University of Santo Tomas

Faculty of Civil Law

Agrarian Reform and Social Legislation

Academic Year 2020-2021, Term 1

Submitted to:
Atty. Irvin Joseph Fabella

Submitted by:
Adil, Reema Fahada R.
Brito, Karen Daryl L.
Liban, Clarisse M.
Macalalad, Ma. Michaela B.
Manaloto, Abigail P
Maramag, Irish Kate B.
Reyes, Alphamilenio S.
Yusi, Jonathan Vincent U.
Employees’ Compensation
and State Insurance Fund
Liban, Clarisse M.
Overview
What is the Employees’ Compensation
Program? (ECP)
The Employees’ Compensation Program
(ECP) is a government program designed to
provide a compensation package to public
and private sector employees or their
dependents in the event of work related
sickness, injury, disability, or death.
What are the types of employers under
this law?
The types of employers under the ECP are:
(1) The public sector covered by the GSIS,
comprising the National Government,
including GOCCs, the Philippine
Tuberculosis Society, the Philippine
National Red Cross and the Philippine
Veterans Bank;
(2) The private sector covered by the SSS,
comprising all employers other than
those defined in the immediately
preceding paragraph.
What are the types of employees under
this law?
The types of employees under the ECP are:
(1) The public sectors comprising the
employed workers who are covered by
the GSIS, including the members of the
Armed Forces of the Philippines,
elective officials who are receiving
regular salary, and any person
employed as casual, emergency,
temporary, substitute or contractual.
(2) The private sector comprising the
employed workers who are covered by
the SSS.
Manaloto, Abigail P.
Coverage
Who are covered?
Coverage in the State Insurance Fund shall
be compulsory upon all employers and their
employees not over sixty years of age;
Provided, that an employee who is over
sixty years of age and paying contributions
to qualify for the retirement or life insurance
benefit administered by the System shall be
subject to compulsory coverage. (As
amended by Sec. 16, P.D. 850).
These are:
(1) Private sector workers who are
compulsory members of the Social
Security System (SSS), including sea-
based Overseas Filipino Workers
(OFWS), and “kasambahays”.
(2) 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
2 | Page
 Protection (BFP) and Philippine Coast
Guard.
Are Filipinos working abroad also
covered by the Employees’
Compensation Act?
Yes. Under the Amended Rules on
Employees’ Compensation, Filipino
employees working abroad are covered.
They are also entitled to those benefits
enjoyed by Filipinos locally employed.
When shall coverage of the employers
start?
Compulsory coverage of employers shall
take effect on the first day of his operation.
When shall coverage of the employees
start?
Compulsory coverage of employees starts
from the first day of their employment.
Adil, Reema Fahada R.
Dependents
Who are the dependents that fall under
the ECP?
Dependents that generally fall under the
ECP refer to the legitimate, legitimated,
legally adopted or acknowledged natural
child who is unmarried, not employed and
not over 21 years of age or over 21 years of
age provided that he is incapacitated and
incapable of self-support; Legitimate spouse
living with the employee; and the parents
wholly dependent upon him for support.
When can beneficiaries file for benefits
under the ECP?
It shall be determined upon the said
employee’s work-related injury, sickness,
disability, or death.
Beneficiaries
Who are considered as beneficiaries?
Beneficiaries that may be designated may
either be: preferably the (1) Primary
beneficiaries such as the legitimate spouse
and children or in absence and in absence
thereof, the (2) Secondary beneficiaries
such as the legitimate parents, and
legitimate descendants and illegitimate
children.
Maramag, Irish Kate B
Registration
When should an employee be
registered?
Every newly hired employee shall be
reported by his employer not later than 30
days from the date of employment.
When is an employee deemed reported
for coverage?
Every employee shall be considered as
having been duly reported for coverage if
the System has received a written
communication about him from his employer
or an EC contribution paid in his name by
his employer, before a compensable
contingency occurs.
What is the penalty for failure or refusal
to register employees?
3 | Page
In case of failure or refusal to register How much should an employer pay for
employees, the employer or responsible the contribution?
official who committed the violation shall be
For the public sector, the employer shall
punished with a fine of not less than P1,000
remit to the GSIS a monthly contribution
nor more than P10,000 and/or imprisonment
equivalent to one percent of the basic salary
for the duration of the violation or non-
or ₱100 per month per employee,
compliance or until such time that
whichever is lower.
rectification of the violation has been made,
at the discretion of the Court.

