SEVENTEENTH CONCUliSS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
)
Second Regular Session 
)
S.B. NO. i o o O
V ’ 
.;{1 i- :
'17 
OCT-3 p i : 4 6
Introduced by Senator Maria Lourdes Nancy ^^^inay
k
AN ACT GRANTING THE SOCIAL SECURITY SYSTEM THE AUTHORITY TO 
CONDONE PENALTIES FOR UNREMITTED OR DELINQUENT 
CONTRIBUTIONS BY EMPLOYERS OF DOMESTIC WORKERS FOR THE 
PURPOSE OF ENCOURAGING COMPLIANCE WITH SOCIAL SECURITY LAWS
EXPLANATORY NOTE
Republic Act No. 10361 also known as the “Batas Kasambahay” was enacted to promote the 
fundamental rights of domestic workers, ensure safe and healthful working conditions, 
establish labor standards towards decent employment and income as well as enhanced 
coverage of social protection.
One of the salient features of the Republic Act No. 10361 is the grant of social benefits to 
qualified domestic workers allowing them to be covered by the Social Security System (SSS), 
the Philippine Health Insurance Corporation (PhilHealth), and the Home Development 
Mutual Fund or Pag-IBIG. More importantly, under Section 30 of the said Act, employers are 
required to shoulder the premium payments or contributions of the kasambahay whose wage 
is below five thousand pesos (P5,000.00) per month. If the kasambahay is receiving a wage 
of five thousand pesos (P5,000.00) and above per month, the domestic worker is required to 
pay the proportionate share in the premium payments or contributions.
However, it has come to this representation’s attention that some employers who have 
domestic workers in their employ for several years at the time the law was enacted are 
burdened by this social benefit provision. With regard to SSS contributions, in particular, 
employers are required to pay huge arrears and penalties incurred for failing to remit the 
supposed SSS contributions for their domestic workers from the time said contributions 
supposedly fell due. Section 22 of the Social Security Act provides a penalty of three percent 
(3%) per month from the date the contribution falls due until it is paid, in addition to the 
unpaid SSS contributions. Employers are also threatened by possible sanctions for non­
remittance of these contributions. On the other hand, domestic workers whose wage is P5,000 
or more will also be compelled to pay their proportionate share in the payment of these 
arrears and penalties as provided in the second paragraph of Section 30 of the Batas 
Kasambahay.
As a result, employers are deterred from registering their domestic workers with the SSS in 
direct violation of the Batas Kasambahay. This deprives the domestic workers of years of 
SSS contributions to which they have been supposedly entitled. Worse, this dilemma on the 
part of employers oftentimes results in unintended layoffs in several households.


Thus, this representation believes that there is a need to provide incentives to employers in 
settling their arrears and penalties in the form of condonation and the option to pay by 
installments. This will encourage the employers of domestic workers to comply with these 
essential social benefit provisions and promote membership of domestic workers in the SSS.
The passage of this bill is earnestly requested.
n
c d
^
MARIA LOURIW:S NANCY S. BINAY
Senator


SEVENTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session
• ol  1'. ■
- ‘ ‘ i vy
S E N A  T^firQ Q 
S.B. NO. l O o O
•17 
OCT- 3  
?]-A6
Introduced by Senator Maria Lourdes Nancy ScBlnay.. ____
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AN ACT GRANTING THE SOCIAL SECURITY SYSTEM THE AUTHORITY TO 
CONDONE PENALTIES FOR UNREMITTED OR DELINQUENT 
CONTRIBUTIONS BY EMPLOYERS OE DOMESTIC WORKERS FOR THE 
PURPOSE OF ENCOURAGING COMPLIANCE WITH SOCIAL SECURITY LAWS
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
SECTION 1. Short Title. -  This Act shall be known as the “Butas Kusambaliay Social 
Security Condonation Law of 2017”.
SECTION 2. Condonation of Penalty. -  Any employer of domestic workers who is 
delinquent or has not remitted all contributions due and payable to the Social Security 
System (SSS) pursuant to Section 30 of Republic Act No. 10361 also known as the “Batas 
Kasambahay”, including those with pending cases either before the Social Security 
Commission, courts or Office of the Prosecutor involving collection of contributions and/or 
penalties, may within six (6) months from the effectivity of this Act:
(a) remit said contributions; or
(b) submit a proposal to pay the same in installments, subject to the implementing 
rules 
and 
regulations 
which 
the 
Social 
Security 
Commission 
may 
prescribe: Provided, That the delinquent employer submits the corresponding 
collection 
lists 
together 
with 
the 
remittance 
or 
proposal 
to 
pay 
installments: Provided, further. That upon approval and payment in full or in 
installments of contributions due and payable to the SSS, all such pending cases 
filed against the employer shall be withdrawn without prejudice to the refiling of 
the case in the event the employer fails to remit in full the required delinquent 
contributions or defaults in the payment of any installment under the approved 
proposal.
SECTION 3. Installment Proposal. - In the event that a delinquent employer chooses to 
submit an installment proposal, the SSS shall give due course to approve and grant the same, 
subject to the implementing rules and regulations as the Social Security Commission shall 
prescribe: Provided, That the employer shall remit, upon submission of the installment 
proposal, a down payment of not less than five percent (5%) of its total contribution 
delinquency: Provided, further. That the employer shall remit the balance thereof in equal 
monthly installments within a period not exceeding forty - eight (48) months from the date of


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approval of the proposal: Provided, finally, That the installment payments shall bear an 
interest of three percent (3%) per annum.
SECTION 4. Effectivity of Condonation. - The penalty provided under Section 22(a) of 
Republic Act No. 8282 shall be condoned by virtue of this Act when and until all the 
delinquent contributions are remitted by the employer of the domestic worker to the 
SSS: Provided, That, in case the employer fails to remit in full the required delinquent 
contributions, or defaults in the payment of any installment under the approved proposal, 
within the availment period provided in this Act, the penalties are deemed reimposed from 
the time the contributions first become due, to accrue until the delinquent account is paid in 
full: Provided, further, That for reason of equity, employers who settled arrears in 
contributions before the effectivity of this Act shall likewise have their accrued penalties 
waived.
SECTION 5. Implementing Rules and Regulations. - Within thirty (30) days after the 
effectivity of this Act, the Social Security Commission shall issue the necessary rules and 
regulations for the effective implementation of this Act.
SECTION 6. Separability Clause. - In the event that any provision of this Act is declared 
unconstitutional, the validity of the other provisions shall not be affected by such declaration.
SECTION 7. Repealing Clause. - All laws, decrees, orders, rules and regulations and other 
issuances or parts thereof which are inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.
SECTION 
Effectivity. - This Act shall take effect fifteen (15) days following its 
publication in the Official Gazette or in at least two (2) newspapers of general circulation.
Approved.