the claim. employment or the recovery of the disabled member from his
permanent total disability or his failure to present himself for
DEATH BENEFITS (Sec. 13) examination at least once a year upon notice by the SSS.

a. Upon the death of a member who has paid at least thirty- Q: What are the permanent total disability benefits?
six (36) monthly contributions prior to the semester of
death, his primary beneficiaries shall be entitled to the A: The following disabilities shall be deemed permanent total:
monthly pension.
b. if he has no primary beneficiaries, his secondary 1. Complete loss of sight of both eyes;
beneficiaries shall be entitled to a lump sum benefit 2. Loss of two limbs at or above the ankle or wrists;
equivalent to thirty-six (36) times the monthly pension. 3. Permanent complete paralysis of two limbs;
4. Brain injury resulting to incurable imbecility or insanity;
Q: What if the member has not paid the required 36 contributions? and
5. Such cases as determined and approved by the SSS.
A: If he has not paid the required thirty-six (36) monthly
contributions, his primary or secondary beneficiaries shall be NOTE: If the disability is permanent partial, and such disability
entitled to: occurs before thirty-six (36) monthly contributions have been paid
prior to the semester of disability, the benefit shall be such
a. a lump sum benefit equivalent to the monthly pension percentage of the lump sum benefit described in the preceding
times the number of monthly contributions paid to the SSS paragraph with due regard to the degree of disability as the
or Commission may determine.
b. twelve (12) times the monthly pension, whichever is
higher If the disability is permanent total and such disability occurs after
thirty-six (36) monthly contributions have been paid prior to the
Facultad de Derecho Civil 11
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
semester of disability, the benefit shall be the monthly pension for A: Upon the death of the permanent total disability pensioner, his
permanent total disability payable not longer than the period primary beneficiaries as of the date of disability shall be entitled to
designated in the following schedule: eighty per cent of the monthly pension and his dependents to the
dependents' pension: Provided, That if he has no primary
Q: What is the effect of separation of spouses as to the death beneficiaries and he dies within sixty months from the start of his
benefits? monthly pension, his secondary beneficiaries shall be entitled to a
lump sum benefit equivalent to the bigger of (1) twenty times the
A: monthly pension or (2) the difference of sixty times the monthly
pension and the total monthly pensions paid by the SSS excluding
Florendo v. SSC the dependents' pension.

a. Under the law, petitioner cannot be considered as a legal Q: If a retired employee pensioner dies, what death benefits if any
wife, and therefore, could not be designated as a primary will his beneficiaries and dependents get?
beneficiary and/or dependent of Edilberto, as defined
under the SS Law; A: Upon the death of the retired employee pensioner, his primary
b. Also, the children of void marriage are natural children by beneficiaries as of the date of his retirement shall be entitled to
legal fiction and thus illegitimate children, who cannot be eighty per cent of the monthly pension and his dependents to the
considered as primary beneficiaries; dependents' pension: Provided, That if he has no primary
c. While it is true that an EE member is given the freedom to beneficiaries and he dies within sixty months from the start of his
choose and designate his beneficiaries, this right of choice monthly pension, his secondary beneficiaries shall be entitled to a
of the insured is subject to the limitations provided for lump sum benefit equivalent to the bigger of (1) twenty times the
under the law; monthly pension or (2) the difference of sixty times the monthly
pension and the total monthly pensions paid by the SSS excluding
Degree of dependence the dependents' pension.

a. A spouse who lived separately from the deceased cannot Q: What if the beneficiary qualifies for entitlement to the death
qualify as a beneficiary; she is not a dependent spouse. benefits under the SSS law, how will such benefits be disposed of?
b. Entitlement to the benefit as primary beneficiary requires
not only legitimacy but also dependence upon the A: They shall be paid to the legal heirs of the deceased in accordance
member EE; with the law of succession.
c. Common-law wife is not a beneficiary
Funeral benefits
PERMANENT DISABILITY BENEFITS (Sec. 13-A)
Q: What is funeral benefit?
Section 13-A. Permanent disability benefits. (a) Upon the covered
employee's permanent total disability, if such disability occurs after he had A: A funeral grant of two thousand pesos shall be paid to help defray
paid at least thirty-six monthly contributions prior to the semester of the cost of funeral expenses upon the death of a covered member,
disability, he shall be entitled to the monthly pension and his dependents
permanently totally disabled employee or retiree.
to the dependents' Pension: Provided, That if the disability occurs before
he has paid thirty-six monthly contributions prior to the semester of
disability, he shall be entitled to a lump sum benefit equivalent to thirty- SICKNESS BENEFIT (Sec. 14)
five times the monthly pension: Provided, further, That the minimum
disability benefit shall not be less than the total contributions paid by him Q: What is sickness benefit?
and his employer on his behalf nor less than one thousand pesos: Provided,
further, That a covered employee who becomes permanently totally A: It is a daily allowance paid to a covered employee who becomes
disabled without having paid at least three monthly contributions shall be sick and is confined in a hospital for more than 3 days or elsewhere
entitled to the minimum benefit: Provided, finally, That a member who (1)
with the Commissions approval. Such daily allowance should be
received a lump sum benefit and (2) is re-employed not earlier than one
year from date of his disability shall again be subject to compulsory equivalent to 90% of the daily salary credit of such member, but in
coverage and considered a new member. (As amended by Sec. 6, P.D. No. no case shall it be paid longer than 120 days in one calendar year.
1202, S-1977)
NOTE: Any unused portion of this period in one year cannot be
Q: What are the disabilities deemed as permanent total? carried forward and added to the total number of compensable days
allowable in the following year.
A: The following disabilities shall be deemed permanent total:
Q: What are the requisites for the enjoyment of the sickness
1. Complete loss of sight of both eyes; benefit under the SSS law?
2. Loss of two limbs at or above the ankle or wrists;
3. Permanent complete paralysis of two limbs; A:
4. Brain injury resulting to incurable imbecility or insanity;
and, 1. Payment of at least three (3) monthly contributions in the
5. Such cases as determined and approved by the SSS. twelve-month period immediately preceding the semester
2. sickness or injury and is confined therefor for more than
Q: In case a permanent total disability pensioner dies, are his three (3) days in a hospital or elsewhere with the approval
beneficiaries entitled to any death benefits? of the SSS

Facultad de Derecho Civil 12


UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
3. notice of the fact of sickness by the employee to the 5. That the maternity benefits provided under this section
employer within 5 calendars days after the start of his shall be paid only for the first four deliveries after March
confinement unless such confinement is in a hospital or 13, 1973;
the employee became sick or was injured while working or
within the premises of the employer in which case such 6. That the SSS shall immediately reimburse the employer of
notice is not necessary one hundred per cent of the amount of maternity benefits
4. exhaustion of sick leaves of absence with full pay to the advanced to the employee by the employer upon receipt
credit of the employee of satisfactory proof of such payment and legality thereof;
and
Q: What is the obligation of the employer with respect to the
payment of the sickness benefit? 7. That if an employee should give birth or suffer abortion or
miscarriage without the required contributions having
A: The employer shall pay the allowance promptly every regular been remitted for her by her employer to the SSS, or
th
payday or on the 15 and last day of each month, subject to 100% without the latter having been previously notified by the
reimbursement by the SSS upon receipt of satisfactory proof such employer of time of the pregnancy, the employer shall pay
payment and legally thereof. to the SSS damages equivalent to the benefits which said
employee would otherwise have been entitled to, and the
Q: When is the employer or the unemployed member not entitled SSS shall in turn pay such amount to the employee
to reimbursement? concerned.

A: Circular No. 15-V

1. where the employer failed to notify the SSS of the a. Daily maternity benefit shall be paid for a compensable
confinement period of 60 days in case of normal delivery, abortion,
2. in the case of the unemployed, where he failed to send the miscarriage, or 78 days in case of caesarian delivery;
notice directly to the SSS except when the confinment is in b. Payment of daily maternity benefit shall be a bar to the
a hospital recovery of sickness benefits for the same period;
3. where the claim for reimbursement is made after 1 year c. Daily maternity benefit shall be equivalent to 100% of the
from the date of confinement. average daily salary credit;
d. Shall be observed for child delivery, abortions, miscarriage,
MATERNITY LEAVE BENEFIT (Sec. 14-A) occurring on/after April 23, 1991.

