Labor Law and Social Legislation
SOCIAL AND WELFARE LEGISLATION (P.D. 629)
Q: What is Social Legislation?
A: It consists of statutes, regulations and
jurisprudence that afford protection to labor,
especially to working women and minors, and is in
full accord with the constitutional provisions on the
promotion of social justice to insure the well-being
and economic security of all the people.
SOCIAL SECURITY SYSTEM LAW (R.A. 8282)
Q: What is the policy objective in the enactment of
the Social Security System Law?
A: To establish, develop, promote and perfect a
sound and viable tax-exempt social security service
suitable to the needs of the people throughout the
Philippines, 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
contingencies resulting in loss of income or financial
burden. (Sec. 2, R.A. 8282)
Note: The enactment of SSS law is a legitimate exercise of
the police power. It affords protection to labor and is in full
accord with the constitutional mandate on the promotion
of social justice [Roman Catholic Archbishop of Manila vs.
SSS, G.R. No. 15045, (1961)].
Q: Are the SSS premiums considered as taxes?
A: No. The funds contributed to the System belong to
the members who will receive benefits, as a matter of
right, whenever the hazards provided by the law
occur [CMS Estate, Inc., vs. SSS, G.R. No. 26298,
(1984)].
Q: Are benefits received under SSS Law part of the
estate of a member?
A: No. Benefits receivable under the SSS Law are in
the nature of a special privilege or an arrangement
secured by the law pursuant to the policy of the State
to provide social security to the workingman. The
benefits are specifically declared not transferable and
exempt from tax, legal processes and liens [SSS vs.
Davac, et. al., G.R. No.21642, (1966)].
Q: Who is an employer?
A: Any person, natural or juridical, domestic or
foreign, who carries into the Phils. any trade,
business, industry, undertaking or activity of any kind
and uses the services of another person who is under
UNIVERSITY OF SANTO TOMAS
2013 GOLDEN NOTES
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 self-employed person shall be both Ee and Er
at the same time. (Sec 8[c], R.A. 8282)
Q: Who is an employee?
A: Any person who performs services for an Er in
which either or both mental and physical efforts are
used and who receives compensation for such
services, where there is an Er-Ee relationship:
Provided, That a self-employed person shall be both
Ee and Er at the same time. (Sec. 8[d], R.A. 8282)
Q: What is employment?
A: GR: Any service performed by an Ee for his Er.
XPNs:
1. Employment purely casual and not for the
purpose of occupation or business of the Er;
2. Service performed on or in connection with
an alien vessel by an Ee if he is employed
when such vessel is outside the Phils;
3. Service performed in the employ of the Phil.
Government or instrumentality or agency
thereof;
4. Service performed in the employ of a foreign
government or international organization, or
their wholly-owned instrumentality:
5. Such other services performed by temporary
and other Ees which may be excluded by
regulation of the SSC. Ees of bona fide
independent contractors shall not be deemed
Ees of the Er engaging the services of said
contractors. (Sec. 8[j], R.A. 8282)
Q: What is a contingency?
A: The retirement, death, disability, injury or sickness
and maternity of the member.
COVERAGE
Q: Who are covered by SSS?
A:
1. Compulsory Coverage
a. All Ees not over 60 years of age and their Ers;
b. Domestic helpers whose income is not less
than P 1000/month and not over 60 years of
age and their Ers;
Limitations:
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 SOCIAL AND WELFARE LEGISLATION
i. Any benefit earned by the Ees
under private benefit plans
existing at the time of the approval
of the Act shall not be
discontinued, reduced or
otherwise impaired;
ii. Existing private plans shall be
integrated with the SSS but if the
Er under such plan is contributing
more than what is required by this
Act, he shall pay to the SSS the
amount required to him, and he
shall continue with his
contributions less the amount paid
to SSS;
iii. Any changes, adjustments,
modifications, eliminations or
improvements in the benefits of
the remaining private plan after
the integration shall be subject to
agreements between the Ers and
the Ees concerned; and
iv. The private benefit plan which the
Er shall continue for his Ees shall
remain under the Ers management
and control unless there is an
existing agreement to the contrary
c. All self-employed considered both an Er
and Ee
d. Professionals;
e. Partners and single proprietors of business;
f. Actors and actresses, directors, scriptwriters
and news correspondents who do not fall
within the definition of the term Ee;
g. Professional athletes, coaches, trainers and
jockeys; AND
h. Individual farmers and fisherman. (Sec. 9,
R.A. 8282)
2. Voluntary
a. Spouses who devote full time to managing
the household and family affairs, unless they
are also engaged in other vocation or
employment which is subject to mandatory
coverage ; (Sec. 9[b], R.A. 8282)
b. Filipinos recruited by foreign-based Ers for
employment abroad may be covered by the
SSS on a voluntary basis; (Sec. 9[c], R.A.
8282)
c. Ee separated from employment to maintain
his right to full benefits
d. Self-employed who realizes no income for a
certain month
3. By agreement
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Any foreign government, international
organization, or their wholly-owned
instrumentality employing workers in the
Philippines, may enter into an agreement with
the Philippine government for the inclusion of
such Ees in the SSS except those already covered
by their respective civil service retirement
systems.
Q: Are seafarers covered by the SSS Law?
A: Yes. The result of the Memorandum of Agreement
entered by SSS and DOLE approved by the Social
Security Commission per the Commission's
Resolution No. 437, dated July 14, 1988 was that the
Standard Contract of Employment to be entered into
between foreign shipowners and Filipino seafarers is
the instrument by which the former express their
assent to the inclusion of the latter in the coverage of
the Social Security Act. In other words, the extension
of the coverage of the SSS to Filipino seafarers arises
by virtue of the assent given in the contract of
employment signed by Er and seafarer [Ben Sta. Rita
v. Court of Appeals, G.R. No. 119891, (1995)].
Note: By extending the benefits of the Social Security Act to
Filipino seafarers on board foreign vessels, the individual
employment agreements entered into with the stipulation
for such coverage contemplated in the DOLE-SSS
Memorandum of Agreement, merely gives effect to the
constitutional mandate to the State to afford protection to
labor whether "local or overseas." (Ibid.)
Q: When is the compulsory coverage deemed
effective?
A:
1. Employer on the first day of operation
2. Employee on the day of his employment
3. Compulsory coverage of self-employed upon
his registration with the SSS
Q: What is the effect of separation of an employee
from his employment under compulsory coverage?
A:
1. His Ers obligation to contribute arising from that
employment shall cease at the end of the month
of separation,
2. But said Ee shall be credited with all
contributions paid on his behalf and entitled to
benefits according to the provisions of R.A. 9282.
3. He may, however, continue to pay the total
contributions to maintain his right to full benefit.
(Sec. 11, R.A. 8282)
UNIVERSITY OF SANTO TOMAS
FACULTY OF CIVIL LAW
 Labor Law and Social Legislation
Note: The above provision recognizes the once a member,
always a member rule.
Q: What is the effect of interruption of business or
professional income?
A: If the self-employed member realizes no income in
any given month:
1. He shall not be required to pay contributions for
that month.
2. He may, however, be allowed to continue paying
contributions under the same rules and
regulations applicable to a separated Ee member:
3. Provided, that no retroactive payment of
contributions shall be allowed other than as
prescribed under Sec.22-A. (Sec. 11-A, R.A. 8282)
Q: What is a self-employed individual?
A: A self-employed person is one whose income is not
derived from employment as well as those
mentioned in Sec. 9-A of the law, including:
1. All self-employed professionals;
2. Partners and single proprietors of business;
3. Actors and actresses, directors, scriptwriters
and news correspondents who do not fall
within the definition of the term Ee in Sec. 8
of this Act;
4. Professional athletes, coaches, trainers and
jockeys; and
5. Individual farmers and fishermen. [Sec. 8(s),
RA 8282]
Q: On her way home from work, Mikaela, a machine
operator in a sash factory, decided to watch a movie
in a movie house. However, she is stabbed by an
unknown assailant. When she filed a claim for
benefits under the SSS Law, it was denied on the
ground that her injury is not work-connected. Is the
denial legal? Why?
