THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
FIRST REGULAR SESSION 
Introduced by SENATOR LUISA “LOI” P. 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 opportuiiities regardless of sex, race or creed and regulate the relations between 
workers and employers. 
Republic Act No. 1 16 1, as amended, otherwise lmown 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 
Tliousand 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 (P10,OOO.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 imposing 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. 
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LUISA “LOI” 
EJERCITO ESTRADA 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
FIRST REGULAR SESSION 
1 
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S E N A T E  
I )  -? 
S.B. Nb! [? 
L e  
Introduced by SENATOR LUISA “LOP P. EJERCITO ESTRADA 
AN ACT 
AMENDING REPUBLIC ACT NUMBERED ELEVEN HUNDRED SIXTY ONE, 
ALSO KNOWN AS THE SOCIAL SECURITY LAW, AS AMENDED, INCREASING 
SOCIAL SECURITY SYSTEM BY THE EMPLOYER 
THE PENALTIES FOR NON-REMITTANCE OF CONTRIBUTIONS TO THE 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assein bled: 
Sec. 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. - 
x x x  
“(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] TEN thousand pesos [P5,000.00] 
(P10,OOO.OO) nor more than [Twenty] FIFTY thousand pesos [P20,000.00] 
(P50,OOO.OO) 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 
contributions 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 [PS,OOO.OO] (P10,OOO.OO)nor more than [Twenty] FIFTY Thousand 
Pesos [P20,000] (P50,OOO.OO) and imprisonment for not less than six (6) 
years and one (1) day nor more than twelve (12) years; Provided fLirther, 


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. 
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Sec. 2. Separability Clause. 
If any provision or part hereof is held invalid or 
uncoiistitutional, 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, 
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