SOCIAL LEGISLATION NOTES (Finals)
Atty. Ian Jerny De Leon
Use at your own risk.
SSS LAW
Interpretation: in favor of promoting, developing, and perfecting
a sound and viable tax-exempt social security system (SSS)
Policy of the State:
1. Establish, develop, promote, and perfect a sound and
viable tax-exempt SSS suitable to the needs of the
people throughout the Republic;
2. Promote social justice through savings; and
3. Ensure meaningful social security protection to members
and beneficiaries against disability, sickness, maternity,
old age, death, and other contingencies resulting to loss
of income.
- Social security protection to Filipino workers, local and
overseas, and beneficiaries
- Work, save, invest, prosper
Jurisdiction of the Social Security Commission (SSC):
[CBCP]
- Any dispute arising under the Social Security Act of 2018
pertaining to the coverage, benefits, contributions, and
penalties.
Finality of Decision: Fifteen (15) days after notification without
appeal
- Appeal: Questions of law and facts = CA; Law = SC
Effect of Appeal: does not stay the order of the SSC
XPN: Order from the SSC, CA, SC
Definition of Terms
Daverick Pacumio
UST Faculty of Civil Law
Employer:
- Any person, natural/juridical, who carries on in the
Philippines any trade, business, industry
- Uses the services of another who is under his/her orders
regarding the employment
- Does not include the Philippine government, and any of
its political subdivisions, branches or instrumentalities,
including corporations owned and controlled by the
government
- Self-employed (SE) members shall be deemed an
employer (ER) and an employee (EE) at the same time
Employee:
- Performs mental/physical service for an employer,
provided that there is an ER-EE relationship
- SE members shall be deemed an ER and an EE at the
same time
Dependents [SCP]:
a. Legal spouse entitled to support;
b. Legitimate, legitimated, legally adopted, illegitimate child
who is:
1. Unmarried;
2. Unemployed;
3. Not over 21
XPN: Congenitally/while still a minor been
permanently incapacitated of self-support
physically/mentally
NOTE: A child below 18 who is in a common-law
relationship shall be considered a dependent until the
time he reaches the age of 18
c. Parent who is receiving regular support from the member
Primary Beneficiaries:
a. Dependent spouse who has not married, cohabited,
entered into a common-law relationship before/after the
death of a member;
b. Dependent legitimate, legitimated, legally adopted, and
illegitimate children
o NOTE: The share of illegitimate children shall only
be 50% of the chare of the legitimate, legitimated,
and legally adopted children
Secondary Beneficiaries:
a. Dependent parents
b. Person designated/reported by the member
o NOTE: Must have a right to claim support from the
member under the Family Code
Contingency: Retirement; Death; Injury/Sickness; Maternity;
Unemployment/Involuntary Separation
Average Monthly Salary Credit (AMSC):
- The higher of:
a. Sum of the last 60 monthly salary credits (MSC)
immediately preceding the semester of contingency
divided by 60
b. Sum of the all the MSCs paid prior to the semester of
contingency divided by number of monthly
contributions
Semester: 2 consecutive quarters ending in the quarter of
contingency
Quarter: 3 consecutive calendar months ending on the last day
of March, June, September, and December
Compulsory Coverage:
1. ER and EE
- All EEs including domestic workers/Kasambahays who
are not over the age of 60 and their ERs
Rules on Private Benefit Plans: shall not be discontinued,
and shall be integrated into the SSS, subject to the following
rules:
a. ER contribution to private plan > SSS contributions = ER
pays to the SSS only that required of him and deduct the
same to the private plan contribution
b. ER and EE may agree to adopt plans over and beyond
that in the Social Security Act (SSA)
2. SE: [SPAPI]
a. SE professionals;
b. Partners and sole proprietors of businesses;
c. Actors/actresses, directors, scriptwriters, news
correspondents who are not EEs;
d. Professional athletes, coaches, trainers, jocks; and
e. Individual farmers and fisherfolk.
3. Voluntary Coverage: [SOSS]
a. Spouse who devotes full time to managing the household
and is NOT engaged in other vocation/employment;
b. OFW terminated from employment;
c. Separated EE who continues to pay; and
d. SE who realizes no income but continues to pay.
