Labor Law: Social Welfare Legislation
Topic Outline:
SSS Law (R.A. No. 8282, as amended by R.A. 11198)
GSIS Law (R.A. No. 8291)
Limited Portability Law (R.A. No. 7699)
I. Definitions
II. Coverage
III. Exclusion
IV. Dependents
V. Beneficiaries
Social Legislation
- Laws, rules, and regulations that promote welfare of all sectors of society.
- It includes laws that provide particular kinds of protection or benefits to the society, in furtherance of social justice. Not all social legislations are labor laws. (Duka, 2019)
I. DEFINITIONS
SSS Law (R.A. No. 8282)
- Employer γΌ any person, natural or judicial, domestic or foreign who carries on in the Philippines any trade, business, industry undertaking, or activity of any kind and uses the services of another person who is under his orders as regards employment.
- Except: Government and any of its political subdivisions, branches and instrumentality, including GOCCs, i.e., those under GSIS.
- Employee γΌ any person who performs services for an employer who receives compensation for such services, where there is an employer-employee relationship.
- Self-employed γΌconsidered both employer and employee.
GSIS Law (R.A. No. 8291)
- Employer γΌthe national government, its political subdivisions, branches, agencies or instrumentalities, including GOCCs, and financial institutions with original charters, the constitutional commissions and the judiciary.
- Employee γΌ any person receiving compensation while in service of an employer as defined herein, whether by election or appointment.
Employee's Compensation Law (P.D. No. 626)
- Employer γΌany person, natural or juridical, employing the services of the employee.
- Employee γΌ belonging to either of the following sectors:
- Public sectors, comprised of the following:
- Employed workers covered by the GSIS, including members of the AFP;
- Elective officials who are receiving regular salary;
- Those employed as Casual, Contractual, Emergency. Temporary or Substitute Employees (Labor Code, Art. 173[g])
- Private sector, comprising all the employed workers who are covered by the SSS;
- Overseas Filipinos (ECL Rules, Sec. 5, Rule 1)
II. COVERAGE
SSS Law (R.A. No. 8282)
- Compulsory
- Employees And Their Employers
- All employees including kasambahays or domestic workers not over sixty (60) years of age and their employers. (Sec. 9(a), R.A. No. 11199)
- Domestic helpers whose income is not less than P1,000/month.
- Covered Employees with Private Benefit Plans
- Private benefit plans which are existing and in force at the time of compulsory coverage shall be integrated with the plan of the SSS. (Sec. 9(a), R.A. No. 11199)
- Waiver of SSS is not allowed.
- Self-Employed Person including, but not limited to the following:
- All self-employed professionals;
- Partners and single proprietors of business;
- Actors and actresses, directors, scriptwriters, and news correspondents who do not fall within the definition of the term “employee”;
- Professional athletes, coaches, trainers, and jockeys;
- Individual farmers and fisherman. (Sec. 9-A, R.A. No. 11199)
- Overseas Filipino Workers (OFW)
- All sea-based and land-based OFWs provided that they are not over sixty (60) years of age. (Sec. 9-B, R.A. No. 11199)
- Manning agencies are agents of their principals and are considered as employers of sea-based OFWs. (Sec. 9-B (b), R.A. No. 11199)
- Land-based OFWs are compulsory members of the SSS and are considered in the same manner as self-employed persons, until a Bilateral Labor Agreement (BLA) shall have been entered into. (Sec. 9-B (c), R.A. No. 11199)
- Voluntary
- Spouses who devote full time to managing the household and family affairs;
- Exception: They are also engaged in other vocation or employment which is subject to mandatory coverage. (Sec. 9(b), R.A. No. 11199)
- An OFW upon the termination of his/her employment overseas (Sec. 9-B (f), R.A. No. 11199);
- A covered employee who was separated from employment who continues to pay his/her contributions;
- Self-employed who realizes no income for a certain month; and
- Filipino permanent migrants, including Filipino immigrants, permanent residents and naturalized citizens of their host countries. (Sec. 9-B (g), R.A. No. 11199)
- Effective Date
- Employer — On the first day of operation
- Employee — On the first day of employment
- Self-employed — Upon registration with the SSS
- Sea-based OFW —On the first day of employment
- Land-based OFW covered under BLAs — Based on the provisions of the Agreement and its implementing arrangement.
- Land-based OFW not covered under BLAs — Applicable month and year of the first contribution payment
- Voluntary coverage of land-based overseas Filipinos — Applicable month and year of the first contribution payment
GSIS Law (R.A. No. 8291)
- Any person receiving compensation while in the service of an employer as defined herein, whether by election or appointment, irrespective of status of appointment, including barangay and Sanggunian officials. (Sec. 2[d])
- The national government, its political subdivisions, branches, agencies or instrumentalities;
- Government-owned or controlled corporations;
- Government financial institutions with original charters;
- Constitutional commissions; and
- The judiciary.
- Membership in the GSIS shall be compulsory for all employees receiving compensation who have not reached the compulsory retirement age, irrespective of employment status. (Sec. 3)
- Life Insurance, Retirement and Other Social Security Protection
- General Rule: 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, R.A. No. 8291)
- Exception: The members of the following shall have life insurance only:
- The Judiciary; and
- The Constitutional Commissions.
- Compulsory Coverage of Life Insurance
- General Rule: All employees receiving compensation who have not reached the compulsory retirement age, irrespective of employment status.
