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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Coverage with the SSS shall be compulsory upon all employees. (Section 9, R.A. No. 11199)
The compulsory coverage of an employer takes effect on the day of his employment. (Section 10, R.A. No. 11199)
The employer shall report all employees for coverage, regardless of status of employment, within thirty (30) days from actual employment date using the Employment Report Form (SS Form R-1A) for submission to any SSS branch, or online via the employer’s My.SSS account in the SSS website (www.sss.gov.ph).
Coverage with the SSS shall be compulsory upon all employees.
The law says:
“Coverage in the SSS shall be compulsory upon all employees including kasambahays or domestic workers not over sixty (60) years of age and their employers: Provided, That any benefit already earned by the employees under private benefit plans existing at the time of the approval of this Act shall not be discontinued, reduced or otherwise impaired: Provided, further, That private plans which are existing and in force at the time of compulsory coverage shall be integrated with the plan of the SSS in such a way where the employers contribution to his private plan is more than that required of him in this Act, he shall pay to the SSS only the contribution required of him and he shall continue his contribution to such private plan less his contribution to the SSS so that the employer’s total contribution to his benefit plan and to the SSS shall be the same as his contribution to his private benefit plan before the compulsory coverage: Provided, further, That any changes, adjustments, modifications, eliminations or improvements in the benefits to be available under the remaining private plan, which may be necessary to adopt by reason of the reduced contributions thereto as a result of the integration, shall be subject to agreements between the employers and employees concerned: Provided, further, That the private benefit plan which the employer shall continue for his employees shall remain under the employer‘s management and control unless there is an existing agreement to the contrary: Provided, finally, That nothing in this Act shall be construed as a limitation on the right of employers and employees to agree on and adopt benefits which are over and above those provided under this Act.” (Section 9, R.A. No. 11199)
When does the SSS coverage of an employee become effective?
The compulsory coverage of an employer takes effect on the day of his employment.
The law says:
“Compulsory coverage of the employer shall take effect on the first day of his operation and that of the employee on the day of his employment: Provided, That the compulsory coverage of the self-employed person shall take effect upon his registration with the SSS.” (Section 10, R.A. No. 11199)
It is among the Legal Obligations of an Employer under the Social Security Act of 2018 to safeguard the social security protection of their employees and ensure compliance with the Social Security Act of 2018 (Republic Act No. 11199) as well as its Implementing Rules and Regulations.
Under the law, an SSS employer-member is obliged to require its prospective employees to register with the SSS and present their Social Security numbers for reporting to the SSS.
The employer shall report all employees for coverage, regardless of status of employment, within thirty (30) days from actual employment date using the Employment Report Form (SS Form R-1A) for submission to any SSS branch, or online via the employer’s My.SSS account in the SSS website (www.sss.gov.ph).
Did you know that an employer maybe held criminally liable for violations or non-compliance with the Social Security Act of 2018?
Section 28 of the Social Security Act of 2018 penalizes employers with a fine, imprisonment, or both fine and imprisonment for violations or non-compliance such as (1) failure or refusal to register its business, (2) failure or refusal to report its employees for coverage. (3) failure or refusal to produce records for inspections, and (4) failure or refusal to deduct and remit the contributions and/or loan repayments of its employees to SSS.
The law says:
“(e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations promulgated by the Commission, shall be punished by a fine of not less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00), or imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court: Provided, That where the violation consists in failure or refusal to register employees or himself, in case of the covered self-employed or to deduct contributions from the employees’ compensation and remit the same to the SSS, the penalty shall be a fine of not less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00) and imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years.” (Section 28, R.A. No. 11199)
Read also: Remittance Of Contributions For SSS
Alburo Alburo and Associates Law Officesspecializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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