HR Talk: Top 15 Questions Answered Re: the Employee Compensation Program (Where You Get Paid If You Get Sick/Injured/Die At Work)

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The Employee Compensation Program and its Many Benefits

Everyone talks about the Philippine Social Security System (SSS) but stays mum about the Employee Compensation (EC) Program. When I started this subject, I was surprised on how so much information are out there about many benefits the EC Program, but the information is annoyingly kalat kalat, and it’s not easy to get to the bottom of the program as the math is slightly more complicated than that of the SSS.

Regardless, the Employees’ Compensation And State Insurance Fund (with Implementing Rules), which was covered by Presidential Decree No. 626 that was signed by former President Ferdinand Marcos in December 1974, and later became effective in January 1975, is still an integral part of a Filipino worker’s life, so I’ve decided to boldly tackle the challenge and try to write/simplify/explain the EC Program to the best of my ability.

Long story short, there’s three things you need to know about the EC Program:

  1. The Employee’s Compensation Commission is attached to the DOLE in terms of policy coordination and guidance.
  2. Despite its attachments, the Employees’ Compensation Commission (ECC) is still a SEPARATE agency from the SSS, PhilHealth and Pag-IBIG. This means, they are NOT the same.

The difference between the ECC and the rest is that ECC is tasked to provide compensation to employees in the event of WORK-RELATED liabilities such as sickness, disability accidents, injuries or death,

Photo Source: Employees’ Compensation Program Facebook

Here are the injuries compensable by the EC Program:

These include the following:

  1. Loss-of-income benefits;
  2. Medical services, appliances and supplies;
  3. Carers’ allowance;
  4. Rehabilitation services;
  5. Death benefits
  6. Funeral benefits

NOTE: For the disability and death to be compensable, the injury must be the result of an accident arising out of or in the course of employment. So if you were on vacation with your family and you became injured, hindi na po sakop ng ECC yung benefits mo.

Historically, here are what most of the EC Claims had been given:


Source: PSA Government Statistics, 2017

If you look more into the ECC, you can see that they have other offerings other than giving out money. The other jobs of the Employee’s Compensation Commission include:

  • To implement 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 Employees’ Compensation Commission Quick Response Team Program (ECC-QRP) is an immediate assistance extended to help workers who suffer from work-connected contingencies or their families who have to deal with work accidents or sudden onset of occupational disease or death, in the form of psycho-social counselling and assistance in the filing of EC claim with the GSIS or the SSS. ECC-QRP provides the following benefits/services:
    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 the ECC-Quick Response Team Program.
    3. Assistance in the processing of EC requirements.
    4. Facilitation on the prompt release/Payment of the EC benefits to worker/beneficiary.

To make things simple, I have divided this blogpost to The Top 15 Questions Answered about the Employee Compensation Program (Where You Get Paid If You Get Sick/Injured/Die At Work):

1. Who is Covered by the EC Program?

2. When Does Employee Coverage to the EC Program Start?

3. How Much EC Contributions Do Employers Need to Pay Per Month?

4. What is the General Mechanics on How to File an EC Claim and their Method of Payment (Hint: The Member Will Get their Money Directly)?

5. Who Can File for the EC Benefit?

6. Where Can I File My Claims if I Get a Work-Related Injury, Accident, Sickness or Death?

7. What are the Required Documents One Would Need To File an EC Claim?

8. Up to How Long is the Time Limit Employees Can Ask ECC to Compensate For Their Injuries?

9. EC Sickness Claims: What are the Types of Diseases that are Compensable by the EC Program?

10. Can COVID-19 Sickness/Death Be Eligible for EC Claim?

11. EC Disability Benefit: What Does These Include?

12 What Are the Other Benefits Does the ECC Provide to its Members? 

13. Death EC Claims: Who are the Employee’s Beneficiaries?

14. My EC Claim Was Denied by the SSS/GSIS. Can I Appeal the Decision?

15. What if My Employer Did NOT Remit my EC Benefits?

Once again, it’s a long informative post so let’s start, shall we?
————————————————————

The Top 15 Questions Answered about the Employee Compensation Program (Where You Get Paid If You Get Sick/Injured/Die At Work):

1. Who is Covered by the EC Program?

All private and government employees are covered by the ECC Program.

