Labor Code Book 4, Title II: Employees' Compensation (Arts. 172

Title II of Book Four is the Employees’ Compensation Program — the Philippines’ no-fault system for work-connected injury, sickness, disability and death. It runs from Article 172 to Article 215 across nine chapters, and it is the largest single Title in the Labor Code outside Book Five.

It is separated onto its own page because it is a complete benefits system: coverage, contributions, medical benefits, disability benefits, death benefits, claims, appeals and penalties. Part of Book Four; see also all seven Books.

⚠ No peso figure in this Title is current. Every amount below is the 1974–1987 statutory figure. The Employees’ Compensation Commission has raised them by Board Resolution ever since, and the Code text was never updated to match. Two documented examples from DOLE’s own footnotes: the maximum daily income benefit for temporary total disability reads ₱90 in Article 197 but was raised to ₱200 by ECC Board Resolution No. 96-10-0429 (1996) for the private sector and No. 12-09-21 (2012) for the public sector; the funeral benefit reads ₱3,000 in Article 200(d) but was raised to ₱10,000 by ECC Board Resolution No. 92-07-0032 (1992) and No. 12-09-21 (2012).

Treat every amount here as a floor set in the 1970s and check the current ECC schedule before relying on it — exactly as you would with a wage order.

How the System Works

Before the articles, the shape of it:

Who pays. The employer alone. Contributions are 1% of the monthly salary credit, and any contract or device deducting any part of it from wages is null and void (Article 189).
Who administers. The SSS for private employment and the GSIS for government employment — together “the System” — under the policy direction of the Employees’ Compensation Commission (Articles 173, 182).
What triggers it. A work-connected injury (an accident arising out of and in the course of employment) or sickness (a listed occupational disease, or an illness proved to have had its risk increased by working conditions) — Article 173(k) and (l).
What it pays. Medical services and appliances, temporary total disability income, permanent total and permanent partial disability income, death benefits and a funeral benefit, plus rehabilitation services (Chapters V, VI, VII).
The exclusivity rule. State Insurance Fund liability is generally exclusive and in place of all other employer liability for the same contingency (Article 179) — one of the most consequential provisions in the Title.
The deadline. A claim must be filed with the System within three years of the cause of action accruing (Article 207).
Where disputes go. The System decides first, with appeal to the Commission, then review by the Supreme Court on certiorari on questions of law (Articles 186–187).

A note on the text below: Reproduced from the Department of Labor and Employment’s official 2022 renumbered edition, Book Four, Title II (pages 57–73). Every article here was renumbered, each moving up by six — the policy article was Article 166 and is now Article 172. The current number leads, the original follows in brackets. Definitions and computation formulas in Article 173 have been amended repeatedly and in places superseded by the SSS and GSIS charters; those carry status notes.

Chapter I — Policy and Definitions

Article 172 [166] — Policy

The State shall promote and develop a tax-exempt employees’ compensation program whereby employees and their dependents, in the event of work-connected disability or death, may promptly secure adequate income benefit and medical related benefits.

Article 173 [167] — Definition of Terms

As used in this Title, unless the context indicates otherwise:

(a) “Code” means the Labor Code of the Philippines instituted under Presidential Decree Numbered Four Hundred Forty-Two, as amended.

(b) “Commission” means the Employees’ Compensation Commission created under this Title.

(c) “SSS” means the Social Security System created under Republic Act Numbered Eleven Hundred Sixty-One, as amended.

(d) “GSIS” means the Government Service Insurance System created under Commonwealth Act Numbered One Hundred Eighty-Six, as amended.

(e) “System” means the SSS or GSIS, as the case may be.

(f) “Employer” means any person, natural or juridical, employing the services of the employee.

(g) “Employee” means any person compulsorily covered by the GSIS under Commonwealth Act Numbered One Hundred Eighty-Six, as amended, including the members of the Armed Forces of the Philippines, and any person employed as casual, emergency, temporary, substitute or contractual, or any person compulsorily covered by the SSS under Republic Act Numbered Eleven Hundred Sixty-One, as amended.

(h) “Person” means any individual, partnership, firm, association, trust, corporation or legal representative thereof.

(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 employee; and the parents of said employee wholly dependent upon him for regular support.

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

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

(l) “Sickness” means any illness definitely accepted as an occupational disease listed by the Commission, or any illness caused by employment subject to proof that the risk of contracting the same is increased by working conditions. For this purpose, the Commission is empowered to determine and approve occupational diseases and work-related illnesses that may be considered compensable based on peculiar hazards of employment.

(m) “Death” means loss of life resulting from injury or sickness.

(n) “Disability” means loss or impairment of a physical or mental function resulting from injury or sickness.

(o) “Compensation” means all payments made under this Title for income benefits and medical or related benefits.

(p) “Income benefit” means all payments made under this Title to the employee or his dependents.

(q) “Medical benefit” means all payments made under this Title to the providers of medical care, rehabilitation services and hospital care.

(r) “Related benefit” means all payments made under this Title for appliances and supplies.

(s) “Appliances” means crutches, artificial aids and other similar devices.

(t) “Supplies” means medicine and other medical, dental or surgical items.

