Law Summary
Income Benefits for Temporary Total Disability
- Article 190 (a) amended to provide income benefits under regulations approved by the Commission.
- Employees with temporary total disability receive 90% of their average daily salary credit per day.
- Daily income benefit shall not be less than P2.50 nor more than P16.
- Benefit payments are limited to a continuous period of 120 days.
- The System must be notified of the injury or sickness.
Income Benefits for Permanent Total Disability
- Article 191 (a) amended to specify monthly income benefits for permanent total disability.
- Benefits paid monthly for each month of disability up to, but not exceeding, five years.
- Income benefit is 115% of the basic benefit, computed as:
- 45% of the first P300 of the average monthly salary credit,
- 25% of the next P300,
- 9% of each succeeding P100,
- 0.1% for each month of paid coverage beyond 120 months.
- Minimum monthly income benefit is P45.
Death Benefits for Covered Employees
- Article 193 amended with detailed provisions:
- (a) For death of covered employee, primary beneficiaries receive a monthly income benefit equivalent to that for permanent total disability plus 10% of the basic benefit for each dependent child (up to 5), starting with the youngest without substitution.
- Monthly payment capped to maximum of five years; permanent total disability portion guaranteed for 5 years.
- Total payments shall not exceed P12,000.
- If no primary beneficiaries exist, secondary beneficiaries receive a lump sum lesser of 35 times the monthly income benefit or P6,000.
- (b) For death of a covered employee under permanent total disability:
- Primary beneficiaries receive monthly income benefit plus 10% for each dependent child as above.
- Payments shall not exceed the remaining guaranteed period or P12,000 total since disability.
- If no primary beneficiary, secondary beneficiaries receive the balance of income benefit, capped as above.
Integration and Repeal
- This Decree amends and forms part of the Labor Code of the Philippines.
- All provisions of existing laws, orders, decrees, rules, and regulations inconsistent with this Decree are repealed.
- The Decree took effect immediately upon issuance.