CHRA
LABOR CODE OF THE PHILIPPINES
BOOK ONE: PRE-EMPLOYMENT
Recruitment and Placement of Workers
Recruitment and placement: This involves actively seeking, enlisting, contracting, transporting, utilizing, hiring, or procuring workers. This also covers referrals, contract services, promising, or advertising employment opportunities.
This applies whether the activity is for profit or not. Any person or entity offering employment to two or more individuals in any manner (or for a fee) is considered engaged in recruitment and placement.
Private Fee-Charging Employment Agency: An entity involved in recruiting and placing workers for a fee, charged either directly or indirectly to the workers, employers, or both.
License: A formal authorization from the Department of Labor allowing a private employment agency to operate.
Private Recruitment Entity: An entity involved in recruiting and placing workers but does not charge any fees to the workers or employers.
Authority: Permission granted by the Department of Labor allowing a person or association to engage in recruitment and placement as a private recruitment entity.
Seaman: An individual employed on a vessel engaged in maritime navigation.
Overseas Employment: Employment outside the territorial boundaries of the Philippines.
Emigrant: An individual who moves to a country with the intention of establishing permanent residence, typically holding an immigrant visa or resident permit.
Employment Promotion
RA 8759 or Public Employment Service Office: Legislation and offices aimed at promoting full employment and equal employment opportunities for all citizens.
Bureau of Employment Services
Established under Executive Order 797, this bureau likely handles various employment-related services and functions.
Employment of Non-Resident Aliens
Employers seeking to hire foreign nationals must first secure an employment permit from the Department of Labor.
The permit can be issued either to the non-resident alien or to the employer making the application.
Prohibition Against Transfer of Employment: After a permit is issued, a foreign worker cannot switch jobs or employers without obtaining approval from the Secretary of Labor.
Violations of this rule are subject to penalties.
Submission of List: Employers who hire non-resident foreign nationals are obligated to submit a list to the Secretary of Labor within 30 days of hiring. This list should include the employee's name, citizenship, addresses (foreign and local), nature of employment, and visa status.
BOOK TWO: HUMAN RESOURCES DEVELOPMENT PROGRAM
National Manpower Development Program
Encompasses national policies and administrative structures designed to:
Develop human resources within the country.
Establish training institutions and create relevant development plans.
Implement programs ensuring the efficient allocation, development, and utilization of the nation's manpower.
Promote employment opportunities and accelerate economic and social growth.
Manpower: The portion of the population with the current or potential ability to directly contribute to the production of goods and services.
Entrepreneurship: Training initiatives designed to support self-employment and aid small industries and individual ventures.
Training and Employment for Special Workers
Apprenticeship: Consists of practical on-the-job training combined with related theoretical instruction.
Apprentice: A worker participating in a written apprenticeship agreement with an employer.
Apprenticeable Occupation: A trade, form of employment, or occupation requiring more than 3 months of practical on-the-job training supplemented by theoretical instruction.
Apprenticeship Agreement: A contract where the employer commits to training the apprentice, and the apprentice agrees to the terms of training.
Qualifications of an Apprentice:
Must be at least 14 years old.
Must demonstrate vocational aptitude and the capacity to pass relevant tests.
Must possess the ability to understand and follow both oral and written instructions.
Employment of Apprentices:
Only employers in highly technical industries are allowed to employ apprentices.
Apprentices can only be employed in apprenticeable occupations approved by the Minister of Labor.
Learners: Individuals hired as trainees in semi-skilled roles or other industrial occupations that are not apprenticeable.
Training is provided through practical experience in a relatively short timeframe.
Learner training should not exceed three months.
Learners can be employed when experienced workers are unavailable.
Employment of learners is necessary to prevent curtailment of employment opportunities.
The employment doesn't create unfair competition based on labor costs or impair established working standards.
Handicapped Workers: Individuals whose earning capacity is impaired by age, physical or mental disability, or injury.
Handicapped workers can be employed when their employment is necessary to prevent the reduction of employment opportunities and does not generate unfair competition.
