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Home Business and Livelihood

SSS orders delinquent employers to settle their delinquencies

Press Release by Press Release
April 5, 2022
in Business and Livelihood
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LAOAG CITY, Ilocos Norte – The Social Security System (SSS) ordered erring employers within the area of Ilocos Norte to comply with the mandatory provisions of Republic Act 11199 or Social Security Act of 2018 through its Run After Contribution Evaders (RACE) Campaign held last March 25, 2022.

Following the directive of the new SSS President and Chief Executive Officer (PCEO) Michael G. Regino, SSS Laoag branch issued written order to four erring employers who failed to remit the SSS contributions of their 92 employees amounting to over P1.72 million with accumulated penalties worth P547,171.50. Non-remittance of SSS contributions and non-production of employer documents to the SSS were used as basis in the computation of these employers’ delinquencies. 

Meanwhile, three employers did not produce any documents, which is a violation of their legal obligations under the SSS law. 

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“Non-remittance of employees’ SSS contribution is tantamount to depriving them from their right to Social Security. We have seven benefits for our members namely Sickness, Maternity, Disability, Unemployment, Retirement, Death, and Funeral and several loan privileges like Salary, Calamity, and Educational Loans. Without their contributions, workers cannot avail of these benefits and loan privileges,” SSS Vice President for Luzon North 1 Division Cesar P. Saludo said.

Under the Social Security Act of 2018, employers are mandated to remit the SSS contributions of their employees. The employee’s share in the monthly contribution should be deducted from their monthly salary and remit these together with the employer’s share in SSS contribution, including Employee’s Compensation (EC) contribution. It is also the employer’s obligation to update and submit the contribution collection list and employment reports to SSS. 

Delinquent employers subjected to RACE Campaign are enjoined to settle their SSS legal obligation through availment of the SSS Pandemic Relief and Restructuring Program (PRRP 3)-Enhanced Installment Payment Program. SSS will only take legal action should the employers still failed to settle their obligations upon lapse of said program.

Under the PRRP 3, employers may pay within nine to 60 months depending on the total amount of their obligation. Employers will be given nine months to settle their delinquency of up to P50,000; 12 months for delinquency of more than P50,000 up to P100,000; 18 months for delinquency of over P100,000 to P500,000; 24 months for delinquency of over P500,000 up to P2 million; 36 months for delinquency of more than P2 million up to P5 million; 48 months for delinquency of over P5 million to P10 million; and 60 months for delinquency of more than P10 million.  

“Employers are allowed to pay in full the principal obligation first and the corresponding penalties to be paid in installment, apply the monthly installments to the principal ahead of the payment for the penalties, or pay in full the remaining delinquency at any time during the term of the Installment Payment Agreement (IPA),” Saludo added.

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SSS Laoag Head Richard Raralio on the other hand reminds employed members to constantly check their contribution through their My.SSS account portal. 

“Since we are now online, all members are advised to create their own My.SSS account and from there, you can check whether your contributions are posted as well as the status of your benefit claims and loan applications,” Raralio said. 

RACE campaign started in 2017 to instill awareness on employers’ obligation and employees’ right to social security benefits and intensify employer compliance through increased coverage and collection.  

 

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