Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
    EXPLANATORY NOTE
The Department of Labor and Employment is mandated to promote gainful 
employment opportunities, develop human resources, protect workers and 
promote their welfare and maintain industrial peace. 
The Employees Compensation Commission (ECC) is a government 
corporation. It is attached to the Department of Labor and Employment (DOLE) 
for policy coordination and guidance. 
The ECC was created on 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. 
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. 
This House Bill seeks to provide Modernization Funding to the Employees 
Compensation Commission (ECC), to ensure that the country fulfills its 
commitments to provide meaningful and appropriate compensation to workers. 
Thus, the early passage of this bill is earnestly requested. 
October 3, 2022
11:00 am
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MICHAEL L. ROMERO 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. Romero 
AN ACT 
PROVIDING FOR MODERNIZATION FUNDINGFOR THE 
EMPLOYEES COMPENSATION COMMISSION (ECC), INCREASING 
AND REORGANIZING ITS ADMINISTRATION, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 
1.
DECLARATION OF POLICY – It shall hereby be a declared 
policy of the state to: 
•
formulate policies and guidelines for the improvement of the
employees’ compensation program.
•
Review and decide on all EC appealed claims disapproved by the
Systems; and
•
Initiate policies and programs toward adequate occupational health
and safety and accident prevention in the working environment.
The state shall foster the organization and functions of the Department of Labor 
and Employment in accordance with the provisions of Executive Order No. 126, 
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as amended, the Labor Code of the Philippines, and other relevant and 
pertinent legislations. 
The Department shall have exclusive authority in the administration and 
enforcement of labor and employment laws and such other laws as specifically 
assigned to it or to the Secretary of Labor and Employment. 
The state shall formulate policies for the efficient and effective administration 
and management of all manpower, skills and competencies to ensure 
compliance. 
SECTION 
2. 
MODERNIZATION FUNDING. – The amount of Five Hundred 
Million Pesos (Php 500,000,000.00) for the operation and administration of the 
Employees Compensation Commission shall be chargeable against funds for the 
purpose and other sources recommended by the Department of Budget and 
Management (DBM). Thereafter, appropriations for the Employees Compensation 
Commission shall be included in the budget proposals under the Department of 
Labor and Employment (DOLE). 
Thereafter, the amount needed for the continued implementation of the 
modernization program, shall be included in the annual General Appropriations 
Act (GAA). 
SECTION 
3. 
ECC MODERNIZATION FUND – There is hereby 
created the ECC Modernization Fund to be used exclusively for the ECC 
Modernization Program. 
The ECC Modernization Fund shall be administered by the Secretary of the DOLE 
in accordance with existing government budgeting, accounting and auditing 
rules and regulations. 
SECTION 
4. 
PROGRESS REPORT – The Secretary of DOLE shall 
prepare an annual report on the status of the implementation of the ECC 


Modernization Programs which shall be submitted, to the Office of the President 
and to the Chairpersons of the Committee on Labor and Employment of the 
Senate and the House of Representatives. 
SECTION 
5. 
PERIOD OF IMPLEMENTATION – The modernization 
program under this Act shall be implemented for an initial period of two (2) 
years:  
Provided, that payments for multi-year contract obligations incurred 
under this Act may extend beyond this period:  
Provided, further, That the ECC shall continue to develop, modernize and 
constantly update its operational capabilities to keep pace with best global 
practices. 
SECTION 
6. 
POWERS AND FUNCTIONS. – The ECC shall continue to 
exercise and uphold the following powers and functions; but not limited to: 
Under Article 177 of P.D. 626 as amended, the ECC has the following powers 
and functions: 
a. To assess and fix a rate of contributions from all employers; 
b. To determine the rate of contribution payable by an 
employer whose records show a high frequency of work 
accidents or occupational disease due to failure by the said 
employer to observe adequate measures; 
c. To approve rules and regulations governing the processing 
of claims and the settlement of disputes arising therefrom 
as prescribed by the System; 
d. To initiate policies and programs toward adequate 
occupational health and safety and accident prevention in 
the working environment, rehabilitation other than those 
provided for under Article 190 hereof, and other related 


programs and activities, and to appropriate funds therefor. 
(As amended by Sec. 3, P.D. 1368). 
e. To make the necessary actuarial studies and calculations 
concerning the grant of constant help and income benefits 
for permanent disability and death, and the rationalization 
of the benefits for permanent disability and death under 
the Title with benefits payable by the System for similar 
contingencies; Provided; That the Commission may 
upgrade benefits and add new ones subject to approval of 
the President; and Provided, Further, That the actuarial 
stability 
of 
the 
State 
Insurance 
Fund 
shall 
be 
guaranteed; Provided, Finally, that such increases in 
benefits shall not require any increases in contribution, 
except as provided for in paragraph (b) hereof. (As amended 
by Sec. 3, P.D. 1641). 
f. To appoint the personnel of its staff, subject to civil service 
law and rules, but exempt from WAPCO law and 
regulations; 
g. To adopt annually a budget of expenditures of the 
Commission and its staff chargeable against the State 
Insurance Fund; Provided, that the SSS and GSIS shall 
advance on a quarterly basis the remittance of allotment of 
the loading fund for this Commission’s operational 
expenses based on its annual budget as duly approved by 
the Ministry of Budget and Management. (As amended by 
Sec. 3, P.D. 1921). 
h. To have the power to administer oath and affirmation, and 
to issue subpoena and subpoena duces tecum in 
connection with any question or issue arising from 
appealed cases under this Title. 
i. To sue and be sued in court; 


j. To acquire property, real or personal, which may be 
necessary or expedient for the attainment of the purposes 
of this Title; 
k. To enter into agreements or contracts for such services or 
aid as may be needed for the proper, efficient and stable 
administration of the program; 
l. To perform such other acts as it may deem appropriate for 
the attainment of the purposes of the Commission and 
proper enforcement of the provisions of this Title. (As 
amended by Sec. 18, P.D. 850) 
SECTION 
7. 
TRANSITORY 
PROVISION – 
Existing 
industries, 
businesses and offices affected by the implementation of this Act shall be given 
six (6) months transitory period from the effectivity of the IRR or such other 
period as may be determined, to comply with the requirements of this Act. 
SECTION 
8. 
IMPLEMENTING RULES AND REGULATIONS. – The 
departments and agencies charged with carrying out the provisions of this Act 
shall, within sixty (60) days after the effectivity of this Act, formulate the 
necessary rules and regulations for its effective implementation. 
SECTION 
9. 
REPEALING CLAUSE. – All laws, decrees, executive 
orders, rules and regulations, or parts thereof inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 
SECTION 
10. 
SEPARABILITY CLAUSE. – If, for any reason, any 
section or provision of this Act is held unconstitutional or invalid, the other 
sections or provisions hereof shall not be affected thereby. 
SECTION 
11. 
EFFECTIVITY CLAUSE. – This Act shall take effect 
after fifteen (15) days from its publication in the Official Gazette or in at least two 
(2) national newspapers of general circulation whichever comes earlier. 


 
Approved,