A: No. It is not necessary, for the enjoyment of
benefits under the SSS Law that the injury is work-
connected. What is important is membership in the
SSS and not the causal connection of the work of the
Ee to his injury or sickness.
Note: Claims based on work-connected injuries or
occupational diseases are covered by the State Insurance
Fund.
Q: How are contributions of the self-employed to
the SSS determined?
UNIVERSITY OF SANTO TOMAS
2013 GOLDEN NOTES
A: The contribution shall be determined in
accordance with Sec. 18 of the SSS Law, provided
that:
1. The monthly earnings declared as the time of
registration shall be considered as his monthly
compensation and he shall pay for both Er and Ee
contributions
2. The monthly earnings declared at the time of
registration shall remain the basis of his monthly
salary credit, unless another declaration of his
monthly earnings was made, the latter becomes
the new basis of his monthly salary credits. [Sec.
19-A, R.A. No. 8282]
Q: How much is the monthly pension?
A:
1. The monthly pension shall be the highest of the
following amounts:
a. The sum of the following:
i. Php 300.00; plus
ii. 20% of the average monthly salary credit;
plus
iii. 2% of the average monthly salary credit
for each credited year of service in excess
of 10 years; or
b. 40% of the average monthly salary credit; or
c. Php 1,000.00, provided that the Monthly
Pension shall in no case be paid for an
aggregate amount of less than sixty (60)
months (Sec. 12 [a], R.A. 8282)
2. Minimum Pension
a. Php 1,200.00 - members with at least 10
credited years of service
b. Php 2, 400.00 for those with 20 credited
years of service. (Sec. [b], R.A. 8282)
Q: What is an average monthly credit?
A: An average monthly credit is the result obtained
by:
1. Dividing the sum of the last 60 monthly salary
credits immediately preceding the semester of
contingency by 60; or
2. Dividing the sum of all the monthly salary credits
paid prior to the semester of contingency by the
number of monthly contributions paid in the
same period, whichever is greater.
Provided, that the injury or sickness which caused the
disability shall be deemed as the permanent disability
for the purpose of computing the average monthly
salary credit.
Q: What is an average daily salary credit?
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 SOCIAL AND WELFARE LEGISLATION
A: An average salary credit is the result obtained by
dividing the sum of the 6 highest monthly salary
credits in the 12-month period immediately
preceding the semester of contingency by 180.
Q: May the monthly pension be suspended?
A: Yes. The monthly pension and dependents
pension shall be suspended:
1. Upon the reemployment or resumption of self-
employment;
2. Recovery of the disabled member from his
permanent total disability
3. Failure to present himself for examination at
least once a year upon notice by the SSS. [Sec.
13-A (b), RA 8282]
EXCLUSIONS FROM COVERAGE
Q: Enumerate the kinds of employment which are
excluded from compulsory coverage under the SSS
Law.
A: Under Section 8(j) of R.A. 1161, as amended, the
following services or employments are excluded from
coverage:
1. Employment purely casual and not for the
purpose of occupation or business of the Er;
2. Service performed on or in connection with an
alien vessel by an employee if he is employed
when such vessel is outside the Philippines;
3. Service performed in the employ of the
Philippine Government or instrumentality or
agency thereof;
4. Service performed in the employ of a foreign
government or international organization, or
their wholly-owned instrumentality:
Provided, however, That this exemption
notwithstanding, any foreign government,
international organization or their wholly-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 of
such Ees in the SSS except those already covered
by their respective civil service retirement
systems: Provided, further, That the terms of
such agreement shall conform with the
provisions of this Act on coverage and amount of
payment of contributions and benefits: Provided,
finally, That the provisions of this Act shall be
supplementary to any such agreement; and
123
5. Such other services performed by temporary and
other Ees which may be excluded by regulation
of the Commission. Ees of bona fide independent
contractors shall not be deemed Ees of the Er
engaging the service of said contractors.
Q: A textile company hires 10 carpenters to repair
the roof of its factory which was destroyed by
typhoon Bening. Are the carpenters subject to
compulsory coverage under the SSS Law? Why?
A: No. the employment is purely casual and not for
the purpose of the occupation or business of the Er.
Their engagement is occasioned by the passage of the
typhoon; they are not hired on a regular basis.
BENEFITS
Q: What are the Benefits under the SSS Act?
A:
1. Sickness Benefits
2. Permanent Disability Benefits
3. Maternity Leave Benefit
4. Retirement Benefit
5. Death and funeral Benefits
Q: Are the Benefits provided for in the SSS Law
transferable?
A: Benefits provided for in the SSS Law are not
transferable and no power of attorney or other
document executed by those entitled thereto in favor
of any agent, attorney or any other person for the
collection thereof on their behalf shall be recognized,
except when they are physically unable to collect
personally such benefits. (Sec.15, R.A. 1161, as
amended)
Q: What are the reportorial requirements of the
employer and self-employed?
A:
1. Er - Report immediately to SSS the names, ages,
civil status, occupations, salaries and dependents
of all his covered Ees
2. Self-employed - Report to SSS within 30 days from
the first day of his operation, his name, age, civil
status, occupation, average monthly net income
and his dependents
SICKNESS BENEFITS
Q: What is sickness benefit?
UNIVERSITY OF SANTO TOMAS
FACULTY OF CIVIL LAW
 Labor Law and Social Legislation
A: It is a daily allowance paid to a covered Ee who
becomes sick and is confined in a hospital for more
than 3 days or elsewhere with the Commissions
approval.
Q: What are the requirements to be entitled for
sickness benefit?
A: Under Sec. 14 of the Social Security Law, the
following are the requisites for the enjoyment by a
covered individual of the sickness benefits:
1. Payment of at least 3 monthly contributions in
the 12-month period immediately preceding the
semester of sickness;
2. Sickness or injury and confinement for more than
3 days in a hospital or elsewhere with the
Commissions approval;
3. Notice of the fact of sickness by the Ee to the Er
(or to the SSS in case the member is
unemployed) within 5 calendar days after the
start of his confinement; and
4. Exhaustion of sick leaves of absence with full pay
to the credit of the Ee.
Q: May the requirement of notification be dispensed
with?
A: Yes. Notification is not necessary when:
1. Confinement is in a hospital; or
2. The employee became sick or was injured
while working or within the premises of the
employer.
Q: Who will pay the sickness benefits and how much
is the benefit?
A:
1. The Er shall pay the Ee for each compensable
confinement or fraction thereof
2. The SSS shall pay the member who is unemployed,
self-employed or voluntary members with a daily
sickness benefit equivalent to 90% of his average
daily salary credit.
The following requisites must be complied with in
order to avail of sickness benefits:
a. In no case shall the daily sickness benefit be paid
longer than 120 days 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 allowable
in the subsequent year;
UNIVERSITY OF SANTO TOMAS
2013 GOLDEN NOTES
b. Not paid for more than 240 days on account of
the same confinement; and
c. Ee member shall notify his Er of the fact of his
sickness or injury within 5 calendar days after the
start of his confinement unless such
confinement:
i. is in a hospital
ii. the Ee became sick or was injured while
working or within the premises of the Er
(notification to the Er not necessary);
Note: If the member is unemployed or self-employed, he
shall directly notify the SSS of his confinement within 5
calendar days after the start thereof unless such
confinement is in a hospital in which case notification is
also not necessary;
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], R.A. 8282)
Note: The law does not require that sickness must be
related to the duties of the beneficiaries.
