Policy and Program Administration

EMPLOYEE WELFARE PROGRAMS

Lizette D. Dabbay

• Employee welfare means “the efforts to make life worth living for workmen.”

• It means anything done for the comfort and improvement, intellectual or social, of the employees over and above the wages paid which is not a necessity of the industry

Employee Welfare

Objectives of Employee Welfare

* to help improve the employee, the employer and the society as a whole

* to help improve the loyalty and morale of the employees

* to reduce labor turnover and absenteeism

* to help improve the goodwill and public image of the enterprise

* to help improve industrial relations and industrial peace

Features of Employee Welfare

• Employee welfare is a comprehensive term including various services, facilities and amenities provided to employees for their betterment.

• The basic purpose is to improve the lot of the working class.

• Employee welfare measures are known as fringe benefits and services. These measures may be both voluntary and statutory

Classification of Welfare Schemes • STATUTORY WELFARE SCHEMES

The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety (Book IV, Labor Code of the Philippines).

• Safe Drinking Water• Facilities for sitting• First aid appliances• Latrines and Urinals• Canteen facilities• Spittoons• Lighting, etc….

• NON-STATUTORY SCHEMESThe non statutory schemes differ from organization to organization and from industry to industry

• Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up

• Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules

• Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters.

Examples of social security benefits provided by laws:

- Medical care- Sickness benefit in cash- Old age pension or retirement benefit- Invalidity pension- Maternity benefit- Accident benefit- Survivor’s benefit and others….

Dept. of Labor and Employment

• The Department of Labor and Employment (DOLE) is the primary government agency mandated to promote gainful employment opportunities, develop human resources, protect workers and promote their welfare and maintain industrial peace.

• Rosalinda Dimapilis-Baldoz , a

Filipino lawyer, civil servant, and labor arbiter is the current Secretary of DOLE.

Other Government Agencies attending to Employee’s Welfare:

Civil Service Commission

• The Civil Service Commission (CSC) is the central personnel agency of the Philippine government. It is one of the three independent constitutional commissions with adjudicative responsibility in the national government structure, it is also tasked to render final arbitration on disputes and personnel actions on Civil Service matters.

• Dr. Francisco Duque III, former Secretary of the Department of Health, is the current Chairperson of the Commission

Overseas Workers Welfare Administration

• The Overseas Workers Welfare Administration (OWWA) provides welfare assistance to registered overseas workers and their dependents.

• REBECCA J. CALZADO, is the current OWWA Administrator

Philippine Overseas Employment Administration

• The Philippine Overseas Employment Administration is responsible for optimizing the benefits of the country's overseas employment program.

• POEA connects to the world and in partnership with all stakeholders, facilitates the generation and preservation of decent jobs for Filipino migrant workers, promotes their protection and advocates their smooth reintegration into Philippine society.

• HANS LEO J. CACDAC, is the current POEA Administrator

PAG-IBIG (Home Mutual Development Fund)

• The Pag-Ibig Fund (HMDF) was basically conceptualized to address two of the country's basic concerns: generation of savings and provision of the shelter for the workers.

• Hon. Vice-President JEJOMAR C. BINAY, is the current Chairman and Atty. Darlene Marie B. Berberabe, is the CEO

Department of Social Welfare and Development

• The DSWD provides a balanced approach to welfare whereby the needs and interest of the population are addressed not only at the outbreak of crisis but more importantly at the stage that would inexorably lead to such crisis.

• Corazon Juliano-Soliman, is the current DSWD Secretary

National Council for the Welfare of Disabled Persons

• The National Council for the Welfare of Disabled Persons (NCWDP) is the national government agency mandated to formulate policies and coordinate the activities of all agencies, whether public or private, concerning disability issues and concerns.

• Rosie Lovely T. Romulo, is the present Chairperson of NCWDP

Occupational Safety and Health Center

• The OSHC is envisioned as the national authority for research and training on matters pertaining to safety and health at work under DOLE.

• It provides the expertise and intervention mechanism to improve workplace conditions in the Philippines.

