MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 1641
FURTHER AMENDING TITLE II, BOOK FOUR OF THE LABOR CODE OF THE PHILIPPINES (PD 442, as amended)
WHEREAS, Provisions of the Employees' Compensation and Status Insurance Fund of the Labor Code of the Philippines must respond to dynamic changes in social-economic development in light of aspiraling cost of living; and that adjustments must be made to align such provisions with changes in social security of the country; and
WHEREAS, the judicious management of the State Insurance Fund that the Social Security System and the Government Service Insurance System administer for the private sector and the public service, respectively has resulted in accumulation of sufficient reserves to enable the Employees' Compensation Commission to further upgrade the benefit structure for covered employees, without requiring additional premium contributions from employers;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution do hereby order and decree:
Section 1. Paragraphs (cc) and (dd)...
Details
Amends
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Amended by
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Presidential Decrees
Further Amending Title II, Book Four Of The Labor Code Of The Philippines (PD 442, As Amended)
Presidential Decree No. 1641
Summary of Presidential Decree No. 1641
Definitions and Computations:
- Defines "replacement ratio" as 20% plus a quotient based on average monthly salary credit (Section 1)
- Defines "credit years of service" based on years of coverage and contributions paid (Section 1)
- Defines "monthly income benefit" as 115% of the sum of: (1) average monthly salary credit multiplied by replacement ratio, and (2) 1.5% of average monthly salary credit for each credited year of service over 10 years; surviving pensioners' monthly pension increased by 20% (Section 2)
Powers and Responsibilities of the Employees' Compensation Commission:
- Authorized to make actuarial studies and calculations for granting benefits for permanent disability or death (Section 3)
- May upgrade benefits and introduce new ones, subject to Presidential approval, while ensuring actuarial stability of the State Insurance Fund without increasing contributions, except as provided (Section 3)
Temporary Total Disability Benefits:
- Employee sustaining injury or sickness resulting in temporary total disability shall receive daily income benefit of 90% of average daily salary credit, subject to conditions: (1) not less than ₱4 nor more than ₱25 per day, (2) not paid for more than 120 continuous days, (3) System must be notified of injury or sickness (Section 4)
Permanent Total Disability Benefits:
- Monthly income benefit guaranteed for 5 years and suspended if employee is gainfully employed, recovers from disability, or fails to present for annual examination, except as provided in other laws (Section 5)
Death Benefits:
- Primary beneficiaries of a covered employee who dies while under permanent total disability shall receive 80% of the monthly income benefit and dependents' pension, provided the marriage was validly subsisting at the time of disability (Section 6)
- If no primary beneficiary, secondary beneficiaries shall receive a lump sum benefit equivalent to the smaller of: (1) 35 times the monthly pension, or (2) the difference of 60 times the monthly pension and total monthly pensions paid by the System, excluding dependents' pension (Section 6)
- Funeral benefit of ₱1,000 shall be paid upon death of a covered employee or permanently totally disabled pensioner (Section 6)
Repeal of Laws and GSIS Benefits:
- Repeals inconsistent laws, but for GSIS, conditions for entitlement to benefits shall be covered by the Labor Code as amended, while formulas for computation of benefits and contribution base shall be those provided under Commonwealth Act No. 186, as amended by Presidential Decree No. 1146, plus 20% (Section 7)
Effectivity:
- This Decree shall take effect on January 1, 1980 (Section 8)
Definitions and Computations:
- Defines "replacement ratio" as 20% plus a quotient based on average monthly salary credit (Section 1)
- Defines "credit years of service" based on years of coverage and contributions paid (Section 1)
- Defines "monthly income benefit" as 115% of the sum of: (1) average monthly salary credit multiplied by replacement ratio, and (2) 1.5% of average monthly salary credit for each credited year of service over 10 years; surviving pensioners' monthly pension increased by 20% (Section 2)
Powers and Responsibilities of the Employees' Compensation Commission:
- Authorized to make actuarial studies and calculations for granting benefits for permanent disability or death (Section 3)
- May upgrade benefits and introduce new ones, subject to Presidential approval, while ensuring actuarial stability of the State Insurance Fund without increasing contributions, except as provided (Section 3)
Temporary Total Disability Benefits:
- Employee sustaining injury or sickness resulting in temporary total disability shall receive daily income benefit of 90% of average daily salary credit, subject to conditions: (1) not less than ₱4 nor more than ₱25 per day, (2) not paid for more than 120 continuous days, (3) System must be notified of injury or sickness (Section 4)
Permanent Total Disability Benefits:
- Monthly income benefit guaranteed for 5 years and suspended if employee is gainfully employed, recovers from disability, or fails to present for annual examination, except as provided in other laws (Section 5)
Death Benefits:
- Primary beneficiaries of a covered employee who dies while under permanent total disability shall receive 80% of the monthly income benefit and dependents' pension, provided the marriage was validly subsisting at the time of disability (Section 6)
- If no primary beneficiary, secondary beneficiaries shall receive a lump sum benefit equivalent to the smaller of: (1) 35 times the monthly pension, or (2) the difference of 60 times the monthly pension and total monthly pensions paid by the System, excluding dependents' pension (Section 6)
- Funeral benefit of ₱1,000 shall be paid upon death of a covered employee or permanently totally disabled pensioner (Section 6)
Repeal of Laws and GSIS Benefits:
- Repeals inconsistent laws, but for GSIS, conditions for entitlement to benefits shall be covered by the Labor Code as amended, while formulas for computation of benefits and contribution base shall be those provided under Commonwealth Act No. 186, as amended by Presidential Decree No. 1146, plus 20% (Section 7)
Effectivity:
- This Decree shall take effect on January 1, 1980 (Section 8)