FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
) 
) 
) 
823 
Senate Bill No.,_...::::..=.::<:.-
IIlfiJt£IVf.D BV : -~f~~~ 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The Constitution, Article 11, Section 18, mandates the State to protect the 
rights of workers and promote their welfare. Article 3 of the Labor Code, as 
amended, 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 of not less than Five Thousand Pesos 
(P5,OOO.OO) 
nor more than Twenty Thousand 
Pesos 
(P20,OOO.OO) 
or 
imprisonment of not less than six (6) years and one (1) day nor more than twelve 
(12) years, 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 a fine of not less than 
Ten Thousand Pesos (Pi0,OO().OO) nor more than Fifty Thousand Pesos 
(P50,OOO.OO). In addition, an employer who fails or refuses to remit the 
employees' contributions to the SSS shall be liable to pay an interest of six 
percent (6%) per month computed based on the unremitted contributions. 
Increasing the fine and imposin.g a higher penalty of imprisonment will deter 
unscrupulous employers in violating the law by just opting to pay the fine 
presently imposed. 
Immediate passage of this bill is earnestly sought. 
Y EJERCITO ESTRADA 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 823 
) 
) 
) 
, 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
AMENDING REPUBLIC ACT NUMBERED ELEVEN HUNDRED SIXTY ONE, 
ALSO KNOWN AS 
THE 
SOCIAL SECURITY LAW, AS AMENDED, 
INCREASING 
THE 
PENALTIES 
FOR 
NON·REMITTANCE 
OF 
CONTRIBUTIONS TO THE SOCIAL SECURITY SYSTEM BY THE EMPLOYER 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Paragraph (e) of Section 28 of Republic Act No. 1161, as 
amended, is hereby further amended to read as follows: 
"Sec. 28. Penal Clause. -
xxx 
"(e) Whoever fails or refuses to comply with the provisions of this 
Act or with the rules and regulations promulgated by the 
Commission, shall Qe punished by a fine of not less than [Five] TEN 
thousand pesos [P5,000.00] (P10,000.00) nor more than [Twenty] 
FIFTY 
thousand 
pesos 
[P20,000.00] 
(P50,000.00) 
or 
imprisonment for not less than six (6) years and one (1) day nor 
more than twelve (12) years, 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 self-
employed, or to deduct contrlbutions from the employees' 
compensation and remit the same to the SSS, the penalty shall be 
a fine of not less than [Five] TEN Thousand Pesos [P10,000] 
(Pi 0,000.00) nor more than [Twenty] FIFTY Thousand Pesos 
[P20,000] (P50,000.00) and imprisonment for not less than six (6) 
years and one (1) 'day nor more than twelve (12) years; Provided 
Further, That FAILURE OR REFUSAL TO PAY OR REMIT 
CONTRIBUTIONS, 
THE 
ERRING 
EMPLOYER 
SHALL, 
IN 
ADDITION TO THE FINE, BE LIABLE TO PAY INTEREST AT THE 
RATE OF SIX PERCENT (6%) PER MONTH COMPUTED BASED 
ON THE UNREMITTED CONTRIBUTIONS, FROM THE DATE 
THE CONTRIBUTIONS FALL DUE UNTIL THE AMOUNT IS 
FULLY REMITTED. 
SEC. 2. Separability Clause. If any provision or part hereof is held invalid 
or unconstitutional, the remainder of the law or the provision not otherwise 
affected shall remain valid and subsisting. 


SEC. 3. Repealing Clause. Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regUlation 
contrary to or inconsistent with the provisions of this Act is hereby repealed, 
modified or amended accordingly .. 
SEC. 4. Effectivity Clause. This Act shall take effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved, .