EMPLOYEES’ COMPENSATION

COMMISSION
(Book IV, Title II of P.D. No. 441
otherwise known as the “Labor Code of
the Philippines,” as amended)
 THE EMPLOYEES’ COMPENSATION
COMMISSION (ECC)
It is the government agency mandated by law to provide
meaningful and appropriate compensation to workers in
the event of work-related contingencies.

Its main functions are to formulate policies and guidelines

for the effective implementation of the Employees’
Compensation Program (ECP), to review and decide on EC
claims denied by the Systems (SSS and GSIS) and to
initiate policies and programs towards adequate
occupational health and safety and accident prevention
in the work environment.

The ECC is a government corporation attached to the

Department of Labor and Employment (DOLE) for policy
coordination and guidance.
 OUR MISSION
The ECC champions the welfare of the Filipino workers. Its
mission is to:
Build and sustain among employees and employers a culture
of safety and healthful environment in the workplace;
Ensure at all times that workers are informed of their rights,
benefits and privileges under the Employees’ Compensation
Program;
Develop and implement innovative policies, programs and
projects that meet the needs of workers with work-connected
contingencies;
Promptly and fairly resolve all cases brought before it;
Restore dignity and self-esteem among occupationally-
disabled workers (ODWs); and
Safeguard the integrity of the State Insurance Fund.
 CORPORATE VISION
“A nationally-acclaimed institution in social security
promotion that is in full control of the Employees’
Compensation Program (ECP), managing a sound,
strong, and wisely invested State Insurance Fund (SIF)
and delivering promptly, effectively and efficiently to
the Filipino worker a comprehensive package of services
and benefits for work-connected contingencies through
pro-active, humane and dynamic policies, programs
and activities.”
 SIX (6) DIVISIONS OF THE ECC
SECRETARIAT

Policy, Programs and Systems

Appeals Division; Management Division;
Work Contingency Prevention
and Rehabilitation Division;
Administrative
Division.
Information and Public
Policy, Programs and Assistance Division;
Systems Management
Division; Finance Division
 THE COMMISSION PROPER HAS EIGHT (8)
MEMBERS, SIX (6) ARE EX-OFFICIO, AND TWO
(2) ARE APPOINTED BY THE PRESIDENT FOR A
FIXED TERM OF OFFICE.
1.The Secretary of Labor and Employment as Chairperson;
2.The SSS President and Chief Executive Officer;
3.The GSIS President and General Manager;
4.The Chairman of the Philippine Health Insurance
5.Corporation;
6.The Chairman of the Civil Service Commission;
7.The Executive Director of the ECC Secretariat;
8.The Employees’ Representative; and
9.The Employers’ Representative.
 EMPLOYEES’
COMPENSATION PROGRAM
(ECP)
 WHAT IS THE ECP?

The Employees’ Compensation Program is a

government program designed to provide a
compensation package to public and private
employees and/or their dependents
 WHO ARE COVERED UNDER THE
EMPLOYEES’ COMPENSATION PROGRAM?
Private sector workers who are compulsory members of the Social
Security System (SSS), including sea-based Overseas Filipino Workers
(OFWs), and “kasambahays”.

Government sector employees who are compulsory members of the

Government Service Insurance System (GSIS), including uniformed
personnel of the Armed Forces of the Philippines (AFP), Philippine
National Police (PNP), Bureau of Jail Management and Penology
(BJMP), Bureau of Fire Protection (BFP), and Philippine Coast Guard.
WHEN SHALL COVERAGE OF THE EMPLOYEES
UNDER THE EMPLOYEES’ COMPENSATION
PROGRAM START?

Employees are covered under the Employees’

Compensation Program starting from the first
day of their employment.
Who pays the EC contribution?
The employers shall pay for the EC
contribution of his/her employees.

P 1000 - P 14749.99 P10.00

P 14,750-ABOVE P30.00

For the public sector-

P 100.00 (regardless of range of monthly
compensation)
WHEN DOES THE OBLIGATION OF THE EMPLOYER TO REMIT
EC MONTHLY CONTRIBUTIONS FOR HIS EMPLOYEE BEGIN
AND ENDS?

