ust golden notes 2011 - social legislation

8/12/2019 UST Golden Notes 2011 - Social Legislation

1/21

SOCIALLEGISLATION

107

UNIVERSITY OF SANTO TOMAS

F a c u l t a d d e D e r e c h o i v i l ACADEMICSCHAIR:LESTERJAYALANE.FLORESII

VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA

VICECHAIRFORADMINISTRATION ANDFINANCE:JEANELLEC. LEE

VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ

F. SOCIALLEGISLATION

Q:WhatisSocialLegislation?

A: It consists of statutes, regulations and

jurisprudence that afford protection to labor,

especiallytoworkingwomenandminors,and is in

fullaccord

with

the

constitutional

provisions

on

the

promotionofsocialjusticeto insurethewellbeing

andeconomicsecurityofallthepeople.

1.SOCIALSECURITYLAW

(RA8282)

Q:Whatisthepolicyobjectiveintheenactmentof

(SSS)Law?

A:ItisthepolicyoftheStatetoestablish,develop,

promoteandperfectasoundandviabletaxexempt

SSSsuitabletotheneedsofthepeoplethroughout

the Phils., which shall promote socialjustice and

providemeaningful

protection

to

members

and

theirbeneficiariesagainstthehazardsofdisability,

sickness, maternity, old age, death, and other

contingenciesresultinginlossofincomeorfinancial

burden.(Sec.2)

TheenactmentofSSSlawisalegitimateexerciseof

thepolicepower. Itaffordsprotectiontolaborand

is infullaccordwiththeconstitutionalmandateon

the promotion of social justice. (Roman Catholic

ArchbishopofManilav.SSS,G.R.No.15045Jan.20,

1961)

Q:Arethepremiumsconsideredastaxes?

A:No.ThefundscontributedtotheSystembelong

to the members who will receive benefits, as a

matterofright,whenever thehazardsprovidedby

the law occur. (CMS Estate, Inc., v. SSS, G.R. No.

26298Sep.28,1984)

Q:ArebenefitsreceivedunderSSSLawpartofthe

estateofamember?

A:No.BenefitsreceivableundertheSSSLawarein

thenatureofaspecialprivilegeoranarrangement

secured by the law pursuant to the policy of the

Statetoprovidesocialsecuritytotheworkingman.

The benefits are specifically declared nottransferable andexempt from tax, legalprocesses

and liens.(SSSv.Davac,et.al.,G.R.No.21642,July

30,1966)

Q:Howaredisputessettled?

A:

DISPUTESETTLEMENT

Social

Security

Commission

(SSC)

Disputesinvolving:

1. Coverage

2. Benefits

3. Contributions

4. Penalties

5. Anyother

matter

related

thereto.

Note: Disputes within the mandatory

periodof20daysafterthesubmissionof

evidence.(Sec.5a)

Decision, in the absence of appeal, shall

befinalandexecutory15daysafterdate

ofnotification.(Sec.5b)

CA/SC

DecisionsofSSCshallbeappealableto:

1.CAquestionsoflawandfact(Sec.

5c)

2.SCquestionsoflaw. (Sec.5c)

Execution

ofdecision

SSCmay,motupropriooronmotionof

anyinterested

party,

issue

awrit

of

execution to enforce any of its

decisions or awards, after it has

becomefinalandexecutory.(Sec.5d)

Q:Can theSSCvalidly reevaluate the findingsof

the RTC, and on its own, declare the latters

decisiontobebereftofanybasis?

A: No. It cannot review, much less reverse,

decisionsrenderedbycourtsof lawas itdid inthe

caseatbarwhenitdeclaredthattheCFIOrderwas

obtained through fraud and subsequently

disregardedthesame,makingitsownfindingswith

respectto

the

validity

of

Bailon

and

Alices

marriage

on the one hand and the invalidity of Bailon and

Teresitasmarriageontheother.Ininterferingwith

and passing upon the CFI Order, the SSC virtually

actedasanappellatecourt.The lawdoesnotgive

theSSCunfettereddiscretiontotriflewithordersof

regular courts in the exercise of its authority to

determine the beneficiaries of the SSS. (SSS vs.

Teresita Jarque Vda. De Bailon, G.R. No. 165545,

Mar.24,2006,J.CarpioMorales)

Q:Whoisanemployer(Er)?

A: Any person, natural or juridical, domestic or

foreign,who

carries

into

the

Phils.

any

trade,

business, industry, undertaking or activity of any

kindandusestheservicesofanotherpersonwhois

under his orders as regards the employment,

except the Government and any of its political

subdivisions, branches or instrumentalities,

including corporationsownedor controlledby the

Government: Provided, That a selfemployed

person shallbeboth Ee and Er at the same time.

(Sec8[c])


2/21

USTGOLDENNOTES2011

LABORLAWTEAM:

ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO

MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM108

Q:Whoisanemployee(Ee)?

A:Anypersonwho performs services for an Er in

whicheitherorbothmentalandphysicaleffortsare

used and who receives compensation for such

services, where there is an ErEe relationship:

Provided,That

aself

employed

person

shall

be

both

EeandEratthesametime.(Sec.8[d])

Q:Whatisemployment?

A: GR:AnyserviceperformedbyanEeforhisEr.

XPNs:

1. Employmentpurelycasualandnotforthe

purposeofoccupationorbusinessofthe

Er;

2. Service performed on or in connection

with an alien vessel by an Ee if he is

employedwhensuchvesselisoutsidethe

Phils;

3. Service performed in the employ of the

Phil. Government or instrumentality or

agencythereof;

4. Service performed in the employ of a

foreign government or international

organization, or their whollyowned

instrumentality:

5. Such other services performed by

temporary and other Ees which may be

excludedbyregulationoftheSSC.Eesof

bona fide independent contractors shall

notbedeemedEesoftheErengagingthe

servicesofsaidcontractors.(Sec.8[j])

Q:Whatisacontingency?

A: The retirement, death, disability, injury or

sicknessandmaternityofthemember.

a.Coverage

Q:WhoarecoveredbySSS?

A:

1. CompulsoryCoverage

a. AllEesnotover60yearsofageand

theirErs;

b. Domestichelpers

whose

income

is

not lessthanP1000/monthandnot

over60yearsofageandtheirErs;

Limitations:

a. Any benefit earned by the Ees

under private benefit plans

existing at the time of the

approvaloftheActshallnotbe

discontinued, reduced or

otherwiseimpaired;

b. Existing private plans shall be

integrated with the SSS but if

the Er under such plan is

contributing morethanwhat is

required by this Act, he shall

payto

the

SSS

the

amount

required to him, and he shall

continue with his contributions

lesstheamountpaidtoSSS;

c. Any changes, adjustments,

modifications, eliminations or

improvementsinthebenefitsof

theremainingprivateplanafter

the integration shallbe subject

toagreementsbetween theErs

andtheEesconcerned;and

d. The private benefit plan which

theErshallcontinueforhisEes

shall remain under the Ers

managementand

control

unless

there is an existing agreement

tothecontrary

c. All selfemployed consideredboth

anErandEe

d. Professionals;

e. Partners and single proprietors of

business;

f. Actors and actresses, directors,

scriptwriters and news

correspondents who do not fall

within the definition of the term

Ee;

g. Professional athletes, coaches,

trainersand

jockeys;

AND

h. Individual farmers and fisherman.

(Sec.9)

2. Voluntary

a. Spouses who devote full time to

managing the household and family

affairs,unless theyarealsoengaged

in other vocation or employment

which is subject to mandatory

coverage;(Sec.9[b])

b. Filipinos recruited by foreignbased

Ers for employment abroadmay be

covered by the SSS on a voluntary

basis;(Sec.

9[c])

c. Ee separated from employment to

maintainhisrighttofullbenefits

d. Selfemployed who realizes no

incomeforacertainmonth

3. ByAgreement

Any foreign government, international

organization, or their whollyowned


3/21

SOCIALLEGISLATION

109






instrumentalityemployingworkers inthe

Phils.,mayenter intoanagreementwith

thePhil.government for the inclusionof

suchEes in theSSSexcept thosealready

covered by their respective civil service

retirementsystems.

Q:When

is

the

compulsory

coverage

deemed

effective?

A:

1. Employeronthefirstdayofoperation

2. Employeeonthedayofhisemployment

3. Compulsory coverage of selfemployed

uponhisregistrationwiththeSSS

Q:Whatistheeffectofseparationofanemployee

fromhisemploymentundercompulsorycoverage?

A:

1. His Ers obligation to contribute arising

fromthat

employment

shall

cease

at

the

endofthemonthofseparation,

2. But said Ee shall be credited with all

contributions paid on his behalf and

entitled to benefits according to the

provisionsofR.A.9282.

3. He may, however, continue to pay the

totalcontributionstomaintainhisrightto

fullbenefit.(Sec.11)

Note: The above provision recognizes the once a

member,alwaysamemberrule.

Q:Whatistheeffectofinterruptionofbusinessor

professionalincome?

A:Iftheselfemployedmemberrealizesnoincome

inanygivenmonth:

1. He shall not be required to pay

contributionsforthatmonth.