4. OFW Coverage: Mandatory upon all land-based and sea-
based who are not over 60
a. Sea-based:
Manning Agencies
- Any person, partnership, corporation licensed by DOLE
to recruit and place seafarers
- Agents of the principal and are considered as ERs of
sea-based OFWs
- Jointly and severally liable with the principals regarding
civil liabilities from violation of SSA
Principal
 - Employer/foreign placement agency hiring/engaging
Filipino workers for overseas employment
b. Land-based: considered as SE until a Bilateral Labor
Agreement (BLA) has been entered into
MSC for land-based OFW:
- Php 8,000.00
Changes in the MSC:
1. Initial contribution may be higher/lower than MSC at
the time of registration PROVIDED that the new MSC
is not lower than the minimum (Php 8,000.00)
2. If the land-based OFW member is below 55, he may
change the MSC without limit
3. If the land-based OFW member is 55 and above, he is
allowed to change only once a year and by 1 salary
bracket
XPN:
1. Change in membership type for the first time –
may change without limit
2. Higher maximum MSC
Effectivity of Coverage:
a. EE: First day of employment
b. SE: Upon registration
c. Sea-based OFW: First day of employment
d. Land-based OFW:
o If covered by a BLA, the provisions of the BLA
shall govern
o If not covered by a BLA, the applicable month and
year of first contribution payment
o NOTE: Voluntary coverage of land-based OFW
shall take effect on the applicable month and year
of first contribution payment
Effect of Separation
1. ER no longer obligated to pay
2. For voluntary members (VM):
a. For first time VMs, they may choose from existing
contributions schedule
b. For VMs 60 and above but below 65 with 120 monthly
contributions: may continue paying as VM until 65; 65
year-old member may continue until he makes 120
monthly contributions
Monthly Pension: Monthly cash amount given to
members/beneficiaries on account of permanent total disability;
retirement; death
Additional Benefit Allowance: Php 1,000.00 and does not
cover dependent’s pension
Dependent’s Pension:
- 10% of monthly pension or Php 250.00 whichever is
higher
- Paid to dependent children not exceeding 5
- Legitimate children are preferred
Retirement Benefit
- Monthly pension/lump sum
Entitlement:
1. Paid 120 monthly contributions prior to semester of
retirement (FULL BENEFIT);
2. 60 years old and is separated from employment or
ceased to be self-employed; or
3. 65 years old.
Advance pension: First 18 months + additional benefits
allowance in lump sum
- Conditions:
1. Exercised upon filing of initial retirement claim
2. Excludes dependent’s pension and 13 th month
pension
3. Increase subject to discounted rate
Lump Sum
- For a member who has reached retirement age and does
not qualify for full benefit
 - The member must have been separated from
employment and is not paying SSS contributions on
his/her own
Option to Continue Paying Contributions: for separated
employee with less than 120 monthly contributions – they may
continue paying as a VM
Suspension of Monthly Benefits:
1. Re-employment;
2. Resumption of self-employment.
NOTE: Upon reaching 65, the member may again claim
retirement benefit
Death:
- Primary beneficiaries receive 100% of the monthly
pension
- If there are no primary beneficiaries and member dies
within 60 months from the start of the monthly pension,
the secondary beneficiaries receive lump sum (5-year
guaranteed period) without dependent’s pension and
additional benefit allowance
- If there are no primary and secondary beneficiaries, the
lump sum forms part of the estate of the deceased
member
Amount of Monthly Pension for a Retiree After 60
1. Monthly pension at the earliest time member could have
retired had he/she been separated + all adjustments
2. Monthly pension computed at the time member actually
retires
Death Benefit
- Cash benefit either in monthly pension/lump sum
Entitlement:
1. Monthly pension: 36 monthly contributions before the
semester of death
o Received by the primary beneficiaries
2. Lump Sum: less than 36 monthly contributions before the
semester of death
o Higher of the following:
 Monthly pension x no. of monthly
contributions paid prior to the semester of
death
 12 x monthly pension
13th Month Pension: given to primary beneficiaries only
Suspension: Failure of primary beneficiary to report/present
himself/herself upon notice by the SSS
Permanent Disability Benefit
Permanent Total Disability (PTD): [CLPBO]
1. Complete blindness
2. Loss of 2 limbs at or above the ankle or wrists
3. Permanent complete paralysis of 2 limbs
4. Brain injury resulting to incurable insanity/imbecility
5. Other cases
Permanent Partial Disability (PPD):
Entitlement for Monthly Pension: 36 monthly contributions
paid prior to the semester of disability. Less than 36, he is only
entitled to lump sum
Lump Sum: for those who paid less than 36 monthly
contributions prior to the semester of disability
a. PTD: higher of the following:
i. Monthly pension x monthly contributions
ii. 12 x monthly pension
b. PPD: Percentage of lump sum described in the SSA
13th Month Pension: Payable every December
Deemed Paid Contributions: Contributions for months where
member received partial disability pension are deemed paid for
purposes of adjudicating retirement, death, and PTD benefits
Suspension:
1. Re-employment;
2. Recovery; and
3. Failure to report or present oneself for examination at
least once a year upon notice by the SSS
Re-employment, Resumption of Self-Employment,
Recovery from PTD:
a. PTD lump sum recipient who was re-employed not earlier
than 1 year from the date of disability shall again be
subject to compulsory coverage
b. PTD pensioner for 60 months and has recovered loses
entitlement to 5-year guaranteed period for retirement
benefit. The 5-year guaranteed pension payment is
granted only once.
