SSS flags 5 Pasay employers over P3.19M in unpaid contributions, penalties

The Social Security System (SSS) has directed five employers in Pasay City to settle P3.19 million in unpaid contributions and penalties or face possible criminal charges for violating the Social Security Act of 2018.

SSS President and Chief Executive Officer Robert Joseph de Claro said Monday, 12 October, that the employers were served notices during a Run After Contribution Evaders (RACE) operation conducted on 29 September.

The five businesses accumulated P1.14 million in unpaid employee contributions and P2.05 million in penalties for failing to remit monthly payments required under Republic Act 11199.

“Every employer is required by law to deduct and remit social security contributions on behalf of their employees. Failure to do so not only violates the law but also deprives workers of their rightful benefits,” de Claro said.

The delinquent employers operate in management consultancy, food services, real estate, carwash services and gambling-related businesses.

A restaurant recorded the largest delinquency at P2.25 million, consisting of more than P739,000 in unpaid contributions and P1.51 million in penalties.

According to SSS records, the establishment failed to remit contributions for 35 employees.

Employers given 15 days

De Claro said the five businesses have 15 days from receipt of their notices to coordinate with the SSS Pasay-CCP Complex Branch and address their outstanding obligations.

The Pasay operation formed part of a simultaneous enforcement campaign across Metro Manila, during which the SSS served notices to 419 employers with combined contribution delinquencies exceeding P169 million.

SSS Senior Vice President for National Capital Region Operations Benjamin Dolindo Jr. stressed that employers must remit contributions regularly to protect their workers' eligibility for social security benefits.

He warned that missing contributions could affect employees' access to sickness benefits and loan programs.

“For example, an SSS member was hospitalized for ten days due to an illness. Suppose their employer is not remitting the SSS contributions. In that case, they will be unqualified to receive sickness benefits from SSS because one of the requirements of the said benefit is to have recency in contributions,” Dolindo said.

The SSS said contribution records are among the requirements used to determine eligibility for various benefits.

Criminal penalties

Under Republic Act 11199, employers must register their workers with the SSS and deduct and remit the required monthly contributions.

Employers who fail to comply after receiving notices may face criminal complaints.

Violations involving failure to register employees or remit contributions may carry fines ranging from P5,000 to P20,000 and imprisonment of six years and one day to 12 years.

The SSS urged employers with outstanding obligations to coordinate with their servicing branches to settle their accounts and avoid further legal action.