Q: Who are entitled to the maternity benefit under SSS law? Circular No. 22-V

A: A covered female employee who has paid at least three monthly a. Prescriptive period: 10 years for ERs to file their
maternity contributions in the twelve-month period preceding the reimbursement for maternity benefit claims.
semester of her childbirth, abortion, or miscarriage and who is
currently employed shall be paid a daily maternity benefit NON-TRANSFERABILITY OF BENEFITS (Sec. 15)
equivalent to one hundred per cent of her present basic salary,
allowances and other benefits or the cash equivalents of such Q: Who are the beneficiaries disqualified from receiving any
benefits for sixty days. benefits under the SSS Law?

Q: What are the requirements for its availment? A: Any beneficiary who is a national of a foreign country which does
not extend benefits to a Filipino beneficiary residing in the
A: Philippines, or which is not recognized by the Philippines, shall not
be entitled to receive any benefit under this Act: Provided, further,
1. That the employee shall have notified her employer of her That notwithstanding the foregoing, where the best interest of the
pregnancy and the probable date of her childbirth which SSS will be served, the Commission may direct payments without
notice shall be transmitted to the SSS in accordance with regard to nationality or country of residence
the rules and regulations it may provide;
Q: Are the benefits provided for in the SSS law transferrable?
2. That the payment shall be advanced by the employer in
two equal installments within thirty days from the filing of A: No. Such benefits are not transferrable and no power of attorney
the maternity leave application; or other document executed by those entitled thereto, in favor of
any agent, attorney, or any other person for the collection thereof
3. That in case of caesarian delivery, the employees shall be on their behalf shall be recognized, except when they are physically
paid the daily maternity benefit for seventy-eight days; unable to collect personally such benefits

4. That payment of daily maternity benefits shall be a bar to EXEMPTION FROM TAX, LEGAL PROCESS AND LIEN (Sec. 16)
the recovery of sickness benefits provided by this Act for
the same compensable period of sixty days for the same Q: Are benefit payments made by the SSS subject to tax or
childbirth, abortion, or miscarriage; attachments and similar processes?

Facultad de Derecho Civil 13


UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
A: No. the SSS and all its assets and properties, all contributions
collected and all accruals thereto and income or investment A: Any person, receiving compensation while in the service of an
earnings therefrom as well as all supplies, equipment, papers or employer as defined herein, whether by election or appointment,
documents which may be required in connection with the operation irrespective of status of appointment, including barangay and
or execution of this Act shall be exempt from any tax, assessment, sanggunian officials;
fee, charge, or customs or import duty; and all benefit payments
made by the SSS shall likewise be exempt from all kinds of taxes, Q: Who is an active member?
fees or charges, and shall not be liable to attachments,
garnishments, levy or seizure by or under any legal or equitable A: A member who is not separated from the service;
process whatsoever, either before or after receipt by the person or
persons entitled thereto, except to pay any debt of the covered Compulsory Coverage
employee to the SSS.
Q: Who are compulsorily covered the GSIS Law?
Q: Is the SSS Act a law of succession? Why?
A: Employees receiving compensation who have not reached the
A: No. The benefits due to under the SSS Law do not form part of the compulsory retirement age, irrespective of employment status.
estate of the covered employee. Besides, persons other than the
heirs of the deceased employee may be entitled to the said benefits. XPNs:

1. Members of the AFP and PNP provided They must settle


GOVERNMENT SERVICE INSURANCE SYSTEM first their financial obligation with GSIS;
2. Contractuals who have no employer and employee
relationship with the agencies they serve.
PD No. 1146
Q: What are the benefits under GSIS Law?
It is the law expanding and improving the social security and
A: GR: All members of the GSIS shall have life insurance, retirement,
insurance programs administered by the GSIS. It increases the
and all other social security protection such as disability,
pension benefits, expands disability benefits and will eventually
survivorship, separation, and unemployment.
extend the compulsory coverage of the social security and insurance
programs to all government officers regardless of employment
XPN: Members of the judiciary and constitutional commissions who
status.
shall have life insurance policy only.
Q: What is "pension"?
Q: Who are excluded from the coverage of the law?
A: It is a periodical allowance of money granted by the government
A:
in consideration or recognition of meritorious past services, or of
loss or injury sustained in the public service.
1. EEs who have separate retirement schemes under the
special law and are covered by their respective retirement
Q: Is it a gift or gratuity?
laws:
a. Members of the judiciary;
A: No.
b. Constitutional commissions;
c. Other similarly situated government officials.
Q: What is "retirement pay"?
2. Contractual EEs who have no ER-EE relationship with the
A: An adjusted compensation presently earned which, with
agencies they serve;
contributions from employees, is payable in the future. It is in th
3. Uniformed members of the AFP, Bureau of Fire Protection,
nature of pay withheld to induce continued faithful service and
and the Bureau of Jail Management and Penology (BJMP)
amounts to compensate for services previously rendered.
whose coverage by the GSIS has ceased effective June 24,
1997;
Q: What is the rule as to government employees with separate
4. Uniformed members of the PNP whose coverage has
retirement schemes?
ceased effective February 1, 1996.
A: They are covered by their respective retirement laws and not by
Classification of GSIS members
PD. 1146.
Q: Classify the members of GSIS for purposes of benefit
Q: Who is an employer?
entitlement?
A: The national government, its political subdivisions, branches,
A:
agencies or instrumentalities, including government-owned or
controlled corporations, and financial institutions with original
1. Active members
charters, the constitutional commissions and the judiciary.
2. Policy holders
3. Separated members
Q: Who is an employee or member?
4. Retired members
Facultad de Derecho Civil 14
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
A: The unremitted collections shall earn such interest as the GSIS
Active members board of Trustees may prescribe, not exceeding 2% per month from
due date to the date of payment by the ER.
a. Those members are still in the service and are paying the
integrated premiums. Q: In case the GSIS became insolvent, who shall pay the benefits
b. They are covered for the entire package for the benefits that are due its members?
and privileges being extended by the GSIS.
A: The government.
Policy holders
Benefits
a. Are covered for life insurance only and are entitled to the
specific benefits accruing only from the life insurance Q: What are the benefits that may be enjoyed under the GSIS Law?
coverage;
b. They can avail of policy and loan privilege only; A:
c. They may apply for housing loans.
1. Separation benefits
Separate members 2. Retirement benefits
3. Permanent disability benefits
a. Are former active members who have been separated 4. Temporary disability benefits
from service and are still covered by the GSIS under the 5. Survivorship benefits
principle of once a member, always a member; 6. Funeral benefits
b. They shall be entitled to receive future benefits in the 7. Life insurance benefits
event of compensable contingency such as:
i. old-age (attainment of age 60 years; NOTE: The GSIS offers 2 separate and distinct systems of benefits to
ii. disability its members:
iii. survivorship
iv. death 1. Life insurance
c. not entitled to receive loan privilege; 2. Retirement insurance
d. may apply for housing loans
PERMANENT DISABILITY
Retired members
Q: What is "disability"?
a. members are former active members who have retired
from the service and are already enjoying the benefits A: Any loss or impairment of the normal functions of the physical
applied for; and/or mental faculty of a member which reduces or eliminates
b. not entitled to receive loan privilege except stock purchase his/her capacity to continue with his/her current gainful occupation
loan; or engage in any other gainful occupation.

Q: Does the separation of the EEs of the ER carry with it the Q: What are the different kinds of diasbilities? Differentiate them.
termination of his membership with the GSIS?
A:
A: No. A member separated from the service shall continue to be a
member and shall be entitled to whatever benefits he has qualified 1. Total Disability -Complete incapacity to continue with his
to in the event of any contingency compensable under the Act. present employment or engage in any gainful occupation
due to the loss or impairment of the normal functions of
Sources of funds the physical and/or mental faculties of the member;
2. Permanent Total Disability- Accrues or arises when
Q: Give the sources of funds of the GSIS system. recovery from the impairment mentioned as "disability" is
medically remote;
A: 3. Temporary Total Disability- Accrues or arises when the
impaired physical and/or mental faculties can be
1. From the monthly contributions required of the covered rehabilitated and/or restored to their normal functions;
EEs and their ERs; 4. Permanent Partial Disability- Accrues or arises upon the
2. Contributions are deducted and withheld by the ER each irrevocable loss or impairment of certain portion/s of the
month from the monthly salary of the EE and are remitted physical faculties, despite which the member is able to
by the latter, together with its own share, to the system pursue a gainful occupation.
within the first 10 days of each calendar month following
the month to which the contributions apply. Q: What are the 2 types of permanent disability?