In 2019, the EC Program opened up to self-employed individuals IF they registered for SSS membership at the nearest SSS branch AND as soon as they pay their first EC contribution.

The payment of EC contributions depends on the self-employed member’s DECLARED monthly salary credit of his/her earnings at the time of registration. Self-employed members will pay P10 per month if they have a monthly salary credit (MSC) of P14,749.99 or below, and P30 per month if they have a MSC of Php 14,750.00 and above.

Source: EC FAQ Handbook

Here’s how a self-employed worker is classified:

  • He/she is engaged in any trade or business or occupation, but has no employer other than oneself, and derives an income of at least P2,000 a month from his or her physical and mental efforts, and who is not over 60 years of age, during the time of initial coverage.
  • Self-employed professionals who have their own business offices;
  • Partners, single proprietors of businesses, and Directors or Trustees of the Board of corporations duly registered with appropriate government agencies;
  • Actors, directors, scriptwriters, and news correspondents who do not fall within the definition of the term ‘employee’ in Section 8(D) of the SS Law;
  • Professional athletes, coaches, trainers, jockeys, individual farmers, and fisher folks;
  • Workers in the informal sector such as market and ambulant vendors, transport workers, and those similarly situated;
  • Contractual and job order personnel engaged by the government through a Contract of Service and who are not covered under the GSIS Law; and,
  • Any other self-employed as determined by the Social Security Commission is subject for compulsory coverage, if for initial membership.

I highly suggest that if given a choice, the self-employed individual remit the highest Php 30.00 EC payment for a higher MSC. Anyway, Php 30.00 is not a big amount versus the benefits you may get at work.

2. When Does Employee Coverage to the EC Program Start?

Please note that the employee DOES NOT contribute to the ECC Program. Only the employer SOLELY contributes monthly to the ECC. Hence, unlike the SSS which requires a certain number of contributions to qualify a worker, for the EC Program, coverage begins from the first day of the employees’ employment.

EC is clear on the deadline — “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.”

This means you only need ONE (1) posted contribution to be covered by the EC Program. This payment continues throughout the worker’s employment, and can only be stopped when on the month the worker dies, becomes disabled, or is separated from employment. The employer can also stop paying for the EC if and when the worker stops receiving any wages or salary. This is very common during the ECQ lockdown. (Art. 189 [183], par. (d) P.D. No. 626 as re-numbered) when many workers in the Philippines are under a no-work-no-pay status.

3. How Much EC Contributions Do Employers Need to Pay Per Month?

Actually, it’s super cheap, ranging from Php 10.00 to Php 30.00 per month:Source: EC FAQ Handbook

The EC is incorporated and remitted with the SSS Monthly Contributed as you can see in the newest SSS Contribution table below. I’ve highlighted the ECC portion of the mandated benefits that employers are required to pay for from the first month of employment:

The amount is low, but many employers might not pay for the EC because of the hassle of paying for the SSS. While they are two separate benefits, they often go together when it comes to payment.

4. What is the General Mechanics on How to File an EC Claim and their Method of Payment (Hint: The Member Will Get their Money Directly)? 

The Mechanics of Filing an ECC Claim:

The employee should notify his/her employer of his/her sickness or injury within five days from the occurrence of the contingency.

NOTE: Notice to the employer is NOT NEEDED if the contingency occurred during working hours, at the place of work and with the knowledge of the employer or his/her representative.

Unlike the SSS Sickness Benefit, 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.

Under the program, the employer is given 5 DAYS (5) upon receipt of the incident report involving a particular employee to record it in the company logbook. Entries in the logbook must be made within five days from notice of the incident.

The details should include chronologically the sickness, injury, or death of the employee, along with the name, date, place of contingency, and absences.
Source: EC Website, EC Logbook Template

4-A. What to Do If the Employer Refuses to Provide a Copy of the EC Logbook?

Under Board Resolution No. 14-12-44, dated Oct. 27, 2014, SSS and GIS are still ordered to grant the EC benefits the workers and/or their beneficiaries are entitled to even without the 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 ECC. The agency will also impose the penalty to the employer as provided under paragraph (c) of (Art. 211 of P.D. No. 626, as re-numbered) for their negligence.

Within five days after entry in the logbook, the employer must report to the SSS those contingencies if the employer classifies them as work-connected.