Death of PTD:
1. Primary beneficiaries are entitled to 100% monthly
pension;
2. No primary beneficiaries and dies within 60 months from
the start of the monthly pension = the secondary
beneficiaries are entitled to lump sum (5-year guaranteed
period) without dependent’s pension, additional benefit
allowance, and supplemental disability allowance;
3. No primary and secondary beneficiaries = lump sum
forms part of the estate
Funeral Benefits
- Php 20,000.00-Php 40,000.00 depending on no. of
contributions and AMSC
Sickness Benefits
- Daily cash allowance paid by:
a. ER to member who is unable to work due to sickness;
and
b. SSS to unemployed, SE, OFW, VM who was
previously employed/SE/OFW/Non-working spouse
(NW Spouse)
Entitlement: [3-4-NU]
1. 3 monthly contributions within 12-month period
immediately preceding the semester of sickness/injury;
2. Confined for at least 4 days;
3. Notified the employer/SSS; and
4. Used up all current company sick leave with pay.
Notification Requirement:
- Hospital Confinement - not necessary BUT ER must
notify SSS within 1 year from discharge
- Confinement elsewhere – EE notifies ER within 5 days
after start of confinement; ER notifies SSS within 5 days
- Sickness/injury in workplace – not necessary BUT ER
must notify SSS within 5 days
- Unemployed/SE/Land-based OFW/VM including NW
Spouse – must notify SSS within 5 days
XPN: Hospital/Confinement elsewhere – 1 year from
discharge
Amount of Benefit: 90% average daily salary credit (ADSC)
Guidelines for grant:
1. Maximum sickness benefit of 120 days/year
2. 240 days for same illness/confinement
3. Unused portion of 120 days may not be carried over
4. Payment by employer every 15 th and last day of the
month
5. 100% reimbursement to ER provided:
a. ER notified SSS of confinement;
b. SSS reimburses ER/unemployed for 1 year preceding
the date the claim for reimbursement was received
6. If ER notifies the SSS beyond 5 days from the day the EE
notifies him, the ER is reimbursed only for each day of
confinement starting from the 10 th day preceding the date
of notification to the SSS
7. If the failure to notify on the part of the ER resulted to
reduction of benefit/claim due the EE, the ER shall not be
entitled to reimbursement
8. Claim for reimbursement shall be adjudicated within 2
months from receipt
- If no payment was received within 1 month after
adjudication, reimbursement earns 1% interest per month
until paid
9. When start of sickness confinement falls on semester
where member will not qualify for sickness benefits,
confinement period shall be shortened in such a way that
 the 1st day shall be adjusted to period where he/she is
qualified
10. Sickness & disability benefits may be availed
simultaneously PROVIDED:
a. They are unrelated; and
b. Member is qualified for both
Maternity Leave Benefits
- Daily cash allowance granted to female members who
gave birth normally/caesarian/miscarriage, regardless of
civil status, legitimacy of the child
Entitlement:
1. 3 monthly contributions within 12 moths immediately
preceding childbirth
2. Notified the ER of the expected date of delivery which
must be transmitted to SSS
3. Unemployed/SE/VM/OFW/NW Spouse must notify SSS
NOTE: Failure to notify shall not bar member from receiving
benefit if she confined herself in DOH-accredited/licensed
hospitals/clinics
Amount of cash allowance: 100% ADSC for 105 days1
Limits:
- Benefit is applicable for the first four (4) deliveries only
- Member cannot recover Sickness Benefits and Maternity
Benefits simultaneously
Manner of Payment:
1. Full payment shall be advanced by ER within 30 days
from the filing of the application
2. SSS shall reimburse ER 100% upon receipt of
satisfactory proof of payment
3. SSS pays directly the member whose contingency
occurred while she’s employed but who is currently
unemployed, temporarily laid-off, or while her company is
on lock-out/strike
1
Pursuant to the new Maternity Leave law, the compensable period is 105
days regardless of the manner of delivery.
