Loss of Income Benefit of ECC

The Loss of Income Benefit is a compensation benefit given to employees who are unable to work due to incurring a work-related sickness or benefits.

There are 3 classifications of Disabilities considered for Income Benefit, which are the following:

  • Temporary Total Disability (TTD)
  • Permanent Total Disability (PTD)
  • Partial Permanent Disability (PPD)

It is emphasized that the disability or death, specifically the incapacity to work, which resulted from the injury or sickness, is being compensated, except in the case of Permanent Partial Disability (PPD), as stated in Section 3, Rule VII of the Implementing Rules and Regulation of the Employees' Compensation Commission (ECC).

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Temporary Total Disability (TTD)

Temporary Total Disability (TTD) is a type of Loss of Income Benefit wherein an employee is temporarily incapable to work due to an work-related injury or sickness.

The income benefit is stated in Rule X of the Implementing Rules and Regulation of the Employees' regarding Temporary Total Disability (TTD) and Article 197 [191], Chapter VI, Title II of the renumbered Labor Code of the Philippines regarding Disability Benefits.

Conditions to entitlement

An employee is entitled to the income benefit for Temporary Total Disability (TTD) is all of the conditions are present:

  1. Employee is duly reported to the ECC for coverage;
  2. Incurred a temporary total disability as a result of the injury or sickness; and
  3. Notification to the ECC of the injury or sickness which caused the disability.

The employer shall be liable for the benefit if such illness or injury occurred before the employee is duly reported for coverage to the ECC.

In addition to the above, an employee enjoying Temporary Total Disability (TTD) benefits shall submit to the Social Security System (SSS) or Government Service Insurance System (GSIS) a monthly medical report on their disability certified by the attending physician. Failure to do so will result in the suspension of the benefit until the employee submits the medical report. as stated in Section 5, Rule IV of the Amended Rules of the Employees' Compensation Commission (ECC).

Period Coverage

Income benefit is paid beginning on the first day of the disability.

If caused by an injury or sickness, income benefit is not paid longer than 120 consecutive days except when it still requires medical attendance beyond 120 days but not exceeding 240 days computed on the onset of disability.

The Employees' Compensation Commission (ECC) may declare the employee to have a total and permanent status at any time after 120 days of continuous temporary temporary total disability

If an employee has fully recovered as duly certified by the attending physician, the period covered by any relapse or recurrence of the illness, that resulted in disability and determined to be compensable, is independent from the period covered by the initial disability.

The new period is not added to the period covered by the initial disability in the computation of income benefit for temporary total disability (TTD) (ECC Resolution No. 1029, August 10, 1978)

Amount of Benefit

The daily income benefit for Temporary Total Disability (TTD) is equivalent to 90% of his average daily salary credit, subject to the following:

AgencyMinimumMaximum
SSSPhP 110.00Amount Computed Based on the
Highest Possible Total Monthly Salary Credit
as per SSS Law or PhP 480.00
GSISPhP 90.00PhP 200.00

In addition to the above, the income benefit for Temporary Total Disability (TTD) is increased by PhP 1,150.00 as stated in ECC Board Resolution No. 18-06-24 dated 21 June 2018.

Author's Note: The abovementioned ECC income benefit may not be accurate due to other issuances and actual computation of the agency.

Daily Income benefit is not paid longer than 120 days for the same disability, unless additional treatment is required beyond 120 days, but not exceeding 240 days from the initial start of the disability.

The following is a list of issuances related to Temporary Total Disability:

ECC Board ResolutionTitleDate
Letter of Instruction No. 1286, s. 1983Approving The Grant Of Increases In Monthly Income Benefits For Work-Related Permanent Disability And Death Under Title Ii, Book Four On “Employees’ Compensation,” Labor Code of The Philippines, As Amended30 January 1983
Board Resolution No. 96-10-0429Policy on the Increase in the Maximum Ceiling for Daily Income Benefits for Temporary Total Disability from Ninety Pesos to Two Hundred Pesos, effective 1st November 199610 October 1996
Board Resolution No. 12-09-21Policy on the Increase in the Amount of Employment Compensation Bene-fits for Employees in the Public Sector27 September 2012
Board Resolution No. 15-05-22Approving the Increase in EC Temporary Total Disability (TTD) Benefit for the Private Sector from a Minimum Daily Income Benefit of PhP10.00 to PhP 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 480.0022 May 2015
Board Resolution No. 18-06-24Implementing Guidelines in the Retroactive Application of Increase in
Monthly EC Pension to all Permanent Partial and Total Disability Pensioners
and Death Benefit Pensioners in the Private Sector effective January 2017 as
provided under Section 1 of Executive Order (EO) No. 54
21 June 2018

Permanent Total Disability (PTD)

Permanent Total Disability (PTD) is a type of Loss of Income Benefit wherein an employee is permanently incapable to work due to an work-related injury or sickness.