2. Hemay,however,beallowedtocontinue

payingcontributionsunderthesamerules

andregulationsapplicabletoaseparated

Eemember:

3. Provided, thatno retroactivepaymentof

contributionsshallbeallowedotherthan

asprescribedunderSec.22A.(Sec.11A)

Q: On her way home from work, Asteria

Benedicta, amachine operator in a sash factory,

entersamoviehousetorelax.Butshe isstabbed

by an unknown assailant. Her claim for benefits

under the SSS Law is denied on the ground that

her injury is not workconnected. Is the denial

legal?Why?

A: No. It is not necessary, for the enjoyment of

benefitsundertheSSSLawthatthe injury iswork

connected. Whatisimportantismembershipinthe

SSS andnot the causal connection of theworkof

theEetohisinjuryorsickness.

Claims based on workconnected injuries or

occupationaldiseases

are

covered

by

the

State

InsuranceFund.

b.Exclusionsfromcoverage

Q:Enumeratethekindsofemploymentwhichare

exceptedfromcompulsorycoverageundertheSSS

Law.

A:UnderSection8(j)ofR.A.1161,asamended,the

following services or employments are excepted

fromcoverage:

1. Employmentpurelycasualandnotforthe

purposeof

occupation

or

business

of

the

employer;

2. Service performed on or in connection

withanalienvesselbyanemployee ifhe

isemployedwhen such vessel isoutside

thePhilippines;

3. Service performed in the employ of the

PhilippineGovernmentor instrumentality

oragencythereof;

4. Service performed in the employ of a

foreign government or international

organization,

or

their

whollyowned

instrumentality:

Provided, however,That this exemption

notwithstanding,anyforeigngovernment,

internationalorganizationortheirwholly

owned instrumentality employing

workers in the Philippines or employing

Filipinos outside of the Philippines, may

enter into an agreement with the

Philippine Government for the inclusion

ofsuchemployeesintheSSSexceptthose

already covered by their respective civil

service retirement systems:Provided,

further,That

the

terms

of

such

agreement

shall conformwith theprovisionsof this

Actoncoverageandamountofpayment

of contributions and benefits:Provided,

finally,ThattheprovisionsofthisActshall

besupplementarytoanysuchagreement;

and


4/21

USTGOLDENNOTES2011

LABORLAWTEAM:



5. Such other services performed by

temporary and other employees which

may be excluded by regulation of the

Commission. Employees ofbona

fideindependentcontractorsshallnotbe

deemed employees of the employer

engagingtheserviceofsaidcontractors.

c.Benefits

Q:WhatarethebenefitsundertheSSSAct?

A:

1. MonthlyPension

2. RetirementBenefits

3. DeathBenefits

4. DisabilityBenefits

5. FuneralBenefits

6. SicknessBenefits

7. MaternityBenefits

Q:Are

the

benefits

provided

for

in

the

SSS

Law

transferable?

A: Benefits provided for in the SSS Law are not

transferable and no power of attorney or other

document executed by those entitled thereto in

favorofanyagent,attorneyoranyotherpersonfor

the collection thereof on their behalf shall be

recognized,exceptwhentheyarephysicallyunable

to collect personally such benefits. (Sec.15, R.A.

1161,asamended)

Q:WhatarethereportorialrequirementsoftheEr

andselfemployed?

A:

1. Er Report immediately to SSS thenames,

ages, civil status, occupations, salaries and

dependentsofallhiscoveredEes

2. Selfemployed ReporttoSSSwithin30days

fromthefirstdayofhisoperation,hisname,

age, civil status, occupation, average

monthlynetincomeandhisdependents

MonthlyPension

Q:Howmuchisthemonthlypension?

A:

1. Themonthlypensionshallbethehighest

ofthefollowingamounts:

a. Thesumofthefollowing:

ii. P300.00;plus

iii. 20% of the average monthly

salarycredit;plus

iv. 2% of the average monthly

salary credit for each credited

year of service in excess of 10

years;or

b. 40% of the average monthly salary

credit;or

c. P1,000.00, provided that the

monthlypension

shall

in

no

case

be

paidforanaggregateamountofless

thansixty(60)months(Sec.12[a])

2. MinimumPension

a. P1,200.00 members with at least

10creditedyearsofservice

b. P2,400.00forthosewith20credited

yearsofservice.(Sec.[b])

Q: Whatwillhappentothemonthlypensionofa

retireeincaseofdeath?

A:

1. Upon the death of the retired member,

hisprimary

beneficiaries

as

of

the

date

of

his retirement will get 100% of his

monthly pension plus the dependent's

pensionforeachchild.

Note: The above phrase primary

beneficiaries (as of the date of his

retirement) was declared unconstitutional

bytheSCinDycaicov.SSSandSSC(G.R.No.

16137, June 6, 2006) because it is in

violation of the equal protection, due

processandsocialjustice.

2. Ifhedieswithin60monthsfromthestart

ofhis

pension

and

he

has

no

primary

beneficiaries, his secondary beneficiaries

willreceivealumpsumbenefitequivalent

to thedifferenceof60multipliedby the

monthly pension and the total monthly

pensions paid by the SSS excluding the

dependent'spension.(Sec.12B[d])

Q: Bonifacio and Elena are living together as

husband and wife without the benefit of

marriage. Bonifacio declared Elena and their

children as his primary beneficiaries in his self

employeddatarecord inSSS.A fewmonthsprior

to his death, Bonifacio married Elena.Is Elena

entitledto

the

survivors

pension?

A: Yes, she is considered primary beneficiary of

Bonifacio. The phrase Upon the death of the

retiredmember,hisprimarybeneficiariesasofthe

dateofhis retirementwill get100per centofhis

monthlypensionxxxofSec.12BdofRA8282 is

unconstitutional because it violates the: (1) equal

protection clause because it impermissibly

discriminates against dependent spouses whose


5/21

SOCIALLEGISLATION

111






respective marriages to the SSS members were

contracted after the latters retirement; (2) due

process clause because it outrightly deprives

spouseswhomarried theSSSmembersafter their

retirement of the survivors pension, a property

interest, without giving them opportunity to be

heard;and(3)socialjustice.

Further, the survivorship pension applied for was

classifiedasdeathbenefits.Hence,thecontingency

that gives rise to the entitlement of Elena is the

deathofBonifacioandnothisretirement.(Dycaico

v.SSS,G.R.No.16137,June6,2006)

Q:When isthemonthlypensionanddependents

pensionsuspended?

A:

1. Uponthereemploymentorresumptionof

selfemployment

2. Recovery of the disabled member from

hispermanent

total

disability

3. Failuretopresenthimselfforexamination

at least once a year upon notice by the

SSS.(Sec.13A[b])RetirementBenefit

Q:Whatisaretirementbenefit?

A:Itisacashbenefitpaidtoamemberwhocanno

longerworkduetooldage.

Q:Whatarethetypesofretirementbenefits?

A:

1. Monthly Pension Lifetime cash benefit

paidtoaretireewhohaspaidatleast120

monthlycontributionsto theSSSpriorto

thesemesterofretirement.

2. LumpSumAmount Grantedtoaretiree

who has not paid the required 120

monthlycontributions.

Q:Whoareentitledforretirementbenefits?

A:

1. Amemberwho

a. has paid at least 120 monthly

contributionsprior

to

the

semester

of

retirement;

b. atleast60yearsold;and

c. already separated from employment

orhasceasedtobeselfemployed,OR

2. At least65yearsold,shallbeentitledfor

as long as he lives to the monthly

pension;(Sec12B[a])

3. Amember

a. At least 60 years old at retirement;

and

b. Doesnotqualifyforpensionbenefits

underparagraph(a)above entitled

to a lump sumbenefitequal to the

totalcontributions

paid

by

him

and

onhisbehalf;

c. Must be separated fromemployment and is not continuing

paymentofcontributions to theSSS

onhisown.(Sec.12B[b])

Q:Whathappenswhen the retirementpensioner

isreemployedorresumesselfemployment?

A: Themonthlypensionofaretirementpensioner

whoresumesemploymentandislessthan65years

oldwillbe suspended.HeandhisErwillagainbe

subjecttocompulsorycoverage.(Sec.12B[c])

Q: Are thechildrenofaretireememberentitled

tothedependent'spension?

A: Yes(Sec.12[A]).However,only5minorchildren,

beginning from the youngest, are entitled to the

dependents' pension. No substitution is allowed.

Where there are more than 5 legitimate and

illegitimate children, the legitimate ones will be

preferred.

Q: Forhow longwillthedependentchildreceive

thepension?

A:

Untilthe

child

reaches

21

years

of

age,

gets

married,getsemployedandearnsP300amonthor

more,ordies.

However, the dependent's pension is granted for

lifetochildrenwhoareover21yearsold,provided

theyareincapacitatedandincapableofselfsupport

duetophysicalormentaldefectwhichiscongenital

oracquiredduringminority.

DeathBenefit

Q: When is a beneficiary entitled to death

benefits?

A:

1. Upondeathofamember,ifhehaspaidat

least 36 monthly contributions prior to

thesemesterofdeath:

a. primary beneficiaries shall be

entitledtothemonthlypension;or

b. Iftherearenoprimarybeneficiaries,

secondary beneficiaries shall be


6/21

USTGOLDENNOTES2011

LABORLAWTEAM:



entitled to a lump sum benefit

equivalent to 36 times themonthly

pension.