4. SSS pays SE/Unemployed/VM/NW Spouse/OFW
member
Prescription: 10 years from delivery/miscarriage
Unemployment Insurance/Involuntary Separation Benefit
- Monthly cash payment
- 50% of AMSC for 2 months at the maximum
Entitlement:
1. Not over 60 years old;
2. Has paid 36 monthly contributions, 12 months of which
must be paid within 18 months immediately preceding the
semester of contingency;
3. Involuntarily separated from employment.
Limit: Once every 3 years
Overlapping Benefits: Higher benefit shall prevail
Prescriptive Period: 1 year from separation/unemployment
Punishable Acts
1. False Statement, Representation, Affidavit/Document
2. Fraudulent Acquisition/Receipt of Money/Check
3. Unauthorized purchase, sale, use, transfer, exchange, or
pledge of stamps, coupons, etc.
4. Fraudulent alteration, forgery, counterfeiting
5. Failure/refusal to register employees/SE
6. Failure/refusal to deduct contributions
7. SSS employee’s misappropriation/appropriation of funds
8. Employer’s misappropriation of contributions
PORTABILITY LAW
Coverage: All workers of the Government Service Insurance
System and/or SSS who transfer from one sector to another,
who wish to retain their membership in both systems
Interpretation: Nothing in the law shall be construed to diminish
or reduce the benefits being enjoyed by a cover worker arising
from existing laws, issuances and company policies or practices
or agreements between the employer and the employees and
any conflicting interpretation of the law and the implementing
rules and regulations shall be resolved in favor of the workers.
Portability: transfer of funds for the account and benefit of a
worker who transfers from one system to another
Totalization: adding up the period of creditable services or
periods of contributions under each of the systems, for purposes
of eligibility and computation of benefits.
Applicability. – Totalization shall apply in the following
instances:
1. If a worker is not qualified for any benefits from both
systems;
2. If a worker in the public sector is not qualified for any
benefits in the GSIS;
3. If a worker in the private sector is not qualified for any
benefits in the SSS
NOTES:
1. If after totalization, the worker-member still fails to qualify,
the member will get whatever benefits correspond to
his/her contributions in either/both systems
2. If a worker qualifies for benefits in both systems,
totalization shall not apply
3. Overlapping of periods of creditable services or
contributions in both systems shall be credited only once
for purposes of totalization
Creditable Services: for the public sector, the following shall be
considered creditable services:
1. All previous services rendered by an official/employee
pursuant to an appointment whether permanent,
provisional or temporary.
2. 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;
3. The period during which an official/employee was on
authorized sick leave of absence without pay not
exceeding one year;
4. 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
5. All previous services with compensation or salary
rendered by elective officials.
Period of Contribution: for the private sector, the periods of
contribution shall refer to the periods during which a person
renders services for an employer with compensation or salary
and during which contributions were paid to SSS. A self‐
employed person shall be considered an employee and
employer at the same time.
GSIS LAW
Purpose for the Enactment of GSIS Law [CORD-D]
- To provide and administer the following benefits to
government EEs, viz:
1. Compulsory life insurance;
2. Optional life insurance;
3. Retirement benefits;
4. Disability benefits to work-related contingencies; and
5. Death benefits.
Definitions
Employer:
a. National government;
b. Political subdivisions, agencies, branches,
instrumentalities;
c. GOCCs and financial institutions with original charters;
d. Constitutional Commissions and the Judiciary

Employee/Member: any person receiving compensation while
in the service of an ER, whether by election or appointment,
irrespective of status and appointment, including barangay and
sanggunian officials
Compensation: basic pay or salary received by EE excluding
per diems, bonuses, OT pay, honoraria, allowances, and any
other emoluments received in addition to basic pay which are
not integrated into the basic pay under existing laws
Reportorial Requirements of ER
- ER must report to the GSIS the names, employment
status, positions, and salaries of EE and such other
matters as determined by the GSIS
Penalty in case of delayed remittance or non-remittance of
contributions
- Unremitted contributions shall be charged interests which
shall not be less than 2% of simple interest per month
from due date to the date of payment
Q: May a member enjoy the benefits provided for in the Revised
GSIS Act simultaneous with similar benefits provided under
other laws for the same contingency?