The obligation of the employer to remit EC contributions starts within the

first ten (10) calendar days following the month when said contributions
are due and applicable. Otherwise, the employer shall pay the prescribed
penalty.

When a covered employee dies, becomes disabled or is separated from

employment, his employer’s obligation to pay the monthly contribution
arising from that employment shall cease at the end of the month of
contingency and during such months that he is not receiving wages or
salary. (Art. 189 [183], par. (d) P.D. No. 626 as re-numbered)
What if the employer did not remit the SSS contributions of
his workers and a work-related accident took place,
involving the said employees, can they still claim EC
benefits?
Yes, under Article 196 of Presidential Decree No. 626, as amended, the
failure or refusal of the employer to pay or remit the EC contributions
shall not prejudice the right of the employee or his dependents to the
benefits under the ECP. If the contingency occurs before the System
receives any report of the name of his employee, the employer shall
be liable to the System for the lump sum equivalent to the benefits
which such employee or his dependents may be entitled to.
 What contingencies are compensable under
the Employees’ Compensation Program?
COMPENSABLE Any work-connected INJURY or SICKNESS,
CONTINGENCIES resulting to DISABILITY or DEATH of a covered
employee is compensable under the ECP.
When is a sickness compensable under the Employees’
Compensation Program?
A sickness is considered compensable if the same is
included in the ECC’s List of Occupational Diseases and the
COMPENSABLE conditions for its compensability are met. If the conditions
DISEASES 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.
 When is an injury compensable under the Employees’ Compensation
Program?
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.

COMPENSABLE When is an accident considered to have “risen out of and in the course
of employment”? An accident may be considered to have risen out
INJURIES of and in the course of employment when it happened:
• at the workplace;
• while performing official functions;
• outside of the workplace, but performing an order/ instruction of the employer;
• when going to or coming home from work; • while ministering to personal
comfort;
• while in a company shuttle bus; or
• during a company sponsored activity
 EC BENEFITS
What are the benefits under the Employees’ Compensation Program?
The benefits are the following:
A. Loss of income benefit or a cash benefit given to a worker to compensate for
loss of income due to inability to work.

There are three types of loss of income benefits:

1. Temporary Total Disability (TTD)- A total disability is temporary if as a result of
the injury or sickness, the employee is unable to perform any gainful occupation
for a continuous period not exceeding 120 days except where such injury or
sickness still requires medical attendance beyond 120 days but not to exceed 240
days from onset of disability in which case benefit for temporary total disability
shall be paid. (Rule VII, Sec. 2 (a) in relation to Rule X, Sec. 2 (a) Amended Rules
on Employees’ Compensation)
2.Permanent Total Disability (PTD) - means an incapacity to perform gainful work
which is expected to be permanent. This status does not require a condition of complete
helplessness, but means disablement of an employee to earn wages in the same kind of
work, or work of a similar nature that he/she was trained for or accustomed to perform,
or any kind of work which a person of his/her mentality and attainment could do.

The following disabilities shall also be deemed total and permanent:

a. Complete loss of sight of both eyes;
b. Loss of two limbs at or above the ankle or wrist;
c. Permanent complete paralysis of two limbs;
d. Brain injury resulting in incurable imbecility or insanity;
e. Such cases as determined by the System and approved by the ECC.

3.Permanent Partial Disability (PPD) - benefit is given to a worker who loses a body part
and, consequently, the loss of the use of that body part.
B. Medical benefits - reimbursement of the cost of medicine for the illness or injury, payment to
providers of medical care, hospital care, surgical expenses and the costs of appliances and supplies.
The medical services are limited to ward services during confinement;
C. Rehabilitation Services - 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.

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.
D. Carer’s allowance is provided to an employee who suffers
from a permanent partial or permanent total disability as a
result of a work-related contingency arising out of
employment; and

E. Death benefits which include funeral and EC death

pension granted to beneficiaries of an employee who died as
a result of compensable sickness or injury.
 BENEFICIARIES
In case an employee dies as a consequence of a work-
related sickness or injury, who shall receive the income
benefits?
The beneficiaries of the covered member.