EC claims must be filed within a period of three years from:

  • In case of sickness, from the time the employee was unable to report for work;
  • In case of injury, from the time of the incident;
  • In case of death, from the date of death.

IMPORTANT: However, no compensation will be given if the injury, sickness, disability, or death of the member was caused by drunkenness, suicide, willful intention to injure or kill himself/herself or another person, or due to notorious negligence.

4-B. What will happen if the employer fails to record the sickness, injury or death of any of the employees in the logbook?

  • Failure of the employer to keep a logbook or to give false information or withhold material information already in possesion shall make the employer liable for fifty per cent (50%) of the lump sum equivalent of the income benefit to which the employee may be found to be entitled, the payment of which shall accrue to the State Insurance Fund.
  • In case of payment of benefit for any claim which is later determined to be fraudulent and the employer is found to be a party to the fraud, such employer shall reimburse the System the full amount of the compensation paid.

4-C. Where will EC Remit the Claims to the Worker?

Once the filed EC claim is APPROVED by the SSS, SSS shall remit the EC Benefit payment to the employee-member’s designated bank account under the Sickness and Maternity Benefits Payment thru-the-Bank Program. Please refer to my previous blog post, HR Talk: How to Enroll Your Bank Details Onto MySSS for details on how to go about it.

For employees with work-related disability 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 of the accredited banks under the SMB-PB.

5. Who Can File a Claim with the ECC?

The employee or any member of his/her family can file for the EC benefits claim with the GSIS/SSS.

The employer may also assist the employee or his/her family in filing the claim.

If the employer paid medical or hospitalization expenses of the employee with work-related sickness or injury, the employer may be the one to claim for EC medical reimbursement.

6. Where Can I File My Claims if I Get a Work-Related Injury, Accident, Sickness or Death?

For private employees, the EC Benefit claims can be filed at any of the SSS branch nearest the workplace or residence of the member.

For government employees, they can approach GSIS Regional Office for assistance. If a job-order employee has a GSIS membership, then yes, they are also covered by the EC Program.

7. What are the Required Documents One Would Need To File an EC Claim?

You need to submit the following to SSS:

A. A Certificate of Employment (COE) given by the employer or his authorized
representative that includes the description of the workers’ actual duties and responsibilities performed during his time when the sickness/injury happened.

If the employer refuses to provide a COE, ECC Board Resolution No. 00-03-0181 dated March 31, 2000 stated that other documents that signify the existence of employer-employee relationship between the company and the covered employee can be submitted. These documents include:

  • Their employment contract;
  • Pay slips duly issued by the company’s cashier or its representatives;
  • Previous COEs duly signed by the former 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.

B. Required EC Prescribed Forms from the SSS to be properly filed and endorsed by the employer or his duly authorized representative. You can download the forms here on the official ECC site, or are as follows:

KaGabay: The Employees’ Compensation Commission Katulong at Gabay sa Manggagawang may Kapansanan or KaGabay Program is a special economic assistance program for occupationally-disabled workers (ODWs) who lost employment by reason of work-related sickness or injury. Qualified for the KaGabay program are those EC members with approved EC disability benefits.

What are the benefits and Services of the KaGabay program?

  1. Physical restoration which refers to the provision of physical or occupational therapy services to ODWs including medical appliances.
  2. Skills Training for re-employment so that the ODW can acquire new skills but subject to the ODWs potentials and residual functional capacity.
  3. Entrepreneurial Training to accredited training institutions to enable the ODW to set up home-based business.

SSS Forms (For Private Employees)

GSIS Forms (For Government Employees)

C. Supplementary documents depending on the type of claims filed:

  • For sickness claims, the company must also file the pre-employment medical check-up done at the time before employment. If there is none, the company must provide a certification that the worker was physically fit when hired.
  • For injury claims, an Accident Report signed signed by the worker’s
    immediate supervisor and by the human resource officer if the accident happened within the company premises. If the incident happened outside the company premises, a Police Report is required.
  • For death claim, the following documents are necessary:
    • The worker’s Death Certificate; and
    • Marriage contract if applicable OR Birth Certificate of the deceased worker if single; and
    • Birth certificate of children below 21 years of old (Notice: They must be certified true copies issued by the National Statistics Office (NSO))

