SSS recovers P40 million from erring Central Visayas employers

CEBU, Philippines — The Social Security System (SSS) has recovered P40 million in unpaid contributions and penalties from over 400 delinquent employers in Central Visayas through its Run After Contribution Evaders (RACE) campaign last year.

 SSS Acting Head for Visayas Central 1 Division, Eric A. Coronado, reported that in 2024, violation notices were issued to 837 non-compliant employers across 20 cities and municipalities in Cebu and Bohol.

These businesses were cited for failing to remit their employees’ SSS contributions and for not registering their enterprises with the agency.

 According to Coronado, 54 percent of the employers who received violation notices have taken action, with 157 fully settling their dues, 156 making partial payments, and 48 opting for installment payment plans.

Additionally, 93 previously unregistered businesses have now complied with SSS requirements. The recovered contributions are expected to benefit 8,629 employees, ensuring their eligibility for SSS benefits and loan privileges.

 “Employees will finally see their past-due contributions reflected in our system, securing their access to social security benefits,” Coronado said.

Employers who ignore the notices face legal repercussions, as non-compliance deprives workers of essential social security protection—a violation of Republic Act No. 11199, or the Social Security Act of 2018. As a result, 330 employer accounts have been referred to the Visayas Central Legal Department for legal action.

By December 2024, the SSS had filed 16 complaints with the prosecutor’s office, while two cases were elevated to the courts.

Further, 16 establishments are undergoing reassessment as SSS awaits compliance with record requests, while six employers have yet to submit the required documents.

 “SSS requires employers to present payroll records, employment contracts, and financial statements to determine the exact amount of their contribution deficiencies,” Coronado explained.

Coronado also noted that 13 employers subjected to RACE operations had ceased business operations without properly notifying the SSS.

 “We urge employers who have closed their businesses to coordinate with their respective SSS Account Officers to formally document the closure. This will prevent them from receiving further billing statements for unpaid contributions,” he said.

He emphasized, however, that businesses must settle any outstanding contributions and penalties before officially closing.

Employers are required to submit SSS Form R8 (Employer Data Change Request) and SSS Form R1A (Employment Report), along with a surrendered business permit and identification documents, to finalize their status with the agency.

While the P40 million collection marks a significant achievement, Coronado stressed that the SSS remains committed to intensifying efforts to ensure employer compliance.

“More work must be done to hold every employer accountable under the law. The SSS will continuously monitor delinquent accounts to recover unpaid contributions and penalties,” he said.

The agency is preparing for another round of RACE operations in Central Visayas in the coming months, reinforcing its campaign to uphold workers’ rights to social security protection.