Dear Atty. Joji,

I am a new small business owner and is looking to employ few helpers for my business. My question is, are employers legally required to pay SSS contributions for all employees, regardless of the company’s size?

Pia

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Dear Pia,

As an employer, you are duty bound to promptly remit SSS contributions of your employees. Sections 8 and 9 of RA 11199 or the Social Security Act of 2018 requires the compulsory coverage of employers, who carries on in the Philippines any trade, business, industry and uses the services of another, and employees, who are not over 60 years old.

Under RA 11199 or the Social Security Act of 2018, the following persons are compulsorily covered:

Employees and their employers — all employees including kasambahays or domestic workers not over 60 years of age and their employers (RA 11199, Sec. 9);

Self-employed — includes, but not limited to the following:

Self-employed professionals;

Partners and single proprietors of businesses;

Actors and actresses, directors, scriptwriters and news correspondents, who do not fall within the definition of the term “employee” in Sec. 8(d) of RA 11199;

Professional athletes, coaches, trainers and jockey; and

Individual farmers and fishermen (RA 11199, Secs. 9-A);

Overseas Filipino workers (OFWs) — all sea-based and land-based OFW as defined under RA 8042, otherwise known as the Migrant Workers and Overseas Filipinos Act of 1995 as amended, provided that they are not over 60 years of age (RA 11199, Sec. 9-B); and

A Farmer, Fisherman, or a worker in the informal sector (IS) — an IS member being defined as one whose income is irregular or seasonal and who may be registered as a self-employed member under the SSS AlkanSSSya Program (SSS Membership Primer, August 2019, p1-2)

Under the said law, non-remittance of contribution is a violation of the law on the part of the employer. (RA 11199, Sec. 22). Employers who do not comply with the remittance of contributions can be held liable under the SSS law. The SSS provides protection against various contingencies such as old age, disability, death and unemployment. Employers must understand that these deductions are for his best interest.

Hope this helps.

Atty. Joji Alonso