2. Upon death of a member If he has not

paid the required 36 monthly

contributions prior to the semester of

death:

a. Primaryor

secondary

beneficiaries

shall be entitled to a lump sum

benefit equivalent to the monthly

pensionmultipliedbythenumberof

monthly contributions paid to the

SSS:or

b. 12 times the monthly pension,

whicheverishigher.(Sec.13)

DisabilityBenefit

Q: Whatisadisabilitybenefit?

A: It is a cash benefit paid to a member who

becomespermanently

disabled,

either

partially

or

totally.

Q:What isthedifferencebetweendeathbenefits

andPermanentTotalDisabilitybenefits?

A:

DeathBenefits PTDBenefits

Requisite

atleast36monthlycontributions

BenefitspayabletowhomPrimaryBeneficiaries Member

Failuretomake36monthlypaymentsBenefitsshallbeinlumpsumequivalenttothe

monthlypensiontimesthenumberofmonthly

contributionspaidtoSSSor12timesthemonthly

pension,whicheverishigher.

Q: What is the effect of the death of the PTD

pensioner?

A:

1. Primary beneficiaries are entitled to

receivemonthlypensionasofthedateof

disability.

2. No primary beneficiaries and he dies

within60

months

from

the

start

of

his

monthlypension secondarybeneficiaries

shall be entitled to a lump sum benefit

equivalent to the totalmonthlypensions

corresponding to the balance of the 5

year guaranteed period excluding the

dependentspension.(Sec.13A[c])

Q: What is the effect of retirement or death to

partialdisabilitypension?

A: Disability pension shall cease upon his

retirementordeath.(Sec13A[j])

FuneralBenefit

Q:Whatisthefuneralbenefit?

A:AfuneralgrantequivalenttoP12,000.00shallbe

paid, incashor inkind, tohelpdefray the costof

expensesupon thedeathof amemberor retiree.

(Sec.13B)

SicknessBenefit

Q: Whatissicknessbenefit?

A: It isadailycashallowancepaidforthenumber

ofdaysamemberisunabletoworkduetosickness

orinjury.

Q:What

are

the

requirements

to

be

entitled

for

sicknessbenefit?A:

1. The member paid at least 3 monthly

contributions in the 12month period

immediately preceding the semester of

sicknessorinjury

2. Confined for more than 3 days in a

hospital or elsewhere with the approval

oftheSSS

3. He has used all current company sick

leaveswithpayforthecurrentyear

4. Notified his Er or the SSS, if he is a

separated,voluntary

or

self

employed

member

Q:Whowillpaysicknessbenefits?andhowmuch

isthebenefit?

A:TheErshallpaythe:

1. Eeforeachcompensableconfinementor

fractionthereofor

2. SSS if member is selfemployed daily

sicknessbenefitequivalent to90%ofhis

averagedailysalarycredit,subjecttothe

followingconditions:

a. Inno

case

shall

the

daily

sickness

benefitbepaidlongerthan120days

in 1 calendar year, nor shall any

unused portion of the 120 days of

sickness benefit granted be carried

forward and added to the total

number of compensable days

allowableinthesubsequentyear;


7/21

SOCIALLEGISLATION

113






b. Not paidformorethan240dayson

account of the same confinement;

and

c. Eemember shallnotifyhisErof the

factofhissicknessor injurywithin5

calendar days after the start of his

confinement unless such

confinement:

i. isinahospital

ii. the Ee became sick or was

injured while working or

withinthepremisesoftheEr

(notification to the Er not

necessary);

3. If the member is unemployed or self

employed,heshalldirectlynotifytheSSS

ofhisconfinementwithin5calendardays

after the start thereof unless such

confinementisinahospitalinwhichcase

notificationisalsonotnecessary;

4. Where notification is necessary,

confinement shall be deemed to have

started not earlier than the 5th day

immediately preceding the date of

notification.(Sec.14[b])

Note:The lawdoesnotrequirethatsicknessmustbe

relatedtothedutiesofthebeneficiaries.

Q: When will compensable confinement

commence?

A:

1. Beginson

the

1st

day

of

sickness

2. Payment of such allowances shall be

promptlymadebytheEr:

a. every regularpaydayoron the 15th

andlastdayofeachmonth,

b. incaseofdirectpaymentbytheSSS

as long as such allowances are due

andpayable.(Sec.14[b])

Q:WhataretherequirementsinorderthatErmay

claimreimbursementofthesicknessbenefit?

A:

1. 100% of daily benefits shall be

reimbursed

by

SSS

if

the

following

requirementsaresatisfied:

a. Receipt of SSS of satisfactory proof

ofsuchpaymentandlegalitythereof:

b. The Er has notified the SSS of the

confinementwithin 5 calendar days

afterreceiptofthenotificationfrom

theEemember:

2. Er shallbe reimbursedonly foreachday

of confinement starting from the 10th

calendar day immediately preceding the

date of notification to the SSS if the

notification to theSSS ismadebeyond5

calendar days after receipt of the

notificationfromtheEemember.(Sec.14

[c])

Q:WhenwillreimbursementbemadebySSS?

A:GR: SSS shall reimburse the Er or pay the

unemployed member only for confinement

within1yearimmediatelyprecedingthedatethe

claimforbenefitorreimbursementisreceivedby

theSSS

XPN:Confinementinahospitalinwhichcasethe

claimforbenefitorreimbursementmustbefiled

within1year from the lastdayof confinement.

(Sec.14[c])

MaternityBenefit

Q:Whatisthematernitybenefit?

A: Thematernitybenefit isadaily cashallowance

granted to a female member who was unable to

workduetochildbirthormiscarriage.

Q:Whatare thequalifications forentitlement to

thematernitybenefit?

A:

1. She has paid at least three monthly

contributionswithin

the

12

month

period

immediately preceding the semester of

herchildbirthormiscarriage.

2. Shehasgiventherequirednotificationof

her pregnancy through her employer if

employed, or to the SSS if separated,

voluntaryorselfemployedmember.

Q:Isthevoluntaryorselfemployedmemberalso

entitledtothematernitybenefit?

A: Yes,Avoluntaryor a selfemployedmember is

entitledtothematernitybenefitprovidedthatshe

meetsthequalifyingconditions.

Q:Howmuchisthematernitybenefit?

A: The maternity benefit is equivalent to 100 per

cent of the members average daily salary credit

multiplied by 60 days for normal delivery or

miscarriage,78daysforcaesareansectiondelivery.

Q:Howisthematernitybenefitcomputed?


8/21

USTGOLDENNOTES2011

LABORLAWTEAM:



A:

1. Exclude the semester of contingency

(deliveryormiscarriage).

Note: Semester refers to two consecutive

quarters ending in the quarter of

contingency.Quarter

refers

to

three

consecutive months ending March, June,

SeptemberorDecember.

2. Count12monthsbackwardsstartingfrom

the month immediately before the

semesterofcontingency.

3. Identify the six highest monthly salary

creditswithinthe12monthperiod.

Note: Monthly salary credit means the

compensation base for contributions

benefitsrelatedtothetotalearningsforthe

month.

4. Addthesixhighestmonthlysalarycredits

togetthetotalmonthlysalarycredit.

5. Divide the totalmonthly salary creditby

180 days to get the average daily salary

credit. This is equivalent to the daily

maternityallowance.

6. Multiplythedailymaternityallowanceby

60(fornormaldeliveryormiscarriage)or

78days(forcaesareansectiondelivery)to

getthetotalamountofmaternitybenefit.

Q:Whatisthedifferenceofcompensabilityunder

theLaborLawandtheSocialSecurityLaw?

A: The claims are different as to their nature and

purpose. (Ortega vs. Social Security Commission,

G.R.No.176150,June25,2008)

LABORLAW SOCIALSECURITYLAW

PurposeGoverns compensability

of:

1. workrelated

disabilities

2.

when

there

is

loss

of income due to

workconnected

or work

aggravated injury

orillness.

Benefits are intended to

provide insurance or

protection against the

hazards or risks of

disability,

sickness,

old

age or death, inter alia,

irrespective of whether

theyarosefromorinthe

course of the

employment.

Nature

A disability is total and

permanentifasaresultof

the injuryor sickness the

Ee is unable to perform

Disability may be

permanent total or

permanentpartial.

anygainfuloccupationfor

a continuous period

exceeding 120 days

regardless ofwhether he

losestheuseofanyofhis

bodyparts.

d.Beneficiaries

Q:Whoareprimarybeneficiaries?

A:

1. The dependent spouse until he or she

remarries

2. Thedependent legitimate, legitimatedor

legallyadopted,andillegitimatechildren,:

Provided,Thatthedependent illegitimate

children shall be entitled to 50% of the

share of the legitimate, legitimated or

legallyadoptedchildren.

Q:Whoaresecondarybeneficiaries?

A: In the absence of primary beneficiaries, the

dependentparents.

In the absence of all the foregoing, any other

person designated by the member as his or her

secondarybeneficiary.(Sec.8[k])

Q:Whoareconsidereddependents?

A:

1. The legal spouse entitled by law to

receivesupport

from

the

member;

2. The legitimate, legitimated, or legally

adopted,andillegitimatechildwho:

a. Isunmarried,

b. Notgainfullyemployed,and

c. Hasnotreached21yearsofage,orif

over 21 years of age, he is

congenitallyorwhilestillaminorhas

beenpermanently incapacitatedand

incapable of selfsupport, physically

ormentally.

