Adopting a New Prescribed Rate of Employers' Contribution to the State Insurance Fund for the Private Sector

August 31, 2006ECC BOARD RESOLUTION NO. 06-08-70ADOPTING A NEW PRESCRIBED RATE OF EMPLOYERS' CONTRIBUTION TO THE STATE INSURANCE FUND FOR THE PRIVATE SECTORWHEREAS, Articles 177 (a) and 183 (b) of the Labor Code of the Philippines, as amended by Presidential Decree No. 626, empower this Commission to assess and fix the rate of contribution from all employers to the State Insurance Fund (SIF) based on experience in risk, cost of administration, and the actual, anticipated, as well as unexpected losses, as may be required to maintain the viability of the SIF; WHEREAS, while the law and the existing Rules provide for an employers' contribution to the SIF equivalent to one percent (1%) of every employee's monthly salary credit (MSC), the present private employers' contribution is still at TEN PESOS (P10) per employee per month pegged by the Commission in 1975 while the public sector employers' contribution was already increased twice, first to P30/employee/month in 1979 and the second to P100/employee/month or 1% of the employee's salary whichever is lower in 2001;WHEREAS, the heightened awareness on...