RHACQ KHO’s BAR ADVENTURE

LABOR LAW REVIEWER 2015

Atty. Disini’s Comparative Table on Social Legislations

Employees’ Benefits Under
Social Security System, Government Service Insurance System and Employee's Compensation and State Insurance Fund

I. Policy Objectives
SSS ECSIF (Employee's Compensation and State Insurance Fund)
to establish, develop, promote and perfect a sound and viable tax- The State shall promote and develop a tax-exempt employee’s
exempt social security service suitable to the needs of the people compensation program whereby employees and their dependents, in the
throughout the Philippines which shall promote social justice and even of work-connected disability or death, may promptly secure
provide meaningful protection to members and their beneficiaries adequate income benefit, and medical or related benefits. Art 166 LC
against the hazards of disability, sickness, maternity, old age, death,
and other contingencies resulting in loss of income or financial burden.
S2 RA 8282

II. Employer
SSS GSIS ECSIF
Any person, natural or juridical, domestic or 1. The national government, its political Any person, natural or juridical, employing
foreign, who carries on in the Philippines any subdivisions, branches agencies or the services of the employee
trade, business, industry, undertaking, or instrumentalities,
activity of any kind and uses the services of 2. government-owned or controlled
another person who is under his orders as corporations, and financial institutions
regards the employment with original charters,
Exempt Employer 3. constitutional commissions and the
1. Government and any of its political judiciary;
subdivisions, branches or
instrumentalities, including
corporations owned or controlled by
the Government
2. self-employed person shall be both
employee and employer at the same
time.

III. Employee
SSS GSIS ECSIF
1. Any person who performs services for an 1. Any person, receiving compensation while Any person compulsorily covered by the
employer in which either or both mental in the service of an employer as defined GSIS under CA186, as amended, including
or physical efforts are used and who herein, whether by election or the members of the AFP and any person
receives compensation for such services, appointment, irrespective of status of compulsorily covered by SSS under RA 1161
where there is an employer-employee appointment, as amended
relationship 2. barangay
2. a self-employed person shall be both 3. sanggunian officials
employee and employer at the same
time.
3.
IV. Dependent
SSS GSIS ECSIF

Spouse – The legal spouse entitled by law to Spouse – legitimate spouse dependent for Spouse – legitimate and living with employee
receive support from the member; support upon the member or pensioner

Child – legitimate, legitimated or legally Child – legitimate, legitimated, legally adopted Child – legitimate, legitimated or legally
adopted, and illegitimate child who is child, including the illegitimate child, who is adopted, and acknowledged natural child who
unmarried, not gainfully employed, and has unmarried, not gainfully employed, not over is unmarried, not gainfully employed, and
not reached twenty-one (21) years of age, or if the age of majority, or is over the age of has not reached twenty-one (21) years of age,
over twenty-one (21) years of age, he is majority but incapacitated and incapable of or if over twenty-one (21) years of age,
congenitally or while still a minor has been self-support due to a mental or physical defect provided he is incapacitated and incapable of
permanently incapacitated and incapable of acquired prior to age of majority self-support due to physical or mental defect
self-support, physically or mentally which is congenital or acquired during
Parent - parents dependent upon the member minority
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Parent – who is receiving regular support for support;

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from the member Parent - parents dependent upon the member

for support;
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LABOR LAW REVIEWER 2015
V. Beneficiaries
SSS GSIS ECSIF
Primary — Primary — The legal dependent spouse until Primary —
1. dependent spouse until he or she he/she remarries and the dependent children; 1. dependent spouse until he or she
remarries remarries
2. dependent legitimate, legitimated or Secondary — The dependent parents and, 2. dependent, Provided that the
legally adopted, and illegitimate subject to the restrictions on dependent dependent natural child shall be
children children, the legitimate descendants; considered as primary beneficiary
Secondary — In the absence of both primary, when there are no other dependent
the dependent parents children who are qualified and
Others – In the absence of all the foregoing, eligible for monthly income benefit.
any other person designated by the member as
his/her secondary beneficiary. Secondary — The dependent parents and,
subject to the restrictions on dependent
children, the legitimate descendants;
VI. Coverage
SSS GSIS ECSIF
Compulsory Compulsory Compulsory
1. all employees not over sixty (60) all employees receiving All employers and their employees not over
years of age and their employers. compensation who have not reached 60 yrs old
2. domestic helpers, their monthly the compulsory retirement age,
income shall not be less than One irrespective of employment status Provided, an employee who is over 60 and
thousand pesos (P1,000.00) a month members of the judiciary and paying contribution to qualify for retirement
3. self-employed persons as may be constitutional commissions qualify or life insurance benefits shall be subject to
determined by the Commission for life insurance only compulsory coverage
under such rules and regulations as it (A168)
may prescribe, including but not EXCEPT:
limited to the following: Foreign employment
a. All self-employed 1. members of the AFP, PNP, subject to the Commission shall ensure adequate coverage
professionals; condition that they must settle first their of Filipino employees employed abroad
b. Partners and single financial obligation with the GSIS,
proprietors of businesses; 2. contractuals who have no EER with the Compulsory coverage of the employer shall
c. Actors and actresses, agencies they serve take effect on the first day of operation and
directors, scriptwriters and that of the employee on the date of his
news correspondents who -- members of the judiciary and constitutional employment (A170)
do not fall within the commissions
definition of the term = who shall have life insurance only
"employee";
d. Professional athletes,
coaches, trainers and
jockeys; and
e. Individual farmers and
fishermen.
EFFECTIVITY
For EE, on first day of employment
For ER, on first day of operations
For self-employed, upon registration

