A loss of a wrist shall be considered a loss of the hand , and a loss of an elbow shall be

considered a loss of the arm; a loss of an ankle shall be considered a loss of the foot,
and a loss of a knee shall be considered a loss of the leg, a loss of more than one joint
shall be considered a loss of the whole finger or toe, and a loss of only the first joint
shall be considered a loss of one-half of the whole finger or toe. Other permanent
partial disabilities shall be determined by the Medical officer of the System. [Section
2[b], Rule XII, Ibid.]

The degree of permanent disability shall be equivalent to the ratio that the designated
number of compensability bears to 75[Section 2[b], Rule XII, Ibid.].

4. AMOUNT OF BENEFIT.
Any employee entitled to permanent partial disability benefit shall be paid by the System
a monthly income benefit for the number of months indicated in the schedule embodied
in the law (article 1999b) [192(b)]) and the Amended rules [Section 2 thereof]. If the
indicated number of months exceed twelve, the income benefit shall be paid in monthly
pension; otherwise, the System may pay income benefit in lump sum or in monthly
pension. [Section 3(a), Rule XII, Ibid.]
In case of permanent partial disability less than the total loss of the member, the same
monthly income 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 decimal fraction, the same shall be rounded off to the next higher
integer. [Section 3(b), Rule XII, Ibid.]
In case of simultaneous loss of more than one member or part thereof, the same
monthly income shall be paid for a period equivalent to the sum of the periods
established for the loss of the member or part thereof but not exceeding 75. IF the
result is a decimal fraction, the same shall be rounded off to the higher integer. [Section
3(c), Rule XII, Ibid.]
The new amount of the monthly income benefit computed under the Amended Rules
shall be applicable to all contingencies occurring on or after January 1, 1980. However,
for contingencies which occurred before May 1, 1978, the limitation of P12,000.00 or
five (5) years, whichever comes first, shall be enforced. [Section 3(d), Rule XII, Ibid.]
In case of The SSS, the present monthly income benefit of current pensioners shall be
increased by twenty percent 920%) effective January 1, 1980. [Section 3(d), Rule XII,
Ibid.]
In case of the GSIS, the monthly income benefits of current pensioners shall be
adjusted and recomputed to reflect the twenty percent 20%) increase over the benefit
under the P.D. 1146 effective January 1, 1980. [Section 3(d), Rule XII, Ibid.]
It bears nothing that there has been a ten percent 910%) across-the-board increase in
EC pension for all EC survivorship pensioner in the private sector[Section 2, Executive
Order no. 167, dated May 26, 2014]. The 10% acriss0the0board increase has a
retroactive application to September 2013. [As provided under Board Resolution No. 14-
06-29, dated June 6, 2014]

5. UNLISTED INJURIES AND ILLNESSES.

In cases of injuries or illnesses not listed in the schedule in article 199(b) [193(b)] and
the Amended Rules[Under Section 2 thereof] the benefit shall be an income benefit
equivalent to the percentage of the permanent loss of the capacity for work.[Non-
Scheduled Disabilities]
6. LITMUS TEST AND DISTINCTION BETWEEN PERMANENT TOTAL DISABILITY
AND PERMANENT PARTIAL DISABILITY.
In Vicente v. ECC [G.R. No. 8502, Jan. 23, 1991, 193 SCRA 190] the Supreme Court
laid down the litmus test and distinction between Permanent Total Disability and
Permanent Partial Disability, to wit:
“[W]hile permanent total disability invariably results in an employee’s loss
of work or inability to perform his usual work, ‘permanent partial disability, on the
other hand, occurs when an employee loses the use of any particular anatomical
part of his body which disables him to continue with his former work. Stated
otherwise, the test of whether or not an employee suffers from ‘permanent total
disability’ is showing of the capacity of the employee to continue performing his
work notwithstanding the disability he incurred. Thus, if by reason of injury or
sickness he sustained, the employee is unable to perform his customary job for
more than 120 days and he does not come within the coverage of Rule X of the
Amended Rules on Employee Compensability 9which, in a more detailed
manner, describes what constitutes temporary total disability0, then the said
employee undoubtedly suffer from ‘permanent total disability’ regardless of
whether or not he loses the use of any part of his body.” [See also Social
Security Commission, v. CA G.R. No. 152058, Sept. 27, 2004; Ljanes v. Court of
Appeals, G.R. No. 105854, Aug. 26, 1999, 313 SCRA 131; Gonzaga v. ECC
G.R. No. L-62287, Jan. 31, 1984, 127 SCRA 443; Marcelino v. Seven Up Bottling
Company of the Philippines G.R. No. L-30443, Oct 31, 1972, 150-C Phil. 133;
Landicho v. WCC G.R. No L- 45996, march 26, 1979, 89 SCRA 147; Legaspi v.
Province of Negros Oriental , G R. No. L-430 66, Ec. 29, 1978, 87 SCRA 418;
GSIS v. CA., G.R No.128524 April 20, 1999, 306 SCRA 41; Bejerano v. ECC
G.R. No. 84777, Jan. 30, 1992, 205 SCRA 598; Tria v. ECC, G.R. No. 96787,
May 8, 1992, 208 SCRA 834.]
It bears emphasizing that a person’s disability may not manifest fully at one precise
moment in time but rather over a period of time. It is possible that an injury which at first
was considered to be temporary may later on become permanent or one who suffers a
partial disability becomes totally and permanently disabled form the same cause.[GSIS
v. CA G.R. No. 117572, Jan. 29, 1998 SCRA 430 citing GSIS v. CA G.R. No. 116015,
July 31, 1996, 260 SCRA 133]

CHAPTER VII
DEATH BENEFITS
Article 200[194]. Death. [Pars. (a), (b), and (d), as amended by Sec. 4 of P.D.
No. 1921 (1984), as amended by Section 3, Executive Order No. 179, As
renumbered pursuant to Section 5, R.A. No. 10151, June 21, 2011 and DOLE
Department Advisory No. 01, Series of 2015 (Renumbering of the Labor Code of
the Philippines, as Amended), issued on July 21, 2015] –
(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 then percent
thereof for each dependent child, but not exceeding five, beginning with the
youngest without substitution, except as provided for in paragraph (j) of Article
167 [Renumbered as Adticle 173] 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 shall not be less than fifteen thousand pesos. [As amended by
Section 4 of P.D. No. 1921]
(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 dependent’s 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.
[As amended by Section 4 of P.D. No. 1921]
(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. [As amended by Section 8 of P.D. No. 1368 (1978)]
 (d) Funeral benefit. – A funeral benefit of Three thousand pesos (P3,000.00)
shall be paid upon the death of covered employee or permanently totally disabled
pensioner.[As amended by Section 3 of E.) No. 179 (1987). The amount of
Funeral Benefit was increased to P10,000.00 by virtue of ECC Board Resolution
No. 92-07-0032 (1992) for the private sector and ECC Board Resolution No. 12-
09-21 (2012) for the public sector.]

NOTES AND COMMENTS

INTRODUCTION

1. ORDER OF TOPICAL PRESENTATION.

The major topics discussed in this section are as follows:
I. DEATH BENEFIT
II. FUNERAL BENEFIT

I.
DEATH

1. DEATH; MEANING.
Within the context of the employees’ compensation program, the term “death” means
loss of life resulting from an injury of sickness. [Article 173 (m) [167 (m)], Labor Code.]
“Compensable death” refers to death which is the result of a work-related injury or
sickness.
2. CONDITION TO ENTITLEMENT.
The beneficiaries of a deceased employee shall be entitled to an income benefit if all of
the following conditions are satisfied:
(1) The employee has been duly reported to the System;
(2) He died as a result of an injury or sickness; and
(3) The System has been duly notified of his death as well as the injury or
sickness which caused his death. His employer shall be liable for the benefit
if such death occurred before the employee is duly reported for coverage to
the System. [Section 1 [a], Rule XIII, Amended Rules on Employees’
Compensation; Gau Sheng Phils. Inc v. Joaquin, G.R. No. 144665, Sept. 8,
2004, citing Bonilla v. Ca. G.R. No. 136453, Sept. 21, 2000, 340 SCRA 760]
If the employee has been receiving monthly income benefit for the permanent total
disability at the time of his death, the surviving spouse must show that the marriage has
been validly subsisting at time of his disability. In addition, the cause of death must be a
complication or natural consequence of the compensated Permanent Total Disability.
[Section 1 [b], Rule XIII; As provided under Board Resolution No. 19-09 116 dated
September 2, 2010]
3. PERIOD OF ENTITLEMENT.
A. For primary Beneficiaries:
(a) The income benefit shall be paid beginning at the month of death and shall
continue to be paid for as long as the beneficiaries are entitled thereto. With
respect to the surviving legitimate spouse, the qualification is that he/she has not
remarried. For the dependent children, the qualifications are:
1) Unmarried;
2) Not gainfully employed; and
3) Over 21 years of age provided he/she is incapable of self-support due to a
physical or mental defect which is congenital or acquired during minority.
[Section 2(A) [b], Rule XII Id; As provided under Board Resolution No. 12-
07-16, dated July 27, 2012]
(b) The monthly income benefit shall be guaranteed for five 95) years which in no
case shall be less than P15,000.00. Thereafter, the beneficiaries’ shall be paid
the monthly income benefit for as long as they are entitled thereto. [Section 2(A)
[b], Rule XII Id.; ECC Resolution No. 2799, July 25, 1984]
B. For Secondary Beneficiaries:
(a) The income benefit shall be sixty (60) times the monthly income benefit of a
primary beneficiary which in no case be less than P15,000.00, which shall
likewise be paid in monthly pension.[Section 2(B), Rule XIII, Id;Id.]]
4. AMOUNT OF BENEFIT.
(a) In the case of primary beneficiaries – The monthly income benefit shall be
equivalent to the monthly income benefit for permanent total disability, which
shall be guaranteed for five years, increased by ten percent for each dependent
child but not exceeding five (5), beginning with the youngest and without
substitution: Provided, That the aggregate monthly benefit payable in the case of
the GSIS shall in no case exceed the monthly wage or salary actually received
by the employee at the time of his death; and Provided, Further, That the
minimum income benefit shall not be less than P15,000.00. The death benefit
shall be paid during the entire period for which they are entitled thereto.
If the employee has been receiving income benefits for permanent total disability
at the time of his death, the primary beneficiaries shall be paid the monthly
income benefit equivalent to eighty percent plus the dependent’s pension
equivalent to ten percent (10%) thereof for every dependent child but not
exceeding five 95) counted form the youngest and without substitution. [Section 3
(a), Rule XIII, Id.]
(b) In the case of secondary beneficiaries – The income benefit is payable in
monthly pension which shall not exceed the period of 60 months and the
aggregate income benefit shall not be less than P15,000.00 If the employee has
been receiving monthly income benefit for permanent total disability at the time of
his death, the secondary beneficiaries shall be paid the monthly pension,
excluding the dependent’s pension of the remaining balance of the five year
guaranteed period. [Section 3 (b), Rule XII, Id.; ECC Resolution No. 2799, July
25, 1984]
It bears stressing that there has been a ten percent (10%) across-the-board
increase in EC pension for all EC survivorship pensioner in the private sector
[Section 2, Executive Order no. 167, dated May 26, 2014]. The 10% across-the-
board increase has a retroactive application to September 2013. [As provided
under Board Resolution no. 14-06-29, dated June 6, 2014]
(c) Qualified wives and children beneficiaries of Muslims.
In relation thereof, the following are the guidelines on the grant of EC death
benefits to qualified wives and children beneficiaries of Muslims;
1) The basic monthly pension shall be divided equally among the surviving
wives;
2) Upon the death or re-marriage of any of the wives, her basic monthly
pension shall be equally re-distributed to the remaining wives:
3) The qualified dependent children not exceeding five (5) beginning with the
youngest and without substitution, who are entitled to dependent’s
pension shall be counted from among the collective number of children of
the wives of the Muslim and not counted form the children of each wife of
the Muslim. [As provided under Board Resolution No. 14-07-34, dated July
28, 2014; See also No. I [1}, Annex ‘D”, Suppletory Rules to Amended
Rules on Employees’ Compensation {resolution No. 90-03-0022 dated
march 23, 1990]]
(d) Benefits upon the death of a pensioner.
The provision of paragraph (b) Article 200 [194] of the Labor Code, as amended,
applies to death occurring on or after January 1, 1980, regardless of the date of
the onset of the permanent total disability. [No. II [1} Annex ‘D”, Suppletory Rules
to Amended Ruled on Employee’s Compensation [Resolution no. 90-03-0022
dated March 23, 1990]
 Upon the death of a pensioner as mentioned in the said paragraph (b) of Article
200 [194], eighty percent (80%) of the monthly income benefit and the
dependents’ pension shall be paid to the primary beneficiaries in cases where
the cause of death is a complication or natural consequence of his compensated
Permanent Total Disability. [No. II [2], Ibid., as amended by Board Resolution No.
10-09-116, Series of 2010, September 2, 2010]
The provision does not apply to cases where a member under permanent partial
disability dies during the period that he is receiving monthly income benefit for
permanent partial disability. [No. II [3], Ibid.]
Upon the death of a pensioner who is survived by secondary beneficiaries, the latter are
entitled only to the balance of the five (5) year guaranteed period, provided that the total
amount of compensation benefits for the five-year period shall not be less than Fifteen
thousand pesos (P15,000.00). But if the member under permanent total disability dies
after the five-year guaranteed period, secondary beneficiaries are no longer entitled to
any benefits. [No. II [4], Ibid.]
5. ENTITLEMENT TO THE NEW INCOME BENEFIT UNDER P.D. 1641.
The new amount of the monthly income benefit computed under the Amended Rules
shall be applicable to all contingencies occurring on or after January 1, 1980. However,
for contingencies which occurred before May 1, 1978, the limitation of P12,000 or 5
years, whichever comes first, shall be enforced.
In the case of the SSS, the present monthly income benefit of current pensioners shall
be increased by twenty percent (20%) effective January 1, 1980.
In the case of the GSIS, the monthly income benefit of the current pensioners shall be
adjusted and recomputed to reflect the twenty percent (20%) increase over the benefit
under P.D. 1146 effective January 1, 1980 [Section 4, rule XII, Amended Rules on
Employees’ Compensation]
The new amount of lump sum benefit computed under the Amended Rules shall be
applicable to all contingencies occurring on or after May 1, 1980, otherwise entitlement
thereto shall be governed by the foregoing rules. [Section 5, Rule XII, Id. (The Rules
referred to are the ones found in Section 4 of this Rule XIII]

6. DEATH BENEFITS, NOT PART OF THE ESTATE OF THE DECEASED.

The death benefits being paid under the law are not part of the deceased’s estate.
They are not in the nature of inheritance. They are granted by operation of law as
financial compensation and aid for the death of the employee.
It must be noted that the dependents mentioned in the law are not referred to as the
‘heirs’ but rather as ‘beneficiaries.’ It may be further observed that the dependents are
not necessarily the ‘heirs’ of the deceased, as this term is understood in civil law.

7. PRESUMPTIVE DEATH.
In 2014, ECC Board Resolution No. 14-07-20 [July 28, 2014], was issued promulgating
the Guidelines on the Grant of EC Benefits Due to Calamity or Fatal Event Amending
for this Purpose, Paragraph 5 of Board Resolution No. 93-08-0068 [August 5, 1993].
Accordingly, said Paragraph 5 shall now read as follows;
5. “Guidelines on the Grant of EC benefits for the Beneficiaries of Missing Persons while
in the Performance of Duty during Calamity or Fatal Events.
5.1. Coverage. “These guidelines shall apply to all covered workers or employees’ and
uniformed personnel who had been reported missing while they were in the
performance of their duties during calamities or fatal events such as, but not limited to,
police or military operation earthquake, typhoon and volcanic eruption.
5.2. Period of Filing. “The beneficiaries may file their claims for EC death with funeral
benefits within the three year-prescriptive period from the time the missing person has
been presumed dead after the lapse of four years from the occurrence of the incident.
In lieu of Death Certificate, the Systems may require the submission of certification from
any concerned government institution showing that the concerned employee or

QUESTIONS
1. Are death benefits a part of the estate of the deceased?

No.

The death benefits being paid under the law are not part of the deceased’s
estate. They are not in the nature of inheritance. They are granted by operation
of law as financial compensation and aid for the death of the employee.
It must be noted that the dependents mentioned in the law are not referred to as
the ‘heirs’ but rather as ‘beneficiaries.’ It may be further observed that the
dependents are not necessarily the ‘heirs’ of the deceased, as this term is
understood in civil law.

2. What are the guidelines on the grant of EC death benefits to qualified wives and
children beneficiaries of Muslims?
The following are the guidelines on the grant of EC death benefits to qualified
wives and children beneficiaries of Muslims;

1) The basic monthly pension shall be divided equally among the surviving
wives;
2) Upon the death or re-marriage of any of the wives, her basic monthly
pension shall be equally re-distributed to the remaining wives:
3) The qualified dependent children not exceeding five (5) beginning with the
youngest and without substitution, who are entitled to dependent’s
pension shall be counted from among the collective number of children of
the wives of the Muslim and not counted form the children of each wife of
the Muslim.