A: Whenever other laws provide similar benefits for the same
contingencies covered by this Act, the member who qualifies to
the benefits shall have the option to choose which benefits will
be paid to him. However, if the benefits provided by the law
chosen are less than the benefits provided under this Act, the
GSIS shall pay only the difference.
Compulsory Coverage
1. All EEs who have not reached the compulsory retirement
age, irrespective of employment status
XPNs:
1. Uniformed personnel of:
a. The AFP; and
b. PNP.
2. Contractual EEs who have no ER-EE relationship
with the agencies they serve.
2. Members of the Judiciary and the Constitutional
Commissions for life insurance policy.
Compulsory Coverage of Life Insurance
General Rule: All EEs receiving compensation who have not
reached the compulsory retirement age, irrespective of
employment status
XPN: All members of the Armed Forces of the Philippines (AFP)
and the Philippine National Police (PNP).
NOTE: 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:
a. An elective official who at the time of election to public
office is below 65 years of age and will be 65 years or
more at the end of his term of office, including the
period/s of his re-election to public office thereafter
without interruption.
b. 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
age beyond 65.
c. 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 for purposes of benefit
entitlement
1. Active members
 - Still in the service and are paying integrated premiums;
Covered for the entire package benefits and privileges
being extended by GSIS
2. Policyholders
- Covered for life insurance only
- Can avail of policy loan privilege only
- May also apply for housing loans
- Judiciary and other Constitutional Commissions
3. Retired members
- Former active members who have retired from the
service and are already enjoying the corresponding
retirement benefits applied for
- Not entitled to any loan privilege, except stock purchase
loan
Exclusions from coverage [SCAP]
1. EEs who have separate retirement schemes (members
of the Judiciary, Constitutional Commissions and others
who are similarly situated);
2. Contractual EEs who have no ER-EE relationship with
the agencies they serve;
3. Uniformed members of the AFP, BJMP; and
4. Uniformed members of the PNP.
Benefits under the GSIS law [SURP-TS-FLO]
1. Separation
2. Unemployment or involuntary separation
3. Retirement
4. Permanent disability
5. Temporary disability
6. Survivorship
7. Funeral
8. Life Insurance
9. Such other benefits and protection as may be extended
to them by the GSIS such as loans.
Separation Benefits
Entitlement:
- Member who has rendered service at a minimum of 3
years under the following terms:
1. Member with at least 3 years but less than 15 years –
cash payment equivalent to 100% average monthly
compensation for every year of service the member
has paid contributions:
a. Not less than Php 12,000.00;
b. Payable upon reaching 60 years of age or upon
separation, whichever comes later
2. Member with less than 15 years of service and less
than 60 years of age at the time of resignation or
separation:
a. Cash payment equivalent to 18 times the basic
monthly pension (BMP), payable at the time of
resignation or separation;
b. An old-age pension benefit equal to the BMP, payable
monthly for life upon reaching the age of 60.
Effects of separation with regard to membership
- A member separated from service shall continue to be a
member and shall be entitled to whatever benefits he has
qualified to (once a member, always a member)
Unemployment Benefits
- Cash payment equivalent to 50% of the average monthly
compensation
- NOTE: A member who has rendered at least 15 years of
service shall be entitled to separation benefits instead of
unemployment benefits
Entitlement: [PIP]
1. Recipient must be a permanent EE at the time of
separation;
2. Separation was involuntary due to the abolition of his
office or position resulting from reorganization;
3. Paying the contribution for at least 1 year prior to
separation.
Retirement Benefits
Entitlement: [15-60-Not]
1. EE must have rendered at least 15 years of service;
2. He is at least 60 years of age at the time of retirement;
and
3. He is not receiving a monthly pension benefit from
permanent total disability.
Options to the retiree with regard to his retirement benefits
1. Lump sum equivalent to 6 months of the basic
monthly pension (BMP) payable at the time of
retirement plus old age pension benefit equivalent to
BMP payable for life, starting upon the expiration of the 5
years covered by the lump sum; or
2. Cash payment equivalent to 18 times his BMP plus
monthly pension for life payable immediately.
NOTE: The head of the government agency concerned is
vested with discretionary authority to allow or disallow extension
of the service of an official or EE who has reached 65 years old
without completing the 15 years of government service.