Q: What is the penalty for non-remittance or delayed remittance A:


contributions?
1. Permanent total disability- accrues or arises when
recovery from any loss or impairment of the normal
functions of the physical and/or mental faculty of a
Facultad de Derecho Civil 15
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
member which reduces or eliminates his/her capacity to
continue with his/her current gainful occupation or engage (1) complete loss of sight of both eyes;
in any other gainful occupation is medically remote;
2. Permanent partial disability- accrues or arises upon the (2) loss of two (2) limbs at or above the ankle or wrist;
irrevocable loss or impairment of certain portion/s of the
physical faculties, despite which the member is able to (3) permanent complete paralysis of two(2) limbs;
pursue a gainful occupation.
(4) brain injury resulting in incurable imbecility or insanity;
Q: What are the general conditions for entitlement under the and
permanent disabilities benefits?
(5) such other cases as may be determined by the GSIS.
A: A member who suffers permanent disability for reasons not due
to his: Q: What is the requsites in order to avail of the "Permanent total
disability benefits"?
1. grave misconduct,
2. notorious negligence, A:
3. habitual intoxication, or
4. willful intention to kill himself or another, shall be entitled 1. he is in the service at the time of disability; or
to the benefits subject to the corresponding conditions 2. if separated from the service, he has paid at least thirty-six
therefor. (36) monthly contributions within the five (5) year period
immediately preceding his disability, or has paid a total of
Q: What are the permanent disability benefits? at least one hundred eighty (180) monthly contributions,
prior to his disability
A: a. if at the time of disability, he was in the service
and has paid a total of at least one hundred
SECTION 16. Permanent Total Disability Benefits. (a) If the eighty (180) monthly contributions, in addition
permanent disability is total, he shall receive a monthly income to the monthly income benefit, he shall receive a
benefit for life equal to the basic monthly pension effective from the cash payment equivalent to eighteen (18) times
date of disability: Provided, That: his basic monthly pension:

(1) he is in the service at the time of disability; or NOTE: A member cannot enjoy the monthly income benefit for
permanent disability and the old-age retirement simultaneously.
(2) if separated from the service, he has paid at least thirty-six (36)
monthly contributions within the five (5) year period immediately 3. If a member who suffers permanent total disability does
preceding his disability, or has paid a total of at least one hundred not satisfy conditions (1) and (2) in paragraph (a) of this
eighty (180) monthly contributions, prior to his disability: Provided, section but has rendered at least three (3) years service at
further, That if at the time of disability, he was in the service and has the time of his disability, he shall be advanced the cash
paid a total of at least one hundred eighty (180) monthly payment equivalent to one hundred percent (100%) of his
contributions, in addition to the monthly income benefit, he shall average monthly compensation for each year of service he
receive a cash payment equivalent to eighteen (18) times his basic paid contributions, but not less than Twelve Thousand
monthly pension: Provided, finally, That a member cannot enjoy the pesos (P12,000) which should have been his separation
monthly income benefit for permanent disability and the old-age benefit.
retirement simultaneously.
Q: What are the instances when the disability benefit is
(b) If a member who suffers permanent total disability does not suspended?
satisfy conditions (1) and (2) in paragraph (a) of this section but has 1. he is reemployed or
rendered at least three (3) years service at the time of his disability, 2. he recovers from disability as determined by the GSIS,
he shall be advanced the cash payment equivalent to one hundred whose decision shall be final and binding; or
percent (100%) of his average monthly compensation for each year 3. he fails to present himself for medical examination when
of service he paid contributions, but not less than Twelve Thousand required by the GSIS.
pesos (P12,000) which should have been his separation benefit.
SECTION 17. Permanent Partial Disability Benefits. (a) If the
(c) Unless the member has reached the minimum retirement age, disability is partial, he shall receive a cash payment in accordance
disability benefit shall be suspended when: with a schedule of disabilities to be prescribed by the GSIS: Provided,
That he satisfies either conditions (1) or (2) of Section 16(a);
(1) he is reemployed or
b) The following disabilities shall be deemed permanent and partial:
(2) he recovers from disability as determined by the GSIS,
whose decision shall be final and binding; or (1) complete and permanent loss of the use of:

(3) he fails to present himself for medical examination (i) any finger
when required by the GSIS.
(ii) any toe
(d) The following disabilities shall be deemed total and permanent:
Facultad de Derecho Civil 16
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
(iii) one arm
PENSION
(iv) one hand
Q: How much is the basic monthly pension?
(v) one foot
A: SEC. 9. Computation of the Basic Monthly Pension. - (a) The basic
(vi) one leg monthly pension is equal to:

(vii) one or both ears 1) thirty-seven and one-half percent (37.5%) of the revalued average
monthly compensation; plus
(viii) hearing of one or both ears
2) two and one-half percent (2.5%) of said revalued average monthly
(ix) sight of one eye compensation for each year of service in excess of (15) years:
Provided, That the basic monthly pension shall not exceed ninety
(2) such other cases as may be determined by the GSIS. percent (90%) of the average monthly compensation.

Q: When is an employee entitled to temporary total disability (b) The basic monthly pension may be adjusted upon the
benefit? recommendation of the President and General Manager of the GSIS
and approved by the President of the Philippines in accordance with
A: A member who suffers temporary total disability for reasons not the rules and regulations prescribed by the GSIS: Provided, however,
due to any of the conditions enumerated in Section 15 hereof shall that the basic monthly pension shall not be less than One thousand
be entitled to seventy-five percent (75%) of his current daily and three hundred pesos (P1,300.00): Provided, further, that the
compensation for each day or fraction thereof of temporary basic monthly pension for those who have rendered at least twenty
disability benefit not exceeding one hundred twenty (120) days in (20) years of service after the effectivity of this Act shall not be less
one calendar year after exhausting all his sick leave credits and than Two thousand four hundred pesos (P2,400.00) a month.
collective bargaining agreement sick leave benefits, if any, but not
earlier than the fourth day of his temporary total disability. Q: What is average monthly compensation?

NOTE: The temporary total disability benefit shall in no case be less A: Average Monthly Compensation (AMC)- The quotient arrived at
than Seventy pesos (P70.00) a day. after dividing the aggregate compensation received by the member
during his last thirty-six (36) months of service preceding his
The notices required of the member and the employer, the mode of separation/retirement/ disability/death by thirty-six (36), or by the
payment, and the other requirements for entitlement to temporary number of months he received such compensation if he has less
total disability benefits shall be provided in the rules and regulations than thirty-six (36) months of service: Provided, That the average
to be prescribed by the GSIS. monthly compensation shall in no case exceed the amount and rate
as may be respectively set by the Board under the rules and
Q: What are the requisites for the availment? regulations implementing this Act as determined by the actuary of
the GSIS: Provided, further, That initially the average monthly
A: compensation shall not exceed Ten thousand pesos (P10,000.00),
and premium shall be nine percent (9%) and twelve percent (12%)
1. he is in the service at the time of his disability; or for employee and employer covering the AMC limit and below and
2. if separated, he has rendered at least three (3) years of two percent (2%) and twelve percent (12%) for employee and
service and has paid at least six (6) monthly contributions employer covering the compensation above the AMC limit;
in the twelve-month period immediately preceding his
disability. Q: What is the revalued average monthly compensation?

Q: May a member enjoy TDB and sick leave pay simultaneously. A: Revalued average monthly compensation- An amount equal to
one hundred seventy percent (170%) of the first One thousand
A: No. pesos (P1,000.00) of the average monthly compensation plus one
hundred percent (100%) of the average monthly compensation in
Q: What is the rule in case the disability requires more extensive excess of One thousand pesos (P1,000.00);
treatment that lasts beyond one hundred twenty (120) days?
Q: What is lump sum?
A: The payment of the temporary total disability benefit may be
extended by the GSIS but not to exceed a total of two hundred forty A: It is the basic monthly pension multiplied by 60.
(240) days.
Q: What is compensation?
Q: What is the rule in case of non-scheduled disability?
A: Compensation- The basic pay or salary received by an employee,
A: For injuries or illnesses resulting in a disability not listed in the pursuant to his election/appointment, excluding per diems,
schedule of partial/total disability, as provided herein, the GSIS shall bonuses, overtime pay, honoraria, allowances and any other
determine the nature of the disability and the corresponding emoluments received in addition to the basic pay which are not
benefits therefor. integrated into the basic pay under existing laws.

