Monday, June 5, 2023

SSS issues 923 show cause orders to business employers in nationwide RACE Ops

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The Social Security System (SSS) conducted simultaneous Run After Contribution Evaders (RACE) operations in 114 selected areas around the country last April 28, 2023 to call on non-compliant employers to settle their various contribution delinquencies. This is part of the Labor Day activities which SSS facilitated to promote the welfare of more than 13,000 Filipino workers after issuing written notices to their employers for failure to remit their SSS contributions.

SSS President and Chief Executive Officer Rolando Ledesma Macasaet said that 923 business employers across the country, including those unregistered, received show cause orders for incurring over P396.9 million worth of unpaid contributions and penalties, affecting the SSS benefits of 13,524 employees.

“We recognize the valuable contributions of Filipino workers to nation-building. They serve as the backbone of our economy and play a vital role as we move toward progress. Unfortunately, some employers overlooked workers' key role in the economy and neglect remitting their social security contributions,” Macasaet explained.

Of the 923 delinquent employers, 318 operate in Luzon with a total delinquency of P109.8 million affecting 3,344 employees. Mindanao came in second with 316 employers with a total delinquency of P69.2 million, affecting 3,669 employees. The National Capital Region (NCR) ranked third with 231 employers amounting a total delinquency of P183.9 million involving 4,844 employees, and Visayas with 58 employers with a total delinquency of P34.0 million affecting 1,667 employees.

Majority of the employers visited by SSS are engaged in the following: 96 in restaurant industry, 45 in retail selling, 31 in construction and supplies, 31 in management consultancy activities, 19 in hotel and resort industry, 18 in school institutions, 17 in hardware industry, 15 in food house industry, 12 in education services, and 12 in printing services.

In the press briefing in Binondo, SSS Vice President for Operations Legal Services Division I Renato Jacinto Cuisia appealed to employers to religiously remit the monthly contributions of their employees.

Under Republic Act No. 11199 or the Social Security Act of 2018, employers have the legal obligation to report their employees to SSS and remit the corresponding monthly contributions of their workers.

Cuisia explained that employers who received the written notices are given 15 days to coordinate with their respective servicing SSS Branch Office and settle their contribution delinquencies. “If they fail to act on it, we will take legal action against erring employers by filing a criminal case against them for violating RA 11199,” he added.

Under the SS Act, employers who fail to register their employees or have not deducted and remitted their contributions will be penalized with a fine of P5,000 to P20,000 and face imprisonment ranging from six (6) years and one (1) day to 12 years.

Filing cases against delinquent employers follow the SSS mandate of ensuring employers compliance with RA 11199.

Meanwhile, Stanley Sy of the Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) and Romy Chua of the Philippine Chamber of Commerce and Industry (PCCI)-Manila expressed their support for the RACE campaign and in reminding their fellow employers of their legal obligation to their employees.

Also, several members of PCCI-Manila joined SSS officials and employees as they visited 10 delinquent employers in Binondo, Manila.

The SSS Chief said that 59% of the employers failed to remit monthly contributions, 21.5% have gaps in paying the monthly contributions, and 10.5% are about non-registration. The remaining 13.7% are those employers served with written notice for non-production of records, non-reporting of employees, underpayment of contributions, and under-reporting of their employees.

“If employers neglect their duties to remit the monthly contributions of their workers, they are depriving their employees of the rightful SSS benefits they deserve. “A member’s monthly contributions serve as the basis to qualify for SSS benefits. And if their contribution records are not updated, they will not be entitled to claim SSS benefits or apply for loan programs,” Macasaet elaborated.

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