The SSS main office in Quezon City. (File photo from the Philippine Daily Inquirer)
MANILA, Philippines — The Social Security System (SSS) is revving up its campaign against employers that do not settle their contributions through “simultaneous nationwide” sorties after implementing an increase in contributions last January.
On April 28, the SSS conducted 108 separate activities under its Run After Contribution Evaders (RACE) operations to call on noncompliant employers to settle their contribution delinquencies.
Rolando Macasaet, SSS president and chief executive, said the sorties helped in ensuring the social security protection of the pension fund’s 31.96 million employee-members.
Legal obligations
“We will be issuing notices to business employers around the country who neglect their legal obligations of paying their employer and employees’ share in the contributions because it deprives them of the social security benefits they truly deserve,” Macasaet said.
He said that after receiving the show cause orders, delinquent employers have 15 days to coordinate with their respective SSS branch office and settle their contribution delinquencies.
SSS conducted its first RACE operations in 2017 when it visited delinquent employers in Greenhills, San Juan, and Cubao, Quezon City. The following year, SSS brought the RACE campaign to the regional level.
‘Various contingencies’
Under Republic Act No. 11199, or the Social Security Act of 2018, employers are required to report for coverage to the SSS all their employees — including kasambahays (househelpers) — within 30 days from the start of their actual employment date and to remit the corresponding monthly contributions of their workers.
For kasambahays who are earning P5,000 a month or less, their employers will shoulder contributions fully.
Employers who fail to comply are liable to a fine of P5,000 to P20,000, and jail time ranging from six years and one day up to 12 years.
“We appeal to all employers to be considerate to their employees by reporting them to SSS and regularly remitting their monthly contributions so they can be protected by receiving social security benefits in times of various contingencies,” Macasaet said.
He urged them to settle their delinquencies by availing themselves of the contribution penalty condonation programs offered by SSS that will allow them to pay the unremitted contributions less the accrued penalties.
Also, under the same law, the contribution rate increased to 14 percent starting last January from 13 percent.
Based on this increase, employers will shoulder the one-percent increase, which means their contribution will now be at 9.5 percent. The remaining 4.5 percent will be deducted from the employee.
“The contribution hike will benefit the workers with the SSS being able to provide a financially viable social protection system to Filipino workers and their families,” Macasaet said.
“It will not be a burden on workers but will be shouldered by employers,” he said. “Workers earning less than P25,000 per month, who comprise 78 percent of SSS-paying employee members, will not be affected.”