- Exception: All members of the AFP and the PNP.
- Beyond the Mandatory Age of 65
- An employee who is already beyond the mandatory retirement age of 65 shall be compulsorily covered and be required to pay both the life and retirement premiums under the following situations:
- An elective official who, at the time of election to public office is below 65 years of age will be more than 65 at the end of his term of office, including the period/s of his re-election to public office thereafter without interruption.
- Appointive officials who, before reaching the mandatory age of 65, are appointed to government position by the President of the Republic of the Philippines and shall remain in government service at an age beyond 65.
- Contractual employees, including casuals and other employees with an employee-government agency relationship are also compulsorily covered, provided they are receiving fixed monthly compensation and rendering the required number of working hours for the month.
- Classification of Members
- Active Members
- Still in the service and are paying integrated premiums; covered for the entire package benefits and privileges being extended by GSIS.
- Policyholders
- Covered for life insurance only;
- Can avail of policy loan privilege only; and
- May also apply for housing loans.
- Judiciary and Constitutional Commissions
- Separated Members
- Former active members who have been separated from the service;
- Still covered by the GSIS under the principle of “once a member, always a member”;
- Entitled to receive future benefits under P.D. 1146 in the event of compensable contingency such as old age (attainment of age 60 years), disability, survivorship and death; and Not entitled to any loan privilege.
- Retired Members
- Former active members who have retired from the service and are already enjoying the corresponding retirement benefits applied for; and
- Not entitled to any loan privilege, except stock purchase loan. (Sec. 2.2, Rule II, IRR of R.A. No. 8291)
Employee's Compensation Law (P.D. No. 626)
- All employers;
- Employees not over 60 years old;
- Employees over 60 years old and paying contributions;
- Employee coverable by both the GSIS and SSS are compulsorily covered by both Systems; and
- Filipino employees employed abroad subject to prescribed regulations (Labor Code, Art. 175; Amended Rules on Compensation, Rule 1, Sec. 2)
- Compulsory coverage of the employer shall take effect on the first day of his operation. Compulsory coverage of the employee shall take effect on the first day of his employment. (ECL Rules, Sec. 6, Rule 1)
III. EXCLUSION
SSS Law (R.A. No. 8282)
- Services where there is no employer-employee relationship in accordance with existing labor laws, rules, regulations, and jurisprudence;
- Services performed in the employ of the Philippine Government or instrumentality or agency thereof;
- Services performed in the employ of a foreign government or international organization, or their wholly-owned instrumentality; and
- Such other services performed by temporary and other employees which may be excluded by regulation of the Commission. (Sec. 8, (j), R.A. No. 11199)
- Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the service of said contractors.
- Employer’s obligation to contribute arising from that employment shall cease at the end of the month of separation.
- Separated employee shall be credited with all contributions paid on his/her behalf and is entitled to the social security benefits in accordance with issued guidelines and the provisions of the Social Security Act of 2018.
- Separated employee may continue to pay his/her contributions voluntarily to maintain his/her right to full benefit.
- Any contribution paid in advance by the employer but not due shall be credited or refunded to said employer.
Effect of the interruption of business or professional income
- If the self-employed member realizes no income in any given month, he/she shall not be required to pay his/her contributions for that month.
- No self-employment income, no obligation to pay.
- A self-employed member may be allowed to continue paying contributions under the same rules and regulations applicable to a separated employee member.
- No retroactive payment of contributions shall be allowed. (Sec. 22, R.A. No. 11199)
GSIS Law (R.A. No. 8291)
- Employees who have separate retirement schemes under special laws and are therefore covered by their respective retirement laws, such as the:
- members of the Judiciary
- Constitutional Commissions, and
- other similarly situated government officials;
- Contractual employees who have no employer-employee relationship with the agencies they serve;
- Uniformed members of the Armed Forces of the Philippines (AFP), the Bureau of Fire Protection, and the Bureau of Jail Management and Penology (BJMP) whose coverage by the GSIS has ceased effective June 24, 1997; and
- Uniformed members of the Philippine National Police (PNP) whose coverage by the GSIS has ceased effective February 1, 1996. (Sec. 2.4, IRR of R. A. No. 8291)
Employee's Compensation Law (P.D. No. 626)
- Limitation of liability.
- The State Insurance Fund shall be liable for compensation to the employee or his dependents, except when the disability or death was occasioned by:
- The employee's intoxication
- Willful intention to injure or kill himself or another
- Notorious negligence, or
- Otherwise provided under this Title. (Art. 172)
IV. DEPENDENTS
SSS Law (R.A. No. 8282)
- The legal spouse entitled by law to receive support from the member;
- The legitimate, legitimated, or legally adopted, and illegitimate child who is unmarried, not gainfully employed and has not reached twenty-one (21) years of age, or if over twenty-one (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
- The parent who is receiving regular support from the member. (Sec. 8[e])
GSIS Law (R.A. No. 8291)
- The legitimate spouse dependent for support upon the member or pensioner;
- The legitimate, legitimated, legally adopted child, including the illegitimate child, who is unmarried, not gainfully employed, not over the age of majority, or is over the age of majority but incapacitated and incapable of self-support due to a mental or physical defect acquired prior to age of majority; and
- The parents dependent upon the member for support; (Sec. 2[f])
Gainful Occupation — Any productive activity
that provided the member with income at least
equal to the minimum compensation of
government employees (Sec. 2[p])
Employee's Compensation Law (P.D. No. 626)
- The legitimate, legitimated, legally adopted or acknowledged natural child who is unmarried, not gainfully employed, and not over twenty-one years of age or over twenty-one 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;
- The legitimate spouse living with the employee; and
- The parents of said employee wholly dependent upon him for regular support. (Art. 167[i])
V. BENEFICIARIES
SSS Law (R.A. No. 8282)
- Primary
- The dependent spouse until he or she remarries; and
- The dependent legitimate, legitimated or legally adopted, and illegitimate children.