Facultad de Derecho Civil 17


UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
Q: When is retirement compulsory? The right under Section 11, par. (b) is open to all employees similarly
situated, so it does not offend the constitutional guarantee of equal
A: GR: Retirement shall be compulsory for an EE at 65 years of age protection of the law. There is nothing absurd or inequitable in
with at least 15 years of service; provided that if he has less than 15 rewarding an employee for completion of the 15-year service
years of service, he shall be allowed to continue in the service to beyond the retirement age. If he would be better off than the one
complete the 15 years. who has served for 14 years but who is separated from the service
at the age of 64, it would be only just and proper as he would have
XPN: Unless the service is extended by the appropriate authorities. worked for the whole period of 15 years as required by law for
entitlement of the old-age pension. Indeed, a longer service should
NOTES: merit a greater reward. Besides, his entitlement to the old-age
pension is conditioned upon such completion. Thus, if the service is
a. Sec. 11 of PD.1146, does not limit the extension of service not completed due to death or incapacity, he would be entitled to
to only one year; the benefit under Section 12, par. (b), i.e. cash equivalent to 100% of
b. A statute creating a pension or establishing a retirement his average monthly compensation for every year of service.
plan, being remedial in character, should be liberally
construed and administered in the favor of the persons Rabor v. CSC (1995)
benefited thereby.
Cena laid heavy stress on the interest of retirees or would be
Q: What is the reason for the compulsory retirement of retirees, something that is, in itself, quite appropriate. At the same
government EEs? time, however, we are bound to note that there should be
countervailing stress on the interests of the employer agency and of
A: other government employees as a whole. The results flowing from
the striking down of the limitation established in Civil Service
a. Public policy which aims to maintain efficiency in the Memorandum Circular No. 27 may well be "absurd and inequitable,"
government service; and as suggested by Mme. Justice Grio-Aquino in her dissenting
b. give to the retiree the opportunity to enjoy during opinion. An employee who has rendered only three (3) years of
remainder of their lives the recompense for their long government service at age sixty-five (65) can have his service
service and devotion to the government, in the form of a extended for twelve (12) years and finally retire at the age of
comparatively easier life, freed from the rigors of civil seventy-seven (77). This reduces the significance of the general
service discipline and the exacting demands that the principle of compulsory retirement at age sixty-five (65) very close to
nature of their work and their relations with their the vanishing point.
superiors as well as the public would impose upon them.
The very real difficulties posed by the Cena doctrine for rational
Q: If a government EE is separated upon reaching the age of 60 personnel administration and management in the Civil Service, are
years but has rendered only 5 years of service, is he entitled to any aggravated when Cena is considered together with the case of
benefit? Toledo v. Civil Service Commission. 25 Toledo involved the
provisions of Rule III, Section 22, of the Civil Service Rules on
A: Yes, he is entitled to separation benefits. Personnel Action and Policies (CSRPAP) which prohibited the
appointment of persons fifty-seven (57) years old or above in
SEC. 11 (b) Unless the service is extended by appropriate authorities, government service without prior approval of the Civil Service
retirement shall be compulsory for an employee of sixty-five (65) Commission. Civil Service Memorandum Circular No. 5, Series of
years of age with at least fifteen (15) years of service: Provided, That 1983 provided that a person fifty-seven (57) years of age may be
if he has less than fifteen (15) years of service, he may be allowed to appointed to the Civil Service provided that the exigencies of the
continue in the service in accordance with existing civil service rules government service so required and provided that the appointee
and regulations. possesses special qualifications not possessed by other officers or
employees in the Civil Service and that the vacancy cannot be filled
Cena v. CSC (1992) by promotion of qualified officers or employees of the Civil Service.
Petitioner Toledo was appointed Manager of the Education and
Section 12 par. (b) of P.D. 1146 does not apply to the case of herein Information Division of the Commission on Elections when he was
Cena, because he opted to continue in the service to complete the almost fifty-nine (59) years old. No authority for such appointment
15-year service requirement pursuant to Section 11 par. (b) of P.D. had been obtained either from the President of the Philippines or
1146. The completion of the 15-year service requirement under from the Civil Service Commission and the Commission found that
Section 11 par. (b) partakes the nature of a privilege given to an the other conditions laid down in Section 22 of Rule III, CSRPAP, did
employee who has reached the compulsory retirement age of 65 not exist. The Court nevertheless struck down Section 22, Rule III on
years, but has less than 15 years of service. If said employee opted the same exceedingly restrictive view of permissible administrative
to avail of said privilege, he is entitled to the benefits of the old-age legislation that Cena relied on. 26
pension. On the other hand, if the said employee opted to retire
upon reaching the compulsory retirement age of 65 years although When one combines the doctrine of Toledo with the ruling in Cena,
he has less than 15 years of service, he is entitled to the benefits very strange results follow. Under these combined doctrines, a
provided for under Section 12 of P.D. 1146 i.e. a cash equivalent to person sixty-four (64) years of age may be appointed to the
100% of his average monthly compensation for every year of government service and one (1) year later may demand extension of
service. his service for the next fourteen (14) years; he would retire at age
seventy-nine (79). The net effect is thus that the general statutory
policy of compulsory retirement at sixty-five (65) years is heavily
Facultad de Derecho Civil 18
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
eroded and effectively becomes unenforceable. That general 6 or more years but less than 9 years 4 months
statutory policy may be seen to embody the notion that there
should be a certain minimum turn-over in the government service 9 or more years but less than 11 years 5 months
and that opportunities for government service should be distributed
as broadly as possible, specially to younger people, considering that 11 or more years but less than 15 years 6 months
the bulk of our population is below thirty (30) years of age. That
same general policy also reflects the life expectancy of our people "The first payment shall be equivalent to two (2) monthly benefits. A
which is still significantly lower than the life expectancy of, e.g., seven-day (7) waiting period shall be imposed on succeeding
people in Northern and Western Europe, North America and Japan. monthly payments.
Q: What is the law governing the retirement of justices, judges and
other members of the judiciary and members of the AFP? "All accumulated unemployment benefits paid to the employee
during his entire membership with the GSIS shall be deducted from
A: The retirement of justices, judges and other members of the voluntary separation benefits.
judiciary is governed by RA No. 910 while those of members of the
AFP by RA No. 340. "The GSIS shall prescribe the detailed guidelines in the
operationalization of this section in the rules and regulations
Q: May government EEs elect to retire under CA No. 186? implementing this Act.

A: EEs who were already in the government service on May 31, 1977 INTERPRETATION OF RETIREMENT LAWS
took effect have the option to retire under the said decree.
Q: How are retirement laws interpreted?
Q: May government agency establish a supplementary retirement
plan for its EEs? A: They are liberally interpreted in favor of the retiree because their
intention is to provide for his sustenance and hopefully comfort,
A: when he no longer has the stamina to continue earning his
livelihood.
GR: No. RA No. 4968 or the Teves Retirement Law prohibits the
establishment of supplementary or pension plans by any Q: What body has the original and exclusive jurisdiction to
government agency, office, instrumentality or GOCCs. determine whether a member is qualified or not to avail of old-age
pension benefit under PD. 1146?
RATIO: This is to prevent the undue and iniquitous proliferation of
such plans. A: The GSIS. Its determination is based on its computation of a
members years of service with the government. The computation of
XPN: RA No. 8282 authorizes SSS to create a provident fund for its a members service includes not only full time but also part time and
EEs. Similarly, RA 8291 authorizes the GSIS to design an early other services with compensation as may be included under the
retirement plan and/or other financial assistance for the purpose of rules and regulation prescribed by the system. Sick leaves and part-
retirement of its personnel. time services are included.