3. The parent who is receiving regular

supportfromthemember.

Q:What

is

meant

by

dependent

for

support?

A: The entitlement to benefits as a primary

beneficiary requires not only legitimacy but also

dependenceupon themember Ee. (Gil v. SSCCA

GRSP.37150,May8,1996)

Ifawifewhoisalreadyseparateddefactofromher

husband cannot be said to be "dependent for

support"uponthehusband,absentanyshowingto


9/21

SOCIALLEGISLATION

115






the contrary. Conversely, if it is proved that the

husband andwifewere still living together at the

timeofhisdeath,itwouldbesafetopresumethat

she was dependent on the husband for support,

unless it is shown that she iscapableofproviding

forherself.(SSSv.Aguas,G.R.No.165546,Feb.27,

2006)

Q: Who is entitled to the benefits of an SSS

memberwhowas survived not only by his legal

wife,whoisnotdependentuponthemember,but

alsobytwocommonlawwiveswithwhomhehad

illegitimateminorchildren?

A:The illegitimateminorchildren shallbeentitled

to the death benefits as primary beneficiaries

because the legalwife isnotdependentupon the

member.TheSSSLawisclearthatforaminorchild

toqualifyasadependent theonlyrequirements

are thathe/shemustbebelow21yrs.ofage,not

marriednorgainfullyemployed.(Signeyv.SSS,G.R.

No.173582,

Jan.28,

2008)

Q:Whatiscompensation?

A: All actual remuneration for employment,

includingthemandatedcostof livingallowance,as

wellasthecashvalueofanyremunerationpaid in

anymediumotherthancashexceptthatpartofthe

remunerationreceivedduring themonth inexcess

ofthemaximumsalary.

Q: The owners of FALCON Factory, a company

engaged in the assembling of automotive

components, decided to have their building

renovated.(50)

persons,

composed

of

engineers, architects and other construction

workers, were hired by the company for this

purpose. The work was estimated to be

completed in 3 years. The Ees contended that

since theworkwould be completed aftermore

than1year,theyshouldbesubjecttocompulsory

coverage under the Social Security Law.Do you

agreewiththeircontention?Explainyouranswer

fully.

A: No.Under Sec. 8 (j) of R.A. 1161, as amended,

employment of purely casual and not for the

purpose of the occupation or business of the

employerare

excepted

from

compulsory

coverage.

An employment ispurely casual if it isnot for the

purposeofoccupationorbusinessoftheEr.

In theproblem given, Falcon Factory is a company

engaged in the assembly of automotive

components. The 50 persons (engineers, architects

and construction workers) were hired by Falcon

Factory to renovate its building. The work to be

performedby these50people isnot inconnection

with the purpose of the business of the factory.

Hence, the employment of these 50 persons is

purely casual. They are, therefore, excepted from

thecompulsorycoverageof theSSS law. (2000Bar

Question)

2.GSIS

(R.A.8291)

Q:What are thepurposes behind theenactment

oftheGSISAct?

A: To provide and administer the following social

securitybenefitsforgovernmentemployees(Ee):

1. Compulsorylifeinsurance

2. Optionallifeinsurance

3. Retirementbenefits

4. Disability benefits to workrelated

contingencies;and

5. Deathbenefits

Q: Whoareconsideredemployers (Er)underthe

GSISAct?

A:

1. NationalGovernment

2. Its political subdivisions, branches,

agencies,instrumentalities

3. GOCCs, and financial institutions with

originalcharters

4. Constitutional Commissions and the

Judiciary(Sec.2[c])

Q:Can

SSS

Ees

be

covered

by

GSIS?

A:Yes.

Q:WhoisanEmployeeormember?

A: Anyperson,receivingcompensationwhileinthe

service of an Er, whether by election or

appointment,irrespectiveofstatusofappointment,

including barangay and sanggunian officials. (Sec.

2[d])

Q:Whatiscompensation?

A:

Thebasic

pay

or

salary

received

by

an

Ee,

pursuant to his or her election or appointment,

excluding per diems, bonuses, OT pay, honoraria,

allowancesandanyotheremoluments received in

addition to thebasicpaywhicharenot integrated

intothebasicpayunderexistinglaws.(Sec.2[i])

Q: Baradero is a member of the SangguniangBayanoftheMunicipalityofLaCastellana,Negros


10/21

USTGOLDENNOTES2011

LABORLAWTEAM:



Occ.and ispaidonaperdiembasis.Ontheotherhand, Belo a ViceGovernor of Capiz is in a hold

overcapacityand ispaidonaperdiembasis.Aretheservices renderedbyBaraderoandBeloona

perdiembasiscreditable incomputingthe lengthofserviceforretirementpurposes?

A:Yes.

The

traditional

meaning

of

per

diem

is

a

reimbursement forextraexpenses incurredby the

public official in the performance of his duties.

Under this definition the per diem is intended to

coverthecostoflodgingandsubsistenceofofficers

and employees when the latter are on a duty

outside of their permanent station. On the other

hand, a per diem could rightfully be considered a

compensation or remuneration attached to an

office.

Theperdiemspaid toBaradero andBelowere in

the nature of compensation or remuneration for

their services as Sangguniang Bayan and Vice

Governor,

respectively,

rather

than

a

reimbursement for incidental expenses incurred

whileawayfromtheirhomebase.

If the remuneration receivedbyapublicofficial in

theperformanceofhisdutiesdoesnotconstitutea

mere allowance forexpensesbut appears tobe

hisactualbasepay,thennoamountofcategorizing

the salary as a per diem would take the

allowances received from the term service with

compensation for the purpose of computing the

numberofyearsofservice ingovernment.(GSISv.

CSC,G.R.Nos.98395and102449,June19,1995)

Q:What

are

the

sources

of

funds

of

the

GSIS?

A: Itcomes from themonthlycontributionsof the

coveredEesandErs.(Sec.5)

The contributions of the Ees are deducted and

withheld by the Er eachmonth from themonthly

salaryoftheformerandareremittedbythelatter,

togetherwith itsown share, to the Systemwithin

the first10daysofeachcalendarmonth following

themonthtowhichthecontributionsapply.(Sec.6)

Q: What is the penalty in case of delayed

remittanceornonremittanceofcontributions?

A: The unremitted contributions shall be charged

interests as prescribed by the GSIS Board of

Trustees but shall not be less than 2% simple

interest per month from due date to the date of

paymentbytheemployersconcerned.

a.Coverage

Q:WhatgovernmentEesaresubject tocoverage

undertheGSIS?

A:

GR: All Ees receiving compensation who have

notreached

the

compulsory

retirement

age,

irrespectiveofemploymentstatus.

XPNs:

1. Uniformedmembersofthe:

a. AFP;and

b. PNP.

2. Contractuals who have no Er and Ee

relationshipwiththeagenciestheyserve.

Q:Whoare coveredby life insurance, retirement

andothersocialsecurityprotection?

A:

GR:All

members

of

the

GSIS

shall

have

life

insurance, retirement, and all other social

security protections such as disability,

survivorship, separation, and unemployment

benefits.(Sec.3)

XPNs:Membersof:

1. Thejudiciary;and

2. Constitutional commissions who shall

havelifeinsuranceonly.

b.Exclusionsfromcoverage

Q: Who, under theGSIS, areexcluded from the

coverage?

A:

1. Ees who have separate retirement

schemes (members of the Judiciary,

Constitutional Commissions and others

similarlysituated)

2. Contractual Eeswho have no ErEewith

theagenciestheyserve

3. Uniformed members of the AFP, BJMP,

whose coverage by the GSIS has ceased

effectiveJune24,1997

4. Uniformed members of the PNP whose

coveragebytheGSIShasceasedeffective

February1,

1996.

(Sec.

2.4,

Rule

II,

IRR)

Q:Forthepurposeofbenefitentitlement,howare

themembersclassified?

A:

1. Activemembers

a. Still in the service and are paying

integratedpremiums.


11/21

SOCIALLEGISLATION

117






b. Covered for the entire package

benefits and privileges being

extendedbyGSIS.

2. Policyholders

a. Coveredforlifeinsuranceonly

b. Canavailofpolicyloanprivilegeonly

c. Mayalso

apply

for

housing

loans

d. Judiciary and Constitutional

Commissions

3. RetiredMembers

a. Former active members who have

retired from the service and are

already enjoying the corresponding

retirementbenefitsappliedfor

b. Not entitled to any loan privilege,

exceptstockpurchaseloan(Sec.2.2,

RulesII,IRR)

c.Benefits

Q: What are the benefits provided by the GSIS

Act?

A:

1. Separation

2. Unemploymentorinvoluntaryseparation

3. Retirement

4. Permanentdisability

5. Temporarydisability

6. Survivorship

7. Funeral

8. LifeInsurance

9. Such other benefits and protection as

maybe

extended

to

them

by

the

GSIS

suchasloans.

Q:WhatarethebenefitsunderP.D.1146(Revised

GSIS Act of 1977) that may be granted to the

separatedmembersofthePNP,BJMPandBFP?

A:GR:

1. Oldagebenefit

2. Permanentdisabilitybenefit

3. Survivorshipbenefit

4. Funeralbenefit

5. Retirementbenefit

XPN:Judiciary

(Life

insurance

only

tax

exempt)

Q: What are the reportorial requirements of the

Er?