Handicapped workers may be hired as apprentices or learners if their handicap does not impede their performance of job operations in the specific occupations.
BOOK THREE: CONDITIONS OF EMPLOYMENT
Working Conditions and Rest Periods
Managerial Employees: Those whose primary duty involves managing the establishment or a department within it.
Field Personnel: Non-agricultural employees who regularly perform their duties outside the employer's primary place of business or branch office.
Work Hours
The standard working hours for any employee should not exceed eight (8) hours per day.
Health Personnel: Should maintain regular office hours (8 hours) for five (5) days a week, unless service demands require six days or 48 hours of work.
Health personnel working six days or 48 hours are entitled to an additional compensation of at least 30% of their regular wage for the sixth day (premium pay).
Hours Worked Include:
All time an employee is required to be on duty or at a prescribed workplace.
All time an employee is allowed or permitted to work.
Rest Periods: Short breaks during working hours are counted as hours worked.
Meal Periods: Employers must provide employees with a time off of at least sixty (60) minutes for regular meals.
Night-Shift Differential: Employees are entitled to a night shift differential of no less than 10% of their regular wage for each hour worked between 10:00 pm and 6:00 am.
Overtime Work: Work exceeding 8 hours a day is permissible, provided that the employee receives overtime pay.
Overtime pay includes an additional compensation of at least 25% of the employee's regular wage.
Work performed beyond 8 hours on a holiday or rest day receives an additional compensation equivalent to the rate for the first 8 hours on the holiday or rest day, plus an additional 30%.
Undertime Not Offset by Overtime: Under time on a specific day cannot be offset by overtime on another day.
Granting an employee leave on a different day does not exempt the employer from the required additional compensation.
Emergency Overtime Work: Employers may require overtime in cases such as:
When the country is at war.
To prevent loss of life or property, or in cases of imminent danger to public safety due to an emergency.
Urgent work is required on machines, installations, or equipment.
To prevent loss or damage to perishable goods.
To complete work started before the 8th hour to prevent serious obstruction to the employer's business operations.
Computation of Additional Compensation: Essential for accurately calculating overtime and other remuneration.
Right to Weekly Rest Day: Employers, both for-profit and non-profit, must provide employees with a rest period of at least 24 consecutive hours after every six consecutive normal workdays.
The employer schedules the weekly rest day, considering collective bargaining agreements.
The employer must respect employee preferences for a rest day when based on religious grounds.
When Employer May Require Work on Rest Day:
In cases of actual or impending emergencies.
Urgent work is required on machinery, equipment, or installations to avoid serious loss.
In the event of abnormal pressure of work due to special circumstances, where other measures are insufficient.
To prevent loss or damage to perishable goods.
The nature of work requires continuous operations, and stoppage may result in irreparable injury or loss.
Under other similar circumstances.
Compensation for Rest Day, Sunday, or Holiday Work:
Work on a scheduled rest day warrants an additional compensation of at least 30% of the regular wage. This applies to Sundays only when it's the established rest day.
Employees with no regular workdays or rest days are entitled to an additional 30% for work on Sundays and holidays.
Work on a special holiday receives an additional 30% of the regular wage; if the holiday falls on the employee’s rest day, they are entitled to an additional 50%.
If a collective bargaining agreement or employment contract provides a higher premium pay, the employer must pay the higher rate.
Holidays, Service Incentive Leaves, and Service Charges
Right to Holiday Pay
Employees shall be paid their regular daily wage during regular holidays, except those in retail and service establishments regularly employing less than 10 workers.
If an employee is required to work on a holiday, they shall be paid a compensation equivalent to twice their regular rate.
Holidays include: New Year’s Day, Maundy Thursday, Good Friday, April 9th, May 1st, June 12th, July 4th, November 30th, December 25th and 30th, and any day designated by law for holding a general election.
Right to Service Incentive Leave
Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay.
This provision does not apply to those who are already enjoying:
Vacation leave with pay of at least 5 days.
Employment in establishments regularly employing less than 10 employees.
