LABOR CODE onpart-time basis, and not less than eight (8)

hours, in the case of those employed on full-

BOOK FOUR: HEALTH, SAFETY AND time basis. Where the undertaking is non-
SOCIAL WELFARE BENEFITS hazardous in nature, the physician and
dentist may be engaged on retainer basis,
Title I: MEDICAL, DENTAL AND subject to such regulations as the Secretary
OCCUPATIONAL SAFETY of Labor and Employment may prescribe to
Chapter I insure immediate availability of medical and
MEDICAL AND DENTAL SERVICES dental treatment and attendance in case of
Art. 156. First-aid treatment. Every emergency. (As amended by Presidential
employer shall keep in his establishment Decree NO.570-A, Section 26)
such first-aid medicines and equipment as Art. 158. When emergency hospital not
the nature and conditions of work may required. The requirement for an
require, in accordance with such regulations emergency hospital or dental clinic shall not
as the Department of Labor and Employment be applicable in case there is a hospital or
shall prescribe. dental clinic which is accessible from the
The employer shall take steps for the training employer’s establishment and he makes
of a sufficient number of employees in first- arrangement for the reservation therein of
aid treatment. the necessary beds and dental facilities for
Art. 157. Emergency medical and dental the use of his employees.
services. It shall be the duty of every Art. 159. Health program. The physician
employer to furnish his employees in any engaged by an employer shall, in addition to
locality with free medical and dental his duties under this Chapter, develop and
attendance and facilities consisting of: implement a comprehensive occupational
a. The services of a full-time registered nurse health program for the benefit of the
when the number of employees exceeds fifty employees of his employer.
(50) but not more than two hundred (200) Art. 160. Qualifications of health
except when the employer does not maintain personnel. The physicians, dentists and
hazardous workplaces, in which case, the nurses employed by employers pursuant to
services of a graduate first-aider shall be this Chapter shall have the necessary
provided for the protection of workers, where training in industrial medicine and
no registered nurse is available. The occupational safety and health. The
Secretary of Labor and Employment shall Secretary of Labor and Employment, in
provide by appropriate regulations, the consultation with industrial, medical, and
services that shall be required where the occupational safety and health associations,
number of employees does not exceed fifty shall establish the qualifications, criteria and
(50) and shall determine by appropriate conditions of employment of such health
order, hazardous workplaces for purposes of personnel.
this Article; Art. 161. Assistance of employer. It shall
b. The services of a full-time registered be the duty of any employer to provide all
nurse, a part-time physician and dentist, and the necessary assistance to ensure the
an emergency clinic, when the number of adequate and immediate medical and dental
employees exceeds two hundred (200) but attendance and treatment to an injured or
not more than three hundred (300); and sick employee in case of emergency.
c. The services of a full-time physician,
dentist and a full-time registered nurse as Chapter II
well as a dental clinic and an infirmary or OCCUPATIONAL HEALTH AND SAFETY
emergency hospital with one bed capacity Art. 162. Safety and health
for every one hundred (100) employees standards. The Secretary of Labor and
when the number of employees exceeds Employment shall, by appropriate orders, set
three hundred (300). and enforce mandatory occupational safety
In cases of hazardous workplaces, no and health standards to eliminate or reduce
employer shall engage the services of a occupational safety and health hazards in all
physician or a dentist who cannot stay in the workplaces and institute new, and update
premises of the establishment for at least existing, programs to ensure safe and
two (2) hours, in the case of those engaged
healthful working conditions in all places of EMPLOYEES’ COMPENSATION AND STATE
employment. INSURANCE FUND
Art. 163. Research. It shall be the Chapter I
responsibility of the Department of Labor and POLICY AND DEFINITIONS
Employment to conduct continuing studies Art. 166. Policy. The State shall promote
and research to develop innovative methods, and develop a tax-exempt employees’
techniques and approaches for dealing with compensation program whereby employees
occupational safety and health problems; to and their dependents, in the event of work-
discover latent diseases by establishing connected disability or death, may promptly
causal connections between diseases and secure adequate income benefit and medical
work in environmental conditions; and to related benefits.
develop medical criteria which will assure Art. 167. Definition of terms. As used in
insofar as practicable that no employee will this Title, unless the context indicates
suffer impairment or diminution in health, otherwise:
functional capacity, or life expectancy as a a. "Code" means the Labor Code of the
result of his work and working conditions. Philippines instituted under Presidential
Art. 164. Training programs. The Decree Numbered four hundred forty-two, as
Department of Labor and Employment shall amended.
develop and implement training programs to b. "Commission" means the Employees’
increase the number and competence of Compensation Commission created under
personnel in the field of occupational safety this Title.