(u) “Hospital” means any medical facility, government or private, authorized by law, an active member in good standing of the Philippine Hospital Association and accredited by the Commission.

(v) “Physician” means any doctor of medicine duly licensed to practice in the Philippines, an active member in good standing of the Philippine Medical Association and accredited by the Commission.

(w) “Wages” or “Salary”, insofar as they refer to the computation of benefits, means the monthly remuneration as defined in Republic Act No. 1161, as amended, for SSS and Presidential Decree No. 1146, as amended, for GSIS, respectively, except that part in excess of Three Thousand Pesos.

(x) “Monthly salary credit” means the wage or salary base for contributions as provided in Republic Act Numbered Eleven hundred sixty-one, as amended, or the wages or salary.

(y) “Average monthly salary credit” in the case of the SSS means the result obtained by dividing the sum of the monthly salary credits in the sixty-month period immediately preceding the semester of death or permanent disability by sixty (60), except where the month of death or permanent disability falls within eighteen (18) calendar months from the month of coverage, in which case it is the result obtained by dividing the sum of all monthly salary credits paid prior to the month of the contingency by the total number of calendar months of coverage in the same period.

(z) “Average daily salary credit” in the case of the SSS means the result obtained by dividing the sum of the six (6) highest monthly salary credits in the twelve-month period immediately preceding the semester of sickness or injury by one hundred eighty (180), except where the month of injury falls within twelve (12) calendar months from the first month of coverage, in which case it is the result obtained by dividing the sum of all monthly salary credits by thirty (30) times the number of calendar months of coverage in the period.

In the case of the GSIS, the average daily salary credit shall be the actual daily salary or wage, or the monthly salary or wage divided by the actual number of working days of the month of contingency.

(aa) “Quarter” means a period of three (3) consecutive months ending on the last days of March, June, September and December.

(bb) “Semester” means a period of two consecutive quarters ending in the quarter of death, permanent disability, injury or sickness.

(cc) “Replacement ratio” – The sum of twenty percent and the quotient obtained by dividing three hundred by the sum of three hundred forty and the average monthly salary credit.

(dd) “Credited years of service” – For a member covered prior to January, 1975, nineteen hundred seventy-five minus the calendar year of coverage, plus the number of calendar years in which six or more contributions have been paid from January, 1975 up to the calendar year containing the semester prior to the contingency. For a member covered on or after January, 1975, the number of calendar years in which six or more contributions have been paid from the year of coverage up to the calendar year containing the semester prior to the contingency.

(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 (P250.00).

Status notes on Article 173 — several definitions no longer control.

Paragraphs (i), (j), (k) and (ee) are shown as amended by Presidential Decree No. 1921 (1984); (l) and (y) as amended by P.D. No. 1368 (1978); (z) as amended by P.D. No. 891 (1976); (bb) by P.D. No. 891; (cc) by P.D. No. 1641 (1980); (w) by Executive Order No. 179 (1987).
Paragraph (y) is superseded by Section 8(m) of Republic Act No. 8282, which defines average monthly salary credit as the greater of two computations rather than the single one shown here.
The first paragraph of (z) is superseded by Section 8(n) of R.A. No. 8282, and the second paragraph by Section 2(k) of R.A. No. 8291, the GSIS Act, which uses “current daily compensation” capped at 22 days.
Paragraph (w)’s ₱3,000 ceiling and paragraph (ee)’s ₱250 floor are 1980s figures long overtaken in practice.
On (k), ECC Resolution No. 2799 (1984) requires that the injury result from an accident arising out of and in the course of employment; Resolution No. 3914-A (1988) extended compensable coverage for off-premises injury up to the employee’s residence.
On (l), Rule III, Section 1(b) of the Amended Rules on Employees’ Compensation states the two routes to compensability: a listed occupational disease under Annex “A” with its conditions satisfied, or proof that the risk of contracting the disease was increased by working conditions.

Chapter II — Coverage and Liability

Article 174 [168] — Compulsory Coverage

Coverage in the State Insurance Fund shall be compulsory upon all employers and their employees not over sixty (60) years of age; Provided, That an employee who is over sixty (60) years of age and paying contributions to qualify for the retirement or life insurance benefit administered by the System shall be subject to compulsory coverage.

Status note: as amended by Section 16 of Presidential Decree No. 850 (1975).

Article 175 [169] — Foreign Employment

The Commission shall ensure adequate coverage of Filipino employees employed abroad, subject to regulations as it may prescribe.

Status note: Rule I, Section 5 of the Amended Rules on Employees’ Compensation provides that Filipinos working abroad in the service of a covered employer are covered by the System and entitled to the same benefits as employees working in the Philippines.

Article 176 [170] — Effective Date of Coverage

Compulsory coverage of the employer during the effectivity of this Title shall take effect on the first day of his operation, and that of the employee, on the date of his employment.

Article 177 [171] — Registration

Each employer and his employees shall register with the System in accordance with its regulations.

Article 178 [172] — Limitation of Liability

The State Insurance Fund shall be liable for compensation to the employee or his dependents, except when the disability or death was occasioned by the employee’s intoxication, willful intention to injure or kill himself or another, notorious negligence, or otherwise provided under this Title.

