Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No, 8564

Introduced by DIWA Party-list Representative Pepito M. Pico

EXPLANATORY NOTE

The State has an obligation to provide for the families of those persons who have
been rendered, in the course of their duties or employment, unable to earn income, either
through death or incapacity. While the State mandates compensation in the form of death
benefits and disability benefits, this leaves a grey area where a family receives nothing at
all: when an employee has gone missing due to work related causes under circumstances
which make his or her death likely, but has not been missing for long enough to be legally
presumed dead. This situation is all the more unconscionable because those whose loved
ones are missing are, in some ways, worse off than those whose loved ones have died or
become disabled, in that they lack the continued survival in the latter case, and the sense
of closure and finality in the former case.

I believe that provisions must be made for the families of those who go
missing in situations where they are in danger of death, due to work connected
activity (ex. miners, seafarers). Their stuation is analogous to the families of those
who suffer permanent total disappearance in the sense that they completely lose the
income of the presumed deceased, but are not entitled to any death benefits. This bill
seeks to address this disparity, and prevent such families from falling between the cracks
ofthe law.

PERITO M. PICO
Representative, DIWA Party-list

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No8564

Introduced by DIWA Party-list Representative Pepito M. Pico

AN ACT PROVIDING FOR BENEFITS TO FAMILIES OF EMPLOYEES
WHO ARE MISSING AND IN DANGER OF DEATH

Be it enacted by the Senate and House of Representatives of the Republic the
Philippines in Congress assembled:

SECTION 1.- Short Title. This Act shall be known as the "Missing Employees
‘Compensation Act."

SECTION 2. - Declaration of Principles and Policies. It is the policy of the
state to providereliefand protection todistressed workers and their families.

The State shall promote and develop a tax-exempt employees’ compensation program for
dependents of employees who, in a situation where they are in danger of death due to a
work-connected activity, go missing. Dependents can secure adequate income benefit
from the employees’ compensation program even before the missing employees are
presumed dead under the law.

SECTION 3. Definition of Terms. - For purposes of this Act, the following terms are
defined:

(@) "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 following the semester of disappearance due to work-related causes by sixty
(60), except where the month of disappearance 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 contingency by the total number
of calendar months of coverage in the same period;

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(b) "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
budget.

(©) "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 pa id from the year of coverage up to the calendar year containing the semester prior to
the contingency;

(4) "Dependent" means the legitimate, legitimated or legally adopted or
acknowledged natural child who is unmarried, not gainfully employed, and not over
twenty-one (21) years of age or over twenty-one (21) years of age provided he is
incapacitated and incapable of self-support due to a physical or mental detect 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;

(©) "Employee" means any person compulsorily covered by the GSTS under
Commonwealth Act Numbered 186, 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 1161, as amended;

(f) "Monthly income benefit" means the amount equivalent to one hundred fifteen
percent (115%) of the sum of the average monthly salary credit multi plied by the
replacement ratio, and one and a half percent (1 Y2 %) of the average monthly salary credit
for each credited year of service in excess of 10 years: Provided, That the monthly income
benefit shall in no case be Less than two hundred fifty pesos (Php 250.00);

(g) "Replacement ratio" - The sum of twenty percent (20%) and the quotient obtained
by dividing three hundred (300) by the sum of three hundred forty (340) and the average
monthly salary credit;

(h) "SSS" means the Social Security System created under Republic Act Numbered |
161, as amended:

(i) "GSIS" means the Government Service Insurance System created under
Commonwealth Act Numbered 186, as amended;

(j) "System" means the SSS or GSIS, as the case may be.
SECTION 4. Missing Employees. - The following conditions must be

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present, to be considered a missing employee which is covered under the missing
employees compensation act:

(1) Their disappearance occurred during the performance of work.

(2) Their person or bodies have not been found.

(3) They are not yet legally presumed dead under the Civil Code:

(4) There must exist any of the following circumstance:

(a) An employee on board a vessel lost during a sea voyage, or an aeroplane
which is missing;
(b) A person in the armed forces who has taken part in war;

(©) A person who has been in danger of death under other circumstances.

SECTION 5. Missing Employees Compensation. - Under such regulations as the
Commission may approve, the family of any missing employee shall, for each month until
his/her death has been confirmed or legally presumed, be paid by the System during such a
disability, an amount equivalent to the monthly income benefit, plus ten percent (10%)
thereof for each dependent child, but not exceeding five, beginning with the youngest and
without substitution,

The monthly income benefit shall be guaranteed for five years, and shall be
suspended if the missing employee's body is found and identified, or the missing
employee is legally presumed to be dead under the Civil Code.

SECTION 6. Implementing Rules and Regulations. - The Department of Labor
and Employment, in consultation with the relevant government agencies and private
sector representatives, shall issue the necessary rules and reglllations for the effective
implementation of this Act within ninety (90) days after its effectivity

SECTION 7. Separability Clause. - If any provision of this Act is declared
unconstitutional, the same shall not affect the validity and effectivity of the other
provisionshereof.

SECTION 8. Repealing Clause. - All laws, executive orders, presidential
decrees, presidential proclamations, rules and regulations or parts thereof inconsistent
with the provisions of this Act are hereby repealed or modified accordingly.

SECTION 9. Effectivity Clause. - This Act shall take effect fifteen (15) days

from its publication in the Official Gazette or at least two (2) national newspapers of
general circulation.

Approved,

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