Philippine State Pension Fund SSS Serves Notices to Over 400 Delinquent Employers Owing More Than P169 Million
Key Takeaways
- •The SSS has served notices to 419 delinquent employers with contribution delinquencies exceeding P169 million under its Run After Contribution Evaders (RACE) program.
- •In a Monday operation in Pasay City, five business employers were called on to settle P3.19 million, comprising P1.14 million in unpaid contributions and P2.05 million in penalties.
- •A restaurant establishment recorded the highest delinquency at P2.25 million after failing to remit the social security contributions of its 35 employees.
- •Under Republic Act No. 11199, notified employers have 15 days to settle their contributions or face fines of P5,000 to P20,000 and imprisonment ranging from six years and one day to 12 years.
- •SSS President and CEO Robert Joseph M. de Claro stated that employers are legally required to deduct and remit workers' contributions, and that failure to do so deprives employees of their rightful benefits.
The Social Security System (SSS), the Philippines' state pension fund, said on Monday that it has served notices to 419 delinquent employers with contribution delinquencies amounting to more than P169 million under its Run After Contribution Evaders (RACE) program. The campaign targets employers who fail to remit the monthly social security contributions of their workers.
“Every employer is required by law to deduct and remit social security contributions on behalf of their employees. Failure to do so not only violates the law but also deprives workers of their rightful benefits,” SSS President and Chief Executive Officer Robert Joseph M. de Claro said in a press release. Because employer remittances are what fund the benefits members claim from the state pension system, gaps in compliance translate directly into gaps in workers' coverage.
As part of the campaign, the agency on Monday conducted an operation in Pasay City, calling on five business employers to settle contribution delinquencies totaling P3.19 million — a small portion of the more than P169 million owed across the 419 employers served notices.
The five erring employers incurred P1.14 million in unpaid contributions and P2.05 million in penalties, all cited for non-remittance of monthly contributions under Republic Act (RA) No. 11199, or the Social Security Act of 2018. Penalties accounted for nearly two-thirds of the group's combined liability, showing how accruing charges can push delinquent accounts well beyond the original contributions owed.
Among the violators, a restaurant establishment recorded the highest contribution delinquency at P2.25 million — P739,000 of which are unpaid workers' contributions, while P1.51 million are in penalties. Citing SSS records, the agency said the establishment failed to remit the social security contributions of its 35 employees. In that case, penalties were more than double the unpaid principal.
Under RA 11199, delinquent employers are given 15 days from the day of receipt of the notice to settle their contributions, or they will be penalized with a fine of P5,000 to P20,000 and face imprisonment ranging from six years and one day to 12 years. With the notices now served, the 15-day settlement window is running for the 419 employers, after which the law's fine and imprisonment provisions apply to those who remain delinquent.
