1. Framework at a Glance

Source instrument	Key provisions on accident-related absences
Philippine Constitution (Art. XIII, Sec. 3)	State shall “afford full protection to labor… safety and health of workers.”
Labor Code of the Philippines (Pres. Decree 442, as renumbered)	• Book III (Conditions of Employment): “Service Incentive Leave” (SIL). • Book IV, Title II (Employees’ Compensation & State Insurance Fund): income benefits for work-connected injury or sickness (PD 626).
Republic Act 11199 (Social Security Act of 2018)	SSS sickness benefit for non-work & work-related injuries causing at least 3 days’ confinement or absence.
Employees’ Compensation Commission (ECC) issuances	Detailed rules on EC temporary total disability (TTD), permanent disability, death, medical & rehab benefits.
R.A. 11058 & D.O. 198-18 (OSH Law & IRR)	Employer’s duty to prevent accidents; mandatory reporting and medical care.
Civil Code & tort principles	Damages against the employer in case of negligence beyond statutory benefits.
Collective Bargaining Agreements (CBAs) / Company policy	Often grant paid sick leave beyond statutory minimum, or wage-continuance during recuperation.

2. Determining the Nature of the Accident

Work-connected (industrial) accident Occurs “while performing duties and functions of employment” or “while going to and from work” under the proximate-cause doctrine. ➜ Statutory remedies cascade: SSS sickness benefit → ECC temporary total disability (or permanent disability, death) → medical services & rehab → possible damages.
Non-work-connected accident E.g., motorcycle crash during a weekend. ➜ SSS sickness benefit only (plus whatever paid leave the CBA/company policy provides).

Tip Always evaluate first causality; the classification controls the rate, duration, and the fund (SSS alone vs. SSS + ECC).

3. Monetary Entitlements in Detail

3.1 Statutory Paid Leave (Labor Code Book III)

Benefit	Coverage	Duration & rate
Service Incentive Leave (SIL)	All rank-and-file employees who have rendered ≥ 1 year of service (unless already enjoying ≥ 5 days of leave).	Five (5) paid days per year; convertible to cash if unused. May be used for accident-caused absence.
Company-granted sick leave / vacation leave	Based on policy or CBA (no national law mandates beyond SIL in the private sector).	Common practice: 10-15 paid SL, often commutable to cash; can be extended, advanced, or offset against future leave credits.

3.2 SSS Sickness Benefit (R.A. 11199, §14)

Requirement	Highlights
Minimum contributions	At least 3 monthly SSS contributions within the 12-month period immediately preceding the semester of contingency.
Period of incapacity	Injury or sickness (incl. accident) causes ≥ 3 consecutive days of absence or confinement.
Daily cash allowance	90 % of the average daily salary credit (ADSC), rounded to the next higher peso.
Maximum duration	120 days per calendar year, extendible to 240 days if still awaiting permanent-disability evaluation.
Payment mechanism	Employer advances the benefit within 30 days from application; reimbursed by SSS upon approval.
Employer share	Employer shoulders the employee’s wage for the first 3 days (these are not reimbursable by SSS).

3.3 Employees’ Compensation (EC) Income Benefits (PD 626 Title II)

Type	Rate & ceiling (current ECC circulars)*	Limit
Temporary Total Disability (TTD)	100 % of the ADSC but not < ₱10 nor > ₱480 per day; ECC pays starting on the 4th day of disability.	Up to 120 days, extendible to 240 days for exceptional cases.
Permanent Partial / Total Disability	Schedules in Art. 199 & 200 (renumbered) give lump-sum or pension; EC pays concurrently with SSS permanent-disability pension.	PPD: period varies per body part; PTD: lifetime or until re-evaluation.
Death benefit	Primary beneficiaries: monthly pension + ₱10,000 funeral benefit (SSS) and EC funeral benefit of ₱30,000 (latest circular). Secondary beneficiaries: limited pension.
Medical, rehab & appliances	Actual cost, subject to ECC Medical Fee Schedule, plus vocational rehabilitation & carer’s allowance for PTD.

* ECC/SSS issue periodic circulars adjusting the minimum-maximum daily benefit; check the latest bulletin when advising clients.

3.4 Salary-Continuance Arrangements

CBA may oblige the employer to pay full wages during accident-caused absence (common in mining, petroleum, and unionized plants).
Company practice may grant accident leave (often at 100 % pay for 30–60 days, then 80 % thereafter, etc.).
Once wages are continued, the employer can claim SSS/ECC reimbursements but must remit the cash benefit to the employee or offset it against the salary advanced (Art. 117 of the Labor Code on deductions with employee consent).