These four exceptions — intoxication, willful self-injury or injury to another, and notorious negligence — are the only general bars in the Title. Ordinary carelessness by the worker is not one of them: the programme is no-fault.

Article 179 [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, his dependents or anyone otherwise entitled to receive 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.

This is the exclusivity rule, amended by P.D. No. 1921 (1984). EC compensation generally displaces other employer liability for the same contingency — but it expressly does not bar recovery of the separately administered benefits listed, which include those under the Social Security Law, the Armed Forces Death Gratuity and Disability Pension Act, and the Police Act of 1966.

Article 180 [174] — Liability of Third Parties

(a) When the disability or death is caused by circumstances creating a legal liability against a third party, the disabled employee or the dependents, in case of his death, shall be paid by the System under this Title. In case benefit is paid under this Title, the System shall be subrogated to the rights of the disabled employee or the dependents, in case of his death, in accordance with the general law.

(b) Where the System recovers from such third party damages in excess of those paid or allowed under this Title, such excess shall be delivered to the disabled employee or other persons entitled thereto, after deducting the cost of proceedings and expenses of the System.

Status note: as amended by Section 17 of P.D. No. 850 (1975).

Article 181 [175] — Deprivation of the Benefits

Except as otherwise provided under this Title, no contract, regulation or device whatsoever shall operate to deprive the employee or his dependents of any part of the income benefits and medical or related services granted under this Title. Existing medical services being provided by the employer shall be maintained and continued to be enjoyed by their employees.

Chapter III — Administration

Article 182 [176] — Employees’ Compensation Commission

(a) To initiate, rationalize, and coordinate the policies of the employees’ compensation program, the Employees’ Compensation Commission is hereby created to be composed of five ex-officio members, namely: the Secretary of Labor and Employment as Chairman, the GSIS General Manager, the SSS Administrator, the Chairman of the Philippine Medical Care Commission, and the Executive Director of the ECC Secretariat, and two appointive members, one of whom shall represent the employees and the other, the employers, to be appointed by the President of the Philippines for a term of six years. The appointive member shall have at least five years’ experience in workmen’s compensation or social security programs. All vacancies shall be filled for the unexpired term only.

(b) The Vice Chairman of the Commission shall be alternated each year between the GSIS General Manager and the SSS Administrator. The presence of four members shall constitute a quorum. Each member shall receive a per diem of two hundred pesos for every meeting that is actually attended by him, exclusive of actual, ordinary and necessary travel and representation expenses. In his absence, any member may designate an official of the institution he serves on full-time basis as his representative to act in his behalf.

(c) The general conduct of the operations and management functions of the GSIS or SSS under this Title shall be vested in its respective chief executive officers, who shall be immediately responsible for carrying out the policies of the Commission.

(d) The Commission shall have the status and category of a government corporation, and it is hereby deemed attached to the Department of Labor for policy coordination and guidance.

Status note — one named member no longer exists. The Philippine Medical Care Commission, created under R.A. No. 6111 (1969), was merged into the Philippine Health Insurance Corporation and ceased to exist under R.A. No. 7875 (1995). The Executive Director of the ECC was added as an ex-officio member by Section 19(c) of Executive Order No. 126 (1987); paragraph (b) was amended by Section 2 of P.D. No. 1368 (1978); paragraph (d) by E.O. No. 126.

Article 183 [177] — Powers and Duties

The Commission shall have the following powers and duties:

(a) To assess and fix a rate of contribution from all employers;

(b) To determine the rate of contribution payable by an employer whose records show a high frequency of work accidents or occupational diseases due to failure by the said employer to observe adequate safety measures;

(c) To approve rules and regulations governing the processing of claims and the settlement of disputes arising therefrom as prescribed by the System;

(d) To initiate policies and programs toward adequate occupational health and safety and accident prevention in the working environment, rehabilitation other than those provided for under Article 190 hereof, and other related programs and activities, and to appropriate funds therefor;

(e) To make the necessary actuarial studies and calculations concerning the grant of constant help and income benefits for permanent disability or death and the rationalization of the benefits for permanent disability and death under the Title with benefits payable by the System for similar contingencies: Provided, That the Commission may upgrade benefits and add new ones subject to approval of the President; and Provided, further, That the actuarial stability of the State Insurance Fund shall be guaranteed; Provided, finally, That such increases in benefits shall not require any increases in contribution, except as provided for in paragraph (b) hereof;

(f) To appoint the personnel of its staff, subject to civil service law and rules, but exempt from WAPCO law and regulations;

(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 GSIS shall advance on a quarterly basis the remittances of allotment of the loading fund for the Commission’s operational expenses based on its annual budget as duly approved by the Ministry of Budget and Management;

(h) To have the power to administer oath and affirmation, and to issue subpoena and subpoena duces tecum in connection with any question or issue arising from appealed cases under this Title;

(i) To sue and be sued in court;

(j) To acquire property, real or personal, which may be necessary or expedient for the attainment of the purposes of this Title;

(k) To enter into agreements or contracts for such services and as may be needed for the proper, efficient and stable administration of the program;

(l) To perform such other acts as it may deem appropriate for the attainment of the purposes of the Commission and proper enforcement of the provisions of this Title.