Permanent Disability Benefits
Disability: 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.
Total Disability: Complete incapacity to continue with present
employment or engage in any gainful occupation due to the loss
or impairment of the normal functions of the physical and/or
mental faculties of the member.
Types of Permanent Disabilities
1. Permanent Total Disability (PTD) - Accrues or arises
when recovery from any loss or impairment of the
normal functions of the physical and/or mental faculty of a
member which reduces or eliminates his capacity to
continue with his current gainful occupation or engage in
any other gainful occupation is medically remote.
Examples: [CLPBO]
1. Complete blindness
2. Loss of 2 limbs at or above the ankle or wrists
3. Permanent complete paralysis of 2 limbs
4. Brain injury resulting to incurable insanity/imbecility
5. Other cases
2. Permanent Partial Disability (PPD) - Accrues or arises
upon the irrevocable loss or impairment of certain
portion/s of the physical faculties, despite which the
member is able to pursue a gainful occupation.
Examples:
1. Complete and permanent loss of the use of:
1. Any finger
2. Any toe
3. One arm
4. One hand
5. One foot
6. One leg
7. One or both ears
8. Hearing of one or both ears
9. Sight of one eye
2. Such other cases as may be determined by the GSIS.
Benefits for Permanent Total Disability
1. Monthly income benefit for life equivalent to BMP
Entitlements:
1. Member is in the service at the time of disability; or
2. If separated from service:
a. He has paid at least 36 monthly contributions
within 5 years immediately preceding his disability;
b. He has paid a total of at least 180 monthly
contribution prior his disability;
 c. He is not receiving old-age retirement pension
benefits.
NOTE: A member cannot enjoy the monthly income benefit for
permanent disability and the old-age retirement simultaneously.
2. Cash payment equivalent to 100% of average monthly
compensation for each year of service he has paid
contributions but not less than Php 12,000.00
- If he fails to satisfy the abovementioned conditions for
entitlement
Benefits for Permanent Partial Disability
- 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).
Suspension of Payment of Benefits
1. Re-employment;
2. Recovery; and
3. Failure to present himself for medical examination
when required by the GSIS
When recovery is precluded
1. Grave misconduct;
2. Notorious negligence;
3. Habitual intoxication;
4. Willful intent to kill himself or another
Temporary Disability Benefits
Temporary total disability: when the impaired physical and/or
mental faculties can be rehabilitated and/or restored to their
normal functions
NOTE: A member cannot enjoy the temporary total disability
benefit and sick leave pay simultaneously.
Benefits for Temporary Disability
1. 75% of his current daily compensation for each day
or fraction thereof of total disability benefit, to start at
the 4th day but not exceeding 120 days in one
calendar year
o In no case shall the benefit be less than Php 70.00
a day
Entitlements:
a. Exhausted all sick leaves;
b. CBA sick leave benefits;
Provided, that:
o He was in the service at the time of his disability;
or
o If separated, he has rendered at least 3 years of
service and has paid at least 6 monthly
contributions in the year preceding his disability
NOTE: An application for disability must be filed with the GSIS
within 4 years from the date of the occurrence of the
contingency.
Survivorship Benefits
- Basic survivorship pension which is 50% of the BMP; and
- Dependent children’s pension not exceeding 50% of the
BMP
Conditions for primary beneficiaries to be entitled to BMP
1. For Survivorship Pension
Entitlements:
a. Was in the service at the time of his death; or
b. If separated from service, has rendered at least 3
years of service; and
c. 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.
2. For Survivorship Pension plus a cash payment
equivalent to 100% of his average monthly
compensation for every year of service
 Entitlements:
a. Deceased was in the service at the time of his death;
and
b. Has at least 3 years of service
3. Cash payment equivalent to 100% of his average
monthly compensation for each year of service he
paid contributions, but not less than Php 12,000.00
Entitlements:
a. Deceased has rendered at least 3 years of service at
the time of his death; and
b. Does not qualify under numbers (1) and (2) above
Secondary Beneficiaries
In the absence of primary beneficiaries, the secondary
beneficiaries shall be entitled to:
1. The cash payment equivalent to 100% of his average
monthly compensation for each year of service he paid
contributions, but not less than Php 12,000.00 –
Provided, That the member is in the service at the time of
his death and has at least 3 years of service; or
2. In the absence of secondary beneficiaries, the benefits
under this paragraph shall be paid to his legal heir.