D. A certified true copy of the page on the company logbook containing the entry for the particular sickness or accident, and:
Source: EC Website, EC Logbook Template

E. Certified true copy of the medical findings of the attending doctor or the hospital records

The ECC Program was able to make a super cute infographics on the types of documents you need that summarizes what I wrote above. It’s too cute not to share:


Source: Employees’ Compensation Commission Website, For Private Employees

Source: Employees’ Compensation Commission Website, For Government Employees

8. Up to How Long is the Time Limit Employees Can Ask ECC to Compensate For Their Injuries?

EC claims must be filed within a period of three years from:

  • In case of sickness, from the time the employee was unable to report for work;
  • In case of injury, from the time of the incident;
  • In case of death, from the date of death.

IMPORTANT: For the injury and the resulting disability or death to be compensable, the
injury must be the result of an accident that arose out of or in the course of employment.

These may include such scenarios:

  1. Happened at the workplace
  2. Happened while performing official duties or functions
  3. Happened outside of workplace but it occurred while the worker is performing an order of his employer
  4. When going to or coming from work. IMPORTANT: It must be via the normal route, time and routine, and should not deviate.
  5. While ministering to personal comfort. This is defined as acts performed by an employee within the time and space limits of his employment to administer to his personal comfort such as satisfaction of his thirst, hunger and physical demands. or to get himself a jacket. For example:
    1. You got hit by a and died bus while buying your merienda (satisfying hunger) in between work hours
    2. You got stabbed while taking a bathroom break while on duty
  6. While in a company shuttle bus or when living in a company paid barracks
  7. During a company sponsored activity
  8. Death through assault while doing work duties

Legal Basis: ECC Guidelines on the Evaluation of Legal Claims, Circular No. 03-709

However, if the injuries involve the following, there is NO EC CLAIM to be had:

  1. Being drunk or high due to alcohol or drugs to the extent that his/her acts, words, or conduct are affected.
  2. Willful intent to injure or kill oneself or another as it shows deliberate intent on the part of the employee to injure himself or others.
  3. Notorious negligence: The worker deliberately ignored safety measures or established warnings and got hurt.

Legal Basis: ECC Board Resolution No. 93-08-0068. No. 7, Paragraphs 7. 1-7-3, August 5, 1993.

9. EC Sickness Claims: What are the Types of Diseases that are Compensable by the EC Program?

IMPORTANT: Before the sickness is qualified for the EC Benefit, it must be proven that the employee’s disease is part of the LIST OF OCCUPATIONAL AND WORK-RELATED DISEASES. If the disease is not in the list, they can still file if they think they got the illness from work. Hence, they must prove that the disease is WORK-RELATED to be eligible for EC Benefit. 

There are Thirty-Two (32) Different Diseases that are compensable by the ECC Program as follows:

Downloadable Docs:  List of Occupational and Compensable Diseases under the Employees’ Compensation Program Brochure.PDF and in Printer-Friendly Word Document.

If you file for a claim, please ensure that the specific requirements per disease are followed. For an occupational disease and the resulting disability or death to be compensable, the ECC requires ALL of the FOUR (4) conditions to be satisfied:

     A. The employee’s work and/or the working conditions must involve risk/s that caused the development of the illness,

     B. The disease was contracted as a result of the employee’s exposure to the described risks;

     C. The disease was contracted within a period of exposure and under such other factors necessary to contract it;

     D. There was no deliberate act on the part of the employee to disregard the safety measures or ignore established warning or precaution.

NOTE: If it was found that the The employer failed to provide adequate protection and safety devices, the employer shall be subject to the penalty imposed by Article 200 of the Code, as follows:

ART. 200. Safety devices. – In case the employeeâ’s injury or death was due to the failure of the employer to comply with any law or to install and maintain safety devices or to take other precautions for the prevention of injury, said employer shall pay the State Insurance Fund a penalty of Twenty-five percent (25%) of the lump sum equivalent of the income benefit payable by the System to the employee. All employers, specially those who should have been paying a rate of contribution higher than required of them under this Title, are enjoined to undertake and strengthen measures for the occupational health and safety of their employees.

NOTE #2: A requirement of the EC Program is that the employer should have required all employees to undergo a pre-employment examination of all prospective employees, OR have a FIT TO WORK CERTIFICATION from his first week of work. If the company has work that exposes their employees to a higher risk of occupational disease, a periodic medical examination must be done regularly.  

