SSS collects P797M, sues 1,600 delinquent employers

Apr. 07, 2009

DAVAO CITY — The Social Security System (SSS) has collected a total of 796.77 million pesos in overdue contributions from delinquent employers last year after the agency took legal action against then, a top official said today.

SSS president and chief executive officer Romulo Neri said the SSS has sued a total of 1,623 employers in 2008 for violations of the Social Security Law, which carry fines of up to 20,000 pesos and a maximum imprisonment of 12 years.

Among those charged were more than 200 employers that failed to register and refused to present employment records to SSS account officers, who monitor companies’ compliance with the law.

“The rest of the cases were for non-remittance of contributions, which remains as the most common violation among employers,” Neri said. “Because if this, members cannot avail of SSS benefits and loans during times of need.”

Employers are required to remit their workers’ SSS premiums on or before the tenth day of the following month. Delinquent companies are charged a three percent monthly penalty on late contributions under the law.

The state-run institution collected a total of 475.38 million pesos last year from employers that responded to the demand letter sent by SSS lawyers. Companies sued by SSS paid a total of 321.39 million pesos in 2008.

The SSS files charges against delinquent employers in court or before the Social Security Commission, the agency’s highest policy-making body which hears cases on SSS-related disputes. (SSS with reports from rbpalacio/PIA-XI)

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