FURTHER AMENDING CERTAIN PROVISIONS OF TITLE II, BOOK IV OF THE LABOR CODE OF THE PHILIPPINES

WHEREAS, the Employee’s Compensation Commission in pursuance
its objectives to achieve labor justice for victim of employment-related
contingencies, must constantly keen pace with and remain responsive to
challenges of emerging concepts of employees compensation in particular and
social security in general, and the changing patterns of social and economic
development;

WHEREAS, as a result of discussions and consultations with
the GSIS and PMCC, it is necessary to harmonize simplify and correlate
provisions of the Labor Code of the Philippines with other laws, decrees and
issuances administered and implemented by administering agencies of the
Employees’ Compensation Program;

WHEREAS, the present economic crisis requires the Government
to institute emergency and extraordinary measures toward providing further
protection and financial relief to workers and their families, to help mitigate
the harsh effects of inflation on their living expenses; and

WHEREAS, Through judicious management of the State Insurance
Fund that the Social Security System and the Government Service Insurance System
administer for the private sector and the public service, respectively, the Fund
has accumulated enough reserves to enlarge the benefit structure of covered
employees without the need for additional premium contributions from
employers.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Republic of the Philippines, by virtue of the powers vested in me by law and the
Constitution, do hereby order and decree:

SECTION 1. Paragraph (i), (j), (k), and (ee) of Article 167
of the Labor Code of the Philippines (PD 442, Amended) are hereby amended
further to read as follows:

‘Article 167. Definition of Terms.—As used in this
Title, unless the context indicates otherwise:

“(i) ‘Dependents’ means the legitimate, legitimated, legally adopted or
acknowledged natural child who is unmarried, not gainfully employed, and not
over twenty-one years of age or over twenty-one years of age provided he is
incapable of self-support due to a physical or mental defect which is congenital
or acquired during minority; the legitimate spouse living with the employees;
and the parents of said employee wholly dependent upon him for regular
support.”

“(j) ‘Beneficiaries’ means the dependent spouse until he remarries and
dependent children, who are the primary beneficiaries. In their absence, the
dependent parents and, subject to the restrictions imposed on dependent children
and legitimate descendents who are the secondary beneficiaries.. Provided, that
the dependent acknowledged natural child shall be considered a primary
beneficiary when there are no other dependent children who are qualified and
eligible for monthly income benefit.”

“(k) ‘Injuny’ means any harmful change in the human organism from any
accident arising out of and in the course of the employment.”

“(ee) ‘Monthly income benefit’ means the amount equivalent to one hundred
fifteen percent of the sum of:

“The average monthly salary credit multiplied by the replacement ratio;
and

“One and a half percent of the average monthly salary credit for each
credited year of service in excess of ten years;

“Provided, That the monthly income benefit shall in no case be less than Two
Hundred Fifty pesos. Sec. 2. Article 173 of PD 442, as Amended is hereby amended
further to read as follows:

“Article 173. Extent of liability. Unless otherwise
provided, the liability of the State Insurance Fund under this Title shall be
exclusive and in place of all other liabilities of the employer to the employee
or his dependents or anyone otherwise entitled to recover damages on behalf of
the employee or his dependents. The payment of compensation under this Title
shall not bar the recovery of benefits as provided for in Section 699 of the
Revised Administrative Code, Republic Act numbered eleven hundred sixty-one, as
amended, Republic Act numbered six hundred ten, as amended, Republic Act
numbered forty-eight hundred sixty-four, as amended, and other laws whose
benefits are administered by the System or by other agencies of the
government.”

SEC. 3. Paragraph (g) of Art. 177 of PD 442, as Amended are
hereby amended further to read as follows:

”Article 177. Powers and duties.— x x x x x x

“(g) To adopt annually a budget of expenditures of the Commission and its
staff chargeable against the State Insurance Fund: Provided, that the SSS and
GS’IS shall advance on a quarter basis the remittances of allotment of the
loading fund for the commission’s operational expenses based on its annual
budget duly approved by the Ministry of the Budget and
Management.”

SEC. 4. Paragraphs (a), (b), and (d), of Art. 194 of PD 44
Amended, are hereby amended further to read as follows:

“Article 194. Death.—Under such regulations as the
Commission may approve, the System shall pay to the primary-beneficiaries upon
the death of the covered employee under the Title an amount equivalent to his
monthly income benefit, plus ten percent thereof for each dependent child, but
not exceeding five, beginning with the youngest and without substitution except
provided for in paragraph (j) of Article 167, hereof: Provided However, That the
monthly income benefit shall be guaranteed for five years: Provided, Further,
That if he has no primary beneficiary, the System shall pay to his secondary
beneficiaries the monthly income benefit but not to exceed sixty months.
Provided, Finally, That the minimum death benefit shall not be less than Fifteen
thousand Pesos;

“(b) Under such regulations as the Commission may approve, the System shall
pay to the primary beneficiaries upon the death of a covered employee who is
under permanent total disability under this Title, eighty percent of the monthly
income benefit and his dependents to the dependents’ pension: Provided, That the
marriage must have been validly subsisting at the time of disability: Provided,
Further, That if he has no primary beneficiaries, the System shall pay to his
secondary beneficiaries the monthly pension excluding the dependent’s pension,
of the remaining balance of the five-year guaranteed period: Provided, Finally,
That the minimum death benefit shall be less than fifteen thousand pesos.”

“(d) Funeral Benefit. A funeral benefit of One Thousand five Hundred Pesos
shall be paid upon the death of a covered employee or permanently totally
disabled pensioner.

SEC. 5. Art. 201 of PD 442, as Amended, is hereby amended
further to read as follows:

“Article 201. Prescriptive Period. No claim for Compensation
shall be given due course unless said claim is filed with the System within
three year3 from the time the cause of action accrued.”

SEC. 6. Repeal of laws. All laws, decrees, letters of
instructions and executive orders inconsistent with, or contrary to this Decree
are hereby repealed.

SEC. 7. Effectivity. This Decree shall take effect June 1, 1984.

Done in the City of Manila, this 1st day of May, in the Year of Our Lord,
Nineteen Hundred and Eigthy-Four.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.)JUAN C. TUVERA
		Presidential Executive Assistant