4. Step-by-Step Claim Procedure (Private-Sector Employee)

Step	Timeline	Actor	Form / Document
1. Obtain medical certificate confirming incapacity.	Immediately after accident	Employee / attending physician	Physician’s Report
2. File Sickness Notification (SN) with employer.	Within 5 calendar days from start of disability; 1 day if separated or voluntary filer.	Employee	SSS Form B-300
3. Employer transmits SN to SSS branch.	Within 5 days from receipt (if confinement) or 5 days after 14th day (if house confinement).	Employer HR / Payroll	SSS Form B-300 (employer’s certification)
4. Employer advances daily allowance.	Not later than 30 days from filing.	Employer	Payroll voucher
5. File EC Notification (ECN) if accident is work-related.	Within 3 days of knowledge/occurrence.	Employer	EC Form B-309, Accident/Illness Report
6. SSS & ECC adjudication.	Typically 10–30 days	SSS / ECC	Notice of Approval or Denial
7. Reimbursement to employer / direct deposit to separated employee.	Within 15 days after approval	SSS	Cheque / electronic credit
8. Post-TTD evaluation for permanent disability if still incapacitated after 120/240 days.	Before 240th day	Employer & attending physician	EC Medical Evaluation Sheet

5. Employers’ Ancillary Obligations

Medical & first aid (R.A. 11058; DO 198-18): provide medicines, employer-paid transport to hospital, maintain occupational health personnel.
Accident reporting: submit Work Accident/Illness Report (WAIR) to the DOLE regional office within 24 hours for fatal or serious accidents; within 30 days for minor cases.
Premium contributions: timely remittance of SSS and Employees’ Compensation share (EC contributions entirely employer-paid).
No retaliation: employee’s exercise of EC rights is a protected activity; dismissal or discrimination for filing a claim is illegal.
Reinstatement vs. disability: if permanent disability renders the employee unfit, employer may validly terminate under Art. 299 [formerly 283] (closure of business or disease) provided due notice and separation pay equivalent to half-month salary per year of service (SEC. 4(b) Rule I, Book VI, Implementing Rules).

6. Distinct Regimes

Sector / Worker	Governing rule	Notable distinctions
Government employees	R.A. 8291 (GSIS Law) & ECC (through GSIS).	Sick leave credits: 15 days SL + 15 days VL per year; GSIS pays disability & EC benefits.
Seafarers	POEA-SEC (Standard Employment Contract) & Maritime Labor Convention.	“Sickness allowance” = 120 days at basic wage; assessed by company-designated physician; CBA‐driven higher benefits.
Overseas Filipino Workers (non-seafaring)	OEC Rules + employment country’s law	OWWA repatriation & disability benefits may kick in if accident suffered at or about the workplace abroad.
Construction & project workers	DO 13-98 (construction safety) & PCAB guidelines	Mandatory Construction Safety & Health Program (CSHP) with employer-financed insurance.

7. Jurisprudential Highlights

Case	G.R. No. / Date	Doctrine
Lapid v. Hon. NLRC	G.R. 113908, 10 Aug 1999	Employer must shoulder employee’s salary for the first 3 days of medical leave; thereafter SSS sickness benefits apply.
ECC v. Court of Appeals	G.R. 128363, 25 Jan 1999	Liberally construe causality in favor of claimant; “increased risk” theory for accidents aggravated by work conditions.
NFD Int’l Manning v. Ilustre (Seafarer)	G.R. 183054, 13 Jan 2016	Company-designated physician’s 120-day assessment is controlling unless challenged with contrary medical opinion.
Phil. Long Distance Tel. Co. v. Tolentino	G.R. 190063, 23 Jan 2012	Disability benefits and damages may coexist where employer negligence proven, independent of SSS/ECC awards.

8. Tax Treatment

SSS sickness benefit & ECC income benefits are excluded from gross income (NIRC, Sec. 32(B)(4)).
Full-salary continuance paid by the employer is taxable compensation income; however, amounts subsequently reimbursed by SSS/ECC and turned over to the employee are not taxed twice.

9. Practical Checklist for HR & Compliance Officers

✔	Action
☐	Integrate accident-leave policy (clear wage-continuance rules, coordination with SSS/ECC).
☐	Train supervisors on prompt incident reporting and completion of SSS/ECC forms.
☐	Keep a logbook of accidents & illnesses (for WAIR and OSH compliance).
☐	Arrange an SSS-accredited clinic or physician for quick certification needs.
☐	Budget for EC contributions and salary advances in payroll cash flow.
☐	Periodically audit CBA provisions vs. statutory floor to avoid diminution controversies.

10. Common Pitfalls & How to Avoid Them

Late Sickness Notification → Denial or reduction of SSS reimbursement. Solution: impose HR SLA of 48 hours to lodge SN.
Mis-classification of accident → Loss of EC benefits. Solution: safety officer’s investigation report should squarely address work-connection.
Failure to pay first 3 days’ wage → Money claims & penalties under Art. 302.
Dismissal while on TTD → Possible illegal dismissal unless justified under Art. 299; always secure fit-to-work or PTD certificate first.
No OSH program → Administrative fines under RA 11058 ranging ₱20,000–₱50,000 per day of non-correction.

11. Conclusion

Employee pay during accident-related absences in the Philippines rests on a layered regime:

Statutory minimum (SIL + SSS sickness benefit).
Enhanced protection where the accident is work-connected (ECC income benefits + medical care).
Supplemental employer obligations arising from CBAs, company policy, OSH statutes, and tort principles.

For practitioners, the golden rule is coordination: prompt documentary compliance unlocks the state insurance funds and shields the employer from wage-claim exposure. Employees, on the other hand, should assert their right to statutory benefits without fear of reprisal, ensuring economic security while they heal.

This article reflects statutes and jurisprudence up to 7 August 2025. Always verify if new SSS circulars, ECC Board Resolutions, or DOLE-issued wage orders have updated the monetary figures before advising clients.