A: Ermust report toGSIS thenames,employment

status,positions,salariesoftheemployeeandsuch

othermatterasdeterminedbytheGSIS.

SeparationBenefits

Q:Whenwillamemberbeentitled toseparation

benefits and what comprises these separation

benefits?

A: Amemberwhohas renderedaminimumof3

years

creditable

service

shall

be

entitled

to

separation benefit upon resignation or separation

underthefollowingterms:

1. Amemberwith at least 3 years but less

than 15 years: Cash payment equivalent

to 100% of the AMC for every year of

service the member has paid

contributions:

a. notlessthanP12,000.00

b. Payable upon reaching 60 years of

age or upon separation, whichever

comeslater.

2. Amember

with

less

than

15

years

of

service and less than 60 years of age at

thetimeofresignationorseparation:

a. Cashpaymentequivalentto18times

the basic monthly pension (BMP),

payableatthetimeofresignationor

separation

b. Anoldagepensionbenefitequal to

the basic monthly pension, payable

monthly for life upon reaching the

ageof60.

Q: Whataretheeffectsofseparationfromservice

withregardtomembership?

A: A member separated from the service shall

continue tobeamember and shallbeentitled to

whateverbenefitshehasqualifiedto.

Note: A member separated for a valid cause shall

automatically forfeithisbenefits,unless the termsof

resignationorseparationprovideotherwise.

Inthecaseofforfeiture,theseparatedemployeeshall

be entitled to receive only of the cash surrender

valueofhisinsurance.

UnemploymentBenefits

Q: What are the conditions for entitlement to

unemploymentbenefits?

A:

1. The recipient must be a permanent

employeeatthetimeofseparation;

2. Hisseparationwasinvoluntaryduetothe

abolitionofhisofficeorpositionresulting

fromreorganization;and


12/21

USTGOLDENNOTES2011

LABORLAWTEAM:



3. He has been paying the contribution for

atleast1yearpriortoseparation.

Q: Whatwillconsistofanunemploymentbenefit?

A: It will consists of cash payment equivalent to

50%oftheaveragemonthlycompensation

Note:Amemberwhohasrenderedatleast15yearsof

servicewillbeentitled to separationbenefits instead

ofunemployment benefits.

RetirementBenefits

Q: Whataretheconditionsinordertobeentitled

toretirementbenefits?

A:

1. Amemberhasrenderedatleast15years

ofservice;

2. He isat least60yearsofageatthetime

ofretirement;

and

3. He is not receiving a monthly pension

benefit from permanent total disability.

(Sec.13A)

Q:What istherule incaseofextensionofservice

inordertobeentitledforretirementbenefit?

A:ThedoctrineinCenavs.CSC(G.R.No.97419,July

3,1992),wasmodified inRaborvs.CSC, (G.R.No.

111812,May31,1995),wheretheSCheldthat:The

head of the government agency concerned is

vested with discretionary authority to allow or

disallowextensionoftheserviceofanofficialorEe

whohas

reached

65

years

old

without

completing

the15yearsofgovernmentservice. However,this

discretion is to be exercise conformably with the

provisions of Civil Service Memorandum Circular

No. 27, series of 1990 which provides that the

extensionshallnotexceed1year.

Q:Whatisthereasonforcompulsoryretirement?

A: The compulsory retirement of government

officialsandEesupon their reaching theageof65

yearsisfoundedonpublicpolicywhichaimsbyitto

maintainefficiency in the government service and

atthesametimegivetotheretiringpublicservants

theopportunity

to

enjoy

during

the

remainder

of

their lives the recompense, for their long service

anddevotionto thegovernment , intheformofa

comparatively easier life, freed from the rigors of

civil service discipline and the exacting demands

that the nature of their work and their relations

with their superiors as well as the public would

impose upon them. (Beronilla v. GSIS, G.R. No.

21723,Nov.26,1970)

Q: Whataretheoptionsoftheretireewithregard

tohisorherretirementbenefits?

A: Theretireemaygeteitherofthefollowing:

1. Lumpsumequivalent to6monthsofthe

basic monthly pension (BMP) payable at

thetime

of

retirement

and

an

old

age

pensionbenefitequaltoBMPpayablefor

life,startingupon theexpirationof the5

yearscoveredbythelumpsum;or

2. Cashpaymentequivalent to18 timeshis

BMPandmonthlypensionforlifepayable

immediately.(Sec.13[a])

PermanentDisabilityBenefits

Q:Whatisdisability?

A:Any lossor impairmentof thenormal functions

ofthephysicaland/ormentalfacultyofamember,

whichreduces

or

eliminates

his/her

capacity

to

continuewithhis/hercurrentgainfuloccupationor

engageinanyothergainfuloccupation.

Q:Whatistotaldisability?

A: Complete incapacity to continue with present

employment or engage in any gainful occupation

due to the loss or impairment of the normal

functionsofthephysicaland/ormentalfacultiesof

themember.

Q:Whatispermanenttotaldisability(PTD)?

A:

Accrues

or

arises

when

recovery

from

impairment mentioned in Sec.2(q) (defining

disability)ismedicallyremote.

Q:Whatispermanentpartialdisability(PPD)?

A: Accrues or arises upon the irrevocable loss or

impairment of certain portions of the physical

faculties, despite which the member is able to

pursueagainfuloccupation.

Q:Whataretheconditionsinordertobeentitled

forpermanentdisabilitybenefits?

A:The

permanent

disability

was

not

due

to

any

of

theff:

1. Gravemisconduct

2. Notoriousnegligence

3. Habitualintoxication

4. Willfulintentiontokillhimselforanother


13/21

SOCIALLEGISLATION

119






Q: What are the two types of permanent

disability?

A:

1. Permanenttotaldisability(PTD) accrues

orariseswhenrecovery fromany lossor

impairment of the normal functions of

thephysical

and/or

mental

faculty

of

a

memberwhich reducesoreliminateshis

capacity to continue with his current

gainfuloccupationorengageinanyother

gainful occupation is medically remote.

[Section2(q)and(s)]

2. Permanent partial disability (PPD)

accrues or arises upon the irrevocable

lossorimpairmentofcertainportion/sof

the physical faculties, despite which the

member is able to pursue a gainful

occupation.(Sec.2[u])

PTD

PPD

Causes1. Completelossofsight

ofbotheyes

2. Lossof2limbsator

abovetheankleor

wrist

3. Permanentcomplete

paralysisof2limbs

4. Braininjuryresulting

inincurableimbecility

orinsanity

5. Suchothercasesas

maybedetermined

by

the

GSIS

Complete and

permanent loss of the

useof:

1.Anyfinger

2.Anytoe

3.Onearm

4.Onehand

5.Onefoot

6.Oneleg

7.Oneorbothears

8.Hearingofoneorboth

ears

9.Sightofoneeye

Such other causes as

determined byGSIS

Benefits1.Amemberisentitledto

the monthly income

benefit for life equivalent

totheBMPwhen:

a. Heisintheservice

at the timeof the

disabilityor

b. If separated from

service

c. He

has

paid

at

least 36 monthly

contributions

within 5 years

immediately

preceding his

disability

d. Hehaspaidatotal

of at least 180

monthly

Amember is entitled to

cash payment in

accordance with the

scheduleofdisabilitiesto

beprescribedbyGSIS, if

he satisfies the given

conditions of either (1)

or(2)ofSec.16(a).

contribution prior

hisdisability

e. He isnotreceiving

oldageretirement

pensionbenefits

2.Ifthememberdoesnot

satisfy

the

conditionsabovebuthasrenderedat

least 3 years service, he

shallbeadvancedthecash

payment equivalent to

100% of his average

monthlycompensationfor

each year of service he

haspad contributionsbut

not less than P12,000.00

which should have been

his separationbenefit (he

shall no longer receive

separationbenefits)

Q:When

will

the

payment

of

these

benefits

be

suspended?

A:

1. Incaseamemberisreemployed;or

2. Member recovers from disability as

determinedbytheGSIS;or

3. Fails to present himself for medical

examinationwhen required by theGSIS.

(Sec.16[c])

Q: Manioso was suffering from several diseases

from1959to1994whenheworkedasAccounting

ClerkIattheBudgetCommissionuptothetimehe

wastransferred

and

promoted

to

the

DENR

as

Senior Bookkeeper. On 95, he was

hospitalized.The results of his examinations

showed that he was suffering from Acute

Myocardial Infarction and Hypertensive Vascular

Disease. From Jan May 95whenhe compulsory

retiredfromgovernmentserviceandafterserving

for36yrs,henolongerreportedforwork.Hissick

leave covering saidperiodwasdulyapproved. In

themeantime,Manioso filed a claim for income

benefitswith the GSISwhich found his ailments

workrelated. He was granted Temporary Total

Disability benefits for 2 months.He was later

grantedPermanentPartialDisabilitybenefitsfor8

months.It

appears

that

he

appealed

for

more

disability benefitswith theGSISwhich subjected

him to a series ofmedical tests. In 97, he was

brought to thePGH several timesdue toChronic

Renal Infection 2 toObstructiveUropathy 2 to

Staghorn Calculi (L) and Benign Prostatic

Hypertrophy;DiabetesMellitusNeprophaty,Stage

IV, and Hypertensive Nephrosclerosis. He then

filed a request with the GSIS for additional

disability benefits, claiming that the ailments for


14/21

USTGOLDENNOTES2011

LABORLAWTEAM:



which he was hospitalized several times in 97

developed from his workrelated illnesses. The

GSISdisapprovedManiososrequest.

