LABOR CODE (2) hours, in the case of those engaged

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

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

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