Handbook on Workers' Statutory Monetary Benefits (2024)

Employees’ Compensation Program: Employees’ Compensation Program

The Employees’ Compensation Program (ECP) is a government program that provides a package of benefits to all workers and/or their beneficiaries in the event of a work-related sickness, injury, disability or death. The ECP is implemented by the Employees’ Compensation Commission (ECC), a government corporation attached to the Department of Labor and Employment for policy coordination and guidance.

Employees’ Compensation Program: Coverage

The ECP covers the following workers: 1. Private sector workers who are compulsory members of the Social Security System (SSS) including sea-based Overseas Filipino Workers (OFWs) and kasambahays. Employees shall be covered starting on the first day of their employment. 2. Government sector employees who are mandatory members of the Government Service Insurance System (GSIS), including uniformed personnel from the Armed Forces of the Philippines, Philippine National Police (PNP), Bureau of Jail and Management Penology (BJMP), Bureau of Fire Protection (BFP), and Philippine Coast Guard (PCG). 3. Active self-employed members of the SSS.

Employees’ Compensation Program: Conditions of Compensability

Any work-connected injury or sickness, resulting to disability or death of a covered employee is compensable under the ECP. 1. Compensable Diseases A sickness is considered compensable if the same is included in the ECC’s List of Occupational Diseases and the conditions for its compensability are met. If the conditions were not satisfied and/or the claimed ailment is not included in the list, proof must be shown that the risk of contracting the disease is increased by the working conditions. This is known as the increased-risk theory. The conditions for the compensability of COVID-19 are the following: a. There must be a direct connection between the offending agent or event and the worker based on epidemiologic criteria and ECC Board Resolution No. 19-03-05 entitled Promulgating the Policy on Expanding the Coverage of the Employee’ Compensation Program (ECP) to the Self-Employed Compulsory Members of the SSS. Issued on 06 March 2019. occupational risk (e.g., healthcare workers, screening and contact tracing teams, etc.); b. The tasks assigned to the worker would require frequent face-to-face and close proximity interactions with the public or with confirmed cases for healthcare workers; c. Transmission occurred in the workplace; or d. Transmission occurred while commuting to and from work. 2. Compensable Injuries An injury is considered compensable when the same takes place within the period of employment, at a place where the employee may reasonably be in the performance of his duties, and while he is fulfilling those duties or engaged in doing something incidental thereto, or where he is engaged in the furtherance of the employer’s business. An accident may be considered to have risen out of and in the course of employment when it happened: a. at the workplace; b. while performing official functions; c. outside of the workplace, but performing an order/ instruction of the employer; d. when going to or coming home from work; e. while ministering to personal comfort; f. while in a company shuttle bus; or g. during a company sponsored activity. No compensation will be allowed to an employee or the dependents if the injury, sickness, disability or death is due to: a. Intoxication; b. Willful intention to injure or kill himself or another; or c. Notorious negligence.

Employees’ Compensation Program: Benefits

The following are the benefits under the EC Program: 1. Sickness/disability benefits – Under the ECP, it is the disability, or the incapacity to work, which is being compensated and not the illness or the injury. There are three types of loss of income benefit, namely: a. Temporary total disability (TTD) – For a disability that prevents an employee from performing his work for a continuous period not exceeding 120 days. The amount of daily income benefit shall be 90% of the employee’s average daily salary credit as determined by the Systems. b. Permanent total disability (PTD) – A monthly income benefit granted for disabilities, such as, but not limited to, complete loss of sight of both eyes, loss and function loss of both limbs, and brain injury resulting to imbecility or insanity. The amount of monthly income benefit for PTD shall be determined by the Systems based on the average monthly salary credit or average monthly compensation (AMSC/AMC). c. Permanent partial disability (PPD) – A monthly income benefit is granted for disabilities that result in physical loss (amputation) or functional loss of a body part. The number of monthly pensions is based on the corresponding body part loss or functional loss, as provided under Article 193 of Presidential Decree No. 626, as amended, and EC schedule of compensation. 2. Medical benefits – It includes reimbursement of the cost of medicines for the illness or injury, payment to providers of medical care, hospital care, surgical expenses, and the costs of rehabilitation appliances and supplies. The medical services are limited to ward services of hospitals duly accredited by the Department of Health (DOH). 3. Carers’ allowance – A supplemental pension of ₱1,000.00/month is provided to pensioners under the ECP who suffer from work-connected PPD and PTD. 4. Rehabilitation services/KaGabay Program (Katulong at Gabay sa Manggagawang May Kapansanan) – Provision of remedial treatment, vocational assessment and preparation which is designed to meet the individual needs of each handicapped employee to restore him to suitable employment and to help each person with work-related disability (PWRD) to develop his/her mental, vocational or social potential. Availed directly at ECC once employee has an approved EC claim from the Systems. Rehabilitation services may be in the form of any of the following: a. Medical-surgical management; b. Hospitalization; c. Necessary appliances and supplies; d. Physical restoration; e. Psychosocial counseling; f. Psychiatric evaluation; g. Skills training; h. Entrepreneur training; i. Hearing impairment evaluation; j. Visual impairment evaluation; and k. Job referral. 5. Death benefit – The beneficiaries of the deceased employee are entitled to an income benefit if the employee died as a result of a work-related injury or sickness. They shall receive an income benefit paid at the beginning of the month of death of the member and will continue for as long as they are entitled thereto. 6. Funeral benefit – An amount of ₱30,000.00 may be granted for the private and public sectors upon the death of an employee who died as a result of a work-related accident or disease. For workers who contracted COVID-19 may avail of the following benefits: 1. Sickness/disability benefit; 2. Medical benefit; 3. Death benefit; and 4. Funeral benefit.

Employees’ Compensation Program: Notification and Filing of Claims

The employer should be notified of the employee’s sickness, injury or death within five days from the occurrence of the contingency. Notice is not necessary if the contingency occurred during working hours, at the place of work and with the knowledge of the employer or representative. For private sector employees, claims for EC benefits are filed at any SSS branch or representative office nearest the employee’s residence or place of work.

Employees’ Compensation Program: Contribution

Employers pay for the EC contributions of their employees. For a covered employee in the private sector, his or her employer shall remit to the SSS a monthly contribution in accordance with the following schedule: Employers’ Range of Compensation Contribution Below ₱4,250.00 to ₱14,749.99 ₱10.00 ₱14,750.00 and above ₱30.00 When a covered employee dies during employment, or is separated from employment, his employer’s obligation to pay the monthly contribution arising from that employment shall cease on the last day of the month of contingency. Likewise, when a covered employee becomes disabled during employment, his employer’s obligation to pay the monthly contribution shall be suspended during such months that he is not receiving salary or wages. For questions regarding the ECP, please contact the EMPLOYEES’ COMPENSATION COMMISSION Address:4 & 5 Floors, ECC Building, 355 Sen. Gil J. Puyat Avenue, Makati City Tel. Nos.: (02) 8899-4251 loc. 227/228 or (02) 8896-7837 Website: https://ecc.gov.ph/ Facebook: www.facebook.com/ecc.official E-mail address: ipad@ecc.gov.ph ECC Circular No. 2019-01 entitled Advisory on the Amount of EC Contribution Relative to the Increase in SS Monthly Salary Credit (MSC). Issued on 01 April 2019.