Exemptions granted by the Secretary of Labor after considering the financial viability of the establishment.
Granting benefits beyond what is legally required shall not be subject to arbitration or any court or administrative action.
Service Charges
All service charges collected by hotels, restaurants, and similar establishments shall be distributed at the rate of 85% for all covered employees and 15% for management.
Wages
Regional Minimum Wages
Wages for agricultural and non-agricultural employees in each region are set regionally.
Payment by Results
The payment of wages by results shall be regulated to ensure fair and reasonable wage rates, preferably through time and motion studies or in consultation with workers’ and employers’ organizations.
Forms of Payment
Employers shall not pay wages using promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender.
Payment of wages by check or money order is allowed when such payment is customary.
Time of Payment
Wages shall be paid at least once every two weeks or twice a month at intervals not exceeding 16 days.
Employers shall pay wages immediately after force majeure or similar circumstances have ceased.
No employer shall make payments less frequently than once a month.
The payment of wages for tasks that cannot be completed in two weeks shall be subject to the following conditions, unless otherwise stipulated in a collective bargaining agreement or arbitration award:
Payments are made at intervals not exceeding 16 days.
The final settlement is made upon completion of the work.
Place of Payment
Payment of wages shall be made at or near the place of undertaking.
Direct Payment of Wages
Wages shall be paid directly to the workers, except:
In cases of force majeure rendering such payment impossible or under other special circumstances to be determined.
Where the worker has died, the employer may pay the wages to the heirs without needing intestate proceedings. If the claimants are of age, they shall execute an affidavit attesting to their relationship to the deceased. If the heir is a minor, the affidavit shall be executed on their behalf by their natural guardian or next-of-kin.
Contractor or Subcontractor
When an employer contracts with another person for the performance of work, the employees of the contractor or subcontractor shall be paid in accordance with the law.
If the contractor or subcontractor fails to pay the wages of their employees, the employer shall be jointly and severally liable for the work performed under the contract, in the same manner and extent that they are liable to employees directly employed by them.
Indirect Employer
An indirect employer is any person, partnership, association, or corporation, which, not being an employer, contracts with an independent contractor for the performance of any work, task, job, or project.
Posting of Bond
An employer or indirect employer may require the contractor or subcontractor to furnish a bond equal to the cost of labor under contract, on the condition that the bond will answer for the wages due the employees.
Solidary Liability
Every employer or indirect employer shall be held responsible with their contractor or subcontractor for any violation of any provision of the Labor Code.
Worker Preference in Case of Bankruptcy
In the event of bankruptcy or liquidation of an employer’s business, workers shall have first preference regarding their wages and other monetary claims. Unpaid wages and monetary claims shall be paid in full before claims of the government and other creditors.
Attorney’s Fees
In case of unlawful withholding of wages, the culpable party may be assessed attorney’s fees equivalent to 10% of the wages recovered.
It shall be unlawful for any person to demand or accept attorney’s fees in any judicial or administrative proceedings for the recovery of wages.
Prohibitions Regarding Wages
Non-Interference in Disposal of Wages
No employer shall limit or otherwise interfere with the freedom of any employee to dispose of their wages.
Wage Deduction
No employer shall make any deduction of wages except:
If the worker is insured with their consent by the employer, and the deduction is to recompense the employer for the amount paid as premium on the insurance.
For union dues, where the right of the worker and their union to check-off has been recognized by the employer or authorized in writing by the individual worker concerned.
Where the employer is authorized by law or regulations.
Deposits for Loss or Damage
No employer shall require a worker to make deposits from which deductions shall be made for the reimbursement of loss of or damage to tools, materials, or equipment supplied by the employer, except when the employer is engaged in trades, occupations, or businesses where the practice of making deductions or requiring deposits is a recognized one or necessary.
Limitations
No deduction from the deposits of an employee for the actual amount of the loss or damage shall be made unless the employee has been heard, and their responsibility has been clearly shown.
Withholding of Wages and Kickbacks Prohibited
It shall be unlawful for any person to withhold any amount from the wages of a worker or induce them to give up any part of their wages without the worker’s consent.