• Ma. Teresita S. Cucueco, is the present Exec. Director of OSHC

Government Service Insurance System

• A social insurance institution created to secure the future of all Employees of the Philippine government.

• It provides and administers a pension fund that has the following social security benefits: life insurance, retirement benefits, and disability benefits for work-related accidents and death benefits. (Commonwealth Act Number 186, passed on November 14, 1936)

• Likewise, the GSIS manages the General Insurance Fund as mandated by Republic Act 696 or the Property Insurance Law. It provides comprehensive protection to government insurable interests.

• Daniel L. Lacson, Jr., current Chairman of the Board of Trustees

Government Service Insurance System

COVERAGE • The GSIS covers all government workers irrespective of their employment

status (permanent, temporary), except:

- Members of the Judiciary and Constitutional Commissions who are covered by separated retirement laws;

- Contractual employees who have no employee-employer relationship with their agencies;

- Uniformed members of the Armed Forces of the Philippines and the Philippine National Police, including the Bureau of Jail Management and Penology and the Bureau of Fire Protection.

Government Service Insurance System

BENEFITS AND SERVICES:

• Life Insurance* Enhanced Life Plan (ELP)

* Life Endowment Plan (LEP)

• Retirement Benefit

• Separation Benefit• Employee’s Compensation Benefit

GSIS Life Insurance Benefit

• Compulsory Life Ins.The Enhanced Life Policy (ELP) seeks to enhance the death benefits of your family and, at the same time, to simplify the administration of the compulsory life insurance component of the GSIS benefit program.

Who are covered by the ELP?• A government employee who

entered the service after July 31, 2003, and are hence eligible for GSIS regular membership under RA 8291.

What are the features of the ELP?• shall be a yearly term renewable

life insurance cover based on your fixed monthly compensation.

• shall have neither a maturity value nor fixed insurance cover.

• the computation of insurance cover shall be based solely on your annual compensation while you are in government service, multiplied by a predetermined amount of insurance (AOI) factor.

• Your age and length of service will no longer be a factor in determining the amount of your insurance coverage.

GSIS Life Insurance Benefit

What are the features of the ELP?

•••••̉• The ELP will also earn cash value

in the form of termination value, which you can withdraw upon separation or retirement and shall be the basis of your yearly cash dividends and policy loan.

• An automatic premium loan (APL) facility secured against the policy’s termination value shall also be provided to answer for nonpayment of premiums.

• The ELP may lapse if no payment of premiums is effected within a prescribed period but may automatically be reinstated or reissued without the need to issue a new policy once you resume payment.

GSIS Life Insurance Benefit

• Life Endowment Plan (LEP) - s a GSIS member, you automatically enjoy life insurance benefits, providing protection for you and your loved ones. If you entered the service prior to August 1, 2003, you are entitled to the Life Endowment Policy (LEP).

• LEP also provides coverage against death whether due to natural or accidental causes, permanent total disability and other benefits upon maturity or separation from the service.

• Apart from the superior life insurance packages these programs offer, policy holders can also avail of policy loan.

GSISRetirement Benefit Programs

• RA 8291 - 5 yr. lump sum or cash payment with instant pension-choose your personal reward.

• RA 660 – also called “Magic 87”, this provides both annuity and lifetime pension.

• RA 1616 - Refund your GSIS premiums with this "take-all" option at the same time get gratuity payment from your employer.

• PD 1146 - Only those who have been in government service after May 31, 1977 but before June 24, 1997 can avail of this retirement program. Retirement under PD 1146 gives you a choice between a Basic Monthly Pension (BMP) and Cash Payment.

• RA 7699 - (Portability Law) Combine your GSIS and SSS creditable years of service to qualify for retirement program offered by both pension funds.

GSIS Disability Benefit

• Disability benefits are benefits granted to a member due to the loss or reduction in earning capacity caused by a loss or impairment of the normal functions of the employee's physical and/or mental faculties as a result of an injury or disease.

