SSS fails to collect P92.4 billion contributions from delinquent employers
Credit to Author: Janvic Mateo| Date: Sat, 15 Jul 2023 00:00:00 +0800
MANILA, Philippines — Over 466,000 employers failed to remit over P92.49 million worth of premium collections to the Social Security System (SSS) last year, according to the Commission on Audit (COA).
In its 2022 audit report on SSS, state auditors found that only P2.48 billion or less than three percent of the P94.97-billion target was collected as of the end of 2022.
The percentage of collection was lowest in the National Capital Region (NCR) at P383.78 million out of the target of P64.67 billion (0.59 percent), followed by the rest of Luzon at P747.59 million out of P22.33 billion (3.35 percent), the Visayas at P305.54 million out of P6.48 billion (4.72 percent) and Mindanao at P405.8 million out of P7.33 billion (7.42 percent).
SSS was only able to collect P640.65 million out of the target of P7.33 billion among those under its Large Account Division.
The number of delinquent employers stood at 466,881 as of the end of last year, with the most in Luzon (including NCR) at 184,981, followed by the Visayas at 73,568, Mindanao at 65,012 and large accounts at 5,985.
The bulk of the amount – P83.83 billion from over 285,000 employers – remain uncollected for more than five years.
While billing letters have been sent to most employers, COA noted that only 10,989 cases were filed either at the prosecutor’s office, court or the Social Security Commission. Only 4,530 are active.
Last year’s collection was higher than the P1.89 billion collected from delinquent employers in 2021.
Still, auditors said the non-remittance by 466,881 employers of P92.492 billion “deprives the SSS of much-needed funds for the prompt delivery of social security protection, claims and benefits to its members and beneficiaries.”
“Under Section 22 of the Social Security Act of 2018, the right of a covered employee to the benefits of the SSS coverage is not prejudiced by the failure or refusal of the employer to pay or remit the contributions prescribed therein. Hence, the SSS is still bound to pay members benefits corresponding to the uncollected premium contributions, which may negatively affect the Reserves of the SSS,” it added.
Meanwhile, COA also noted that uncollected or delinquent member loan accounts stood at P77.089 billion at the end of last year, representing 66 percent of total member loan accounts worth P116.638 billion.
Although lower than last year’s P84.529 billion, state auditors said the uncollected loans from delinquent accounts exceeded 50 percent of the total member loan balance.
Some P20 billion were uncollected for more than five years.
“The substantial amount of delinquent loan accounts not only affects the financial health of the SSS but also undermines the goal of providing comprehensive social security protection to its members,” read the audit report.