Q: When will compensable confinement commence?
A:
1. Begins on the 1st day of sickness
2. Payment of such allowances shall be promptly
made by the Er:
th
a. every regular payday or on the 15 and last
day of each month,
b. in case of direct payment by the SSS - as long
as such allowances are due and payable.
(Sec. 14[b], R.A. 8282)
Q: What are the requirements in order that Er may
claim reimbursement of the sickness benefit?
A:
1. 100% of daily benefits shall be reimbursed by SSS
if the following requirements are satisfied:
a. Receipt of SSS of satisfactory proof of such
payment and legality thereof;
b. The Er has notified the SSS of the
confinement within 5 calendar days after
receipt of the notification from the Ee
member.
2. Er shall be reimbursed only for each day of
th
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
notification from the Ee member. (Sec. 14 [c],
R.A. 8282)
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 SOCIAL AND WELFARE LEGISLATION
Q: When will reimbursement be made by SSS?
A: GR: SSS shall reimburse the Er or pay the
unemployed member only for confinement within 1
year immediately preceding the date the claim for
benefit or reimbursement is received by the SSS.
XPN: Confinement in a hospital in which case the
claim for benefit or reimbursement must be filed
within 1 year from the last day of confinement.
(Sec. 14[c], R.A. 8282)
Q: When is the employer or the unemployed
member not entitled to reimbursement?
A:
1. Where the Er failed to notify the SSS of the
confinement;
2. In the case of the unemployed; where he failed
to send the notice directly to the SSS except
when the confinement is in a hospital; and
3. Where the claim for reimbursement is made
after 1 year from the date of confinement.
PERMANENT DISABILITY BENEFITS
Q: What is a permanent disability benefit?
A: It is a cash benefit paid to a member who
becomes permanently disabled, either partially or
totally.
Q: What disabilities are deemed permanent total
disability?
A: Under Sec. 13-A (d) of the SSS Law, the following
disabilities are deemed permanent total:
1. Complete loss of sight of both eyes;
2. Loss of two limbs at or above the ankle or
wrists;
3. Permanent complete paralysis of two limbs;
4. Brain injury resulting to incurable imbecility or
insanity; and
5. Such cases as determined and approved by the
SSS.
Q: Among the persons entitled to permanent
disability benefits are the dependents of the
covered employee. Who are these dependent?
A: The dependents shall be the following:
1. The legal spouse entitled by law to receive
support from the member;
2. The legitimate, legitimated or legally
adopted and illegitimate child who is:
a. Unmarried
125
b. Not gainfully employed and has not
reached the age of 21 years of age;
or
c. If over 21 years of age, he is
congenitally or while still a minor
has been permanently
incapacitated and incapable of self-
support, physically or mentally; and
3. The parent who is receiving regular support
from the member. [Sec. 8 (e), RA 8282]
Q: Compare death benefits with permanent total
disability benefits
A:
Death Benefits PTD Benefits
Requisite
at least 36 monthly contributions
Benefits payable to whom
Primary Beneficiaries Member
Failure to make 36 monthly payments
Benefits shall be in lump sum equivalent to the
monthly pension times the number of monthly
contributions paid to SSS or 12 times the monthly
pension, whichever is higher.
Q: What is the effect of the death of the PTD
pensioner?
A:
1. Primary beneficiaries are entitled to receive
monthly pension as of the date of disability.
2. No primary beneficiaries and he dies within 60
months from the start of his monthly pension -
secondary beneficiaries 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 dependents
pension. (Sec. 13-A [c], R.A. 8282)
Q: What is the effect of retirement or death to
partial disability pension?
A: Disability pension shall cease upon his retirement
or death. (Sec 13-A [j], R.A. 8282)
Q: What is the difference of compensability under
the Labor Law and the Social Security Law?
A: The claims are different as to their nature and
purpose [Ortega vs. Social Security Commission, G.R.
No. 176150, (2008)].
UNIVERSITY OF SANTO TOMAS
FACULTY OF CIVIL LAW
 Labor Law and Social Legislation

LABOR LAW SOCIAL SECURITY LAW RETIREMENT BENEFIT

Purpose
Governs compensability Benefits are intended to Q: What is a retirement benefit?
of : provide insurance or
1. work-related protection against the A: It is a cash benefit paid to a member who can no
disabilities hazards or risks of longer work due to old age.
2. when there is loss disability, sickness, old
of income due to age or death, inter alia, Q: What are the types of retirement benefits?
work-connected irrespective of whether
or work- they arose from or in the A:
aggravated injury course of the 1. Monthly Pension - Lifetime cash benefit paid to a
or illness. employment. retiree who has paid at least 120 monthly
Nature contributions to the SSS prior to the semester of
A disability is total and Disability may be retirement.
permanent if as a result permanent total or 2. Lump Sum Amount - Granted to a retiree who
of the injury or sickness permanent partial. has not paid the required 120 monthly
the Ee is unable to contributions.
perform any gainful
occupation for a Q: Who are entitled to retirement benefits?
continuous period
exceeding 120 days A:
regardless of whether he 1. A member who
loses the use of any of a. is at least 60 years old
his body parts. b. has paid at least 120 monthly contributions
prior to the semester of retirement; and
MATERNITY LEAVE BENEFIT c. already separated from employment or has
ceased to be self-employed,
Q: What is the maternity benefit?
2. A member who is at least 65 years old, shall be
A: The maternity benefit is a daily cash allowance entitled for as long as he lives to the monthly
granted to a female member who was unable to work pension; (Sec 12-B [a], R.A. 8282)
due to childbirth or miscarriage.
3. A member
Q: What are the qualifications for entitlement to the a. At least 60 years old at retirement; and
maternity benefit? b. Does not qualify for pension benefits under
paragraph (a) above - entitled to a lump
A: sum benefit equal to the total contributions
1. She has paid at least three monthly contributions paid by him and on his behalf;
within the 12-month period immediately c. Must be separated from employment and is
preceding the semester of her childbirth or not continuing payment of contributions to
miscarriage. the SSS on his own. (Sec. 12-B [b], R.A. 8282)
2. She has given the required notification of her
pregnancy through her Er if employed, or to the Q: What happens when the retirement pensioner is
SSS if separated, voluntary or self-employed re-employed or resumes self-employment?
member.
A: The monthly pension of a retirement pensioner
Q: Is the voluntary or self-employed member also who resumes employment and is less than 65 years
entitled to the maternity benefit? old will be suspended. He and his Er will again be
subject to compulsory coverage. (Sec. 12-B [c], R.A.
A: Yes, A voluntary or a self-employed member is 8282)
entitled to the maternity benefit provided that she
meets the qualifying conditions as mentioned in the Q: Are the children of a retiree member entitled to
preceding question. the dependent's pension?

A: Yes (Sec. 12[A], R.A. 8282). However, only 5 minor

children, beginning from the youngest, are entitled to

UNIVERSITY OF SANTO TOMAS

2013 GOLDEN NOTES 126
 SOCIAL AND WELFARE LEGISLATION
the dependents pension. No substitution is allowed.
Where there are more than 5 legitimate and
illegitimate children, the legitimate ones will be
preferred.
Q: For how long will the dependent child receive
the pension?
A: Until the child reaches 21 years of age, gets
married, gets employed and earns Php 300 a month
or more, or dies.
However, the dependent's pension is granted for life
to children who are over 21 years old, provided they
are incapacitated and incapable of self-support due
to physical or mental defect which is congenital or
acquired during minority.
DEATH AND FUNERAL BENEFITS
Q: When is a beneficiary entitled to death benefits?