- Provided, That the dependent illegitimate children shall be entitled to fifty percent (50%) of the share of the legitimate, legitimated or legally adopted children.
- Secondary
- The dependent parents
- Any other person designated by the member as his/her secondary beneficiary. (Sec. 8[k])
Dependent for support
- The entitlement to benefits as a primary beneficiary requires not only legitimacy but also dependence upon the member employee.
- One who derives his/her main support from another. Meaning, relying on, or subject to, someone else for support; not able to exist or sustain oneself, or to perform anything without the will, power, or aid of someone else.
- The reckoning point in determining the beneficiaries of the deceased should be the time of the latter’s death.
Qualification of Spouse-Beneficiary
- The spouse must have been legally married to the retiree-pensioner at the time of death.
- If the marriage was celebrated after the retirement of the member, any of the following circumstances is present:
- The spouses were living together as husband and wife without legal impediment to marry each other prior to the retirement of the member; or
- The surviving spouse was reported as beneficiary-spouse in the SSS Forms prior to the retirement of the member; or
- A child was born during the existence of the marriage between the retiree-pensioner and the surviving spouse; or
- Before marriage, a child was born during the time the spouses were living together as husband and wife without legal impediment to marry each other; or
- The marriage between the surviving spouse and retiree-pensioner is established to have been contracted not for any fraudulent purpose. In this regard, the SSS Branch concerned shall conduct an appropriate investigation to satisfy this requirement.
- The spouse must have been dependent for support upon the retiree-pensioner during the existence of marriage. (SSS Office Order No. 2010-02)
The Social Security System is not a law on
succession.
- It is not the heirs of the employee but the designated beneficiaries who are to receive the social security benefits.
- It is only when the beneficiary is the estate, or when there is no designated beneficiary, or if the designation of beneficiary is void, that the Social Security System is required to pay the employee’s heirs. (Ungos, 2013)
GSIS Law (R.A. No. 8291)
- Primary
- The legal dependent spouse until he/she remarries and the dependent children. (Sec. 2[g])
- Secondary
- The dependent parents and, subject to the restrictions on dependent children, the legitimate descendants. (Sec. 2[h])
Dependent spouse
- Legitimate spouse dependent for support upon the member or pensioner.
- If a wife is already separated de facto from her husband, she cannot be said to be "dependent for support" upon the husband, absent any showing to the contrary.
- 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.
Employee's Compensation Law (P.D. No. 626)
- Primary
- The dependent spouse until he remarries; and
- The dependent children.
- Secondary
- The dependent parents; and
- The illegitimate children and legitimate descendants, subject to the restrictions imposed on dependent children.
- 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 eligible for monthly income benefit. (Art. 167[j])
VII. BENEFITS
SSS Law (R.A. No. 8282)
- Sickness Benefits
- Permanent Disability Benefits
- Maternity Leave Benefits
- Retirement Benefit
- Death Benefits
- Funeral Benefits
- Unemployment Insurance or Involuntary Separation Benefits
Non-transferability of Benefits
- Benefits payable 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 the payees are physically unable to collect personally such benefits. (Sec. 15, R.A. No. 11199)
1. Sickness Benefits
- A daily cash allowance paid by the employer to the member who is unable to work due to sickness or injury for each day of compensable confinement or a fraction thereof, or by the SSS, if such person is unemployed or is self-employed, an Overseas Filipino Worker, or Voluntary Member who has been previously covered either as employed/self-employed/Overseas Filipino Worker and non-working spouse. (Rule 25, IRR, R.A. No. 11199)
- Qualifying Conditions
- The member is unable to work due to sickness or injury and is confined either in a hospital or at home for at least four (4) days.
- The member has paid at least three (3) months of contributions within the 12-month period immediately before the semester of sickness or injury.
- The member has used all company sick leaves with pay for the current year and has duly notified his employer.
- The member must notify the SSS by filing a sickness benefit application if he is separated from employment, a self-employed or voluntary member, including OFW-member. (Sec. 14, R.A. No. 11199)
- No contributions paid retroactively shall be used in determining the eligibility to sickness benefit wherein the date of payment is within or after the semester of contingency.
- Notification Requirement
- Hospital Confinement
- Notification by Employee to Employer
- Not necessary
- Notification by Employer to SSS
- The employer shall inform the SSS of such confinement in the prescribed manner within one (1) year from date of discharge.
- Confinement elsewhere, as may be defined by the SSS
- Notification by Employee to Employer
- The employee shall notify the employer of the sickness or injury in the prescribed manner within five (5) calendar days after the start of confinement.
- Notification by Employer to SSS
- The employer shall in turn notify the SSS within five (5) calendar days after receipt of notice from employee.
