SSS files 17% more cases vs erring firms in first sem

MANILA, Philippines - The Social Security System (SSS) has filed criminal charges against 606 companies during the first half of 2012 for violations ranging from failure to register workers for SSS coverage, refusal to cooperate with SSS account officers, and failure to remit contributions.

Of the 606 firms, 494 firms failed to remit monthly premiums amounting to P209.34 million, including penalties of more than P118 million.

SSS assistant vice president for operations Santiago Agdeppa said the state pension fund intensified legal measures to compel employers to fulfill their responsibilities under the law.

“As a result, the number of companies sued by SSS grew by 17 percent as compared with the 518 companies charged in the first half of 2011,” Agdeppa noted.

Under the Social Security Act of 1997, delinquent employers face six to 12 years in prison and a maximum fine of P20,000. They are also charged with a stiff monthly penalty of three percent on overdue contributions of employees.

The SSS collected P155.63 million in the first half of 2012 from employers who settled their delinquencies after the SSS initiated legal actions against them such as issuance of demand letters and filing of cases.

“Non-remittance of contributions is the most common violation of employers, accounting for four out of every five cases filed by SSS. We also sued 109 firms for failure to register their workers for SSS coverage and refusal to present company records to SSS authorities,” he said.