SSS, DILG team up to go after delinquent employers

by Alvin Elchico, ABS-CBN News

Posted at Jan 24 2013 03:43 PM | Updated as of Jan 24 2013 11:43 PM

MANILA, Philippines - The Social Security System (SSS) has signed an agreement with the Department of Interior and Local Government (DILG) to make sure businesses comply with member contributions.

Under the agreement, the SSS will submit to the local government unit a list of delinquent employers.

Once a business entity that applies for a permit is found to be delinquent, the LGUs are mandated to issue a 3-month interim permit, enough time for the delinquent firm to pay its overdue contribution.

For the first two semesters of 2012, 606 cases were filed against deliquent employers, with overdue payment reaching P209 million.

According to SSS, many employers settle their delinquent accounts but some actually reach litigation. In 2007, 4 employers were convicted, in 2008-4, in 2009-4, 1 in 2010, 2 in 2011 and 2 last year.

SSS president Emilio de Quiros clarified the new rule will not add to the red tape but it has actually improved the previous guideline that companies first need clearance from SSS that it remits regularly before it can get a business permit.

Meanwhile, the SSS will again lobby with President Aquino to approve the increase in premium contribution by 10.4 to 11 % to boost the pension fund's income and to prolong the life of the fund.

Malacanang had earlier given the go-signal for Philhealth to hike monthly contribution beginning this month.