and industrial health. c. "SSS" means the Social Security System
Art. 165. Administration of safety and created under Republic Act Numbered Eleven
health laws. hundredsixty-one, as amended.
a. The Department of Labor and Employment d. "GSIS" means the Government Service
shall be solely responsible for the Insurance System created under
administration and enforcement of Commonwealth Act Numbered One
occupational safety and health laws, hundred eighty-six, as amended.
regulations and standards in all e. "System" means the SSS or GSIS, as the
establishments and workplaces wherever case may be.
they may be located; however, chartered f. "Employer" means any person, natural or
cities may be allowed to conduct industrial juridical, employing the services of the
safety inspections of establishments within employee.
their respective jurisdictions where they have g. "Employee" means any person
adequate facilities and competent personnel compulsorily covered by the GSIS under
for the purpose as determined by the Commonwealth Act Numbered One
Department of Labor and Employment and hundred eighty-six, as amended, including
subject to national standards established by the members of the Armed Forces of the
the latter. Philippines, and any person employed as
b. The Secretary of Labor and Employment casual, emergency, temporary, substitute or
may, through appropriate regulations, collect contractual, or any person compulsorily
reasonable fees for the inspection of steam covered by the SSS under Republic Act
boilers, pressure vessels and pipings and Numbered Eleven hundred sixty-one, as
electrical installations, the test and approval amended.
for safe use of materials, equipment and h. "Person" means any individual,
other safety devices and the approval of partnership, firm, association, trust,
plans for such materials, equipment and corporation or legal representative thereof.
devices. The fee so collected shall be i. "Dependent" means the legitimate,
deposited in the national treasury to the legitimated or legally adopted or
credit of the occupational safety and health acknowledged natural child who is
fund and shall be expended exclusively for unmarried, not gainfully employed, and not
the administration and enforcement of safety over twenty-one (21) years of age or
and other labor laws administered by the over twenty-one (21) years of age provided
Department of Labor and Employment. he is incapacitated and incapable of self-
support due to a physical or mental defect
Title II which is congenital or acquired during
minority; the legitimate spouse living with government or private, authorized by law, an
the employee and the parents of said active member in good standing of the
employee wholly dependent upon him for Philippine Hospital Association and
regular support. accredited by the Commission.
j. "Beneficiaries" means the dependent v. "Physician" means any doctor of medicine
spouse until he/she remarries and dependent duly licensed to practice in the Philippines,
children, who are the primary beneficiaries. an active member in good standing of the
In their absence, the dependent parents and Philippine Medical Association and accredited
subject to the restrictions imposed on by the Commission.
dependent children, the illegitimate children w. "Wages" or "Salary", insofar as they refer
and legitimate descendants, who are the to the computation of benefits defined in
secondary beneficiaries: Provided, That the Republic Act No. 1161, as amended, for SSS
dependent acknowledged natural child shall and Presidential Decree No. 1146, as
be considered as a primary beneficiary when amended, for GSIS, respectively, except that
there are no other dependent children who part in excess of Three Thousand Pesos.
are qualified and eligible for monthly income x. "Monthly salary credit" means the wage or
benefit. salary base for contributions as provided in
k. "Injury" means any harmful change in Republic Act Numbered Eleven
the human organism from any accident hundred sixty-one, as amended, or the
arising out of and in the course of the wages or salary.
employment. y. "Average monthly salary credit" in the case
l. "Sickness" means any illness definitely of the SSS means the result obtained by
accepted as an occupational disease listed dividing the sum of the monthly salary
by the Commission, or any illness caused by credits in the sixty-month period immediately
employment subject to proof that the risk of following the semester of death or
contracting the same is increased by working permanent disability by sixty (60), except
conditions. For this purpose, the Commission where the month of death or permanent
is empowered to determine and approve disability falls within eighteen (18) calendar
occupational diseases and work- months from the month of coverage, in
related illnesses that may be considered which case, it is the result obtained by
compensable based on peculiar hazards of dividing the sum of all monthly salary credits
employment. paid prior to the month of contingency by the
m. "Death" means loss of life resulting from total number of calendar months of coverage
injury or sickness. in the same period.
n. "Disability" means loss or impairment of a z. "Average daily salary credit" in the case of
physical or mental function resulting from the SSS means the result obtained by
injury or sickness. dividing the sum of the six (6) highest
o. "Compensation" means all payments monthly salary credits in the twelve-
made under this Title for income benefits and month period immediately preceding the
medical or related benefits. semester of sickness or injury by one
p. "Income benefit" means all payments hundred eighty (180), except where the
made under this Title to the providers of month of injury falls within twelve (12)
medical care, rehabilitation services and calendar months from the first month of
hospital care. coverage, in which case it is the result
q. "Medical benefit" means all payments obtained by dividing the sum of all monthly
made under this Title to the providers of salary credits by thirty (30) times the
medical care, rehabilitation services and number of calendar months of coverage in
hospital care. the period.