• The loss in earning capacity shall be determined on the basis of the following:

• 1. The employee's actual loss of income from the usual occupation

• 2. The capacity to engage in any other gainful occupation because of impairment

• A disability may either be:   Permanent Total      Permanent Partial

    Temporary Total

• Injuries resulting in any of the following are deemed Permanent Total Disability (PTD)

a. Complete loss of sight of both eyes

b. Loss of two limbs at one or above the ankle or wrist

c. Permanent complete paralysis of two limbs

d. Brain injury resulting in incurable imbecility, insanity or other irreversible conditions

GSIS Employee’s Compensation

• The Employees' Compensation (EC) benefits or disability benefits is a compensation package for public and private sector employees and their dependents in the event of work-related injury, sickness, disability or death. The EC is a purely employer-based contribution benefit. Thus, the employee is not required to contribute any amount to the program. The employee compensation benefits are in the following options:

– Cash income benefits for disability or death– Medical and related services for injury or sickness– Rehabilitation services ( in addition to monthly cash income benefit) for

permanent disability

GSIS Employee’s Compensation

• The benefits given to the employee or his beneficiaries are in the form of:– Daily cash income benefit for temporary total disability (TTD)– Monthly cash income benefit for permanent total disability (PTD) on a

lifetime basis– Monthly cash income benefit for permanent partial disability (PPD)– Monthly cash income benefit for death, also on a lifetime basis, except

for benefit paid to secondary beneficiaries, which is a monthly pension not to exceed 60 months but not less than fifteen thousand pesos

– Medical services, appliances and supplies for injury or sickness– Rehabilitation services for permanent disability– Career's allowance for permanent disability.

GSIS Other Benefits

• Burial Benefits - Death, although inevitable, is always an unpleasant incident in every one's life. It can also be costly to those who we leave behind. But with GSIS's funeral benefit, our survivors will have less to worry about.

• Survivorship - When a member or pensioner dies, his or her beneficiaries are entitled to cash and/or pension benefits, subject to the existing rules and regulations on survivorship and policies on the maximum amount of survivorship pension.

GSIS Other Privileges

• Consolidated Loan - A member who has been in government service for at least 10 years can avail of a Conso-Loan equivalent to 10 months of their monthly salary. The minimum creditable years in service a member has to have to qualify is 20 months, with the Conso-Loan proceeds equivalent to three months of his monthly salary. The gross loan amount shall be a multiple of the basic monthly salary (BMS), depending on the member’s accumulated record of creditable service (RCS), to wit:

Record of Creditable Service Maximum Loan Amount • Less than 20 months None• 20 months or more 3 BMS • 40 months or more 4 BMS • 5 years or more 7 BMS

• 10 years or more 10 BMS

GSIS Other Privileges

• Policy Loan - Policy loan is a loan program which you can avail from your GSIS life insurance policy. There are two kinds of compulsory GSIS life insurance programs which are automatically granted to you the day you enter government service: the Enhanced Life Policy (ELP) and the Life Endowment Policy (LEP).

• ELP provides cover for you if you entered the service after July 31, 2003. Members whose policies have matured will also be covered by ELP. The maximum loanable amount you can avail of under ELP is up to 90 percent of the accumulated termination value of this policy.

• LEP refers to the life insurance policy issued to you if you entered the service prior to August 1, 2003. The maximum loanable amount you can avail of under LEP is up to 50 percent of the accumulated termination value of this policy.

GSIS Other Privileges

• Emergency Loan - The Emergency Loan is payable in three years or 36 equal monthly installments at an interest rate of six percent per annum.If an emergency loan is renewed, the balance of the outstanding loan will be deducted from the proceeds of the new loan.

Who can avail of the Emergency Loan?• To qualify for the emergency loan, the member-applicant must be: a bona

fide resident or employee of the government office within the declared calamity area; be in active service and not on leave of absence without pay; has no pending criminal or administrative charges; has no arrearages in the payment of mandatory social insurance contributions; and has no loan that has been declared in default.

• For a calamity-hit area, it must be declared in a state of calamity by its Sangguniang Panlalawigan/Panglungsod and approved by the GSIS Board of Trustees before members working in government offices in the said area become eligible for the Emergency Loan.

