21 EMPLOYEES’ COMPENSATION PROGRAM

21.1 Objectives
At the end of the session, the participants will be able to:

- Cite the main functions of Employee’s Compensation Commission

- Explain the purpose of Employee’s Compensation Plan (ECP), coverage and
benefits
- Identify the compensable diseases and injuries 


- List the types of Disability and their corresponding benefits 
Attaining ECP
Benefits

21.2 Main functions of ECC

Work Contingency Prevention is not a 100% guarantee against work-connected sickness, injury or
death. That’s why there is the Employee’s Compensation Program.
https://youtu.be/IeVqkthwrBo?list=PLHFy0zzxi4Bn1un9XbO7DYKmMyK7q-hFJ
Employee’s Compensation Program
Designed to provide employees and their families with income benefits and medical and other
benefits in the event of work-connected sickness, injury or death.

21.3 Purpose of ECP and employees covered of benefits

21.3.1 Who are covered under the Employees’ Compensation Program?
1. Private sector workers who are compulsory members of the Social Security System
(SSS) and sea-based Overseas Filipino Workers (OFWs).
2. Government sector employees who are members of the Government service
Insurance System (GSIS), including members of the Armed Forces of the Philippines,
elective government officials who are receiving regular salary and all casual,
emergency, temporary and substitute or contractual employees.
21.3.2 When shall coverage of the employees under the Employees’
Compensation Program start?
Employees shall be covered starting on the first day of their employment.

21.3.3 Compensable Diseases

 Not any disease is compensable
 Only diseases caused by work or the working environment is compensable
 List of 30 Occupational Diseases with specific conditions set
 Conditions or risk factors on the job must be present for the
 disease to be compensable
 Other diseases not in the list may still be compensable if employee can establish causal
connection with
• the nature of his work or
 • the working environment

21.3.4 Compensability of Injuries

For the INJURY and the resulting disability or death to be compensable, the injury must be the
result of an accident arising out of or in the course of employment.

A. Work- Connected Injuries

Seven Instances Where Injury can be Compensable

 Happened at the workplace
 2.Happened while performing official function
 Outside of workplace but performing an order of his employer
 When going to or coming from work
 While ministering to personal comfort
 While in a company shuttle bus
 During a company sponsored activity
 Assault in the workplace, going to/coming from work, outside but doing official
function

B. Excepting Circumstances
 Intoxication
 Notorious negligence
 Willful intent to injure oneself or another
21.3.5 ECP benefits
A. ECP Benefits
 Loss of Income Benefit - Medical Benefits Under the ECP, it is not the illness or injury that is
compensated, it is the incapacity to work (DISABILITY) as a result of the illness or injury that
is being compensated.
 Carer’s Allowance
 Death Benefits
 Rehabilitation Services

Figure 21.3-1 Primary Benefits (Employees Compensation Commission, 2018)

BENEFIT DESCRIPTION AMOUNT

TEMPORARY TOTAL DAILY ALLOWANCE Minimum Php 110/ day

DISABILITY or SICKNESS Maximum Php 480/day
(TTD)
PERMANENT PARTIAL MONTHLY PENSION Based on salary credit and
DISABILITY (PPD) length of employment (years)

PERMANENT TOTAL MONTHLY PENSION + 10% FOR Based on salary credit and
DISABILITY (PTD) EACH QUALIFIED DEPENDENT length of employment (years)
CHILDREN
DEATH MONTHLY PENSION + 10% FOR Based on salary credit and
EACH QUALIFIED DEPENDENT length of employment (years)
CHILDREN
FUNERAL ONE-TIME PAYMENT Php 30,000

Figure 21.3-2 Secondary Benefits

BENEFIT DESCRIPTION AMOUNT

MEDICAL REIMBURSEMENT OF OUT-OF-POCKET Reimbursement based on

MEDICAL EXPENSES expense limitations under
the Program

REHABILITATION PROVISION OF: Based on expense

1. PHYSICAL/OCCUPATION limitations
AL THERAPY under the program
2. ARTIFICIAL
LIMBS/ASSISTIVE DEVICES
3. LIVELIHOOD OR
VOCATIONAL TRAINING
COURSES

CARER’S ALLOWANCE SUPPLEMENTAL ALLOWANCE FOR Php 1, 000 per month

CARE-GIVING NEEDS OF
PERMANENTLY DISABLED EC
PENSIONERS

B. Types of Disability
 Temporary Total Disability (TTD)
 Permanent Total Disability (PTD)
 Permanent Partial Disability (PPD)

C. Daily Income Benefit for TTD

 for disability not exceeding 120 days
 paid from first day of disability
 may go beyond 120 days but not to exceed 240 days
 21.3.6 Requirements in availing ECP Benefits
A. When shall EC claims be filed?
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.
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.

B. Where are EC claims filed?

All EC claims may be filed by the claimant at his option in the GSIS Regional Office (for the public
sector) or SSS Branch (for the private sector) nearest to his place of work or residence.

C. Who are the employees’ beneficiaries?

The beneficiaries shall be either primary or secondary, and determined at the time of employee’s
death.
The following beneficiaries shall be considered primary:
a) The legitimate spouse living with the employee at the time of the employee’s death until he
remarries; and
b) 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 he is incapacitated and incapable of self-support due to physical or mental defect
which is congenital or acquired during minority.
The following beneficiaries shall be considered secondary:
a) The legitimate parents wholly dependent upon the employee for regular support;
b) 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.
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. (Employees Compensation Commission, n.d.)

21.4 Summary

Employee’s Compensation Commission plays a big role in supporting the workers

or its beneficiaries in case of exposure to the imminent danger allowing the accident
or illness to occur. All workers and their families having an employer-to-employee
contract relationship can have their rights to avail the ECP and other ECC benefits.