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PRESIDENTIAL DECREE NO. 1368
PRESIDENTIAL DECREE NO. 1368
- AMENDING FURTHER CERTAIN PROVISIONS OF TITLE II, BOOK FOUR OF THE
LABOR CODE OF THE PHILIPPINES (PD 442, AS AMENDED)
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WHEREAS,
The prudent administration of the Employees' Compensation Program and
the judicious management of the State Insurance Fund have resulted in
the accumulation of surplus that is sufficient to enable the Employees'
Compensation Commission to enlarge the benefit structure for covered
employees without necessarily requiring additional premium
contributions from employers;chanroblesvirtualawlibrary
WHEREAS, The Employees' Compensation Commission, in pursuance of its
desire to achieve labor justice for victims of work-connected
contingencies, must ensure and maintain adequate and prompt delivery of
social security services in terms of continually upgraded benefits to
keep pace with changing social-economic development; and
WHEREAS, The Government Service Insurance System and the Social
Security System which are the major administering agencies of the
Employees' Compensation Program and the State Insurance Fund under the
umbrella of the Employees' Compensation Commission have instituted
already the upgrading of benefits for non-work-related claims for their
respective members. chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby order and decree that:cralaw:red
Section 1. Paragraphs (k), (l) and (y) of Article
167 of the Labor Code, as amended, are hereby amended further, and
Paragraphs (cc), (dd) and (ee) are added thereto to read as follows:cralaw:red
"Art. 167. Definition of terms. — As used under this
Title, unless the context indicates otherwise:cralaw:red
"(k) 'Injury' means any harmful change in the human
organism from any accident sustained at work while at the workplace, or
elsewhere while executing an order for the employer." chanroblesvirtualawlibrary
"(l) 'Sickness' means any illness definitely accepted
as an occupational disease listed by the Commission, or any illness
caused by employment, subject to proof that the risk of contracting the
same is increased by working conditions. For this purpose, the
Commission is empowered to determine and approve occupational diseases
and work-related illnesses that may be considered compensable based on
peculiar hazards of employment."
"(y) 'Average monthly salary credit' in the case of
the SSS means the result obtained by dividing the sum of the monthly
salary credits in the sixty-month period immediately preceding the
semester of death or permanent disability by sixty, except where the
month of death or permanent disability falls within eighteen calendar
months from the month of coverage, in which case it is the result
obtained by dividing the sum of all monthly salary credits paid prior
to the month of the contingency by the total number of calendar months
of coverage in the same period." chanroblesvirtualawlibrary
"(cc) 'Basic Benefit' means the amount equivalent to
one hundred fifteen percent of the benefit herein computed as follows:cralaw:red
"Forty-five percent of the first three hundred pesos of average monthly
salary credit, or fraction thereof;chanroblesvirtualawlibrary
"Twenty-five percent of the next three hundred pesos of average monthly
salary credit, or fraction thereof; plus
"Nine percent of each succeeding one hundred pesos of average monthly
salary credit, or fraction thereof; plus
"One-tenth of one percent of the average monthly salary credit for each
month of paid coverage in the System in excess of one hundred twenty
months of paid coverage prior to the semester of contingency.
"(dd) 'Graduated increment' means the amount
equivalent to seven and seven-tenths percent of the result obtained by
subtracting the basic benefit from three hundred forty pesos; Provided,
That the graduated increment shall not be less than ten pesos.
"(ee) 'Monthly income benefit' means the amount
equivalent to one hundred fifteen percent of the result obtained by
adding the basic benefit and the graduated increment: Provided, That
the monthly income benefit shall in no case be less than the minimum of
the SSS, nor more than the monthly salary credit, whichever is higher."
Section 2. Paragraph (b) of Art. 176 of the Labor
Code, as amended, is hereby amended further and a new paragraph is
added thereto to read as follows:cralaw:red
"(b) The Vice Chairman of the Commission shall be
alternated each year between the GSIS General Manager and the SSS
Administrator. The presence of four Members shall constitute a quorum.
Each Member shall receive a per diem of two hundred pesos for every
meeting that is actually attended by him, exclusive of actual, ordinary
and necessary travel and representation expenses. In his absence, any
Member may designate an official of the institution he serves on
full-time basis as his representative to act in his behalf."
"(d) The Commission shall have the status and
category of a government corporation, and it is hereby deemed attached
to the Department of Labor for policy coordination and guidance."
Section 3. Paragraph (d) of Art. 177 of the Labor
Code, as amended is hereby amended further to read as follows:cralaw:red
"Art. 177. Powers and duties. —.
"(d) To initiate policies and programs toward
adequate occupational health and safety and accident prevention in the
working environment, rehabilitation other than those provided for under
Art. 190 hereof, and other related programs and activities, and to
appropriate funds therefor."