r. "Related benefit" means all payments In the case of the GSIS, the average daily
made under this Title for appliances and salary credit shall be the actual daily salary
supplies. or wage, or the monthly salary or wage
s. "Appliances" means crutches, artificial aids divided by the actual number of working
and other similar devices. days of the month of contingency.
t. "Supplies" means medicine and other aa. "Quarter" means a period of three (3)
medical, dental or surgical items. consecutive months ending on the last days
u. "Hospital" means any medical facility, of March, June, September and December.
bb. "Semester" means a period of two Art. 171. Registration. Each employer and
consecutive quarters ending in the quarter of his employees shall register with the System
death, permanent disability, injury or in accordance with its regulations.
sickness. Art. 172. Limitation of liability. The State
cc. "Replacement ratio" - The sum of twenty Insurance Fund shall be liable for
percent and the quotient obtained by compensation to the employee or his
dividing three hundred by the sum of three dependents, except when the disability or
hundred forty and the average monthly death was occasioned by the employee’s
salary credit. intoxication, willful intention to injure or kill
dd. "Credited years of service" - For a himself or another, notorious negligence, or
member covered prior to January, 1975, otherwise provided under this Title.
nineteen hundred seventy-five minus the Art. 173. Extent of liability. Unless
calendar year of coverage, plus the number otherwise provided, the liability of the State
of calendar years in which six or more Insurance Fund under this Title shall be
contributions have been paid from January, exclusive and in place of all other liabilities of
1975 up to the calendar year containing the the employer to the employee, his
semester prior to the contingency. For a dependents or anyone otherwise entitled to
member covered on or after January, 1975, receive damages on behalf of the employee
the number of calendar years in which six or or his dependents. The payment of
more contributions have been paid from the compensation under this Title shall not bar
year of coverage up to the calendar year the recovery of benefits as provided for in
containing the semester prior to the Section 699 of the Revised Administrative
contingency. Code, Republic Act Numbered Eleven
ee. "Monthly income benefit" means the hundred sixty-one, as amended, Republic Act
amount equivalent to one hundred fifteen Numbered Forty-eight hundred sixty-four as
percent of the sum of the average monthly amended, and other laws whose benefits are
salary credit multiplied by the replacement administered by the System or by other
ratio, and one and a half percent of the agencies of the government. (As amended by
average monthly salary credit for each Presidential Decree No. 1921).
credited year of service in excess of ten Art. 174. Liability of third party/ies.
years: Provided, That the monthly income a. When the disability or death is caused by
benefit shall in no case be less than two circumstances creating a legal liability
hundred fifty pesos against a third party, the disabled employee
or the dependents, in case of his death, shall
Chapter II be paid by the System under this Title. In
COVERAGE AND LIABILITY case benefit is paid under this Title, the
Art. 168. Compulsory System shall be subrogated to the rights of
coverage. Coverage in the State Insurance the disabled employee or the dependents, in
Fund shall be compulsory upon all employers case of his death, in accordance with the
and their employees not over sixty (60) general law.
years of age: Provided, That an employee b. Where the System recovers from such
who is over (60) years of age and paying third party damages in excess of those paid
contributions to qualify for the retirement or or allowed under this Title, such excess shall
life insurance benefit administered by the be delivered to the disabled employee or
System shall be subject to compulsory other persons entitled thereto, after
coverage. deducting the cost of proceedings and
Art. 169. Foreign employment. The expenses of the System.
Commission shall ensure adequate coverage Art. 175. Deprivation of the
of Filipino employees employed abroad, benefits. Except as otherwise provided
subject to regulations as it may prescribe. under this Title, no contract, regulation or
Art. 170. Effective date of device whatsoever shall operate to deprive
coverage. Compulsory coverage of the the employee or his dependents of any part
employer during the affectivity of this Title of the income benefits and medical or related
shall take effect on the first day of his services granted under this Title. Existing
operation, and that of the employee, on the medical services being provided by the
date of his employment.
