Gov’t workers get 10% increase in pension
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.