Deduction to Ensure Employment
It shall be unlawful to make any deduction from the wages of any employee for the benefit of the employer as consideration of a promise of employment or retention in employment.
Retaliatory Measures
It shall be unlawful for an employer to refuse to pay or reduce the wages and benefits, discharge, or in any manner discriminate against any employee who has filed any complaint.
False Reporting
It shall be unlawful for any person to make any statement knowing it to be false in any material respect.
Wage Studies, Wage Agreements, and Wage Determination
Standards/Criteria for Minimum Wage Fixing
The demand for living wages
Wage adjustments relative to the consumer price index
The cost of living and changes or increases
The needs of workers and their families
The need to induce industries to invest in the countryside
Improvements in standards of living
Prevailing wage levels
Fair return of capital invested and capacity to pay of employers
Effects on employment generation and family income
Equitable distribution of income and wealth along the imperatives of economic and social development
Working Conditions for Special Groups of Employees
Employment of Women
Facilities for Women: Employers shall establish standards that will ensure the safety and health of women employees.
Provide suitable seats and permit women to use them when free from work or during work hours, provided they can perform their duties without detriment to efficiency.
Establish separate toilet rooms and lavatories for men and women and provide at least a dressing room for women.
Establish a nursery in the workplace for the benefit of women employees.
Determine appropriate minimum age and other standards for retirement or termination in special occupations such as flight attendants.
Maternity Leave Benefits:
Every employer shall grant to any pregnant woman employee who has rendered aggregate service of at least 6 months for the last 12 months, maternity leave of at least 2 weeks prior to the expected date of delivery and another 4 weeks after normal delivery or abortion with full pay based on her regular or average weekly wages. The employer may require a medical certificate stating that delivery will probably take place within 2 weeks.
The maternity leave shall be extended without pay due to illness medically certified to arise out of the pregnancy, delivery, abortion, or miscarriage, unless the woman has unused leave credits that can be charged.
Maternity leave shall be paid by the employer only for the first four deliveries by a woman employee.
Family Planning Services; Incentives for Family Planning
Establishments required to maintain a clinic or infirmary shall provide free family planning services including contraceptive methods.
Shall develop and prescribe incentive bonus schemes to encourage family planning among female workers.
Discrimination Prohibited: It shall be unlawful for any employer to discriminate against any woman employee with respect to terms and conditions of employment solely on account of her sex.
Acts of discrimination include:
Payment of lesser compensation compared to a male employee.
Favoring male employees over female employees in promotion, training, study, or scholarship grants.
Stipulation against Marriage: Employers cannot require as a condition of employment that a woman employee shall not get married, or include stipulations that upon marriage, a woman will be deemed resigned or separated; nor can they dismiss, discharge, discriminate, or otherwise prejudice a woman employee merely because of her marriage.
Prohibited acts:
Denying benefits or discharging to prevent an employee from enjoying benefits.
Discharging an employee due to pregnancy or while on leave or confinement due to pregnancy.
Refusing admission for fear that she may become pregnant again.
Employment of Minors
Minimum Employable Age:
No child below 15 years of age shall be employed, except when working directly under the sole responsibility of his parents or guardians and it does not interfere with their schooling.
Those between 15 and 18 years may be employed for specific hours and periods of the day.
Employment below 18 years of age in hazardous or deleterious undertakings is prohibited.
Prohibition against child discrimination: No employer shall discriminate against any person in respect to terms and conditions of employment on account of their age.
Employment of Househelpers
Domestic or household service means service in the employer’s home.
Contract of Domestic Service: The original contract shall not last more than 2 years but may be renewed.
Minimum Wage Rates of Househelpers (not updated): Current minimum wage laws should be consulted for updated rates.
800 pesos a month for Metro Manila and highly urbanized cities.
650 pesos a month for those other chartered cities and first-class municipalities.
550 pesos a month for those in other municipalities.
Employers should review contracts every 3 years.