employer shall be maintained and continued No. 1368)
to be enjoyed by their employees. Art. 177. Powers and duties. The
Commission shall have the following powers
and duties:
Chapter III a. To assess and fix a rate of contribution
ADMINISTRATION from all employers;
Art. 176. Employees’ Compensation b. To determine the rate of contribution
Commission. payable by an employer whose records show
a. To initiate, rationalize, and coordinate the a high frequency of work accidents or
policies of the employees’ compensation occupational diseases due to failure by the
program, the Employees’ Compensation said employer to observe adequate safety
Commission is hereby created to be measures;
composed of five ex-officio members, c. To approve rules and regulations governing
namely: the Secretary of Labor and the processing of claims and the settlement
Employment as Chairman, the GSIS General of disputes arising therefrom as prescribed
Manager, the SSS Administrator, the by the System;
Chairman of the Philippine Medical Care d. To initiate policies and programs toward
Commission, and the Executive Director of adequate occupational health and safety and
the ECC Secretariat, and two appointive accident prevention in the working
members, one of whom shall represent the environment, rehabilitation other than those
employees and the other, the employers, to provided for under Article 190 hereof, and
be appointed by the President of the other related programs and activities, and to
Philippines for a term of six years. The appropriate funds therefor; (As amended by
appointive member shall have at least five Section 3, Presidential Decree No. 1368)
years experience in workmen’s e. To make the necessary actuarial studies
compensation or social security programs. All and calculations concerning the grant of
vacancies shall be filled for the unexpired constant help and income benefits for
term only. (As amended by Section 19 [c], permanent disability or death and the
Executive Order No. 126) rationalization of the benefits for permanent
b. The Vice Chairman of the Commission disability and death under the Title with
shall be alternated each year between the benefits payable by the System for similar
GSIS General Manager and the SSS contingencies: Provided, That the
Administrator. The presence of four members Commission may upgrade benefits and add
shall constitute a quorum. Each member new ones subject to approval of the
shall receive a per diem of two hundred President: and Provided, further, That the
pesos for every meeting that is actually actuarial stability of the State Insurance Fund
attended by him, exclusive of actual, shall be guaranteed: Provided, finally, That
ordinary and necessary travel and such increases in benefits shall not require
representation expenses. In his absence, any any increases in contribution, except as
member may designate an official of the provided for in paragraph (b) hereof; (As
institution he serves on full-time basis as his amended by Section 3, Presidential Decree
representative to act in his behalf. (As No. 1641)
amended by Section 2, Presidential Decree f. To appoint the personnel of its staff, subject
No.1368) to civil service law and rules, but exempt
c. The general conduct of the operations and from WAPCO law and regulations;
management functions of the GSIS or SSS g. To adopt annually a budget of
under this Title shall be vested in its expenditures of the Commission and its staff
respective chief executive officers, who shall chargeable against the State Insurance Fund:
be immediately responsible for carrying out Provided, That the SSS and GSIS shall
the policies of the Commission. advance on a quarterly basis, the
d. The Commission shall have the status and remittances of allotment of the loading fund
category of a government corporation, and it for the Commission’s operational expenses
is hereby deemed attached to the based on its annual budget as duly approved
Department of Labor and Employment for by the Department of Budget and
policy coordination and guidance. (As Management; (As amended by Section 3,
amended by Section 2, Presidential Decree Presidential Decree No. 1921)
h. To have the power to administer oath and jurisdiction to settle any dispute arising from
affirmation, and to issue subpoena and this Title with respect to coverage,
subpoena duces tecum in connection with entitlement to benefits, collection and
any question or issue arising from appealed payment of contributions and penalties
cases under this Title; thereon, or any other matter related thereto,
i. To sue and be sued in court; subject to appeal to the Commission, which
j. To acquire property, real or personal, which shall decide appealed cases within twenty
may be necessary or expedient for the (20) working days from the submission of the
attainment of the purposes of this Title; evidence.
k. To enter into agreements or contracts for Art. 181. Review. Decisions, orders or
such services and as may be needed for the resolutions of the Commission may be
proper, efficient and stable administration of reviewed on certiorari by the Supreme Court
the program; on question of law upon petition of an
l. To perform such other acts as it may deem aggrieved party within ten (10) days from
appropriate for the attainment of the notice thereof.
purposes of the Commission and proper Art. 182. Enforcement of decisions.
enforcement of the provisions of this Title. a. Any decision, order or resolution of the
(As amended by Section 18, Presidential Commission shall become final and
Decree No. 850) executory if no appeal is taken therefrom
Art. 178. Management of funds. All within ten (10) days from notice thereof. All
revenues collected by the System under this awards granted by the Commission in cases
Title shall be deposited, invested, appealed from decisions of the System shall
administered and disbursed in the same be effected within fifteen days from receipt
manner and under the same conditions, of notice.
requirements and safeguards as provided by b. In all other cases, decisions, orders and
Republic Act Numbered eleven resolutions of the Commission which have
hundred sixty-one, as amended, with regard become final and executory shall be enforced
to such other funds as are thereunder being and executed in the same manner as
paid to or collected by the SSS and GSIS, decisions of the Court of First Instance, and
respectively: Provided, That the Commission, the Commission shall have the power to
SSS and GSIS may disburse each year not issue to the city or provincial sheriff or to the
more than twelve percent of the contribution sheriff whom it may appoint, such writs of
and investment earnings collected for execution as may be necessary for the
operational expenses, including occupational enforcement of such decisions, orders or
health and safety programs, incidental to the resolutions, and any person who shall fail or
carrying out of this Title. refuse to comply therewith shall, upon
Art. 179. Investment of funds. Provisions application by the Commission, be punished
of existing laws to the contrary by the proper court for contempt.
notwithstanding, all revenues as are not
needed to meet current operational Chapter IV
expenses under this Title shall be CONTRIBUTIONS
accumulated in a fund to be known as the Art. 183. Employers’ contributions.
