SOCIAL LEGISLATION
F.SOCIALLEGISLATION
Q:WhatisSocialLegislation?
A: It consists of statutes, regulations and
jurisprudence that afford protection to labor,
especiallytoworkingwomenandminors,andisin
fullaccordwiththeconstitutionalprovisionsonthe
promotionofsocialjusticetoinsurethewellbeing
andeconomicsecurityofallthepeople.
1.SOCIALSECURITYLAW
(RA8282)
Q:Whatisthepolicyobjectiveintheenactmentof
(SSS)Law?
A:ItisthepolicyoftheStatetoestablish,develop,
promoteandperfectasoundandviabletaxexempt
SSSsuitabletotheneedsofthepeoplethroughout
the Phils., which shall promote social justice and
provide meaningful protection to members and
their beneficiaries against the hazards of disability,
sickness, maternity, old age, death, and other
contingenciesresultinginlossofincomeorfinancial
burden.(Sec.2)
TheenactmentofSSSlawisalegitimateexerciseof
thepolicepower.Itaffordsprotectiontolaborand
isinfullaccordwiththeconstitutionalmandateon
the promotion of social justice. (Roman Catholic
ArchbishopofManilav.SSS,G.R.No.15045Jan.20,
1961)
Q:Arethepremiumsconsideredastaxes?
A:No.ThefundscontributedtotheSystembelong
to the members who will receive benefits, as a
matterofright, wheneverthehazardsprovidedby
the law occur. (CMS Estate, Inc., v. SSS, G.R. No.
26298Sep.28,1984)
Q:ArebenefitsreceivedunderSSSLawpartofthe
estateofamember?
A:No.BenefitsreceivableundertheSSSLawarein
thenatureofaspecialprivilegeoranarrangement
secured by the law pursuant to the policy of the
Statetoprovidesocialsecuritytotheworkingman.
The benefits are specifically declared not
transferable and exempt from tax, legal processes
andliens.(SSSv.Davac,et.al.,G.R.No.21642,July
30,1966)
Q:Howaredisputessettled?
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A:
DISPUTESETTLEMENT
Disputesinvolving:
1. Coverage
2. Benefits
3. Contributions
4. Penalties
Social 5. Anyothermatterrelated
Security thereto.
Commission
(SSC) Note: Disputes within the mandatory
periodof20daysafterthesubmissionof
evidence.(Sec.5a)
Decision, in the absence of appeal, shall
befinalandexecutory15daysafterdate
ofnotification.(Sec.5b)
DecisionsofSSCshallbeappealableto:
1.CAquestionsoflawandfact(Sec.
CA/SC
5c)
2.SCquestionsoflaw.(Sec.5c)
SSCmay,motupropriooronmotionof
any interested party, issue a writ of
Execution
execution to enforce any of its
ofdecision
decisions or awards, after it has
becomefinalandexecutory.(Sec.5d)
Q: Can the SSC validly reevaluate the findings of
the RTC, and on its own, declare the latters
decisiontobebereftofanybasis?
A: No. It cannot review, much less reverse,
decisionsrenderedbycourtsoflawasitdidinthe
caseatbarwhenitdeclaredthattheCFIOrderwas
obtained through fraud and subsequently
disregardedthesame,makingitsownfindingswith
respecttothevalidityofBailonandAlicesmarriage
on the one hand and the invalidity of Bailon and
Teresitasmarriageontheother.Ininterferingwith
and passing upon the CFI Order, the SSC virtually
acted as an appellate court. The law does not give
theSSCunfettereddiscretiontotriflewithordersof
regular courts in the exercise of its authority to
determine the beneficiaries of the SSS. (SSS vs.
Teresita Jarque Vda. De Bailon, G.R. No. 165545,
Mar.24,2006,J.CarpioMorales)
Q:Whoisanemployer(Er)?
A: Any person, natural or juridical, domestic or
foreign, who carries into the Phils. any trade,
business, industry, undertaking or activity of any
kindandusestheservicesofanotherpersonwhois
under his orders as regards the employment,
except the Government and any of its political
subdivisions, branches or instrumentalities,
including corporations owned or controlled by the
Government: Provided, That a selfemployed
person shall be both Ee and Er at the same time.
(Sec8[c])
107
UNIVERSITYOFSANTOTOMAS
Facultad de Derecho Civil
 UST GOLDEN NOTES 2011

discontinued, reduced or
Q:Whoisanemployee(Ee)? otherwiseimpaired;
b. Existing private plans shall be
A: Any person who performs services for an Er in integrated with the SSS but if
whicheitherorbothmentalandphysicaleffortsare the Er under such plan is
used and who receives compensation for such contributingmorethanwhatis
services, where there is an ErEe relationship: required by this Act, he shall
Provided,Thataselfemployedpersonshallbeboth pay to the SSS the amount
EeandEratthesametime.(Sec.8[d]) required to him, and he shall
continue with his contributions
Q:Whatisemployment? lesstheamountpaidtoSSS;
c. Any changes, adjustments,
A:GR:AnyserviceperformedbyanEeforhisEr. modifications, eliminations or
improvementsinthebenefitsof
XPNs: theremainingprivateplanafter
1. Employmentpurelycasualandnotforthe the integration shall be subject
purposeofoccupationorbusinessofthe to agreementsbetween the Ers
Er; andtheEesconcerned;and
2. Service performed on or in connection d. The private benefit plan which
with an alien vessel by an Ee if he is theErshallcontinueforhisEes
employedwhensuchvesselisoutsidethe shall remain under the Ers
Phils; managementandcontrolunless
3. Service performed in the employ of the there is an existing agreement
Phil. Government or instrumentality or tothecontrary
agencythereof; c. All selfemployed considered both
4. Service performed in the employ of a anErandEe
foreign government or international d. Professionals;
organization, or their whollyowned e. Partners and single proprietors of
instrumentality: business;
5. Such other services performed by f. Actors and actresses, directors,
temporary and other Ees which may be scriptwriters and news
excludedbyregulationoftheSSC.Eesof correspondents who do not fall
bona fide independent contractors shall within the definition of the term
notbedeemedEesoftheErengagingthe Ee;
servicesofsaidcontractors.(Sec.8[j]) g. Professional athletes, coaches,
trainersandjockeys;AND
Q:Whatisacontingency? h. Individual farmers and fisherman.
(Sec.9)
A: The retirement, death, disability, injury or
sicknessandmaternityofthemember. 2. Voluntary
a. Spouses who devote full time to
a.Coverage managing the household and family
affairs, unless they arealso engaged
Q:WhoarecoveredbySSS? in other vocation or employment
which is subject to mandatory
A: coverage;(Sec.9[b])
1. CompulsoryCoverage b. Filipinos recruited by foreignbased
a. AllEesnot over60yearsofageand Ers for employment abroad may be
theirErs; covered by the SSS on a voluntary
b. Domestic helpers whose income is basis;(Sec.9[c])
notlessthanP1000/monthandnot c. Ee separated from employment to
over60yearsofageandtheirErs; maintainhisrighttofullbenefits
Limitations: d. Selfemployed who realizes no
a. Any benefit earned by the Ees incomeforacertainmonth
under private benefit plans
existing at the time of the 3. ByAgreement
approvaloftheActshallnotbe Any foreign government, international
organization, or their whollyowned

108
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM

 SOCIAL LEGISLATION
instrumentality employing workers in the
Phils., may enter into an agreement with
the Phil. government for the inclusion of
such Ees in the SSS except those already
covered by their respective civil service
retirementsystems.
Q: When is the compulsory coverage deemed
effective?
A:
1. Employeronthefirstdayofoperation
2. Employeeonthedayofhisemployment
3. Compulsory coverage of selfemployed
uponhisregistrationwiththeSSS
Q:Whatistheeffectofseparationofanemployee
fromhisemploymentundercompulsorycoverage?
A:
1. His Ers obligation to contribute arising
from that employment shall cease at the
endofthemonthofseparation,
2. But said Ee shall be credited with all
contributions paid on his behalf and
entitled to benefits according to the
provisionsofR.A.9282.
3. He may, however, continue to pay the
totalcontributionstomaintainhisrightto
fullbenefit.(Sec.11)
Note: The above provision recognizes the once a
member,alwaysamemberrule.
Q:Whatistheeffectofinterruptionofbusinessor
professionalincome?
A:Iftheselfemployedmemberrealizesnoincome
inanygivenmonth:
1. He shall not be required to pay
contributionsforthatmonth.
2. Hemay,however,beallowedtocontinue
payingcontributionsunderthesamerules
andregulationsapplicabletoaseparated
Eemember:
3. Provided, that no retroactive payment of
contributionsshallbeallowedotherthan
asprescribedunderSec.22A.(Sec.11A)
Q: On her way home from work, Asteria
Benedicta, a machine operator in a sash factory,
entersamoviehousetorelax.Butsheisstabbed
by an unknown assailant. Her claim for benefits
under the SSS Law is denied on the ground that
her injury is not workconnected. Is the denial
legal?Why?
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A: No. It is not necessary, for the enjoyment of
benefitsundertheSSSLawthattheinjuryiswork
connected.Whatisimportantismembershipinthe
SSS and not the causal connection of the work of
theEetohisinjuryorsickness.
Claims based on workconnected injuries or
occupational diseases are covered by the State
InsuranceFund.
b.Exclusionsfromcoverage
Q:Enumeratethekindsofemploymentwhichare
exceptedfromcompulsorycoverageundertheSSS
Law.
A:UnderSection8(j)ofR.A.1161,asamended,the
following services or employments are excepted
fromcoverage:
1. Employmentpurelycasualandnotforthe
purpose of occupation or business of the
employer;
2. Service performed on or in connection
withanalienvesselbyanemployeeifhe
is employed when such vessel is outside
thePhilippines;
3. Service performed in the employ of the
PhilippineGovernmentorinstrumentality
oragencythereof;
4. Service performed in the employ of a
foreign government or international
organization, or their whollyowned
instrumentality:
Provided, however,That this exemption
notwithstanding,anyforeigngovernment,
internationalorganizationortheirwholly
owned instrumentality employing
workers in the Philippines or employing
Filipinos outside of the Philippines, may
enter into an agreement with the
Philippine Government for the inclusion
ofsuchemployeesintheSSSexceptthose
already covered by their respective civil
service retirement systems:Provided,
further,Thatthetermsofsuchagreement
shall conform with the provisions of this
Act on coverage and amount of payment
of contributions and benefits:Provided,
finally,ThattheprovisionsofthisActshall
besupplementarytoanysuchagreement;
and
109
UNIVERSITYOFSANTOTOMAS
Facultad de Derecho Civil
 UST GOLDEN NOTES 2011