Status note: paragraph (d)’s cross-reference to “Article 190” now reads Article 196. Paragraph (e) was amended by Section 3 of P.D. No. 1641 (1980) and paragraph (d) by Section 3 of P.D. No. 1368 (1978); paragraph (g) by Section 3 of P.D. No. 1921 (1984), and the Ministry of Budget and Management is now the Department of Budget and Management. Paragraph (e) is the mechanism by which every peso figure in this Title has since been raised — the Commission may upgrade benefits with the President’s approval, and has done so repeatedly by Board Resolution.

Article 184 [178] — Management of Funds

All revenues collected by the System under this Title shall be deposited, invested, administered and disbursed in the same manner and under the same conditions, requirements and safeguards as provided by Republic Act Numbered Eleven Hundred Sixty-One, as amended, with regard to such other funds as are thereunder being paid to or collected by the SSS and GSIS, respectively: Provided, That the Commission, SSS and GSIS may disburse each year not more than twelve percent of the contribution and investment earnings collected for operational expenses, including occupational health and safety programs, incidental to the carrying out of this Title.

Article 185 [179] — Investment of Funds

Provisions of existing laws to the contrary notwithstanding, all revenues as are not needed to meet current operational expenses under this Title shall be accumulated in a fund to be known as the State Insurance Fund, which shall be used exclusively for payment of the benefits under this Title, and no amount thereof shall be used for any other purpose. All amounts accruing to the State Insurance Fund, which is hereby established in the SSS and GSIS, respectively, shall be deposited with any authorized depository bank approved by the Commission, or invested with due and prudent regard for the liquidity needs of the System.

Status note: as amended by Section 4 of P.D. No. 1368 (1978).

Article 186 [180] — Settlement of Claims

The System shall have original and exclusive jurisdiction to settle any dispute arising from this Title with respect to coverage, entitlement to benefits, collection and payment of contributions and penalties thereon, or any other matter related thereto, subject to appeal to the Commission, which shall decide appealed cases within twenty (20) working days from the submission of the evidence.

EC disputes do not begin at the NLRC. The SSS or GSIS decides first; the ECC hears the appeal.

Article 187 [181] — Review

Decisions, orders or resolutions of the Commission may be reviewed on certiorari by the Supreme Court on question of law upon petition of an aggrieved party within ten (10) days from notice thereof.

Article 188 [182] — Enforcement of Decisions

(a) Any decision, order or resolution of the Commission shall become final and executory if no appeal is taken therefrom within ten (10) days from notice thereof. All awards granted by the Commission in cases appealed from decisions of the System shall be effected within fifteen days from receipt of notice.

(b) 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 decisions of the Court of First Instance, and the Commission shall have the power to issue to the city or provincial sheriff or to the sheriff whom it may appoint, such writs of execution as may be necessary for the enforcement of such decisions, orders or resolutions, and any person who shall fail or refuse to comply therewith shall, upon application by the Commission, be punished by the proper court for contempt.

Status note: the “Court of First Instance” named in paragraph (b) no longer exists; it was replaced by the Regional Trial Courts under the Judiciary Reorganization Act of 1980.

Chapter IV — Contributions

Article 189 [183] — Employers’ Contributions

(a) Under such regulations as the System may prescribe, beginning as of the last day of the month when an employee’s compulsory coverage takes effect and every month thereafter during his employment, his employer shall prepare to remit to the System a contribution equivalent to one (1) percent of his monthly salary credit.

(b) The rate of contribution shall be reviewed periodically and, subject to the limitations herein provided, may be revised as the experience in risk, cost of administration, and actual or anticipated as well as unexpected losses, may require.

(c) Contributions under this Title shall be paid in their entirety by the employer and any contract or device for the deduction of any portion thereof from the wages or salaries of the employees shall be null and void.

(d) When a covered employee dies, becomes disabled or is separated from employment, his employer’s obligation to pay the monthly contribution arising from that employment shall cease at the end of the month of contingency and during such months that he is not receiving wages or salary.

Paragraph (c) is worth knowing. The EC contribution is the employer’s alone. Any deduction of it from wages is void — and a wage deduction outside the closed list in Article 113 is separately unlawful.

Article 190 [184] — Government Guarantee

The Republic of the Philippines guarantees the benefits prescribed under this Title, and accepts general responsibility for the solvency of the State Insurance Fund. In case of any deficiency, the same shall be covered by supplemental appropriations from the national government.

Chapter V — Medical Benefits

Article 191 [185] — Medical Services

Immediately after an employee contracts sickness or sustains an injury, he shall be provided by the System during the subsequent period of his disability with such medical services and appliances as the nature of his sickness or injury and progress of his recovery may require, subject to the expense limitation prescribed by the Commission.

Article 192 [186] — Liability

The System shall have the authority to choose or order a change of physician, hospital or rehabilitation facility for the employee, and shall not be liable for compensation for any aggravation of the employee’s injury or sickness resulting from unauthorized changes by the employee of medical services, appliances, supplies, hospitals, rehabilitation facilities or physicians.