State Insurance Fund, which shall be used a. Under such regulations as the System may
exclusively for payment of the benefits under prescribe, beginning as of the last day of the
this Title, and no amount thereof shall be month when an employee’s compulsory
used for any other purpose. All amounts coverage takes effect and every month
accruing to the State Insurance Fund, which thereafter during his employment, his
is hereby established in the SSS and GSIS, employer shall prepare to remit to the
respectively, shall be deposited with any System a contribution equivalent to one
authorized depository bank approved by the percent of his monthly salary credit.
Commission, or invested with due and b. The rate of contribution shall be reviewed
prudent regard for the liquidity needs of the periodically and subject to the limitations
System. (As amended by Section 4, herein provided, may be revised as the
Presidential Decree No. 1368) experience in risk, cost of administration and
Art. 180. Settlement of claims. The actual or anticipated as well as unexpected
System shall have original and exclusive losses, may require.
c. Contributions under this Title shall be paid Art. 188. Refusal of examination or
in their entirety by the employer and any treatment. If the employee unreasonably
contract or device for the deductions of any refuses to submit to medical examination or
portion thereof from the wages or salaries of treatment, the System shall stop the
the employees shall be null and void. payment of further compensation during
d. When a covered employee dies, becomes such time as such refusal continues. What
disabled or is separated from employment, constitutes an unreasonable refusal shall be
his employer’s obligation to pay the monthly determined by the System which may, on its
contribution arising from that employment own initiative, determine the necessity,
shall cease at the end of the month of character and sufficiency of any medical
contingency and during such months that he services furnished or to be furnished.
is not receiving wages or salary. Art. 189. Fees and other charges. All fees
Art. 184. Government guarantee. The and other charges for hospital services,
Republic of the Philippines guarantees the medical care and appliances, including
benefits prescribed under this Title, and professional fees, shall not be higher than
accepts general responsibility for the those prevailing in wards of hospitals for
solvency of the State Insurance Fund. In case similar services to injured or sick persons in
of any deficiency, the same shall be covered general and shall be subject to the
by supplemental appropriations from the regulations of the Commission. Professional
national government. fees shall only be appreciably higher than
those prescribed under Republic Act
Numbered sixty- one hundred eleven, as
Chapter V amended, otherwise known as the Philippine
MEDICAL BENEFITS Medical Care Act of 1969.
Art. 185. Medical services. Immediately
after an employee contracts sickness or
sustains an injury, he shall be provided by Art. 190. Rehabilitation services.
the System during the subsequent period of a. The System shall, as soon as practicable,
his disability with such medical services and establish a continuing program, for the
appliances as the nature of his sickness or rehabilitation of injured and handicapped
injury and progress of his recovery may employees who shall be entitled to
require, subject to the expense limitation rehabilitation services, which shall consist of
prescribed by the Commission. medical, surgical or hospital treatment,
Art. 186. Liability. The System shall have including appliances if they have been
the authority to choose or order a change of handicapped by the injury, to help them
physician, hospital or rehabilitation facility become physically independent.
for the employee, and shall not be liable for b. As soon as practicable, the System shall
compensation for any aggravation of the establish centers equipped and staffed to
employee’s injury or sickness resulting from provide a balanced program of remedial
unauthorized changes by the employee of treatment, vocational assessment and
medical services, appliances, supplies, preparation designed to meet the individual
hospitals, rehabilitation facilities or needs of each handicapped employee to
physicians. restore him to suitable employment,
Art. 187. Attending physician. Any including assistance as may be within its
physician attending an injured or sick resources, to help each rehabilitee to
employee shall comply with all the develop his mental, vocational or social
regulations of the System and submit reports potential.
in prescribed forms at such time as may be
required concerning his condition or
treatment. All medical information relevant Chapter VI
to the particular injury or sickness shall, on DISABILITY BENEFITS
demand, be made available to the employee Art. 191. Temporary total disability.
