Approving the Increase of EC Temporary Total Disability (TTD) Benefit for the Private Sector from a Minimum Daily Income Benefit of Php 10.00 to 110.00 and from a Maximum Daily Income Benefit of Php 200.00 to an Amount Computed Based on the Highest Possible Total Monthly Salary Credit as per SSS Law or Php 480.00
WHEREAS, under Article 177 (e) of P.D. No. 626, as amended, this Commission shall have the powers and duties, among others to upgrade EC benefits and grant new ones subject to the approval of the President, provided that the actuarial stability of the State Insurance Funds (SIFs) shall be guaranteed and that such increases in benefits shall not require any increase in contributions from the employers, both private and public;
WHEREAS, the last increase for EC TTD benefits in the private sector was provided through Executive Order No. 187 (s. 1987), amending Section 3, Rule X, P.D. 626 prescribing the daily income benefit (TTD) as “shall be not less than ten pesos….” and Board Resolution No. 96-10-0429, dated October 10, 1996 prescribing the maximum ceiling of daily income benefit to the amount of Two hundred pesos (P 200.00);
WHEREAS, the Sickness Benefit under R.A. 8282 or the SSS Law, as amended, defined the amount of sickness benefit per day as ”equivalent to ninety percent (90%) of the member’s average daily salary credit”;
WHEREAS, there is a need to enhance EC benefits to make them more responsive to the welfare and development needs of persons with work-related disabilities;
WHEREAS, the International Labor Organization (ILO) Convention No. 102 (Social Security Minimum Standards, 1952), ILO Convention No. 130 (Medical Care and Sickness Benefits, 1969) and ILO Recommendation No. 134 (Medical Care and Sickness Benefits, 1969) prescribe the minimum standards on sickness benefits for social security among its member states;
WHEREAS, relevant Articles of ILO Conventions on the minimum standards for social security benefits on the rate of income replacement were considered in determining the increase in EC TTD daily income benefits;
WHEREAS, relevant social parameters from the ILO World Social Protection Report for 2014-2015 and the Philippine Statistics Authority were considered in determining the increase in EC TTD daily income benefits;
WHEREAS, the ECC requested SSS for an actuarial study on 4 options to increase the TTD benefits for PWRDs;
WHEREAS, the actuarial study of SSS considered the following four options in increasing the minimum and maximum amount of TTD benefit:
Option | ECC Proposals | Amount of Proposed Minimum TTD Daily Benefit | Amount of Proposed Maximum TTD Daily Benefit |
1 | Php 110 minimum TTD benefit and 10% increase in maximum TTD | Php 110 | Php 220 |
2 | Php 110 minimum TTD benefit and 25% increase in maximum TTD benefit | Php 110 | Php 250 |
3 | Php 110 minimum TTD benefit and 40% increase in maximum TTD benefit | Php 110 | Php 280 |
4 | Php 110 minimum TTD benefit and maximum TTD benefit of ninety percent (90%) of the average daily salary credit based on the maximum covered earnings under R.A. 8282(SSS Law), as amended | Php 110 | Php 480* |
- Computed based on the existing SSS maximum salary bracket of earnings or compensation of Php 16,000
WHEREAS, the result of the SSS actuarial study shows that implementing any of the TTD benefit increase options has no significant adverse impact on the long term viability of the EC SIF and will not require additional contributions from the employers;
WHEREAS, based on the actuarial study, the ECC opted to adopt the option numbered four (4);
NOW THEREFORE, ON MOTION DULY MADE AND SECONDED
This Commission RESOLVES as it hereby RESOLVED to grant an increase in EC Temporary Total Disability (TTD) benefit to a minimum of Php 110.00 per day and a maximum amount computed based on the highest possible total monthly salary credit as per SSS Law or Php 480.00;
RESOLVED FURTHER, that a copy of this Resolution be transmitted to the Office of the President for approval.
RESOLVED FINALLY, that upon issuance of the corresponding Executive Order (EO), the same shall take effect fifteen days after its publication in a newspaper of general circulation and copy of the said EO be furnished to the SSS for guidance and compliance.
APPROVED in Quezon City, this 22nd day of May 2015.
(SGD.) CIRIACO A. LAGUNZAD
Chairperson-Alternate
Department of Labor and Employment
(SGD.) BRENDA P. VIOLA
Member-Designate
Social Security System
(SGD.) DIONISIO C. EBDANE, JR.
Member-Designate
Government Service Insurance System
(SGD.) CARLITO P. ROBLE
Member
Employees’ Sector
(SGD.) MIGUEL B. VARELA
Member
Employers’ Sector
(SGD.) ALEXANDER A. PADILLA
Member-Designate
Philippine Health Insurance Corporation
(SGD.) STELLA ZIPAGAN-BANAWIS
Member
Employees’ Compensation Commission – Secretariat