A:
1. Upon death of a member, if he has paid at least
36 monthly contributions prior to the semester
of death:
a. primary beneficiaries shall be entitled to the
monthly pension; or
b. If there are no primary beneficiaries,
secondary beneficiaries shall be 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 pension multiplied by the
number of monthly contributions paid to the
SSS: or
b. 12 times the monthly pension, whichever is
higher. (Sec. 13, R.A. 8282)
Q: Who are primary beneficiaries?
A:
1. The dependent spouse until he or she remarries
2. The dependent legitimate, legitimated or legally
adopted, and illegitimate children: Provided, that
the dependent illegitimate children shall be
entitled to 50% of the share of the legitimate,
legitimated or legally adopted children.
Q: Who are secondary beneficiaries?
127
A:
1. Dependent parents
2. In the absence of the foregoing, any other person
designated by the covered employee as
secondary beneficiary. [Sec. 8(k), R.A. 8282]
Q: Who are considered dependents?
A:
1. The legal spouse entitled by law to receive
support from the member;
2. The legitimate, legitimated, or legally adopted,
and illegitimate child who:
a. Is unmarried,
b. Not gainfully employed, and
c. Has not reached 21 years of age, or if over 21
years of age, he is congenitally or while still a
minor has been permanently incapacitated
and incapable of self-support, physically or
mentally.
3. The parent who is receiving regular support from
the member.
Q: How long shall the primary beneficiaries be
entitled to the death benefits consisting of monthly
pension and dependents pension?
A:
1. Dependent spouse entitled until he/she
remarries
2. Dependent children entitled until:
a) They get married;
b) Find gainful employment;
c) Reach the age of 21 years; or
d) Recover from mental or physical incapacity
and can now support themselves.
Q: What is the funeral benefit?
A: A funeral grant equivalent to Php 12, 000.00 shall
be paid, in cash or in kind, to help defray the cost of
expenses upon the death of a member or retiree.
(Sec. 13-B, R.A. 8282)
BENEFICIARIES
Q: What is meant by dependent for support?
A: The entitlement to benefits as a primary
beneficiary requires not only legitimacy but also
dependence upon the member Ee [Gil v. SSC CA- GR
SP. 37150, (1996)].
If a wife who is already separated de facto from her
husband cannot be said to be "dependent for
support" upon the husband, absent any showing to
UNIVERSITY OF SANTO TOMAS
FACULTY OF CIVIL LAW
 Labor Law and Social Legislation
the contrary. Conversely, if it is proved that the
husband and wife were still living together at the
time of his death, it would be safe to presume that
she was dependent on the husband for support,
unless it is shown that she is capable of providing for
herself [SSS vs. Aguas, G.R. No. 165546, (2006)].
Q: A, an SSS member was survived by his legal wife,
who is not dependent upon him. He was also
survived by two common-law wives with whom he
had illegitimate minor children. Who among them is
entitled to the benefits?
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.
The SSS Law is clear that for a minor child to qualify
as a dependent the only requirements are that
he/she must be below 21 yrs. of age, not married nor
gainfully employed [Signey vs. SSS, G.R. No. 173582,
(2008)].
Q: What is compensation?
A: All actual remuneration for employment, including
the mandated cost of living allowance, as well as the
cash value of any remuneration paid in any medium
other than cash except that part of the remuneration
received during the month in excess of the maximum
salary.
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 workers contended that since the
work would be completed after more than 1 year,
they should be subject to compulsory coverage
under the Social Security Law. Do you agree with
their contention? Explain your answer fully. (2000
Bar Question)
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 Er is excepted
from compulsory coverage. An employment is purely
casual if it is not for the purpose of occupation or
business of the Er.
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
UNIVERSITY OF SANTO TOMAS
2013 GOLDEN NOTES
renovate its building. The work to be 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.
Q: How are disputes settled?
A:
DISPUTE SETTLEMENT
Disputes involving:
1. Coverage
2. Benefits
3. Contributions
4. Penalties
Social 5. Any other matter related
Security thereto.
Commission
(SSC) Note: Disputes within the mandatory
period of 20 days after the submission of
evidence. (Sec. 5a, R.A. 8282)
Decision, in the absence of appeal, shall be
final and executory 15 days after date of
notification. (Sec. 5b, R.A. 8282)
Decisions of SSC shall be appealable
to:
1. CA questions of law and fact (Sec.
CA / SC
5c, R.A. 8282)
2. SC questions of law. (Sec. 5c,
R.A. 8282)
SSC may, motu proprio or on motion
of any interested party, issue a writ of
Execution execution to enforce any of its
of decision decisions or awards, after it has
become final and executory. (Sec. 5d
R.A. 8282)
Q: Can the SSC validly re-evaluate the findings of the
RTC, and on its own, declare the latters decision to
be bereft of any basis?
A: No. It cannot review, much less reverse, decisions
rendered by courts of law as it did in the case at bar
when it declared that the CFI Order was obtained
through fraud and subsequently disregarded the
same, making its own findings with respect to the
validity of Bailon and Alices marriage on the one
hand and the invalidity of Bailon and Teresitas
marriage on the other. In interfering with and passing
upon the CFI Order, the SSC virtually acted as an
appellate court. The law does not give the SSC
unfettered discretion to trifle with orders of 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, (2006)].
128
 SOCIAL AND WELFARE LEGISLATION
Q: Due to the delinquency incurred by ABC Co.
incurred on its premium and loan amortizations, SSS
suggested settling its obligation either through
instalment or through dacion en pago. ABC chose
dacion en pago and offered its property situated in
Baguio City. It was approved by the SSS. However,
SSS refused to accept the payment unless the
interest and charges will be paid. ABC then filed suit
in court. SSS moved for dismissal contending that
the SSC, and not regular courts, has the jurisdiction
to entertain a controversy arising from the non-
implementation of a dacion en pago agreed upon by
the parties as a means of settlement of ABCs
liabilities. Resolve.
A: The law clearly vests upon the Commission
jurisdiction over disputes arising under this Act with
respect to coverage, benefits, contributions and
penalties thereon or any matter related
thereto... Dispute is defined as a conflict or
controversy.From the allegations of the complaint, it
readily appears that there is no longer any dispute
with respect to ABCs accountability to the SSS. It had,
in fact, admitted their delinquency and offered to
settle them by way of dacion en pago subsequently
approved by the SSS in Resolution No. 270-s. 2001.
The controversy, instead, lies in the non-
implementation of the approved and agreed dacion
en pago on the part of the SSS. As such, ABC filed a
suit to obtain its enforcement which is, doubtless, a
suit for specific performance and one incapable of
pecuniary estimation beyond the competence of the
Commission [SSS vs. Atlantic Gulf and Pacific
Company of Manila, Inc. and Semirara Coal Corp.,
G.R. No. 175952, (2008)].
GSIS LAW (R.A. 8291)
Q: What are the purposes behind the enactment of
the GSIS Law?
A: To provide and administer the following social
security benefits for government Ees:
1. Compulsory life insurance
2. Optional life insurance
3. Retirement benefits
4. Disability benefits to work-related contingencies;
and
5. Death benefits
Q: Who are considered employers under the GSIS
Act?
A:
1. National Government
129
2. Its political subdivisions, branches, agencies,
instrumentalities
3. GOCCs, and financial institutions with original
charters
4. Constitutional Commissions and the Judiciary
(Sec. 2[c], R.A. 8291)
Q: Who is an employee or member?
A: Any person, receiving compensation while in the
service of an Er, whether by election or appointment,
irrespective of status of appointment, including
barangay and sanggunian officials. (Sec. 2[d], R.A.
8291)
Q: What is compensation?
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
into the basic pay under existing laws. (Sec. 2[i], R.A.
