Question & AnswerQ&A (EXECUTIVE ORDER NO. 188)
Executive Order No. 188 imposes a ten percent (10%) across-the-board increase in Employees' Compensation (EC) pension for employees in the public sector.
The Employees' Compensation Commission (ECC) approved the increase through Board Resolution No. 15-01-01 dated January 14, 2015, subject to the President's approval.
Under Article 177 (e) of Presidential Decree No. 442, otherwise known as the Labor Code of the Philippines, as amended.
The actuarial stability of the State Insurance Fund (SIF) must be guaranteed, and the increases must not require any increase in contributions from employers or the National Government.
The Government Service Insurance System (GSIS) administers the State Insurance Fund (SIF).
The increase took effect on May 1, 2015.
No, there is no corresponding increase in EC contributions from employers, including the National Government.
The Employees' Compensation Commission (ECC) and the Government Service Insurance System (GSIS) are directed to appropriate and release the necessary funds from the SIF reserves.
The President exercised his powers vested by law to order the increase in EC pensions under the Employees' Compensation Program.
Section 4 states that all orders, proclamations, rules, regulations, or parts thereof inconsistent with this Order are repealed, amended, or modified accordingly.
According to Section 5, the other provisions not affected thereby shall remain valid and subsisting (separability clause).
The ECC is tasked to issue the necessary rules and regulations to implement this Executive Order.
It took effect immediately after its publication in a newspaper of general circulation.