Employees of companies with delinquent SSS or GSIS contributions are still entitled to benefits and services under the Employees’ Compensation Program in the event of work-connected sickness, injuries, or death.
This was recently clarified by Employees’ Compensation Commission Executive Director Stella Zipagan-Banawis allaying fears of workers that they may not be able to receive EC benefits if their employers are negligent in their obligation in remitting social security contributions for their employees.
“The coverage of a worker under the ECP starts at the first day that he started his employment in a certain company. If something happens to him on the first day of his job and it was proven as work-related, then he is qualified for EC benefits even he is not yet enrolled under Social Security System (SSS) or Government Service Insurance System (GSIS)”, Banawis said.
Article 196 (b) of Presidential Decree No. 626, otherwise known as The State Insurance Fund and the Employees’ Compensation Program states that failure or refusal of the employer to pay the prescribed contributions shall not prejudice the right of the employee or his dependents to EC benefits.
“Furthermore, the law also states that the employer is liable to the System for the lump sum equivalent to the EC benefits to which an employee or his dependents may be entitled if a work-related sickness, injury, disability, or death occurs before the System receives any report of the name of the involved employee,” she further explained.