- Sickness/injury that occurred while working or within the premises of the employer
- Notification by Employee to Employer
- Not necessary
- Notification by Employer to SSS
- The employer shall notify the SSS of such sickness/injury in the prescribed manner within five (5) calendar days after onset of sickness/injury
- Overseas Filipino Worker
- Notification Requirement of Self-Employed
- Directly notify the SSS of the confinement in the prescribed manner within five (5) calendar days after the start of confinement.
- When such confinement is in a hospital, notification to the SSS in the prescribed manner shall be within one (1) year from date of discharge. (Sec. 14, R.A. No. 11199)
- OFWs are given 35 calendar days in filing sickness benefits. This applies only for confinement elsewhere as defined by the SSS. (Sec. 3, Rule 25, IRR, R.A. No. 11199)
- Amount of Benefit
- The amount of the member’s daily Sickness Benefit allowance is equivalent to 90% of his Average Daily Salary Credit. (ADSC). (Sec. 14, R.A. No. 11199)
- The Sickness Benefit is granted up to maximum of 120 days in one (1) calendar year.
- Limitations on the Grant of Sickness Benefit
- A member may be granted a maximum sickness benefit of 120 days in one (1) calendar year.
- The sickness benefit shall be paid for not more than 240 days on account of the same illness or confinement.
- An unused portion of the allowable 120 days sickness benefit cannot be carried forward nor added to the total number of compensable days allowable in the following year.
- Compensable confinement shall begin only after all sick leaves of absence with full pay to the credit of employee-member shall have been exhausted, if applicable. (Sec. 14, R. A. No. 11199; Sec. 6, Rule 25, IRR, R. A. No. 11199)
- Compensable Confinement
- It begins on the first day of sickness; and
- Payment of such allowances shall be promptly made by the employer:
- Every regular payday or on the 15th and last day of each month; and
- In case of direct payment by the SSS - as long as such allowances are due and payable. (Sec. 14, R. A. No. 11199)
- Requirements for an Employer to claim reimbursement of the sickness benefit
- 100% of daily benefits shall be reimbursed by SSS if the following requirements are satisfied:
- Receipt of SSS of satisfactory proof of such payment and legality thereof; and
- The Employer has notified the SSS of the confinement within five (5) calendar days after receipt of the notification from the Employee member.
- Er shall be reimbursed only for each day of confinement starting from the 10th calendar day immediately preceding the date of notification to the SSS if the notification to the SSS is made beyond five (5) calendar days after receipt of the notification from the Ee member. (Sec. 14, R.A. No. 11199)
- Instances when the employer or the unemployed member is not entitled to reimbursement
- Where the employer failed to notify the SSS of the confinement;
- 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
- Where the claim for reimbursement is made after one year from the date of confinement. (Sec. 14, R.A. No. 11199)
- Sickness and disability benefits may be availed of simultaneously
- Sickness/injury and disability are not related.
- Member meets all the qualifying conditions for the grant of sickness and disability benefits. (Sec. 6, Rule 25, IRR of R. A. No. 11199)
2. Permanent Disability Benefits
- A cash benefit granted to a member who becomes permanently disabled, either partially or totally. (Sec. 1, Rule 23, IRR, R.A. No. 11199)
- Permanent Total Disability
- Complete loss of sight of both eyes;
- Loss of two limbs at or above the ankle or wrists;
- Permanent complete paralysis of two limbs;
- Brain injury resulting to incurable imbecility or insanity; and
- Such cases as determined and approved by the SSS. (Sec. 13-A, R.A. No. 11199)
- Permanent Partial Disability
- If disability occurs after 36 monthly contributions have been paid prior to the semester of disability, the benefit shall be the monthly pension for permanent total disability payable not longer than the period designated in the schedule in Section 3, Rule 23 of the IRR of R.A. No. 11199.
- The monthly pension benefit shall be given in lump sum if it is payable for less than 12 months.
- For the purpose of adjudicating retirement, death and permanent total disability pension benefits, contributions shall be deemed paid for the months during which the member received partial disability pension.
- Percentage of the lump sum benefit
- available if the permanent partial disability occurs before 36 monthly contributions have been paid prior to the semester of disability;
- Monthly pension
- available if the permanent partial disability occurs after 36 contributions, payable in accordance with the schedule. (Sec. 13-A, R. A. No. 11199)
- Qualifying Conditions
- The member has paid at least one month contribution before the semester of disability.
- To qualify for a monthly disability pension, the member must have paid at least 36 monthly contributions prior to the semester of disability.
- If less than 36 monthly contributions, he is granted a lump sum amount. (Sec. 13-A, R.A. No. 11199)
- Amount of Benefits
- The minimum monthly Disability Pension is:
- P1,000 if the member has less than ten Credited Years of Service (CYS);
- P1,200 if with at least 10 CYS; and
- P2,400 with at least 20 CYS.
- If qualified, the member is granted a monthly Disability Pension, plus P5,000 monthly Supplemental Allowance. (Sec. 7, Rule 23, IRR, R. A. No. 11199)
- Dependent’s Pension (for total disability), which is 10% of the member’s basic monthly pension, or P250, whichever is higher. (Sec. 12- A, R.A. No. 11199)
- Only five dependent minor children, beginning from the youngest, are entitled to dependent’s pension. No substitution is allowed.
