Bill seeks stiffer penalties for employers who withhold SSS premiums

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Tuesday, June 24, 2014

TWO party-list lawmakers have filed a bill seeking to slap higher penalties for employers who fail to remit the Social Security System (SSS) contributions of their workers.

Bayan Muna Party-list Representatives Neri Colmenares and Carlos Isagani Zarate said that House Bill 4405 aims to help the workers by enforcing that half of any fine imposed on unscrupulous employers should be given to the aggrieved employees.

Colmenares said the problem of non-remittance by some delinquent employers has already affected 164,111 workers since 2010.


The House Senior Deputy Minority Leader said the amount of unremitted contributions to the SSS was estimated at P94 billion and noted that the SSS has filed charges against more than 1,400 delinquent companies in 2012 for various violations.

Colmenares said that under the bill, the uncollected contributions should be used in funding increase in the pension of many SSS members, including overseas Filipino workers.

"Millions of employees are the most affected by this fraud, the government should ensure to protect the rights of the workers who were regularly deducted their SSS contributions but are being denied their benefits and privileges because of their employers’ failure to remit their contributions," Colmenares said.

The bill amends Paragraph (h), Section 28 of the Social Security Law by increasing the penalty against employers who fail to remit the funds they deducted from their employees.

Under the bill, non-remittance of workers’ SSS contributions shall be punishable by a fine of P25,000 and an additional P20,000 for every P10,000 withheld and imprisonment for no less than eight years nor more than 14 years.

Zarate said that the half of the amount paid as fine shall be given to the employee whose contribution was not remitted in addition to any civil damages that the employee may be entitled to. (Sunnex)

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