ECC Premium Contribution 2021

The Employees' Compensation Commission (ECC) premium contribution provides funds for the State Insurance Fund used in the disbursement of benefits under the Employees' Compensation Program (ECP).

Employees’ Compensation Commission (ECC)

What is the Employees’ Compensation Commission (ECC)?

The Employees' Compensation Commission (ECC) is a Government-owned Controlled Corporation (GOCC) and attached to the Department of Labor and Employment (DOLE). The ECC provides compensation and other benefits in the event an employee suffered work-related sickness, injury, or death.

Issuances regarding Employees’ Compensation Commission (ECC)

Board ResolutionIssuance
Date
Remarks
Board Resolution No. 06-08-7031 August 1996
Board Resolution No. 02-04-23511 April 11 2002Government
Contribution
Board Resolution No. 14-10-338 October 2014
ECC and SSS Joint Memorandum Circular
No. 1, s. 2020
September 2020Self-employed

Employees’ Compensation Commission (ECC) Contribution Table 2021

As stated in Section 1, Rule V of the implementing rules and regulation of the Employees' Compensation Commission (ECC), contributions shall be paid by the employer.

Any agreement or contract that stipulates that employee shall be pay the contribution instead of their employer is null and void.

Private Sector employees

As stated in Section 1 (2), Rule V of the implementing Rules and Regulation of the Employees' Compensation Commission (ECC), the employer shall remit to the Social Security System (SSS) a monthly contribution equivalent to one percent of their monthly salary credit, in accordance with the following schedule:

SalaryMonthly Salary CreditAmount of Employer's
Contribution per month
Php 1,000 - PhP 14,749.99PhP 1,000 - PhP 14,500PhP10.00
PhP 14,750.00 and abovePhP15,000 and abovePhP 30.00

Public Sector employees

As stated in Section 1 (1), Rule V of the implementing Rules and Regulation of the Employees' Compensation Commission (ECC), the government agency shall remit to the GSIS a monthly contribution, in accordance with the following schedule:

SalaryAmount of Agency's Contribution per month
Regardless of SalaryPhP100,00

Employers with high frequency of work accidents or occupational diseases

For employers that high frequency of work accidents or occupational diseases, the rate of contribution to be paid by the employer may be increased as stated in in Article 183 (b) of the renumbered Labor Code of the Philippines.

Suspension of Contribution Payment

Separation of Employment

When an employee terminates their employment from their employer, the monthly premium contribution to pay shall cease on the last day of the month of the contingency, as stated in Article 189 (d) of the renumbered Labor Code of the Philippines

Contribution of Injured or disabled employee

When an employee becomes disabled due to an injury or disease during employment, the monthly premium contribution to be paid shall cease on the last day of the month of the contingency and during such months that the employee is not receiving any salary, as stated in Article 189 (d) of the renumbered Labor Code of the Philippines

Death of Employee

When an employee dies during their employment, the monthly premium contribution to be paid shall cease on the last day of the month of the contingency, as stated in Article 189 (d) of the renumbered Labor Code of the Philippines.

Refund of Premium Contribution

Can a contribution be refunded? As stated in Section 1 (5) of the Implementing Rules and Regulation of the ECP, no refund of contribution shall be allowed.

Penalties for delinquent Contributions

As stated in Section 3, Section 1, Rule V of the Implementing Rules and Regulation of the Employees' Compensation Commission (ECC) regarding Employer's Contribution,

Liability of Employer regarding contingency of employee

Any employer that fails to pay the prescribed contributions by the Employees' Compensation Commission (ECC) shall be liable to the ECC for the benefits which may have been paid to their employee or their dependents. Benefits and expenses to which an employer is liable has a preferred lien on the property, real or personal, over any credit with the exception of taxes due.

The payment of a lump sum equivalent of the liability by the employer shall absolve them for the payment of the delinquent contributions due and payable during the calendar year of the contingency of the employee and the penalty. However, the employer is subject to criminal liability of the event or incident.

Penalty

The employer or responsible official failed to remit the contribution shall be subjected to the following:

  • Fine of not less than PhP1,000.00 and not more than PhP10,000.00; and/or
  • Imprisonment for the duration of the violation or non-compliance or until such time that a rectification of the violation has been made.

Missed Contributions

The employer shall pay the following for every contribution that was not remitted:

Contribution amount + 3% for every month

Compensation and Benefits due to the injured, disabled, or dead employee

The Employees' Compensation Commission (ECC) shall pay the employee or dependents the due benefits but does not absolve the employer of the aforementioned penalties, as stated in ECC Resolution No. 1243 dated Jan. 18, 1979 and included in the IRR of the ECC.

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