, , 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B. No. 236 
) 
) 
) 
13 
JUL -1 PS;()o 
Introduced By Senator Manuel"Lito" M. Lapid 
EXPLANATORY NOTE 
By law, employers are required to deduct amounts from employees' salaries to 
pay for Government Service Insurance System ("GSIS") contributions, Social Security 
System ("SSS") 
contributions, Pag-IBIG 
fund contributions, and Philhealth 
contributions. It has become rampant practice however for employers to deduct the 
required contributions from their employees' salaries yet fail to remit said amounts to 
the appropriate government agencies. 
, 
Employers' acts of defraudation and misappropriation of funds contributed by 
employees harm the integrity of the social security, health insurance, and other public 
service systems of the government. Hence, the practice should not be considered as 
mere estafa but is already a crime of economic sabotage. 
The present proposed legislation seeks to amend Presidential Decree No. 1689, 
otherwise known as an act "Increasing the Penalty for Certain Forms of Swindling or 
Estafa" in order to include within its \:ontemplation the practice of employers who fail 
to remit employees' GSIS, SSS, Pag-IBIG fund, and Philhealth contributions which were 
actually deducted from the salaries of employees. 
MA 
L "LITO" M. LAP!J] 
Senator 
[ , 
I 
I


'. 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B. No.236 
) 
) 
) 
Introduced By Senator Manuel "Lito" M. Lapid 
AN ACT EXPANDING THE SCOPE 
,ihl1l1Yl:' 
<Oil.;. aT 1l,.>t<t't\~1l< ' 
'13 
JUL -1 P5:06 
OF THE CRIME OF ECONOMIC SABOTAGE 
AMENDING FOR THAT PURPOSE PRESIDENTIAL DECREE NO. 1689 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. A new Section I.A is hereby inserted into Presidential Decree No. 
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1689, otherwise known as an act "Increasing the Penalty for Certain Forms of Swindling 
3 
or Estafa" , thereby amending it to read as follows: 
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SEC. 1.A. THE SAME PENALTY AS THAT PROVIDED IN THE FIRST 
6 
PARAGRAPH 
OF 
THE 
PRECEDING 
SECTION 
SHALL 
BE 
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ACCORDED TO ANY PERSON WHO SHALL DELIBERATELY FAIL 
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TO REMIT WITHIN A REASONABLE PERIOD, THE AMOUNTS 
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CORRESPONDING TO MANDATORY CONTRIBUTIONS TO 
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GOVERNMENT SOCIAL INSURANCE SYSTEM ("GSIS"), SOCIAL 
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SECURITY SYSTEM ("SSS"), PAG-IBIG FUND, AND PHILIPPINE 
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HEALTH INSURANCE CORPORATION ("PHILHEALTH") WHICH 
" 
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WERE ACTUALLY DEDUCTED FROM THE SALARY OF THE 
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EMPLOYEES. 
"PERSON" REFERS TO ANY NATURAL OR 
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JURIDICAL PERSON. IF THE OFFENDER IS A CORPORATION, 
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ASSOCIATION, PARTNERSHIP OR ANY JURIDICAL PERSON, THE 
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PENALTY SHALL BE 
IMPOSED UPON THE RESPONSIBLE 
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OFFICERS 
OR AGENTS, AS 
THE 
CASE 
MAY 
BE, 
WHO 
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PARTICIPATED IN THE COMMISSION OF THE CRIME OR WHO 
1 


1 
SHALL HAVE KNOWINGLY PERMITTED OR FAILED TO PREVENT 
2 
ITS COMMISSION. 
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SEC. 2. All laws, decrees, executive orders, issuances, rules and regulations or 
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parts thereof inconsistent with the provisions of this Act are hereby repealed or 
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modified accordingly. 
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SEC. 3. This Act shall take effect fifteen (15) days after its publication in the 
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Official Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
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