Republic of the Philippines
HOUSE OF REPRESENTATIV}
Quezon City

SIXTEENTH CONGRESS
‘Third Regular Session

House Bill No. 0976

Introduced by Honorable Sherwin T. Gatchalian

Explanatory Note

‘The enactment of RA 10361 or the “Kasambahay Law” in 2013 was
intended to extend social protection coverage to the househelp in every Filipino
home. The implementation however of the same law created an abyss which by
operation presented an unforeseen hardship for the low and middle income
families to comply with. While all laws must essentially be made prospective in
its application, the impending registration of the Kasambahay in every
household which is mandated by the said law brought to fore its legal implication
with an carlier crafted law - Republic Act 7655, entitled “An Act Increasing the
Minimum Wage of Househelpers, Amending for the Purpose Article 143 of
Presidential Decree No. 442, as Amended” which mandatorily required for the
membership of the Kasambahay under the SSS law. The contract of employment
and the act of registration in the barangays reflecting the actual date of
employment of the Kasambahays will now give rise for action by SSS to demand
from the employers the payment of contributions in arrears, impose sanctions
by way of interests and penalties for delinquencies and maybe upon finding by
courts of refusal to pay these contributions, by imprisonment under Section 28
(c) of the SS

A

ding to the records of the SSS, the number of househelpers who ha
registered for membership in 1993 when RA 7655 was enacted, was merely
5,175. In the year 2013 when the law took eflect, registrants rose to 114,580. By
the end of 2014, total household kasambahays who have become SSS members
were a total of 123,402. The numbers would still be rising if the government
provides an incentive for employers through the implementation of a program
that will lay-out easier payment plans, waiving the sanctions for delinquent
contributions and providing greater access for enrollment of their househelp
under the SSS law. This was in fact the recommendation of the National
Tripartite Industrial Peace Council (NTIPC), acting as the oversight body



implementing the IRR of the Kasambahay Law in its Resolution No. 9 issued in
2013.

It is the intent of this bill to make a prospective application of the law while
at the same time affording the Kasambahays the benefit and mantle of protection
which the social insurance extends. It will likewise help employers in the low and
middle-income families to consolidate their resources to be able to pay for the
contributions that may have fallen due even before the year 2013, in order to
extend to their Kasambahays the coverage benefit of the SSS law.

‘The fundamental precept of social justice is that "those who have less in
life must have more in law.” Social justice commands the protection by the state,
as well as its forgiveness to the less fortunate members of the society. Hence, we
recommend the immediate passage of this bill.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

House Bill No. 5976

Introduced by Honorable Sherwin T. Gatchalian

AN ACT

PROVIDING FOR THE CONDONATION OF PENALTIES FOR UNPAID SOCIAL
SECURITY SYSTEM CONTRIBUTIONS OF HOUSEHOLD EMPLOYERS
RELATIVE TO REPUBLIC ACT NO. 7655, ENTITLED “AN ACT INCREASING THE
MINIMUM WAGE OF HOUSEHELPERS, AMENDING FOR THE PURPOSE ARTICLE 143
OF PRESIDENTIAL DEGREE NO. 442, AS AMENDED” AND REPUBLIC ACT NO.
10361, ALSO KNOWN AS THE “DOMESTIC WORKERS ACT” OR “BATAS
.KASAMBAHAY”

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Social Security Condonation Program. ~ Any houschold
employer who is delinquent or has not remitted all contributions due and
payable to the Social Security System (SSS) pursuant to Republic Act No. 7655,
entitled “An Act Increasing the Minimum Wage of Househelpers, Amending for the
Purpose Article 143 of Presidential Decree No. 442, as Amended” and Republic
Act No. 10361, also known as the “Domestic Workers Act” or “Batas
Kasambahay” may, within twelve (12) months from the effectivity of this Act
remit said contributions or submit a proposal to pay the same in installments
within a period of not more than twenty-four (24) months from the approval of
the proposal without incurring the prescribed penalty, subject to the
implementing rules and regulations which the Social Security Commission may
prescribe: Provided, That the household employer submits the corresponding
collection lists together with the remittance or proposal to pay in installments:
Provided, further, That in case the household employer fails to remit
contributions within the twelve- month grace period or defaults in the payment
of any amortization provided in the approved proposal, the prescribed penalty
shall be imposed from the time the contributions first became due as provided
in Section 22 of Republic Act No. 1161, otherwise known as the “Social Security
Law,” as amended by Republic Act No. 8282.



SEC. 2. Coverage. - Any household employer who is delinquent or has not
remitted all contributions due and payable to the SSS may avail of the
condonation program under Section 1 of this Act, including the following:

(a) Those not yet registered with the SSS but will register as a
household employer after the effectivity of this Act but within the twelve-month
grace period provided in Section 1 of this Act;

(b) Those with cases pending before the courts or Office of the
Prosecutor involving collection of contributions or penalties; and

(c) Those who, before the effectivity of the Act, have remitted all
contributions due and payable to the SSS but have not paid the corresponding
penalties.

SEC. 3. Unregistered household employer. — Yo qualily for the
condonation program under this Act, an unregistered household employer shall
register with the SSS branch having jurisdiction over the household address of
the household employer and comply with the requirements under Section 1 and
those that may be required by the implementing rules and regulations of this
Act.

¢ failure or refusal of the employer
to pay or remit the contributions under this condonation program shall not
prejudice the right of the employee to the benefits of the coverage under the SSS
Law.

SEC. 5. Implementing Rules and Regulations. - Within thirty (30) days
after the approval of this Act, the Social Security Commission shall issue the
necessary rules and regulations for the effective implementation of this Act.

SEC. 6. Effectivity Clause. - 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,