Article 193 [187] — Attending Physician

Any physician attending an injured or sick employee shall comply with all the regulations of the System and submit reports in prescribed forms at such time as may be required concerning his condition or treatment. All medical information relevant to the particular injury or sickness shall, on demand, be made available to the employee or the System. No information developed in connection with treatment or examination for which compensation is sought shall be considered as privileged communication.

Article 194 [188] — Refusal of Examination or Treatment

If the employee unreasonably refuses to submit to medical examination or treatment, the System shall stop the payment of further compensation during such time as such refusal continues. What constitutes an unreasonable refusal shall be determined by the System which may, on its own initiative, determine the necessity, character and sufficiency of any medical services furnished or to be furnished.

Article 195 [189] — Fees and Other Charges

All fees and other charges for hospital services, medical care and appliances, including professional fees, shall not be higher than those prevailing in wards of hospitals for similar services to injured or sick persons in general and shall be subject to the regulations of the Commission. Professional fees shall only be appreciably higher than those prescribed under Republic Act Numbered Sixty-One Hundred Eleven, as amended, otherwise known as the Philippine Medical Care Act of 1969.

Status note: R.A. No. 6111, the Philippine Medical Care Act of 1969, was repealed by R.A. No. 7875, the National Health Insurance Act of 1995. The reference now runs to the repealing law and the PhilHealth system.

Article 196 [190] — Rehabilitation Services

(a) The System shall, as soon as practicable, establish a continuing program, for the rehabilitation of injured and handicapped employees who shall be entitled to rehabilitation services, which shall consist of medical, surgical or hospital treatment, including appliances if they have been handicapped by the injury, to help them become physically independent.

(b) As soon as practicable, the System shall establish centers equipped and staffed to provide a balanced program of remedial treatment, vocational assessment and preparation designed to meet the individual needs of each handicapped employee to restore him to suitable employment, including assistance as may be within its resources, to help each rehabilitee to develop his mental, vocational or social potential.

Chapter VI — Disability Benefits

Article 197 [191] — Temporary Total Disability

(a) Under such regulations as the Commission may approve, any employee under this Title who sustains an injury or contracts sickness resulting in temporary total disability shall, for each day of such a disability or fraction thereof, be paid by the System an income benefit equivalent to ninety percent of his average daily salary credit, subject to the following conditions: the daily income benefit shall not be less than Ten Pesos nor more than Ninety Pesos, nor paid for a continuous period longer than one hundred twenty days, except as otherwise provided for in the Rules, and the System shall be notified of the injury or sickness.

(b) The payment of such income benefit shall be in accordance with the regulations of the Commission.

⚠ The ₱90 ceiling is not current. The maximum daily income benefit for temporary total disability was raised to ₱200 by ECC Board Resolution No. 96-10-0429 (1996) for the private sector and Board Resolution No. 12-09-21 (2012) for the public sector. Article 197 was amended by Section 2 of Executive Order No. 179 (1987); paragraph (b) by Section 19 of P.D. No. 850 (1975). The 120-day limit is the provision most often litigated — see its interaction with permanent total disability at Article 198(c)(1).

Article 198 [192] — Permanent Total Disability

(a) Under such regulations as the Commission may approve, any employee under this Title who contracts sickness or sustains an injury resulting in his permanent total disability shall, for each month until his death, be paid by the System during such a disability, an amount equivalent to the monthly income benefit, plus ten percent thereof for each dependent child, but not exceeding five, beginning with the youngest and without substitution: Provided, That the monthly income benefit shall be the new amount of the monthly benefit for all covered pensioners, effective upon approval of this Decree.

(b) The monthly income benefit shall be guaranteed for five years, and shall be suspended if the employee is gainfully employed, or recovers from his permanent total disability, or fails to present himself for examination at least once a year upon notice by the System, except as otherwise provided for in other laws, decrees, orders or Letters of Instructions.

(c) The following disabilities shall be deemed total and permanent:

(1) Temporary total disability lasting continuously for more than one hundred twenty days, except as otherwise provided for in the Rules;

(2) Complete loss of sight of both eyes;

(3) Loss of two limbs at or above the ankle or wrist;

(4) Permanent complete paralysis of two limbs;

(5) Brain injury resulting in incurable imbecility or insanity; and

(6) Such cases as determined by the Medical Director of the System and approved by the Commission.

(d) The number of months of paid coverage shall be defined and approximated by a formula to be approved by the Commission.

Status note: as amended by Section 7 of P.D. No. 1368 (1978); paragraph (b) further amended by Section 5 of P.D. No. 1641 (1980). Paragraph (c)(1) — temporary total disability continuing beyond 120 days becoming permanent total disability — carries the qualifier “except as otherwise provided for in the Rules,” and the interaction between the 120-day and 240-day periods under the Rules is a recurring point of dispute.

Article 199 [193] — Permanent Partial Disability

(a) Under such regulations as the Commission may approve, any employee under this Title who contracts sickness or sustains an injury resulting in permanent partial disability shall, for each month not exceeding the period designated herein, be paid by the System during such a disability an income benefit for permanent total disability.