or the System. No information developed in a. Under such regulations as the Commission
connection with treatment or examination for may approve, any employee under this Title
which compensation is sought shall be who sustains an injury or contracts sickness
considered as privileged communication. resulting in temporary total disability shall,
for each day of such a disability or fraction Director of the System and approved by the
thereof, be paid by the System an income Commission.
benefit equivalent to ninety percent of his d. The number of months of paid coverage
average daily salary credit, subject to the shall be defined and approximated by a
following conditions: the daily income benefit formula to be approved by the Commission.
shall not be less than Ten Pesos nor more Art. 193. Permanent partial disability.
than Ninety Pesos, nor paid for a continuous a. Under such regulations as the Commission
period longer than one hundred twenty days, may approve, any employee under this Title
except as otherwise provided for in the who contracts sickness or sustains an injury
Rules, and the System shall be notified of the resulting in permanent partial disability shall,
injury or sickness. (As amended by Section 2, for each month not exceeding the period
Executive Order No. 179) designated herein, be paid by the System
b. The payment of such income benefit shall during such a disability an income benefit for
be in accordance with the regulations of the permanent total disability.
Commission. (As amended by Section 19, b. The benefit shall be paid for not more than
Presidential Decree No. 850) the period designated in the following
Art. 192. Permanent total disability. schedules:
a. Under such regulations as the Commission Complete and permanent No. of Months loss
may approve, any employee under this Title of the use of
who contracts sickness or sustains an injury One thumb - 10 One index finger - 8
resulting in his permanent total disability One middle finger - 6 One ring finger - 5 One
shall, for each month until his death, be paid little finger - 3 One big toe - 6
by the System during such a disability, an One toe - 3 One arm - 50 One hand - 39 One
amount equivalent to the monthly income foot - 31 One leg - 46 One ear - 10 Both ears
benefit, plus ten percent thereof for each - 20
dependent child, but not exceeding five, Hearing of one ear - 10 Hearing of both ears -
beginning with the youngest and without 50 Sight of one eye - 25
substitution: Provided, That the monthly c. A loss of a wrist shall be considered as a
income benefit shall be the new amount of loss of the hand, and a loss of an elbow shall
the monthly benefit for all covered be considered as a loss of the arm. A loss of
pensioners, effective upon approval of this an ankle shall be considered as loss of a foot,
Decree. and a loss of a knee shall be considered as a
b. The monthly income benefit shall be loss of the leg. A loss of more than one joint
guaranteed for five years, and shall be shall be considered as a loss of one-half of
suspended if the employee is gainfully the whole finger or toe: Provided, That such a
employed, or recovers from his permanent loss shall be either the functional loss of the
total disability, or fails to present himself for use or physical loss of the member. (As
examination at least once a year upon notice amended by Section 7, Presidential Decree
by the System, except as otherwise provided No. 1368)
for in other laws, decrees, orders or Letters d. In case of permanent partial disability less
of Instructions. (As amended by Section 5, than the total loss of the member specified in
Presidential Decree No. 1641) the preceding paragraph, the same monthly
c. The following disabilities shall be deemed income benefit shall be paid for a portion of
total and permanent: the period established for the total loss of
1. Temporary total disability lasting the member in accordance with the
continuously for more than one hundred proportion that the partial loss bears to the
twenty days, except as otherwise provided total loss. If the result is a decimal fraction,
for in the Rules; the same shall be rounded off to the next
2. Complete loss of sight of both eyes; higher integer.
3. Loss of two limbs at or above the ankle or e. In cases of simultaneous loss of more than
wrist; one member or a part thereof as specified in
4. Permanent complete paralysis of two this Article, the same monthly income benefit
limbs; shall be paid for a period equivalent to the
5. Brain injury resulting in incurable sum of the periods established for the loss of
imbecility or insanity; and the member or the part thereof. If the result
6. Such cases as determined by the Medical is a decimal fraction, the same shall be
rounded off to the next higher integer. fifteen thousand pesos. (As amended by
f. In cases of injuries or illnesses resulting in Section 4, Presidential Decree No. 1921)
a permanent partial disability not listed in c. The monthly income benefit provided
the preceding schedule, the benefit shall be herein shall be the new amount of the
an income benefit equivalent to the monthly income benefit for the surviving
percentage of the permanent loss of the beneficiaries upon the approval of this
capacity to work. (As added by Section 7, decree. (As amended by Section 8,
Presidential Decree No. 1368) Presidential Decree No. 1368)
g. Under such regulations as the Commission d. Funeral benefit. - A funeral benefit of
may approve, the income benefit payable in Three thousand pesos (P3,000.00) shall be
case of permanent partial disability may be paid upon the death of a covered employee
paid in monthly pension or in lump sum if the or permanently totally disabled pensioner.