8291)
Q: Baradero is a member of the Sangguniang Bayan
of the Municipality of La Castellana, Negros Occ. and
is paid on a per diem basis. On the other hand, Belo
a Vice-Governor of Capiz is in a hold over capacity
and is paid on a per diem basis. Are the services
rendered by Baradero and Belo on a per diem basis
creditable in computing the length of service for
retirement purposes?
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 cover the
cost of lodging and subsistence of officers 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 a reimbursement for
incidental expenses incurred while away from their
home base.
If the remuneration received by a public official in the
performance of his duties does not constitute a mere
allowance for expenses but appears to be his actual
base pay, then no amount of categorizing the salary
as a per diem would take the allowances received
UNIVERSITY OF SANTO TOMAS
FACULTY OF CIVIL LAW
 Labor Law and Social Legislation

from the term service with compensation for the EXCLUSIONS FROM COVERAGE
purpose of computing the number of years of service
in government [GSIS v. CSC, G. R. Nos. 98395 and Q: Who are excluded from the coverage of the GSIS
102449, (1995)]. Law?

Q: What is the penalty in case of delayed remittance A:

or non-remittance of contributions?
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 payment by the
employers concerned (Sec. 7, R.A. 8291).
COVERAGE
Q: State briefly the compulsory coverage of the
GSIS. (2009 Bar Question)
A: The following are compulsorily covered by the GSIS
pursuant to Sec. 3 of RA 8291:
1. All Ees receiving compensation who have not
reached the compulsory retirement age,
irrespective of employment status.
2. Members of the judiciary and constitutional
commissions for life insurance policy.
Q: Who are the government Ees subject to coverage
under the GSIS?
A: GR: All Ees receiving compensation who have not
reached the compulsory retirement age, irrespective
of employment status.
1. Ees who have separate retirement schemes
(members of the Judiciary, Constitutional
Commissions and others similarly situated)
2. Contractual Ees who have no Er-Ee with the
agencies they serve
3. Uniformed members of the AFP, BJMP, whose
coverage by the GSIS has ceased effective June
24, 1997
4. Uniformed members of the PNP whose coverage
by the GSIS has ceased effective February 1,
1996. (Sec. 2.4, Rule II, IRR, R.A. 8291)
Q: For the purpose of benefit entitlement, how are
the members classified?
A:
1. Active members
a. Still in the service and are paying integrated
premiums.
b. Covered for the entire package benefits and
privileges being extended by GSIS.
2. Policyholders
a. Covered for life insurance only
b. Can avail of policy loan privilege only
c. May also apply for housing loans
d. Judiciary and Constitutional Commissions

XPNs: 3. Retired Members

1. Uniformed members of the: a. Former active members who have retired
a. AFP; and from the service and are already enjoying
b. PNP. the corresponding retirement benefits
2. Contractuals who have no Er and Ee applied for
relationship with the agencies they serve. b. Not entitled to any loan privilege, except
stock purchase loan (Sec. 2.2, Rules II, IRR,
Q: Who are covered by life insurance, retirement R.A. 8291)
and other social security protection?
BENEFITS
A: GR: All members of the GSIS shall have life
insurance, retirement, and all other social security Q: What are the Benefits provided under the GSIS
protections such as disability, survivorship, Act?
separation, and unemployment benefits. (Sec. 3, R.A.
8291) A:
1. Separation
XPNs: Members of: 2. Unemployment or involuntary separation
1. The judiciary; and 3. Retirement
2. Constitutional commissions 4. Permanent disability
5. Temporary disability
Note: They shall have life insurance only. 6. Survivorship
7. Funeral

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2013 GOLDEN NOTES 130
 SOCIAL AND WELFARE LEGISLATION
8. Life Insurance
9. Such other benefits and protection as may be
extended to them by the GSIS such as loans.
Q: Who shall be compulsorily covered with life
insurance?
A: G.R.: All Ees
XPN: All members of the Armed Forces of the
Philippines and the Philippine National Police
(PNP)
Q: What are the reportorial requirements of the Er?
A: Er must report to GSIS the names, employment
status, positions, salaries of the employee and such
other matter as determined by the GSIS.
SEPARATION BENEFITS
Q: When will a member be entitled to separation
benefits?
A: A member who has rendered a minimum of 3
years creditable service shall be entitled to separation
benefit upon resignation or separation under the
following terms:
1. A member with at least 3 years but less than 15
years: Cash payment equivalent to 100% of the
AMC for every year of service the member has
paid contributions:
a. not less than Php 12,000.00
b. Payable upon reaching 60 years of age or
upon separation, whichever comes later.
2. A member with less than 15 years of service and
less than 60 years of age at the time of
resignation or separation:
a. Cash payment equivalent to 18 times the
basic monthly pension (BMP), payable at the
time of resignation or separation
b. An old-age pension benefit equal to the
basic monthly pension, payable monthly for
life upon reaching the age of 60.
Q: What are the effects of separation from service
with regard to membership?
A: A member separated from the service shall
continue to be a member and shall be entitled to
whatever benefits he has qualified to.
Note: A member separated for a valid cause shall
automatically forfeit his benefits, unless the terms of
resignation or separation provide otherwise.
131
In the case of forfeiture, the separated employee shall be
entitled to receive only of the cash surrender value of his
insurance.
UNEMPLOYMENT BENEFITS
Q: What are the conditions for entitlement to
unemployment benefits?
A:
1. The recipient must be a permanent Ee at the
time of separation;
2. His separation was involuntary due to the
abolition of his office or position resulting from
reorganization; and
3. He has been paying the contribution for at least 1
year prior to separation.
Q: What will consist of an unemployment benefit?
A: It will consists of cash payment equivalent to 50%
of the average monthly compensation
Note: A member who has rendered at least 15 years of
service will be entitled to separation benefits instead of
unemployment benefits.
RETIREMENT BENEFITS
Q: What are the conditions in order to be entitled to
Retirement Benefits?
A:
1. A member has rendered at least 15 years of
service;
2. He is at least 60 years of age at the time of
retirement; and
3. He is not receiving a monthly pension benefit
from permanent total disability. (Sec. 13-A, R.A.
8291)
Q: What is the rule in case of extension of service in
order to be entitled for Retirement Benefit?
A: Rabor v. CSC (G.R. No. 111812, May 1995), held
that the head of the government agency concerned is
vested with discretionary authority to allow or
disallow extension of the service of an official or Ee
who has reached 65 years old without completing the
15 years of government service. 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 extension
shall not exceed 1 year.
Q: What is the reason for compulsory retirement?
UNIVERSITY OF SANTO TOMAS
FACULTY OF CIVIL LAW
 Labor Law and Social Legislation
A: The compulsory retirement of government officials
and Ees upon their reaching the age of 65 years is
founded on public policy which aims by it to maintain
efficiency in the government service and at the same
time give to the retiring public servants the
opportunity to enjoy during the remainder of their
lives the recompense, for their long service and
devotion to the government , in the form of a
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 vs. GSIS, G.R. No. 21723, (1970)].
Q: What are the options of the retiree with regard
to his or her retirement benefits?
A: The retiree may get either of the following:
1. Lump sum equivalent to 6 months of the basic
monthly pension (BMP) payable at the time of
retirement and an old-age pension benefit equal
to BMP payable for life, starting upon the
expiration of the 5 years covered by the lump
sum; or
2. Cash payment equivalent to 18 times his BMP and
monthly pension for life payable immediately.
(Sec. 13[a], R.A. 8291)
PERMANENT DISABILITY BENEFITS
Q: What is disability?
A: Any loss or impairment of the normal functions of
the physical and/or mental faculty of a member,
which reduces or eliminates his/her capacity to
continue with his/her current gainful occupation or
engage in any other gainful occupation.
Q: What is total disability?
A: Complete incapacity to continue with present
employment or engage in any gainful occupation due
to the loss or impairment of the normal functions of
the physical and/or mental faculties of the member.