- Plus P1,000 additional benefit effective January 2017. (Sec. 12 (c), R.A. No. 11199)
- 13th month pension, which is payable every December to total disability pensioners; for partial disability pensioners, 13th month pension shall be paid provided that pension duration is at least 12 months. (Sec. 8, Rule 23, IRR, R. A. No. 11199)
- Effect of the Death of a Pensioner with Permanent Total Disability
- Primary beneficiaries are entitled to receive monthly pension as of the date of disability.
- If there are no primary beneficiaries and the pensioner 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 five-year guaranteed period excluding the dependents’ pension. (Sec. 13-A, R.A. No. 11199)
- Effect of Retirement or Death of a Pensioner with a Partial Disability
- If the pensioner with partial disability retires or dies, the disability pension shall cease upon his retirement or death. (Sec. 13-A, R.A. No. 11199)
3. Maternity Benefits
- Maternity Leave Benefit is a daily cash allowance granted to female members who gave birth via normal delivery or caesarean section or suffered miscarriage, regardless of civil status or legitimacy of the child. (Sec. 1, Rule 26, IRR, R.A. No. 11199)
- Qualifying conditions
- The member has paid at least three (3) monthly contributions within the 12-month period immediately preceding the semester of her childbirth or miscarriage.
- If employed, she must have notified her Employer of her pregnancy and the probable date of her childbirth.
- She must directly notify the SSS if she is unemployed, a self-employed or voluntary member, non-working spouse, including OFW-member. (Sec. 14-A, R.A. No. 11199)
- Amount of Benefits
- The amount of daily allowance is equivalent to 100% of the member’s ADSC for a compensable period of:
- 105 days for normal or caesarian section delivery;
- 120 days for solo parents under R.A. No. 8972 or Solo Parents’ Welfare Act; or
- 60 days for miscarriage or emergency. (R.A. No. 11210 or the Expanded Maternity Leave Law)
- The Maternity Benefit is granted regardless of member’s civil status and frequency of pregnancy.
4. Retirement Benefit
- The Retirement Benefit is a monthly pension or lump sum granted to a member who can no longer work due to old age. (Sec. 1, Rule 21, IRR, of R. A. No. 11199)
- Types of retirement benefit
- Monthly Pension
- Lifetime cash benefit paid to a retiree who has paid at least 120 monthly contributions to the SSS prior to the semester of retirement.
- Lump Sum Amount
- Granted to a retiree who has not paid the required 120 monthly contributions.
- Qualifying conditions
- A member must have at least 120 monthly contributions prior to semester of retirement; and
- Age Requirement:
- Optional Retirement
- Has reached 60 years old and separated from employment or has ceased to be self-employed, except:
- An underground mineworker whose date of actual retirement is not earlier than 13 March 1998 but not later than 27 April 2016 – at least 55 years old;
- An underground or a surface mineworker whose date of actual retirement in not earlier than 27 April 2016 – 50 years old.
- Technical Retirement
- At least 65 years old, except:
- An underground mineworker or surface mineworker – At least 60 years old
- In the case of a racehorse jockey – At least 55 years old. (Sec. 2, Rule 21, IRR of R. A. No. 11199)
- Requisites for entitlement to lump sum benefit
- At least 60 years old at the time of retirement;
- Does not qualify for pension benefits under paragraph a of Sec. 12-B;
- Must be separated from employment; and
- Is not continuing payment of contribution to the SSS on his own. (Sec. 5, Rule 21, IRR, R. A. No. 11199)
- Death of a Retired Member
- His/her primary beneficiaries, as of the date of his/her retirement, shall be entitled to receive 100% of the monthly pension.
- If the retired member has no primary beneficiaries and dies within 60 months from the start of his/her monthly pension, his/her secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the total monthly pension corresponding to the balance of the five-year guaranteed period, excluding the dependent’s pension and additional benefit allowance.
- If there are no primary and secondary beneficiaries, the lump sum payment in the amount specified in the preceding paragraph shall form part of his/her estate and shall be paid to his/her legal heirs in accordance with the law of succession. (Sec. 8, Rule 21, IRR, R.A. No. 11199)
5. Death Benefits
- It is a cash benefit either in monthly pension or lump sum paid to the beneficiaries of a deceased member. (Sec. 1, Rule 22, IRR, R. A. No. 11199)
- Entitlement to Death Benefits
- Upon death of a member who has paid at least 36 monthly contributions prior to the semester of death:
- Primary beneficiaries shall be entitled to the monthly pension; or
- If there are no primary beneficiaries, secondary beneficiaries shall be entitled to a lump sum benefit equivalent to 36 times the monthly pension.
- Upon death of a member who has not paid the required 36 monthly contributions prior to the semester of death, the primary or secondary beneficiaries shall receive lump sum benefit, whichever is higher between the equivalent of
- The monthly pension multiplied by the number of monthly contributions paid to the SSS; or
- 12 times the monthly pension. (Sec. 13, R.A. No. 11199)
- Amount of Benefit
- Monthly death pension to the member’s primary beneficiary.
- Lump sum amount to secondary beneficiaries in the absence of primary beneficiaries, or to legal heirs in the absence of secondary beneficiaries.
- Cause of Death must be an Occupational Disease
- In order for the beneficiary of an Employee to be entitled to death benefits under the SSS, the cause of death must be a sickness listed as an occupational disease by ECC; or any other illness caused by employment, subject to proof that the risk of contracting the same is increased by the working conditions.
