G.R. No. L-19970 April 30, 1965
FEDERICO CATAPANG, petitioner, vs. THE WORKMEN’S COMPENSATION COMMISSION and VICTORIAS MILLING CO., INC., respondents.

FACTS

Petitioner Federico Catapang was employed by respondent Victorias Milling Company from 1934 to 1941 and again from 1946. In 1948, he was diagnosed with minimal pulmonary tuberculosis but continued working as an “Issuer of Foodstuffs,” a job involving heavy labor. On June 23, 1951, he was hospitalized for far-advanced pulmonary tuberculosis. He was released on September 15, 1951, and discharged from service on September 30, 1951, after being found medically unfit, receiving a gratuity of P1,700. His monthly salary was increased from P170 to P200 only on June 1, 1951. The Hearing Officer of the Workmen’s Compensation Commission (WCC) awarded him compensation, finding his illness work-related. The WCC en banc reversed this, holding that at the time of his disability (June 23, 1951), the governing law (Act No. 3428, as amended) excluded employees earning over P42 a week. Since his P200 monthly salary translated to P46.15 weekly, he was deemed excluded from coverage. WCC Chairman N. Baens del Rosario dissented, arguing the correct basis for computing his average weekly wage was his P170 monthly salary over the 12 weeks preceding his disability, which yielded P39.23 weekly, thus within coverage.

ISSUE

Whether petitioner Federico Catapang was excluded from the coverage of the Workmen’s Compensation Act (Act No. 3428, as amended) at the time of his disability due to exceeding the statutory salary limit of P42 per week.

RULING

No. The Supreme Court reversed the decision of the WCC en banc. The correct basis for computing the average weekly wage, pursuant to Section 19 of the Act, is the earnings during the twelve weeks immediately preceding the date of disability (June 23, 1951). For the twelve-week period from March 31, 1951, to June 22, 1951, petitioner’s monthly salary was P170, yielding an average weekly wage of P39.23, which is below the P42 limit. The Court found the increase to P200 on June 1, 1951, did not alter this computation for the relevant period. Even if computed from his discharge date (September 30, 1951), the result would be similar as part of the P200 was applied to hospital expenses. The Court held that applying the salary limit to exclude petitioner under these circumstances would defeat the purpose of the compensation law, and interpretation should favor the worker. Petitioner is entitled to compensation, with the amount to be computed by the WCC. Respondent company was ordered to pay costs and P225 in attorney’s fees.