Househelpers receiving at least 1,000 pesos shall be covered by SSS and be entitled to all benefits.
Minimum Cash Wage: Minimum wage shall be the cash wages paid to househelpers in addition to lodging, food, and medical attendance.
Assignment to Non-Household Work: No househelper shall be assigned to work in commercial, industrial or agricultural enterprises at a wage lower than that provided for those sectors.
Opportunity for Education: If the househelper is under 18 years, the employer shall provide an opportunity for at least elementary education. The cost shall be part of the compensation unless otherwise stipulated.
Treatment of Househelpers: Employers shall treat househelpers in a humane manner.
Board, Lodging, and Medical Attendance
Suitable and sanitary living quarters, adequate food, and medical attendance must be provided free of charge.
Indemnity for Unjust Termination of Services: If the period of service is fixed, neither party may terminate the contract before the term, except for just cause.
If unjustly dismissed, the househelper shall be paid the compensation earned plus 15 days by way of indemnity.
If the househelper leaves without justifiable reason, they shall forfeit the unpaid salary due not exceeding 15 days.
Service of Termination Notice: If the duration is not determined, either party may give notice 5 days before the intended termination.
Employment Certification: The employer shall give the househelper a written statement of the nature and duration of the service and their efficiency and conduct.
Employment Record: The employer may keep records reflecting the actual terms and conditions of employment, authenticated by the househelper’s signature or thumbmark.
Employment of Homeworkers
Distribution of Homework:
Delivers goods, articles, or materials to be processed or fabricated at home and then returned or disposed of based on directions.
Sells goods, articles, or materials to be processed or fabricated at home and then rebuys them after processing.
Employment of Night Workers
Coverage: Applies to all persons employed or permitted to work at night, except those in agriculture, stock raising, fishing, maritime transport, and inland navigation, during a period of no less than 7 consecutive hours, including 12 MN to 5 AM.
Night Worker: Any employed person whose work requires performance of a substantial number of hours of night work which exceeds a specified limit.
Health Assessment: Workers have the right to undergo a free health assessment and receive advice on mitigating health problems associated with night work.
Before taking up an assignment as a night worker.
At regular intervals during the assignment.
If they experience health problems during an assignment not caused by other factors.
Findings of unfitness for night work shall not be disclosed or used to the worker's detriment without their consent.
Mandatory Facilities: Suitable first-aid facilities must be available, including arrangements for immediate transport to appropriate treatment centers when necessary.
Transfer: Workers certified as unfit for night work due to health reasons shall be transferred to a similar job for which they are fit.
If a similar job is not practicable, these workers shall be granted the same benefits as other workers unable to work or secure employment during such period.
Night workers temporarily unfit for night work shall be given the same protection against dismissal as those prevented from working due to health reasons.
Women Night Workers: Measures shall be taken to ensure an alternative to night work is available to women workers.
Before and after childbirth, for at least 16 weeks, divided between the time before and after childbirth.
For additional periods supported by a medical certificate stating the necessity for the health of the mother or child:
During pregnancy.
After childbirth, the length of which is determined by DOLE after consulting labor organizations and employers.
During the periods:
A woman worker shall not be dismissed except for just or authorized cases not connected with pregnancy, childbirth, and childcare responsibilities.
A woman shall not lose benefits regarding her status, seniority, and promotion opportunities that attach to her regular night work position.
Pregnant women and nursing mothers may be allowed to work at night only if a competent physician certifies their fitness.
Compensation: Compensation for night workers in the form of working time, pay, or similar benefits shall recognize the exceptional nature of night work.
Social Services: Appropriate social services shall be provided for night workers.
Night Work Schedules: Before introducing work schedules requiring night workers, the employer shall consult with labor organizations on the details of such schedules.
BOOK FOUR: HEALTH, SAFETY, AND SOCIAL WELFARE BENEFITS
Medical, Dental, and Occupational Safety
First Aid Treatment: Every employer shall keep first-aid medicines and equipment as required by the nature and conditions of the work.