period covered does not exceed one year. (As amended by Section 3, Executive Order
(As added by Section 7, Presidential Decree No. 179)
No. 1368)

Chapter VIII
Chapter VII PROVISIONS COMMON TO INCOME
DEATH BENEFITS BENEFITS
Art. 194. Death. Art. 195. Relationship and
a. Under such regulations as the Commission dependency. All questions of relationship
may approve, the System shall pay to the and dependency shall be determined as of
primary beneficiaries upon the death of the the time of death.
covered employee under this Title, an Art. 196. Delinquent contributions.
amount equivalent to his monthly income a. An employer who is delinquent in his
benefit, plus ten percent thereof for each contributions shall be liable to the System for
dependent child, but not exceeding five, the benefits which may have been paid by
beginning with the youngest and without the System to his employees or their
substitution, except as provided for in dependents, and any benefit and expenses
paragraph (j) of Article 167 hereof: Provided, to which such employer is liable shall
however, That the monthly income benefit constitute a lien on all his property, real or
shall be guaranteed for five years: Provided, personal, which is hereby declared to be
further, That if he has no primary preferred to any credit, except taxes. The
beneficiary, the System shall pay to his payment by the employer of the lump sum
secondary beneficiaries the monthly income equivalent of such liability shall absolve him
benefit but not to exceed sixty months: from the payment of the delinquent
Provided, finally, That the minimum death contribution and penalty thereon with
benefit shall not be less than fifteen respect to the employee concerned.
thousand pesos. (As amended by Section 4, b. Failure or refusal of the employer to pay or
Presidential Decree No. 1921) remit the contribution herein prescribed shall
b. Under such regulations as the Commission not prejudice the right of the employee or his
may approve, the System shall pay to the dependents to the benefits under this Title. If
primary beneficiaries upon the death of a the sickness, injury, disability or death occurs
covered employee who is under permanent before the System receives any report of the
total disability under this Title, eighty percent name of his employee, the employer shall be
of the monthly income benefit and his liable to the System for the lump sum
dependents to the dependents’ pension: equivalent to the benefits to which such
Provided, That the marriage must have been employee or his dependents may be entitled.
validly subsisting at the time of disability: Art. 197. Second injuries. If any employee
Provided, further, That if he has no primary under permanent partial disability suffers
beneficiary, the System shall pay to his another injury which results in a
secondary beneficiaries the monthly pension compensable disability greater than the
excluding the dependents’ pension, of the previous injury, the State Insurance Fund
remaining balance of the five-year shall be liable for the income benefit of the
guaranteed period: Provided, finally, That the new disability: Provided, That if the new
minimum death benefit shall not be less than disability is related to the previous disability,
the System shall be liable only for the made by the System to such person or
difference in income benefits. persons as it may consider to be best
Art. 198. Assignment of benefits. No qualified to take care and dispose of the
claim for compensation under this Title is minor’s or incompetent’s property for his
transferable or liable to tax, attachment, benefit.
garnishment, levy or seizure by or under any Art. 203. Prohibition. No agent, attorney
legal process whatsoever, either before or or other person pursuing or in charge of the
after receipt by the person or persons preparation or filing of any claim for benefit
entitled thereto, except to pay any debt of under this Title shall demand or charge for
the employee to the System. his services any fee, and any stipulation to
Art. 199. Earned benefits. Income the contrary shall be null and void. The
benefits shall, with respect to any period of retention or deduction of any amount from
disability, be payable in accordance with this any benefit granted under this Title for the
Title to an employee who is entitled to payment of fees for such services is
receive wages, salaries or allowances for prohibited. Violation of any provision of this
holidays, vacation or sick leaves and any Article shall be punished by a fine of not less
other award of benefit under a collective than five hundred pesos nor more than five
bargaining or other agreement. thousand pesos, or imprisonment for not less
Art. 200. Safety devices. In case the than six months nor more than one year, or
employee’s injury or death was due to the both, at the discretion of the court.
failure of the employer to comply with any Art. 204. Exemption from levy, tax,
law or to install and maintain safety devices etc. All laws to the contrary notwithstanding,
or to take other precautions for the the State Insurance Fund and all its assets
prevention of injury, said employer shall pay shall be exempt from any tax, fee, charge,
the State Insurance Fund a penalty levy, or customs or import duty and no law
of twenty-five percent (25%) of the lump sum hereafter enacted shall apply to the State
equivalent of the income benefit payable by Insurance Fund unless it is provided therein
the System to the employee. All employers, that the same is applicable by expressly
especially those who should have been stating its name.
paying a rate of contribution higher than
required of them under this Title, are Chapter IX
enjoined to undertake and strengthen RECORDS, REPORTS AND PENAL
measures for the occupational health and PROVISIONS
safety of their employees. Art. 205. Record of death or disability.