For the private sector, the employer shall

remit to the SSS a monthly contribution
In case a compensable contingency occurs
equivalent to one percent of his monthly
after 30 days from employment and before
salary credit as of the last day of the month,
the System receives any report for coverage
in accordance with the following schedule:
about the employee or EC contribution on
his behalf, his employer shall be liable to the
System for the lump sum equivalent of the
benefits to which he or his dependents may Range of Monthly Employer’s
be entitled. Compensation Contribution
Salary Credit
Can an employee be rejected to claim his
or her benefit in the absence of
₱900 – ₱ ₱1,000 – ₱10
registration to the system?
14,749 ₱14,500

No. Under Circular No. 04-008 dated April ₱14,750 ₱15,000 and ₱30
28, 2014, No EC claim of any employee above
- over
should be rejected on the basis alone of
GSIS or SSS registration and EC
Contribution. If the contingency occurs after
30 days from employment and before the When a covered employee dies during
System receives any report for coverage employment or is separated from
about the employee or EC contribution on employment, when does the employer's
his behalf, his employer shall be liable to the obligation to pay monthly contribution
System for the lump sum equivalent of the cease?
benefits to which he or his dependents may It would cease on the last day of the month
be entitled. of contingency.

Contribution When does an employer’s obligation to

pay the monthly contribution be
suspended?
Who pays for the EC Contribution?
It would be suspended when a covered
The employers shall pay for the EC employee becomes disabled during
contribution of his or her employees. employment, within such months that he is
not receiving salary or wages.