5. Such other services performed by iv. 2% of the average monthly

temporary and other employees which salary credit for each credited
may be excluded by regulation of the year of service in excess of 10
Commission. Employees ofbona years;or
fideindependent contractors shall not be b. 40% of the average monthly salary
deemed employees of the employer credit;or
engagingtheserviceofsaidcontractors. c. P1,000.00, provided that the
monthly pension shall in no case be
c.Benefits paidforanaggregateamountofless
thansixty(60)months(Sec.12[a])
Q:WhatarethebenefitsundertheSSSAct? 2. MinimumPension
a. P1,200.00 members with at least
A: 10creditedyearsofservice
1. MonthlyPension b. P2,400.00forthosewith20credited
2. RetirementBenefits yearsofservice.(Sec.[b])
3. DeathBenefits
4. DisabilityBenefits Q:Whatwillhappentothemonthlypensionofa
5. FuneralBenefits retireeincaseofdeath?
6. SicknessBenefits
7. MaternityBenefits A:
1. Upon the death of the retired member,
Q: Are the benefits provided for in the SSS Law hisprimarybeneficiariesasofthedateof
transferable? his retirement will get 100% of his
monthly pension plus the dependent's
A: Benefits provided for in the SSS Law are not pensionforeachchild.
transferable and no power of attorney or other
document executed by those entitled thereto in Note: The above phrase primary
favorofanyagent,attorneyoranyotherpersonfor beneficiaries (as of the date of his
the collection thereof on their behalf shall be retirement) was declared unconstitutional
recognized,exceptwhentheyarephysicallyunable bytheSCinDycaicov.SSSandSSC(G.R.No.
to collect personally such benefits. (Sec.15, R.A. 16137, June 6, 2006) because it is in
1161,asamended) violation of the equal protection, due
processandsocialjustice.
Q:WhatarethereportorialrequirementsoftheEr
andselfemployed? 2. Ifhedieswithin60monthsfromthestart
of his pension and he has no primary
A: beneficiaries, his secondary beneficiaries
1. Er Report immediately to SSS the names, willreceivealumpsumbenefitequivalent
ages, civil status, occupations, salaries and to the difference of 60 multiplied by the
dependentsofallhiscoveredEes monthly pension and the total monthly
pensions paid by the SSS excluding the
2. SelfemployedReporttoSSSwithin30days dependent'spension.(Sec.12B[d])
fromthefirstdayofhisoperation,hisname,
age, civil status, occupation, average Q: Bonifacio and Elena are living together as
monthlynetincomeandhisdependents husband and wife without the benefit of
marriage. Bonifacio declared Elena and their
MonthlyPension children as his primary beneficiaries in his self
employeddata record in SSS. A few months prior
Q:Howmuchisthemonthlypension? to his death, Bonifacio married Elena.Is Elena
entitledtothesurvivorspension?
A:
1. Themonthlypensionshallbethehighest A: Yes, she is considered primary beneficiary of
ofthefollowingamounts: Bonifacio. The phrase Upon the death of the
a. Thesumofthefollowing: retiredmember,hisprimarybeneficiariesasofthe
ii. P300.00;plus date of his retirement will get 100 per cent of his
iii. 20% of the average monthly monthly pension xxx of Sec. 12B d of RA 8282 is
salarycredit;plus unconstitutional because it violates the: (1) equal
protection clause because it impermissibly
discriminates against dependent spouses whose