IMPORTANT: Not all diseases are compensable. Only diseases caused by work OR the working environment are compensable. This means that the disease is compensable only if the conditions or risk factors on the job caused you to be sick.

10. Can COVID-19 Sickness/Death Be Eligible for EC Claim?

In an February 2020 online published by the Employees’ Compensation Commission (ECC), the ECC Officials already confirmed that employees infected by the COVID-19 virus can file for EC benefit thanks to the Increased Risk Theory.

ECC Director Executive Director Stella Banawis stated, “In the event an employee acquires the virus, it can be compensable under the EC Program through Increased Risk Theory provided that it was obtained by the employee in the performance of his or her employment.” 

In short, COVID-19 is covered because even though it’s not included in the EC Disease list, if the worker can prove that he/she most likely contracted the disease proof because he went to work, then yes, he can/she can avail of EC Sickness under the increased-risk theory.

So the answer is YES but with conditions — You will need a POSITIVE RT-PCR Test for you to be considered, and with COVID-19, you can also claim ONLY ONCE.

See the gist as follows:

Source: GovernmentPH

Please note that the EC Claim is SEPARATE from the SSS Sickness Benefit. You can avail of both if you got sick, and the sickness/accident occurred in the workplace. To learn more how to apply for the SSS Sickness Benefit, you can check out my blog post:

HR Talk: Top 10 Questions Re: SSS Sickness Benefit Answered

10-A. To file for a claim, here are the basic minimal requirements:

  • Completed SSS Sickness Notification Form, with licensed doctor’s signature and doctor’s PRC ID No.
  • Completed SSS EC Accident/Sickness Report
  • A positive RT-PCR (Laboratory) test result (Original or Certified True Copy)
  • Certificate of Employment (COE) from the company declaring that the employee’s last day of work before contracting to contracting COVID-19. In other words, the employee was ON DUTY when he/she contracted COVID-19
  • Photocopy of EC Logbook indicating the patient contracted disease in workplace
  • Photocopy of TWO (2) valid IDs preferably your company ID, or any SSS/GSIS or other government-issued IDs
  • Manual DTR and Printed DTR (Certified True Copy with Seal) – Optional
  • Medical Abstract / Medical Certificate (Original or CTC) showing that the worker is COVID-19 positive. It must be signed by a licensed doctor.
    • If you were home quarantined BECAUSE you were positive, please get a 14 day quarantine certificate from your barangay health official that he/she is cleared. If they refuse to certify, seek help from the closest health center from residence.
  • For overseas seafarers, they ALSO NEED TO present the following:
    • Their Seaman’s Book/SIRB ID page/Passport ID page and passport page with stamp of arrival in the Philippines
    • A copy of their Overseas Employment Certificate covering overseas employment during the pandemic and repatriation because of COVID-19.

10-B. Can you file for Your EC Benefit Online?

Yes, you can file your SSS Sickness Notification online. However, you must submit the rest of the hard copy of the documents in the SSS dropbox in your employer’s SSS branch:

  • Hard copy of your SSS Notification Form that has the signature of your physician
  • RT-PCR Results
  • Medical Certificate
  • Two (2) copies of Valid ID of worker

If you cannot submit complete documents, you can still try your luck. But the less you submit, the more likely your EC Claim request might be disapproved. Approval will arrive after a few days or weeks.

11. EC Disability Benefit: What Does These Include?

Loss of Income Benefit from Work-Caused Disability

Under the ECP, it is not the illness or injury that is compensated. Instead, it is the Loss of Capacity to Generate Income as a result of a worker’s INCAPACITY TO WORK (DISABILITY) because of his work-related illness or injury.