4 | Page

What is the penalty for failure to remit?
In case of delinquency, the employer or
responsible official who committed such
violation shall be penalized with a fine of not
less than ₱1,000 nor more than ₱10,000
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, that would also depend at the
Court’s discretion.
If any contribution is not paid to the SSS as
prescribed under the Rule V, the employer
shall pay besides the contribution a penalty
of 3% a month from the date of the
contribution falls due until paid.
What is a monthly salary credit?
It is the wage base for contributions or the
actual salary, as provided in Section 1, Rule
V of Presidential Decree 626. If earnings
are derived from more than one
employment, it shall be determined on the
basis of the aggregate earnings from all
employments, but not exceeding ₱1,000 in
the case of SSS and ₱3,000 in the case of
GSIS.
How can the average monthly salary
credit be computed?
The general formula for the case of SSS is
the result obtained by dividing the sum of
MSCs in the 60-month period immediately
preceding the semester of death, or
permanent disability, injury, or sickness
divided by number of months of coverage in
the same period.
Exception:
(1) If death or permanent disability falls
within 18 months from the month of
coverage, it will be computed by
dividing the sum of all MSCs paid prior
to the month of death or permanent
disability/ number of calendar months of
coverage in the same period.
(2) If death or permanent disability falls
within the month of coverage, it is the
actual salary received during the
calendar month or its corresponding
monthly salary credit.
In the case of GSIS, the AMSC is the
quotient after dividing the aggregate
compensations received by the member or
employee for the last three years
immediately preceding his death,
permanent disability, injury or sickness, by
the number of months he received said
compensation, or three thousand pesos,
whichever is smaller.
How is Average Daily Salary Credit
computed?
The general formula in computing ADSC in
the case of SSS is the result obtained by
dividing the sum of the six (6) highest
monthly salary credits in the 12-month
period immediately preceding the semester
of sickness by 180.
Exception:
(1) If the injury occurs within 12 calendar
months from the month of coverage, it is
the result obtained by dividing the sum
of all monthly salary credits by 30 and
by the number of months of coverage,
excluding the month of injury.
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(2) If the injury occurs within the month of
coverage, it is the actual salary received
during the calendar month or its
corresponding monthly salary credit
divided by 30.
In the case of GSIS, ADSC shall be
computed by:
(1) If the salary or wage is based on an
hourly rate, it is the hourly rate times the
number of hours required to work during
the month of contingency divided by 22.
(2) If the salary or wage is based on a daily
rate, it is the daily rate times the number
of days required to work per month
divided by 22.
(3) If the salary or wage is based on a
monthly rate, it is the monthly rate
divided by 22.
(4) If the employee has worked for less
than one month, his daily salary credit is
the actual daily wage or salary of the
monthly wage or salary divided by the
actual number of days worked during
the month of contingency.
How can the Replacement Ratio be
computed?
In the case of the SSS, it is the sum of the
twenty percent and the quotient obtained by
dividing three hundred by the sum of three
hundred forty and the average monthly
salary credit.
How can credited years of service be
computed?
For a member covered before January
1975, nineteen hundred seventy-five minus
the calendar year of coverage, plus the
number of calendar years in which six or
more contributions have been paid from
January 1975 up to the calendar year
containing the semester prior to the
contingency.
For a member covered in or after January
1975, the number of calendar years in
which six or more contributions have been
paid from the year of coverage up to the
calendar year containing the semester prior
to the contingency.
How is monthly income benefit
computed?
In the case of the SSS, it is the amount
equivalent to 115% of the sum of: the
average monthly salary credit multiplied by
the replacement ratio and one and a half
percent of the average monthly salary credit
for each credited year of service in excess
of ten years: Provided, that the monthly
income benefit must not be less than P250.
It is also provided that the monthly pension
of surviving pensioners shall be increased
automatically and simultaneously to the
extent that 15% difference in monthly
income benefit between EC and GSIS, be
maintained.
In the case of the GSIS, the monthly income
benefit shall be the basic monthly pension
as defined in PD 1146 plus twenty percent,
but shall not be less than Php 250, nor more
than the actual salary at the time of
contingency.
Manaloto, Abigail P.
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Compensability