Voluntary
1. Filipinos recruited by foreign-based
employers for employment abroad
may be covered by the SSS on a
voluntary basis.
2. employee under compulsory
coverage is separated from
employment, his employer’s
contribution on his account and his
obligation to pay contributions
arising from that employment shall
cease at the end of the month of
separation, but said employee shall
be credited with all contributions
paid on his behalf and entitled to
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benefits according to the provisions

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of this Act. He may, however,

continue to pay the total
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contributions to maintain his right to
full benefit.
3. If the self-employed realizes no
income in any given month, he shall
not be required to pay contributions
for that month. He may, however, be
allowed to continue paying
contributions under the same rules
and regulations applicable to a
separated employee member
4. Spouses who devote full time to
managing the household and family
affairs, unless they are also engaged
in other vocation or employment
which is subject to mandatory
coverage

By Arrangement
any foreign government, international
organization or their wholly-owned
instrumentality employing workers in the
Philippines or employing Filipinos outside of
the Philippines, may enter into an agreement
with the Philippine Government for the
inclusion of such employees in the SSS except
those already covered by their respective civil
service retirement systems

Excluded employment:
1. Employment purely casual and not
for the purpose of occupation or
business of the employer;
2. Service performed on or in
connection with an alien vessel by an
employee if he is employed when
such vessel is outside the
Philippines;
3. Service performed in the employ of
the Philippine Government or
instrumentality or agency thereof;
4. Service performed in the employ of a
foreign government or international
organization, or their wholly-owned
instrumentality: Provided, however,
That this exemption notwithstanding,
any foreign government,
international organization or their
wholly-owned instrumentality
employing workers in the
Philippines or employing Filipinos
outside of the Philippines, may enter
into an agreement with the
Philippine Government for the
inclusion of such employees in the
SSS except those already covered by
their respective civil service
retirement systems: Provided,
further, That the terms of such
agreement shall conform with the
provisions of this Act on coverage
and amount of payment of
contributions and benefits: Provided,
finally, That the provisions of this
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Act shall be supplementary to any

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such agreement; and

5. Such other services performed by
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temporary and other employees
which may be excluded by
regulation of the Commission.
Employees of bona fide independent
contractors shall not be deemed
employees of the employer engaging
the service of said contractors.

VII. Effect of separation from employment

SSS GSIS
Compulsorily covered and separated from employment A member separated from the service shall continue to be a
When an employee under compulsory coverage is separated member, and shall be entitled to whatever benefits he has
from employment, his employer’s contribution on his account qualified to in the event of any contingency compensable
and his obligation to pay contributions arising from that under this Act.
employment shall cease at the end of the month of separation,
but said employee shall be credited with all contributions
paid on his behalf and entitled to benefits according to the
provisions of this Act. He may, however, continue to pay the
total contributions to maintain his right to full benefit.

Self Employed realizes no income in any given month

If the self-employed realizes no income in any given month,
he shall not be required to pay contributions for that month.
He may, however, be allowed to continue paying
contributions under the same rules and regulations applicable
to a separated employee member:

VIII. Reporting Requirements

SSS GSIS
Each covered self-employed person shall, within thirty (30) days from employer shall report to the GSIS the names of all its employees, their
the first day he started the practice of his profession or business corresponding employment status, positions, salaries and such other
operations register and report to the SSS his name, age, civil status, and pertinent information
occupation, average monthly net income and his dependents

