Title
Amendments to Employees' Compensation Benefits
Law
Presidential Decree No. 1368
Decision Date
May 1, 1978
Amendments to the Labor Code of the Philippines aim to enhance benefits for covered employees by utilizing surplus funds, expanding definitions of injury and sickness, introducing new terms, and empowering the Employees' Compensation Commission to initiate policies and programs for occupational health and safety.
A

Questions (PRESIDENTIAL DECREE NO. 1368)

Injury means any harmful change in the human organism from any accident sustained at work while at the workplace, or elsewhere while executing an order for the employer.

Sickness means any illness definitely accepted as an occupational 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.

It is the result obtained by dividing the sum of the monthly salary credits in the sixty-month period immediately preceding the semester of death or permanent disability by sixty, with exceptions if death or disability occurs within eighteen calendar months from coverage.

Basic Benefit is 115% of the computed benefit based on specified percentages of the average monthly salary credit in defined brackets plus increments for coverage exceeding 120 months.

Graduated increment is 7.7% of the difference between 340 pesos and the basic benefit, subject to a minimum of 10 pesos.

The monthly income benefit equals 115% of the sum of the basic benefit and the graduated increment, with the amount not to be less than the SSS minimum or more than the monthly salary credit.

The presence of four members constitutes a quorum.

The Commission is considered a government corporation attached to the Department of Labor for policy coordination and guidance.

It is paid for up to 120 continuous days, with daily income benefits not less than 2.50 pesos and not more than 20 pesos per day.

The monthly income benefit is guaranteed for five years, subject to suspension if the employee recovers, is gainfully employed, or fails to present for annual examination.

Benefits are paid for a certain number of months based on the specific loss (e.g., loss of thumb, finger, arm) as per a fixed schedule or based on percentage loss of capacity for unspecified injuries, payable monthly or in lump sum.

Primary beneficiaries receive a monthly income benefit plus additional amounts for dependent children, guaranteed for five years. If there are no primary beneficiaries, secondary beneficiaries receive a lump sum equal to 35 times the monthly income benefit.

All laws, Presidential Decrees, and Letters of Instructions inconsistent or contrary to this decree are repealed, with special provisions for GSIS entitlements governed by the Labor Code formulas plus 15%.

It took effect on May 1, 1978.


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