What contingencies are compensable?
Any work-connected injury or sickness,
resulting to disability or death of a covered
employee is compensable.
What are the grounds for the injury or
sickness to be compensable?
(1) For the injury and the resulting disability
or death to be compensable, the injury
must be the result of accident arising out
of and in the course of the employment.
(2) For the sickness and the resulting
disability or death to be compensable,
the sickness must be the result of an
occupational disease. Proof must be
shown that the risk of contracting the
disease is increased by the working
conditions.
(3) Only injury or sickness that occurred on
or after January 1, 1975 and the
resulting disability or death shall be
compensable under these Rules.
Benefits
Macalalad, Ma. Michaela B.
Medical services, appliances and supplies
What are Medical Benefits? 
Medical Benefits are all the payments made
under this Title to the providers of medical
care, rehabilitation services and hospital
care.
What are the conditions for entitlement?
Any employee shall be entitled to such
medical services, appliances and supplies
as the nature of his disability and the
progress of his recovery may be subject to
limitations, if all of the following conditions
are satisfied:
(1) He has been duly reported to the
System;
(2) He sustains an injury or contracts
sickness; and
(3) The System has been duly notified of
the injury or sickness.
When shall claim be filed?
Immediately after an employee contracts
sickness or sustains an injury, he shall be
provided by the System during the
subsequent period of his disability with such
medical services and appliances as the
nature of his sickness or injury and progress
of his recovery may require, subject to the
expense limitation prescribed by the
Commission.
What is the period for entitlement?
7 | Page
The medical services, appliances and
supplies shall be provided to the afflicted
employee beginning on the first day of the
injury or sickness, during the subsequent
period of his disability, and as the progress
of his recovery may require, subject to the
given medical reports in Section 5 of Rule
IV.
What if the employee unreasonably
refuses to undergo medical examination
or treatment?
If the employee unreasonably refuses to
submit to medical examination or treatment,
the System shall stop the payment of further
compensation during such time as such
refusal continues. What constitutes an
unreasonable refusal shall be determined
by the System which may on its own
initiative determine the necessity, character
and sufficiency of any medical services
furnished or to be furnished.
When is the System not liable to the
employee?
The System shall have the authority to
choose or order a change of physician,
hospital or rehabilitation facility for the
employee, and shall not be liable for
compensation for any aggravation of the
employee's injury or sickness resulting from
unauthorized changes by the employee of
medical services, appliances, supplies,
hospitals, rehabilitation facilities or
physicians.
Rehabilitation
What is Rehabilitation?
The process by which there is provided a
balanced program of remedial treatment,
vocational assessment and preparation
designed to meet the individual needs of
each handicapped employee to restore him
to suitable employment, including
assistance as may be within its resources to
help each rehabilitee to develop his mental,
vocational or social potential.
What are occupational diseases? 
For an occupational disease and the
resulting disability or death to be
compensable, all of the following conditions
must be satisfied:
(1) The employee’s work and/or the working
conditions must involve risk/s that
caused the development of the illness;
(2) The disease was contracted as a result
of the employee’s exposure to the
described risks;
(3) The disease was contracted within a
period of exposure and under such other
factors necessary to contract it;
(4) There was no deliberate act on the part
of the employee to disregard the safety
measures or ignore established warning
or precaution.
What are the medical benefits under this
rule?
Rehabilitation services shall consist of
medical-surgical management,
hospitalization, necessary appliances and
supplies, vocational training and assistance
for placement. Transportation allowances *
between place of residence and the
rehabilitation facility, lunch, and dormitory
allowances in appropriate cases may be
included in the extent of services.
What is the nature and effectivity of
coverage?
8 | Page
(1) Coverage under this Rule shall be during the rehabilitation is occasioned by
voluntary. any of the following:
(2) Coverage under this Rule shall take
effect upon completion of registration.
(1) His intoxication,
(2) His willful intention to injure or kill
What are the conditions for entitlement?
himself or another; 
Any employee shall be entitled to (3) His notorious negligence.
rehabilitation services, if all of the following
conditions are satisfied:

(1) He has been reported to the System;

(2) He sustains a permanent disability as a

result of a compensable injury or sickness
as defined in these Rules. Provided that all
employees who sustained temporary
disability as a result of a work-connected
contingency shall also be entitled to
rehabilitation services.

(3) He has not been placed in suitable

employment.

What is the period for entitlement?

Rehabilitation services shall be provided
during the period of the disability unless
such services are suspended or terminated
under any of the following conditions:

(1) Upon suitable employment;

(2) Upon suspension or termination of such
services by the Rehabilitation Center;
(3) By self-termination.

When is the System not liable to the

employee?
The System shall not be legally responsible
when the injury, sickness, disability or death

9 | Page
Yusi, Jonathan Vincent U.
Temporary total disability
What is a temporary total disability?
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.
What are the conditions for entitlement?
An employee shall be entitled to an income
benefit for temporary total disability if all of
the following conditions are satisfied:
(1) He has been duly reported to the
System;
(2) He sustains the permanent total
disability
(3) as a result of injury or sickness; and
(4) The System has been duly notified of
the
(5) injury or sickness which caused his
disability.
When does the period of entitlement
begin?
Beginning on the first day of such disability.
If caused by an injury or sickness it shall not
be paid longer than 120 consecutive days
except where such injury or sickness still
requires medical attendance beyond 120
days but not to exceed 240 days from onset
of disability.
After an employee has fully recovered from
an illness as duly certified to by the
attending physician the period covered by
any relapse he suffers, or recurrence of his
illness, which results in disability and is
determined to be compensable, shall be
considered independent of, and separate
from, the period covered by the original
disability.
How much can the employee get from
this benefit?
An employee shall, for each day of such
disability or fraction, be paid an income
benefit equivalent to ninety percent (90%) of
his average daily salary credit, subject to
following conditions:
(1) The daily income benefit shall not be
less than 10 pesos nor more than 200
pesos;
(2) The daily income benefit shall not be
paid for a continuous period longer than
120 days for the same disability, unless
the injury or sickness requires more
extensive treatment that lasts beyond
120 days, but not to exceed 240 days
from the onset of the disability.
Permanent total disability
What is a permanent total disability?
A disability is total and permanent if, as a
result of the injury or sickness, the
employee is unable to perform any gainful
occupation for a continuous period
exceeding 120 days.
What are the conditions for entitlement?
An employee shall be entitled to an income
benefit for permanent total disability if all of
the following conditions are satisfied:
10 | Page
(1) He has been duly reported to the
System;
(2) He sustains the permanent total
disability
(3) as a result of injury or sickness; and
(4) The System has been duly notified of
the
(5) injury or sickness which caused his
disability.
When does the period of entitlement
begin?
Beginning on the first month of such
disability, but not longer than the designated
number of months for such disability.
What are the disabilities deemed as total
and permanent?
(1) Temporary total disability lasting
continuously for more than one hundred
twenty days, except as otherwise
provided for in the Rules;
(2) Complete loss of sight of both eyes;
(3) Loss of two limbs at or above the ankle
or wrist;
(4) Permanent complete paralysis of two
limbs;
(5) Brain injury resulting in incurable
imbecility or insanity; and
(6) Such cases as determined by the
Medical Director of the System and
approved by the Commission.
How much can the employee get from
this benefit?
An employee is entitled to be paid by the
System during such a disability an amount
equivalent to the monthly income benefit.
The monthly income benefit shall be
guaranteed for five years, and shall be
suspended if:
(1) the employee is gainfully employed;
(2) recovers from his permanent total
disability, or;
(3) fails to present himself for examination
at least once a year upon notice by the
System, except as otherwise provided
for in other laws, decrees, orders or
Letters of Instructions.
How much can the dependent children
get from this benefit?
Ten percent (10%) of the monthly income of
the employee for each dependent child, but
not exceeding five, beginning with youngest
and without substitution: Provided, That the
monthly income benefit shall be the new
amount of the monthly benefit for all
covered pensioners, effective upon approval
of this Decree.
Brito, Karen Daryl L.
Permanent partial disability
What is permanent partial disability?
A disability is partial and permanent if as a
result of the injury or sickness the employee
suffers a permanent partial loss of the use
of any part of his body.
What are the conditions of entitlement of
permanent partial disability?
An employee shall be entitled to an income
benefit of permanent partial disability if all of
the following conditions are satisfied:
(1) He has been duly reported to the
System;
(2) He sustains the permanent partial
disability as a result of the injury or
sickness; and
11 | Page
(3) The System has been duly notified of
One foot 31
the injury or sickness which caused his
disability.
One leg 46

For purposes of entitlement to income One ear 10

benefits for permanent partial disability, a
covered employee shall continue to receive
the benefits provided thereunder even if he Both ears 20
is gainfully employed and receiving his
wages or salary. Hearing of one ear 10

Hearing of both ears 50

When does the period of entitlement
begin?
The income benefit shall be paid beginning
on the first month of such disability, but not
longer than the designated number of
months in the following schedule:
Complete and permanent No. of
loss of the use of Months
Sight of one eye 25
How much can the employee get from
this benefit?
The employee shall be paid a monthly
income benefit for the number of months
indicated in such disability.