Who are considered as qualified beneficiaries?

The beneficiaries shall be either primary or secondary, and
determined at the time of employee’s death.
A. PRIMARY BENEFICIARIES
• The legitimate spouse living with the employee, or a legitimate spouse separated with the
employee at the time of the employee’s death until he/she remarries; and
• Legitimate, legitimated, legally adopted or acknowledged natural children, who are unmarried,
not gainfully employed, not over 21 years of age, or over 21 years of age provided that he/she is
incapacitated and incapable of self- support due to physical or mental defect which is congenital
or acquired during minority.

B. SECONDARY BENEFICIARIES
• The legitimate parents wholly dependent upon the employee
for regular support;
• The legitimate descendants and illegitimate children who
are unmarried, not gainfully employed, not over 21 years of age, or over 21 years of age provided
he/she is incapacitated
 FILING OF EC CLAIMS
Who may file the claim?
The employee or any member of his/her family can file for the EC benefits claim with the GSIS/SSS. The
employer may assist the employee or his/her family in filing the claim.

Can an employer claim for EC medical reimbursement?

The employer may claim for EC medical reimbursement in case he/she paid for the medical or
hospitalization expenses of the employee with work-related sickness or injury.

When shall EC claims be filed?

EC claims must be filed within a period of three years.
In case of sickness- from the last confinement, in case of multiple confinements due to the same illness, or
from the last time the employee was unable to report for work due to
illness, whichever is applicable;
In case of injury, from the time of the incident;
In case of death, from the date of death.
 FILING OF EC CLAIMS
When does the three year prescriptive period in the filing of EC claim stop?
Under EC Board Resolution No. 10-03-45 (Mar. 17, 2010), when a claimant filed a claim for
disability or death benefits before the SSS or the GSIS, either under the SSS law or the GSIS law,
the claim for EC benefits for the same incident should be considered as filed.

The filing of disability or death benefits either under the SSS law or the GSIS law within three
years from the time the cause of action accrued would stop the running of the prescriptive
period.

Should the sick leave credits be consumed first before filing the EC claims?
No, there is no need to consume sick leave or other similar benefits before EC temporary or
permanent disability can be filed. Considering that compulsory coverage of the employees
starts on the first day of employment, EC claim may be filed regardless of the presence or
absence of the sick-leave credits.
Where are EC claims filed?
Claim for EC benefit may be filed at the SSS for private sector employees, and at the GSIS for
government employees and uniformed personnel. It is recommended that the claim should be
filed at any GSIS or SSS branch nearest to the place of work or residence of the covered
employee.

What is the first step before an employee could file an EC claim?

The employee should notify his/her employer of his/her sickness or injury within five days from
the occurrence of the contingency. Notice to the employer is not necessary if the contingency
occurred during working hours, at the place of work and with the knowledge of the employer or
his/her representative.

How does one file an EC claim?

Proceed to the nearest SSS and GSIS branch to file for the EC benefits claims. Fill out the
prescribed forms and prepare supporting documents for your benefits claim. The list of the
documentary requirements are posted in the SSS (www.sss. gov.ph), GSIS (www.gsis.gov.ph)
and ECC (www.ecc.gov.ph) websites.
 FILING OF EC CLAIMS
What if the employer refuses to issue certificate of employment as a documentary requirement in
filing EC benefits claim?
ECC Board Resolution No. 00-03-0181 dated March 31, 2000 provides that other secondary evidence
which signifies the existence of employer-employee relationship between the company and the
covered employee may be accepted when the employer unjustly refuses to issue certificate of
employment.

The employee may provide:

1. Employment contract;
2. Pay slips duly issued by the company’s cashier or its
representatives; Previous certificate of employment duly signed by the employer or its representatives;
Other secondary evidence like notice of strike, quitclaims, waivers, memorandum issuance, office
order, office circular duly issued by the company or its representatives which signifies the existence of
employer-employee relationship between the company and the claimant or the covered employee;
Duly accomplished SSS sickness form signed by the employer or his representative filed with the
System.
 EC LOGBOOK
What is an EC logbook and what does it contain?
An EC logbook is used to chronologically record the sickness, injury or death of employees,
indicating the names, dates, and places of contingency, nature of the contingency and
absences. Every employer should maintain one. Entries in the logbook shall be made within 5
days from notice or knowledge of the contingency. Within 5 days after entry in the logbook, the
employer shall report to the System only those contingencies he deems to be work-connected.