Legal Source: EO No. 54, Increasing Employee’s Compensation in the Private Sector, and Carer’s Allowance in the Public Sector, 2018

Specifically, ECP classifies disabilities into THREE classifications:

  1. TEMPORARY Total Disability (TTD): If the injury puts the worker out of commission/gainful occupation for a continuous period of up to 120 days, except where such injury/sickness still requires medical attendance (Rule VII, Sec. 2 (a) in relation to Rule X, Sec. 2 (a) Amended Rules on Employees’ Compensation)
  2. PERMANENT TOTAL Disability (PTD): If the injury puts the worker out of commission/gainful occupation for over a continuous 120 days, except as otherwise provided for in Rule X of these Rules:
    • This status does NOT require 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; and
      e. Such cases as determined by the System and approved by the ECC
    • Guaranteed for life if disability remains until death of the worker, but may be suspended due to the following:
  3. Permanent Partial Disability (PPD):
    • If you lose or lose the use of a body part, which includes function loss
    • Lump sum or monthly pension for PPD per ECC schedule
    • Monthly Income Benefit for Permanent Loss of the Use of Body Part or Permanent Partial Disability (PPD):

12. What Are the Other Benefits Does the ECC Provide to its Members? 

Here are the other benefits/services offered by the ECC:

  1. Medical Benefits:Ward services for hospital confinement. NOTE: The medical services are limited to ward services during confinement ONLY;
  2. 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.Source: EO No. 54, Increasing Employee’s Compensation in the Private Sector, and Carer’s Allowance in the Public Sector, 2018
  3. Carer’s Allowance: P1,000.00/month for both private and public sector employees. Granted if the worker can prove he is permanently and totally disabled and has difficulty taking care of basic personal needs.
    Updated: EO No. 54, Increasing Employee’s Compensation in the Private Sector, and Carer’s Allowance in the Public Sector, 2018
  4. Death Benefits: Funeral benefits: Php 30,000 to one of the following: (a) surviving spouse; (b) legitimate child who spent for funeral services; (c) any other person who can show proof of his having paid for the funeral expensesEC monthly income benefit pension for the spouse, and a separate pension for up to FIVE (5) dependent children below 21 years old.Source: GovernmentPH

13. Death EC Claims: What Can You Get and Who are the Employee’s Beneficiaries?

AFP PHOTO / TED ALJIBE

Death Benefits under the EC includes funeral and death benefit claims:

     1. Funeral Benefits: Php 30,000 to one of the following: (a) surviving spouse; (b) legitimate child who spent for funeral services; (c) any other person who can show proof of his having paid for the funeral expenses.


Source: BOARD RESOLUTION NO. 20-07-13: Granting of EC Funeral Benefit to the Qualified Beneficiaries of Covered Members Who Died of Work-Related Causes Despite the Absence of Proof of Expenses for Funeral Services Further Amending for This Purpose Rule XIV, Section 1 of the Amended Rules on Employees Compensation, July 2020

Historically, funeral benefits started at only Php 3,000.00 (Article 200 (194), par. (d) of P.D. No. 626 as amended by Sec. 3, E.O. 179, dated June 1, 1987).  In 2013, it was increased to Php 10,000.00 (Executive Order (E.O.) No. 135, Series of 2013). In 2014, it was then increased to Php 20,000.00 for both public and private sectors (E.O. No. No. 167, Series of 2014). Finally, on July 17, 2017, President Rodrigo Roa Duterte authorized the increase of amount of EC funeral benefit for both public and private sectors from Twenty thousand pesos (P20,000.00) to Thirty  thousand pesos (P30,000.00) (E.O. No. 33, Series of 2017).

Hence, the rules for funeral benefit are as follows:

Since COVID-19 pandemic struck and many Filipinos had died, the mechanics of getting the EC Funeral Benefits have now changed due to the logic of helping qualified EC beneficiaries who died of COVID-19 infections due to their work or the work environment may find it easier to get their EC Benefits. Hence, the rules were amended to as follows:

“Section 1.1. Coverage. The funeral benefit shall be granted to the qualified beneficiaries of  covered members who died of work-related causes in both public and private sectors despite the absence of proof of expenses for funeral services.

“Section. 1.2. Application of the Equal Protection of the Law Principle. Funeral benefit shall be granted to all work- related incidents of deaths to remove any doubt of inequality and in adherence to the equal protection of the law principle.

