HomeForexGo after delinquent firms, SSS told

Go after delinquent firms, SSS told

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THE Social Security System (SSS) should go after delinquent employers with unsettled contributions first before implementing a members’ contribution hike this year, a political group said on Monday.

The state pension fund should strengthen its collection system and recommend the creation of special courts solely responsible for trying cases against delinquent employers, fast-tracking unpaid contributions, said Teodoro A. Casiño, chairman of political group Bayan Muna.

“It is unconscionable and downright immoral for the Social Security System to collect higher premiums from millions of ordinary employees when it has tens of billions of uncollected remittances from delinquent employers,” he said in a statement.

Republic Act No. 11999 mandated SSS to hike its contribution rate to ensure the pension fund’s sustainability, increasing by increments of 1% every two years. The contribution rate was set at 12% in 2019 and would settle to 15% this year.

For 2025’s contribution rate, employers would shoulder 10% of the fund contribution with the remaining 5% being charged from employees.

“It’s infuriating to think that the SSS has imposed another premium increase this year, while according to the Commission on Audit (CoA), they have yet to collect P89.17 billion from delinquent employers,” said Mr. Teodoro, referring to the findings by state auditors in the pension fund’s 2023 audit report.

There are about 420,600 delinquent employers in 2023, according to the CoA report. — Kenneth Christiane L. Basilio

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