Article 67Labor and Agrarian Laws and Social Legislation, p. 67

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

and

financial

institutions

with

original

charters, the

constitutional commissions and the judiciary;

(d)

Employee

or

Member -

Any

person

receiving

compensation while in the service of an employer as

defined herein, whether by election or appointment,

irrespective of status of appointment, including barangay

and Sanggunian officials;

(e) Active Member - A member who is not separated from

the service;

(f) Dependents - Dependents shall be the following: (a)

the legitimate spouse dependent for support upon the

member or pensioner; (b) the legitimate, legitimated,

legally adopted child, including the illegitimate child, who

is unmarried, not gainfully employed, not over the age of

majority, or is over the age of majority but incapacitated

and incapable of self-support due to a mental or physical

defect acquired prior to age of majority; and (c) the

parents dependent upon the member for support;

(g) Primary beneficiaries - The legal dependent spouse

until he/she remarries and the dependent children;

(h) Secondary beneficiaries - The dependent parents and,

subject to the restrictions on dependent children, the

legitimate descendants;

(i) Compensation - The basic pay or salary received by an

employee,

pursuant

to

his

election/appointment,

excluding per diems, bonuses, overtime pay, honoraria,

allowances

and

any

other

emoluments

received

in

addition to the basic pay which are not integrated into

the basic pay under existing laws;

(j) Contribution - The amount payable to the GSIS by the

member and the employer in accordance with Section 5

of this Act;

(k)

Current

Daily

Compensation -

The

actual

daily

compensation

or

the

actual

monthly

compensation

divided by the number of working days in the month of

contingency but not to exceed twenty-two (22) days;

(l) Average Monthly Compensation (AMC) - The quotient

arrived at after dividing the aggregate compensation

received by the member during his last thirty-six (36)

months of service preceding his separation/retirement/

disability/death by thirty-six (36), or by the number of

months he received such compensation if he has less

than thirty-six (36) months of service: Provided, That the

average monthly compensation shall in no case exceed

the amount and rate as may be respectively set by the

Board under the rules and regulations implementing this

Act as determined by the actuary of the GSIS: Provided,

further, That initially the average monthly compensation

shall not exceed Ten thousand pesos (P10,000.00), and

premium shall be nine percent (9%) and twelve percent

(12%) for employee and employer covering the AMC limit

and below and two percent (2%) and twelve percent (12%)

for employee and employer covering the compensation

above the AMC limit;

(m)

Revalued

average

monthly

compensation -

An

amount equal to one hundred seventy percent (170%) of

the first One thousand pesos (P1,000.00) of the average

monthly compensation plus one hundred percent (100%)

of the average monthly compensation in excess of One

thousand pesos (P1,000.00);

(n) Lump sum - The basic monthly pension multiplied by

sixty (60);

(o) Pensioner - Any person receiving old-age permanent

total disability pension or any person who has received

the

lump

sum

excluding

one receiving survivorship

pension benefits as defined in Section 20 of this Act;

(p) Gainful Occupation - Any productive activity that

provided the member with income at least equal to the

minimum compensation of government employees;

(q) Disability - Any loss or impairment of the normal

functions of the physical and/or mental faculty of a

member which reduces or eliminates his/her capacity to

continue

with

his/her

current

gainful occupation or

engage in any other gainful occupation;

(r) Total Disability - Complete incapacity to continue with

his

present

employment

or

engage

in

any

gainful

occupation due to the loss or impairment of the normal

functions of the physical and/or mental faculties of the

member;

(s) Permanent Total Disability - Accrues or arises when

recovery from the impairment mentioned in Section 2 (Q)

is medically remote;

(t) Temporary Total Disability - Accrues or arises when the

impaired

physical

and/or

mental

faculties

can

be

rehabilitated and/or restored to their normal functions;

(u) Permanent Partial Disability - Accrues or arises upon

the irrevocable loss or impairment of certain portion/s of

the physical faculties, despite which the member is able

to pursue a gainful occupation.

B. MEMBERSHIP IN THE GSIS

SECTION 3. Compulsory Membership. - Membership in

the GSIS shall be compulsory for all employees receiving

compensation who have not reached the compulsory

retirement age, irrespective of employment status, except

members of the Armed Forces of the Philippines and the

Philippine National Police, subject to the condition that

they must settle first their financial obligation with the

GSIS,

and

contractuals

who

have no employer and

employee relationship with the agencies they serve.

Except

for

the

members

of

the

judiciary

and

constitutional commissions who shall have life insurance

only, all members of the GSIS shall have life insurance,

retirement, and all other social security protections such

as disability, survivorship, separation, and unemployment

benefits.

SECTION 4. Effect of Separation from the Service. - A

member separated from the service shall continue to be

a member, and shall be entitled to whatever benefits he

has

qualified

to

in

the

event

of

any

contingency

compensable under this Act.

C. SOURCES OF FUNDS

SECTION 5. Contributions. - (a) It shall be mandatory for

the

member

and

employer

to

pay

the

monthly

contributions specified in the following schedule:

Monthly Compensation

Percentage of

Monthly

Compensation

Payable by

Member Employer

I.

Maximum Average

Monthly Compensation

(AMC) Limit and Below

9.0%

12.0%

II.

Over

the

Maximum

AMC

Limit

-Up to the Maximum AMC

Limit

9.0%

12.0%

-In Excess of the AMC Limit

2.0%

12.0%

Members

of

the

judiciary

and

constitutional

commissioners shall pay three percent (3%) of their

monthly

compensation

as

personal

share

and their

employers a corresponding three percent (3%) share for

their life insurance coverage.

(b) The employer shall include in its annual appropriation

the necessary amounts for its share of the contributions

indicated above, plus any additional premiums that may

be required on account of the hazards or risks of its

employee’s occupation.

(c)

It

shall

be

mandatory

and

compulsory

for

all

employers to include the payment of contributions in

their annual appropriations. Penal sanctions shall be

© Compiled By RGL

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