DoManiososailmentswhich laterdeveloped fall

underthecategoryofpermanenttotaldisability?

A:Yes.

Under

Art.

192

(c)

of

P.D.

No.

442,

as

amended (the LC), the following disabilities are

deemed total and permanent:(1) Temporary total

disability lasting continuously for more than 120

days.UnderSection2(b),RuleVIIof theAmended

RulesonEesCompensation, [a]disability is total

and permanent if as a result of the injury or

sickness the Ee is unable to perform any gainful

occupation for a continuousperiodexceeding120

days,exceptasotherwiseprovidedunderRuleXof

theseRules. In the case at bar, Manioso was on

sick leave from Jan 11, 95 up to his date of

retirementonMay15, 95or foraperiodofmore

than120 days. Surely, theDENR, in approving his

morethan

120

days

leave

must

have

passed

upon

his Medical Certificate relative to his ailments.

Maniosos disability having lasted for more than

120days,he isentitled toPTDbenefits. (Manioso,v.GSIS,G.R.No.148323,Apr.29,2005)

Q: Does Maniosos retirement from service

preventhimfromentitlementtoPTDbenefits?

A: No. Benefits due an Ee due to workrelated

sickness shall be provided until he becomes

gainfullyemployed,oruntilhis recoveryordeath.

None of these are present in Maniosos case. It

would be an affront to justice if Manioso, a

governmentEe

who

had

served

for

36

years,

is

deprivedof thebenefitsduehim forworkrelated

ailments that resulted in his Permanent Total

Disability.(Manioso v.GSIS,G.R.No.148323,Apr.

29,2005)

TemporaryDisabilityBenefits

Q:Whendoestemporarytotaldisabilityarises?

A: Itaccruesorariseswhen the impairedphysical

and/ormentalfacultiescanberehabilitatedand/or

restoredtotheirnormalfunctions.(Sec2[t])

Q:What

benefits

are

given

for

temporary

disability?

A:

1. Member isentitled to75%ofhiscurrent

daily compensation for each day or

fractionthereofoftotaldisabilitybenefit,

to startat the4th

daybutnotexceeding

120daysinonecalendaryearwhen:

a. Hehasexhaustedallsickleaves

b. CBAsickleavebenefits

Provided,that:

i. He was in the service at time of

disability;or

ii. If separated,hehas rendered at

least 3 years of service and has

paid

at

least

6

monthly

contributions in the year

precedinghisdisability

2. The temporary total disability benefits

shallinnocasebelessthanP70aday.

Note: A member cannot enjoy the temporary total

disabilitybenefitandsickleavepaysimultaneously.

AnapplicationfordisabilitymustbefiledwiththeGSIS

within4yearsfromthedateoftheoccurrenceofthe

contingency.

SurvivorshipBenefits

Q:Whoareentitledtosurvivorshipbenefits?

A:Upon thedeathofamemberorpensioner,his

beneficiaries shall be entitled to survivorship

benefits. Suchbenefitshallconsistof:

1. The basic survivorship pension which is

50%ofthebasicmonthlypension;and

2. The dependent childrens pension not

exceeding 50% of the basic monthly

pension

Q: Under what conditions are the primary

beneficiariesentitled

to

the

basic

monthly

pension?

A: Upon the death of a member, the primary

beneficiariesshallbeentitledto:

1. Survivorshippension: Provided, That the

deceased:

a. was in theserviceat the timeofhis

death;or

b. if separated from the service, has

rendered at least 3 years of service

atthetimeofhisdeathandhaspaid

36monthly contributionswithin the

fiveyear

period

immediately

preceding his death; or has paid a

total of at least 180 monthly

contributionspriortohisdeath;or

2. The survivorship pension plus a cash

payment equivalent to 100% of his

averagemonthly compensationforevery

year of service: Provided, That the

deceasedwasintheserviceatthetimeof


15/21

SOCIALLEGISLATION

121






hisdeathwithat least3yearsofservice;

OR

3. Acashpaymentequivalentto100%ofhis

average monthly compensationfor each

yearof servicehepaidcontributions,but

not less than P12,000.00:Provided, That

thedeceased

has

rendered

at

least

3

years of service prior to his death but

does not qualify for the benefits under

item(1)or (2)ofthisparagraph. [Sec.21

(a)]

Q:Aftertheendoftheguaranteed30months,are

thebeneficiaries stillentitled to any survivorship

benefits?

A: Yes. The survivorship pension shall be paid as

follows:

1. When the dependent spouse is the only

survivor,he/she

shall

receive

the

basic

survivorshippensionforlifeoruntilheor

sheremarries;

2. When only dependent children are the

survivors, they shall be entitled to the

basic survivorship pension for as long as

they are qualified, plus the dependent

childrens pension equivalent to 10% of

the basic monthly pension for every

dependentchildnotexceeding5,counted

from the youngest and without

substitution;

3. Whenthe

survivors

are

the

dependent

spouse and the dependent children, the

dependentspouseshall receive thebasic

survivorship pension for life or until

he/she remarries, and the dependent

children shall receive the dependent

childrenspension.(Sec.21[b])

Note:Thedependentchildrenshallbeentitledtothe

survivorship pension as long as there are dependent

children and, thereafter, the surviving spouse shall

receive thebasic survivorshippension for lifeoruntil

heorsheremarries.

Q:When

are

secondary

beneficiaries

entitled

to

survivorshipbenefits?

A: In the absence of primary beneficiaries, the

secondarybeneficiariesshallbeentitledto:

1. Thecashpaymentequivalent to100%of

his average monthly compensation for

each year of service he paid

contributions, but not less than

P12,000.00:Provided,Thatthememberis

intheserviceatthetimeofhisdeathand

hasatleast3yearsofservice;or

2. Intheabsenceofsecondarybeneficiaries,

thebenefitsunder thispar. shallbepaid

tohislegalheirs.(Sec.21[c])

Q:What

are

the

benefits

that

the

beneficiaries

are

entitledtouponthedeathofthepensioner?

A:

1. Upon the death of anoldagepensioner

or a member receiving the monthly

income benefit for permanent disability,

the qualified beneficiaries shall be

entitled to the survivorship pension

defined in Sec.20of thisAct, subject to

theprovisionsofpar.(b)ofSec.21.

2. When the pensioner dies within the

period covered by the lump sum, the

survivorship pension shall be paid only

afterthe

expiration

of

the

said

period.

Q:Gary Lesengwas employed as a public school

teacherattheMarinduqueHigh.OnApril27,1997,

amemorandumwas issuedbytheschoolprincipal

designating Gary to prepare the model dam

project, which will be the official entry of the

school in the search for Outstanding Improvised

Secondary Science Equipment for Teachers. Gary

complied with his superior's instructionand took

hometheprojectto enable him to finishbefore

the deadline. While working on the model dam

project, he came to contactwith a livewire and

was electrocuted. The death certificate showed

thathe

died

of

cardiac

arrest

due

to

accidental

electrocution.

Bella (Garys commonlaw wife) and Jobo (his

onlyson)filedaclaimfordeathbenefitswiththe

GSISwhichwasdeniedonthegroundthatGarys

death did not arise out of and in the course of

employment and therefore not compensable

because the accident occurred in his house and

not in the school premises. Is Bella entitled to

file a claim for death benefits with the GSIS?

Why?

A:Thebeneficiariesofamemberof theGSISare

entitledto

the

benefits

arising

from

the

death

of said member. Death benefits are called

survivorship benefits under the GSIS Law. Not

beingabeneficiary,Bellaisnotentitled toreceive

survivorship benefits. She is not a beneficiary

becauseshe isacommonlawwifeandnota legal

dependentspouse.(1991BarQuestion)

Q: Is the cause of death of Gary (cardiac arrest


16/21

USTGOLDENNOTES2011

LABORLAWTEAM:



due to accidental electrocution in his house)

compensable?Why?

A:Yes.TobecompensableundertheGSISLaw,the

deathneednotbeworkconnected.

Q: Abraham, a policeman, was on leave for a

month.While

resting

in

their

house,

he

heard

two

of his neighbors fighting with each other.

Abraham rushed to the scene intending to

pacify the protagonists.However,hewasshotto

death by one of the protagonists. Eva Joy, a

housemaid, was Abraham's surviving spouse

whom he had abandoned for another woman

years back. When she learned of Abraham's

death, Eva Joy filed a claim with the GSIS for

death benefits. However, her claim was denied

because:(a)whenAbrahamwaskilled,hewason

leave; and (b) she was not the dependent

spouse ofAbrahamwhenhedied.Resolvewith

reasons whether GSIS is correct in denying the

claim.

A:Yes,becauseunder the law,adependent isone

who is a legitimate spouse living with theEe.

(Art.167[i],LC)In theproblemgiven,EvaJoy had

been abandoned byAbrahamwhowasthenliving

already with another woman at the time of his

death.