What is the importance of EC logbook?

Considering that employers are no longer required to dispute the compensability of the EC
claims, the obligation to maintain and to record sickness, injury or death among their
employees is the most important participation of the employers to the reportorial requirements
of PD No. 626, as amended. In case of non-compliance and the incident has been declared as
work-connected, the erring employer shall be held liable to 50% of the lump sum equivalent of
the income benefit to which the employee may be found to be entitled. (Article 211 (c) of PD
No. 626, as re-numbered)
On the other hand, what should the employer do upon the employee’s submission of notice?
All entries in the employer’s logbook shall be made by the employer or any of his/her authorized
official after verification of the contingencies or the employee’s absences for a period of a day or
more. Upon request by the System, the employer shall furnish the necessary information about
any contingency appearing in the logbook, citing the entry number, page number and date. Such
logbook shall be made available for inspection to the duly authorized representative/s of the
System.

What if the employer refuses to provide a copy of the EC logbook?

Under Board Resolution No. 14-12-44, dated Oct. 27, 2014, the SSS or GSIS shall grant workers,
and/or their beneficiaries, with work-connected sickness, injury or death of whatever EC benefits
to which they are entitled despite the absence of recording of the said incident in the logbook.
Mere absence of a logbook shall not result in the suspension of evaluation of the claim. In the
event that a claim for disability or death has been declared as work-connected, the amount of
claim shall be provided in full by the Systems which shall impose the penalty to the employer as
provided under paragraph (c) of (Art. 211 of P.D. No. 626, as re-numbered).
 MONTHLY PENSION
What is the duration of the monthly income benefit for Permanent
Partial Disability (PPD) benefits?
How is monthly EC pension computed? (EC-SSS)

EC monthly pension is equivalent to 115% of the SS monthly pension for the same sickness or injury that is work-
related.

To compute the EC Monthly Pension (MP):

The SS MP shall be the highest of the following:

MP = 300 + (20% AMSC) + (2% AMSC X CYS) or the sum of: three hundred pesos and Twenty percent of the average
monthly salary credit (AMSC) and two percent of the average monthly salary credit (AMSC) multiplied by credited
years of service (CYS) in excess of 10 years

Forty percent (40%) of the AMSC; or One Thousand Pesos for members with less than 10 CYS; P1,200 with at least 10
CYS and 2,400
with at least 20 CYS

Multiply the SS MP to 1.15 (1.15 X SS MP)

 FUNERAL BENEFIT
How much is the funeral benefit under the ECP?

A funeral grant equivalent to twenty thousand pesos (Php 20,000)* shall be paid to help defray the cost of funeral
expenses upon the death of a
worker.

*(the approval of the increase of EC Funeral Benefits from P20,000 to 30,000 for public (ECC Board Resolution No. 16-
07-28) and for private sectors
(ECC Board Resolution No. 16-05-18) is being awaited from the Office of the President of the Republic of the Philippines)

Does the GSIS allow the simultaneous grant of GSIS and EC funeral benefits?

Yes, under Board Resolution No. 165 dated Nov. 13, 2014 in relation to GSIS Policy and Procedural Guidelines No. 267- 14,
beneficiaries of a
member who died due to work-related contingency while in active service shall be entitled to receive both EC and GSIS
funeral benefits.
 DOUBLE RECOVERY
Can an employee avail of simultaneous benefits under the Employees’
Compensation Program and under another law for the same contingency?

It depends. For private sector employees, the payment of benefits under the
Social Security Program does not bar the employee/
beneficiaries from receiving benefits under the EC Program, provided that the
disability or death is work-related.

For public sector employees, EC benefits are subject to the exclusiveness of

benefits as provided under the GSIS law.
 DOUBLE RECOVERY

What is the meaning of the “exclusiveness of benefits” provision under the

GSIS law in relation to P.D. No. 626, as amended?