- A funeral grant equivalent to P12,000.00 shall be paid, in cash or in kind, to help defray the cost of funeral expenses upon the death of a member or retiree. (Sec. 13-B, R.A. No. 11199)
- Starting 01 Aug. 2015, the amount of the funeral grant was increased to a variable amount ranging from a minimum of P20,000 to a maximum of P40,000, depending on the member’s paid contributions and CYS. (Sec. 2, Rule 24, IRR, R. A. No. 11199).
- Qualifying Conditions
- The Employee-member was reported for coverage by his Employer.
- A self-employed member/ OFW / non-working spouse who had at least one contribution payment
- A voluntary member who was previously covered either as employed / self- employed / OFW and has at least one contribution payment.
- The Employee-member was subject to compulsory coverage but was not reported for coverage by Employer.
7. Unemployment Benefits
- Also known as unemployment insurance or involuntary separation benefit, it is a cash benefit granted to covered employees, including kasambahays and OFWs (sea-based or land-based) who are involuntarily separated from employment. (Sec. 14-B, R.A. No. 11199)
- Qualifying Conditions
- Not over 60 years old at the time of involuntary separation, except;
- In the case of underground mineworker or surface mineworker which must not be over 50 years old; or
- In the case of racehorse jockey, not over 55 years old.
- Has paid at least 36 monthly contributions, 12 months of which should be in the eighteen (18) month period immediately preceding the unemployment or involuntary separation;
- Involuntarily separated from employment provided that such separation did not arise from fault or negligence of the employee and which may be attributed to any of, but not limited to, the following:
- Installation of labor-saving devices;
- Redundancy;
- Retrenchment to prevent loss;
- Closure or cessation of operation; or
- Disease/illness. (Sec. 2, Rule 27, IRR, R. A. No. 11199)
- Amount of Benefit
- The benefit is granted through a one-time payment, and the claim must be filed within a year from the date of involuntary separation.
- The unemployment insurance or involuntary separation benefit is a monthly cash payment equivalent to 50% of the AMSC for a maximum of two (2) months, subject to the rules and regulations that the Commission may prescribe. (Rule 27, IRR, R. A. No. 11199)
GSIS Law (R.A. No. 8291)
- Separation benefits;
- Unemployment or involuntary separation benefits;
- Retirement benefits;
- Permanent disability benefits;
- Temporary disability benefits;
- Survivorship benefits;
- Funeral benefits;
- Life insurance; and
- Such other benefits and protection as may be extended to them by the GSIS such as loans.
- Prescriptive Period to Claim the Benefits
- General Rule: Four (4) years from the date of contingency.
- Exceptions: Life insurance and retirement (Sec. 28, R.A. No. 8291)
1. Separation Benefits
- Entitlement of a Member to Separation Benefits
- A member who has rendered a minimum of three (3) years of creditable service shall be entitled to separation benefits upon resignation or separation under the following terms:
- A member with at least three (3) years of service but less than 15 years
- Cash payment equivalent to 100% of the average monthly compensation for every year of service the member has paid contributions:
- Not less than P12,000.00; and
- Payable upon reaching 60 years of age or upon separation, whichever comes later. (Sec. 11(a), R.A. No. 8291)
- A member with at least 15 years of service and less than 60 years of age at the time of resignation or separation:
- Cash payment equivalent to 18 times the Basic Monthly Pension (BMP), payable at the time of resignation or separation; and
- An old-age pension benefit equals to the BMP, payable monthly for life upon reaching the age of 60. (Sec. 11(b), R.A. No. 8291)
- Effects of Separation from Service with regard to Membership
- A member separated from the service shall continue to be a member and shall be entitled to whatever benefits he/she qualifies for. (Once a member, always a member Principle)
- A member separated for a valid cause shall automatically forfeit his benefits, unless the terms of resignation or separation provide otherwise. In case of forfeiture, the separated employee shall be entitled to receive only one-half (1/2) of the cash surrender value of his insurance.
2. Unemployment Benefits
- It will consist of monthly cash payments equivalent to 50% of the average monthly compensation.
- A member who has rendered at least 15 years of service will be entitled to separation benefits instead of unemployment benefits.
- Conditions for Entitlement to Unemployment Benefits
- The recipient must be a permanent employee at the time of separation;
- His separation was involuntary due to the abolition of his office or position resulting from reorganization; and
- He has been paying the contribution for at least one (1) year prior to separation. (Sec. 12, R.A. No. 8291)
3. Retirement Benefits
- Reason for Compulsory Retirement
- The compulsory retirement of government officials and employees upon reaching the age of 65 years is founded on public policy which aims to maintain efficiency in the government service and at the same time, give 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.
- Conditions to be Entitled to Retirement Benefits
- A member has rendered at least 15 years of service;
- He is at least 60 years of age at the time of retirement; and
- He is not receiving a monthly pension benefit from permanent total disability. (Sec. 13-A, R.A. No. 8291)
- Where the employee retires and meets the eligibility requirements, he acquires a vested right to benefits that is protected by the due process clause. Retirees enjoy a protected property interest whenever they acquire a right to immediate payment under pre-existing law. Thus, a pensioner acquires a vested right to benefits that have become due as provided under the terms of the public employees’ pension statute. No law can deprive such person of his pension rights without due process of law, that is, without notice and opportunity to be heard.
