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THIRTEENTH CONGRESS OF THE RESq33LIC) 
First Regular Session 
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OF THE PHILIPPINES 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 2, Section 18 mandates the State to protect the rights of workers 
and promote their welfare. The Labor Code, as amended, Article 3, provides that the State shall 
afford protection to labor, promote full employment, ensure equal work opportunities regardless 
of sex, race or creed and regulate the relations between workers and employers. 
Republic Act No. 1161, as amended, otherwise known as the Social Security Law, 
penalizes non-remittance of contributions to the Social Security System by employers with a fine 
equivalent to three percent (3%) per month from the date the contributions falls due until paid or 
imprisonment of not less than six months nor more than one year, or both at the discretion of the 
court. However, many employers continue to violate this provision presumably because of the 
minimal fines imposed. This bill seeks to increase the penalty by imposing imprisonment of not 
less than six months and one day to six years and/or a fine equivalent to not less than the total 
contributions unremitted plus three percent (3%) monthly interest from the date the contribution 
fails due. Increasing the fine and imposing a higher penalty of imprisonment will deter 
unscrupulous employers in violating the law by just opting to pay the fine presently imposed. 


THIRTEENTH CONGRESS OF THE RESPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T E  
S. B. No. 
16 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
AMENDING REPUBLIC ACT NUME3ER ELEVEN HUNDRED SIXTY ONE, ALSO 
KNOWN AS THE SOCIAL SECURITY LAW, AS AMENDED INCREASING THE 
SECURITY SYSTEM BY THE EMPLOYER 
PENALTIES FOR NON-REMITTANCE OF CONTRIBUTIONS TO THE SOCIAL 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Paragraph (e) of SECTION 28 of the Social security Law is hereby further 
amended to read as follows: 
“Sec. 28 -Penal Clause- 
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(e) Whoever fails or refuses to comply with the provisions of this Act or with the 
rules and regulations promulgated by the Commission, shall be punished by a fine 
of not less than Five Hundred Pesos (P500.00) nor more than Five thousand Pesos 
(P5,OOO.OO) or imprisonment for not less than six months nor more than one year, 
or both, at the discretion of the court: Provided, That where the violation consists 
in failure or refusal to register employees or himself in case of the covered seIf- 
employed or to deduct contributions from the employees’ compensation [AND 
REMIT THE SAME TO THE SSS], the penalty shall be a fine of not less than 
Five Hundred P esos ( P500.00) nor more than Five t honsand P esos (P5,OOO.OO) 
and imprisonment for not less than six months nor more than one year; Provided 
further, that FAILURE OR REFUSAL TO PAY OR REMIT CONTRIBUTIONS 
SHALL BE PUNISHABLE BY A FINE OF AN AMOUNT EQUIVALENT TO 
NOT LESS THAN THE TOTAL CONTRIBUTIONS DUE OR WITHHELD, 
WHICHEVER IS HIGHER, OR IMPRISONMENT OF NOT LESS THAN SIX 


MONTHS AND ONE DAY TO SIX YEARS, OR BOTM AT THE 
DISCRETION OF THE COURT (As amended by Sec. 19, RA 1792, Sec. 16, RA 
2658, Sec. 8 P.D. 177, S-1973 and Sec. 20, P.D. 1636, S-1979) 
SECTION 2. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule and regulation contrary to, or inconsistent 
with the provisions of this Act, is hereby repealed, modified, or amended accordingly. 
SECTION 3. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
in two (2) newspapers of general circulation. 
Approved. 
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