Q: Is the pension of a public servant a gratuity? Q: What is the basis of computation of the retirement benefits of a
government EEs?
A: No, it is another form of deferred compensation for services
performed and his right to it commences to vest upon his entry into A: Sec. 9. Highest basic Salary Rate. The compensation of salary or
the retirement system and becomes an enforceable obligation in pay which may be used in computing the retirement benefits shall
court upon fulfillment of all conditions under which it is paid. be limited to the highest basic salary rate actually received by an
official/employee as fixed by law and/or indicated in his duly
UNEMPLOYMENT OR INVOLUNTARY SEPARATION BENEFITS approved appointment. This shall include salary adjustments duly
authorized and implemented by presidential issuance(s) circular(s),
Q: What is unemployment or involuntary separation benefits? additional basic compensation or salary indicated in an appointment
duly approved as an exception to the prohibition on additional or
A: Sec. 12 of PD 1146- Unemployment benefits in the form of double compensation, merit increases, and compensation for
monthly cash payments equivalent to fifty percent (50%) of the substitutionary services or in an acting capacity. For this purpose, all
average monthly compensation shall be paid to a permanent other compensations and/or fringe benefits such as per diems,
employee who is involuntarily separated from the service due to the allowances, bonuses, overtime pay, honoraria, hazard pay, flying
abolition of his office or position usually resulting from time fees, consultancy or contractual fees, or fees in correcting
reorganization: Provided, That he has been paying integrated and/or releasing examination papers shall not be considered in the
contributions for at least one (1) year prior to separation. computation of the retirement benefits of an official-employee. Sec.
Unemployment benefits shall be paid in accordance with the 9 of EO No. 966.
following schedules:
SURVIVORSHIP BENEFITS
"Contributions Made Benefit Duration
Q: Who are entitled to survivorship benefits?
1 year but less than 3 years 2 months
3 or more years but less than 6 years 3 months A: Upon the death of a member or pensioner, his beneficiaries shall
be entitled to survivorship benefits. It shall consist of:
Facultad de Derecho Civil 19
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________

1. basic survivorship pension-50 % of the basic monthly 1. Primary- legal dependent spouse until he/she remarries
pension; and the dependent children;
2. dependents pension not exceeding 50% of the basic 2. Secondary- dependent parents and subject to the
monthly pension, or a cash payment. restrictions on dependent children, legitimate
descendants.
Q: What are the benefits under the survivorship pension?
Q: Under what conditions are the primary beneficiaries entitled to
A: The survivorship pension shall consist of: basic monthly pension?

1. the basic survivorship pension which is fifty percent (50%) A: SEC. 21. Death of a Member. - (a) Upon the death of a member,
of the basic monthly pension; and the primary beneficiaries shall be entitled to:

2. the dependent children's pension not exceeding fifty (1) survivorship pension: Provided, That the deceased:
percent (50%) of the basic monthly pension.
(i) was in the service at the time of his death; or
Q: Upon death of a member, what are the benefits that are
available to the primary beneficiaries? (ii) if separated from the service, has at least three (3)
years of service at the time of his death and has paid
A: thirty-six (36) monthly contributions within the five-year
period immediately preceding his death; or has paid a total
1. survivorship pension: of at least one hundred eighty (180) monthly contributions
prior to his death; or
a. was in the service at the time of his death; or
b. if separated from the service, has at least three (2) the survivorship pension plus a cash payment equivalent to one
(3) years of service at the time of his death and hundred percent (100%) of his average monthly compensation for
has paid thirty-six (36) monthly contributions every year of service: Provided, That the deceased was in the service
within the five-year period immediately at the time of his death with at least three (3) years of service; or
preceding his death; or has paid a total of at
least one hundred eighty (180) monthly (3) a cash payment equivalent to one hundred percent (100%) of his
contributions prior to his death; or average monthly compensation for each year of service he paid
2. the survivorship pension plus a cash payment equivalent contributions, but not less than Twelve thousand pesos
to one hundred percent (100%) of his average monthly (P12,000.00): Provided, That the deceased has rendered at least
compensation for every year of service: Provided, That three (3) years of service prior to his death but does not qualify for
the deceased was in the service at the time of his death the benefits under item (1) or (2) of this paragraph.
with at least three (3) years of service; or
3. a cash payment equivalent to one hundred percent (100%) Q: After the end of guaranteed periods of 5 years or thirty months,
of his average monthly compensation for each year of are the beneficiaries still entitled to any survivorship benefits?
service he paid contributions, but not less than Twelve
thousand pesos (P12,000.00): Provided, That the A: Yes. The survivorship pension shall be paid as follows:
deceased has rendered at least three (3) years of service
prior to his death but does not qualify for the benefits (1) when the dependent spouse is the only survivor, he/she shall
under the item (1) or (2) of this paragraph. receive the basic survivorship pension for life or until he/she
remarries;
BENEFICIARIES
(2) when only dependent children are the survivors, they shall be
Q: Who are the dependents. entitled to the basic survivorship pension for as long as they are
qualified, plus the dependent childrens pension equivalent to ten
A: percent (10%) of the basic monthly pension for every dependent
child not exceeding five (5), counted from the youngest and without
1. the legitimate spouse dependent for support upon the substitution;
member or pensioner;
2. the legitimate, legitimated, legally adopted child, including (3) when the survivors are the dependent spouse and the dependent
the illegitimate child, who is unmarried, not gainfully children, the dependent spouse shall receive the basic survivorship
employed, not over the age of majority, or is over the age pension for life or until he/she remarries, and the dependent
of majority but incapacitated and incapable of self-support children shall receive the dependent childrens pension mentioned
due to a mental or physical defect acquired prior to age of in the immediately preceding paragraph (2) hereof.
majority; and
3. the parents dependent upon the member for support; Q: When are secondary beneficiaries entitled to survivorship
benefits?
Q: Who are the beneficiaries of a deceased covered EE?
A: (c) In the absence of primary beneficiaries, the secondary
A: beneficiaries shall be entitled to:

Facultad de Derecho Civil 20


UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
(1) the cash payment equivalent to one hundred percent (100%) of
his average monthly compensation for each year of service he paid Computation of the Basic monthly pension
contributions, but not less than Twelve thousand pesos
(P12,000.00): Provided, That the member is in the service at the NOTE: The basic monthly pension is equal to:
time of his death and has at least three (3) years of service; or
(2) in the absence of secondary beneficiaries, the benefits under this 1. thirty-seven and one-half percent (37.5%) of the revalued
paragraph shall be paid to his legal heirs. average monthly compensation; plus
2. two and one-half percent (2.5%) of said revalued average
Q: What are the benefits that the beneficiaries are entitled to monthly compensation for each year of service in excess of
receive upon the death of the pensioner? fifteen (15) years: Provided, That the basic monthly
pension shall not exceed ninety percent (90%) of the
A: Upon the death of an old-age pensioner or a member receiving average monthly compensation.
the monthly income benefit for permanent disability, the qualified
beneficiaries shall be entitled to the survivorship pension defined in NOTE: Provided, however, That the basic monthly pension shall not
Section 20 of this Act, subject to the provisions of paragraph (b) of be less than P1,300.00. Provided, further, That the basic monthly
Section 21 hereof. When the pensioner dies within the period pension for those who have rendered at least twenty (20) years of
covered by the lump sum, the survivorship pension shall be paid service after the effectivity of this Act shall not be less than
only after the expiration of the said period. P2,400.00 a month.

Q: What is compensation? Q: How do you compute the years of service?

A: The basic pay or salary received by an employee, pursuant to his A: The computation of service for the purpose of determining the
election/appointment, excluding per diems, bonuses, overtime pay, amount of benefits payable under this Act shall be from the date of
honoraria, allowances and any other emoluments received in original appointment/election, including periods of service at
addition to the basic pay which are not integrated into the basic pay different times under one or more employers, those performed
under existing laws. overseas under the authority of the Republic of the Philippines, and
those that may be prescribed by the GSIS in coordination with the
Q: What is contribution? Civil Service Commission.

A:The amount payable to the GSIS by the member and the employer NOTE: All service credited for retirement, resignation or separation
in accordance with Section 5 of this Act for which corresponding benefits have been awarded under this Act
or other laws shall be excluded in the computation of service in case
Q: What is lump sum? of reinstatement in the service of an employer and subsequent
retirement or separation which is compensable under this Act.
A: The basic monthly pension multiplied by sixty (60).
Q: Is the allowance for expenses incident to the discharge of an
COMPULSORY MEMBERSHIP office considered as salary of office?

