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

SECTION 1. Paragraph (b) of Section fourteen of Republic Act Numbered Eleven hundred and sixty-one, as amended, is hereby further amended to read as follows:

"(b) One hundred per centum of the daily benefits provided in the preceding paragraph shall be reimbursed by the System to said employer upon receipt of satisfactory proof of such payment and legality thereof: Provided, however, That the claim for reimbursement shall be adjudicated by the System within a period of two months from receipt thereof: And provided, further, That should no payment be received by the employer within one month after the period prescribed herein for adjudication, the employer is authorized to deduct the amount of his claim for reimbursement from the monthly premium remittances that may be due from him to the System without prejudice, however, to subsequent readjustment in the amount deducted by him should the claim be adjudicated by the System after processing for a smaller or bigger amount and in the event the claim is subsequently denied, the deductions made by the employer as herein authorized shall be without effect and he shall then remit to the System the necessary premiums deducted by him."

SEC. 2. This Act shall take effect upon its approval.

Approved, June 19, 1965.