Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS

HOUSE BILL No. _440 5

Introduced by BAYAN MUNA
Reps, NERI J. COLMENARES and CARLOS ISAGANI T. ZARATE

AN ACT INCREASING PENALTIES FOR EMPLOYERS WHICH FAILS TO
REMIT SSS CONTRIBUTIONS OF THEIR EMPLOYEES AMENDING
PARAGRAPH (h), SECTION 28 OF REPUBLIC ACT 8282, AS AMENDED
OTHERWISE KNOWN AS THE “SOCIAL SECURITY LAW” FOR THAT
PURPOSE

EXPLANATORY NOTE

In line with the constitutional mandate to protect the rights of workers and promote their
welfare, the Social Security Law penalizes employers for failute or refusal to pay or remit
contributions to the Social Security System with a fine and imprisonment, Despite this penal
sanction though, many employers continue to violate this provision to the detriment of workers
who are not only denied the benefits that may be availed of but also the funds dedueted from
their already meager wages, Some employers, especially big companies with a large number of
employees, have no qualms about violating the said provision of the law because they could just
opt for the payment of the negligible fines presently imposed therein or opt for condonation or
amnesty from government.

‘To address the problem of non-remittance by delinquent employers, that is estimated to have
reached 164,111 employers in the first month of 2010 and amounted to P94-billion of
receivables from unpaid contributions to the SSS, the RA 9903 or the Social Security
Condonation Law of 2009 was passed in January 2010, ‘The said Condonation Law should serve
as.a reprieve for employers to settle their delinquent status, ‘The Social Security System (SSS)
filed chatges against mote than 1,400 delinquent companies in 2012 for various violations.

Meanwhile, thousands of SSS pensioners suffer from the very inhumanly low pension of about
1,200 per month which is surely inadequate to mect the current cost of living. These
uncollected contributions should be used in funding increase in the pension of many SSS
members, including OFWs, currently reeling from intense economic crisis.

Because it is the millions of employees who are the most affected by this fraud, the government
should ensure to protect the rights of the employees who were regularly deducted their SSS


contributions but are being denied theis benefits and privileges because of their employers’
failure to remit their contributions.

‘Thus, to deter unscrupulous employers from further violating the law, this bill secks to increase
the penalty for committing the infraction that is inimical to the welfare of workers by increasing
the penalty of employers who fail to remit the funds they deducted from their employees and
imposing steeper fines for such a violation, The Bill also aims to help the victim-employees by
commanding that half of any fine imposed on these unscrupulous employers should be given to
the aggrieved employee.

‘We ask for your support and immediate approval and that this Bill be immediately referzed to the
Committee on Government Enterprises and Privatization for appropriate action.

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Rep. NERI Rep. CARLOS ISAGANI

Bayan Muna Party-List Bayan Muna Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Ses

ion

4405

HOUSE BILL No,

Introduced by BAYAN MUNA
Reps, NERI J. COLMENARES and CARLOS ISAGANI T. ZARATE

AN ACT INCREASING PENALTIES FOR EMPLOYERS WHICH FAILS TO
REMIT SSS CONTRIBUTIONS OF THEIR EMPLOYEES AMENDING
PARAGRAPH (h), SECTION 28 OF REPUBLIC ACT 8282, AS AMENDED
OTHERWISE KNOWN AS THE “SOCIAL SECURITY LAW” FOR THAT
PURPOSE.

Be it enacted by the Senate and Flouse of Representatives of the Philippines in Congress assembled:
SECTION 1. Parageaph (h) of Section 28 of Republic Act No. 8282, as amended, is

hereby further amended to read as follows:
"Sec. 28. Penal Clause. -

"(h) Any employer who, after deducting the monthly contributions ot loan

amortizations from his employee’s compensation, fails to remit the said deduction to the
SSS within thirty (30) days from the date they became due, shall be presumed to have
misappropriated such contributions or loan amortizations and shall suffer [the penalties
provided in Article Three hundred fifteen of the Revised Penal Code.) A FINE OI
INTY FIVE THOUSAND PESOS (P25,000.00) AND AN ADDITIONAL
TWENTY THOUSAND PESOS (P20,000.00) FOR EVERY TEN THOUSAND
WITHELD AND IMPRISONMENT FOR NO L ul
(8) NOR MORE THAN FOURTEEN (14) YEARS.
AMOUNT PAID AS FINE SHALL BE GIVEN TO THE
CONTRIBUTION WAS NOT REMITTED IN ADDITION TO ANY CIVIL.
DAMAGES THAT SAID EMPLOYEE MAY BE ENTITLED TO.

SEC. 2. Repealing Clause. Any law, presidential decree or issuance, executive order,

letter of instruction, administrative order, rule or regulation inconsistent with this Act is hereby
repealed, modified or amended accordingly

SEC. 3. Effectivity Clause. this Act shall take effect fifteen (15) days after its

publication in at least two (2) newspapers of general circulation.

Approved,