Q: Describe the nature of membership in the GSIS? A: No.


A:
Q: What do you mean by "per diem"?
GR: Membership in the GSIS shall be compulsory for all employees
receiving compensation who have not reached the compulsory A: It is a daily allowance given for each day an office or employee of
retirement age, irrespective of employment status government is away from his home base. It is a reimbursement for
extra expenses incurred by the public official in the performance of
XPN: Members of the Armed Forces of the Philippines and the his duties. It intends to cover the cost of lodging and subsistence of
Philippine National Police, subject to the condition that they must officers and employees when the latter are on duty outside of their
settle first their financial obligation with the GSIS, and contractuals permanent station.
who have no employer and employee relationship witlh the agencies
they serve. However, a per diem coulda also rightfully be consodered as a
compensation or remuneration attached to an office.
Q: What are the benefits of covered employees?
SEPARATION BENEFITS
A: Except for the members of the judiciary and constitutional
commissions who shall have life insurance only, all members of the Q: What will the separation benefits consist of?
GSIS shall have life insurance, retirement, and all other social
security protection such as disability, survivorship, separation, and A: The separation benefit shall consist of:
unemployment benefits.
1. a cash payment equivalent to one hundred percent (100%)
Q: What is the effect of separation from service? of his average monthly compensation for each year of
service he paid contributions, but not less than Twelve
A: A member separated from the service shall continue to be a thousand pesos (P12,000) payable upon reaching sixty (60)
member, and shall be entitled to whatever benefits he has qualified years of age or upon separation, whichever comes later:
to in the event of any contingency compensable under this Act. Provided, That the member resigns or separates from the
Facultad de Derecho Civil 21
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
service after he has rendered at least three (3) years of becomes an enforceable obligation in court upon fulfillment of all
service but less than fifteen (15) years; or conditions under which it is to be paid.
2. A cash payment equivalent to eighteen (18) times his basic
monthly pension payable at the time of resignation or Q: How do you enterpret retirement laws?
separation, plus an old-age pension benefit equal to the
basic monthly pension payable monthly for life upon A: They are liberally construed in favor of the retiree because their
reaching the age of sixty (60): Provided, That the member intention is to provide for his sustenance and hopefully even
resigns or separates from the service after he has comfort, when he no longer has the stamina to continue earning his
rendered at least fifteen (15) years of service and is below livelihood. The liberal approach aims to achieve the humanitarian
sixty (60) years of age at the time of resignation or purpose of the law in order that the efficiency, security, and well-
separation. being of government employees may be enhanced.

Q: Discuss the "unemployment or involuntary benefits"? Q: Which agency has the original and exclusive jurisdiction to
determine whether a member is qualified or not to avail of the old-
A: Unemployment benefits in the form of monthly cash payments age pension benefit under P.D. 1146?
equivalent to fifty percent (50%) of the average monthly
compensation shall be paid to a permanent employee who is A: GSIS.
involuntarily separated from the service due to the abolition of his
office or position usually resulting from reorganization. Q: What is an "honorarium"?

Q: What is the reason for the "compulsory retirement"? A: It is something not given as a matter of obligation but an
appreciation for services rendered, a voluntary donation in
A: It is founded on public policy which aims to maintain efficiency in consideration of services which admit of no compenasation in
the government service and at the same time give to the retiring money.
public servants the opportunity to enjoy during the remainder of
their lives the recompense for their long service and devotion to the Q: Distinguish appointment and designation.
government.
A: Appointment is the selection by the proper authortity of an
Q: Discuss the so-called "Cena Doctrine" ruled by the SC in 1992. individual who is to exercise the functions of a given office
What is its implication? destination, on the other hand, connotes merely the imposition of
additional duties, usually by law, upon a person already in public
A: According to it, an employee who has rendered only 3 years of service by virtue of an earlier appointment or election.
government service at the age of 65 can have his service extended However, it may happen that the term appointment was used in the
for 12 years and finally retire at the age of 77. This reduces the general term to include the term "designation."
significance of the general principle of compulsory retirement at the
age of 65 very close to vanishing point. RETIREMENT BENEFITS

Q: Discuss the importance of "Toledo Doctrine" (1991). NOTE: Retirement benefit shall be:

A: The provisions of Civil Service Rules on Personnel Action and 1. the lump sum payment as defined in this Act payable at
Policies (CSRPAP) prohibited the appointment of persons 57 years the time of retirement plus an old-age pension benefit
old or above in the government service without prior approval of the equal to the basic monthly pension payable monthly for
CSC. Otherwise, the appointee possesses special qualifications not life, starting upon expiration of the five-year (5)
possessed by other officers or employees in the Civil Service and the guaranteed period covered by the lump sum; or cash
exigencies of the government sevice so required. Toledo, almost 59 payment equivalent to eighteen (18) months of his basic
at that time was appointed without any authority for such monthly pension plus monthly pension for life payable
appointment. The SC struck down the said provision. immediately with no five-year (5) guarantee.
2. Unless the service is extended by appropriate authorities,
NOTE: The head of government agency concerned is vested with retirement shall be compulsory for an employee at sixty-
discretionary authority to allow or disallow extension of the service five (65) years of age with at least fifteen (15) years of
of an official or employee who has reached 65 years of age without service: Provided, That if he has less than fifteen (15) years
completing 15 years of government service. of service, he may be allowed to continue in the service in
accordance with existing civil service rules and regulations.
Under the present rule, retirement is compulsory for a member who
has reached the age of 65 years with at least 15 years of service. If Q: What are the conditions for entitlement for this separation
he has less than 15 years of service, he shall be allowed to continue benefits?
in the service to complete the 15 years to avail of the old-age
pension benefit. A:
1. he has rendered at least fifteen (15) years of service;
Q: Is pension a gratuity for a public servant? 2. he is at least sixty (60) years of age at the time of
retirement; and
A: No. It is rather a form of deferred compensation for services 3. he is not receiving a monthly pension benefit from
performed and his right to it commences to vest upon his entry into permanent total disability.
the retirement to vest upon his entry into the retirement system and
Facultad de Derecho Civil 22
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
Q: Is there presumption of sham marriages? deemed renewed on the day following the maturity
or expiry date of their insurance;
A: None. The present GSIS law does not presume that marriages c. for those without any life insurance as of the
contracted within 3 years before the retirement or death of a effectivity of this Act, their insurance shall take
member are sham marriages contracted to avail of survivorship effect following said effectivity.
benefits. The law does not also automatically forfeit the survivorship
pension of the surviving spouse who contracted marriage to a GSIS Optional life insurance
member within 3 years before the member's retirement death.
Q: When may a member obtain optional life insurance coverage?
NOTE: The law aknowledges that whether the surviving spouse
contracted the marriage mainly to receive survivorship benefits is a A: Sec. 26- A member may apply for insurance and/or pre-need
matter of evidence. coverage embracing:

FUNERAL BENEFIT 1. life,


2. health,
Q: Describe the funeral benefit and state to whom it is payable. 3. hospitalization,
4. education,
A: The amount of the funeral benefits shall be determined and 5. memorial plans, and
specified by the GSIS in the rules and regulations but shall not be 6. such other plans as may be designed by the GSIS, for
less than Twelve thousand pesos (P12,000.00): Provided, That it himself and/or his dependents.
shall be increased to at least Eighteen thousand pesos (P18,000.00)
after five (5) years and shall be paid upon the death of: a. Any employer may likewise apply for group insurance
coverage for its employees.
(a) an active member as defined under Section 2 (e) of this Act; or

(b) a member who has been separated from the service, but who Q: May a member enjoy the benefits provided for in the GSIS Act
may be entitled to future benefit pursuant to Section 4 of this Act; or simultaneously with similar benefits provided for the same
category?
(c) a pensioner, as defined in Section 2 (o) of this Act; or
A: Exclusiveness of Benefits. - Whenever other laws provide similar
(d) a retiree who at the time of his retirement was of pensionable benefits for the same contingencies covered by this Act, the
age under this Act but who opted to retire under Republic Act No. member who qualifies to the benefits shall have the option to
1616. choose which benefits will be paid to him. However, if the benefits
provided by the law chosen are less than the benefits provided
LIFE INSURANCE under this Act, the GSIS shall pay only the difference.