Payment of Survivorship Pension
After the end of the guaranteed 30 months, the beneficiaries are
still entitled to survivorship benefits. The survivorship pension
shall be paid as follows:
1. When the dependent spouse is the only survivor, he/she
shall receive the basic survivorship pension for life or until
he or she remarries;
2. When only dependent children are the survivors, they
shall be entitled to the basic survivorship pension for as
long as they are qualified, plus the dependent children’s
pension equivalent to 10% of the basic monthly pension
for every dependent child not exceeding 5, counted from
the youngest and without substitution;
3. When the survivors are the dependent spouse and the
dependent children, the dependent spouse shall receive
the basic survivorship pension for life or until he/she
remarries, and the dependent children shall receive the
dependent children’s pension.
Benefits that the beneficiaries are entitled to upon the death
of the pensioner
1. Upon the death of an old-age pensioner or a permanent
disability pensioner, the qualified beneficiaries shall
receive the survivorship pension
2. When the pensioner dies within the period covered by the
lump sum, the survivorship pension shall be paid only
after the expiration of such period
Funeral Benefits
- Php 20,000.00
Payable to:
1. Legitimate spouse;
2. Legitimate child who spent for the funeral services; or
3. Any other person who can show unquestionable proof
that he has borne the funeral expenses of the deceased.
Payment of Funeral Benefits
Upon the death of:
1. An active member;
2. A member who has been separated from the service but
is entitled to future separation or retirement benefits;
3. A member who is a pensioner (excluding survivorship
pensioners); and
4. A retiree who is at the time of his retirement was of
pensionable age, at least 60 years old, who opted to
retire under RA 1616.
Life Insurance
Kinds of life insurance:
1. Compulsory life insurance;
 2. Optional life insurance. 2. Secondary Beneficiaries
a. Dependent parents;
Compulsory life insurance coverage: b. Legitimate descendants, subject to restrictions on
All EEs including the members of the Judiciary and the dependent children
Constitutional Commissioners except for Members of the AFP, Dependents
the PNP, BFP and BJMP, shall, under such terms and 1. Legitimate spouse dependent for support upon the
conditions as may be promulgated by the GSIS, be compulsorily member or pensioner;
covered with life insurance, which shall automatically take effect 2. Legitimate, legitimated, legally adopted child, including
as follows: the illegitimate child;
1. Those employed after the effectivity of this Act, their 3. An EE over 60 years of age if he had been paying
insurance shall take effect on the date of their contributions to the System prior to age 60 and has not
employment; been compulsory retired.
2. For those whose insurance will mature after the effectivity
of this Act, their insurance shall be deemed renewed on Prescriptive period to claim benefits
the day following the maturity or expiry date of their GR: 4 years from the date of contingency
insurance; XPN: Life insurance and retirement
3. For those without any life insurance as of the effectivity of
this Act, their insurance shall take effect following said EMPLOYEES COMPENSATION AND STATE INSURANCE
effectivity. FUND

Optional life insurance coverage Philosophy behind workmen’s compensation

1. A member may at any time apply for himself and/or his - To require the industry to pay for the damage it causes.
dependents an insurance and/or pre-need coverage - To secure workmen and their dependents against
embracing: becoming objects of charity, by making a reasonable
1. Life compensation for injuries incident to employment
2. Memorial plans Principle of Social Security
3. Health - The Employees’ Compensation Commission (the
4. Education Commission) administers and settles claims from a fund
5. Hospitalization under its exclusive control. The employer does not
6. Other plans as maybe designed by GSIS intervene in the compensation process and it has no
2. Any EE may apply for group insurance coverage for its control over payment of benefits.
EEs.
Definitions
Beneficiaries Injury: any harmful change in the human organism from any
1. Primary Beneficiaries accident arising out of and in the course of employment
a. Legal and dependent spouse until he/she remarries; Sickness: any illness definitely accepted as an occupational
b. Dependent children disease listed by the Commission or any illness caused by
employment, subject to proof that the risk of contracting the
same is increased by working conditions.
Compulsory Coverage:
a. Employers: belonging to the public or private sector
b. Employees: all employees not over 60 years old.
Employees over 60 years shall be covered if he has been
paying contributions prior to the age of 60 and has not
been compulsorily retired
Effectivity date of coverage:
a. For ERs: first day of operation but not earlier than 01
January 1975;
b. For EEs: first day of employment
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:
1. The EEs’ intoxication;
2. Willful intention to injure or kill himself or another; or
3. Notorious negligence
Compensable Sickness: any illness listed as an occupational
disease by the Commission or any illness caused by
employment, subject to proof that the risk of contracting the
same is increased by working conditions. This is known as the
theory of increased risk.
