V. SOCIAL WELFARE BENEFITS Flashcards
V. SOCIAL WELFARE BENEFITS
A. SSS Law (R.A. No. 8282, as amended by R.A. No. 11199)
1. Benefits; Coverage and Exclusions
Here’s a breakdown of SSS Benefits, Coverage, and Exclusions according to RA 11199 (Social Security Act of 2018), the current governing law:
Benefits:
1) Retirement:
Monthly pension upon reaching retirement age (currently 60 years old).
Option for early retirement at a reduced pension.
Disability pension for members who become permanently disabled.
Total disability benefits for members who are totally incapacitated.
2)Death:
Funeral benefits for the death of a member or their dependents.
Survivor’s pension for the spouse and dependent children of the deceased member.
3) Sickness:
Sickness benefit for members who are confined due to illness.
4) Maternity:
Maternity leave allowance for female members who give birth.
5) Disability:
Permanent disability benefits for members who are permanently disabled due to work-related accidents or illnesses.
6) Other Benefits:
Employees’ compensation program for work-related injuries and disabilities.
Loan programs for members facing financial difficulties.
Coverage:
A) Compulsory Coverage:
All employed individuals aged 16 to 65 years old, regardless of the nature of employment (public or private).
Self-employed individuals who opt to become SSS members.
Overseas Filipino Workers (OFWs): Sea-based and land-based.
B) Voluntary Coverage:
Domestic helpers employed for at least six (6) months.
Persons rendering personal service who are not considered regular employees under the Labor Code.
Exclusions:
- Government employees: Already covered by separate government pension programs.
- Military and uniformed personnel: Covered by their own retirement and benefit systems. (RSBS)
- Minors below 16 years old: Cannot be employed under Philippine labor laws.
- Persons already receiving a pension from another social security institution.
Additional Notes:
Specific requirements and eligibility criteria might apply for claiming each benefit.
Contribution rates and benefit amounts are subject to periodic adjustments as mandated by law.
V. SOCIAL WELFARE BENEFITS
A. SSS Law (R.A. No. 8282, as amended by R.A. No. 11199)
- Dependents and Beneficiaries
While RA 8282 (Social Security Act of 1997) has been superseded by RA 11199 (Social Security Act of 2018), the core principles regarding SSS dependents and beneficiaries remain largely similar. Here are the key points to remember under current SSS law (RA 11199):
Types of Beneficiaries:
* Primary Beneficiaries:
a) Dependent Spouse: The legal spouse of the deceased member, unless they have remarried.
b) Dependent Children:
- Legitimate, legitimated, or legally adopted unmarried and dependent children below 21 years old.
- Disabled dependent children of any age, regardless of marital status.
c) Dependent Parents: In the absence of a dependent spouse and children, the member’s dependent parents (father and/or mother) are considered beneficiaries.
Key Points:
- Dependency: For a spouse and children to be considered dependents, they must be financially dependent on the deceased member.
- Marriage Status: Remarriage of the dependent spouse disqualifies them from receiving benefits.
- Age Limit: Children generally qualify until they reach 21 years old, with an exception for disabled children.
- Sharing of Benefits: Benefits are distributed according to a specific order. The dependent spouse receives the highest share, followed by the dependent children (divided equally).
- Illegitimate Children:
Entitled to 50% of the share of legitimate children if both exist.
Receive 100% of the benefit if there are no legitimate children.
Example 1:
A deceased SSS member has a dependent wife and two minor children.
The dependent wife receives the highest share of the benefits.
The two children share the remaining amount equally.
Example 2:
- A deceased SSS member has no spouse but has a disabled adult child and a minor legitimate child.
- Both children qualify as dependents due to the disability of one and the age of the other.
- The benefits would be divided equally between the two children.
V. SOCIAL WELFARE BENEFITS
B. GSIS Law (R.A. No. 8291)
1. Benefits; Coverage and Exclusions
GSIS Law (RA No. 8291): Key Points on Benefits, Coverage, and Exclusions
R.A. No. 8291, also known as the Government Service Insurance System (GSIS) Act of 1991, outlines the benefits, coverage, and exclusions for government employees in the Philippines. Here’s a breakdown of the key points:
I. Benefits:
a) Retirement Benefits:
- Regular Retirement:
Monthly pension upon reaching retirement age (currently 60 years old with at least 15 years of service).
Option for early retirement with reduced pension.
- Disability Retirement: Pension for members who become permanently disabled before retirement age.
- Survivorship Benefits: Pension for the surviving spouse and dependent children of the deceased member.
b) Loan Programs:
Housing loan
Salary loan
Educational loan
Business loan
Calamity loan
c) Insurance Benefits:
Life insurance
Health insurance
Educational insurance
Example 1:
A government employee retires at the age of 60 with 30 years of service. They qualify for a regular retirement pension based on their salary and service credit.
