MANILA, Philippines - Many workers nationwide are unable to enjoy medical and other mandated benefits because employers are not remitting the Social Security System (SSS) premiums.
The Department of Labor and Employment (DOLE) reported yesterday that over 20 percent of commercial establishments are not complying with SSS, PhilHealth and Pag-IBIG requirements.
“From January to August, the national SSS coverage rate is at 85.8 percent, while the remittance rate is at 83.8 percent,” Baldoz disclosed.
National coverage rate of Pag-IBIG was pegged at 82.9 percent. PhilHealth recorded a national coverage rate of 85.0 percent and 83.5 percent remittance rate.
Based on DOLE data, over 26,000 establishments were monitored for labor laws compliance that include payment of mandatory SSS, PhilHealth and Pag-IBIG contributions.
“We must all aim for a 100 percent compliance and remittance with regards SSS, PhilHealth and Pag-IBIG premium contributions to genuinely adhere to decent work indicators and comply with labor laws,” Baldoz stressed.
She then ordered all DOLE regional offices strictly monitor establishments’ compliance to labor laws-mandated-social benefits.
“We must report to PhilHealth, as well as SSS and Pag-Ibig regional offices the deficiencies of establishments assessed by our Labor Laws Compliance Officers (LLCOs),” Baldoz added.
The labor chief further urged employers to safeguard and protect the rights of workers for any contingency arising from illness, including social benefits afforded by these state insurance institutions.
Baldoz said DOLE is implementing a Labor Laws Compliance System (LLCS) wherein establishments with deficiencies are given the opportunity to comply, or correct, the deficiencies noted during the assessments.
“So there is no reason for establishments to be remiss of their legal and moral responsibility to their employees,” Baldoz explained.
The militant Kilusang Mayo Uno (KMU) earlier called on the government to strictly enforce the law and penalize employers who deduct payment from their workers, but do not remit premium to the Social Security System (SSS).
KMU claimed that a large number of companies nationwide do not remit the premium to the social insurance agency.
KMU cited a Commission on Audit (COA) report indicating that some P8 billion SSS contributions have been lost in 2014 due to non-remittance of premium.
COA said workers were unable to secure loans or enjoy their maternity benefits because their employers did not remit the premium despite the fact that payments were deducted from the monthly salaries.