The Social Security System has conducted simultaneous Run After Contribution Evaders (RACE) operations in 114 selected areas nationwide to call on non-compliant employers to settle their contribution delinquencies.
The effort is part of the Labor Day activities the SSS facilitated to promote the welfare of more than 13,000 Filipino workers after issuing written notices to their employers for failure to remit their SSS contributions.
President and Chief Executive Officer Rolando Macasaet said 923 business employers across the country, including those unregistered, received show cause orders for incurring over P396.9 million worth of unpaid contributions and penalties, affecting the SSS benefits of 13,524 employees.
“We recognize the valuable contributions of Filipino workers to nation-building. They serve as the backbone of our economy and play a vital role as we move toward progress. Unfortunately, some employers overlooked workers’ key role in the economy and neglect remitting their social security contributions,” he said.
Of the 923 delinquent employers, 318 operate in Luzon with a total delinquency of P109.8 million affecting 3,344 employees. Mindanao came in second with 316 employers with a total delinquency of P69.2 million, affecting 3,669 employees.
The National Capital Region ranked third with 231 employers amounting to a total delinquency of P183.9 million involving 4,844 employees, and Visayas with 58 employers with a total delinquency of P34.0 million affecting 1,667 employees.
The majority of the employers visited by SSS are engaged in the following: 96 in the restaurant industry, 45 in retail selling, 31 in construction and supplies, 31 in management consultancy activities, 19 in the hotel and resort industry, 18 in school institutions, 17 in the hardware industry, 15 in food house industry, 12 in education services, and 12 in printing services.
Macasaet said 59 percent of employers failed to remit monthly contributions, 21.5 percent have gaps in paying the monthly contributions, and 10.5 percent are about non-registration.
The remaining 13.7 percent are those employers served with written notice for non-production of records, non-reporting of employees, underpayment of contributions, and under-reporting of their employees.
“If employers neglect their duties to remit the monthly contributions of their workers, they are depriving their employees of the rightful SSS benefits they deserve.
“A member’s monthly contributions serve as the basis to qualify for SSS benefits. And if their contribution records are not updated, they will not be entitled to claim SSS benefits or apply for loan programs,” Macasaet cited.