II. Coverage:
Mandatory Coverage:
All civilian employees of the national government, including:
National government agencies
Local government units (LGUs)
Government-owned and controlled corporations (GOCCs)
Elective officials: Presidents, vice presidents, senators, congressmen, and local government executives.
Example 2:
A teacher employed by the Department of Education is automatically covered by GSIS upon appointment.
III. Exclusions:
a) Military and uniformed personnel: Covered by separate AFP pension programs.
b) Casual and contractual employees: Generally not covered unless their employment reaches a specific duration mandated by law.
c) Members already receiving a pension from another social security institution.
Example 3:
A soldier in the Armed Forces of the Philippines is not covered by GSIS but by the AFP retirement and separation benefits system.
Additional Notes:
The specific requirements and eligibility criteria for each benefit vary.
Contribution rates and benefit amounts are subject to periodic adjustments as mandated by law.
V. SOCIAL WELFARE BENEFITS
B. GSIS Law (R.A. No. 8291)
- Dependents and Beneficiaries
GSIS Law (RA No. 8291): Dependents and Beneficiaries
Key Points:
- GSIS law defines two categories of beneficiaries:
Primary Beneficiaries: Receive benefits first and have priority.
Secondary Beneficiaries: Only receive benefits if there are no surviving primary beneficiaries.
1) Primary Beneficiaries:
Dependent Spouse: The legal spouse of the deceased member, unless they remarry.
Dependent Children:
Legitimate, legitimated, or legally adopted unmarried and dependent children below 18 years old.
Disabled dependent children of any age, regardless of marital status.
2) Secondary Beneficiaries:
Dependent Parents: In the absence of a dependent spouse and children, parents of the deceased member can be considered beneficiaries.
3) Sharing of Benefits:
The dependent spouse receives 50% of the basic minimum pension (BMP) of the deceased member.
Dependent children, if more than one, share the remaining 50% equally.
Disabled children qualify regardless of age.
Illegitimate children are also considered dependents and receive benefits alongside legitimate children.
Example 1:
A deceased GSIS member has a dependent wife and two minor children.
The wife receives 50% of the BMP as the primary beneficiary.
The remaining 50% is divided equally between the two children.
Example 2:
A deceased GSIS member has no spouse but has a disabled adult child and a minor legitimate child.
Both children qualify as dependents due to the disability of one and the age of the other.
They would share the 50% benefit allocated for children equally.
Additional Notes:
The GSIS website offers detailed information on beneficiary qualifications and claiming procedures. (https://www.gsis.gov.ph/)
Consult GSIS for specific eligibility criteria and benefit distribution calculations in case of complex family situations.
Important to Remember:
Dependency: For a spouse and children to be considered dependents, they must be financially dependent on the deceased member.
Remarriage: The dependent spouse loses their beneficiary status upon remarriage.
Age Limit: Children generally qualify until they reach 18 years old, with an exception for disabled children.
V. SOCIAL WELFARE BENEFITS
C. Limited Portability Law (R.A. No. 7699)
Here are the key points to remember for examinations regarding the Limited Portability Law (RA No. 7699) in the Philippines:
Purpose:
- Allows totalization of creditable service (contributions) from different Social Security System (SSS), Government Service Insurance System (GSIS), and Home Development Mutual Fund (Pag-IBIG) memberships.
- Enables members to potentially qualify for benefits earlier or receive higher benefits by combining their contributions from various covered employments.
Key Points:
- Applicability: Covers employees who have shifted jobs between the covered institutions (SSS, GSIS, Pag-IBIG).
- Totalization: The combined creditable service from different memberships is used to determine eligibility and benefit computation for retirement, disability, and death benefits.
- Transfer Request: Employees initiate the transfer request by submitting a Portability Application Form to their current institution.
- Payment of Past Contributions: Optional for members to pay for missing contributions to maximize benefits (specific guidelines and deadlines apply).
- Limitations: Not applicable to sickness, maternity, and unemployment benefits, which are based on recent contributions.
Example 1:
John worked for a private company for 10 years (covered by SSS). He then switched jobs and became a government employee for 15 years (covered by GSIS).
John can request a portability transfer to combine his 25 years of creditable service, potentially qualifying him for earlier retirement or a higher pension.
Example 2:
Maria worked for a private company for 5 years (covered by SSS) before becoming self-employed for 10 years (eligible for voluntary Pag-IBIG membership).
Maria can utilize portability to combine her contributions, potentially increasing her Pag-IBIG membership benefits upon retirement.