Q: Give the classes of life insurance coverages under the GSIS Act. Q: In case of life insurance, who may be the beneficiary?

A: A: The beneficiary of a life insurance policy may not necessarily be


an heir of the insured. The insured in the life insurance may
1. Compulsory designate any person as beneficiary unless disqualified to be so
2. Optional under the provisions of the Civil Code.

NOTE: The plans can be endowment or ordinary life. Q: What if there was no beneficiary named in the life insurance
policy?
Compulsory life insurance
A: The proceeds of the insurance will go to the estate of the insured.
Q: When does compulsory life insurance coverage take effect?
Q: What are the rules as to who will get the retirement insurance
A: benefits?

SEC. 24. Compulsory Life Insurance. - All employees except for: A:

1. Members of the Armed Forces of the Philippines (AFP) 1. If the employee reaches the age of retirement, he gets the
and the retirement benefits even to the exclusion of the
2. Philippine National Police (PNP) shall, under such terms beneficiary or beneficiaries named in his application for
and conditions as may be promulgated by the GSIS, be retirement insurance.
compulsorily covered with life insurance 2. The beneficiary of the retirement insurance can only claim
a. for those employed after the effectivity of this Act, the proceeds of the life insurance if the employee dies
their insurance shall take effect on the date of their before retirement.
employment; 3. If the employee failed or overlooked to state the
b. for those whose insurance will mature after the beneficiary of his retirement insurance, the retirement
effectivity of this Act, their insurance shall be benefits will accrue to his estate and will be given to his

Facultad de Derecho Civil 23


UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
legal heirs in accordance with law, as in the case of life d. The appeal shall be without prejudice to the special civil
insurance. action of certiorari when proper.

Berdin Vda. De Consuegra, et al. vs. GSIS, et al. Q: What is the rule as to the Execution of Decision?

Since the first marriage of the defendant has not been dissolved or A: When no appeal is perfected and there is no order to stay by the
declared void the conjugal partnership established by that marriage Board, by the Court of Appeals or by the Supreme Court, any
has not ceased. Although the second wife can be presumed to be decision or award of the Board shall be enforced and executed in
void ab initio as it was celebrated while the first marriage was still the same manner as decisions of the Regional Trial Court.
subsisting, still there is a need for judicial declaration of such nullity.
And inasmuch as the conjugal partnership formed by the second NOTE: The Board shall have the power to issue to the city or
marriage was dissolved before judicial declaration of its nullity, the provincial sheriff or its appointed sheriff such writs of execution as
only just and equitable solution in this case would be to recognize may be necessary for the enforcement of such decision or award.
the right of the second wife to her share of in the property
acquired by her and her husband, and consider the other half as Q: What is the effect of non-compliance?
pertaining to the conjugal partnership of the first marriage.
A: Any person who shall fail or refuse to comply with such decision,
NOTE: The significance of the above ruling is that with respect to the award, writ or process after being required to do so shall, upon
determination of the partys marital status, the courts take application by the GSIS, be punished for contempt.
precedence over administrative agencies. Since the GSIS is not a
judicial forum, it was not the proper forum to resolve the issue of
validity of marriage. In the same manner, the SSS cannot resolve the EMPLOYEES COMPENSATION PROGRAM AND INSURANCE FUND
issue.

Q: When does the claims for benefits under this Act prescribe?
Q: What is employers compensation program?
A: Claims for benefits under this Act except for life and retirement
A: It is the program provided under Articles 172 to 214 of the Labor
shall prescribe after four (4) years from the date of contingency.
Code whereby a fund known as the State Insurance Fund is
established through premium payments exacted from employers
Q: Which agency has the original and exclusive jurisdiction to settle
and from which employees and their dependents in the event of
disputes arising from any disputes arising from this Act?
work-connected disability or death, may promptly secure adequate
income benefit, and medical or related benefits.
A: The GSIS shall have original and exclusive jurisdiction to settle any
disputes arising under this Act and any other laws administered by
Characteristics of the Employees Compensation Program
the GSIS.
Q: What are the characteristics of the Employees Compensation
NOTE: The Board may designate any member of the Board, or
Program?
official of the GSIS who is a lawyer:
A:
a. to act as hearing officer to receive evidence, make findings
of fact and
1. Tax exempt
b. submit recommendations, together with all documentary
2. Designed to ensure promptitude in the award to
and testimonial evidence to the Board within thirty (30)
employees and their dependents of adequate income and
working days from the time the parties have closed their
medical or related benefits
respective evidence and filed their last pleading.
3. Funded monthly contributions of all covered employers
c. The Board shall decide the case within thirty (30) days
4. Compulsory on all employers and their employees not
from the receipt of the hearing officers findings and
over 60 years of age
recommendations.
5. Benefits of which are exclusive and in place of all other
d. The cases heard directly by the Board shall be decided
liabilities of the employer to the employee, his dependents
within thirty (30) working days from the time they are
or anyone otherwise entitled to receive damages on behalf
submitted by the parties for decision.
of the employee or his dependents
6. Having its own adjudication machinery with original
Q: What is the rule in case of appeal?
exclusive jurisdiction to settle any dispute with respect to:
a. Coverage
A:
b. Entitlement to benefits
a. Appeals from any decision or award of the Board shall be
c. Collection and payment of contributions
governed by Rules 43 and 45 of the 1997 Rules of Civil
d. Penalties thereon
Procedure.
b. The appeal shall take precedence over all other cases
Q: Who are subject to coverage under the employees
except criminal cases when the penalty of life
compensation program?
imprisonment or death or reclusion perpetua is imposable.
c. The appeal shall not stay the execution of the order or
A: Employers and their employees not over 60 years of age are
award unless ordered by the Board, by the Court of
subject to compulsory coverage under this program
Appeals or by the Supreme Court and
Facultad de Derecho Civil 24
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
Every plant of the same industry is alike constantly
EMPLOYER exposed to the danger of contracting a particular
a. Public sector covered by GSIS comprising the: disease.
1. National Government
2. GOCCs Q: May an illness not listed by the ECC as an occupational disease
3. Philippine Tuberculosis Socirty be compensable?
4. PNRC
5. Philippine Veterans Bank A: Yes, but it must be established that the risk of contracting the
b. Private sector covered by SSS same is increased by the working conditions.
EMPLOYEE
a. Public sector comprising the employed workers who are Examples:
covered by GSIS including:
1. AFP a. rheumatoid arthritis and pneumonitis for teachers
2. Elective officials b. tuberculosis for persons nursing a person suffering from
3. Any person employed as casual, emergency, such illness
temporary-substitute or contractual c. anemia secondary to gastric malignancy where the
b. Private sector compromising the employed workers who deceased was exposed to heat and elements which
are covered by SSS ultimately weakened him
d. cancer for librarian who was exposed to dusty books and
Q: When does compulsory coverage take effect? other deleterious substances
e. senile cataract for construction workers exposed to heat of
A: the sun

EMPLOYER EMPLOYEE Theory of increased risk


On the first day of operation On the first day of employment
Q: What is the theory of increased risk?
Injury and sickness
A: It includes any illness caused by employment, subject to proof
Q: Define: that the risk of contracting the same is increased by working
a. Injury conditions.
b. Sickness
c. Occupational disease Q: State the quantum of proof for the compensation.

Injury Any harmful change in the human organization from A: Substantial proof of work connection and not a direct causal
any incident arising out of and in the course of relation
employment
Sickness a. Any illness definitely accepted as an NOTE: Proof of actual cause of the ailment is not necessary. There
occupational disease should, however, be proof that shows reasonable connection
b. listed by the commission or between:
c. any illness caused by employment, subject to a. the work of the deceased
proof that the risk of contracting the same is b. cause of his death
increased by working conditions.
The proof must be substantial and real and not merely apparent; for
NOTE: The Employees Compensation Commission the duty to prove work-causation or work aggravation imposed by
is empowered to determine and approve existing law is real, not merely apparel.
occupational diseases and work-related illness that
may be considered compensable based on peculiar Q: Is direct causal relation required?
hazards of employment
Occupational a. One which results from the nature of A: No. It is enough that the hypothesis on which the workmens
claim is based is probable
disease employment, and
b. by nature is meant conditions to which all
NOTE: Medical opinion to the contrary can be disregarded where
employees of a class are subject and
c. which produce the disease as a natural there is some basis in the facts for inferring work-connection
incident of a particular occupation
d. attach to that occupation a hazard which Q: What is the test of evidence of the relation of the disease?
distinguishes it from the usual run of
A: It is probability and not certainty.
occupations
e. is in excess of the hazard attending the
Q: Is cancer an occupational disease?
employment in general
A: Yes, in certain cases.
NOTE: Those things which science and industry have
not yet learned how to eliminate.
NOTE: Although rectal cancer is not listed as an occupational disease
there is ample proof that the risk of contracting the same was
Facultad de Derecho Civil 25
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
increased, if not caused, by the working conditions prevailing in the NOTE: Coronary artery disease is not compensable where the
employers premises. employee was a chronic smoker.

