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PRESIDENTIAL DECREE NO. 1641
PRESIDENTIAL DECREE NO. 1641 -
FURTHER AMENDING TITLE II, BOOK FOUR OF THE LABOR CODE OF THE
PHILIPPINES (PD 442, as amended)
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WHEREAS,
Provisions of the Employees' Compensation and Status Insurance Fund of
the Labor Code of the Philippines must respond to dynamic changes in
social-economic development in light of aspiraling cost of living; and
that adjustments must be made to align such provisions with changes in
social security of the country; and
WHEREAS, the judicious management of the State Insurance Fund that the
Social Security System and the Government Service Insurance System
administer for the private sector and the public service, respectively
has resulted in accumulation of sufficient reserves to enable the
Employees' Compensation Commission to further upgrade the benefit
structure for covered employees, without requiring additional premium
contributions from employers.
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:cralaw:red
Section 1. Paragraphs (cc) and (dd) of Article 167 of
Presidential Decree No. 442, as amended, are hereby revised, to read as
follows:cralaw:red
"(cc) 'Replacement ration'. — The sum of twenty
percent and the quotient obtained by dividing three hundred by the sum
of three hundred forty and the average monthly salary credit. chanroblesvirtualawlibrary
"(dd) 'Credit years of service'. — For a member
covered prior to January 1979, nineteen hundred seventy-five minus the
calendar years of coverage, plus the number of calendar years in which
six more contributions have been paid from January 1975 up to the
calendar years containing the semester prior to the contingency. For a
member covered in or after January 1975, the number of calendar years
in which six or more contributions have been paid from the years of
coverage up to the calendar year containing the semester prior to the
contingency."
Section 2. Paragraph (ee) of Article 167 of PD 442,
as amended, is hereby further amended to read as follows:cralaw:red
"(ee) 'Monthly income benefit. — Means the amount
equivalent to one hundred fifteen percent of the sum of:cralaw:red
"The average monthly salary credit multiplied by the replacement ratio;
and
"One and a half percent of the average monthly salary credit for each
year credited year of service in excess of ten years;chanroblesvirtualawlibrary
"Provided, However, That the monthly pension of surviving pensioners
shall be increased by twenty percent."
Section 3. Paragraph (e) of Article 177 of PD 442, as
amended, is hereby further amended to read as follows:cralaw:red
"(e) To make the necessary actuarial studies and
calculations concerning the grant of constant help and income benefits
for permanent disability or death, and the rationalization of the
benefits for permanent disability and death under the Title with
benefits payable by the System for similar contingencies; Provided;
That the Commission may upgrade benefits and new ones, subject to
approval of the President; and Provided, further, that the actuarial
stability of the State Insurance Fund shall be guaranteed; Provided,
Finally, That such increases in benefits shall not require any
increases in contribution, except as provided for in paragraph (b)
hereof."
Section 4. Paragraph (a) of Article 191 of PD 442 as
amended, is hereby further amended 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 a 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
Four pesos, nor more than TWENTY FIVE pesos, nor paid for a continuous
period longer than one hundred twenty days, and the System shall be
notified of the injury or sickness."
Section 5. Paragraph (b) of Article 192 of PD 442, as
amended, is hereby further amended to read as follows:cralaw:red
"(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, except as otherwise provided for in other laws, decrees, orders
or Letters of Instructions." chanroblesvirtualawlibrary
Section 6. Paragraph (b) of Article 194 of PD 442, as
amended is hereby further amended, and paragraph (d) is added thereto,
to read as follows: chanroblesvirtualawlibrary
"(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, eighty percent of the monthly income benefit and his
dependents to the dependents pension: Provided, That the marriage must
have been validly subsisting at the time of disability; Provided,
Further, That if he has no primary beneficiary, the System shall pay to
his secondary beneficiaries a lump sum benefit equivalent to the
smaller of (1) thirty-five times the monthly pension, or (2) the
difference of sixty times the monthly pension, and the total monthly
pensions paid by the System, excluding the dependent's pension.
"(d) Funeral benefits. — A funeral benefit of one
thousand pesos shall be paid upon the death of a covered employee or
permanently totally disabled pensioner."
Section 7. Article 208-A of PD 442, as amended, is
hereby further amended to read as follows:cralaw:red
"Art. 108-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 the GSIS, conditions for entitlement to benefits shall be
covered by the Labor Code, as amended: Provided, However, That the
formulas for computation of benefits, as well as the contribution base,
shall be those provided for under Commonwealth Act numbered one hundred
eighty-six, as amended by Presidential Decree No. 1146, plus twenty
percent thereof." chanroblesvirtualawlibrary
Section 8. Effectivity. — This Decree shall take
effect on January 1, 1980.
Done in the City of Manila,
this 21st day of September, in the year of Our Lord, nineteen hundred
and seventy-nine.
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