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Social Security:
What is the Employees' Compensation Program?
The Employees' Compensation (EC) program aims to assist workers who suffer work-connected sickness or injury resulting in disability or death. The benefits under the EC program may be enjoyed simultaneously with benefits under the social security program.
Who are covered under the EC program?
All SSS-registered employers and their employees are compulsorily covered under the program. Employers and employees registered in the SSS need not register again under EC.
How much is the monthly EC contribution?
Only the employer is required to remit monthly EC contributions on behalf of his employees, equivalent to one per cent of the employee's monthly salary credit. The required contribution ranges from P0.25 to P10 depending on the employee's salary (Please refer to the schedule of contributions).
How long is an employer obliged to pay for the EC contributions of his employee?
For as long as the employee works for him, the employer is obliged to pay EC contributions. The obligation of the employer ceases when an employee is separated from employment or, if the employee dies during employment. When a covered employee becomes disabled during employment, his employer's obligation to pay the monthly contribution arising from the employment will be suspended during such months that he is not receiving salary or wages.
What are the benefits under the EC program?
Benefits under the Employees' Compensation program include:
- Medical services, appliances and supplies provided to the afflicted member beginning on the first day of injury or sickness, during the subsequent period of his disability, and as the progress of his recovery may require. These benefits, however, are limited to the ward services only of an accredited hospital and physician. Ward services consist of all the services an in-patient would ordinarily receive in a hospital.
- Rehabilitation services, consisting of medical, surgical and hospital treatment. The SSS also provides as soon as practicable, a balanced program of remedial treatment for handicapped members.
- Income cash benefit for:
- Temporary total disability or sickness. An income cash benefit equivalent to 90 per cent of the average daily salary credit with a minimum of P10 and a maximum of P200 (effective Nov. 1, 1996). It is payable for a period not longer than 120 consecutive days. If the injury requires more treatment, the period may be extended up to 240 days. If it persists after this period, the injury will be considered as permanent total disability. This benefit is advanced by the employer every regular pay day. The amount legally paid by the employer is reimbursed 100 per cent by the SSS.
- Permanent total disability (loss of two limbs, permanent complete paralysis of two limbs, etc.). This benefit is a monthly pension paid for as long as the injured lives plus 10 per cent for each of the five dependent children beginning with the youngest and without substitution. The monthly pension is guaranteed for five years but will be suspended if the employee is gainfully employed, recovers from his permanent total disability, fails to present himself for examination at least once a year upon notice by the SSS or fails to submit a quarterly medical report certified by his attending physician as required under Section 5, Rule IV of the EC law. The minimum monthly income benefit is P2,000. Beginning Jan. 1, 1991, a permanent total or permanent partial disability pensioner is also given a supplemental allowance in addition to his monthly pension. This allowance will provide him additional financial assistance to meet his extra needs arising from the disability. Effective May 1, 1993, the supplemental allowance is P575 a month. Upon the death of an EC permanent total disability pensioner, the SSS will pay to the primary beneficiaries 100 per cent of the monthly pension. In addition, his dependents will be paid the dependent's pension. If he has no primary beneficiaries, the SSS will pay to his secondary beneficiaries the remaining balance of the five-year guaranteed period, excluding the dependent's pension.
- Permanent partial disability (such as loss of one thumb, finger, leg). A monthly pension is provided to the member, equivalent to the pension for permanent total disability, but limited to the number of months designated by law for a particular disability. The minimum monthly pension is P2,000. However, if the period of permanent partial disability pension is less than a year the benefit may be paid in lump sum.
- Death. A monthly pension is provided to the deceased member's primary beneficiaries, plus 10 per cent of such benefit for each of five dependent children, subject to some limitations. In the absence of primary beneficiaries, the secondary beneficiaries are entitled to the monthly pension but not to exceed 60 months. The minimum monthly pension for the death benefit is P2,000. A funeral benefit of P10,000 will also be paid to any person who actually shouldered the burial expenses of the deceased member or permanent total disability pensioner.
What are the qualifications for EC benefits?
- Employees should be duly reported to the SSS;
- Employees' sickness, injury or death is work-connected; and
- The SSS has been duly notified of such sickness, injury or death.
For more questions on Social Security, check out http://www.sss.gov.ph/.
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