(b) The benefit shall be paid for not more than the period designated in the following schedules:

Complete and permanent loss of the use of	No. of months
One thumb	10
One index finger	8
One middle finger	6
One ring finger	5
One little finger	3
One big toe	6
One toe	3
One arm	50
One hand	39
One foot	31
One leg	46
One ear	10
Both ears	20
Hearing of one ear	10
Hearing of both ears	50
Sight of one eye	25

(c) A loss of a wrist shall be considered as a loss of the hand, and a loss of an elbow shall be considered as a loss of the arm. A loss of an ankle shall be considered as loss of a foot, and a loss of a knee shall be considered as a loss of the leg. A loss of more than one joint shall be considered as a loss of one-half of the whole finger or toe: Provided, That such a loss shall be either the functional loss of the use or physical loss of the member.

(d) In case of permanent partial disability less than the total loss of the member specified in the preceding paragraph, the same monthly income benefit shall be paid for a portion of the period established for the total loss of the member in accordance with the proportion that the partial loss bears to the total loss. If the result is a decimal fraction, the same shall be rounded off to the next higher integer.

(e) In cases of simultaneous loss of more than one member or a part thereof as specified in this Article, the same monthly income benefit shall be paid for a period equivalent to the sum of the periods established for the loss of the member or the part thereof. If the result is a decimal fraction, the same shall be rounded off to the next higher integer.

(f) In cases of injuries or illnesses resulting in a permanent partial disability not listed in the preceding schedule, the benefit shall be an income benefit equivalent to the percentage of the permanent loss of the capacity to work.

(g) Under such regulations as the Commission may approve, the income benefit payable in case of permanent partial disability may be paid in monthly pension or in lump sum if the period covered does not exceed one year.

Status note: paragraphs (b), (c), (f) and (g) as amended and added by Section 7 of P.D. No. 1368 (1978). Note that the schedule fixes the number of months the benefit is paid, not a peso amount — the monthly figure itself comes from the monthly income benefit formula in Article 173(ee), as since upgraded by the Commission.

Chapter VII — Death Benefits

Article 200 [194] — Death

(a) Under such regulations as the Commission may approve, the System shall pay to the primary beneficiaries upon the death of the covered employee under this 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 as 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 beneficiary, the System shall pay to his secondary beneficiaries the monthly pension excluding the dependents’ pension, of the remaining balance of the five-year guaranteed period: Provided, finally, That the minimum death benefit shall not be less than fifteen thousand pesos.

(c) The monthly income benefit provided herein shall be the new amount of the monthly income benefit for the surviving beneficiaries upon the approval of this decree.

(d) Funeral benefit. – A funeral benefit of Three Thousand Pesos (P3,000.00) shall be paid upon the death of a covered employee or permanently totally disabled pensioner.

⚠ The ₱3,000 funeral benefit is not current. It was raised to ₱10,000 by ECC Board Resolution No. 92-07-0032 (1992) for the private sector and Board Resolution No. 12-09-21 (2012) for the public sector. The ₱15,000 minimum death benefit in paragraphs (a) and (b) is likewise a 1980s figure. Paragraphs (a), (b) and (d) as amended by Section 4 of P.D. No. 1921 (1984); (c) by Section 8 of P.D. No. 1368 (1978); (d) by Section 3 of E.O. No. 179 (1987). The cross-reference to “Article 167” now reads Article 173.

Article 201 [195] — Relationship and Dependency

All questions of relationship and dependency shall be determined as of the time of death.

Chapter VIII — Provisions Common to Income Benefits

Article 202 [196] — Delinquent Contributions

(a) An employer who is delinquent in his contributions shall be liable to the System for the benefits which may have been paid by the System to his employees or their dependents, and any benefit and expenses to which such employer is liable shall constitute a lien on all his property, real or personal, which is hereby declared to be preferred to any credit, except taxes. The payment by the employer of the lump sum equivalent of such liability shall absolve him from the payment of the delinquent contribution and penalty thereon with respect to the employee concerned.

(b) Failure or refusal of the employer to pay or remit the contribution herein prescribed shall not prejudice the right of the employee or his dependents to the benefits under this Title. If the sickness, injury, disability or death occurs before the System receives any report of the name of his employee, the employer shall be liable to the System for the lump sum equivalent to the benefits to which such employee or his dependents may be entitled.

Paragraph (b) matters to workers. An employer’s failure to remit does not defeat the employee’s claim. The System pays and recovers from the employer.

Article 203 [197] — Second Injuries

If any employee under permanent partial disability suffers another injury which results in a compensable disability greater than the previous injury, the State Insurance Fund shall be liable for the income benefit of the new disability: Provided, That if the new disability is related to the previous disability, the System shall be liable only for the difference in income benefits.

Article 204 [198] — Assignment of Benefits

No claim for compensation under this Title is transferable or liable to tax, attachment, garnishment, levy or seizure by or under any legal process whatsoever, either before or after receipt by the person or persons entitled thereto, except to pay any debt of the employee to the System.

Article 205 [199] — Earned Benefits

Income benefits shall, with respect to any period of disability, be payable in accordance with this Title to an employee who is entitled to receive wages, salaries or allowances for holidays, vacation or sick leaves and any other award of benefit under a collective bargaining or other agreement.