- Options of the Retiree with regard to his or her Retirement Benefits
- Lump sum payment equivalent to 60 months of the 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 five (5) years covered by the lump sum; or
- Cash payment equivalent to 18 times his BMP and monthly pension for life payable immediately. (Sec. 13(a), R.A. No. 8291)
- Rule in case of Extension of Service in order to be Entitled for Retirement Benefits
- The Supreme Court 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 employee who has reached 65 years old without completing the 15 years of government service. However, this discretion is to be exercised conformably with the provisions of Civil Service Memorandum Circular No. 27, series of 1990 which provides that the extension shall not exceed one (1) year.
4. Permanent Disability Benefits
- 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. (Sec. 2(q), R.A. No. 8291)
- Types of Permanent Disability
- 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. (Sec. 2(q) and (s), R.A. No. 8291)
- Benefits
- A member is entitled to the monthly income benefit for life equivalent to the BMP effective from the date of disability when:
- He is in the service at the time of the disability; if at the time of disability, he was in the service and has paid a total of at least 180 monthly contributions, in addition to the monthly income benefit, he shall receive a cash payment equivalent to 18 times his BMP. (Sec. 16(a), R.A. No. 8291)
- If separated from service:
- he has paid at least 36 monthly contributions within five (5) years immediately preceding his disability; or
- he has paid a total of at least 180 monthly contributions prior his disability. (Sec. 16(a), R.A. No. 8291)
- A member cannot enjoy the monthly income benefit for permanent disability and the old-age retirement simultaneously.
- If the member does not satisfy the conditions above but has rendered at least three (3) years of service, he shall be advanced the cash payment equivalent to 100% of his average monthly compensation for each year of service he has paid contributions, but not less than P12,000.00, which should have been his separation benefit. (Sec. 16(b), R.A. No. 8291)
- Total and Permanent
- Complete loss of sight of both eyes;
- Loss of two (2) limbs at or above the ankle or wrist;
- Permanent complete paralysis of two (2) limbs;
- Brain injury resulting in incurable imbecility or insanity; and
- Such other cases as may be determined by the GSIS. (Sec. 16(d), R.A. No. 8291)
- 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. No. 8291)
- Benefits
- 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) of R.A. No. 8291.
- Partial and Permanent
- Complete and permanent loss of the use of:
- Any finger
- Any toe
- One arm
- One hand
- One foot
- One leg
- One or both ears
- Hearing of one or both ears
- Sight of one eye
- Such other cases as may be determined by the GSIS. (Sec. 17(b), R.A. No. 8291)
- Suspension of Payment of Benefits
- In case a member is re-employed;
- Member recovers from disability as determined by the GSIS; or
- Fails to present himself for medical examination when required by the GSIS. (Sec. 16(c), R.A. No. 8291)
- Instances when Recovery is Precluded
- If the permanent disability was due to the following acts of the subject employee:
- Grave misconduct;
- Notorious negligence;
- Habitual intoxication; or
- Willful intention to kill himself or another. (Sec. 15, R.A. No. 8291) e
5. Temporary Disability Benefits
- Temporary Total Disability (TTD) 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. No. 8291)
- A member cannot enjoy TTD benefit and sick leave pay simultaneously.
- Benefits
- Member is entitled to 75% of his current daily compensation for each day or fraction thereof of total disability benefit, to start not earlier than the 4th day but not exceeding 120 days in one calendar year after exhausting all his sick leave credits and collective bargaining agreement (CBA) sick leave benefits, if any. Provided, that:
- He was in the service at time of disability; or
- If separated, he has rendered at least three (3) years of service and has paid at least six (6) monthly contributions in the year preceding his disability. (Sec. 18(a), R.A. No. 8291)
- TTD benefits shall in no case be less than P70.00 a day. (Sec. 18(b), R.A. No. 8291)
- An application for disability must be filed with the GSIS within four (4) years from the date of the occurrence of the contingency.
6. Survivorship Benefits
- Persons Entitled to Survivorship Benefits
- Upon the death of a member or pensioner, his beneficiaries shall be entitled to survivorship benefits. Such benefit shall consist of:
- The basic survivorship pension which is 50% of the BMP; and
- The dependent children’s pension not exceeding 50% of the BMP. (Sec. 20, R.A. No. 8291)
- The dependent children shall be entitled to the survivorship pension as long as there are dependent children and, thereafter, the surviving spouse shall receive the basic survivorship pension for life or until he or she remarries.
- Conditions for the Primary Beneficiaries
- Upon the death of a member, the primary beneficiaries shall be entitled to:
- Survivorship pension – Provided, that the deceased:
- Was in the service at the time of his death; or
- If separated from the service, has rendered at least three (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.
- 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 three (3) years of service; or
- A cash payment equivalent to 100% of his 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 three (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. No. 8291)
- Conditions for the Secondary Beneficiaries
- In the absence of primary beneficiaries, the secondary beneficiaries shall be entitled to:
- The cash payment equivalent to 100% of his average monthly compensation for each year of service he paid contributions, but not less than P12,000.00 – Provided, That the member is in the service at the time of his death and has at least three (3) years of service; or
- In the absence of secondary beneficiaries, the benefits under this paragraph shall be paid to his legal heir. (Sec. 21(c), R.A. No. 8291)
7. Funeral Benefits
- The funeral benefit is in the amount of P18,000. It is intended to defray the expenses incident to the burial and funeral of the deceased member, pensioner, or retiree under R.A. No. 660, R.A. No. 1616, P.D. 1146, and R.A. No. 8291.