Moreover, Abraham was on leave when he was

killed. The 24hour duty rule does not applywhen

thepoliceman isonvacation leave.(ECCv.CA,G.R.

No. 121545, Nov. 14, 1996) Taking together

jurisprudence and the pertinent guidelines of the

ECCwith

respect

to

claims

for

death

benefits,

namely:

1. That the Ee must be at the place where

hisworkrequireshimtobe;

2. That the Ee must have been performing

hisofficialfunctions;and

3. That if the injury is sustained elsewhere,

theEemusthavebeenexecutinganorder

for theEr, it isnotdifficult tounderstand

thenwhyEva Joy'sclaimwas denied by

the GSIS. (Tancinco v. GSIS, G.R. No.

132916,Nov.16,2001)

Inthe

present

case,

Abraham

was

resting

at

his

house when the incident happened; thus, he was

not at the place where his work required him to

be.AlthoughatthetimeofhisdeathAbrahamwas

performing a police function, it cannot be said

thathis death occurred elsewhere other than the

placewhere he was supposed to be because he

was executing an order for his Er. (2005 Bar

Question)

FuneralBenefits

Q: Whatcomprisesthefuneralbenefit?

A: CashnotlessthanP12,000tobeincreasedtoat

leastP18,000after5years(specificallyyear2002).

Theamount

shall

be

determined

and

specified

by

theGSISthroughaninformationcirculardistributed

to all Ers for posting at their premises. (Sec. 23,

par.1)

Q: Whenwillitbepaid?

A: Uponthedeathof:

1. Anactivemember

2. Amemberwhohasbeenseparatedfrom

the service but is entitled to future

separationorretirementbenefits

3. Amemberwho isapensioner (excluding

survivorshippensioners)

4. A retiree who is at the time of his

retirement was of pensionable age, at

least 60 years old, who opted to retire

underRA1616 (Anactfurtheramending

Sec.12, C.A. 186, as amended, by

prescribingtwoothermodesofretirement

andforotherpurposes).

LifeInsurance

Q:Whataretheclassesoflifeinsurancecoverage?

A:

1. Compulsorylife

insurance

2. Optionallifeinsurance

Note:Theplansmaybeendowmentorordinarylife.

Q:Whendoescompulsory life insurancecoverage

takeeffect?

A: AllEes including themembersof the Judiciary

and the Constitutional Commissioners except for

MembersoftheAFP,thePNP,BFPandBJMP,shall,

under such terms and conditions as may be

promulgatedby theGSIS,becompulsorilycovered

with life insurance,which shall automatically take

effectas

follows:

1. Those employed after the effectivity of

thisAct, their insurance shall takeeffect

onthedateoftheiremployment;

2. For those whose insurance will mature

after the effectivity of this Act, their

insurance shall be deemed renewed on

the day following thematurity or expiry

dateoftheirinsurance;


17/21

SOCIALLEGISLATION

123






3. Forthosewithoutanylifeinsuranceasof

theeffectivityof thisAct, their insurance

shalltakeeffectfollowingsaideffectivity.

Q: When may a member obtain optional life

insurancecoverage?

A:

1. A member may at any time apply for

himself and/or his dependents an

insurance and/or preneed coverage

embracing:

a. Life

b. Memorialplans

c. Health

d. Education

e. Hospitalization

f. Other plans as maybe designed by

GSIS

2. Any employer may apply for group

insurancecoverage

for

its

employees.

Q:WherecanGSISloansbeinvestedin?

A:

1. In direct housing loans to members and

group housing projects secured by first

mortgage giving priority to the low

incomegroups

2. In short and medium term loans to

members such as salary, policy,

educational, emergency stock purchase

plan,andothersimilarloans

Q:What

is

the

prescriptive

period

to

claim

the

benefits?

A:

GR:4Yearsfromthedateofcontingency

XPN:Lifeinsuranceandretirement(Sec.28)

Q: What is the process for the adjudication of

claimsanddisputesregardingtheGSISbenefits?

A: ThequasijudicialfunctionsoftheGSISshallbe

vestedinitsBoardofTrustees.

1. The GSIS, in appropriate cases, or any

person whose rights are or may be

prejudiced by the operations or

enforcementofR.A.8291andother laws

administered by the GSIS, may file a

petitionbefore theGSISeitherpersonally

orthroughcounsel.

2. Within15daysfromreceiptofthenotice

ofdecisionoraward,theaggrievedparty

mayappealthedecisionoftheGSISBoard

of Trustees to the CA. Appeal shall be

taken by filling a verified petition for

reviewwith theCA. (Sec1 to5,Rule43,

RulesofCourt)

3. Whenno

appeal

is

perfected

and

there

is

noorder tostayby theBoard,bytheCA

orbytheSC,anydecisionorawardofthe

Board shallbeenforcedandexecuted in

thesamemannerasdecisionsoftheRTC.

Note:Thesocialsecuritybenefitsshallbe

exempt from attachment, garnishment,

execution, levyorotherprocesses issued

by the courts, quasijudicial bodies or

administrative agencies including the

CommissiononAudit,disallowances,and

from all financial obligations of the

members.

Q:May

amember

enjoy

the

benefits

provided

for

in theRevisedGSISActsimultaneouswithsimilar

benefitsprovidedunderother laws for the same

contingency?

A:Wheneverotherlawsprovidesimilarbenefitsfor

the same contingencies covered by this Act, the

memberwhoqualifiestothebenefitsshallhavethe

optiontochoosewhichbenefitswillbepaidtohim.

However,ifthebenefitsprovidedbythelawchosen

are less than thebenefitsprovidedunder thisAct,

theGSISshallpayonlythedifference.(Sec.55)

d.Beneficiaries

Q:Whoaretheconsideredbeneficiaries?

A:

1. Primarybeneficiaries

a. The legal dependent spouse until

he/sheremarriesand

b. Thedependentchildren.(Sec.2[g])

2. Secondarybeneficiaries

a. Thedependentparentsand

b. Subject to the restrictions on

dependent children, the legitimate

descendants.(Sec.2[h])

Q:Whoareconsidereddependents?

A:

1. Legitimatespousedependentforsupport

uponthememberorpensioner;

2. Legitimate, legitimated, legally adopted

child,includingtheillegitimatechild,

a. whoisunmarried,


18/21

USTGOLDENNOTES2011

LABORLAWTEAM:



b. notgainfullyemployed,

c. not over the age of majority, or if

over the age of majority,

incapacitated and incapable of self

supportdue toamentalorphysical

defect acquired prior to age of

majority;and

3. Parentsdependent

upon

the

member

for

support.(Sec.2[f])

3.LIMITEDPORTABILITYLAW

(RA7699)

Q: WhatistheLimitedPortabilityRule?

A: A covered worker who transfers employment

fromonesectortoanotherorisemployedonboth

sectors, shall have creditable services or

contributions on both Systems credited to his

service or contribution record in each of the

Systemsandshallbetotalizedforpurposesofold

age,disability,

survivorship,

and

other

benefits

in

eitherorbothSystems.(Sec.3)

All contributionspaidby suchmemberpersonally,

andthosethatwerepaidbyhisemployerstoboth

Systems shall be considered in the processing of

benefits which he can claim from either or both

Systems.(Sec.4)

Q:Howarethe"portability"provisionsofR.A.No.

7699 beneficial or advantageous to SSS andGSIS

members in termsof theircreditableemployment

servicesintheprivatesectororthegovernment,as

the casemaybe, forpurposesofdeath,disability

orretirement?

A: Portability provisions of R.A. No. 7699 shall

benefit a covered worker whose creditable

servicesorcontributions inboth systemscredited

tohisserviceorcontributionrecord ineachofthe

systemand shallbe totalized forpurposesofold

age, disability, survivorship and other benefits.

(Sec. 3)

The"portability"provisionsofR.A.7699allowthe

transferoffundsfortheaccountandbenefitofthe

workerwhotransfersfromonesystemtoanother.

Thisis

advantageous

to

the

SSS

and

GSIS

members

for purposes of death, disability or retirement

benefits. In theevent theemployees transfer from

theprivatesectortothepublicsector,orviceversa,

their creditable employment services and

contributions are carried over and transferred as

well.(2005BarQuestion)

4.EMPLOYEESSCOMPENSATION

Q: Discuss briefly the Employees Compensation

Program(ECP).

A: It is theprogramprovided for inArticle166 to

208 of the Labor Code whereby a fund known as

theState

Insurance

Fund

(SIF)

is

established

throughpremiumpaymentsexacted from Ers and

from which the Ees and their dependents in the

event of workconnected disability or death, may

promptly secure adequate income benefit, and

medicalorrelatedbenefits.

Coverage

Q: WhoaresubjecttocoverageundertheECP?

A:ErsandtheirEesnotoversixty(60)yearsofage

are subject to compulsory coverage under this

program.

TheErmaybelongtoeitherthe:

1. Public sectorcoveredby theGSIS,comprising

the National Government, including GOCCs,

PhilippineTuberculosesSociety,thePhilippine

NationalRedCros,andthePhilippineVeterans

Bank;and

2. Private sectorcoveredby theSSS, comprising

all Ers other than those defined in the

immediatelyprecedingparagraph.

