Amendments to Labor Code on Employee Compensation

Clarifies terms such as "Code," "Commission," "SSS," "GSIS," "Employer," "Employee," "Dependents," "Beneficiaries," "Injury," "Sickness," "Death," "Disability," and types of benefits.
Defines income benefit, medical benefit, related benefit, wages, monthly salary credit, and averages.

Compulsory coverage for all employers/employees under 60 years old; coverage also applies to employees over 60 under certain conditions.
Coverage for Filipino employees abroad regulated by the Commission.
Coverage begins from employer's operation and employee’s employment date.
Employers and employees must register with the System.
State Insurance Fund liable except in cases of intoxication, willful harm, negligence.
Liability of the State Insurance Fund exclusive, barring other claims against employers.

Creation of the Employees’ Compensation Commission with ex-officio and appointed members.
Commission powers include fixing contribution rates, approving rules, initiating health and safety programs, actuarial studies, staffing, budgeting, issuing subpoenas, suing, and other necessary acts.
Revenues managed similarly to SSS and GSIS funds with 12% disbursement cap for operational expenses.
Surplus funds form the State Insurance Fund, exclusively for benefit payments.
The System has original and exclusive jurisdiction over disputes; the Commission hears appeals.
Supreme Court reviews Commission decisions on questions of law.
Enforcement of decisions akin to court orders with power to punish noncompliance.

Employers pay contributions equal to 1% of monthly salary credit; rate subject to review.
Contributions paid solely by employers; deductions from employee wages are void.
Contributions end upon employee’s death, disability, or separation.
Government guarantees solvency of the State Insurance Fund with supplemental appropriations if needed.

System to provide medical services/appliances immediately after sickness/injury during disability.
System may choose/change medical providers; not liable for unauthorized employee changes.
Attending physicians must comply with regulations, submit reports, and medical information is not privileged.
Unreasonable refusal by employee to submit to medical examination/treatment stops benefit payments.
Fees for hospital services and supplies regulated; professional fees regulated but can be higher than certain prescribed amounts.
Rehabilitation services provided to restore physical independence and suitable employment.

Temporary total disability: 90% average daily salary credit after first 3 days of sickness, capped payments.
Permanent total disability: Income benefit computed based on salary credits and length of coverage, with caps and suspension conditions.
Specific disabilities defined as total and permanent (e.g., loss of limbs, blindness).
Permanent partial disability: Income benefits based on schedule of loss of specific body parts with time limits; proportionate payment for partial loss.

Primary beneficiaries receive monthly income benefit increased by 10% per dependent child (up to five), guaranteed for five years.
If no primary beneficiary, lump sum benefit paid.
Special provisions if death occurs under permanent total disability status.

Relationship and dependency determined at time of death.
Delinquent employers liable for benefits paid; lien on property for payment.
State Insurance Fund liable for new disabilities after prior disabilities with specific conditions.
Claims are non-transferable except debts owed to System.
Income benefits payable despite other wages or benefits for leave or awards.
Penalty imposed on employer for failure to observe safety measures leading to injury/death.
Claims must be filed within one year; notice to employer required.
Erroneous payments discharge System from liability unless notified by superior claimant.
No fees chargeable by agents/attorneys preparing claims; violations penalized by fines/imprisonment.
State Insurance Fund and assets exempt from taxes, levies, customs duties unless expressly stated by law.

Employers keep logbooks recording sickness, injury, death within 5 days; false or withheld information leads to penalties.
Notice of sickness, injury, or death must be given within 5 days; no notice required if employer already aware.
Penal provisions for fraud, falsification related to claims include fines, imprisonment, disqualification from professions, dismissal from government.

Title applies to contingencies occurring on or after January 1, 1975.
Medical care provisions implemented under relevant Republic Act.
Money claims from employer-employee relations barred if not filed within three years of cause of action.
Workmen’s compensation claims prior to Code’s effectivity have set filing deadlines.
Abolition of existing compensation offices after December 31, 1975; transfer of personnel to Department of Labor.
Pending cases transferred to appropriate labor relations bodies and processed under respective rules.
Articles of Labor Code renumbered for consistency.
Presidential Decree takes effect January 1, 1975.