Permanent Total Disability )PTD) is provided in Article 198 [192] of the renumbered Labor Code of the Philippines and stated in stated in Rule XI of the Implementing Rules and Regulation of the Employees' Compensation Commission (ECC).

The number of months of paid coverage shall be defined and approximated by a formula to be approved by the Employees' Compensation Commission (ECC)

Conditions to entitlement

An employee is entitled to the income benefit for Permanent Total Disability is all of the conditions are present:

  1. Employee is duly reported to the ECC for coverage;
  2. Incurred a permanent total disability as a result of the injury or sickness; and
  3. Notification to the ECC of the injury or sickness which caused the disability.

The employer shall be liable for the benefit if such illness or injury occurred before the employee is duly reported for coverage to the ECC.

An employee entitled to Permanent Total Disability (PTD) is required to present themselves at least once a year to the Social Security System (SSS) or Government Service Insurance System (GSIS). Non-compliance will result in the postponement of granting of the benefits, as stated in Section 5, Rule IV of the Amended Rules of the Employees' Compensation Commission (ECC).

List of Total and Permanent Disability

The following are considered total and permanent disability:

  1. Temporary total disability lasting continuously for more than 120 days, except as otherwise provided for in the rules regarding Temporary Partial Disability;
  2. Complete loss of sight of both eyes;
  3. Loss of two limbs at or above the ankle or wrist;
  4. Permanent complete paralysis of two limbs;
  5. Brain injury resulting in incurable imbecility or insanity; and
  6. Such cases as determined by the Medical Director of the System and approved by the Commission.

Period Coverage

The full monthly income benefit shall be paid for all compensable months of the disability. The monthly income benefit is guaranteed for 5 years. However, it may be suspended due to any of the following conditions:

  1. Failure to present himself for examination at least once a year upon notice by the System;
    • Compliance with the said requirement shall lift the suspension and the obligation of the System to return the suspended EC PTD benefits automatically arises, as provided under EC Board Resolution No. 10-02-03, dated Feb. 26, 2010)
  2. Failure to submit a quarterly medical report certified by his attending physician as required in the "Minimum Standards for Periodic Medical examination";
  3. Complete or full recovery from his permanent disability, or
  4. Upon being gainfully employed.

Amount of Benefit

The first day preceding the semester of Permanent Partial Disability (PPD) shall be considered for purposes of computing the monthly income benefit for permanent total disability.

SSS

As stated in Section 3 of Rule XI of Implementing Rules and Regulation of the Employees' Compensation Commission (ECC) which is indicated in Sec. 9 (a), Rule VI in the aforementioned IRR for Social Security System (SSS) Members, the Monthly income benefit for Permanent Total Disability is

equivalent to 115% of the sum of the average monthly salary credit multiplied by the replacement ratio and 1.5% of the average monthly salary credit for each credited year of service in excess of ten years.

In addition, there is a 10% across the board increase in EC pension for all EC permanent total disability pensioner in the private sector (Sec. 2, Executive Order No. 167, dated May 26, 2014); The 10% across the board increase shall have a retroactive application to September 2013. (as provided under Board Resolution No. 14-06-29, dated June 6, 2014)

In addition, there is a PhP1,000.00 increase (Memorandum from the Executive Secretary dated 22 February 2017)

Provided, that the monthly income benefit shall not be less that PhP250.00

Provided, However, that the monthly pension of surviving pensioners shall be increased automatically and simultaneously to the extent that 15% difference in monthly income benefit between EC and GSIS, be maintained. (LOI 1286) (ECC Resolution No. 2799, July 25, 1984).