Q: What are the conditions in order to be entitled
for permanent disability benefits?
A: The permanent disability was not due to any of the
following:
1. Grave misconduct
2. Notorious negligence
3. Habitual intoxication
4. Willful intention to kill himself or another
UNIVERSITY OF SANTO TOMAS
2013 GOLDEN NOTES
Q: What are the two types of permanent disability?
A:
1. Permanent Total Disability (PTD) - accrues or
arises when recovery from any loss or
impairment of the normal functions of the
physical and/or mental faculty of a member
which reduces or eliminates his capacity to
continue with his current gainful occupation or
engage in any other gainful occupation is
medically remote. [Section 2 (q) and (s) R.A.
8291]
2. Permanent Partial Disability (PPD) - accrues or
arises upon the irrevocable loss or impairment of
certain portion/s of the physical faculties, despite
which the member is able to pursue a gainful
occupation. (Sec. 2[u], R.A. 8291)
Q: What are the benefits which an employee is
entitled to in case of a PTD?
A:
1. A member is entitled to the monthly income
benefit for life equivalent to the BMP when:
a. He is in the service at the time of the disability
or
b. If separated from service
c. He has paid at least 36 monthly contributions
within 5 years immediately preceding his
disability
d. He has paid a total of at least 180 monthly
contribution prior his disability
e. He is not receiving old-age retirement pension
benefits
2. If the member does not satisfy the conditions
above but has rendered at least 3- years-service, he
shall be advanced the cash payment equivalent to
100% of his average monthly compensation for each
year of service he has pad contributions but not less
than Php 12,000.00 which should have been his
separation benefit (he shall no longer receive
separation benefits)
Q: What are the benefits which an employee is
entitled to in case of a PPD?
A: A member is entitled to cash payment in
accordance with the schedule of disabilities to be
prescribed by GSIS, if he satisfies the given conditions
of either (1) or (2) of Sec. 16(a).
Q: When will the payment of these benefits be
suspended?
132
 SOCIAL AND WELFARE LEGISLATION
A:
1. In case a member is re-employed; or
2. Member recovers from disability as determined
by the GSIS; or
3. Fails to present himself for medical examination
when required by the GSIS. (Sec. 16 [c], R.A.
8291)
TEMPORARY DISABILITY BENEFITS
Q: When does temporary total disability arise?
A: It accrues or arises when the impaired physical
and/or mental faculties can be rehabilitated and/or
restored to their normal functions. (Sec 2[t], R.A.
8291)
Q: What benefits are given for temporary disability?
A:
1. Member is entitled to 75% of his current daily
compensation for each day or fraction thereof of
th
total disability benefit, to start at the 4 day but
not exceeding 120 days in one calendar year
when:
a. He has exhausted all sick leaves
b. CBA sick leave benefits
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
preceding his disability
2. The temporary total disability benefits shall in no
case be less than P70 a day.
Note: A member cannot enjoy the temporary total
disability benefit and sick leave pay simultaneously.
An application for disability must be filed with the GSIS
within 4 years from the date of the occurrence of the
contingency.
SURVIVORSHIP BENEFITS
Q: Who are entitled to survivorship benefits?
A: Upon the death of a member or pensioner, his
beneficiaries shall be entitled to survivorship benefits.
Such benefit shall consist of:
1. The basic survivorship pension which is 50% of
the basic monthly pension; and
2. The dependent childrens pension not exceeding
50% of the basic monthly pension
133
Q: Under what conditions are the primary
beneficiaries entitled to the basic monthly pension?
A: Upon the death of a member, the primary
beneficiaries shall be entitled to:
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 at the time of his
death and has paid 36 monthly contributions
within the five-year period immediately
preceding his death; or has paid a total of at
least 180 monthly contributions prior to his
death; 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 deceased was in the service at the time
of his death with at least 3 years of service; or
3. A cash payment equivalent to 100% of his average
monthly compensation for each year of service he
paid contributions, but not less than Php
12,000.00: 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) of this paragraph. [Sec. 21 (a), R.A.
8291]
Q: After the end of the guaranteed 30 months, 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 survivorship
pension for life or until he or she remarries;
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
dependent child not exceeding 5, 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
childrens pension. (Sec. 21[b], R.A. 8291)
UNIVERSITY OF SANTO TOMAS
FACULTY OF CIVIL LAW
 Labor Law and Social Legislation
Note: The dependent children shall be entitled to the claim for death benefits with the GSIS? Why? (1991
survivorship pension as long as there are dependent Bar Question)
children and, thereafter, the surviving spouse shall receive
the basic survivorship pension for life or until he or she
A: The beneficiaries of a member of the GSIS are
remarries.
entitled to the benefits arising from the death of
said member. Death benefits are called survivorship
Q: When are secondary beneficiaries entitled to
benefits under the GSIS Law. Not being a beneficiary,
survivorship benefits?
Bella is not entitled to receive survivorship benefits.
She is not a beneficiary because she is a common-
A: In the absence of primary beneficiaries, the
law wife and not a legal dependent spouse.
secondary beneficiaries shall be entitled to:
Q: Is the cause of death of Gary (cardiac arrest due
1. The cash payment equivalent to 100% of his
to accidental electrocution in his house)
average monthly compensation for each year of
compensable? Why?
service he paid contributions, but not less than
Php 12,000.00: Provided, That the member is in
A: Yes. To be compensable under the GSIS Law, the
the service at the time of his death and has at
death need not be work connected.
least 3 years of service; or
2. In the absence of secondary beneficiaries, the
Q: Abraham, a policeman, was on leave for a
benefits under this paragraph shall be paid to his
month. While resting in their house, he heard two
legal heirs. (Sec. 21[c], R.A. 8291)
of his neighbors fighting with each other.
Abraham rushed to the scene intending to pacify
Q: What are the benefits that the beneficiaries are
the protagonists. However, he was shot to death by
entitled to upon the death of the pensioner?
one of the protagonists. Eva Joy, a housemaid, was
Abraham's surviving spouse whom he had
A:
abandoned for another woman years back. When
1. Upon the death of an old-age pensioner or a
she learned of Abraham's death, Eva Joy filed a
member receiving the monthly income benefit
claim with the GSIS for death benefits. However,
for permanent disability, the qualified
her claim was denied because: (a) when Abraham
beneficiaries shall be entitled to the survivorship
was killed, he was on leave; and (b) she was not
pension.
the dependent spouse of Abraham when he died.
2. When the pensioner dies within the period
Resolve with reasons whether GSIS is correct in
covered by the lump sum, the survivorship
denying the claim. (2005 Bar Question)
pension shall be paid only after the expiration of
such period.
A: Yes, because under the law, a dependent is one
who is a legitimate spouse living with the Ee.
Q: Gary Leseng was employed as a public school
(Art. 167 [i], LC) In the problem given, Eva Joy had
teacher at the Marinduque High. On April 27, 1997, a
been abandoned by Abraham who was then living
memorandum was issued by the school principal
already with another woman at the time of his death.
designating Gary to prepare the model dam project,
which will be the official entry of the school in the
Moreover, Abraham was on leave when he was killed.
search for Outstanding Improvised Secondary Science
The 24-hour duty rule does not apply when the
Equipment for Teachers. Gary complied with his
policeman is on vacation leave [ECC v. CA, G.R. No.
superior's instruction and took home the project to
121545, (1996)]. Taking together jurisprudence and
enable him to finish before the deadline. While
the pertinent guidelines of the ECC with respect to
working on the model dam project, he came to
claims for death benefits, namely:
contact with a live wire and was electrocuted. The
death certificate showed that he died of cardiac
1. That the Ee must be at the place where his work
arrest due to accidental electrocution.
requires him to be;
2. That the Ee must have been performing his
Bella (Garys common-law wife) and Jobo (his only
official functions; and
son) filed a claim for death benefits with the GSIS
3. That if the injury is sustained elsewhere, the Ee
which was denied on the ground that Garys death
must have been executing an order for the Er, it is
did not arise out of and in the course of
not difficult to understand then why Eva Joy's
employment and therefore not compensable
claim was denied by the GSIS [Tancinco v. GSIS,
because the accident occurred in his house and not
G.R. No. 132916, (2001)].
in the school premises. Is Bella entitled to file a

UNIVERSITY OF SANTO TOMAS

2013 GOLDEN NOTES 134
 SOCIAL AND WELFARE LEGISLATION
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.
