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(NAR) VOL. 5 NO. 1/JANUARY - MARCH 1994

[ POEA MEMORANDUM CIRCULAR NO. 05, s. 1994, January 19, 1994 ]

ADJUSTMENT IN RATES OF COMPENSATION AND OTHER BENEFITS PROVIDED UNDER THE POEA STANDARD EMPLOYMENT CONTRACT FOR SEAFARERS



Pursuant to the POEA Governing Board Resolution No. 01, Series of 1994 promulgated on 14 January 1994 after recommendation of the Tripartite Technical Working Group, you are hereby advised that effective 20 March 1994, the amount of compensation and other benefits as specified under Part II, Section C, paragraph 1; Section L, paragraphs 1 and 2 and; Appendix 1-A of the POEA Standard Employment Contract for Seafarers shall now read as follows:

I
"Section C. Compensation and Benefits

1.         In case of death of the seaman during the term of his Contract, the employer shall pay his beneficiaries the Philippine Currency equivalent to the amount of US$ 50,000 and an additional amount of US$ 7,000 to each child under the age of twenty-one (21) but not exceeding four children at the exchange rate prevailing during the time of payment.

Where the death is caused by warlike activity while sailing within a declared warzone or war risk area, the compensation payable shall be doubled. The employer shall undertake appropriate war zone insurance coverage for this purpose.

xxx                      xxx                      xxx

II
"Section L. Loss of or Damage To Crew's Effects by Marine Peril

The seaman shall be reimbursed by the employer the full amount of loss or damage to his personal effects but in no case shall the amount exceed the Philippine Currency equivalent to the amount of US$ 2,000. if his personal effects are totally lost or damaged as a result of the wreck or loss or stranding or abandonment of the vessels or as result of fire or flooding or collision.

2.         In case of partial loss, the amount shall be determined by mutual agreement of both parties but in no case to exceed the Philippine Currency equivalent of the amount of US$ 2,000.

xxx                      xxx                      xxx

III

APPENDIX I-A

Schedule of Disability Allowances

Impediment Grade Impediment
     
1
Maximum Rate
x
120.00%
2
"
x
88.81%
3
"
x
78.36%
4
"
x
68.66%
5
"
x
58.96%
6
"
x
50.00%
7
"
x
41.80%
8
"
x
33.59%
9
"
x
26.12%
10
"
x
20.15%
11
"
x
14.93%
12
"
x
10.45%
13
"
x
6.72
14
"
x
3.74%
Maximum Rate: US$ 50,000.


To be paid in Philippine Currency equivalent at the exchange rate prevailing during the time of payment.

IV

Upon Effectively, the new compensation and other benefits above mentioned shall apply to any Filipino seafarer already on-board any vessel, provided, that the cause of action occurs after the said compensation and benefits take effect.

V

It is understood that these new compensation and benefits in cases of death, disability and loss or damage to crew's effects are the minimum requirements acceptable to this Administration. The parties to the employment contract may therefore freely and voluntarily improve these minimum compensation and benefits, Provided, that they shall be made in writing and appended to the POEA Standard Employment Contract when submitted to this Administration for processing and approval.

For strict compliance.

Adopted: 19 Jan. 1994


(Sgd.) FELICISIMO O. JOSON, JR.
Administrator
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