- It is payable to the members of the family of the deceased, in the order which they appear:
- Legitimate spouse;
- Legitimate child who spent for the funeral services; or
- Any other person who can show unquestionable proof that he has borne the funeral expenses of the deceased.
- Payment of Funeral Benefits
- Funeral benefits will be paid upon the death of:
- An active member;
- A member who has been separated from the service but is entitled to future separation or retirement benefits;
- A member who is a pensioner (excluding survivorship pensioners); or
- A retiree who is at the time of his retirement was of pensionable age, at least 60 years old, who opted to retire under R.A. No. 1616. (An act further amending Sec. 12, C.A. 186, as amended, by prescribing two other modes of retirement and for other purposes)
8. Life Insurance
- Classes of Life Insurance Coverage under the GSIS Law
- Compulsory Life Insurance; and
- Optional Life Insurance.
- The plans may be endowment or ordinary life.
- Compulsory Life Insurance Coverage
- All employees including the members of the Judiciary and the Constitutional Commissioners, but excluding 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:
- Those employed after the effectivity of this Act, their insurance shall take effect on the date of their employment;
- 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; and
- For those without any life insurance as of the effectivity of this Act, their insurance shall take effect following said effectivity. (Sec. 24, R.A. No. 8291)
- Optional Life Insurance Coverage
- A member may at any time apply for himself and/or his dependents an insurance and/or pre-need coverage embracing:
- Life;
- Memorial plans;
- Health;
- Education;
- Hospitalization; or
- Other plans as maybe designed by GSIS
- Any Employer may apply for group insurance coverage for its Employees. (Sec. 26, R.A. No. 8291)
Employee's Compensation Law (P.D. No. 626)
Limited Portability Law (R.A. No. 7699)
Purpose
- R.A. No. 7699 was enacted to enable those from the private sector who transfer to the government service or from the government service to the private sector to combine their years of service and contributions which have been credited with the SSS or GSIS, as the case may be, to satisfy the required number of years of service for entitlement to the benefits under the applicable laws. (Chan, 2019)
- Applies to all worker-members of the GSIS and/or SSS who transfer from the public sector to private sector or vice-versa, or who wish to retain their membership in both Systems. (Sec. 1, Rule 1, IRR)
- Portability refers to the transfer of funds for the account and benefit of a worker who transfers from one system to the other. (Sec. 2(b), R.A. No. 7699)
- 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. No. 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. No. 7699)
- This is advantageous to the SSS and GSIS members for purposes of death, disability or retirement benefits. In the event the Employees 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.
- Totalization refers to the process of adding up the periods of creditable services or contributions under each of the Systems, SSS or GSIS, for the purpose of eligibility and computation of benefits. (Sec. 2(e), R.A. No. 7699)
- All services rendered or contributions paid by a member personally or paid by the employers to either System shall be considered in the computation in the computation of benefits, which may be claimed from either or both Systems. (Sec. 2, Rule V, IRR, R.A. No. 7699)
- The amount of benefits to be paid by one System shall be in proportion to the services rendered/periods of contribution made to that System. (Sec. 2, Rule V, IRR, R.A. No. 7699)
- If a worker is not qualified for any benefits from both System;
- If a worker in the public sector is not qualified for any benefits in the GSIS; or
- If a worker in the private sector is not qualified for any benefits from the SSS.
- For purposes of computation of benefits, totalization shall apply to all cases so that the contributions made by the worker-member in both Systems shall provide maximum benefits which otherwise will not be available. In no case shall the contribution be lost or forfeited. (Sec 3, Rule V, IRR, R.A. N. 7699)
- Overlapping periods of creditable services in both Systems shall be credited only one for purposes of totalization. (Sec. 7, Rule V, IRR, R.A. 7699)
- If after the totalization, the worker-member still does not qualify for any benefit, the member will then get whatever benefits correspond to his/her contributions in either or both Systems. (Sec. 4, Rule V, IRR, R.A. No. 7699)
Creditable Services
I. For the public sector, the following shall be
considered creditable services:
- All previous services rendered by an official/employee pursuant to an appointment whether permanent, provisional or temporary;
- All previous services rendered by an official/employee pursuant to a duly approved appointment to a position in the Civil Service with compensation or salary;
- The period during which an official/employee was on authorized sick leave of absence without exceeding one year;
- The period during which an official or employee was out of the service as a result of illegal termination of his service as finally decided by the proper authorities; and
- All previous services with compensation or salary rendered by elective officials. (Sec. 1(f), Rule III, IRR, R.A. No. 7699)
Benefits Covered
- Old-age benefit;
- Disability benefit;
- Survivorship benefit;
- Sickness benefit;
- Medicare benefit, provided that the member shall claim said benefit from the System where he was last a member; and
- Such other benefits common to both System that may be availed of through totalization. (Sec. 1(j), Rule III, IRR, R.A. No. 7699)
- The System or Systems responsible for the payment of money benefits due to a covered worker shall release the same within 15 working days from receipt of the claim, subject to the submission of the required documents and availability if the complete employee/employer records in the System. (Sec. 2, Rule IV, IRR, R.A. No. 7699)
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