EMPLOYEES

COMPENSATION
COVERAGE AND WHEN
COMPENSABLE
Millecent O. Pangilinan

What is the State Insurance Fund [SIF]?

The State Insurance Fund (SIF) is built up
by the contributions of employers based on
the salaries of their employees as provided
under the Labor Code. There are two (2)
separate and distinct State Insurance
Funds: one established under the SSS for
private sector employees; and the other,
under the GSIS for public sector
employees.
The
management
and
investment of the Funds are done
separately and distinctly by the SSS and
the GSIS. It is used exclusively for payment
of the employees compensation benefits

 What are the agencies involved in the

implementation of the Employees Compensation
Program (ECP
There are three (3) agencies involved in the
implementation of the Employees Compensation
Program (ECP). These are:
(1) The Employees Compensation Commission
(ECC) which is mandated to initiate, rationalize and
coordinate policies of the ECP and to review
appealed cases from
(2) the Government Service Insurance System
(GSIS) and
(3) the Social Security System (SSS), the
administering agencies of the ECP.

COVERAGE
(1) Every employer shall be covered.
(2) Every employee not over sixty [60] years of
age shall be covered.
(3) An employee over sixty [60] years of age shall
be covered if he had been paying contributions to
the System prior to age sixty [60] and has not
been compulsorily retired.
(4) An employee who is coverable by both the
GSIS and SSS shall be compulsorily covered by
both Systems. [Sec. 2, IRR of Title II, Book IV of
LC]

 b. Sectors of employees covered by the ECP.

The following sectors are covered under the ECP:
1. All public sector employees including those of
government-owned and/or controlled corporations and
local government units covered by the GSIS;
2. All private sector employees covered by the SSS;
and
3. Overseas Filipino workers (OFWs), namely:
a. Filipino seafarers compulsorily covered under the
SSS.
b. Land-based contract workers provided that their
employer, natural or juridical, is engaged in any trade,
industry or business undertaking in the Philippines;
otherwise, they shall not be covered by the ECP.

When is the start of coverage of

employees under the ECP?
The coverage under the ECP of
employees in the private and public
sectors starts on the first day of their
employment.

WHEN COMPENSABLE
Grounds
(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 listed under Annex
A of these Rules with the conditions set
therein satisfied, otherwise, proof must be

Limitation:
No compensation shall be allowed to the
employee or his dependents when the
injury, sickness, disability, or death was
occasioned by any of the following
(1) his intoxication;
2) his willful intention to injure or kill
himself or another; or
(3) his notorious negligence
4) As otherwise provided by law

What are the benefits under the ECP?

The following are the benefits provided
under the Labor Code:
a. Medical Benefits
b. Disability Benefits
1. Temporary total disability
2. Permanent total disability
3. Permanent partial disability

c. Death Benefit
d. Funeral Benefit