According to Section 55 of R.A No. 8291 or the GSIS Law, whenever there are
other laws that provide similar benefits for the same contingency covered
by GSIS Law, the member who qualifies for the EC benefits shall have the
option to choose which benefit between the GSIS and EC will be paid to
him.

However, if the chosen benefit is less than the benefits provided by the
GSIS, the GSIS will only pay for the difference between the benefit chosen
as paid by the EC and the value of the GSIS benefit.
 DOUBLE RECOVERY
Can an employee separated from work still claim for EC benefits if the contingency
happened during his/her previous employment?

Yes, if the claim was filed within three years from the time of the accident. Otherwise, the
same may be barred by prescription (Disability due to Injury).

Yes, if the claimant can prove that his/her previous working conditions or nature of
employment caused the development of his/her illness.

However, the EC claim must be filed with the System within three years from the time the
cause of action accrued (Disability due to
Sickness).
 REMEDIES IF CLAIM IS DENIED
What if the claim for EC benefits was denied at the GSIS or the SSS branch?

The claimant may file a motion for reconsideration with the GSIS-Main Office, Pasay City or SSS
Main Office, East Ave., Diliman, Quezon City, as the case may be. If still denied, he/she may
appeal the System’s decision to the Employees’ Compensation Commission within 30 days from
receipt of the System’s decision.

What if the EC claim was granted by the GSIS or the SSS?

If granted by the GSIS, please refer to the GSIS website at www. gsis.gov.ph
If granted by the SSS, the EC benefit payments shall be remitted by the SSS to the member’s
designated bank under the Sickness and Maternity Benefits Payment thru-the Bank (SMB-PTB)
Program.
 REMEDIES IF CLAIM IS DENIED
For Persons with Work-related Disability (PWRD) separated from employment, the EC benefit will be paid
directly by the SSS to the PWRD/claimant through his/her single savings/current/ cash card/prepaid account in
any accredited banks under the SMB-PTB.

For this purpose, the PWRD/claimant, whose approved benefit amount is more than P1,000 and whose address
is within thirty (30)
kilometers to the nearest SSS-accredited bank, he/she is required to open a single savings or current account,
or to use his/her existing one
with an SSS-accredited bank, to which the benefit payment will be remitted.

If the PWRD/claimant does not have an existing bank account, the SSS shall issue a Letter of Introduction (LOI)
form that must be presented
to the SSS-accredited bank chosen by the PWRD/ claimant for the purpose of opening a single savings account
or cash card account.

The PWRD/claimant shall then be notified by SSS via email or text of their benefit payment.
 ECC QUICK RESPONSE PROGRAM
What is the ECC-QRP?

The Employees’ Compensation Commission’s Quick Response Program (QRP) provides immediate assistance to
workers who suffer from work-connected contingencies, or to their families who have to deal with work accidents
or sudden onset of occupational disease or death.
This is in the form of psycho- social counselling and assistance in the filing of EC claim with the GSIS or the SSS.

What are the benefits and services provided by the ECC-QRP?

1. Psycho-social counselling and stress-debriefing to victims and their families to help them cope with the
contingency;

2. Information on the Employees’ Compensation Program

(ECP); and

3. Assistance in the EC benefits claim application and preparation of EC benefits claim requirements.
 ECC QUICK RESPONSE PROGRAM
What is the ECC’s KaGabay Program?

The Employees’ Compensation Commission’s Katulong at Gabay sa Manggagawang may

Kapansanan or KaGabay Program is a special economic assistance program for persons with
work- related disability (PWRDs) who lost employment by reason of work-related sickness or
injury.

What are the benefits and services under the KaGabay Program?

1. Physical restoration which refers to the provision of physical or occupational therapy services
to PWRDs including prosthesis and assistive devices, subject to funding limitations.
2. Skills Training for re-employment so that the PWRDs can acquire new competencies, subject
to the PWRDs potentials and residual functional capacity.
3. Entrepreneurship seminars to accredited training institutions to enable the PWRD to set up
home-based business.
THANK YOU!