110
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM

 SOCIAL LEGISLATION
respective marriages to the SSS members were
contracted after the latters retirement; (2) due
process clause because it outrightly deprives
spouses who married the SSS members after their
retirement of the survivors pension, a property
interest, without giving them opportunity to be
heard;and(3)socialjustice.
Further, the survivorship pension applied for was
classifiedasdeathbenefits.Hence,thecontingency
that gives rise to the entitlement of Elena is the
deathofBonifacioandnothisretirement.(Dycaico
v.SSS,G.R.No.16137,June6,2006)
Q:Whenisthemonthlypensionanddependents
pensionsuspended?
A:
1. Uponthereemploymentorresumptionof
selfemployment
2. Recovery of the disabled member from
hispermanenttotaldisability
3. Failuretopresenthimselfforexamination
at least once a year upon notice by the
SSS.(Sec.13A[b])
RetirementBenefit
Q:Whatisaretirementbenefit?
A:Itisacashbenefitpaidtoamemberwhocanno
longerworkduetooldage.
Q:Whatarethetypesofretirementbenefits?
A:
1. Monthly Pension Lifetime cash benefit
paidtoaretireewhohaspaidatleast120
monthlycontributionstotheSSSpriorto
thesemesterofretirement.
2. LumpSumAmountGrantedtoaretiree
who has not paid the required 120
monthlycontributions.
Q:Whoareentitledforretirementbenefits?
A:
1. Amemberwho
a. has paid at least 120 monthly
contributionspriortothesemesterof
retirement;
b. atleast60yearsold;and
c. already separated from employment
orhasceasedtobeselfemployed,OR
2. Atleast65yearsold,shallbeentitledfor
as long as he lives to the monthly
pension;(Sec12B[a])
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
3. Amember
a. At least 60 years old at retirement;
and
b. Doesnotqualifyforpensionbenefits
underparagraph(a)aboveentitled
to a lump sum benefit equal to the
total contributions paid by him and
onhisbehalf;
c. Must be separated from
employment and is not continuing
payment of contributions to the SSS
onhisown.(Sec.12B[b])
Q: What happens when the retirement pensioner
isreemployedorresumesselfemployment?
A:Themonthlypensionofaretirementpensioner
whoresumesemploymentandislessthan65years
old will be suspended. He and his Er will again be
subjecttocompulsorycoverage.(Sec.12B[c])
Q: Are the children of a retiree member entitled
tothedependent'spension?
A:Yes(Sec.12[A]).However,only5minorchildren,
beginning from the youngest, are entitled to the
dependents' pension. No substitution is allowed.
Where there are more than 5 legitimate and
illegitimate children, the legitimate ones will be
preferred.
Q:Forhowlongwillthedependentchildreceive
thepension?
A: Until the child reaches 21 years of age, gets
married,getsemployedandearnsP300amonthor
more,ordies.
However, the dependent's pension is granted for
lifetochildrenwhoareover21yearsold,provided
theyareincapacitatedandincapableofselfsupport
duetophysicalormentaldefectwhichiscongenital
oracquiredduringminority.
DeathBenefit
Q: When is a beneficiary entitled to death
benefits?
A:
1. Upondeathofamember,ifhehaspaidat
least 36 monthly contributions prior to
thesemesterofdeath:
a. primary beneficiaries shall be
entitledtothemonthlypension;or
b. Iftherearenoprimarybeneficiaries,
secondary beneficiaries shall be
111
UNIVERSITYOFSANTOTOMAS
Facultad de Derecho Civil
 UST GOLDEN NOTES 2011
entitled to a lump sum benefit
equivalent to 36 times the monthly
pension.
2. Upon death of a member If he has not
paid the required 36 monthly
contributions prior to the semester of
death:
a. Primary or secondary beneficiaries
shall be entitled to a lump sum
benefit equivalent to the monthly
pensionmultipliedbythenumberof
monthly contributions paid to the
SSS:or
b. 12 times the monthly pension,
whicheverishigher.(Sec.13)
DisabilityBenefit
Q:Whatisadisabilitybenefit?
A: It is a cash benefit paid to a member who
becomes permanently disabled, either partially or
totally.
Q:Whatisthedifferencebetweendeathbenefits
andPermanentTotalDisabilitybenefits?
A:
DeathBenefits PTDBenefits
Requisite
atleast36monthlycontributions
Benefitspayabletowhom
PrimaryBeneficiaries Member
Failuretomake36monthlypayments
Benefitsshallbeinlumpsumequivalenttothe
monthlypensiontimesthenumberofmonthly
contributionspaidtoSSSor12timesthemonthly
pension,whicheverishigher.
Q: What is the effect of the death of the PTD
pensioner?
A:
1. Primary beneficiaries are entitled to
receivemonthlypensionasofthedateof
disability.
2. No primary beneficiaries and he dies
within 60 months from the start of his
monthlypensionsecondarybeneficiaries
shall be entitled to a lump sum benefit
equivalent to the total monthly pensions
corresponding to the balance of the 5
year guaranteed period excluding the
dependentspension.(Sec.13A[c])
Q: What is the effect of retirement or death to
partialdisabilitypension?
112
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
A: Disability pension shall cease upon his
retirementordeath.(Sec13A[j])
FuneralBenefit
Q:Whatisthefuneralbenefit?
A:AfuneralgrantequivalenttoP12,000.00shallbe
paid, in cash or in kind, to help defray the cost of
expenses upon the death of a member or retiree.
(Sec.13B)
SicknessBenefit
Q:Whatissicknessbenefit?
A:Itisadailycashallowancepaidforthenumber
ofdaysamemberisunabletoworkduetosickness
orinjury.
Q: What are the requirements to be entitled for
sicknessbenefit?
A:
1. The member paid at least 3 monthly
contributions in the 12month period
immediately preceding the semester of
sicknessorinjury
2. Confined for more than 3 days in a
hospital or elsewhere with the approval
oftheSSS
3. He has used all current company sick
leaveswithpayforthecurrentyear
4. Notified his Er or the SSS, if he is a
separated, voluntary or selfemployed
member
Q:Whowillpaysicknessbenefits?andhowmuch
isthebenefit?
A:TheErshallpaythe:
1. Ee for each compensable confinementor
fractionthereofor
2. SSS if member is selfemployed daily
sickness benefit equivalent to 90% of his
averagedailysalarycredit,subjecttothe
followingconditions:
a. In no case shall the daily sickness
benefitbepaidlongerthan120days
in 1 calendar year, nor shall any
unused portion of the 120 days of
sickness benefit granted be carried
forward and added to the total
number of compensable days
allowableinthesubsequentyear;
 SOCIAL LEGISLATION
b. Notpaidformorethan240dayson
account of the same confinement;
and
c. Ee member shall notify his Er of the
factofhissicknessorinjurywithin5
calendar days after the start of his
confinement unless such
confinement:
i. isinahospital
ii. the Ee became sick or was
injured while working or
withinthepremisesoftheEr
(notification to the Er not
necessary);
3. If the member is unemployed or self
employed,heshalldirectlynotifytheSSS
ofhisconfinementwithin5calendardays
after the start thereof unless such
confinementisinahospitalinwhichcase
notificationisalsonotnecessary;
4. Where notification is necessary,
confinement shall be deemed to have
started not earlier than the 5th day
immediately preceding the date of
notification.(Sec.14[b])
Note:Thelawdoesnotrequirethatsicknessmustbe
relatedtothedutiesofthebeneficiaries.
Q: When will compensable confinement
commence?
A:
1. Beginsonthe1stdayofsickness
2. Payment of such allowances shall be
promptlymadebytheEr:
a. every regular payday or on the 15th
andlastdayofeachmonth,
b. incaseofdirectpaymentbytheSSS
as long as such allowances are due
andpayable.(Sec.14[b])
Q:WhataretherequirementsinorderthatErmay
claimreimbursementofthesicknessbenefit?
A:
1. 100% of daily benefits shall be
reimbursed by SSS if the following
requirementsaresatisfied:
a. Receipt of SSS of satisfactory proof
ofsuchpaymentandlegalitythereof:
b. The Er has notified the SSS of the
confinement within 5 calendar days
afterreceiptofthenotificationfrom
theEemember:
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
2. Er shall be reimbursed only for each day
th
of confinement starting from the 10
calendar day immediately preceding the
date of notification to the SSS if the
notification to the SSS is made beyond 5
calendar days after receipt of the
notificationfromtheEemember.(Sec.14
[c])
Q:WhenwillreimbursementbemadebySSS?
A:GR: SSS shall reimburse the Er or pay the
unemployed member only for confinement
within1yearimmediatelyprecedingthedatethe
claimforbenefitorreimbursementisreceivedby
theSSS
XPN:Confinementinahospitalinwhichcasethe
claimforbenefitorreimbursementmustbefiled
within 1 year from the last day of confinement.
(Sec.14[c])
MaternityBenefit
Q:Whatisthematernitybenefit?
A: The maternity benefit is a daily cash allowance
granted to a female member who was unable to
workduetochildbirthormiscarriage.
Q: What are the qualifications for entitlement to
thematernitybenefit?
A:
1. She has paid at least three monthly
contributionswithinthe12monthperiod
immediately preceding the semester of
herchildbirthormiscarriage.
2. Shehasgiventherequirednotificationof
her pregnancy through her employer if
employed, or to the SSS if separated,
voluntaryorselfemployedmember.
Q:Isthevoluntaryorselfemployedmemberalso
entitledtothematernitybenefit?
A: Yes, A voluntary or a selfemployed member is
entitledtothematernitybenefitprovidedthatshe
meetsthequalifyingconditions.
Q:Howmuchisthematernitybenefit?
A: The maternity benefit is equivalent to 100 per
cent of the members average daily salary credit
multiplied by 60 days for normal delivery or
miscarriage,78daysforcaesareansectiondelivery.
Q:Howisthematernitybenefitcomputed?
113
UNIVERSITYOFSANTOTOMAS
Facultad de Derecho Civil
 UST GOLDEN NOTES 2011

anygainfuloccupationfor
A: a continuous period
1. Exclude the semester of contingency exceeding 120 days
(deliveryormiscarriage). regardless of whether he
losestheuseofanyofhis
Note: Semester refers to two consecutive bodyparts.
quarters ending in the quarter of
contingency. Quarter refers to three d.Beneficiaries
consecutive months ending March, June,
SeptemberorDecember. Q:Whoareprimarybeneficiaries?

2. Count12monthsbackwardsstartingfrom A:
the month immediately before the 1. The dependent spouse until he or she
semesterofcontingency. remarries

3. Identify the six highest monthly salary 2. The dependent legitimate, legitimated or
creditswithinthe12monthperiod. legallyadopted,andillegitimatechildren,:
Provided,Thatthedependentillegitimate
Note: Monthly salary credit means the children shall be entitled to 50% of the
compensation base for contributions share of the legitimate, legitimated or
benefitsrelatedtothetotalearningsforthe legallyadoptedchildren.
month.
Q:Whoaresecondarybeneficiaries?
4. Addthesixhighestmonthlysalarycredits
togetthetotalmonthlysalarycredit. A: In the absence of primary beneficiaries, the
dependentparents.
5. Divide the total monthly salary credit by
180 days to get the average daily salary In the absence of all the foregoing, any other
credit. This is equivalent to the daily person designated by the member as his or her
maternityallowance. secondarybeneficiary.(Sec.8[k])

6. Multiplythedailymaternityallowanceby Q:Whoareconsidereddependents?
60(fornormaldeliveryormiscarriage)or
78days(forcaesareansectiondelivery)to A:
getthetotalamountofmaternitybenefit. 1. The legal spouse entitled by law to
receivesupportfromthemember;
Q:Whatisthedifferenceofcompensabilityunder 2. The legitimate, legitimated, or legally
theLaborLawandtheSocialSecurityLaw? adopted,andillegitimatechildwho:
a. Isunmarried,
A: The claims are different as to their nature and b. Notgainfullyemployed,and
purpose. (Ortega vs. Social Security Commission, c. Hasnotreached21yearsofage,orif
G.R.No.176150,June25,2008) over 21 years of age, he is
congenitallyorwhilestillaminorhas
LABORLAW SOCIALSECURITYLAW beenpermanentlyincapacitatedand
Purpose incapable of selfsupport, physically
Governs compensability Benefits are intended to ormentally.
of: provide insurance or
3. The parent who is receiving regular
1. workrelated protection against the
supportfromthemember.
disabilities hazards or risks of

2. whenthereisloss disability, sickness, old
of income due to age or death, inter alia, Q:Whatismeantbydependentforsupport?
workconnected irrespective of whether
or work theyarosefromorinthe A: The entitlement to benefits as a primary
aggravated injury course of the beneficiary requires not only legitimacy but also
orillness. employment. dependence upon the member Ee. (Gil v. SSC CA
Nature GRSP.37150,May8,1996)
A disability is total and Disability may be
permanentifasaresultof permanent total or Ifawifewhoisalreadyseparateddefactofromher
the injury or sickness the permanentpartial. husband cannot be said to be "dependent for
Ee is unable to perform support"uponthehusband,absentanyshowingto