Article 206 [200] — Safety Devices

In case the employee’s injury or death was due to the failure of the employer to comply with any law or to install and maintain safety devices or to take other precautions for the prevention of injury, said employer shall pay the State Insurance Fund a penalty of twenty-five percent (25%) of the lump sum equivalent of the income benefit payable by the System to the employee. All employers, especially those who should have been paying a rate of contribution higher than required of them under this Title, are enjoined to undertake and strengthen measures for the occupational health and safety of their employees.

The 25% penalty is the Title’s link back to occupational safety: an employer whose safety failure caused the injury pays a surcharge into the Fund on top of the benefit the worker receives.

Article 207 [201] — Prescriptive Period

No claim for compensation shall be given due course unless said claim is filed with the System within three (3) years from the time the cause of action accrued.

Three years, filed with the System — not with DOLE or the NLRC. As amended by Section 5 of P.D. No. 1921 (1984). This is a different clock from the Labor Code’s general money-claim period; compare the filing deadlines in Book Seven.

Article 208 [202] — Erroneous Payment

(a) If the System in good faith pays income benefit to a dependent who is inferior in right to another dependent or with whom another dependent is entitled to share, such payments shall discharge the System from liability, unless and until such other dependent notifies the System of his claim prior to the payments.

(b) In case of doubt as to the respective rights of rival claimants, the System is hereby empowered to determine as to whom payments should be made in accordance with such regulations as the Commission may approve. If the money is payable to a minor or incompetent, payment shall be made by the System to such person or persons as it may consider to be best qualified to take care and dispose of the minor’s or incompetent’s property for his benefit.

Article 209 [203] — Prohibition

No agent, attorney or other person pursuing or in charge of the preparation or filing of any claim for benefit under this Title 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 Title for the payment of fees for such services is prohibited. Violation of any provision of this Article shall be punished by a fine of not less than Five Hundred Pesos nor more than Five Thousand Pesos, or imprisonment for not less than six months nor more than one year, or both, at the discretion of the court.

No fee may be charged for pursuing an EC claim. This is stricter than the 10% cap on attorney’s fees for wage recovery under Article 111 — here the fee is prohibited outright, and any stipulation to the contrary is void.

Article 210 [204] — Exemption from Levy, Tax, etc.

All laws to the contrary notwithstanding, the State Insurance Fund and all its assets shall be exempt from any tax, fee, charge, levy, or customs or import duty and no law hereafter enacted shall apply to the State Insurance Fund unless it is provided therein that the same is applicable by expressly stating its name.

Chapter IX — Records, Reports and Penal Provisions

Article 211 [205] — Record of Death or Disability

(a) All employers shall keep a logbook to record chronologically the sickness, injury or death of their employees, setting forth therein their names, dates and places of the contingency, nature of the contingency and absences. Entries in the logbook shall be made within five days from notice or knowledge of the occurrence of the contingency. Within five days after entry in the logbook, the employer shall report to the System only those contingencies he deems to be work-connected.

(b) All entries in the employer’s logbook shall be made by the employer or any of his authorized officials after verification of the contingencies or the employees’ absences for a period of a day or more. Upon request by the System, the employer shall furnish the necessary certificate regarding information about any contingency appearing in the logbook, citing the entry number, page number and date. Such logbook shall be made available for inspection to the duly authorized representatives of the System.

(c) Should any employer fail to record in the logbook an actual sickness, injury or death of any of his employees within the period prescribed herein, give false information or withhold material information already in his possession, he shall be held liable for fifty percent of the lump sum equivalent of the income benefit to which the employee may be found to be entitled, the payment of which shall accrue to the State Insurance Fund.

(d) In case of payment of benefits for any claim which is later determined to be fraudulent and the employer is found to be a party to the fraud, such employer shall reimburse the System the full amount of the compensation paid.

The EC logbook is a statutory record with teeth. Entries within five days of notice; a report to the System within five days of entry; and a 50% liability on the employer for failing to record a real contingency or withholding material information.

Article 212 [206] — Notice of Sickness, Injury or Death

Notice of sickness, injury or death shall be given to the employer by the employee or by his dependents or anybody on his behalf within five days from the occurrence of the contingency. No notice to the employer shall be required if the contingency is known to the employer or his agents or representatives.

Status note: ECC Resolution No. 2127 lists situations where notice is not required because the employer is taken to know already — where the contingency happened on the employer’s premises; where the employee filed a leave application by reason of it; where the employer provided medical services or supplies for it; or where the circumstances make the employer’s knowledge a reasonable presumption.

Article 213 [207] — Penal Provisions

(a) The penal provisions of Republic Act Numbered Eleven Hundred Sixty-One, as amended, and Commonwealth Act Numbered One Hundred Eighty-Six, as amended, with regard to the funds as are thereunder being paid to, collected or disbursed by the System, shall be applicable to the collection, administration and disbursement of the Funds under this Title. The penal provisions on coverage shall also be applicable.