IX. Funding
SSS GSIS ECSIF
1. employer’s contributions 1. employer’s contributions 1. employer contribution
2. employee’s contributions 2. member’s contributions - contribution shall be paid in their
Note: Amount based on salary 3. Government guarantees the entirety by the employer and any
brackets fulfillment of the obligation of GSIS contract or device for the
Remittances - actual remuneration to members deductions of any portion thereof
for employment, including the from the wages or salaries of the
mandated cost-of-living allowance, employees shall be null and void
as well as the cash value of any
remuneration paid in any medium 2. Employee –no contribution
other than cash except that part of
the remuneration in excess of the
maximum salary credit
3. Benefits prescribed in this Act shall
not be diminished and to guarantee
that the Government accepts
general responsibility for the
solvency of the SSS
XX. Effect of Non-Remittance
SSS GSIS ECSIF
The contributions payable under this Act in Government guarantees the fulfillment of the Failure or refusal of the employer to pay or
cases where an employer refuses or neglects obligations of the GSIS to its members as and remit the contributions shall not prejudice the
to pay the same shall be collected by the SSS when they fall due right of the employee or dependent to benefits
in the same manner as taxes are made
collectible under the National Internal If the sickness, injury or disability or death
Revenue Code, as amended. Failure or refusal occurs before the System receives any report
of the employer to pay or remit the of the name of his employee, the employer
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contributions herein prescribed shall not shall be liable to the benefits to which such
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prejudice the right of the covered employee to employee or his dependents may be entitled.
the benefits of the coverage.
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LABOR LAW REVIEWER 2015
XI. Benefits
SSS GSIS ECSIF
1. Monthly pension All Members 1. Medical
2. Dependents Pension 1. Separation 2. Temporary total disability
3. Retirement 2. Retirement 3. permanent total disability
4. Death 3. Disability 4. permanent partial disability
5. Permanent Disability 4. Life Insurance 5. death
6. Funeral 5. Funeral 6. funeral
7. Sickness Note: All-Tax exempt 7. second injury
8. Maternity – limited only to first 4 Judiciary and Const. Comms 8. deprivation of benefits
deliveries or miscarriages. entitled to life insurance only.

Note: All-Tax exempt

XII. Basis of Claim
SSS GSIS ECSIF
Non work connected disability, sickness, Non work connected disability, sickness, death Work connected disability or death
maternity, old age, death, and other
contingencies resulting in loss of income or Permanent disability –Upon occurrence of Except:
financial burden. contingency but GSIS exempt from liability, if - employees intoxication
permanent disability is due to grave - wilfull intention to injure himself or
misconduct, notorious negligence, habitual another
intoxication, or willful intention to kill himself - notorious negligence
or another. - otherwise provided by law

Survivorship
Separation
Unemployment
XIII. Prescriptive Period
SSS GSIS ECSIF
The right to institute the necessary action All claims for benefits – 4 years from date of No claim for compensation shall be given due
against the employer may be commenced contingency. course unless said claim is filed with the
within twenty (20) years from the time the System within 3 years from the time the cause
delinquency is known or the assessment is Exception: Life and Retirement benefits. of action accrued
made by the SSS, or from the time the benefit
accrues, as the case may be.
XIV. Exclusivity of Benefits
SSS GSIS ECSIF
Whenever other laws provide similar benefits Unless otherwise provided, the liability of the
for the same contingencies covered by this Act, State Insurance Fund shall be exclusive and in
the member who qualifies to the benefits shall place of all other liabilities of the employer to
have the option to choose which benefits will the employee
be paid to him. However, if the benefits
provided by the law chosen are less than the The payment of compensation shall not bar
benefits provided under this Act, the GSIS shall the recovery of benefits as provided for in
pay only the difference. other laws whose benefits are administered by
the System or by other agencies of
government.
XV. Benefit Protection
SSS GSIS ECSIF
Non-Transferability of Benefits. - The SSS It is hereby declared to be the policy of the No contract, regulation or devices whatsoever
shall promptly pay the benefits provided in State that the actuarial solvency of the funds of shall operate to deprive the employee or his
this Act to such persons as may be entitled the GSIS shall be preserved and maintained at dependents of any part of the income benefits
thereto in accordance with the provisions of all times and that contribution rates necessary and medical related services granted under
this Act: Provided, That the SSS shall pay the to sustain the benefits under this Act shall be this Title.
retirement benefits on the day of contingency kept as low as possible in order not to burden
to qualified members who have submitted the the members of the GSIS and their employers. No claim for compensation under this Title is
necessary documents at least six (6) months Taxes imposed on the GSIS tend to impair the transferable, or liable to tax, attachment,
before: Provided, further, That the beneficiary actuarial solvency of its funds and increase the garnishment, levy or seizure by or under any
who is a national of a foreign country which contribution rate necessary to sustain the legal process whatsoever, either before or
does not extend benefits to a Filipino benefits of this Act. after receipt by the person or persons entitled
beneficiary residing in the Philippines, or The GSIS, its assets, revenues including all thereto, except to pay any debt of the
which is not recognized by the Philippines, accruals thereto, and benefits paid, shall be employee to the System.
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shall not be entitled to receive any benefit exempt from all taxes, assessments, fees,
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under this Act: Provided, further, That charges, or duties of all kinds. These No ageny, atty, or any other person pursuing
notwithstanding the foregoing, where the best exemptions shall continue unless expressly and or in charge of the preparation of filing of any
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interest of the SSS will be served, the specifically revoked and any assessment claim for benefit under this title shall demand
Commission may direct payments without against the GSIS as of the approval of this Act or charge for his services any fee, and any
regard to nationality or country of residence: are hereby considered paid. stipulation to the contrary shall be void. The
Provided, further, That if the recipient is a All benefits paid shall be exempt from retention or deduction of any amount from
minor or a person incapable of administering attachment, garnishment, execution, levy or any benefit granted under this Title for the
his own affairs, the Commission shall appoint other processes issued by the courts, quasi payment of fees of such services is prohibited.
a representative under such terms and judicial agencies or administrative bodies
conditions as it may deem proper: Provided, including Commission on Audit (COA)
further, That such appointment shall not be disallowances and from all financial
necessary in case the recipient is under the obligations of the members, including his
custody of or living with the parents or spouse pecuniary accountability arising from or
of the member in which case the benefits shall caused or occasioned by his exercise or
be paid to such parents or spouse, as performance of his official functions or duties,
representative payee of the recipient. Such or incurred relative to or in connection with his
benefits are not transferable and no power of position or work except when his monetary
attorney or other document executed by those liability, contractual or otherwise, is in favor of
entitled thereto in favor of any agent, attorney the GSIS.
or any other person for the collection thereof
on their behalf shall be recognized, except
when they are physically unable to collect
personally such benefits: Provided, further,
That in case of death benefits, if no
beneficiary qualifies under this Act, said
benefits shall be paid to the legal heirs in
accordance with the law of succession.