One thumb 10 If the indicated number of months exceeds

twelve, the income benefit shall be paid in
One index finger 8 monthly pension. Otherwise, the System
may pay income benefit in lump sum or in
monthly pension.
One middle finger 6

One ring finger 5 Death Benefits

One little finger 3

What are the conditions of entitlement
One big toe 6 under Death Benefits?
The beneficiaries of a deceased employee
Any toe 3 shall be entitled to an income benefit if all of
the following conditions are satisfied:
One arm 50

One hand 39 (1) The employee has been duly reported to

the System;

12 | Page
(2) He died as a result of an injury or
sickness; and
(3) The System has been duly notified of his
death, as well as the injury or sickness
which caused his death. His employer
shall be liable for the benefit if such
death occurred before the employee is
duly reported for coverage to the
System.
In addition, the cause of death must be a
complication or natural consequence of the
compensated Permanent Total Disability.
How much is the amount of benefit for
primary beneficiaries?
The monthly income benefit shall be
equivalent to the monthly income benefit for
permanent total disability, which shall be
guaranteed for five years, increased by ten
percent for each dependent child but not
exceeding 5, beginning with the youngest
and without substitution.
That the minimum income benefit shall not
be less than Fifteen Thousand Pesos
(P15,000.00).
How much is the amount of benefit for
secondary beneficiaries?
The income benefit is payable in monthly
pension which shall not exceed the period
of 60 months and the aggregate income
benefit shall not be less than P15, 000.00
When does the period of entitlement
begin for primary beneficiaries?
The income benefit shall be paid beginning
at the month of death and shall continue to
be paid for as long as the beneficiaries are
entitled thereto.
What are the requirements for primary
beneficiaries to be entitled?
For the surviving legitimate spouse:
(1) He/she has not remarried.
For the dependent children, the
qualifications are:
(1) Unmarried;
(2) Not gainfully employed; and
(3) Over 21 years of age provided he/she is
incapable of self-support due to a
physical or mental defect which is
congenital or acquired during minority.
Can the spouse be entitled to death
benefits even if the illness of the late
employee-spouse is not listed as
occupational disease?
Yes. An illness which is admittedly not listed
as occupational disease can still be
compensable if the death from the ailment is
caused by an employment accident and the
conditions of his employment contributed to
its development. (Belarmino v. ECC, G.R.
No. 182978, 11 May 1990)
Funeral Benefits
How much is the funeral benefit under
this Act?
Funeral Benefit of Twenty Thousand Pesos
(P20,000.00) shall be paid upon the death
of a covered employee or permanently
totally disabled pensioner.
To whom shall the funeral benefit be
given?
(1) The surviving spouse; or
(2) The legitimate child who spent for the
funeral services; or
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(3) Any other person who can show What is a Carer’s Allowance?
incontrovertible proof or proof of his
A Carer’s Allowance is a supplemental
having borne the funeral expenses.
pension provided to an Employee who
suffers from permanent partial (PPD) or
What are conditions of entitlement for permanent total disability (PTD) as a result
EC funeral benefits? of work-related contingency arising out of
employment.
The EC funeral benefits shall be granted
after the SSS or the GSIS has declared the
following in the evaluation of claims for EC Who are covered by the Carer’s
death benefits: Allowance?
Both employees in Private and the Public
(1) Death due to sickness - causal sectors.
relationship between the death and the
working conditions of the covered
member. What are the reimbursement rates of
physicians under medical benefits of the
Carer’s allowance?
(2) Death due to injury - causal relationship
between the death and the work-related
accident.
General Specialist
Practitioners
(3) Death of EC Permanent Partial Disability
(PPD) or Permanent Total Disability A. Daily Ward Visits
(PTD) pensioner - the cause of death is
a complication or natural consequence Per day ₱400 ₱600
of previously compensated PPD or PTD.
Maximum per ₱1,600 ₱2,400
confinement
When is the period of filing in cases of
presumptive death?
B. ICU/CCU
The beneficiaries may file their claims for
EC death with funeral benefits within the Per day ₱800 ₱1,200
three-year prescriptive period from the time
the missing person has been presumed Maximum Per ₱1,600 ₱2,400
dead after the lapse of four years from the Confinement
occurrence of the incident.
Out-patient ₱400 ₱600
Consultation
Adil, Reema Fahada R
Carer’s Allowance C. Consultation for pre-procedure medical
evaluation (Out-patient and In-patient)