“Section 1.3. Order of Payment. Funeral benefit shall be granted by the Systems to the qualified beneficiaries in the following order:

(a) “Legitimate surviving spouse;
(b) “In the absence of the legitimate surviving spouse – to the legitimate dependent children
(c) “In the absence of qualified primary beneficiaries – to the illegitimate dependent children beneficiaries
(d) In the absence of dependent illegitimate children – to the surviving dependent parent of the covered member. If both dependent parents are still  alive, the funeral benefits shall be divided
(e) In the event that the deceased covered members have no qualified beneficiaries at the time of their work-connected deaths, the funeral benefit shall be retained in the State Insurance

“Section 1.4. Determination of Qualified Dependents. The Systems shall determine the qualified dependents at the time of death of the covered member. For this purpose, the Systems may require the submission of proof of relationship such as, but not limited to, Marriage and/or Birth Certificates.

The funeral benefit shall be provided after the System has declared the following in the evaluation of the claim:

a. Death due to sickness – causal relationship between the death and the working conditions of the covered member;
b. Death due to injury – causal relationship between the death and the work related accident, or
c. Death of EC Permanent Total Disability (PTD) pensioner – the cause of death is a complication or natural consequence of previously compensated PTD.

Source: BOARD RESOLUTION NO. 13-07-20,  Prescribing the Guidelines on the Grant of EC Funeral Benefit for the Public Sector

     2. Pension for the Family: EC monthly income benefit pension for the spouse, and a separate pension for up to FIVE (5) dependent children below 21 years old.

Source: EO No. 54, Increasing Employee’s Compensation in the Private Sector, and Carer’s Allowance in the Public Sector, 2018

How is the Monthly Pension Computed?


Source: Frequently-Asked Questions about the Employees’ Compensation Program, June 2017

The beneficiaries can be either primary or secondary, and determined at the time of employee’s death.

PRIMARY BENEFICIARIES:

  1. The legitimate spouse living with the employee at the time of the employee’s death until he remarries; and
  2. Legitimate, legitimated, legally adopted or acknowledged natural children, who are unmarried, not gainfully employed, below 21 years of age, or over 21 years of age provided he is incapacitated and incapable of self-support due to physical or mental defect which is congenital or acquired during minority.

Primary beneficiaries shall have priority claim to death benefits over secondary beneficiaries. Whenever there are primary beneficiaries, no death benefit shall be paid to his secondary beneficiaries.

The following beneficiaries shall be considered secondary:

  1. The legitimate parents wholly dependent upon the employee for regular support;
  2. 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 is incapacitated and incapable of self-support due to physical or mental defect which is congenital or acquired during minority.

If the deceased member has no primary and secondary beneficiaries at the time of death, the benefit will accrue to the EC fund.

14. My EC Claim Was Denied by SSS/GSIS. Can I Appeal the Decision?

Yes, you can.


Source: JDP Consulting

If the EC claim was denied by SSS/GSIS, the worker can file a request for reconsideration with the GSIS or SSS main office. 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. They can do so by writing a letter of appeal to the Employees’ Compensation Commission. To appeal for reconsideration with the ECC, the claimant may either:

  • Go to the nearest ECC offices in your area, or
  • Call the ECC Public Assistance Center at telephone number: (02) 896 7837, or
  • Email them at pac@ecc.gov.ph

15. What if my Employer Did NOT Remit my EC Benefits?

Grabe naman yung employer mo. Php 30.00 na nga lang per month, ayaw pa maghulog?

Any violation under this Rule shall be penalized as follows:

A. Any employer who is delinquent in his contributions shall be liable to the System for the benefits which may have been paid to his employees or their dependents, and any benefit and expenses to which such employer is liable shall constitute a preferred lien on all his property, real or personal, over any credit except taxes:

B. The payment by the employer of the lump sum equivalent of such liability shall absolve him from the payment of the delinquent contributions due and payable during the calendar year of the contingency and penalty thereon with respect to the employee concerned, but said employer shall be subject to criminal liability;

C. In case of such delinquency the employer or responsible official who committed the violation shall be punished with a fine of not less than P1,000 nor more than P10,000 and/or imprisonment for the duration of the violation or non-compliance or until such time that a rectification of the violation has been made, at the Court’s discretion;

D. If any contribution is not paid to the SSS as prescribed under these Rules, the employer shall pay besides the contribution a penalty thereon of 3% percent a month from the date of the contribution falls due until paid.

In short, the employer is legally obliged to still give the worker or his benefits to the benefits the worker should have gotten if their ECC was paid, AND pay the amount that was supposed to be remitted.