Emergency Medical and Dental Services: Employers must furnish employees with free medical and dental attendance and facilities consisting of:
Services of a full-time registered nurse when the number of employees exceeds 50 but not more than 200. Except when the employer does not maintain hazardous workplaces, the services of a graduate first-aider shall be provided for the protection of workers.
The services of a full-time registered nurse, a part-time physician and dentist, and an emergency clinic, when the number of employees exceeds 200 but not more than 300.
The services of a full-time physician, dentist, and a full-time registered nurse as well as a dental clinic and an infirmary or emergency hospital with one bed capacity for every 100 employees when the number of employees exceeds 300.
In hazardous workplaces, physicians or dentists must stay in the premises: at least 2 hours for part-time and 8 hours for full-time.
When Emergency Hospital Not Required: Requirements for an emergency hospital or dental clinic do not apply if there is an accessible hospital or dental clinic with reserved beds and facilities for the employees' use.
Health Program: The physician engaged by an employer shall develop and implement a comprehensive occupational health program for the benefit of the employees.
Qualifications of Health Personnel: Physicians, dentists, and nurses employed by employers shall have the necessary training in industrial medicine and occupational safety and health.
Assistance of Employer: An employer must provide necessary assistance to ensure adequate and immediate medical and dental attendance to an injured or sick employee in case of emergency.
Occupational Health and Safety
Training Programs: DOLE shall develop and implement training programs to increase the number and competence of personnel in occupational safety and industrial health.
Employees Compensation and State Insurance Fund
Policy: The state promotes a tax-exempt employees’ compensation program whereby employees and their dependents may promptly secure adequate income benefit and medical-related benefits.
Definition of Terms:
Code: Labor Code of the Philippines (PD No. 442)
Commission: Employees’ Compensation Commission
SSS: Social Security System (RA 1161)
GSIS: Government Service Insurance System (Commonwealth Act 186)
System: SSS or GSIS, as the case may be
Employer: any person employing the services of the employee
Employee: person covered by GSIS; AFP, and any person employed as casual emergency, temporary, substitute or contractual. Any person compulsorily covered by SSS; employees from the private sector
Person: any individual, partnership, firm, association, trust, corporation or legal representative
Dependents: legitimate or legally adopted or acknowledge natural child who is unmarried, not gainfully employed, and not over 21 years of age provided that he is incapable of self-support due to physical or mental defect who is congenital or acquired during minority; legitimate spouse living with the employee; and the parents of said employee wholly dependent upon him for regular support
Beneficiaries: dependent spouse until he/she remarries and dependent children who are the primary beneficiaries.
Injury: harmful change on the human organism from any accident arising out of and in the course of the employment
Sickness: illness definitely accepted as an occupational disease or any illness caused by employment subject to proof that the risk of contracting the same is increased by working conditions
Death: loss of life
Disability: loss or impairment of a physical or mental function
Compensation: all payments made for income benefits and medical or related benefits
Income Benefit: all payments to the employee or his dependents
Medical benefit: all payments to provide medical care, rehabilitation services and hospital care
Related benefit: all payments for appliances and supplies
Appliances: artificial aids
Supplies: medicine and other medical, dental, or surgical items
Hospital: medical facility, government or private; an active member in good standing of the Philippine Hospital Association
Physician: doctor of medicine duly licensed to practice in the Philippines
Wages or Salary: computation of benefits means the monthly remuneration
Monthly Salary Credit: salary base for contributions
Coverage and Liability
Compulsory Coverage: State Insurance Fund shall be compulsory upon all employers and their employees not over 60 years of age, provided that an employee who is over 60 years of age and paying contributions to qualify for the retirement or life insurance benefit
Foreign Employment: shall ensure adequate coverage of Filipino employees employed abroad, subject to regulations as it may prescribe
Disability Benefits
Temporary Total Disability:
Who sustains an injury or contracts sickness resulting in temporary total disability, the daily income benefit shall not be less than 10 pesos nor more than 90 pesos, nor paid for a continuous period longer than 120 days.
