Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 4409

Introduced by Bayan Muna _
Representatives NERI JAVIER COLMENARES and TEDDY A. CASINO

AN ACT
AMENDING PARAGRAPH (h), SECTION 28 OF REPUBLIC ACT 8282,
AS AMENDED OTHERWISE KNOWN AS THE SOCIAL SECURITY
LAW

EXPLANATORY NOTE

In Tine with the constitutional mandate to protect the rights of workers and promote their
welfore, the Social Security Law penalizes employers for failure 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 fiunds deducted from
ir already meager wages. Some employers, especially big companies with a large number of

loyees. have no qualms about violating the said provision of the law because they could just

the payment of the negligibie fines presently imposed therein or opt for condonation or
amunesty 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
ivables from unpaid contributions to the SSS, the RA 9903 or the Social Security

sacnation Law of 2009 was passed in January 2010. The said Condonation Law should serve
teprieve for employers to settle their delinquent status.

Meanwhile, thousands of SSS pensioners suffer from the very inhumanly low pension of
about P1200 per month which is surely inadequate to meet the current cost of living. These
uncollected contributions should be used in funding increase in the pension of many SSS
inembers. including OF Ws, currently ree}ing 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
heir SSS contributions but are being denied their benefits and privileges because of their
employers’ failure to remil their contribucions.

Thus, to deter unscrupulous employers from further violating the law, this bill seeks t0
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

ployees and imposing steeper fines for such a violation. The Bill also aims to help the victim-
s by commanding that half of any fine imposed on these unscrupulous employers

be given to the aggrieved employee.

Immediate passage of this bill is earnestly sought.

—
Cn
TEDDY A. CASINO

Bayan Muna Party-List



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL No.__ 4409

Introduced by Bayan Muna
Representatives NERI JAVIER COLMENARES and TEDDY A. CASINO

AN ACT
AMENDING PARAGRAPH (h), SECTION 28 OF REPUBLIC ACT 8282,
AS AMENDED OTHERWISE KNOWN AS THE SOCIAL SECURITY
LAW

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

SECTION 1. Paragraph (h) of Section 28 of Republic Act No. 8282, as amended, is
herey further amended to read as follows

“Sec. 28. Penal Clause. -

"(h) Any cmpleyer who, after deducting the monthly contributions or foan
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 fizteen of the Revised Penal Code.] A FINE OF
TWENTY FIVE THOUSAND PESOS (P25,000.00) AND AN ADDITIONAL
TWENTY THOUSAND PESOS (P 20,000.00) FOR EVERY TEN THOUSAND PESOS
WITHELD AND IMPRISONMENT FOR NO LESS THAN EIGHT YEARS (8) NOR
MORE THAN FOURTEEN (i4) YEARS. HALF OF THE AMOUNT PAID AS FINE
SHALL BE G{VEN TO THE EMPLOYEE WHOSE CONTRIBUTION WAS NOT
REMITTED IN ADDITION TO ANY CIVIL DAMAGES THAT SAID EMPLOYEE
MAY BE ENTITLED TO.


SEC. 2. Repeating Clause. Any law, presidential decree or issuance, executive order,
{ener of instruction, administrative order, rule or regulation inconsistent with this Act is hereby
sepealed, modified or amended accordingly.

SEC. 3. Hffectivity Clause. This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved.