|Employee Death Benefit in the Philippines|
"The Labor Code of the Philippines covers at length the death benefits available to every employee in the Philippines.."
In Chapter VII, Book IV of the Labor Code of the Philippines covers at length the death benefits available to every employee in the Philippines. The term "employee" denotes any person legally employed in the Philippines, any person compulsorily covered by the SSS under Republic Act 1161 or any person compulsorily covered by the GSIS under the Commonwealth Act 186.
Under Article 194, with the subheading Death, upon the covered employee's death his/her primary beneficiary (or beneficiaries) shall receive from the System an amount equivalent to the deceased member's monthly income benefit, plus a ten percent (10%) fraction of the death benefit thereof for every listed dependent child, with the list not exceeding five, beginning with the youngest to the oldest. The list may not be substituted nor appended.
The term dependent denotes the legitimate, legitimated, acknowledged or legally adopted natural child who is not over twenty-one (21) years, unmarried, and not gainfully employed. A dependent would also include a child who may be over twenty-one (21) years of age provided he/she is incapable of self-support due to a physical or mental defect which is congenital or his/her defect was acquired during minority. The term dependent would also indicate a legal spouse living with the covered employee, and/or the parent(s) of the said employee who are wholly reliant upon him for daily support.
As amended by Section 4, Presidential Decree No. 1921, this employee death benefit monthly income shall be provided for five (5) years by the System. If the covered employee has no listed primary beneficiary, or that his/her list of primary dependents are no longer valid under the regulations of the term "dependent", the System shall forward employee death benefit to his secondary beneficiaries a monthly income benefit which will be provided for sixty months - provided that the minimum employee death benefit shall not be less than fifteen thousand pesos (P15,000).
As amended by Section 4, Presidential Decree No. 1921, upon the death of a covered employee who was also under the permanent total disability program, or covered by the Article 192, the System shall pay to the primary beneficiaries of the deceased employee eighty percent (80%) of his/her monthly income benefit. Additionally, his/her dependents are entitled to the dependents' pension - provided that the covered employee's marriage has been validated to exist at the time of the employee's disability. If the covered employee has no listed primary beneficiary, or that his/her list of primary dependents are no longer valid under the regulations of the term "dependent", the System shall pay to his secondary beneficiaries a monthly pension of the remaining balance of the five (5) year guaranteed period, but which will not include the benefit of a dependents' pension. Finally, the minimum death benefit of the employee shall not be lesser than the amount of fifteen thousand pesos (P15,000).
As amended by Section 8 of the Presidential Decree No. 1368, upon the approval of this decree, the monthly income death benefit provided under Chapter VII, Title Death Benefits, shall be the new amount of the monthly income death benefit for the surviving beneficiaries.
A funeral benefit worth three thousand pesos (P3,000) will be made available upon the death of a covered employee or permanently totally disabled pensioner, as amended by Section 3 of the Executive Order No. 179.