Occupational Disease: one which results from the nature of
the employment and by nature is meant conditions to which all
employees of a class are subject and which produce the
disease as a natural incident of a particular occupation.
Conditions for compensability: [POE]
1. The employee must have been injured at the place where
his work requires him to be;
2. The employee must have been performing his official
functions; and
3. If the injury was sustained elsewhere, the employee must
have been executing an order for the employer.
Examples of compensable injuries: [PSMG-ARBE]
(a) Peculiar risks;
(b) Street perils;
(c) Acts of ministration (Personal Comfort doctrine);
(d) Acts of God;
(e) Assaults;
(f) Recreational activities;
(g) Acts for the benefit of the employer; and
(h) Acts during emergency.
“Coming and going” rule
- An injury or accident sustained by an employee while
using the public streets and highways in going to or
returning from the place of employment is not
compensable.
- The rationale for this rule is that the employer is not an
insurer against all accidental injuries which might happen
to an employee while in the course of employment
- XPNs to the rule:
a. Where the employee is proceeding to or from his
work on the premises of the employer;
b. Where the employee is about to enter or about to
leave the premises of his employer by using the
customary means of ingress and egress;
c. Where the employee is charged, while on his way
to or from his place of employment or at his home,
or during his employment, with some duty or
special errand connected with his employment;
and
d. Where the employer, as an incident, provides the
means of transportation to and from the place of
employment.
Exclusiveness of liability of the State Insurance Fund
 - Whenever other laws provide similar benefits for the
same contingency, the employee who qualifies for the
benefits shall have the option to choose the law under
which the benefits will be paid to him. If the law chosen
provides for benefits lesser than those provided by the
Labor Code, he shall be entitled only to the difference.
Liabilities of third parties
- In case the injury or death is caused by circumstances
creating a legal liability against a third party other than
the employer, the injured employee or his dependents
may either claim compensation from the system under
the Labor Code, or sue for damages in accordance with
law.
- In case the benefit is paid by the System, the latter is
subrogated to the rights of the injured employee or his
dependents in accordance with the general law.
- Where the System recovers from such third party
damages in excess of those paid or allowed under Title II,
Book IV of the Labor Code, such excess shall be
delivered to the injured employee or another person
entitled thereto, after deduction of the expenses of the
System and the cost of the proceedings.
Employer’s contribution:
a. For a covered employee in the public sector, his
employer shall remit to the GSIS a monthly contribution
equal to 1% of the actual wages or salary received as of
the last day of the month;
b. For a covered employee in the private sector, his
employer shall remit to the SSS a monthly contribution
equal to 1% of his monthly salary credit as of the last day
of the month
Effect of Death/Separation:
- Employer’s obligation to pay the monthly contribution
shall cease on the last day of the month of contingency
Medical Services
Conditions: [RIN]
1. EE has been duly reported to the System;
2. EE sustains an injury or contracts sickness; and
3. The System has been duly notified of the injury or
sickness.
Temporary Total Disability
Period of entitlement:
- If caused by an injury or sickness, it shall not be paid
longer than 120 consecutive days
- Where such injury or sickness still required medical
attendance beyond 120 days, such shall not exceed 240
days from the onset of disability
Suspension of income benefit:
- If the employee fails to submit a monthly medical report
certified by his attending physician
Permanent Total Disability
Period of entitlement:
- All compensable months of disability
- Guaranteed period: The monthly income benefit is
guaranteed for five (5) years
Suspension of income benefit [EQRE]
1. Failure of the employee to present himself for
examination at least once a year upon notice by the
System;
2. Failure to submit a quarterly medical report certified by
the attending physician;
3. Complete or full recovery from his permanent disability;
or
4. Upon being gainfully employed.
Amount of benefit for dependent children
- Each dependent child, not exceeding five (5) counted
from the youngest and without substitution, shall be
 entitled to 10% of the monthly income benefit of the
employee

Permanent Partial Disability

Amount of benefit
- If the number of months for payment of income benefit for
permanent partial disability exceeds 12 months, the
income benefit shall be paid in monthly pension.
- If the number of months for payment of income benefit for
permanent partial disability is less than 12 months, the
income benefit shall be in lump sum.