Tips for Exams:
- Be familiar with the covered institutions under the Limited Portability Law (SSS, GSIS, Pag-IBIG).
- Understand the concept of totalization and how it affects benefits.
- Recognize the role of the Portability Application Form in initiating the transfer process.
- Be aware of the limitations regarding specific benefits like sickness and maternity.
V. SOCIAL WELFARE BENEFITS
D. Disability and Death Benefits; Labor Code and Civil Code
According to the Philippines Labor Code and related laws, the disability benefits and death benefits for workers are as follows:
Disability Benefits:
- Under the Social Security System (SSS), employees who develop permanent total disability are entitled to a monthly cash pension.[1][4] The amount depends on their credited years of service and monthly salary credit, with a minimum of ₱1,000 to ₱2,400 per month plus a ₱500 supplemental allowance.
- The Employees’ Compensation Program (ECP) provides additional disability benefits for work-related contingencies.[3] For permanent total disability due to work, the employee receives a monthly pension based on their monthly salary credit.
- Employers are required to grant sick leave benefits of 100% daily pay for up to 5 days per year for employees unable to work due to illness or injury, which is reimbursable by the SSS.[4]
Death Benefits:
- Under the SSS, the primary beneficiaries of a deceased employee member are entitled to a lump sum benefit equivalent to the monthly pension multiplied by the number of monthly contributions or ₱17,000, whichever is higher.[1][4] Dependent children also receive 10% of the monthly pension or ₱250,000, whichever is higher.
- The ECP provides a lump sum benefit to beneficiaries equal to the monthly income benefit multiplied by the number of monthly contributions or ₱15,000, whichever is higher, in case of work-related death.[3]
- Employers must pay a funeral benefit of ₱20,000 to ₱40,000 to the beneficiaries of a deceased employee covered by SSS.[1][4]
- The Labor Code mandates that employers provide separation pay to the heirs of a deceased employee equivalent to at least one month salary for every year of service.[3]
So in summary, the key disability and death benefits come from the SSS program, ECP for work-related contingencies, sick leave pay from employers, and separation pay requirements under the Labor Code.
V. SOCIAL WELFARE BENEFITS
E. Claims of Seafarers; 2010 Standard Terms and Conditions Governing the
Overseas Employment of Filipino Seafarers On-Board Ocean-Going Ships (Secs.
20, 32 and 32-A)
Philippine Seafarers’ Claims: Key Points for Exams (RA on Social Welfare Benefits, POEA-SEC)
Here’s a breakdown of key points to remember for examinations regarding claims of Filipino seafarers under Philippine Social Welfare Benefits Law and the 2010 Standard Terms and Conditions Governing Overseas Employment of Filipino Seafarers On-Board Ocean-Going Ships (POEA-SEC), focusing on Sections 20, 32, and 32-A:
Social Welfare Benefits Law:
* This law, though not explicitly referenced, likely refers to various social security programs like:
- Social Security System (SSS): Provides retirement, sickness, disability, and death benefits (consider mentioning RA 8282 or RA 11199 depending on exam focus).
- Employee’s Compensation (EC) Program: Offers benefits for work-related injuries and illnesses (consider mentioning PD 626).
POEA-SEC (Secs. 20, 32, and 32-A):
* Section 20:
Employer’s Duties:
a) Pay wages and allotments promptly.
b) Settle valid claims of seafarers expeditiously.
c) Extend SSS, PhilHealth, Pag-IBIG coverage (unless otherwise provided by bilateral agreements).
* Section 32:
Work-Related Injury/Disability:
- Employer is liable for medical expenses, disability benefits, and repatriation in case of work-related injury or illness.
* Section 32-A:
- Occupational Diseases:
a) The contract should list occupational diseases covered (e.g., hearing loss, asbestos-related illnesses).
b) Similar to Section 32, the employer is responsible for related medical expenses, disability benefits, and repatriation.
Key Points for Exams:
a) Employer’s Responsibility: Employers are obligated to pay wages, allotments, and settle valid claims promptly. They also have a duty to ensure social security coverage and provide benefits for work-related injuries/illnesses and occupational diseases.
b) Claim Types: Seafarers can claim:
- Wages and allotments.
- Social security benefits (retirement, sickness, disability, death).
- Work-related injury/illness benefits (medical expenses, disability benefits, repatriation).
- Occupational disease benefits (similar to work-related injury/illness).
c) Claim Process: While not explicitly mentioned, the POEA-SEC likely implies claims are settled through:
- Direct negotiations with the employer.
- Assistance from Philippine Overseas Employment Administration (POEA) in case of disputes.
Examples:
Example 1: A seafarer suffers a broken leg while working onboard.
The employer is liable for medical expenses, disability benefits if applicable, and repatriation costs under Section 32.
