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 increase twice, first to P30/employee/month in 1979 and the second to P100/employee/month of 1% of the employers' salary whichever is lower in 2001;

    Whereas, the heightened awareness on the Employees' Compensation Program (ECP) among workers has resulted into increase in the number of EC claims filed over the years such that EC claims payments have also increased and have in fact already overtaken EC contributions collected from private sector employers beginning in the mid-nineties;

    Whereas, the actuarial study conducted by the Social Security System (SSS) in 2003 revealed that EC claims payments will overtake employers' contribution plus the interest earnings on the invested reserves by CY 2006 which means that the SIF reserves will start to be depleted starting this year;

    Whereas, the same actuarial study revealed that given the trend in claims payment and maintaining the present level of EC benefits enjoyed by employees, the present reserves of P22 billion will be wiped out in twenty years or by 2026 if no increase in employers' contribution shall be implemented;

    Whereas, it is imperative for the Commission to implement a new and reasonable rate of private sector employers' contribution in order to preserve the integrity and viability of the SSS-managed SIF so it will remain responsive to the need to settle all future claims of victims of work contingencies;

    Whereas, it is the position of this Commission that even as the need to increase employers' contribution to the private sector SIF is necessary, the same should not, however, unduly burden employers especially those in the micro, small and even in the medium categories;

    Whereas, a study requested by the ECC from SSS on the various options for increase in employers' contribution to the SIF has given the Commission an option that will ensure the viability of the SIF even if we maintain the present rate of employers' contribution of P10/employee/ month for the minimum wage earners and those in the higher salary brackets provided that employers' contribution for workers with monthly salary credit (MSC) of Fifteen Thousand Pesos (P15,000.00) should be computed at the rate of 0.2% of the MSC;

    Now, therefore, be it resolved, to amend Rule V, Section 1, paragraph 2 of the Amended Rules on Employees' compensation by adopting a rate of employers' contribution which fixed at P10/employee/month for employees with Monthly Salary Credit (MSC) of Fourteen Thousand Five Hundred Pesos (P14,500.00) and below, and a contribution rate of 0.2% of the Monthly Salary Credit for employees with MSC of Fifteen Thousand Pesos (P15,000.00);

    Resolved further, to provide the SSS with a copy of this Resolution for it to undertake the necessary action to collect the new prescribed rate of contribution from all employers and also to the DOLE Regional Offices for the DOLE Inspectorate Corps to help enforce and monitor compliance by all employers with this Resolution;

    Resolved finally, that this Resolution shall take effect on 01 January 2007 and after its publication in the official gazette and two newspaper of general circulation;

    Approved, in Makati City, 31 August, 2006.