Although at the time of his death Abraham was
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.
FUNERAL BENEFITS
Q: What comprises the Funeral Benefit?
A: The funeral benefit, in the amount Php 20,000,
which is intended to defray the expenses incident to
the burial and funeral of the deceased member,
pensioner, or retiree under R.A. 660, R.A. 1616, P.D.
1146, and R.A. 8291. It is payable to the members of
the family of the deceased, in the order which they
appear:
1. Legitimate spouse
2. Legitimate child who spent for the funeral
services, or
3. any other person who can show unquestionable
proof of his having borne the funeral expenses of
the deceased.
Q: When will it be paid?
A: Upon the death of:
1. An active member
2. A member who has been separated from the
service but is entitled to future separation or
retirement benefits
3. A member who is a pensioner (excluding
survivorship pensioners)
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
prescribing two other modes of retirement and
for other purposes).
LIFE INSURANCE
Q: What are the classes of life insurance coverage
under the GSIS Law?
A:
1. Compulsory Life Insurance
2. Optional Life Insurance
Note: The plans may be endowment or ordinary life.
135
Q: When does compulsory life insurance coverage
take effect?
A: All Ees including the members of the Judiciary and
the Constitutional Commissioners except for
Members of the AFP, the PNP, BFP and BJMP, shall,
under such terms and conditions as may be
promulgated by the GSIS, be compulsorily covered
with life insurance, which shall automatically take
effect as follows:
1. Those employed after the effectivity of this Act,
their insurance shall take effect on the date of
their employment;
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 date of their insurance;
3. For those without any life insurance as of the
effectivity of this Act, their insurance shall take
effect following said effectivity.
Q: When may a member obtain optional Life
Insurance coverage?
A:
1. A member may at any time apply for himself
and/or his dependents an insurance and/or pre-
need coverage embracing:
a. Life
b. Memorial plans
c. Health
d. Education
e. Hospitalization
f. Other plans as maybe designed by GSIS
2. Any Er may apply for group insurance coverage
for its Ees.
Q: What is the prescriptive period to claim the
benefits?
A: GR: 4 years from the date of contingency
XPNs: Life insurance and retirement (Sec. 28, R.A.
8291)
Q: May a member enjoy the benefits provided for in
the Revised GSIS Act simultaneous with similar
benefits provided under other laws for the same
contingency?
A: Whenever other laws provide similar benefits for
the same contingencies covered by this Act, the
member who qualifies to the benefits shall have the
option to choose which benefits will be paid to him.
UNIVERSITY OF SANTO TOMAS
FACULTY OF CIVIL LAW
 Labor Law and Social Legislation
However, if the benefits provided by the law chosen
are less than the benefits provided under this Act, the
GSIS shall pay only the difference. (Sec. 55, R.A. 8291)
BENEFICIARIES
Q: Who are the considered beneficiaries?
A:
1. Primary beneficiaries
a. The legal dependent spouse until he/she
remarries, and
b. The dependent children (Sec. 2[g] , R.A.
8291)
2. Secondary beneficiaries
a. The dependent parents, and
b. Subject to the restrictions on dependent
children, the legitimate descendants (Sec.
2[h] , R.A. 8291)
Q: Who are considered dependents?
A:
1. Legitimate spouse dependent for support upon
the member or pensioner;
2. Legitimate, legitimated, legally adopted child,
including the illegitimate child,
a. who is unmarried,
b. not gainfully employed,
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. Parents dependent upon the member for
support. (Sec. 2[f])
LIMITED PORTABILITY LAW (R.A. 7699)
Q: What is the Limited Portability Rule?
A: A covered worker who transfers employment from
one sector to another or is employed on both 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 of old-age, disability, survivorship, and
other benefits in either or both Systems. (Sec. 3, R.A.
7699)
All contributions paid by such member personally,
and those that were paid by his employers to both
Systems shall be considered in the processing of
benefits which he can claim from either or both
Systems. (Sec. 4, R.A. 7699)
UNIVERSITY OF SANTO TOMAS
2013 GOLDEN NOTES
This is advantageous to the SSS and GSIS members for
purposes of death, disability or retirement benefits. In
the event the Ees transfer from the private sector to
the public sector, or vice-versa, their creditable
employment services and contributions are carried
over and transferred as well.
EMPLOYEES COMPENSATION
Q: Discuss briefly the Employees Compensation
Program.
A: It is the program provided for in Arts. 166 to 208 of
the LC whereby a fund known as the State Insurance
Fund is established through premium payments
exacted from Ers and from which the Ees and their
dependents in the event of work-connected disability
or death, may promptly secure adequate income
benefit, and medical or related benefits.
COVERAGE
Q: Who are subject to coverage under the
Employees Compensation Program?
A: Ers and their Ees not over 60 years of age are
subject to compulsory coverage under this program.
The Er may belong to either the:
1. Public sector covered by the GSIS, comprising the
National Government, including GOCCs,
Philippine Tuberculosis Society, the Philippine
National Red Cross, and the Philippine Veterans
Bank; and
2. Private sector covered by the SSS, comprising all
Ers other than those defined in the immediately
preceding paragraph.
The Ee may belong to either the:
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,
substitute or contractual;
2. Private sector comprising the employed workers
who are covered by the SSS.
Q: When does compulsory coverage take effect?
A:
1. Employer on the first day of operation
2. Employee on the day of his employment
Q: What is an occupational disease?
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 SOCIAL AND WELFARE LEGISLATION
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 occupation a hazard
which distinguishes it from the usual run of
occupations and is in excess of the hazard attending
the employment in general
To be occupational, the disease must be one wholly
due to causes and conditions which are normal and
constantly present and characteristic of the particular
occupation.
Q: What is compensable sickness?
A: It means any illness definitely accepted as an
occupational disease listed by the Commission or any
illness caused by employment, subject to proof that
the risk of contracting the same is increased by
working conditions. (Art. 167(l), LC)
Q: Discuss briefly the theory of Increased Risk.
A: The term sickness as defined in Art. 167(l) of the
LC is a recognition of the theory of increased risk. To
establish compensability under the same, the
claimant must show substantial proof of work-
connection, but what is required is merely a
reasonable work-connection and not a direct causal
relation. Proof of actual cause of the ailment is not
necessary. The test of evidence of relation of the
disease with the employment is probability and not
certainty [Jimenez v. Employees Compensation
Commission, G.R. No. L-58176, (1984); Panotes vs.
ECC, G.R. No. L-64802, (1984)].
Q: May an illness not listed by the Employees
Compensation Commission as an occupational
disease be compensable?
A: Where the illness is not listed by the Employees
Compensation Commission as an occupational
disease, it must be established that the risk of
contracting the same is increased by working
conditions.
Q: What defenses may be interposed by the State
Insurance Fund against a claim for compensation
made by a covered Ee or his dependents?
A: The following defenses may be set up:
1. Injury is not work-connected or the sickness is
not occupational
137
2. Disability or death was occasioned by the Ees
intoxication, wilful intention to injure or kill
himself or another, or his notorious negligence
(Art. 172, LC)
3. No notice of sickness, injury or death was given
to the Er (Art. 206, LC)
4. Claim was filed beyond 3 years from the time the
cause of action accrued (Art. 201, LC, as
amended by P.D. 1921)
Note: Notorious negligence is equivalent to gross
negligence; it is something more than mere carelessness or
lack of foresight.