Example 2: A seafarer develops hearing loss after years working in a noisy engine room.
If hearing loss is listed as an occupational disease in the contract (Section 32-A), the employer is responsible for related benefits.
Exam Tips:
- Focus on the employer’s responsibility to pay claims and provide benefits.
- Understand the different types of claims seafarers can make.
- Be familiar with the role of POEA in dispute resolution (though not explicitly mentioned in the referred sections).
What is the role of POEA?
The Philippine Overseas Employment Administration (POEA) plays a crucial role in dispute resolution between Filipino seafarers and their employers, particularly when claims or disagreements arise. Here’s a breakdown of their key functions:
Functions in Dispute Resolution:
- Mediation and Conciliation: POEA facilitates communication between seafarers and employers to reach an amicable settlement for claims like unpaid wages, benefits, or contractual violations.
- Adjudication: If mediation fails, POEA can conduct formal hearings to investigate the case and issue a decision that is binding on both parties.
- Legal Assistance: POEA provides legal guidance and representation to Filipino seafarers who cannot afford private lawyers.
- Enforcement: POEA ensures compliance with its decisions by issuing appropriate orders, including imposing penalties on employers who fail to fulfill their obligations.
Example 1: A seafarer claims they were not paid their full wages as stipulated in the contract.
- POEA can help the seafarer negotiate with the employer to recover the unpaid wages through mediation. If unsuccessful, POEA can hold a hearing and issue a decision ordering the employer to pay the owed amount.
Example 2: A seafarer gets injured onboard and believes the employer is not providing adequate medical care as required by law.
- POEA can intervene and ensure the seafarer receives proper medical attention. They can also investigate the case and hold the employer accountable for any negligence.
Example 3: A dispute arises regarding the validity of a seafarer’s contract termination.
- POEA can review the contract and relevant Philippine laws to determine if the termination was justified. They can then issue a decision ordering the employer to reinstate the seafarer or pay appropriate compensation if the termination was deemed unlawful.
Additional Role:
POEA also plays a preventive role by establishing and enforcing Standard Employment Contracts (SECs) that outline the rights and obligations of both seafarers and their employers. These SECs help to minimize disputes by clearly defining expectations from the outset.
Key Takeaway:
The POEA acts as a vital neutral party to ensure fair treatment and protect the rights of Filipino seafarers working abroad. Their dispute resolution mechanisms provide a platform for seafarers to voice their concerns and seek redress when they encounter issues with their employers.
Challenging MCQs on Disability and Death Benefits (Bar Exam Prep):
Scenario: Michael, a factory worker, has been employed by XYZ Manufacturing for 10 years. He suffers a work-related injury that results in permanent total disability.
Question 1:
Michael will likely receive which of the following combinations of benefits?
- A. Only SSS monthly pension and death benefits for his beneficiaries upon his death from the injury.
- B. Only ECP monthly pension and funeral benefits from XYZ Manufacturing.
- C. Both SSS and ECP monthly pensions, and separation pay from XYZ Manufacturing.
- D. Both SSS and ECP monthly pensions, funeral benefits from XYZ Manufacturing, and separation pay from XYZ Manufacturing.
Answer: C. Both SSS and ECP monthly pensions, and separation pay from XYZ Manufacturing.
Legal Reasoning:
- Michael’s permanent disability due to a work-related injury qualifies him for benefits from both SSS and ECP.
- SSS provides a monthly pension based on salary credit and service years.
- ECP offers an additional monthly pension based on his salary credit.
- The Labor Code mandates separation pay from his employer (XYZ Manufacturing) for his years of service.
- While Michael might be eligible for funeral benefits from XYZ, the scenario doesn’t mention his death.
Question 2:
Maria, an office worker, has been employed by ABC Company for 5 years. She is diagnosed with a chronic illness that renders her permanently disabled but not work-related. What benefits, if any, is she entitled to under Philippine law?
- A. SSS monthly pension, ECP benefits, and sick leave benefits up to her remaining unused days.
- B. SSS monthly pension only, after a waiting period, and sick leave benefits up to her remaining unused days.
- C. SSS benefits upon retirement age, and sick leave benefits up to her remaining unused days.
- D. No benefits, as her disability is not work-related.
Answer: B. SSS monthly pension only, after a waiting period, and sick leave benefits up to her remaining unused days.
Legal Reasoning:
- Maria’s non-work-related disability qualifies her for benefits only under SSS.
- SSS requires a waiting period before she can start receiving a monthly pension based on her salary credit and service years.
- She can avail of sick leave benefits up to her remaining unused days for the year while she was still able to work.
- ECP and separation pay are not applicable in this scenario because her disability is not work-related.