114
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM

 SOCIAL LEGISLATION
the contrary. Conversely, if it is proved that the
husband and wife were still living together at the
timeofhisdeath,itwouldbesafetopresumethat
she was dependent on the husband for support,
unless it is shown that she is capable of providing
forherself.(SSSv.Aguas,G.R.No.165546,Feb.27,
2006)
Q: Who is entitled to the benefits of an SSS
member who was survived not only by his legal
wife,whoisnotdependentuponthemember,but
alsobytwocommonlawwiveswithwhomhehad
illegitimateminorchildren?
A: The illegitimate minor children shall be entitled
to the death benefits as primary beneficiaries
because the legal wife is not dependent upon the
member.TheSSSLawisclearthatforaminorchild
to qualify as a dependent the only requirements
are that he/she must be below 21 yrs. of age, not
marriednorgainfullyemployed.(Signeyv.SSS,G.R.
No.173582,Jan.28,2008)
Q:Whatiscompensation?
A: All actual remuneration for employment,
includingthemandatedcostoflivingallowance,as
wellasthecashvalueofanyremunerationpaidin
anymediumotherthancashexceptthatpartofthe
remuneration received during the month in excess
ofthemaximumsalary.
Q: The owners of FALCON Factory, a company
engaged in the assembling of automotive
components, decided to have their building
renovated. (50) persons, composed of
engineers, architects and other construction
workers, were hired by the company for this
purpose. The work was estimated to be
completed in 3 years. The Ees contended that
since the work would be completed after more
than1year,theyshouldbesubjecttocompulsory
coverage under the Social Security Law. Do you
agreewiththeircontention?Explainyouranswer
fully.
A: No. Under Sec. 8 (j) of R.A. 1161, as amended,
employment of purely casual and not for the
purpose of the occupation or business of the
employer are excepted from compulsory coverage.
An employment is purely casual if it is not for the
purposeofoccupationorbusinessoftheEr.
In the problem given, Falcon Factory is a company
engaged in the assembly of automotive
components. The 50 persons (engineers, architects
and construction workers) were hired by Falcon
Factory to renovate its building. The work to be
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
performed by these 50 people is not in connection
with the purpose of the business of the factory.
Hence, the employment of these 50 persons is
purely casual. They are, therefore, excepted from
the compulsory coverage of the SSS law. (2000 Bar
Question)
2.GSIS
(R.A.8291)
Q: What are the purposes behind the enactment
oftheGSISAct?
A: To provide and administer the following social
securitybenefitsforgovernmentemployees(Ee):
1. Compulsorylifeinsurance
2. Optionallifeinsurance
3. Retirementbenefits
4. Disability benefits to workrelated
contingencies;and
5. Deathbenefits
Q:Who are considered employers (Er) under the
GSISAct?
A:
1. NationalGovernment
2. Its political subdivisions, branches,
agencies,instrumentalities
3. GOCCs, and financial institutions with
originalcharters
4. Constitutional Commissions and the
Judiciary(Sec.2[c])
Q:CanSSSEesbecoveredbyGSIS?
A:Yes.
Q:WhoisanEmployeeormember?
A:Anyperson,receivingcompensationwhileinthe
service of an Er, whether by election or
appointment,irrespectiveofstatusofappointment,
including barangay and sanggunian officials. (Sec.
2[d])
Q:Whatiscompensation?
A: The basic pay or salary received by an Ee,
pursuant to his or her election or appointment,
excluding per diems, bonuses, OT pay, honoraria,
allowances and any other emoluments received in
addition to the basic pay which are not integrated
intothebasicpayunderexistinglaws.(Sec.2[i])
Q: Baradero is a member of the Sangguniang
BayanoftheMunicipalityofLaCastellana,Negros
115
UNIVERSITYOFSANTOTOMAS
Facultad de Derecho Civil
 UST GOLDEN NOTES 2011
Occ.andispaidonaperdiembasis.Ontheother
hand, Belo a ViceGovernor of Capiz is in a hold
overcapacityandispaidonaperdiembasis.Are
the services rendered by Baradero and Belo on a
perdiembasiscreditableincomputingthelength
ofserviceforretirementpurposes?
A: Yes. The traditional meaning of per diem is a
reimbursement for extra expenses incurred by the
public official in the performance of his duties.
Under this definition the per diem is intended to
coverthecostoflodgingandsubsistenceofofficers
and employees when the latter are on a duty
outside of their permanent station. On the other
hand, a per diem could rightfully be considered a
compensation or remuneration attached to an
office.
The per diems paid to Baradero and Belo were in
the nature of compensation or remuneration for
their services as Sangguniang Bayan and Vice
Governor, respectively, rather than
reimbursement for incidental expenses incurred
whileawayfromtheirhomebase.
If the remuneration received by a public official in
theperformanceofhisdutiesdoesnotconstitutea
mere allowance for expenses but appears to be
hisactualbasepay,thennoamountofcategorizing
the salary as a per diem would take the
allowances received from the term service with
compensation for the purpose of computing the
numberofyearsofserviceingovernment.(GSISv.
CSC,G.R.Nos.98395and102449,June19,1995)
Q:WhatarethesourcesoffundsoftheGSIS?
A: It comes from the monthly contributions of the
coveredEesandErs.(Sec.5)
The contributions of the Ees are deducted and
withheld by the Er each month from the monthly
salaryoftheformerandareremittedbythelatter,
together with its own share, to the System within
the first 10 days of each calendar month following
themonthtowhichthecontributionsapply.(Sec.6)
Q: What is the penalty in case of delayed
remittanceornonremittanceofcontributions?
A: The unremitted contributions shall be charged
interests as prescribed by the GSIS Board of
Trustees but shall not be less than 2% simple
interest per month from due date to the date of
paymentbytheemployersconcerned.
116
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
a.Coverage
Q: What government Ees are subject to coverage
undertheGSIS?
A:
GR: All Ees receiving compensation who have
not reached the compulsory retirement age,
irrespectiveofemploymentstatus.
XPNs:
1. Uniformedmembersofthe:
a.AFP;and
b.PNP.
2. Contractuals who have no Er and Ee
relationshipwiththeagenciestheyserve.
Q: Who are covered by life insurance, retirement
andothersocialsecurityprotection?
A:
a GR: All members of the GSIS shall have life
insurance, retirement, and all other social
security protections such as disability,
survivorship, separation, and unemployment
benefits.(Sec.3)
XPNs:Membersof:
1. Thejudiciary;and
2. Constitutional commissions who shall
havelifeinsuranceonly.
b.Exclusionsfromcoverage
Q: Who, under the GSIS, are excluded from the
coverage?
A:
1. Ees who have separate retirement
schemes (members of the Judiciary,
Constitutional Commissions and others
similarlysituated)
2. Contractual Ees who have no ErEe with
theagenciestheyserve
3. Uniformed members of the AFP, BJMP,
whose coverage by the GSIS has ceased
effectiveJune24,1997
4. Uniformed members of the PNP whose
coveragebytheGSIShasceasedeffective
February1,1996.(Sec.2.4,RuleII,IRR)
Q:Forthepurposeofbenefitentitlement,howare
themembersclassified?
A:
1. Activemembers
a. Still in the service and are paying
integratedpremiums.
 SOCIAL LEGISLATION

b. Covered for the entire package SeparationBenefits

benefits and privileges being
extendedbyGSIS. Q: When will amemberbeentitled to separation
benefits and what comprises these separation
2.Policyholders benefits?
a. Coveredforlifeinsuranceonly
b. Canavailofpolicyloanprivilegeonly A: A member who has rendered a minimum of 3
c. Mayalsoapplyforhousingloans years creditable service shall be entitled to
d. Judiciary and Constitutional separation benefit upon resignation or separation
Commissions underthefollowingterms:

3. RetiredMembers 1. A member with at least 3 years but less
a. Former active members who have than 15 years: Cash payment equivalent
retired from the service and are to 100% of the AMC for every year of
already enjoying the corresponding service the member has paid
retirementbenefitsappliedfor contributions:
b. Not entitled to any loan privilege, a. notlessthanP12,000.00
exceptstockpurchaseloan(Sec.2.2, b. Payable upon reaching 60 years of
RulesII,IRR) age or upon separation, whichever
comeslater.
c.Benefits
2. A member with less than 15 years of
Q: What are the benefits provided by the GSIS service and less than 60 years of age at
Act? thetimeofresignationorseparation:
a. Cashpaymentequivalentto18times
A: the basic monthly pension (BMP),
1. Separation payableatthetimeofresignationor
2. Unemploymentorinvoluntaryseparation separation
3. Retirement b. An oldage pension benefit equal to
4. Permanentdisability the basic monthly pension, payable
5. Temporarydisability monthly for life upon reaching the
6. Survivorship ageof60.
7. Funeral
8. LifeInsurance Q:Whataretheeffectsofseparationfromservice
9. Such other benefits and protection as withregardtomembership?
may be extended to them by the GSIS
suchasloans. A: A member separated from the service shall
continue to be a member and shall be entitled to
Q:WhatarethebenefitsunderP.D.1146(Revised whateverbenefitshehasqualifiedto.
GSIS Act of 1977) that may be granted to the
separatedmembersofthePNP,BJMPandBFP? Note: A member separated for a valid cause shall
automatically forfeit his benefits, unless the terms of
A:GR: resignationorseparationprovideotherwise.
1. Oldagebenefit
2. Permanentdisabilitybenefit Inthecaseofforfeiture,theseparatedemployeeshall
3. Survivorshipbenefit be entitled to receive only of the cash surrender
4. Funeralbenefit valueofhisinsurance.
5. Retirementbenefit
UnemploymentBenefits
XPN:Judiciary(Lifeinsuranceonlytaxexempt)
Q: What are the conditions for entitlement to
Q: What are the reportorial requirements of the unemploymentbenefits?
Er?
A:
A: Er must report to GSIS the names, employment 1. The recipient must be a permanent
status,positions,salariesoftheemployeeandsuch employeeatthetimeofseparation;
othermatterasdeterminedbytheGSIS. 2. Hisseparationwasinvoluntaryduetothe
abolitionofhisofficeorpositionresulting
fromreorganization;and

