PENAL PROVISIONS OF THE SOCIAL SECURITY ACT OF 2018

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Published — June 22, 2021

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

After reading Penal Provisions of the Social Security Act of 2018, you can also read Remittance of Contributions For SSS

• An employer who fails to remit the monthly contributions from his employee’s compensation shall be presumed to have misappropriated such contributions

• Any employee of the Social Security System (SSS) is prohibited from keeping funds or property deliverable to the SSS

• A fine or an imprisonment or both may be imposed by court to any person who violated the provisions of the Social Security Act of 2018

W hat acts are prohibited under the Social Security Act of 2018?

The law says:

The following are prohibited:

1. Whoever, for the purpose of causing any payment to be made under the Social Security Act of 2018 (SSA), or under an agreement, where none is authorized to be paid, shall make or cause to be made false statement or representation as to any compensation paid or received or whoever makes or causes to be made any false statement of a material fact in any claim for any benefit payable under the said law, or application for loan with the SSS or whoever makes or causes to be made any false statement, representation, affidavit or document in connection with such claim or loan, shall suffer the penalties provided for in Article One hundred seventy-two of the Revised Penal Code.

2. Whoever shall obtain or receive any money or check under the SSA, or any agreement, without being entitled and with intent to defraud any member, employer or the SSS, shall be fined not less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00) and imprisoned for a period of not less than six (6) years and one (1) day nor more than twelve (12) years.

3. Whoever buys, sells, offers for sale, uses, transfers or takes or gives in exchange, or pledges or gives in pledge, except as authorized under the SSA or its regulations, any stamp, coupon, ticket, book or other device, prescribed for the collection or payment of contributions, shall be fined not less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00), or imprisoned for a period of not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court.

4. Whoever, with intent to defraud, alters, forges, makes or counterfeits any stamp, coupon, ticket, book or other device prescribed for the collection or payment of any contribution, or uses, sells, lends, or has in his possession any such altered, forged or counterfeited materials, or makes, uses, sells or has in his possession any such altered, forged, material in imitation of the material used in the manufacture of such stamp, coupon, ticket, book or other device, shall be fined not less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00) or imprisoned for a period not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court.

5. Whoever fails or refuses to comply with the provisions of the SSA or with its corresponding rules and regulations, shall be punished by a fine of not less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00), or imprisonment for a period of not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court.

   Also, where the violation consists in failure or refusal to register employees or himself, in case of the covered self-employed or to deduct contributions from the employees’ compensation and remit the same to the SSS, the penalty shall be a fine of not less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00) and imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years.

6. If the act or omission penalized by the SSA be committed by an association, partnership, corporation or any other institution, its managing head, directors or partners shall be liable for the penalties provided in the SSA.

7. Any employee of the SSS who receives or keeps funds or property belonging, payable or deliverable to the SSS and who shall appropriate the same, or shall take or misappropriate, or shall consent, or through abandonment or negligence, shall permit any other person to take such property or funds, wholly or partially, or shall otherwise be guilty of misappropriation of such funds or property, shall suffer the penalties provided in Article Two hundred seventeen of the Revised Penal Code.

8. Any employer who, after deducting the monthly contributions or loan amortizations from his employee’s compensation, fails to remit the said deduction to the SSS within thirty (30) days from the date they became due or within the time prescribed by the Social Security Commission, shall be presumed to have misappropriated such contributions or loan amortizations and shall suffer the penalties provided in Article Three hundred fifteen of the Revised Penal Code.

9. Criminal action arising from a violation of the provisions of the SSA may be commenced by the SSS or the employee concerned either under SSA or in appropriate cases under the Revised Penal Code.