President Benigno S. Aquino recently approved the increase of Employees’ Compensation Funeral Benefit from P10,000 to P20,000 for both the employees in the private and public sectors and 10% across-the-board increase in EC pension for all EC permanent partial disability, permanent total disability and survivorship pension in the private sector.

Labor and Employment Secretary and Chair of the ECC Board Rosalinda Dimapilis-Baldoz explained that Executive Order No. 167 approved on 26 May 2014 is based on the actuarial studies conducted by the Social Security System and the Government Service Insurance System.

“The increase in benefits will not have a significant effect on the SSS-managed and GSIS-managed State Insurance Fund,” she said.

“The EC SIF has the capability to finance the increase in funeral benefits for employees in both the private and public sectors from P10,000 to P20,000 even without corresponding increase in the EC contributions from the employers, both private and public,” Baldoz clarified.

Executive Director Stella Zipagan-Banawis said that ECC is continuously reviewing policies to improve its benefits. “The funeral benefits for employees in the private sector was worth P3,000 since 1975, it was increased to P10,000 in 1993, and increased again to P20,000 this year,” said Banawis.

For the public sector, the funeral benefit was only P3,000 in 1975. It was increased to P10,000 in 2013 and again increased to P20,000 this year.

“It is high time for ECC to enhance its benefits,” Banawis expalined. “The average funeral service cost nowadays is P43,000, so we see the need of increasing it to P20,000 to alleviate the financial burden of the families of the deceased workers,” added Banawis.

In addition to the increase of funeral benefits, a 10% across-the-board increase in the EC pension for all EC permanent partial disability, permanent total disability and survivorship pension starting in September 2013 for the private sector has also been approved by the President.

The increase to EC pension in the private sector does not require an increase in the EC contributions from the employers.

ECC provides benefits to employees who met accident, sickness or death in the event of work-connected contingencies.

The Employees’ Compensation Program benefits are loss of income, medical, carer’s allowance, rehabilitation services and death benefits.

The funeral benefit given by ECP is in addition to the funeral benefit given by the SSS provided that the cause of death of the covered employee is work-connected.