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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
UFfIC£ Of-- Tf)~ 'SECt;.t, t.i\H'I 
First Regular Session 
l() 
,UL 21 
',,4 
SENf1703 
S,No, ___ _ 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 11, Section 18 mandates the State to protect the rights of 
workers and promote their welfare, The Labor Code, as amended, Article 3, 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 
equivalent to three percent (3%) per month from the date the contributions falls due until paid or 
imprisonment of not less than six months nor more than one year, 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 imprisonment of not 
less than six months and one day to six years and or a fine equivalent to not less than the total 
contributions unremitted plus three percent (3%) monthly interest from the date the contribution 
fails due, 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,l 
1 This bill was originally filed during the Thirteenth Congress, First Regular Session, 
1 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
First Regular Session 
SENATE 
S. No. 1703 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT 
iiJltlL 2134 
/ 
j 
2 
AMENDING REPUBLIC ACT NO. 1161, ALSO KNOWN AS THE SOCIAL SECURITY 
3 
CONTRIBUTIONS TO THE SOCIAL SECURITY SYSTEM BY THE EMPLOYER 
4 
LAW, AS AMENDED, INCREASING THE PENALTIES FOR NON-REMITTANCE OF 
5 
CONTRIBUTIONS TO THE SOCIAL SECURITY SYSTEM BY THE EMPLOYER 
6 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
7 
Congress assembled: 
8 
SECTION 1. Republic Act No. 1161, otherwise known as the Social Security Law, as 
9 
amended, Section 28, Paragraph ( e) is amended to read as follows: 
10 
"Sec., 28 -Penal Clause-
11 
xxx 
xxx 
xxx 
12 
(e) Whoever fails or refuses to comply with the provisions of this Act or with the 
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rules and regulations promulgated by the Commission, shall be punished by a fine 
14 
of not less than Five Hundred Pesos (P500.00) nor more than Five thousand Pesos 
15 
(P5,OOO.00) or imprisonment for not less than six months nor more than one year, 
16 
or both, at the discretion of the court: Provided, That where the vioiation consists 
17 
in failure or refusal to register employees or himself in case of the covered self-
18 
employed or to deduct contributions from the employees' compensation [AND 
19 
REMIT THE SAME TO THE SSS], the penalty shall be a fine of not less than 
20 
Five Hundred Pesos (P500.00) nor more than Five thousand Pesos (P5,000.00) 
21 
and imprisonment for not less than six months nor more than one year; Provided 
22 
further, that FAILURE! OR REFUSAL TO PAY OR REMIT CONTRIBUTIONS 
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SHALL BE PUNISHABLE BY A FINE OF AN AMOUNT EQUIVALENT TO 
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NOT LESS THAN THE TOTAL CONTRIBUTIONS DUE OR WITHHELD, 
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WHICHEVER IS HIGHER, OR IMPRISONMENT OF NOT LESS THAN SIX 
26 
MONTHS AND ONE DAY TO SIX YEARS, OR BOTM AT THE 
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DISCRETION OF THE COURT (As amended by Sec. 19, RA 1792, Sec. 16, RA 
28 
2658, Sec. 8 P.D. 177, S-1973 and Sec. 20, P.D. 1636, S-1979) 
1 


1 
SECTION 2. Repealing Clause. - Any law, presidential decree or issuance, executive 
2 
order, letter of instruction, administrative order, rule and regulation contrary to, or inconsistent 
, 
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with the provisions of this Act, is hereby repealed, modified, or amended accordingly. 
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SECTION 3. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
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in two (2) newspapers of general circulation. 
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Approved, 
2