(b) Any person who, for the purpose of securing entitlement to any benefit or payment under this Title, or the issuance of any certificate or document for any purpose connected with this Title, whether for him or for some other person, commits fraud, collusion, falsification, misrepresentation of facts or any other kind of anomaly, shall be punished with a fine of not less than Five Hundred Pesos nor more than Five Thousand Pesos and an imprisonment for not less than six months nor more than one year, at the discretion of the court.

(c) If the act penalized by this Article is committed by any person who has been or is employed by the Commission or System, or a recidivist, the imprisonment shall not be less than one year; if committed by a lawyer, physician or other professional, he shall, in addition to the penalty prescribed herein, be disqualified from the practice of his profession; and if committed by any official, employee or personnel of the Commission, System or any government agency, he shall, in addition to the penalty prescribed herein, be dismissed with prejudice to re-employment in the government service.

Article 214 [208] — Applicability

This Title shall apply only to injury, sickness, disability or death occurring on or after January 1, 1975.

Article 215 [208-A] — Repeal

All existing laws, Presidential Decrees and Letters of Instruction which are inconsistent with or contrary to this Decree, are hereby repealed: Provided, That in the case of the GSIS, conditions for entitlement to benefits shall be governed by the Labor Code, as amended: Provided, however, That the formulas for computation of benefits, as well as the contribution base, shall be those provided under Commonwealth Act Numbered One Hundred Eighty-Six, as amended by Presidential Decree No. 1146, plus twenty percent (20%) thereof.

Status note: added by Section 9 of P.D. No. 1368 (1978) and amended by Section 7 of P.D. No. 1641 (1980). Note the split it creates for government employees: entitlement is governed by the Labor Code, but the computation formulas and contribution base come from the GSIS charter.

Amendment and Status Table

Provision	Status	Note
Articles 172–215	All renumbered	Each six numbers higher than its 1974 number
Every peso amount in this Title	Superseded in practice	Raised by ECC Board Resolution under Art. 183(e); the Code text was never updated
Art. 173(y), (z)	Superseded	Secs. 8(m) and 8(n), R.A. No. 8282 (SSS); Sec. 2(k), R.A. No. 8291 (GSIS)
Art. 173(w) — ₱3,000 cap; (ee) — ₱250 floor	Obsolete figures	E.O. No. 179 (1987); P.D. No. 1921 (1984)
Art. 182(a) — ECC composition	One member abolished	Philippine Medical Care Commission merged into PhilHealth and ceased to exist, R.A. No. 7875
Art. 183(d) — cross-reference	Renumbered	“Article 190” now reads Article 196
Art. 188(b) — enforcement	Court abolished	“Court of First Instance” replaced by the Regional Trial Courts, 1980
Art. 195 — professional fees	Reference repealed	R.A. No. 6111 repealed by R.A. No. 7875; reference runs to the repealing law
Art. 197 — TTD daily ceiling	₱90 → ₱200	ECC Board Res. No. 96-10-0429 (1996); No. 12-09-21 (2012)
Art. 200(d) — funeral benefit	₱3,000 → ₱10,000	ECC Board Res. No. 92-07-0032 (1992); No. 12-09-21 (2012)
Art. 200(a) — cross-reference	Renumbered	“Article 167” now reads Article 173
Art. 207 — prescriptive period	Current	Three years, filed with the System; amended by Sec. 5, P.D. No. 1921 (1984)

Continue Reading the Code

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Next → Book Five — Labor Relations (Articles 218–292)

Sources

Department of Labor and Employment, Labor Code of the Philippines, as Amended and Renumbered (2022 edition), Book Four, Title II, pages 57–73, including DOLE’s amendment, supersession and ECC Board Resolution footnotes. Published by DOLE at dole.gov.ph; the same edition is mirrored as a PDF by the International Labour Organization. Accessed 1 September 2026.
Presidential Decree No. 442, as amended — lawphil.net
Presidential Decrees Nos. 850 (1975), 891 (1976), 1368 (1978), 1641 (1980) and 1921 (1984), each further amending Title II, Book Four; Executive Order No. 179 (1987); Executive Order No. 126 (1987)
Republic Act No. 8282 (Social Security Act) and Republic Act No. 8291 (GSIS Act) — superseding the salary-credit definitions in Article 173
Republic Act No. 7875 (1995), National Health Insurance Act — repealing R.A. No. 6111 and abolishing the Philippine Medical Care Commission
Amended Rules on Employees’ Compensation, Rules I and III; ECC Resolutions Nos. 2799 (1984), 3914-A (1988) and 2127; ECC Board Resolutions Nos. 92-07-0032 (1992), 96-10-0429 (1996) and 12-09-21 (2012)

Sources rechecked as of: September 1, 2026
Last materially reviewed: September 1, 2026

Educational content, not legal advice. This page reproduces statutory text whose monetary figures have been superseded by Employees’ Compensation Commission issuances, each flagged where documented. It is not legal advice and does not create a lawyer-client relationship. Entitlement to employees’ compensation turns on medical evidence, the listed occupational diseases and their conditions, and the facts of the contingency. Before relying on any amount here, check the current ECC schedule. LaborCode.ph is independent and is not a government website, tribunal, or law firm. For advice on an actual claim, consult a Philippine labor lawyer, the SSS or GSIS, or the Employees’ Compensation Commission.