COA hits SSS’ continued failure to collect P89-billion contributions from employers
MANILA, Philippines – The Commission on Audit (COA) flagged the Social Security System (SSS)’s failure to collect the entire P93.747 billion in unpaid or unremitted premium contributions from employers.
State auditors discovered that the state insurer has only collected 4.89% or only P4.58 billion out of the total outstanding balance. This leaves at least P89.17 billion that are yet to be collected from 420,627 employers.
COA said that this has a direct impact on the agency’s ability to carry out its mandate, adding that it “deprives SSS of much-needed funds for the timely delivery of social security protection, claims, and benefits, to its members and their beneficiaries.”
It also pointed out that majority of these employers — at least 349,189 — did not avail of the installment plan offered by SSS, practically ignoring the government’s efforts to help them fulfill their obligation.
Meanwhile, at least 70,975 employers were tagged as “inactive, under temporary suspension, or with closed/dormant accounts” which totaled P25.774 billion.
SSS said it cannot force employers to pay and blamed the delay in cases filed before courts against delinquent employers. These factors also include the non-apprehension of company leaders as well as the changes in judges.
Among the factors it blamed for the delay are non-apprehension of company executives, dilatory tactics being employed by the counsel of defendant companies, and the retirement, transfer or promotion of judges who are handling the cases.
These huge amounts of uncollected payments exist in the face of another increase in contributions of private sector workers scheduled by January 2025. Despite this, it is stated in the Social Security Act of 2018 that failure to remit contribution “shall not prejudice the right of the covered employee to the benefits of the coverage.”
COA, however, stated that this weak performance in collecting premium would require SSS to exert more effort to pay for benefits. – Rappler.com