Q: What may be substantial proofs? Possible defenses against the claim

A: Q: What defenses may be interposed by the State Insurance Fund


against a claim for compensation?
1. medical history
2. record A:
3. physicians report
1. The injury is not work-connected or the sickness was not
Q: Is Hansens disease or leprosy compensable? occupational
2. Disability or death was occasioned by his:
A: Yes, provided the illness is traceable to employment. a. Intoxication
b. Willful intention to injure or kill him
Q: Is the claimant required to present proof of reasonable causal c. Notorious negligence
relation or aggravation where the cause or origin of the disease is
still unknown? 3. No notice of injury, sickness or death was given to the
employer
A: Yes. If a disease not intended by law to be compensated are 4. Claim was filed beyond 3 years from the time the cause of
inadvertently included, the integrity of the State Insurance Fund is action accrued.
endangered.
Notorious negligence
NOTE: Compassion for the victims of diseases not covered by law
ignores the need to show a greater concern for the trust fund to Q: What is notorious negligence?
which the tens of millions of workers and their families look for
compensation whenever accidents, disease or death occur. A: It is equivalent to gross negligence. It is something more than
mere carelessness or lack of foresight. It falls under the designation
Q: Is uraterolithiasis (presence of renal stones in the ureter and of evident and manifest negligence.
urine stones) of a chemical laboratory technician compensable?
NOTE: Disobedience to rules or orders or prohibition does not itself
A: Yes. The environment, water, or other fluid intake and the nature constitute notorious negligence.
of the occupation are important factors in the development or
inhibition of the disease. Q: Can the employee recover from the State Insurance Fund and
subsequently recover damages in the criminal cases?
Presumption of compensability no longer applicable
A: No. The liability of the State Insurance Fund shall be exclusive and
Q: Do we still subscribe to the presumption of compensability? in place of all other liabilities of the employer to the employee or his
dependents or anyone otherwise entitled to recover damages on
A: No, however, the present law has not ceased to be a social behalf of the employee or his dependents. This includes the
legislation. The liberality of the law in favor of the working man still subsidiary liability of the employer under the RPC.
prevails.
NOTE: This will not bar recovery from:
Q: When are cardiovascular diseases considered as occupational? a. Revised Administrative Code
b. RA. 1161
A: Cardiovascular diseases are considered as occupational when c. CA 186
contracted under any of the following conditions: d. RA 6111
e. RA 610
a. If the heart disease was known to have been present
during employment there must be proof that an acute The injured employee or his heirs in case of death have a right of
exacerbation clearly precipitated by the unusual strain by selection or choice of action between availing themselves of the
reason of the nature of his work. workers right under the employees compensation laws and suing in
the regular courts under the Civil Code for higher damages. To
b. The strain of work that brings about an acute attack must preclude the filing of an action for damages would be a violation of
be of sufficient severity and must be followed within the constitutional guarantees on social justice and protection to
twenty-four (24) hours by the clinical signs of a cardiac labor.
insult to constitute causal relationship.
Q: In case the injured employee or his heirs fail to recover damages
c. If a person who was apparently asymptomatic before in the civil case, may they claim from the SIF?
subjecting himself to strain at work showed signs and
symptoms of cardiac injury during the performance of his A: Yes. The rationale in awarding compensation under compensation
work and such symptoms and signs persisted, it is laws differs from that in giving damages under the Civil Code. The
reasonable to claim a causal relationship compensation act is based on a theory of compensation distinct from
the existing theories of damages. Compensation is given to mitigate
Facultad de Derecho Civil 26
UNIVERSITY OF SANTO TOMAS
NOTES ON SOCIAL LEGISLATION
Kenneth and King C. Hizon _________________________________________________________________________________________________________________
the harshness and insecurity of industrial life for the workman and A: Yes. The Filipinos working abroad in the service of an employer,
his family. domestic or foreign, who carries on in the Philippines any trade,
business, industry, undertaking or activity of any kind, are covered
NOTE: Hence, an employer is liable whether the negligence exists or by the employees compensation program.
not since the liability is created by law. The employer will be liable as
long as the sickness or injury is work-connected even if the death or Income benefits
injury is not due to the fault of the employer.
Q: Discuss income benefits.
Q: If the injured or his heirs opted to claim and in fact collected
from the SIF, can they still maintain action for damages against the A:
employer?
Injury or sickness 1. Entitled to a daily income benefit
A: No. While perhaps not as profitable, the smaller indemnity resulting in temporary equivalent to 90% of his average daily
obtainable through this remedy is balanced by the claimants being total disability salary credit but in no case less than
relieved of the burden of proving the causal connection between the P10.00 nor more than P90.00,
employers negligence and the resulting injury and of having to 2. nor paid for continuous period longer
establish the extent of the damage suffered; issues that are apt to than 120 days except where such
be troublesome to establish satisfactorily. Having staked on this injury or sickness still requires
remedy, at least until the prior claim is rejected by the medical attendance beyond 120 days
Compensation Commission, the claimant is precluded from pursuing but not exceed 240 days from onset
the alternative remedy. of disability
Injury or sickness 1. The employee shall have, for each
Q: What is the alternative remedy? resulting in month until his death, payment
permanent total during such disability an amount
A: Sue for damages under Art. 1711: disability equivalent to the monthly income
benefit, plus 10% thereof
Civil Code 2. for each dependent but not
exceeding five, beginning with the
ART. 1711: Owners of enterprises and other employers are obliged youngest and without substitution
to pay compensation for the death of or injuries to their laborers, 3. Provided that the monthly income
workmen, mechanics or other employees, even though the event benefit shall be the new amount of
may have been purely accidental or entirely due to a fortuitous the monthly benefit for all covered
cause, if the death or personal injury arose out of and in the course pensioners, effective upon approval
of the employment. The employer is also liable for compensation if of this decree
the employee contracts any illness or disease caused by such 4. The monthly income benefit is
employment or as the result of the nature of the employment. If the guaranteed for 5 years and shall be
mishap was due to the employees own notorious negligence, or suspended if the employee is
voluntary act, or drunkenness, the employer shall not be liable for gainfully employed or recovers from
compensation. When the employees lack of due care contributed to his permanent disability, or fails to
his death or injury, the compensation shall be equitably reduced. present himself for examination at
least once a year upon notice by the
NOTE: The SIF, through the SSS or the GSIS is subrogated to all the System, except as otherwise provided
rights of the beneficiaries against the driver and/or owner of the for in their laws, decrees, order of
vehicle. Thus: letters of instruction.
Injury or sickness 1. The employee shall for each month
Labor Code: resulting in not exceeding the period designated
permanent partial herein paid by the System during
ART. 174. Liability of third party/ies. - (a) When the disability or disability such a disability an income benefit
death is caused by circumstances creating a legal liability against a equivalent to the income benefit for
third party, the disabled employee or the dependents, in case of permanent total disability.
his death, shall be paid by the System under this Title. In case
benefit is paid under this Title, the System shall be subrogated to
the rights of the disabled employee or the dependents, in case of
his death, in accordance with the general law.

(b) Where the System recovers from such third party damages in
excess of those paid or allowed under this Title, such excess shall
be delivered to the disabled employee or other persons entitled
thereto, after deducting the cost of proceedings and expenses of
the System.

Q: If the injury was sustained in a foreign country, can the


employee still recover?

Facultad de Derecho Civil 27


UNIVERSITY OF SANTO TOMAS