Q: Abraham Dino works as a delivery man in a
construction supply establishment owned by
Abraham Julius. One day, while Dino was making
reports on his delivery, he had an altercation with
Julius; irked by the disrespectful attitude of Dino,
Julius pulled out his gun and shot Dino, hitting him
in the spinal column and paralyzing him completely.
Julius was prosecuted for the act.
1. Is the disability suffered by Abraham Dino
compensable?
2. If Abraham Dino recovers compensation from
the SIF, can he still recover from Abraham Julius
damages in the criminal case? Why?
A:
1. Yes. The injury was sustained by Abraham Dino in
his place of work and while in the performance
of his official functions.
2. No. Under Art. 173 of the LC, as amended by P.D.
1921, the liability of the State 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 Ee or his dependents.
Q: Wilfredo, 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 Wilfredo entitled to benefits
under the Employees Compensation Program?
A: Yes. Filipinos working abroad in the service of an
Er, domestic or foreign, who carries on in the
Philippines any trade, business, industry, undertaking
or activity of any kind, are covered by the ECP. (Rule
1, Section 5, ECC Rules; Art.169, LC)
Q: What is the Going and Coming Rule? Is this rule
absolute?
UNIVERSITY OF SANTO TOMAS
FACULTY OF CIVIL LAW
 Labor Law and Social Legislation
A: GR: In the absence of special circumstances, an Ee
injured while going to or coming from his place of
work is excluded from the benefits of Workmens
Compensation Act.
XPNs:
1. Where the Ee is proceeding to or from his
work on the premises of the Er;
2. Proximity Rulewhere the Ee is about to
enter or about to leave the premises of his
Er by way of exclusive or customary means
of ingress and egress;
3. Ee is charged, while on his way to or from his
place of employment or at his home, or
during this employment with some duty or
special errand connected with his
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: Who are entitled to benefits under the
Employees Compensation Program?
A: The covered Ee, his dependents, and in case of his
death, his beneficiaries.
Q: Who are the dependents of the employee?
A:
1. Legitimate, legitimated, legally adopted or
acknowledged natural child who is unmarried, not
gainfully employed, and not over 21 years of age
or over 21 years of age provided he is
incapacitated and incapable of self-support due to
a physical or mental defect which is congenital or
acquired during minority;
2. Legitimate spouse living with the Ee
3. Parents of said Ee wholly dependent upon him for
regular support. (Art.167(i), LC, as amended by
P.D. 1921)
Q: Who are included in the term beneficiaries?
A: "Beneficiaries" means the dependent spouse until
he remarries and dependent children, who are 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
considered as a primary beneficiary when there are
no other dependent children who are qualified and
UNIVERSITY OF SANTO TOMAS
2013 GOLDEN NOTES
eligible for monthly income benefit. (Art. 167, LC, as
amended by Sec. I, P.D. 1921)
Q: What are the benefits which may be enjoyed
under the State Insurance Fund?
A:
1. Medical Benefits
2. Disability Benefits
3. Death Benefits
4. Funeral Benefits
MEDICAL BENEFIT (MEDICAL SERVICES)
Q: What are the conditions of entitlement to
medical services?
A: For an Ee to be entitled to medical services, the
following conditions must be satisfied:
1. He has been duly reported to the System (SSS or
GSIS);
2. He sustains a permanent disability as a result of
an injury or sickness; and
3. The System has been notified of the injury or
sickness which caused his disability.
DISABILITY BENEFIT
Q: What are disability benefits?
A: They are income benefits in case of temporary
total disability, permanent total disability and
permanent partial disability
Q: What are the disabilities that are considered total
and permanent?
A: The following disabilities shall be deemed total and
permanent:
1. Temporary total disability lasting continuously
for more than one hundred twenty days, except
as otherwise provided for in the Rules;
2. Complete loss of sight of both eyes;
3. Loss of two limbs at or above the ankle or wrist;
4. Permanent complete paralysis of two limbs;
5. Brain injury resulting in incurable imbecility or
insanity; and
6. Such cases as determined by the Medical
Director of the System and approved by the
Commission. (Art.192(c), LC)
Q: May a permanent partial disability be converted
to permanent total disability after the employees
retirement? Why?
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 SOCIAL AND WELFARE LEGISLATION
A: Yes. This is in line with the social justice provision
in the Constitution. A persons disability may not
manifest itself fully at one precise moment in time
but rather over a period of time. And disability should
not be understood more on its medical significance
but on the loss of earning capacity.
Q: May permanent total disability arise although the
employees does not lose the use of any part of his
body?
A: Yes. Where the Ee is unable, by reason of the
injury or sickness, to perform his customary job for
more than 120 days, permanent total disability arises.
[Ijares vs. CA, G.R. No. 105854, (1999)]
DEATH BENEFIT
Q: What are the conditions for entitlement to death
benefits?
A: The beneficiaries of a deceased Ee shall be entitled
to an income benefit if all of the following conditions
are satisfied:
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 which caused his
death.
Q: For how long are the primary beneficiaries
entitled to the death benefits?
A:
1. Dependent Spouseuntil he or she remarries.
2. Dependent Childrenuntil they get married, or
find gainful employment, or reach 21 years of
age.
3. Dependent Child suffering from physical or
mental defectuntil such defect disappears.
Q: If an employee suffers disability or dies before he
is duly reported for coverage to the System (SSS or
GSIS), who will be liable for the benefits?
A: The Er shall be liable (Sec.1, Rule X; Sec.1, Rule XI;
Sec. 1, Rule XII; Sec. 1, Rule XIII; ECC Rules)
Q: What are the rules regarding employers liability
in case of death or injury?
A:
1. If the cause of the death or personal injury arose
out of and in the course of employment, the Er is
liable.
139
2. If the cause was due to the Ees own notorious
negligence, or voluntary act or drunkenness, the
Er shall not be liable.
3. If the cause was partly due to the Ees lack of sue
care, the compensation shall be inequitably
reduced.
4. If the cause was due to the negligence of a fellow
Ee, the Er and the guilty Ee shall be liable
solidarily.
5. If the cause was due to the intentional or
malicious act of fellow Ee, the fellow Ee and Er
are liable unless the Er exercised due diligence in
selecting and supervising his Ees.
FUNERAL BENEFIT
Q: What is the funeral benefit?
A: A funeral benefit of Php 10, 000.00 shall be paid
upon the death of a covered Ee or permanently
totally disabled pensioner.
Q: Who are required to make contributions to the
State Insurance Fund?
A: Contributions under this Title shall be paid in their
entirety by the Er and any contract or device for the
deduction of any portion thereof from the wages or
salaries of the Ees shall be null and void. (Art.183(c),
LC)
Q: When does the right to compensation or benefit
for loss or impairment of an employees earning
capacity due to work-related 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, (1988)].
Q: Does recovery from the State Insurance Fund bar
a claim for benefits under the SSS Law? Why?
A: No, as expressly provided for in Art. 173 of the LC,
payment of compensation under the State Insurance
Fund shall not bar the recovery of benefits under the
SSS Law, Republic Act No. 1161, as amended. Benefits
under the State Insurance Fund accrue to the Ees
concerned due to hazards involved and are made a
burden on the employment itself. On the other hand,
social security benefits are paid to SSS members by
reason of their membership therein for which they
contribute their money to a general fund [Ma-ao
Sugar Central Co., Inc. vs. CA, G.R. No. 83491, (1990)].
UNIVERSITY OF SANTO TOMAS
FACULTY OF CIVIL LAW