GSIS Other Privileges

• eCard Plus - The GSIS eCard is, by far, the most innovative government-issued identification card today. This is because the eCard Plus is not just a GSIS membership ID Card, it is also a GSIS transactional card, disbursement card, ATM Card, VISA debit card, hospitalization discount card, medicine discount card, and tuition discount card, among others.

• Using your eCard Plus, you can check your GSIS records, renew your active status (for pensioners), and even apply for GSIS loans, when you go to any G-W@PS kiosk installed in all GSIS offices and other major government offices all over the country.

– Members can also apply for the one-time P10,000 Cash Advance.– Know your membership records, record of creditable services, loans

and other important facts about your GSIS membership.

GSIS Other Services

• GCare Plans - G-Care offers motor vehicle insurance, personal accident insurance and fire insurance with the most affordable rates in the country.

• My Shield is the lowest insurance premium rate against personal accident in the market with about Php40 for every Php50,000 annual coverage. A minimum coverage may range from Php50,000 to a maximum of Php5 million

• Home Shield provides insurance coverage against fire.

• Auto Shield provides a comprehensive insurance coverage for vehicles at 20% less than the prevailing rate in the market.

SOCIAL SECURITY SYSTEM

• The Social Security System (SSS) administers social security protection to workers in the private sector.

• It manage a sound and viable social security system which shall promote social justice and provide meaningful protection to members and their families against the hazards of disability, sickness, maternity, old age, death and other contingencies resulting in loss of income or financial burden.

• Juan B. Santos, is the present Chairman of SSS.

SSSBenefits

• Sickness - A daily cash allowance paid for the number of days a member is unable to work due to sickness or injury.

• the member is unable to work due to sickness or injury and is confined either in a

• hospital or at home for at least four days;

• He/she has paid at least three months of contributions within the 12-month period

• immediately before the semester of sickness;

• He/she has used up all company sick leaves with pay for the current year and has

• duly notified his/her employer;• He/she must notify the SSS directly by

filing a sickness benefit application if he/she is

• separated from employment, a voluntary or self-employed member.

SSSBenefits

• Maternity - A daily cash allowance granted to a female member who is unable to work due to childbirth or miscarriage

• The member has paid at least three months of contributions within the 12-month

• period immediately before the semester of her childbirth or miscarriage;

• If employed, she must has given notification of her pregnancy through her employer;

• She must directly notify the SSS if she is separated from employment, a voluntary or self-employed member

SSSBenefits

• Disability - A cash benefit granted either as a monthly pension or a lump sum amount to a member who becomes permanently disabled, either partially or totally

• The member has paid at least one month contribution before the semester of disability;

• To qualify for a disability pension, the member must have paid at least 36 monthly contributions prior to the semester of disability;

• If with less than 36 monthly contributions, he/she is granted a lump sum amount

SSSBenefits

• Retirement - A cash benefit granted either as a monthly pension or a lump sum amount to a member who can no longer work due to old age

• The member is at least 60 years old (optional retirement) separated from employment or has ceased to be self-employed; and had paid at least 120 monthly contributions prior to the semester of retirement;

• The member is 65 years old (mandatory retirement), whether employed or not, and had paid at least 120 monthly contributions prior to the semester of retirement.

• To qualify for a retirement pension, the member must have paid at least 120 monthly contributions prior to the semester of retirement;

• If with less than 120 monthly contributions, he/she is granted a lump sum amount

SSSBenefits

• Death - A cash benefit granted either as a monthly pension or a lump sum amount to the beneficiaries of a deceased member

• Funeral - A funeral grant of P20,000 to whoever paid for the burial expenses of the deceased member

• A monthly Death Pension is granted to the member's primary beneficiary (legitimate spouse until he/she remarries, and dependent legitimate, legitimated or legally adopted, and illegitimate children) if the member has paid at least 36 monthly contributions prior to the semester of death;

• A lump sum amount is granted to the primary beneficiary if the deceased member has less than 36 monthly contributions.

• If there are no primary beneficiaries, the member's secondary beneficiaries (dependent parents) shall be given a lump sum amount.