TheEemaybelongtoeitherthe:

1. Public

sector

comprising

the

employed

workers who are covered by the GSIS,

including the members of the AFP, elective

officials who are receiving regular salary and

any person employed as casual emergency,

temporary,substituteorcontractual;

2. Private sector comprising the employed

workerswhoarecoveredbytheSSS.

Q:Whendoescompulsorycoveragetakeeffect?

A:

1. Employeronthefirstdayofoperation

2. Employee

on

the

day

of

his

employment

Q:WhatisanOccupationalDisease?

A: One which results from the nature of the

employment, and by nature is meant conditions

which all Ees of a class are subject and which

produce the disease as a natural incident of a

particular occupation, and attach to that


19/21

SOCIALLEGISLATION

125






occupationahazardwhichdistinguishesitfromthe

usual run of occupations and is in excess of the

hazardattendingtheemploymentingeneral

To be occupational, the disease must be one

wholly due to causes and conditions which are

normalandconstantlypresentandcharacteristicof

theparticular

occupation.

Q:WhatisSickness?

A: It means any illness definitely accepted as an

occupational disease listed by the Commission or

anyillnesscausedbyemployment,subjecttoproof

thattheriskofcontractingthesameisincreasedby

workingconditions(Art.167(l),LC).

Q:DiscussbrieflythetheoryofIncreasedRisk.

A:ThetermsicknessasdefinedinArticle167(l)of

the Labor Code is a recognition of the theory of

increasedrisk.

To

establish

compensability

under

thesame,theclaimantmustshowsubstantialproof

ofworkconnection,butwhat isrequired ismerely

a reasonable workconnection and not a direct

causalrelation. Proofofactualcauseoftheailment

isnotnecessary.Thetestofevidenceofrelationof

thediseasewiththeemploymentisprobabilityand

notcertainty.(Jimenezv.EmployeesCompensation

Commission, G.R. No. L58176, March 23, 1984;

Panotesvs.ECC,G.R.No.L64802,March29,1984)

Q: May an illness not listed by the Employees

Compensation Commission as an occupational

diseasebecompensable?

A:Wherethe illness isnot listedbytheEmployees

Compensation Commission as an occupational

disease, it must be established that the risk of

contracting the same is increased by working

conditions.

Q:Whatdefensesmaybe interposedbytheState

Insurance Fund (SIF) against a claim for

compensation made by a covered Ee or his

dependents?

A:Thefollowingdefensesmaybesetup:

1. Injuryis

not

work

connected

or

the

sicknessisnotoccupational

2. Disabilityordeathwasoccasionedbythe

Eesintoxication,wilfulintentiontoinjure

orkillhimselforanother,orhisnotorious

negligence(Art.172,LC)

3. Nonoticeofsickness,injuryordeathwas

giventotheEr(Art.206,LC)

4. Claim was filed beyond three (3) years

fromthetimethecauseofactionaccrued

(Art.201,LC,asamendedbyP.D.1921)

Note: Notorious negligence is equivalent to gross

negligence; it is something more than mere

carelessness orlackofforesight.

Q: Abraham Dino works as a deliveryman in a

construction supply establishment owned by

Abraham Julius.Oneday,whileDinowasmaking

reportsonhisdelivery,hehadanaltercationwith

Julius; irkedbythedisrespectfulattitudeofDino,

JuliuspulledouthisgunandshotDino,hittinghim

in the spinal column and paralyzing him

completely.Juliuswasprosecutedfortheact.

1. Is the disability suffered by Abraham Dinocompensable?

2. IfAbrahamDinorecoverscompensationfromthe SIF, can he still recover from Abraham

Juliusdamages

in

the

criminal

case?

Why?

A:

1. Yes.TheinjurywassustainedbyAbrahamDino

in his place of work and while in the

performanceofhisofficialfunctions.

2. No. Under Article 173 of the Labor Code, as

amendedbyP.D.1921,theliabilityoftheState

Insurance Fund under the Employees

CompensationProgram shallbeexclusiveand

inplaceofallother liabilitiesof theEr to the

Ee or his dependents or anyone otherwise

entitled to recoverdamagesonbehalfof the

Eeor

his

dependents.

Q: SocratesBenjie, a truck driver employed by a

local construction company, was injured in an

accident while on assignment in one of his

employers project in Iraq. Considering that his

injury was sustained in a foreign country, is

SocratesBenjieentitledtobenefitsundertheECP?

A:Yes.Filipinosworkingabroadintheserviceofan

Er, domestic or foreign, who carries on in the

Philippines any trade, business, industry,

undertakingoractivityofanykind,arecoveredby

theECP.(Rule1,Section5,ECCRules;Art.169,LC)

Q:What is the Going and ComingRule? Is this

ruleabsolute?

A:GR: In theabsenceofspecialcircumstances,an

Ee injuredwhilegoing toorcomingfromhisplace

ofworkisexcludedfromthebenefitsofWorkmens

CompensationAct.

XPNS:


20/21

USTGOLDENNOTES2011

LABORLAWTEAM:



1. WheretheEeisproceedingtoorfromhis

workonthepremisesoftheEr;

2. ProximityRulewheretheEe isaboutto

enterorabout to leave thepremises of

his Er by way of exclusive or customary

meansofingressandegress;

3. Eeischarged,whileonhiswaytoorfrom

hisplace

of

employment

or

at

his

home,

or during this employment with some

dutyorspecialerrandconnectedwithhis

employment;and

4. Where the Er as an incident of the

employment provides the means of

transportation to and from the place of

employment.

Q:WhoareentitledtobenefitsundertheECP?

A: ThecoveredEe,hisdependents,and incaseof

hisdeath,hisbeneficiaries.

Q:Who

are

the

dependents

of

the

Ee?

A:

1. Legitimate, legitimated, legally adopted

or acknowledged natural child who is

unmarried, not gainfully employed, and

notover twentyone (21)yearsofageor

over twentyone (21) years of age

provided he is incapacitated and

incapableofselfsupportduetoaphysical

or mental defect which is congenital or

acquiredduringminority;

2. LegitimatespouselivingwiththeEe;and

3. ParentsofsaidEewhollydependentupon

himfor

regular

support.

(Art.167(i),

LC,

as

amendedbyP.D.1921)

Q:Whoareincludedinthetermbeneficiaries?

A: "Beneficiaries" means the dependent spouse

untilheremarriesanddependentchildren,whoare

the primary beneficiaries. In their absence, the

dependent parents and subject to the restrictions

imposed on dependent children, the illegitimate

children and legitimate descendants who are the

secondary beneficiaries;Provided, that the

dependent acknowledged natural child shall be

consideredasaprimarybeneficiarywhenthereare

noother

dependent

children

who

are

qualified

and

eligibleformonthlyincomebenefit.(Art.167,LC,as

amendedbySec.I,P.D.1921)

Q:What are the benefitswhichmay be enjoyed

undertheSIF?

A:

1. MedicalBenefits

2. DisabilityBenefits

3. DeathBenefits

4. FuneralBenefits

MedicalBenefit

Q: What are the conditions of entitlement to

MedicalServices?

A:ForanEetobeentitledtomedicalservices,the

followingconditionsmustbesatisfied:

1. HehasbeendulyreportedtotheSystem

(SSSorGSIS);

2. He sustains a permanent disability as a

resultofaninjuryorsickness;and

3. TheSystemhasbeennotifiedoftheinjury

orsicknesswhichcausedhisdisability.

DisabilityBenefit

Q:Whataredisabilitybenefits?

A: They are incomebenefits in caseof temporary

total disability, permanent total disability and

permanentpartialdisability

Q: What are the disabilities that are considered

totalandpermanent?

A: The followingdisabilities shallbedeemed total

andpermanent:

1. Temporary total disability lasting

continuously formore thanonehundred

twenty days, except as otherwise

providedforintheRules;

3. Completeloss

of

sight

of

both

eyes;

4. Lossoftwolimbsatorabovetheankleor

wrist;

5. Permanent complete paralysis of two

limbs;

6. Brain injury resulting in incurable

imbecilityorinsanity;and

7. SuchcasesasdeterminedbytheMedicalDirector of the System and approved by

theCommission.(Art.192(c),LC)

Q: May a permanent partial disability be

converted to permanent total disability after the

Eesretirement?Why?

A:Yes.Thisisinlinewiththesocialjusticeprovision

in the Constitution. A persons disability may not

manifest itselffullyatoneprecisemoment in time

but rather over a period of time. And disability

should not be understood more on its medical

significancebutonthelossofearningcapacity.


21/21

SOCIALLEGISLATION

127UNIVERSITY OF SANTO TOMASACADEMICSCHAIR:LESTERJAYALANE.FLORESII


Q:Maypermanent totaldisability arise although

the Ees does not lose the use of any part of his

body?

A: Yes.Where the Ee is unable, by reason of the

injuryorsickness,toperformhiscustomaryjobfor

more than 120 days, permanent total disability

arises.(Ijares

vs.

CA,

G.R.

No.

105854,

August

26,

1999)

DeathBenefit

Q: What are the conditions for entitlement to

deathbenefits?

A: The beneficiaries of a deceased Ee shall be

entitledtoan incomebenefit ifallofthefollowing

conditionsaresatisfied:

1. The Ee has been duly reported to the

System;

2. Hedied

as

aresult

of

an

injury

or

sickness;and

3. TheSystemhasbeendulynotifiedof

ust golden notes 2011 - social legislation

Documents