14 | Page
 Reyes, Alphamilenio S.
Routine (Per ₱800 ₱1,200
pre-procedure Record of Death or Disability
medical
evaluation)
What is an employer’s logbook?
With Medical ₱1,200 ₱1,400
An employer’s logbook contains a
Indication (Per
chronological record of sickness, injury or
pre-procedure
death of his employees. It also includes the
medical
employee’s names, dates and places of
evaluation)
contingency, nature of the contingency and
absences.
D. Intra- ₱1,200 ₱1,400
operative
Monitoring Who will record/make entries in the
logbook?

How much is the Carer’s Allowance
1000 pesos a month for both public and
private sectors as mandated by E.O. No.
54.
All entries in the employer’s logbook shall
be made by the employer or any of his
authorized officials after verification of the
contingencies or the employee’s absences
for a period of a day or more.

What is the reimbursement rate for
physical therapy sessions?
A maximum of 500 pesos per session.
What is the duty of the employer after
making the entries in the logbook?
The employer shall report to the System
within five (5) days the contingencies he
only deems to be work-connected.

When is the record made?

Entries in the logbook shall be made with
five (5) days from notice or knowledge of
the occurrence of the contingency.

What is the notice requirement for

employees?
A notice of sickness, injury or death shall be
given by the employee, his dependents,
anybody on his behalf, within five (5) days
from the occurrence of the contingency.

15 | Page
When is notice not necessary? and/or a fine of not less than five hundred
(P500) nor more than five thousand pesos
The notice is not necessary where the
(P5,000) and imprisonment for not less than
employer or his representatives already had
six (6) months or more than one (1) year, at
knowledge thereof, or the contingency
the discretion of the Court.
occurred during work hours at the
workplace.

What are the other acts punishable

whenever committed by any person for
How about if it is requested by the
the purpose of securing entitlement to
System?
any benefit or payment or the issuance
The employee shall furnish the necessary of any certificate of or document?
certificate regarding information about any
When any person commits fraud, collusion,
contingency appearing in the logbook, citing
falsification, misrepresentation of facts or
the entry number, page number, and date.
any other anomaly.

What is Visitorial Power?

What is the penalty/liability?
It is the power of the duly authorized
The penalty/liability is the same when an
representative of the System to inspect the
employer commits the prohibited acts.
employer’s logbook.

Prescriptive Period
Penal Provisions

When shall claims for compensation be

What are the acts an employer can be
filed?
made liable?
It will be given due course only by the
The acts that an employer can be made
System if filed within three (3) years from
liable are the following:
the time the cause of action accrued.

(1) Failure to record the actual contingency

Liban, Clarisse M.
in the logbook within the prescribed
period; Double Recovery
(2) giving false information; or
(3) withholding material information already
in his possession. Can an employee avail of simultaneous
benefits under the ECP and under
another law for the same contingency?
What is the penalty/liability?
It depends on whether he/she is a private
Fifty-percent (50%) of the lump sum sector employee or public sector employee.
equivalent of the income benefit to which
the employee may be found to be entitled

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For private sector employees, the
payment of benefits under the SSS Law
does not bar the employee/beneficiaries
from receiving benefits under the ECP,
provided that the death or disability is work-
related.
For public sector employees, EC benefits
are subject to the exclusiveness of benefits
as provided under the GSIS Law.
What is the meaning of “exclusiveness
of benefits” provision under the GSIS
Law in relation to PD 626?
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.
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 16
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).
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