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PRESIDENTIAL DECREE NO. 1921
PRESIDENTIAL DECREE NO. 1921 -
FURTHER AMENDING CERTAIN PROVISIONS OF TITLE II, BOOK FOUR OF THE LABOR
CODE OF THE PHILIPPINES
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WHEREAS,
the Employees' Compensation Commission, in pursuance of its objectives
to achieve labor justice for victims of employment-related
contingencies, must constantly keep pace with and remain responsive to
challenges of emerging concepts of employees' compensation in
particular, and social security in general, and the changing patterns
of social and economic development;chanroblesvirtualawlibrary
WHEREAS, as a result of discussions and consultations with the SSS,
GSIS and PMCC, it is necessary to harmonize, simplify and correlate
provisions of the Labor Code of the Philippines with other laws,
decrees and issuances administered and implemented by administering
agencies the Employees' Compensation Program;
WHEREAS, the present economic crisis requires the Government to
institute emergency and extraordinary measures toward providing forth
protection and financial relief to workers and their families, to help
mitigate the harsh effects of inflation on their living expenses; and
WHEREAS, through 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,
the Fund has accumulated enough reserves to enlarge the benefit
structure of covered employees without the need for 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 law and the
Constitution, do hereby order and decree:cralaw:red
Section 1. Paragraphs (i), (j), (k), and (ee) of
Article 167 of the Labor Code of the Philippines (PD 442, Amended) are
hereby amended further to read as follows:cralaw:red
"Art. 167. Definition of Terms. — As used in this
Title, unless the context indicates otherwise:cralaw:red
"(i) "Dependents" means the legitimate, legitimated,
legally adopted or acknowledged natural child who is unmarried, not
gainfully employed, and not over twenty-one years of age or over
twenty-one years of age provided he is incapable of self-support due to
a physical or mental defect which is congenital or acquired during
minority; the legitimate spouse living with the employee and the
parents of said employee wholly dependent upon him for regular
support." chanroblesvirtualawlibrary
"(j) "Beneficiaries" means the dependent spouse until
he/she remarries and dependent children, who are the primary
beneficiaries. In their absence, the dependent parents and subject to
the restrictions imposed on dependent children and legitimate
descendents who are the secondary beneficiaries. Provided, that the
dependent acknowledged natural child shall be considered as a primary
beneficiary when there are no other dependent children who are
qualified and eligible for monthly income benefit."
"(k) "Injury" means any harmful change in the human
organism from any accident arising out of and in the course of the
employment."
"(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
credited year of service in excess of ten years;chanroblesvirtualawlibrary
"Provided, That the monthly income benefit shall in no case be less
than Two Hundred Fifty pesos.
Section 2. Article 173 of PD 442, as Amended is
hereby amended further to read as follows:cralaw:red
"Art. 173. Extent of liability. — Unless otherwise
provided, the liability of the State Insurance Fund under this Title
shall be exclusive and in place of all other liabilities of the
employer to the employee or his dependents or anyone otherwise entitled
to recover damages on behalf of the employee of his dependents. The
payment of compensation under this Title shall not bar the recovery of
benefits as provided for in Section 699 of the Revised Administrative
Code, Republic Act numbered eleven hundred sixty-one, as amended,
Republic Act numbered six hundred ten, as amended, Republic Act
numbered forty-eight hundred sixty-four, as amended, and other laws
whose benefits are administered by the System or by other agencies of
the government."
Section 3. Paragraph (g) of Art. 177 of PD 442, as
Amended, hereby amended further to read as follows:cralaw:red
"Art. 177. Powers and duties. —.
"(g) To adopt annually a budget of expenditures of
the Commission and its staff chargeable against the State Insurance
Fund: Provided, that the SSS and GSIS shall advance on a quarter basis
the remittances of allotment of the loading fund for the commission's
operational expenses based on its annual budget duly approved by the
Ministry of the Budget and Management." chanroblesvirtualawlibrary
Section 4. Paragraphs (a), (b), and (d) of Arts. 194
of PD 442, Amended, are hereby amended further 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 (10%) percent
thereof for each dependent child, but not exceeding five beginning with
the youngest and without substitution except of provided for in
paragraph (j) of Article 167 hereof: 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 the monthly income benefit but not to
exceed sixty months. Provided, Finally, That the minimum death benefit
shall not be less than Fifteen thousand Pesos;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 beneficiaries, the System shall pay
to his secondary beneficiaries the monthly pensions excluding the
dependents' pension, of the remaining balance of the five-year
guaranteed period: Provided, Finally, That the minimum death benefit
shall be less than fifteen thousand pesos."
"(d) Funeral Benefit. — A funeral benefit of One
Thousand Five Hundred Pesos shall be paid upon the death of a covered
employee or permanently totally disabled pensioner.
Section 5. Art. 201 of PD 442, as Amended, is hereby
amended further to read as follows:cralaw:red
"Art. 210. Prescriptive Period. — No claim for
Compensation shall be given due course unless said claim is filed with
the System within three years from the time the cause of action
accrued."
Section 6. Repeal of laws. — All laws, decrees,
letters of instructions and executive orders inconsistent with, or
contrary to this Decree are hereby repealed.
Section 7. Effectivity. — This Decree shall take
effect June 1, 1984.
Done in the City of Manila,
this 1st day of May, in the Year of Our Lord, Nineteen Hundred and
Eighty-Four.
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