Note: Under ECC Resolution No. 1243 dated Jan. 18, 1979, the System shall pay the employee or his dependents all benefits due them under PD 626, as amended, without prejudice on its part to proceed against the erring employer.

For more information on the ECC Program, you can contact them directly in:

EMPLOYEES’ COMPENSATION COMMISSION
ECC Building, 355 Sen. Gil J. Puyat Avenue, Makati City
Tel. Nos. : 896-7837; 899-4251 loc. 239, 227 & 228
Telefax No. : 897-7597
Website : http://www.ecc.gov.ph
Facebook : http://www.facebook.com/ecc.official
E-mail add. : info@ecc.gov.ph

Regional Extention Units:

ECC-REU CAR
Address: Department of Labor and Employment (DOLE) Cabinet Hill, Baguio City
Tel. No. (074)-619-0275 / Mobile. No. 09493022984 / Email: car@ecc.gov.ph

ECC REU REGION 1
Address: Room 503 Juanita Commercial Building, Quezon Ave., San Fernando, La Union
Tel. No. (072) 607-0045 / Email: reu1@ecc.gov.ph

ECC REU REGION II
Address: Employees’ Compensation Commission – REU 2
Dalan na Pappabalo, Regional Government Center, Carig Tuguegarao City
Tel: No.: 09068408187 / 09265151178 / Email: reu2@ecc.gov.ph

ECC-REU REGION III
Address: SWLC Bldg., Government Center, Brgy. Maimpis, City of San Fernando, Pampanga
Tel. No (045) 861 4383/ (045) 455- 1614 / Email: reu3@ecc.gov.ph

ECC REU REGION IV-A
Address: Department of Labor and Employment (DOLE), 3rd and 4th floors, Anderson Bldg. II, Brgy. Parian, Calamba, Laguna
Tel. No. (049) 545-7360 / Fax. No. (049) 545-7357
Email: reu4a@ecc.gov.ph

ECC- REU REGION V
Address: Department of Labor and Employment (DOLE) Doña Aurora, Old Albay District, Legaspi City
Tel. No. (052) 742-1350 / Mobile No.: 0950-4603848 / Email: reu5@ecc.gov.ph

ECC REU VI
Address: Department of Labor and Employment (DOLE), Swan Rose Building Commission, Civil Street, Jaro, Iloilo
TeleFax: (033) 3208026 / (033) 509-0400 / Email: reu6@ecc.gov.ph

ECC-REU No. VII
Address: Department of Labor and Employment (DOLE), Gorordo Avenue, cor. Gen. Maxilom Avenue, Cebu City
Tel. No. (032) 266-7230 / Email: reu7@ecc.gov.ph

ECC REU No. VIII
Address: Department of Labor and Employment, DOLE Compound, Trece Martires Street, Tacloban City
Tel. No. 053-3255236 / Fax. No. 053-5234220 / Email: reu8@ecc.gov.ph

ECC-REU No. IX
Address: Department of Labor and Employment (DOLE), 3/F QNS Bldg., Veterans Ave. Extension, Tumaga Road, Zamboanga City
Tel. No. (062) 955-1549 / Email: reu9@ecc.gov.ph

ECC-REU NO. X
Address: Ground Floor, Monte Carlo Bldg., RER Subdivision, Kauswagan Highway, Cagayan de Oro City
Tel. No: (088) 231-2041 / Mobile No: 09355117495 / 09124764576
Email: reu10@ecc.gov.ph

ECC-REU NO. XI
Address: Department of Labor and Employment (DOLE), 4th Flr., Davao Ching Printers Bldg. cor. Dacudao Avenue and Lakandula Street, Agdao, Davao City
Tel. No. (082) 2274289 / Fax. No. (082) 2262671 / Email: reu11@ecc.gov.ph

ECC-REU XII
Address: Department of Labor and Employment (DOLE), 314 Upper Paredes Street, Koronadal City, South Cotabato
Tel. No. (083) 228-2190 / Fax. No. (083) 228-2190 / Email: reu12@ecc.gov.ph

ECC-REU XIII (Caraga Region)
Address: Department of Labor and Employment (DOLE), Nimfa Tiu Building, J.P. Rosales Avenue, Butuan City
Tel. No. (085) 342-9502 / Email: reu13@ecc.gov.ph

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