Art. 201. Prescriptive period. No claim for a. All employers shall keep a logbook to
compensation shall be given due course record chronologically the sickness, injury or
unless said claim is filed with the System death of their employees, setting forth
within three (3) years from the time the therein their names, dates and places of the
cause of action accrued. (As amended by contingency, nature of the contingency and
Section 5, Presidential Decree No. 1921) absences. Entries in the logbook shall be
Art. 202. Erroneous payment. made within five days from notice or
a. If the System in good faith pays income knowledge of the occurrence of the
benefit to a dependent who is inferior in right contingency. Within five days after entry in
to another dependent or with whom another the logbook, the employer shall report to the
dependent is entitled to share, such System only those contingencies he deems
payments shall discharge the System from to be work-connected.
liability, unless and until such other b. All entries in the employer’s logbook shall
dependent notifies the System of his claim be made by the employer or any of his
prior to the payments. authorized official after verification of the
b. In case of doubt as to the respective rights contingencies or the employees’ absences
of rival claimants, the System is hereby for a period of a day or more. Upon request
empowered to determine as to whom by the System, the employer shall furnish the
payments should be made in accordance necessary certificate regarding information
with such regulations as the Commission about any contingency appearing in the
may approve. If the money is payable to a logbook, citing the entry number, page
minor or incompetent, payment shall be number and date. Such logbook shall be
made available for inspection to the duly than one year; if committed by a lawyer,
authorized representative of the System. physician or other professional, he shall, in
c. Should any employer fail to record in the addition to the penalty prescribed herein, be
logbook an actual sickness, injury or death of disqualified from the practice of his
any of his employees within the period profession; and if committed by any official,
prescribed herein, give false information or employee or personnel of the Commission,
withhold material information already in his System or any government agency, he shall,
possession, he shall be held liable for fifty in addition to the penalty prescribed herein,
percent of the lump sum equivalent of the be dismissed with prejudice to re-
income benefit to which the employee may employment in the government service.
be found to be entitled, the payment of Art. 208. Applicability. This Title shall
which shall accrue to the State Insurance apply only to injury, sickness, disability or
Fund. death occurring on or after January 1, 1975.
d. In case of payment of benefits for any Art. 208-A. Repeal. All existing laws,
claim which is later determined to be Presidential Decrees and Letters of
fraudulent and the employer is found to be a Instructions which are inconsistent with or
party to the fraud, such employer shall contrary to this Decree, are hereby repealed:
reimburse the System the full amount of the Provided, That in the case of the GSIS,
compensation paid. conditions for entitlement to benefits shall be
Art. 206. Notice of sickness, injury or governed by the Labor Code, as amended:
death. Notice of sickness, injury or death Provided, however, That the formulas for
shall be given to the employer by the computation of benefits, as well as the
employee or by his dependents or anybody contribution base, shall be those provided
on his behalf within five days from the under Commonwealth Act Numbered One
occurrence of the contingency. No notice to Hundred Eighty-Six, as amended by
the employer shall be required if the Presidential Decree No. 1146, plus twenty
contingency is known to the employer or his percent thereof. (As added by Section 9,
agents or representatives. Presidential Decree No. 1368 [May 1, 1978]
Art. 207. Penal provisions. and subsequently amended by Section 7,
a. he penal provisions of Republic Act Presidential Decree No. 1641)
Numbered Eleven Hundred Sixty-One, as
amended, and Commonwealth Act Numbered Title III
One Hundred Eighty-Six, as amended, with MEDICARE
regard to the funds as are thereunder being Art. 209. Medical care. The Philippine
paid to, collected or disbursed by the Medical Care Plan shall be implemented as
System, shall be applicable to the collection, provided under Republic Act Numbered Sixty-
administration and disbursement of the One Hundred Eleven, as amended.
Funds under this Title. The penal provisions
on coverage shall also be applicable. Title IV
b. Any person who, for the purpose of ADULT EDUCATION
securing entitlement to any benefit or Art. 210. Adult education. Every employer
payment under this Title, or the issuance of shall render assistance in the establishment
any certificate or document for any purpose and operation of adult education programs
connected with this Title, whether for him or for their workers and employees as
for some other person, commits fraud, prescribed by regulations jointly approved by
collusion, falsification, misrepresentation of the Department of Labor and Employment
facts or any other kind of anomaly, shall be and the Department of Education, Culture
punished with a fine of not less than five and Sports.
hundred pesos nor more than five thousand
pesos and an imprisonment for not less than
six months nor more than one year, at the
discretion of the court.
c. If the act penalized by this Article is
committed by any person who has been or is
employed by the Commission or System, or a
recidivist, the imprisonment shall not be less