117
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ

 UST GOLDEN NOTES 2011
3. He has been paying the contribution for
atleast1yearpriortoseparation.
Q:Whatwillconsistofanunemploymentbenefit?
A: It will consists of cash payment equivalent to
50%oftheaveragemonthlycompensation
Note:Amemberwhohasrenderedatleast15yearsof
service will be entitled to separation benefits instead
ofunemploymentbenefits.
RetirementBenefits
Q:Whataretheconditionsinordertobeentitled
toretirementbenefits?
A:
1. Amemberhasrenderedatleast15years
ofservice;
2. Heisatleast60yearsofageatthetime
ofretirement;and
3. He is not receiving a monthly pension
benefit from permanent total disability.
(Sec.13A)
Q:Whatistheruleincaseofextensionofservice
inordertobeentitledforretirementbenefit?
A:ThedoctrineinCenavs.CSC(G.R.No.97419,July
3, 1992), was modified in Rabor vs. CSC, (G.R. No.
111812,May31,1995),wheretheSCheldthat:The
head of the government agency concerned is
vested with discretionary authority to allow or
disallowextensionoftheserviceofanofficialorEe
who has reached 65 years old without completing
the15yearsofgovernmentservice.However,this
discretion is to be exercise conformably with the
provisions of Civil Service Memorandum Circular
No. 27, series of 1990 which provides that the
extensionshallnotexceed1year.
Q:Whatisthereasonforcompulsoryretirement?
A: The compulsory retirement of government
officials and Ees upon their reaching the age of 65
yearsisfoundedonpublicpolicywhichaimsbyitto
maintain efficiency in the government service and
atthesametimegivetotheretiringpublicservants
the opportunity to enjoy during the remainder of
their lives the recompense, for their long service
anddevotiontothegovernment,intheformofa
comparatively easier life, freed from the rigors of
civil service discipline and the exacting demands
that the nature of their work and their relations
with their superiors as well as the public would
impose upon them. (Beronilla v. GSIS, G.R. No.
21723,Nov.26,1970)
118
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
Q:Whataretheoptionsoftheretireewithregard
tohisorherretirementbenefits?
A:Theretireemaygeteitherofthefollowing:
1. Lumpsumequivalentto6monthsofthe
basic monthly pension (BMP) payable at
the time of retirement and an oldage
pensionbenefitequaltoBMPpayablefor
life, starting upon the expiration of the 5
yearscoveredbythelumpsum;or
2. Cash payment equivalent to 18 times his
BMPandmonthlypensionforlifepayable
immediately.(Sec.13[a])
PermanentDisabilityBenefits
Q:Whatisdisability?
A: Any loss or impairment of the normal functions
ofthephysicaland/ormentalfacultyofamember,
which reduces or eliminates his/her capacity to
continuewithhis/hercurrentgainfuloccupationor
engageinanyothergainfuloccupation.
Q:Whatistotaldisability?
A: Complete incapacity to continue with present
employment or engage in any gainful occupation
due to the loss or impairment of the normal
functionsofthephysicaland/ormentalfacultiesof
themember.
Q:Whatispermanenttotaldisability(PTD)?
A: Accrues or arises when recovery from
impairment mentioned in Sec.2(q) (defining
disability)ismedicallyremote.
Q:Whatispermanentpartialdisability(PPD)?
A: Accrues or arises upon the irrevocable loss or
impairment of certain portions of the physical
faculties, despite which the member is able to
pursueagainfuloccupation.
Q:Whataretheconditionsinordertobeentitled
forpermanentdisabilitybenefits?
A: The permanent disability was not due to any of
theff:
1. Gravemisconduct
2. Notoriousnegligence
3. Habitualintoxication
4. Willfulintentiontokillhimselforanother
 SOCIAL LEGISLATION

Q: What are the two types of permanent contribution prior

disability? hisdisability
e. Heisnotreceiving
A: oldageretirement
1. Permanenttotaldisability(PTD)accrues pensionbenefits
or arises when recovery from any loss or
impairment of the normal functions of 2.Ifthememberdoesnot
satisfy the conditions
the physical and/or mental faculty of a
abovebuthasrenderedat
member which reduces or eliminates his
least 3 years service, he
capacity to continue with his current
shallbeadvancedthecash
gainfuloccupationorengageinanyother payment equivalent to
gainful occupation is medically remote. 100% of his average
[Section2(q)and(s)] monthlycompensationfor
each year of service he
2. Permanent partial disability (PPD) has pad contributions but
accrues or arises upon the irrevocable not less than P12,000.00
lossorimpairmentofcertainportion/sof which should have been
the physical faculties, despite which the his separation benefit (he
member is able to pursue a gainful shall no longer receive
occupation.(Sec.2[u]) separationbenefits)

PTD PPD Q: When will the payment of these benefits be
Causes suspended?
1. Completelossofsight Complete and
ofbotheyes permanent loss of the A:
2. Lossof2limbsator useof: 1. Incaseamemberisreemployed;or
abovetheankleor 2. Member recovers from disability as
wrist 1.Anyfinger determinedbytheGSIS;or
3. Permanentcomplete 2.Anytoe 3. Fails to present himself for medical
paralysisof2limbs 3.Onearm examination when required by the GSIS.
4. Braininjuryresulting 4.Onehand (Sec.16[c])
inincurableimbecility 5.Onefoot

orinsanity 6.Oneleg
Q: Manioso was suffering from several diseases
5. Suchothercasesas 7.Oneorbothears
from1959to1994whenheworkedasAccounting
maybedetermined 8.Hearingofoneorboth
bytheGSIS ears ClerkIattheBudgetCommissionuptothetimehe
9.Sightofoneeye was transferred and promoted to the DENR as
Senior Bookkeeper. On 95, he was
Such other causes as hospitalized.The results of his examinations
determinedbyGSIS showed that he was suffering from Acute
Benefits Myocardial Infarction and Hypertensive Vascular
1.Amemberisentitledto A member is entitled to Disease. From Jan May 95 when he compulsory
the monthly income cash payment in retiredfromgovernmentserviceandafterserving
benefit for life equivalent accordance with the for36yrs,henolongerreportedforwork.Hissick
totheBMPwhen: scheduleofdisabilitiesto leave covering said period was duly approved. In
a. Heisintheservice be prescribed by GSIS, if the meantime, Manioso filed a claim for income
at the time of the he satisfies the given benefits with the GSIS which found his ailments
disabilityor conditions of either (1) workrelated. He was granted Temporary Total
b. If separated from or(2)ofSec.16(a). Disability benefits for 2 months.He was later
service grantedPermanentPartialDisabilitybenefitsfor8
c. He has paid at months. It appears that he appealed for more
least 36 monthly
disability benefits with the GSIS which subjected
contributions
him to a series of medical tests. In 97, he was
within 5 years
brought to the PGH several times due to Chronic
immediately
preceding his Renal Infection 2 to Obstructive Uropathy 2 to
disability Staghorn Calculi (L) and Benign Prostatic
d. Hehaspaidatotal Hypertrophy;DiabetesMellitusNeprophaty,Stage
of at least 180 IV, and Hypertensive Nephrosclerosis. He then
monthly filed a request with the GSIS for additional
disability benefits, claiming that the ailments for

