Manila Bulletin

Gov’t work­ers get 10% in­crease in pen­sion

- By GENALYN D. KABILING Business · Finance · Politics · European Commission

Pres­i­dent Aquino has signed Ex­ec­u­tive Or­der No. 188 grant­ing a 10 per­cent across-the-board in­crease in the com­pen­sa­tion pen­sion for work­ers in the public sec­tor.

The up­ward ad­just­ment in the amount of the Em­ploy­ees’ Com­pen­sa­tion (EC) pen­sion for gov­ern­ment em­ploy­ees was ef­fec­tive May 1, 2015.

Un­der the or­der, the Pres­i­dent rec­og­nized there was a need to fur­ther im­prove the ben­e­fits un­der the EC Pro­gram “to make them more re­spon­sive to the wel­fare and de­vel­op­ment needs of a per­son with work-re­lated dis­abil­i­ties.”

The in­crease was granted “pro­vided that the sta­bil­ity of the State In­sur­ance Fund (SIF) shall be guar­an­teed” and there is no cor­re­spond­ing in­crease in EC con­tri­bu­tion from their em­ployer, the na­tional gov­ern­ment.”

A study re­cently made by Gov­ern­ment Ser­vice In­sur­ance Sys­tem (GSIS) showed the State In­sur­ance Fund (SIF) can fi­nance the in­crease in EC pen­sion “af­fect­ing the sta­bil­ity of the SIF and with­out re­quir­ing ad­di­tional con­tri­bu­tions from the Na­tional Gov­ern­ment.”

The com­pen­sa­tion pro­gram seeks to help work­ers who suf­fer workre­lated sick­ness or in­jury re­sult­ing in dis­abil­ity or death. The ben­e­fits in­clude med­i­cal ser­vices, re­ha­bil­i­ta­tion treat­ment, and cash as­sis­tance.

EO 188, signed by the Pres­i­dent last Septem­ber 11, has di­rected the Em­ploy­ees’ Com­pen­sa­tion Com­mis­sion (ECC) and the GSIS) to re­lease funds to cover the in­crease in EC pen­sion from the SIF re­serves.

Im­ple­ment­ing rules and reg­u­la­tions will also be drafted by the ECC to carry out the Pres­i­dent’s latest di­rec­tive.

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