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PRESIDENTIAL DECREE NO. 891
PRESIDENTIAL DECREE NO. 891 -
FURTHER AMENDING TITLE II, BOOK FOUR ON "EMPLOYEES COMPENSATION AND
STATE INSURANCE FUND" OF PRESIDENTIAL DECREE NO. 442 ENTITLED "LABOR
CODE OF THE PHILIPPINES"
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WHEREAS, PD
442, as amended, otherwise known as "Labor Code of the Philippines,"
has integrated social security, medicare, workmen's compensation and
other social security benefits to eliminate redundancy, duplication and
overlap of similar benefits administered by several agencies of
the Government;chanroblesvirtualawlibrary
WHEREAS, the national policy is to grant promptly adequate and
meaningful benefits for employment-related disabilities and deaths;chanroblesvirtualawlibrary
WHEREAS, Section 21 of Presidential Decree No. 850 has amended Article
19 of the Labor Code of the Philippines by allowing, as an alternative
to a straight monthly pension, 50% lump sum of the 5-year guaranteed
pension;chanroblesvirtualawlibrary
WHEREAS, a lump sum payment under the present rate of contributions is
not actuarially feasible and will seriously endanger the financial
viability of the State Insurance Fund administered by the SSS and the
GSIS;chanroblesvirtualawlibrary
WHEREAS, a reasonable increase in income benefits is financially
viable; and
WHEREAS, it is necessary to harmonize, simplify and correlate the
provisions of the Labor Code of the Philippines with the other
provisions thereof to reflect the spirit and intent of this amendment;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree:cralaw:red
Section 1. Paragraph (y) and (z) of Article 166 are
hereby amended, and paragraph (ab) is added thereto, to read as follows:cralaw:red
"(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. In the case of the GSIS, the average
monthly salary credit shall be the monthly salary or wage of the
employee on the month of contingency. chanroblesvirtualawlibrary
"(z) 'Average daily salary credit' in the case of the
SSS means the result obtained by dividing the sum of the six highest
monthly salary credits in the twelve-month period immediately preceding
the semester of sickness or injury by one hundred eighty, except where
the month of injury falls within twelve calendar months from the first
month of coverage, in which case it is the result obtained by dividing
the sum of all monthly salary credits by thirty times the number of
calendar months in the same period.
"In the case of the GSIS, the average daily salary credit shall be the
actual daily salary or wage, or the monthly salary or wage divided by
the actual number of working days in the month of contingency.
"(ab) 'Semester' means a period of two consecutive
quarters ending in the quarter of death, permanent disability, injury
or sickness."
Section 2. Paragraph (a) of Article 190 of the Labor
Code is hereby amended to read as follows:cralaw:red
"(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 sixteen 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 3. Paragraph (a) of Article 191 of the Labor
Code is hereby amended to read as follows:cralaw:red
"(a) Under such regulations as the Commission may
approve, any employee under this Title who contracts sickness or
sustains an injury resulting in permanent total disability shall, for
each month until his death but not exceeding five years, be paid by the
System during such disability an income benefit equivalent to one
hundred fifteen percent of the basic benefit, which shall be computed
as follows:cralaw:red
"Forty-five percent of the first three hundred pesos of average monthly
salary credit or fraction thereof; plus
"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 disability: Provided,
That the monthly income benefit shall not be less than forty-five
pesos." chanroblesvirtualawlibrary
Section 4. Article 193 of the Labor Code is hereby
amended to read as follows:cralaw:red
"Art. 193. Death. — (a) 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 a
monthly income benefit equivalent to the monthly income benefit for
permanent total disability plus ten per cent of the basic benefit for
each dependent child but not exceeding five, beginning with the
youngest and without substitution: Provided, That the monthly income
benefit shall not be paid for more than five years, but the portion
corresponding to the monthly income benefit for permanent total
disability shall be guaranteed for five years: Provided, however, That
total payments shall in no case exceed twelve thousand pesos: Provided,
further, That if he has no primary beneficiaries a lump sum benefit
equivalent to the lesser of thirty-five times the monthly income
benefit for permanent total disability and six thousand pesos.
"(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 his monthly income benefit plus ten per cent of the
basic benefit for each dependent plus ten percent of the basic benefit
for each dependent child but not exceeding five, beginning with the
youngest and without substitution: Provided, That the monthly income
benefit shall not be paid longer than the remaining guaranteed period,
not total payments since disability exceed twelve thousand pesos:
Provided, further, That if he has no primary beneficiary, the System
shall pay to his secondary beneficiaries a lump sum benefit equivalent
to the balance of his income benefit but not to exceed the lesser of
thirty-five times his monthly income benefit and six thousand
pesos." chanroblesvirtualawlibrary
Section 5. This Decree shall form part of the Labor
Code of the Philippines.
Section 6. All provisions of existing laws, orders,
decrees, rules and regulations inconsistent herewith are hereby
repealed.
This Decree shall take effect immediately.
Done in the City of the Manila,
this 9th day of February, in the year of Our Lord, nineteen hundred
seventy-six.
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