Board ResolutionTitleDate
Sec. 2, Executive Order No. 167Increasing the amount of certain employment compensation benefits for employees in the Private and Public Sectors 26 May 2014
Board Resolution No. 14-06-29Guidelines in the Implementation of
Executive Order No. 167 in the Private Sector
6 June 2014
Memorandum from the Executive SecretaryProposed Increase in the Benefit of Qualified Pensioners and Beneficiaries of the Social Security System22 February 2017
Board Resolution No. 17-10-38Approving an Across the Board Increase in Monthly Pension of EC Permanent Disability Pensioners and Qualified Beneficiaries in the Private Sector25 October 2017

GSIS

For GSIS members, the monthly income benefit shall be the basic monthly pension as defined in Presidential Decree No. 1146, As stated in Sec. 9 (a), Rule VI in the Implementing Rules and Regulation of the Employees' Compensation Commission (ECC):

(1) 37.5% of the revalued average monthly compensation;

(2) Plus 2.5% of said revalued average monthly compensation for each year of service in excess of fifteen years: Provided, That, the basic monthly pension shall not exceed 90% of the average monthly compensation;

(3) Plus twenty percent thereof, but shall not be less than P250, nor more than the actual salary at the time of contingency. (ECC Resolution No. 2799, July 25, 1984).

The GSIS basic monthly pension may be adjusted upon the recommendation of the President and General Manager of the System and approved by the President of the Philippines.

IssuanceTitleDate
Presidential Decree No. 1146Amending, Expanding, Increasing And Integrating The Social Security And Insurance Benefits Of Government Employees And Facilitating The Payment Thereof Under Commonwealth Act No. 186, As Amended, And For Other Purposes31 May 1977
ECC Resolution No. 279925 July 1984
Author's Note: The abovementioned ECC income benefit may not be accurate due to other issuances and actual computation of the agency.

Dependent Children

Each dependent child, not exceeding five children, counted from the youngest and without substitution, is entitled to 10% of the month income benefit of the employee as stated in Section 4 of Rule XI of Implementing Rules and Regulation of the Employees' Compensation Commission (ECC).

Aggregate monthly benefit payable

Except the benefit to dependent children, the aggregate monthly benefit payable for GSIS shall in no case exceed the monthly wage or salary actually received by the employee as of the date of his permanent total disability. (ECC Resolution No. 2819, August 9, 1984), as stated in Section 6 of Rule XI of Implementing Rules and Regulation of the Employees' Compensation Commission (ECC).

Permanent Partial Disability (PPD)

Permanent Partial Disability (PDD) is a disability caused by the physical loss, amputation, or functional loss of a body part.

The Disability is stated in Rule XII of the Implementing Rules and Regulation of the Employees' regarding Permanent Partial Disability (PPD) and Article 199 [193], Chapter VI, Title II of the renumbered Labor Code of the Philippines regarding Disability Benefits.

Conditions to entitlement

An employee is entitled to Permanent Partial Disability (PDD) income benefit if all of the following conditions are met:

  1. He has been duly reported to the System;
  2. He sustains the permanent partial disability as a result of the injury or sickness; and
  3. The System has been duly notified of the injury or sickness which caused his disability.

The employer is liable for the benefit if the injury or sickness occurred before the employee is duly reported to the Employees' Compensation Commission (ECC).

An employee will continue to receive the benefits provided even if the person is gainfully employed and receiving their wages.

Period of entitlement

The income benefit for Permanent Partial Disability is paid beginning on the first month of the disability, but not longer than the number of months indicated in the following table:

Complete and permanent loss of the use ofNo. of Months
of the loss of:
One thumb10
One index finger8
One middle finger6
One ring finger5
One little finger3
One big toe6
One toe3
One arm50
One hand39
One foot31
One leg46
One ear10
Both ears20
Hearing of one ear10
Hearing of both ears50
Sight of one eye25

An employee the incurred injuries that resulted to functional loss and/or physical loss of any part of his body is granted Temporary Total Disability (TTD) and Permanent Partial Disability (PPD).

Earlier compensation of Temporary Total Disability (TTD)

Any earlier compensation for TTD that may have been paid to an injured worker shall not be deducted from the PPD benefit that may be later granted to him. (as provided under Board Resolution No. 10-09-114, September 2, 2010)

Loss of appendages not indicated on the above table

  • A loss of a wrist shall be considered a loss of the hand;
  • A loss of an elbow shall be considered a loss of the arm;
  • A loss of an ankle shall be considered a loss of the foot;
  • A loss of a knee shall be considered a loss of the leg;
  • A loss of more than one joint shall be considered a loss of the whole finger or toe; and
  • A loss of only the first joint shall be considered a loss of one-half of the whole finger or toe.
  • Other permanent partial disabilities shall be determined by the Medical Officer of the System.

The degree of permanent disability shall be equivalent to the ratio that the designated number of compensability bears to 75.

Amount of Benefit

An employee entitled to Permanent Partial Disability (PDD) is to be paid by a monthly income benefit for the number of months in the aforementioned table.