119
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ

 UST GOLDEN NOTES 2011
which he was hospitalized several times in 97
developed from his workrelated illnesses. The
GSISdisapprovedManiososrequest.
Do Maniosos ailments which later developed fall
underthecategoryofpermanenttotaldisability?
A: Yes. Under Art. 192 (c) of P.D. No. 442, as
amended (the LC), the following disabilities are
deemed total and permanent:(1) Temporary total
disability lasting continuously for more than 120
days. Under Section 2(b), Rule VII of the Amended
Rules on Ees Compensation, [a] disability is total
and permanent if as a result of the injury or
sickness the Ee is unable to perform any gainful
occupation for a continuous period exceeding 120
days,exceptasotherwiseprovidedunderRuleXof
these Rules. In the case at bar, Manioso was on
sick leave from Jan 11, 95 up to his date of
retirement on May 15, 95 or for a period of more
than 120 days. Surely, the DENR, in approving his
more than 120 days leave must have passed upon
his Medical Certificate relative to his ailments.
Maniosos disability having lasted for more than
120 days, he is entitled to PTD benefits. (Manioso,
v.GSIS,G.R.No.148323,Apr.29,2005)
Q: Does Maniosos retirement from service
preventhimfromentitlementtoPTDbenefits?
A: No. Benefits due an Ee due to workrelated
sickness shall be provided until he becomes
gainfully employed, or until his recovery or death.
None of these are present in Maniosos case. It
would be an affront to justice if Manioso, a
government Ee who had served for 36 years, is
deprived of the benefits due him for workrelated
ailments that resulted in his Permanent Total
Disability. (Manioso v. GSIS, G.R. No. 148323,Apr.
29,2005)
TemporaryDisabilityBenefits
Q:Whendoestemporarytotaldisabilityarises?
A: It accrues or arises when the impaired physical
and/ormentalfacultiescanberehabilitatedand/or
restoredtotheirnormalfunctions.(Sec2[t])
Q: What benefits are given for temporary
disability?
A:
1. Member is entitled to 75% of his current
daily compensation for each day or
fractionthereofoftotaldisabilitybenefit,
th
to start at the 4 day but not exceeding
120daysinonecalendaryearwhen:
120
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
a. Hehasexhaustedallsickleaves
b. CBAsickleavebenefits
Provided,that:
i. He was in the service at time of
disability;or
ii. If separated, he has rendered at
least 3 years of service and has
paid at least 6 monthly
contributions in the year
precedinghisdisability
2. The temporary total disability benefits
shallinnocasebelessthanP70aday.
Note: A member cannot enjoy the temporary total
disabilitybenefitandsickleavepaysimultaneously.
AnapplicationfordisabilitymustbefiledwiththeGSIS
within4yearsfromthedateoftheoccurrenceofthe
contingency.
SurvivorshipBenefits
Q:Whoareentitledtosurvivorshipbenefits?
A: Upon the death of a member or pensioner, his
beneficiaries shall be entitled to survivorship
benefits.Suchbenefitshallconsistof:
1. The basic survivorship pension which is
50%ofthebasicmonthlypension;and
2. The dependent childrens pension not
exceeding 50% of the basic monthly
pension
Q: Under what conditions are the primary
beneficiaries entitled to the basic monthly
pension?
A: Upon the death of a member, the primary
beneficiariesshallbeentitledto:
1. Survivorship pension: Provided, That the
deceased:
a. was in the service at the time of his
death;or
b. if separated from the service, has
rendered at least 3 years of service
atthetimeofhisdeathandhaspaid
36 monthly contributions within the
fiveyear period immediately
preceding his death; or has paid a
total of at least 180 monthly
contributionspriortohisdeath;or
2. The survivorship pension plus a cash
payment equivalent to 100% of his
average monthly compensation for every
year of service: Provided, That the
deceasedwasintheserviceatthetimeof
 SOCIAL LEGISLATION
hisdeathwithatleast3yearsofservice;
OR
3.Acashpaymentequivalentto100%ofhis
average monthly compensation for each
year of service he paid contributions, but
not less than P12,000.00: Provided, That
the deceased has rendered at least 3
years of service prior to his death but
does not qualify for the benefits under
item(1)or (2)ofthisparagraph.[Sec.21
(a)]
Q:Aftertheendoftheguaranteed30months,are
the beneficiaries still entitled to any survivorship
benefits?
A: Yes. The survivorship pension shall be paid as
follows:
1. When the dependent spouse is the only
survivor, he/she shall receive the basic
survivorshippensionforlifeoruntilheor
sheremarries;
2. When only dependent children are the
survivors, they shall be entitled to the
basic survivorship pension for as long as
they are qualified, plus the dependent
childrens pension equivalent to 10% of
the basic monthly pension for every
dependentchildnotexceeding5,counted
from the youngest and without
substitution;
3. When the survivors are the dependent
spouse and the dependent children, the
dependent spouse shall receive the basic
survivorship pension for life or until
he/she remarries, and the dependent
children shall receive the dependent
childrenspension.(Sec.21[b])
Note:Thedependentchildrenshallbeentitledtothe
survivorship pension as long as there are dependent
children and, thereafter, the surviving spouse shall
receive the basic survivorship pension for life or until
heorsheremarries.
Q: When are secondary beneficiaries entitled to
survivorshipbenefits?
A: In the absence of primary beneficiaries, the
secondarybeneficiariesshallbeentitledto:
1. The cash payment equivalent to 100% of
his average monthly compensation for
each year of service he paid
contributions, but not less than
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
P12,000.00:Provided,Thatthememberis
intheserviceatthetimeofhisdeathand
hasatleast3yearsofservice;or
2. Intheabsenceofsecondarybeneficiaries,
the benefits under this par. shall be paid
tohislegalheirs.(Sec.21[c])
Q:Whatarethebenefitsthatthebeneficiariesare
entitledtouponthedeathofthepensioner?
A:
1. Upon the death of an oldage pensioner
or a member receiving the monthly
income benefit for permanent disability,
the qualified beneficiaries shall be
entitled to the survivorship pension
defined in Sec. 20 of this Act, subject to
theprovisionsofpar.(b)ofSec.21.
2. When the pensioner dies within the
period covered by the lump sum, the
survivorship pension shall be paid only
aftertheexpirationofthesaidperiod.
Q: Gary Leseng was employed as a public school
teacherattheMarinduqueHigh.OnApril27,1997,
amemorandumwasissuedbytheschoolprincipal
designating Gary to prepare the model dam
project, which will be the official entry of the
school in the search for Outstanding Improvised
Secondary Science Equipment for Teachers. Gary
compliedwithhissuperior'sinstructionandtook
hometheprojecttoenablehimtofinishbefore
the deadline. While working on the model dam
project, he came to contact with a live wire and
was electrocuted. The death certificate showed
that he died of cardiac arrest due to accidental
electrocution.
Bella (Garys commonlaw wife) and Jobo (his
onlyson)filedaclaimfordeathbenefitswiththe
GSISwhichwasdeniedonthegroundthatGarys
death did not arise out of and in the course of
employment and therefore not compensable
because the accident occurred in his house and
not in the school premises. Is Bella entitled to
file a claim for death benefits with the GSIS?
Why?
A: The beneficiaries of a member of the GSIS are
entitled to the benefits arising from the death
of said member. Death benefits are called
survivorship benefits under the GSIS Law. Not
beingabeneficiary,Bellaisnotentitled to receive
survivorship benefits. She is not a beneficiary
becausesheisacommonlawwifeandnotalegal
dependentspouse.(1991BarQuestion)
Q: Is the cause of death of Gary (cardiac arrest
121
UNIVERSITYOFSANTOTOMAS
Facultad de Derecho Civil
 UST GOLDEN NOTES 2011
due to accidental electrocution in his house)
compensable?Why?
A:Yes.TobecompensableundertheGSISLaw,the
deathneednotbeworkconnected.
Q: Abraham, a policeman, was on leave for a
month.Whilerestingintheirhouse,heheardtwo
of his neighbors fighting with each other.
Abraham rushed to the scene intending to
pacify the protagonists.However,hewasshotto
death by one of the protagonists. Eva Joy, a
housemaid, was Abraham's surviving spouse
whom he had abandoned for another woman
years back. When she learned of Abraham's
death, Eva Joy filed a claim with the GSIS for
death benefits. However, her claim was denied
because:(a)whenAbrahamwaskilled,hewason
leave; and (b) she was not the dependent
spouse of Abraham when he died. Resolve with
reasons whether GSIS is correct in denying the
claim.
A: Yes, because under the law, a dependent is one
whoisalegitimatespouselivingwiththeEe.
(Art.167[i],LC)In theproblemgiven,EvaJoy had
been abandoned byAbrahamwhowasthenliving
already with another woman at the time of his
death.
Moreover, Abraham was on leave when he was
killed. The 24hour duty rule does not apply when
thepolicemanisonvacationleave.(ECCv.CA,G.R.
No. 121545, Nov. 14, 1996) Taking together
jurisprudence and the pertinent guidelines of the
ECC with respect to claims for death benefits,
namely:
1. That the Ee must be at the place where
hisworkrequireshimtobe;
2. That the Ee must have been performing
hisofficialfunctions;and
3. That if the injury is sustained elsewhere,
theEemusthavebeenexecutinganorder
for the Er, it is not difficult to understand
then why Eva Joy's claim was denied by
the GSIS. (Tancinco v. GSIS, G.R. No.
132916,Nov.16,2001)
In the present case, Abraham was resting at his
house when the incident happened; thus, he was
not at the place where his work required him to
be.AlthoughatthetimeofhisdeathAbrahamwas
performing a police function, it cannot be said
that his death occurred elsewhere other than the
place where he was supposed to be because he
