Promulgating the Policy on Expanding the Coverage of the Employees’ Compensation Program (ECP) to the Self-Employed Compulsory Members of the SSS
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WHEREAS, Article II, Section 18 of the 1987 Constitution provides: “The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare.†(emphasis supplied)
WHEREAS, Article 174 of P.D No.626, as amended, partly provides: “ART. 174. Compulsory coverage. – Coverage in the State Insurance Fund shall be compulsory upon all employers and their employees not over sixty years of age…’’
WHEREAS, Article 173 (g) of PD No. 626, as amended, partly provides: “ART. 173. Definition of terms. – xxx(g) ‘’Employee†means xxx xxx any person compulsorily covered by SSS under Republic Act Numbered Eleven Hundred Sixty-One, as amended.†(emphasis supplied)
WHEREAS, Republic act (R.A) No. 1161 was amended by RA No. 8282, otherwise known as the “Social Security Law of 1997,†which took effect on May 24, 1997;
WHEREAS, Section 8 (d) of R.A No. 8282 (“Social Security Law of 1997â€) partly states:
“SEC. 8. Terms Defined. Xxx
â€(d) Employee. Any person who performs services for an employer xxx Provided, That a self-employed person shall be both employee and employer at the same time. (emphasis supplied)
WHEREAS, Section 9-A of R.A No. 8282 provides: “SEC. 9-A Compulsory coverage of the Self-employed. – Coverage in the SSS shall be compulsory upon such self-employed persons as may be determined by the Commission under such rules and regulations as it may prescribe, included but not limited to the following:
- “All Self-employed professionals;
- “Partners and single proprietors of businesses;
- “Actors and Actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the term “employee†in Sec. 8 (d) of this Act;
- “Professional athletes, coaches, trainers and jockeys; and
- “Individual farmers and fishermen.
xxx xxx
WHEREAS, considering that under P.D No. 626, as amended, self employed persons who are compulsory covered under the prevailing SSS law are also covered under the ECP;
WHEREAS, the SSS has conducted an Actuarial Study on the possible ECP coverage of the self-employed compulsory members of the SSS which reveal positive results without adversely affecting the viability of the State Insurance Fund (SIF) in the private sector and without need for an increase in EC contribution;
NOW THEREFORE, ON MOTION DULY MADE AND SECONDED
This Commission RESOLVES as it hereby RESOLVED to promulgate the policy of expanding the ECP coverage to all self-employed compulsory members of the SSS;
RESOLVED FURTHER, Â Â that the guidelines for the implementation of this benefit shall be prepared by the Secretariat in coordination with the SSS
RESOLVED FINALLY, that this resolution shall take effect fifteen (15) days after its publication in a newspaper of general circulation.
DONE, this 6th day of March 2019, in Makati City, Philippines.
(SGD) SILVESTRE H. BELLO III
Chairperson
Department of Labor and Employment
(SGD) ELVIRA G. ALCANTARA-RESARE
Member-Designate
Social Security System
(SGD) NORA M. MALUBAY
Member-Designate
Government Service Insurance System
(SGD) DENNIS S. MAS
Member-Designate
Philippine Health Insurance Corporation
(SGD) STELLA ZIPAGAN-BANAWIS
Member
Employees’ Compensation Commission – Secretariat
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