The Social Security System (SSS) or Government Service Insurance System (GSIS) has two (2) modes of payments for Permanent Partial Disability (PPD) which is dependent on the number of months the benefit is to be disbursed:

Mode of PaymentMonths
MonthlyExceeds twelve (12) months
Lump sum or Monthly PensionLess than twelve (12) months

The Monthly Income Benefit for Permanent Partial Disability (PPD) is the following:

Social Security System (SSS)

  • Amount equivalent to 115% of the sum of:
    • The average monthly salary credit multiplied by the replacement ratio; and
    • One and a half percent of the average monthly salary credit for each credited year of service in excess of ten years;
    • In addition, there is a 10% increase as stated in EO No. 54, series of 2018 and implemented in Board Resolution No. 18-06-24.
    • For SSS/private sector, there is an additional PhP 1,150.00 increase as stated in Executive Order No. 54, series of 2018 and implemented in ECC Board Resolution No. 17-10-38.
  • Provided, That the monthly income benefit shall in no case be less than P250.00.

The ECC Monthly Disability benefit in the private sector would be no less than PhP2,000.00 as stated in Section 2 of Executive Order No. 54, series of 2018.

Government Service Insurance System (GSIS)

  • The monthly income benefit shall be the basic monthly pension as defined in PD 1146
    • plus twenty percent thereof,
    • but shall not be less than P250, nor more than the actual salary at the time of contingency. (ECC Resolution No. 2799, July 25, 1984).
Author's Note: The abovementioned ECC income benefit may not be accurate due to other issuances and actual computation of the agency.

The following are the references regarding Permanent Partial Disability (PDD):

IssuanceTitleDateRemarks
Board Resolution No. 90-12-0090Provision of a carer’s allowance’ to pensioners under the ECP who suffer from work-connected permanent partial disability (PPD) and permanent total disability (PTD), and cannot attend to their needs provided that the SSS shall submit an actuarial projection20 September 1990
(Pension increase given to EC pensioners was in September 2000 at 10%)
Note: Actual Board Resolution not found.
September 2000Repealed
Board Resolution No. 12-09-20Extending the Grant of Carer's Allowance to EC Permanent Partial Disability (PPD) and EC Permanent Total Disability (PTD) Pensioners in the Public Sector27 September 2021
Board Resolution No. 13-07-15Approving a 10% Across-Board Increase in EC Pension for the Private Sector2 July 2013
Executive Order No. 167. 2014Increasing the amount of certain employment compensation benefits for employees in the Private and Public Sectors26 May 2014Repealed
Board Resolution No. 14-06-29Guidelines in the Implementation of Executive Order No. 167 in the Private Sector6 June 2014Repealed
Executive order (E.O.) No. 54, series of 2018increasing Employment Compensation in the Private Sector and Carer's Allowance in the Public Sector8 May 2018
Board Resolution No. 18-06-24Implementing Guidelines in the Retroactive Application of Increase in Monthly EC Pension to all Permanent Partial and Total Disability Pensioners and Death Benefit Pensioners in the Private Sector effective January 2077 as provided under Section 1 of Executive Order (EO) No. 54, series of 201821 June 2018
Board Resolution No. 18-06-26Prescribing the Guidelines on Increasing the Temporary Total Disability (TTD) Benefits in the Private Sector as Provided in Section 7 of Executive Order (EO) No. 54 (increasing Employment Compensation in the Private Sector and Carer's Allowance in the Public Sector)21 June 2018
Board Resolution No. 19-08-28Approving the Increase in the Maximum Daily Income Benefit for EC Temporary Total Disability (TTD) in the Private Sector from PhP 480 to PhP600 in Relation to the new MSC Schedule under the Social Security Act of 201829 August 2019

Less than total loss of member

For Permanent Partial Disability (PDD), if the loss of the member or body part is less, the same monthly income benefit is paid for a portion of the period established for the total loss of the member in accordance with the proportion that the partial loss bears to the total loss. If the result is a decimal fraction, the same shall be rounded off to the next higher integer.

Simultaneous Loss of more than one member

In the event of simultaneous loss of more than one body part or a part thereof, the same monthly income benefit is to be paid for a period equivalent to the sum of the periods established for the loss of the member or part thereof but not exceeding 75. If the result is a decimal fraction, the same shall be rounded off to the higher integer.

Unlisted Injuries and Illnesses

In the case of unlisted injuries or illness in the aforementioned schedule of injuries, the monthly income benefit is equivalent to the percentage of the permanent loss of the capacity for work.

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