Law compels employees to be members of SSS

Dear PAO,

Do employees who have been working for almost 10 years have a right to make contributions to the Social Security System (SSS)?

Louie

Dear Louie,

Once employed, employees are, in fact, mandated by law to be members of the Social Security System (SSS) according to Republic Act 8282, or An Act Further Strengthening the Social Security System thereby amending for this purpose, Republic Act 1161, as amended, or the Social Security Law.” Under Section 9 thereof, coverage in the SSS shall be compulsory upon all employees not over 60 years old and their employers: Provided, That in the case of domestic helpers, their monthly income shall not be less than P1,000.00 a month. Employees mentioned in the law must be performing services for his employer, but does not include the following:

(1) Employment purely casual and not for the purpose of occupation or business of the employer;
“(2) Service performed on or in connection with an alien vessel by an employee if he is employed when such vessel is outside the Philippines;
“(3) Service performed in the employ of the Philippine government or instrumentality or agency thereof;
“(4) Service performed in the employ of a foreign government or international organization, or their wholly-owned instrumentality: Provided, however, that this exemption notwithstanding, any foreign government, international organization or their wholly owned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines, may enter into an agreement with the Philippine government for the inclusion of such employees in the SSS except those already covered by their respective civil service retirement systems: Provided, further, that the terms of such agreement shall conform with the provisions of this Act on coverage and amount of payment of contributions and benefits: Provided, finally, that the provisions of this Act shall be supplementary to any such agreement; and
“(5) Such other services performed by temporary and other employees which may be excluded by regulation of the [System]. Employees of bona fide independent contractors shall not be deemed employees of the employer engaging the service of said contractors [Section 8 [j], Republic Act 8282]
Compulsory coverage of the employee and his employer shall take effect on the first day of the employee’s employment [Section 10, Republic Act 8282]. The employer shall deduct and withhold from such employee’s monthly salary, wage, compensation or earnings, the employee’s contribution in an amount corresponding to his salary, wage, compensation or earnings during the month in accordance with the schedule mentioned in Republic Act 8282 [Section 18)] The contribution required would come not only from the employees but from their respective employers also in accordance with the schedule fixed by Republic Act 8282.

In case the employer fails or refuses to register the employee with the SSS or to deduct contributions from the employee’s compensation and remit the same to the SSS, he shall be liable to pay fine of not less than P5,000.00 nor more than P20,000.00 and shall be imprisoned for not less than six years and one day nor more than 12 years [Section 28 [e], Republic Act 8282].

Prosecution for the violation of SSS rules may be instituted in the court having jurisdiction over the case whether in Metro Manila or in the city or municipality where the SSS office concern is located at the option of the SSS. It may be commenced by the SSS itself or concerned employee thereof [Section 28 [i], Republic Act 8282].”

We hope that we have answered your queries. We wish to remind you that the above legal opinion is solely based on the facts you have narrated and our appreciation of the same. The opinion may vary when other facts are changed or elaborated.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net –PERSIDA ACOSTA, Manila Times