Board Resolution No. 22-08-20
(For approval of the Office of the President)
Approving the Increase in the Daily Income Benefit for EC Temporary Total Disability (TTD) in the Public Sector
WHEREAS, Article 183 (formerly Article 177) (e). of P.O. No. 626, as amended, provides that the 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 Fund (SIF) shall be guaranteed and that such increase in benefits shall not require any increase in contributions from the employers, both private and public;
WHEREAS, Temporary Total Disability (TTD) is an income benefit under the Employees’ Compensation Program, provided to an employee who acquired sickness or injury arising out of and in the course of his/her employment;
WHEREAS, as an income benefit, the amount must at least be at par with the daily income lost due to the work contingency;
WHEREAS, the Commission finds the necessity to regularly review and ensure adequacy and responsiveness of the EC Program to the needs of its clients;
WHEREAS, the daily TTD benefit in the private sector has been enhanced and increased over the years, creating disparity in the benefits being provided to private and public sector employees;
WHEREAS, the existing policy on minimum and maximum daily income TTD benefit for both sectors are as follows:
| Private | Public | |
| Minimum | P110.00 | P10.00 |
| Maximum | P480.00 | P200.00 |
WHEREAS, with the increasing salary of workers in the public sector, the P10 minimum TTD is no longer applied by GSIS in computing for EC TTD claims but, instead, pegs the amount at P200 per day;
WHEREAS, the maximum amount of TTD in the private sector was further increased to P600/day in 2019 through the issuance of BR No. 19-08-28, subject to the approval of the President of the Philippines;
WHEREAS, the Commission is committed to ensuring equality for all types of workers, particularly in the provision of services and benefits in both the public and private sectors;
WHEREAS, ECC requested the Government Service Insurance System (GSIS) for an actuarial study to determine the viability of increasing the amount of TTD benefits for the public sector;
WHEREAS, the actuarial study conducted by GSIS in July 2022 assumes the proposed maximum daily rate for TTD benefits and shows that the increase in maximum to P480 would decrease the insurance contract reserves assets from P11.65 billion to P9.86 billion, while increasing the maximum to P600 decreases the insurance contract reserves assets from P11.65 billion to P8.93 billion;
WHEREAS, in both scenarios, the present value of cash inflow of the SIF at the GSIS is more than the present value of its cash outflow without touching the plan asset;
WHEREAS, the GSIS actuarial study further shows that, based on specific set of demographics, financial and actuarial assumptions of the SIF, the ECC may favorably grant a daily maximum TTD benefit of either P480 or P600;
WHEREAS, under Art. 197 of PD 626, as amended, TTD benefit for the public sector is computed at ninety percent of the workers’ current daily compensation1;
NOW, THEREFORE, THE COMMISSION RESOLVES AS IT IS RESOLVED, to approve the increase in the daily EC TTD benefit in the public sector from two hundred pesos (P200.00) to the amount equivalent to ninety percent of the current daily compensation of the worker or to six hundred pesos (P600.00), whichever is lower.
RESOLVED FINALLY, that a copy of this Resolution shall be transmitted to the Office of the President of the Republic of the Philippines for approval and that upon approval of the Office of the President, the corresponding Executive Order shall be published in a newspaper of general circulation for effectivity purposes.
DONE, this 12th day of August 2022, in Quezon City, Philippines.
(SGD.) BIENVENIDO E. LAGUESMA
Chairperson
Department of Labor and Employment
(SGD.) MICHAEL G. REGINO
Member
Social Security System
(SGD.) JOSE ARNULGO A. VELOSO
Member
Government Service Insurance System
(SGD) CARLITO P. ROBLE
Member
Employees’ Sector
(SGD) STELLA ZIPAGAN-BANAWIS
Member
Employees’ Compensation Commission – Secretariat
1 Section 2 (k) of Republic Act No. 8291 or the The Government Service Insurance System Act of 1997 defines Current Daily Compensation as the actual daily compensation or the actual monthly compensation divided by the number of working days in the month of contingency but not to exceed twenty-two (22) days.