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Obligations of the Employer under RA 1161 or the Social Security Law


RA 1161 or the Social Security Law imposes a number of obligations for employers. Most of the employers, however, are unaware of these obligations.  In many cases, they are informed only once a case has been filed against them.

Here are some of the obligations imposed upon employers under the RA 1161.

1. To pay the employer’s contribution for employees under the compulsory coverage of RA 1161.

2. To report to the SSS the names, ages, civil status, occupations, salaries and dependents of all his employees who are subject to the compulsory coverage

3. To submit a quarterly collection list to be submitted to the SSS at the end of each calendar quarter indicating the correct ID number of the employer, the correct names and the SS numbers of the employees and the total contributions paid for their account during the quarter.

4. To remit to the SSS within the first seven (7) days of each calendar month following the month for which they are applicable or within such time as the commission may prescribe. In case of failure to deduct and remit such contributions, the employer shall be liable for their payment. In addition, the employer shall be held liable to pay a penalty of three percent (3%) per month from the date the contribution falls due until paid.

5. To pay the SSS damages equivalent to the benefits to which an employee would have been entitled if the employee should die or become sick or disabled or reach the age of sixty without the SSS having previously received any report or written communication about him from his employer or a contribution paid in his name by his employer.  For pension benefits, the employer shall be held liable to pay the SSS damages equivalent to five year of monthly pension.

6. To pay the SSS damages for misrepresenting the true date of the employment of his employees or remitting to the SSS contributions which are less than those required under RA 1161.  In addition, the employer shall be held liable for the payment of the unremitted contribution.

7. To keep a true and accurate word records containing information as the Commission may prescribe in addition to the Annual Register of New and Separated Employees which shall be secured from the SSS wherein the employer shall enter on the first day of employment or on the effective date of separation, the names of the persons employed or separated from employment, their SSS numbers, and such other data that the Commission may require and said annual register shall be submitted to the SSS in the month of January of each year. Such records shall be open for inspection by the SSS or its authorized representatives quarterly or as often as the SSS may require.

8. To require as a condition of employment the presentation of a registration number secured by the prospective employee from the SSS.  For employees who have been assigned registration numbers by virtue of a previous employment, such numbers assigned to them should be used.

Filed in: HR Management Services, Legal Services

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