SSSBenefits

EMPLOYEES’ COMPENSATION (EC) PROGRAM• the EC Program aims to assist those who suffer from work-connected

sickness or injury resulting in disability or death. Starting June 1984, the benefits under the EC Program may be enjoyed simultaneously with benefits under the Social Security Program, thus, allowing double compensation for covered members who suffer work-related contingencies. All SSS-registered employers and their employees are compulsorily covered under the EC Program and need not register again under the EC

SSSLoan Privileges

• Salary - A cash loan granted to an employed, currently- paying self-employed or voluntary member.

It is intended to meet the member's short-term credit needs.

• An employed, currently-paying self-employed or voluntary member who has six posted monthly contributions in the last 12 months prior to the month of filing of loan application.

• For one-month loan, the member must have 36 posted monthly contributions prior to the month of filing of loan application.

• For two-month loan, the member must have 72 posted monthly contributions prior to the month of filing of loan application. If employed, the member's employer must be updated in contribution and loan

• remittances. The member must also be updated in the payment of other loans with SSS

Employee’s Compensation Commission

• The ECC is a government corporation. It is attached to the Department of Labor and Employment for policy coordination and guidance.

• It is a quasi-judicial corporate entity created to implement the Employees’ Compensation Program (ECP). The ECP provides a package of benefits for public and private sector employees and their dependents in the event of work-connected contingencies such as sickness, injury, disability or death.

Employee’s Compensation Commission

LEGAL MANDATE - The ECC was created in November 1, 1974 by virtue of PD 442 or the Labor Code of the Philippines. It, however, become fully operational with the issuance of PD 626 which took effect January 1, 1975.

MAIN FUNCTIONS:• To formulate policies and guidelines for the improvement of the employees'

compensation program;• To review and decide on appeal all EC claims disapproved by the Systems; • To initiate policies and programs toward adequate occupational health and

safety and accident prevention in the working environment

Employee’s Compensation Commission

MISSION

• Build and sustain among employees and employers a culture of safety and healthful environment in the workplace;

• Ensure at all times that workers are informed of their rights, benefits and privileges under the Employees’ Compensation Program (ECP);

• Develop and implement innovative policies, programs and projects that meet the needs of workers with work-connected contingencies;

• Promptly and fairly resolve all cases brought before it• Restore dignity and self-esteem among occupationally disabled workers; • Safeguard the integrity of the State Insurance Fund.

Employee’s Compensation Commission

PROGRAMS, PROJECTS AND ACTIVITIES

• Development and Review of Policies on the Employees’ Compensation Program (ECP). This entails development and review of policies and procedures for the improvement of the ECP such as increase of benefits and/or expands the coverage of the ECP.

• ECP Information Dissemination Services This program is designed to increase public awareness on the Employees Compensation Program (ECP).

Employee’s Compensation Commission

• Rehabilitation of the Persons with Work-Related Disability (PWRDs) Program The main objective is to facilitate the integration of PWRDs into the economic mainstream of society through the following programs and projects:

1. ECC-Quick Response to PWRDs This project aims to provide immediate assistance to workers or their families in the event of major work accidents or outbreak of occupational diseases at the workplace. The ECC intervention includes psycho-social counseling services, medical help and assistance in the filing of the necessary claims with the System.

2. KAGABAY Project “Katulong at Gabay sa Manggagawang May Kapansanan” or KaGaBay is an assistance project to PWRDs which provides vocational skills and entrepreneurial training and other assistance that will allow PWRDs to find employment or self-employment.

3. Physical Restoration of PWRDs An assistance project to facilitate the provision of ECC-funded rehabilitation services like physical therapy, occupational therapy and provision of rehabilitation appliances.

Employee’s Compensation Commission

4. Job Placement Facilitation This involves assistance to PWRDs and/or their children to find employment or re-employment

5. Prevention Program in the Workplace This project aims to promote health and protection of workers in the workplaces by raising the employers and workers awareness on the value of adopting and observing appropriate preventive measures.

ECC Organizational Chart