Amending Further Certain Provisions Of Title II, Book Four Of The Labor Code Of The Philippines (Pd 442, As Amended).

Case Overview and Summary

Summary of Presidential Decree No. 1368

Amending Certain Provisions of the Labor Code on Employees' Compensation

• Increases benefits for employees covered under the Employees' Compensation Program (ECP) without requiring additional premium contributions from employers. (Whereas clauses)

• Amends definitions under Article 167:
- Expands definition of "injury" to include those sustained while executing employer's order, even outside workplace. (Section 1)
- Empowers Employees' Compensation Commission (ECC) to determine compensable occupational diseases and work-related illnesses based on employment hazards. (Section 1)
- Defines "basic benefit", "graduated increment", and "monthly income benefit" formulas for computing disability benefits based on average monthly salary credit and paid coverage period. (Section 1)

• Provides for ECC's status as a government corporation attached to the Department of Labor. (Section 2)

• Authorizes ECC to initiate occupational health, safety, accident prevention, and rehabilitation programs, and appropriate funds for them. (Section 3)

• Establishes the State Insurance Fund (SIF) in the Social Security System (SSS) and Government Service Insurance System (GSIS) for exclusive payment of ECP benefits. Allows investment of SIF amounts with due regard for liquidity needs. (Section 4)

• Amends provisions on temporary total disability benefits:
- Provides income benefit of 90% of average daily salary credit, subject to minimum of PHP 2.50 and maximum of PHP 20 per day, for up to 120 days. (Section 5)

• Amends provisions on permanent total disability benefits:
- Provides monthly income benefit plus 10% for each dependent child (up to 5), guaranteed for 5 years. (Section 6)
- Benefit suspended if employee recovers, is gainfully employed, or fails annual medical examination. (Section 6)

• Amends provisions on permanent partial disability benefits:
- Provides schedule of benefit periods for specific disabilities. (Section 7)
- Allows lump sum payment if benefit period does not exceed 1 year. (Section 7)
- Benefit based on percentage of permanent loss of work capacity for unlisted disabilities. (Section 7)

• Amends provisions on death benefits:
- Provides primary beneficiaries with monthly income benefit plus 10% for each dependent child (up to 5), guaranteed for 5 years. (Section 8)
- Provides lump sum of 35 times monthly income benefit to secondary beneficiaries if no primary beneficiaries. (Section 8)
- Provides actuarial balance of monthly income benefit to beneficiaries of employee under permanent total disability. (Section 8)

• Repeals inconsistent laws, with conditions for GSIS entitlement governed by Labor Code and benefit computation formulas from Commonwealth Act No. 186 as amended. (Section 9)

• Effective date of May 1, 1978. (Section 10)