Section 4. Article 179 of the Labor Code, as amended,
is hereby amended further to read as follows: chanroblesvirtualawlibrary
"Art. 179. Investment of funds. — Provisions of
existing laws to the contrary notwithstanding, all revenues as are not
needed to meet current operational expenses under this Title shall be
accumulated in a fund to be known as the State Insurance Fund, which
shall be used exclusively for payment of the benefits under this Title,
and no amount thereof shall be used for any other purpose. All amounts
accruing to the State Insurance Fund, which is hereby established in
the SSS and the GSIS, respectively, shall be deposited with any
authorized depository bank approved by the Commission, or invested with
due and prudent regard for the liquidity needs of the
System." chanroblesvirtualawlibrary
Section 5. Paragraph (a) of Art. 191 of the Labor
Code, as amended, is hereby amended further to read as follows:cralaw:red
"Art. 191. Temporary total disability. — (a) Under
such regulations as the Commission may approve, any employee under this
Title who sustains an injury or contracts sickness resulting in
temporary total disability shall for each day of such disability or
fraction thereof be paid by the System an income benefit equivalent to
ninety percent of his average daily salary credit, subject to the
following conditions: the daily income benefit shall not be less than
two pesos and fifty centavos, nor more than twenty pesos, nor paid for
a continuous period longer than one hundred twenty days, except as
otherwise provided in the Rules, and the System shall be notified of
the injury or sickness."
Section 6. Paragraphs (a) and (b) of Art. 192 of the
Labor Code, as amended, are hereby amended further to read as follows:cralaw:red
"Art. 192. Permanent total disability. — (a) Under
such regulations as the Commission may approve, any employee under this
Title who contracts sickness or sustains an injury resulting in his
permanent total disability shall, for each month until his death, be
paid by the System during such a disability, an amount equivalent to
the monthly income benefit, plus ten percent thereof for each dependent
child, but not exceeding five, beginning with the youngest and without
substitution: Provided, That the monthly income benefit shall be the
new amount of the monthly benefit for all covered pensioners, effective
upon approval of this Decree. chanroblesvirtualawlibrary
"(b) The monthly income benefit shall be guaranteed
for five years, and shall be suspended if the employee is gainfully
employed or recovers from his permanent total disability, or fails to
present himself for examination at least once a year upon notice by the
System."
Section 7. Paragraphs (b) and (c) of Art. 193 of the
Labor Code, as amended, are hereby amended further, and Paragraphs (f)
and (g) are added thereto, to read as follows:cralaw:red
"Art. 193. Permanent partial disability. — .
"(b) The benefit shall be paid for not more than the
period designated in the following schedule:cralaw:red
Complete and permanent Number of Months:
loss of use of:cralaw:red
One thumb 10
One index finger 8
One middle finger 6
one ring finger 5
one little finger 3
one big toe 6
Any toe 3
One arm 50
One hand 39
One foot 31
One leg 46
One ear 10
Both ears 20
Hearing of one ear 10
Hearing of both ears 50
Sight of one eye 25
"(c) A loss of a wrist shall be considered as a loss
of the hand, and a loss of an elbow shall be considered a loss of the
arm. A loss of an ankle shall be considered as a loss of the foot, and
a loss of a knee shall be considered as a loss of the leg. A loss of
more than one joint shall be considered as a loss of the whole finger
or toe, and a loss of only the first joint shall be considered as a
loss of one-half of the whole finger or toe: Provided, That such a loss
shall be either the functional loss of the use or physical loss of the
member.
"(f) In cases of injuries or illnesses resulting in a
permanent partial disability not listed in the preceding schedule, the
benefit shall be an income benefit equivalent to the percentage of the
permanent loss of the capacity for work.
"(g) Under such regulations as the Commission may
approve, the income benefit payable in case of permanent partial
disability may be paid in monthly pension or in lump sum if the period
covered does not exceed one year." chanroblesvirtualawlibrary
Section 8. Art. 194 of the Labor Code, as amended, is
hereby amended further, and another paragraph is added thereto, to read
as follows:cralaw:red
"Art. 194. Death. — Under such regulations as the
Commission may approve, the System shall pay to the primary
beneficiaries upon the death of the covered employee under this Title
an amount equivalent to his monthly income benefit, plus ten percent
thereof for each dependent child, but not exceeding five, beginning
with the youngest and without substitution: Provided, However, That the
monthly income benefit shall be guaranteed for five years: Provided,
Further, That if he has no primary beneficiary, the System shall pay to
his secondary beneficiaries a lump sum benefit equivalent to
thirty-five times the monthly income benefit.
"(b) Under such regulations as the Commission may
approve, the System shall pay to the primary beneficiaries upon the
death of a covered employee who is under permanent total disability
under this Title, the actuarial balance of his monthly income benefit
under permanent total disability to be given out in the form of a
monthly pension: Provided, That if he has no primary beneficiary, the
System shall pay to his secondary beneficiaries a lump sum benefit
equivalent to the same actuarial balance of his pension under permanent
total disability.
"(c) The monthly income benefit provided herein shall
be the new amount of the monthly income benefit for the surviving
beneficiaries upon the approval of this Decree."
Section 9. A new article is hereby added after Art.
208 of the Labor Code, as amended, to read as follows: chanroblesvirtualawlibrary
"Art. 208-A. Repeal of laws. — All existing laws,
Presidential Decrees and Letters of Instructions which are inconsistent
with or contrary to this Decree, are hereby repealed: Provided, That in
the case of GSIS, conditions for entitlement to benefits shall be
governed by the Labor Code, as amended: Provided, However, That the
formulas for computation of benefits shall be those provided for under
Commonwealth Act numbered one hundred eighty-six, as amended by
Presidential Decree No. 1146, plus fifteen percent thereof."
Section 10. Effectivity. — This Decree shall take
effect on May 1st, 1978.
Done in the City of Manila,
Republic of the Philippines, this 1st day of May, in the year of Our
Lord, Nineteen Hundred and Seventy-Eight.
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