Exemption from Tax, Legal Process and Lien.

-- All laws to the contrary notwithstanding, the
SSS and all its assets and properties, all
contributions collected and all accruals thereto
and income or investment earnings therefrom
as well as all supplies, equipment, papers or
documents shall be exempt from any tax,
assessment, fee, charge, or customs or import
duty; and all benefit payments made by the
SSS shall likewise be exempt from all kinds of
taxes, fees or charges, and shall not liable to
attachments, garnishments, levy or seizure by
or under any legal or equitable process
whatsoever, either before or after receipt by
the person or persons entitled thereto, except
to pay any debt of the member to the SSS. No
tax measure of whatever nature enacted shall
apply to the SSS, unless it expressly revokes
the declared policy of the State in Section 2
hereof granting tax-exemption to the SSS. Any
tax assessment imposed against the SSS shall
be null and void.
Fee of Agents, Attorneys, Etc. - No agent,
attorney or other person in charge of the
preparation, filing or pursuing any claim for
benefit under this Act shall demand or charge
for his services any fee, and any stipulation to
the contrary shall be null and void. The
retention or deduction of any amount from any
benefit granted under this Act for the payment
of fees for such services is prohibited:
Provided, however, That any member of the
Philippine Bar who appears as counsel in any
case heard by the Commission shall be entitled
to attorneys’ fees not exceeding ten percent
(10%) of the benefits awarded by the
Commission, which fees shall not be payable
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before the actual payment of the benefits, and

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any stipulation to the contrary shall be null

and void.
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XVI. Dispute Settlement
SSS GSIS ECSIF
Disputes involving: Any dispute arising under this Act and any Disputes involving:
1. coverage other laws administered by the GSIS 1. coverage
2. benefits 2. benefits
3. contributions Agency – GSIS 3. contributions
4. penalties 4. penalties
5. any other matter related thereto Decide the case within 30 days from the receipt 5. any other matter related thereto
of the hearing officers findings and
Agency – Social Security Commission recommendations or 30 days after submission Agency – GSIS or SSS as the case may be,
for decision have original and exclusive jurisd
Decided within the mandatory period of 20
days after the submission of evidence Appeals – Subject to appeal to the Commission, which
CA- Rule 43 shall decide appealed cases within 20 working
Decision final and executory 15 days after SC – Rule 45 days from the submission of evidence
date of notification
Appeals shall not stay the execution of the Decision final and executory 10 days from
Appeals: order or award unless ordered by the Board notice
CA – laws and fact
SC – laws Execution of decision – when no appeal is Review
perfected and there is no order to stay by the Decisions, orders or resolutions of the
Execution of decision – Commission may Board, CA or SC, any decision or award shall Commission may be reviewed on certiorari by
motu propio or on motion of any interested be enforced and executed in the same manner the SC on questions of law upon petition of an
party, issue a writ of execution to enforce any as decisions of RTC aggrieved party within 10 days from notice
of its decisions or awards, after it has become thereof.
final and executory
Enforcement of Decisions
- all awards granted by the
Commission in cases appealed from
decisions of the System shall be
effected within 15days from receipt
of notice
- in all other cases, decisions, orders
and resolutions of the Commission
which have become final and
executory shall be enforced and
executed in the same manner as
RTC decisions.
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