Employee’s compensation increased for public sector

(Photo from the Official Gazette)

President Benigno S. Aquino III approved the implementation of the 10 percent across-the-board increase in employees’ compensation (EC) pension of public sector workers, effective May 1, 2015, thus putting in place the enhanced benefits for the workers under the Employees’ Compensation Program (ECP).

The 10 percent increase in EC monthly pension covers the Permanent Partial Disability (PPD), Permanent Total Disability (PTD), and death benefits.

Based on the data provided by the Government Service Insurance System (GSIS), 1,957 disability pensioners and 3,362 death pensioners will benefit from the 10 percent increase in monthly pension.

Applying the 10 percent increase to the present average EC pension will result in an increase in average EC monthly disability pension from P1,623.00 to P1,818.00 and from P1,627.00 to P1,839.00 average EC monthly death pension.

In a report to the DOLE Secretary, Employees’ Compensation Commission (ECC) Executive Director Stella Zipagan-Banawis said that the last across-the-board increase for EC monthly pension in the public sector was implemented in 1982 at the rate of 20 percent.

Director Banawis added that the situation prompted the ECC to approve the issuance of Board Resolution (BR) No. 15-01-01 (“Approving a 10 Percent Increase in EC Pension effective May 1, 2015 for the Public Sector,” dated January 14, 2015).

DOLE Secretary Rosalinda Dimapilis-Baldoz, who also serves as ECC Chairperson, stated, “the ECC recognizes the need to increase EC benefits for the public sector to make ECP more responsive to the welfare and needs of persons with work-related disabilities (PWRDs) and their families”.

Secretary Baldoz added that “this development is also in line with the President’s 22-Point Labor and Employment Agenda of enhancing social protection, such as social security and workmen’s compensation, to make it adequate as an income security program.”

The recent increase in EC pension is the result of an actuarial study conducted by the GSIS. The study showed that its State Insurance Fund (SIF) can finance the said increase without affecting the stability of the SIF and without requiring additional EC premium from the government.

From 2011 to date, a review of the EC benefits has been made where six EC benefits have been increased, or rationalized, to pursue equalization of benefits for the private and the public sector workers.

As provided under BR No. 15-01-01, the retroactive application of the 10 percent across-the-board increase in EC monthly pension shall take effect 15 days after the publication of the corresponding Executive Order in a newspaper of general circulation.