was executing an order for his Er. (2005 Bar
Question)
122
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
FuneralBenefits
Q:Whatcomprisesthefuneralbenefit?
A:CashnotlessthanP12,000tobeincreasedtoat
leastP18,000after5years(specificallyyear2002).
The amount shall be determined and specified by
theGSISthroughaninformationcirculardistributed
to all Ers for posting at their premises. (Sec. 23,
par.1)
Q:Whenwillitbepaid?
A:Uponthedeathof:
1. Anactivemember
2. Amemberwhohasbeenseparatedfrom
the service but is entitled to future
separationorretirementbenefits
3. A member who is a pensioner (excluding
survivorshippensioners)
4. A retiree who is at the time of his
retirement was of pensionable age, at
least 60 years old, who opted to retire
under RA 1616 (An act further amending
Sec.12, C.A. 186, as amended, by
prescribingtwoothermodesofretirement
andforotherpurposes).
LifeInsurance
Q:Whataretheclassesoflifeinsurancecoverage?
A:
1. Compulsorylifeinsurance
2. Optionallifeinsurance
Note:Theplansmaybeendowmentorordinarylife.
Q:Whendoescompulsorylifeinsurancecoverage
takeeffect?
A: All Ees including the members of the Judiciary
and the Constitutional Commissioners except for
MembersoftheAFP,thePNP,BFPandBJMP,shall,
under such terms and conditions as may be
promulgated by the GSIS, be compulsorily covered
with life insurance, which shall automatically take
effectasfollows:
1. Those employed after the effectivity of
this Act, their insurance shall take effect
onthedateoftheiremployment;
2. For those whose insurance will mature
after the effectivity of this Act, their
insurance shall be deemed renewed on
the day following the maturity or expiry
dateoftheirinsurance;
 SOCIAL LEGISLATION
3. Forthosewithoutanylifeinsuranceasof
the effectivity of this Act, their insurance
shalltakeeffectfollowingsaideffectivity.
Q: When may a member obtain optional life
insurancecoverage?
A:
1. A member may at any time apply for
himself and/or his dependents an
insurance and/or preneed coverage
embracing:
a. Life
b. Memorialplans
c. Health
d. Education
e. Hospitalization
f. Other plans as maybe designed by
GSIS
2. Any employer may apply for group
insurancecoverageforitsemployees.
Q:WherecanGSISloansbeinvestedin?
A:
1. In direct housing loans to members and
group housing projects secured by first
mortgage giving priority to the low
incomegroups
2. In short and medium term loans to
members such as salary, policy,
educational, emergency stock purchase
plan,andothersimilarloans
Q: What is the prescriptive period to claim the
benefits?
A:
GR:4Yearsfromthedateofcontingency
XPN:Lifeinsuranceandretirement(Sec.28)
Q: What is the process for the adjudication of
claimsanddisputesregardingtheGSISbenefits?
A:ThequasijudicialfunctionsoftheGSISshallbe
vestedinitsBoardofTrustees.
1. The GSIS, in appropriate cases, or any
person whose rights are or may be
prejudiced by the operations or
enforcementofR.A.8291andotherlaws
administered by the GSIS, may file a
petition before the GSIS either personally
orthroughcounsel.
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
2. Within15daysfromreceiptofthenotice
ofdecisionoraward,theaggrievedparty
mayappealthedecisionoftheGSISBoard
of Trustees to the CA. Appeal shall be
taken by filling a verified petition for
review with the CA. (Sec 1 to 5, Rule 43,
RulesofCourt)
3. Whennoappealisperfectedandthereis
no order to stay by the Board,by the CA
orbytheSC,anydecisionorawardofthe
Board shall be enforced and executed in
thesamemannerasdecisionsoftheRTC.
Note:Thesocialsecuritybenefitsshallbe
exempt from attachment, garnishment,
execution, levy or other processes issued
by the courts, quasijudicial bodies or
administrative agencies including the
Commission on Audit, disallowances, and
from all financial obligations of the
members.
Q:Mayamemberenjoythebenefitsprovidedfor
in the Revised GSIS Act simultaneous with similar
benefits provided under other laws for the same
contingency?
A:Wheneverotherlawsprovidesimilarbenefitsfor
the same contingencies covered by this Act, the
memberwhoqualifiestothebenefitsshallhavethe
optiontochoosewhichbenefitswillbepaidtohim.
However,ifthebenefitsprovidedbythelawchosen
are less than the benefits provided under this Act,
theGSISshallpayonlythedifference.(Sec.55)
d.Beneficiaries
Q:Whoaretheconsideredbeneficiaries?
A:
1. Primarybeneficiaries
a. The legal dependent spouse until
he/sheremarriesand
b. Thedependentchildren.(Sec.2[g])
2. Secondarybeneficiaries
a. Thedependentparentsand
b. Subject to the restrictions on
dependent children, the legitimate
descendants.(Sec.2[h])
Q:Whoareconsidereddependents?
A:
1. Legitimatespousedependentforsupport
uponthememberorpensioner;
2. Legitimate, legitimated, legally adopted
child,includingtheillegitimatechild,
a. whoisunmarried,
123
UNIVERSITYOFSANTOTOMAS
Facultad de Derecho Civil
 UST GOLDEN NOTES 2011
b. notgainfullyemployed,
c. not over the age of majority, or if
over the age of majority,
incapacitated and incapable of self
support due to a mental or physical
defect acquired prior to age of
majority;and
3. Parentsdependentuponthememberfor
support.(Sec.2[f])
3.LIMITEDPORTABILITYLAW
(RA7699)
Q:WhatistheLimitedPortabilityRule?
A: A covered worker who transfers employment
fromonesectortoanotherorisemployedonboth
sectors, shall have creditable services or
contributions on both Systems credited to his
service or contribution record in each of the
Systems and shall be totalized for purposes ofold
age, disability, survivorship, and other benefits in
eitherorbothSystems.(Sec.3)
All contributions paid by such member personally,
andthosethatwerepaidbyhisemployerstoboth
Systems shall be considered in the processing of
benefits which he can claim from either or both
Systems.(Sec.4)
Q:Howarethe"portability"provisionsofR.A.No.
7699 beneficial or advantageous to SSS and GSIS
members in terms of their creditable employment
servicesintheprivatesectororthegovernment,as
the case may be, for purposes of death, disability
orretirement?
A: Portability provisions of R.A. No. 7699 shall
benefit a covered worker whose creditable
services or contributions in both systems credited
tohisserviceorcontributionrecordineachofthe
system and shall be totalized for purposes of old
age, disability, survivorship and other benefits.
(Sec. 3)
The"portability"provisionsofR.A.7699allowthe
transferoffundsfortheaccountandbenefitofthe
workerwhotransfersfromonesystemtoanother.
This is advantageous to the SSS and GSIS members
for purposes of death, disability or retirement
benefits. In the event the employees transfer from
theprivatesectortothepublicsector,orviceversa,
their creditable employment services and
contributions are carried over and transferred as
well.(2005BarQuestion)
124
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
4.EMPLOYEESSCOMPENSATION
Q: Discuss briefly the Employees Compensation
Program(ECP).
A: It is the program provided for in Article 166 to
208 of the Labor Code whereby a fund known as
the State Insurance Fund (SIF) is established
through premium payments exacted from Ers and
from which the Ees and their dependents in the
event of workconnected disability or death, may
promptly secure adequate income benefit, and
medicalorrelatedbenefits.
Coverage
Q:WhoaresubjecttocoverageundertheECP?
A:ErsandtheirEesnotoversixty(60)yearsofage
are subject to compulsory coverage under this
program.
TheErmaybelongtoeitherthe:
1. Public sector covered by the GSIS, comprising
the National Government, including GOCCs,
PhilippineTuberculosesSociety,thePhilippine
NationalRedCros,andthePhilippineVeterans
Bank;and
2. Private sector covered by the SSS, comprising
all Ers other than those defined in the
immediatelyprecedingparagraph.
TheEemaybelongtoeitherthe:
1. Public sector comprising the employed
workers who are covered by the GSIS,
including the members of the AFP, elective
officials who are receiving regular salary and
any person employed as casual emergency,
temporary,substituteorcontractual;
2. Private sector comprising the employed
workerswhoarecoveredbytheSSS.
Q:Whendoescompulsorycoveragetakeeffect?
A:
1. Employeronthefirstdayofoperation
2. Employeeonthedayofhisemployment
Q:WhatisanOccupationalDisease?
A: One which results from the nature of the
employment, and by nature is meant conditions
which all Ees of a class are subject and which
produce the disease as a natural incident of a
particular occupation, and attach to that
 SOCIAL LEGISLATION
occupationahazardwhichdistinguishesitfromthe
usual run of occupations and is in excess of the
hazardattendingtheemploymentingeneral
To be occupational, the disease must be one
wholly due to causes and conditions which are
normalandconstantlypresentandcharacteristicof
theparticularoccupation.
Q:WhatisSickness?
A: It means any illness definitely accepted as an
occupational disease listed by the Commission or
anyillnesscausedbyemployment,subjecttoproof
thattheriskofcontractingthesameisincreasedby
workingconditions(Art.167(l),LC).
Q:DiscussbrieflythetheoryofIncreasedRisk.
A:ThetermsicknessasdefinedinArticle167(l)of
the Labor Code is a recognition of the theory of
increased risk. To establish compensability under
thesame,theclaimantmustshowsubstantialproof
ofworkconnection,butwhatisrequiredismerely
a reasonable workconnection and not a direct
causalrelation.Proofofactualcauseoftheailment
isnotnecessary.Thetestofevidenceofrelationof
thediseasewiththeemploymentisprobabilityand
notcertainty.(Jimenezv.EmployeesCompensation
Commission, G.R. No. L58176, March 23, 1984;
Panotesvs.ECC,G.R.No.L64802,March29,1984)
Q: May an illness not listed by the Employees
Compensation Commission as an occupational
diseasebecompensable?
A:WheretheillnessisnotlistedbytheEmployees
Compensation Commission as an occupational
disease, it must be established that the risk of
contracting the same is increased by working
