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Private employers as SSS partners

The Social Security System (SSS) has nearly 41 million members as of May 2022 wherein almost 31
million are employees from the private sector. Just like any other membership categories, they are
entitled to avail of the SSS benefits in times of contingencies such as sickness, maternity, disability,
unemployment, disability, retirement, funeral, and death.
However, these social security benefits will not be enjoyed without the active participation of the
employers. One of their legal obligations is to remit the SSS contribution of their his or her
employees. The compensation base for contributions and benefits related to the member’s total
earnings for the month is the monthly salary credit (MSC). The current SSS contribution rate is 13%
of the MSC and this is being shared by the employee and employer at 4.5% and 8.5%, respectively.
Further, the Employee’s Compensation (EC) contribution is also shouldered by the employer.
Employers should register first their business to SSS and secure an Employer (ER) ID Number. They
are also mandated to report their employees to SSS regardless of the status of employment and
maintain true and accurate employment records and present these whenever requested by the SSS.
Employers must also remit all deducted SSS loan amortizations of employees and pay in advance
the SS and EC Sickness benefits, and SS Maternity benefits.
To ensure the employers’ full compliance to the Social Security Law, the SSS has Account Officers
who are tasked to monitor employer accounts. They follow a series of process to reconcile the
records and issue an updated Statement of Account and Billing Letters which will be forwarded to the
employer for settlement. However, despite of series of reminders, some employers still failed to meet
their obligations.
When pandemic hit us in the first quarter of 2020, employers had the biggest blow of economic
downfall. Some chose to terminate employees while others ceased to operate to cope with the
situation. Others incurred contribution delinquencies as they prioritized other operating expenses like
supplies, utilities, and salaries of their employees.
To help these financially challenged employers, SSS offered various payment options for delinquency
settlement and avoid further legal implications. Hence, the relief and restructuring programs were
launched in November 2021.
The Pandemic Relief Restructuring Programs (PRRP) 2 and 3 specifically cater to employers with
contribution delinquencies. PRRP 2 offered Condonation of Penalties on Social Security
Contributions which allowed employers to pay the principal and interest while waiving the incurred
penalties. PRRP 3 or Enhanced Installment Payment Program for Social Security and Employees’
Compensation Contributions offers a flexible payment schedule ranging from nine to 60 months,
depending on the delinquency.
These programs will surely help employers regain their good standing with SSS and maintain active
membership status of their employees. Although PRRP 2 already ended last May, PRRP 3 is still
open for applications until November 21, 2022.
Despite of the ongoing programs offered to delinquent employers, others continue to neglect their
obligations. In my daily routine in the office, I met a pregnant member who cannot claim for maternity
benefit because her employer did not pay for her SS contribution. I heard an elderly man’s story after
receiving a sad news that he’s not qualified to receive retirement pension because he did not reach
the contribution requirement to qualify for such benefit. It turn out, his previous employer failed to
remit his monthly premiums. Same fate happened to a young man who cannot avail his much-
needed disability benefit because of his employer’s negligence.
This is the reason why SSS President and CEO Michael Regino ordered all branches nationwide to
resume the Run After Contribution Evaders (RACE) Campaign. It was launched in 2017 which aims
to intensify employers’ compliance to RA 11199 or Social Security Act of 2018 and increase collection
efficiency.

During the RACE Campaign, SSS issues written notices to delinquent employers ordering them to
fulfill their pending obligations. Otherwise, SSS will be compelled to pursue legal actions against
them.
This nationwide campaign is earning a ripple of success stories as more employers are now flocking
our branches to settle their financial obligations ahead of the visiting RACE team.
With this, SSS is calling all private employers – regular or even household employers, who are
financially challenged to take advantage of the PRRP 3. Employers who have questions on their
current standing may coordinate with their assigned Account Officers of their servicing branch.
Providing social protection is not only a legal obligation but also a moral obligation on the part of the
employers. They must acknowledge that securing the welfare of their workers is part of their lifelong
commitment as a responsible business owner. As an SSS employee, I strongly encourage all
employers to maintain a stronger partnership with SSS for the benefit of our employee-members.
For inquiries and or suggestions for topics, you may e-mail me at [email protected].

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