The payment of such income benefit shall be in accordance with the regulations
Permanent Total Disability:
Employee who contracts sickness or sustains an injury resulting in his permanent total disability for each month until his death
The monthly income benefit shall be guaranteed for 5 years, and shall be suspended if the employees is gainfully employed or recovers from his permanent total disability or fails to present himself for examination at least once a year.
The following disabilities shall be deemed total and permanent:
Temporary total disability lasts for more than 120 days
Complete loss of sight of both eyes
Loss of two limbs at or above the ankle or wrist
Permanent complete paralysis of two limbs
Brain injury resulting in incurable or insanity
Such cases as determined by the Medical Doctor
The number of months of paid coverage shall be defined
Permanent Partial Disability:
Who contracts sickness or sustains an injury resulting to permanent partial injury
The benefit shall be paid for not more than the period designated in the following schedules: (Complete and permanent loss of the use)
One thumb (10 months)
One index finger (8 months)
One middle finger (6 months)
One ring finger (5 months)
One little finger (3 months)
One big toe (6 months)
One Toe (3 months)
One arm (50 months)
One hand (39 months)
One leg (46 months)
One ear (10 months)
Both ears (20 months)
Hearing of one ear (10 months)
Hearing of both ears (50 months)
Sight of one eye (25 months)
A loss of wrist shall be considered as a loss of the hand, and a loss of an elbow shall be considered as a loss of the arm. A loss of an ankle shall be considered as a loss of a foot, a loss of knee shall be considered as a loss of leg. A loss of more than one joint shall be considered as a loss of one half of the whole finger or toe. That such loss shall be either the functional loss of the use
In case of permanent partial disability less than the total loss of the member, the same monthly income benefit shall be paid for a portion of the period established for the total loss of the member
In the cases of loss of more than one member, the same monthly income benefit shall be paid for a period equivalent to the sum of the periods established for the loss of the member
In cases of illness resulting in a permanent partial disability not listed in the preceding schedule, the benefit shall be an income benefit equivalent to the percentage of the permanent loss of the capacity to work
The income benefit payable in case of permanent partial disability may be paid in monthly pension or in lump sum if the period covered does not exceed 1 year
Death Benefits
Death:
The System shall pay the primary beneficiaries upon the death of the covered employee. The amount is equivalent to his monthly income benefit plus 10% for each dependent child, but not exceeding to 5, beginning with the youngest. The monthly income benefit shall be guaranteed for 5 years
The System shall pay to the primary beneficiaries upon the death of a covered employee who is under permanent total disability, 80% of the monthly income benefit and his dependents to the dependent’s pension.
The monthly benefit shall be the new amount of the monthly income benefit for the surviving beneficiaries
Funeral Benefit: A funeral benefit of 3,000 pesos shall be paid upon the death of a covered employee or permanently totally disabled pensioner.
Provisions Common to Income Benefits
Relationship and Dependency: All questions of relationship and dependency shall be determined as of the time of death
Delinquent Contributions:
An employer who is delinquent in his contributions shall be liable to the System for the benefits which may have been paid by the System to his employees or their dependents.
Failure of refusal of the employer to pay or remit the contribution shall not prejudice the right of the employee or his dependents to the benefits
Second Injuries: If the employee under permanent partial disability suffers another injury which results in a compensable disability greater than the previous injury, the State Insurance Fund shall be liable for the income benefit of the new disability
Assignment of Benefits: No claim is transferable or liable to tax, attachment, garnishment, levy or seizure by or under legal process, either before or after receipt by the person, except to pay any debt of the employee to the System.
Earned Benefits: Income benefits shall be payable to an employee who is entitled to receive wages, salaries, or allowances for holidays, vacation or sick leaves and any other award of benefit under a collective bargaining or other agreement.
Safety Devices: In case of the employee’s injury or death due was due to the failure of the employer to comply with any law or to install and maintain safety devices, the employer shall pay the State Insurance Fund a penalty of 25% of the lump sum equivalent of the income benefit payable by the System to the employee
Prescriptive Period: No claim for