conditions.
Q:WhatdefensesmaybeinterposedbytheState
Insurance Fund (SIF) against a claim for
compensation made by a covered Ee or his
dependents?
A:Thefollowingdefensesmaybesetup:
1. Injury is not workconnected or the
sicknessisnotoccupational
2. Disabilityordeathwasoccasionedbythe
Eesintoxication,wilfulintentiontoinjure
orkillhimselforanother,orhisnotorious
negligence(Art.172,LC)
3. Nonoticeofsickness,injuryordeathwas
giventotheEr(Art.206,LC)
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
4. Claim was filed beyond three (3) years
fromthetimethecauseofactionaccrued
(Art.201,LC,asamendedbyP.D.1921)
Note: Notorious negligence is equivalent to gross
negligence; it is something more than mere
carelessnessorlackofforesight.
Q: Abraham Dino works as a delivery man in a
construction supply establishment owned by
Abraham Julius. One day, while Dino was making
reportsonhisdelivery,hehadanaltercationwith
Julius; irked by the disrespectful attitude of Dino,
JuliuspulledouthisgunandshotDino,hittinghim
in the spinal column and paralyzing him
completely.Juliuswasprosecutedfortheact.
1. Is the disability suffered by Abraham Dino
compensable?
2. IfAbrahamDinorecoverscompensationfrom
the SIF, can he still recover from Abraham
Juliusdamagesinthecriminalcase?Why?
A:
1. Yes.TheinjurywassustainedbyAbrahamDino
in his place of work and while in the
performanceofhisofficialfunctions.
2. No. Under Article 173 of the Labor Code, as
amendedbyP.D.1921,theliabilityoftheState
Insurance Fund under the Employees
Compensation Program shall be exclusive and
in place of all other liabilities of the Er to the
Ee or his dependents or anyone otherwise
entitled to recover damages on behalf of the
Eeorhisdependents.
Q: Socrates Benjie, a truck driver employed by a
local construction company, was injured in an
accident while on assignment in one of his
employers project in Iraq. Considering that his
injury was sustained in a foreign country, is
SocratesBenjieentitledtobenefitsundertheECP?
A:Yes.Filipinosworkingabroadintheserviceofan
Er, domestic or foreign, who carries on in the
Philippines any trade, business, industry,
undertaking or activity of any kind, are covered by
theECP.(Rule1,Section5,ECCRules;Art.169,LC)
Q: What is the Going and Coming Rule? Is this
ruleabsolute?
A: GR: In the absence of special circumstances, an
Ee injured while going to or coming fromhis place
ofworkisexcludedfromthebenefitsofWorkmens
CompensationAct.
XPNS:
125
UNIVERSITYOFSANTOTOMAS
Facultad de Derecho Civil
 UST GOLDEN NOTES 2011
1. WheretheEeisproceedingtoorfromhis
workonthepremisesoftheEr;
2. ProximityRulewheretheEeisaboutto
enter or about to leave the premises of
his Er by way of exclusive or customary
meansofingressandegress;
3. Eeischarged,whileonhiswaytoorfrom
his place of employment or at his home,
or during this employment with some
dutyorspecialerrandconnectedwithhis
employment;and
4. Where the Er as an incident of the
employment provides the means of
transportation to and from the place of
employment.
Q:WhoareentitledtobenefitsundertheECP?
A: The covered Ee, his dependents, and in case of
hisdeath,hisbeneficiaries.
Q:WhoarethedependentsoftheEe?
A:
1. Legitimate, legitimated, legally adopted
or acknowledged natural child who is
unmarried, not gainfully employed, and
not over twentyone (21) years of age or
over twentyone (21) years of age
provided he is incapacitated and
incapableofselfsupportduetoaphysical
or mental defect which is congenital or
acquiredduringminority;
2. LegitimatespouselivingwiththeEe;and
3. ParentsofsaidEewhollydependentupon
himforregularsupport.(Art.167(i),LC,as
amendedbyP.D.1921)
Q:Whoareincludedinthetermbeneficiaries?
A: "Beneficiaries" means the dependent spouse
untilheremarriesanddependentchildren,whoare
the primary beneficiaries. In their absence, the
dependent parents and subject to the restrictions
imposed on dependent children, the illegitimate
children and legitimate descendants who are the
secondary beneficiaries;Provided, that the
dependent acknowledged natural child shall be
consideredasaprimarybeneficiarywhenthereare
nootherdependentchildrenwhoarequalifiedand
eligibleformonthlyincomebenefit.(Art.167,LC,as
amendedbySec.I,P.D.1921)
Q: What are the benefits which may be enjoyed
undertheSIF?
A:
1. MedicalBenefits
126
LABORLAWTEAM:
ADVISER:ATTY.JOEVEND.DELLOSA;SUBJECTHEAD:ANGELOS.DIOKNO;ASST.SUBJECTHEADS:KARENSABUGO,GENESISR.FULGENCIO
MEMBERS:PALMACLARISSAV.CARILLO,RANDOLPHIANCLET,MICHAELAARONP.GACUTAN,LORRAINETAGUIAM
2. DisabilityBenefits
3. DeathBenefits
4. FuneralBenefits
MedicalBenefit
Q: What are the conditions of entitlement to
MedicalServices?
A:ForanEetobeentitledtomedicalservices,the
followingconditionsmustbesatisfied:
1. HehasbeendulyreportedtotheSystem
(SSSorGSIS);
2. He sustains a permanent disability as a
resultofaninjuryorsickness;and
3. TheSystemhasbeennotifiedoftheinjury
orsicknesswhichcausedhisdisability.
DisabilityBenefit
Q:Whataredisabilitybenefits?
A: They are income benefits in case of temporary
total disability, permanent total disability and
permanentpartialdisability
Q: What are the disabilities that are considered
totalandpermanent?
A: The following disabilities shall be deemed total
andpermanent:
1. Temporary total disability lasting
continuously for more than one hundred
twenty days, except as otherwise
providedforintheRules;
3. Completelossofsightofbotheyes;
4. Lossoftwolimbsatorabovetheankleor
wrist;
5. Permanent complete paralysis of two
limbs;
6. Brain injury resulting in incurable
imbecilityorinsanity;and
7. SuchcasesasdeterminedbytheMedical
Director of the System and approved by
theCommission.(Art.192(c),LC)
Q: May a permanent partial disability be
converted to permanent total disability after the
Eesretirement?Why?
A:Yes.Thisisinlinewiththesocialjusticeprovision
in the Constitution. A persons disability may not
manifestitselffullyatoneprecisemomentintime
but rather over a period of time. And disability
should not be understood more on its medical
significancebutonthelossofearningcapacity.
 SOCIAL LEGISLATION
Q: May permanent total disability arise although
the Ees does not lose the use of any part of his
body?
A: Yes. Where the Ee is unable, by reason of the
injuryorsickness,toperformhiscustomaryjobfor
more than 120 days, permanent total disability
arises. (Ijares vs. CA, G.R. No. 105854, August 26,
1999)
DeathBenefit
Q: What are the conditions for entitlement to
deathbenefits?
A: The beneficiaries of a deceased Ee shall be
entitledtoanincomebenefitifallofthefollowing
conditionsaresatisfied:
1. The Ee has been duly reported to the
System;
2. He died as a result of an injury or
sickness;and
3. The System has been duly notified of his
death, as well as the injury or sickness
whichcausedhisdeath.
Q: For how long are the primary beneficiaries
entitledtothedeathbenefits?
A:
1. Dependent Spouseuntil he or she
remarries.
2. Dependent Childrenuntil they get
married, or find gainful employment, or
reachtwentyone(21)yearsofage.
3. Dependent Child suffering from physical
or mental defectuntil such defect
disappears.
Q: If an Ee suffers disability or dies before he is
duly reported for coverage to the System (SSS or
GSIS),whowillbeliableforthebenefits?
A: TheEr(Sec.1,RuleX;Sec.1,RuleXI;Sec.1,Rule
XII;Sec.1,RuleXIII;ECCRules)
FuneralBenefit
Q:Whatisthefuneralbenefit?
A: A funeral benefit of P10, 000.00 shall be paid
upon the death of a covered Ee or permanently
totallydisabledpensioner.
Q: When is an Er liable to pay a penalty to the
StateInsuranceFund(SIF)?
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
VICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ
A: In case the employee's injury or death was due
to the failure of the employer to comply with any
law, or to install and maintain safety devices, or
takeotherprecautionsforthepreventionofinjury,
saidemployershallpaytotheStateInsuranceFund
a penalty of twentyfive percent of the lump sum
equivalent of the income benefit payable by the
System to the employee. All employers, especially
those who should have been paying a rate of
contribution higher than required of them under
thisTitle,areenjoinedtoundertakeandstrengthen
measuresfortheoccupationalhealthandsafetyof
theiremployee.(Art.200,LC)
Q:Whoarerequiredtomakecontributionstothe
SIF?
A: Contributions under this Title shall be paid in
theirentiretybytheemployerandanycontractor
device for the deduction of any portion thereof
from the wages or salaries of the employees shall
benullandvoid.(Art.183(c),LC)
The Republic of the Philippines guarantees the
benefits prescribed under this Title, and accepts
general responsibility for the solvency of the State
InsuranceFund.Incaseofanydeficiency,thesame
shall be covered by supplemental appropriation
fromthenationalgovernment.(Art.184,LC)
Q: When does the right to compensation or
benefit for loss or impairment of an Ees earning
capacity due to workrelated illness or injury
arise?
A: It arises or accrues upon, and not before, the
happening of the contingency. Hence, an Ee
acquires no vested right to a program of
compensation benefits simply because it was
operative at the time he became employed. (San
Miguel Corporation vs. NLRC, G.R. No. 57473,
August15,1988)
Q: Does recovery from the SIF bar a claim for
benefitsundertheSSSLaw?Why?
A:No,asexpresslyprovidedforinArticle173ofthe
Labor Code, payment of compensation under the
SIFshallnotbartherecoveryofbenefitsunderthe
SSS Law, Republic Act No. 1161, as amended.
BenefitsundertheSIFaccruetotheEesconcerned
duetohazardsinvolvedandaremadeaburdenon
the employment itself. On the other hand, social
security benefits are paid to SSS members by
reasonoftheirmembershipthereinforwhichthey
contribute their money to a general fund. (Maao
Sugar Central Co., Inc. vs. CA, G.R. No. 83491,
August27,1990)
127
UNIVERSITYOFSANTOTOMAS
Facultad de Derecho Civil