Labor and Employment Secretary and chairperson of the Employees’ Compensation Commission Rosalinda Dimapilis-Baldoz called the attention of all the employers to religiously pay their employees’ Employees’ Compensation contributions to avoid liability under Article 196 of Presidential Decree No. 626, as amended.
Baldoz explained that Article 196 of PD 626 clearly expresses that failure or refusal of the employer to pay or remit their EC contributions shall make the employer liable to the Social Security System (SSS) for the lump sum equivalent to the benefits which such employee or his dependents are entitled.
“The delinquency of the employer in paying his employees’ compensation contributions shall not prejudice the rights of the employees. The affected employee can still claim his EC benefits notwithstanding non-payment by the employer of his EC contributions. However, the employer will pay for the value of the said benefits to the SSS,” she said.
ECC Executive Director Stella Zipagan-Banawis clarified that the said provision of PD 626 aims to impel the companies to pay their employees’ EC contributions for the protection of the employees and, themselves at the same time.
“This does not only benefit the employees but the employers, as well. Instead of spending large amount of money for hospital bills in case of work-related contingencies, they are only required to pay P10-30 per month per employee,” she added.
Baldoz said that the goal of the ECC to provide an adequate and meaningful compensation to workers in the event of work-related contingencies will be futile if the ECC will not do anything to sanction the delinquent employers.
“It is the duty of the ECC to safeguard the rights of the Filipino workers and to ensure that, in case of work-related contingencies, they get the benefits due them,” Banawis emphasized.