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ECC cuts penalty for failure to remit SSS contributions.

The Employees' Compensation Commission (ECC) has reduced employers' penalties for failure to remit employees' compensation (EC) contribution to the Social Security System (SSS) and the Government Service Insurance System (GSIS).

Labor Secretary Silvestre H. Bello III disclosed that the ECC issued last month a new board resolution that slashed the rate of monthly fines for late employee remittances to 2 percent, from 3 percent.

Bello noted that the penalties will continue to accumulate until the contributions are paid by the concerned employers.

The labor chief, who also chairs the ECC board, said the reform aims to standardize ECC regulations for members of the SSS and the GSIS. This, after the Social Security Act of 2018 was passed into law amending some policies of the SSS.

'The ECC deemed it proper to revise the prevailing percentage or the amount of penalty to be imposed on employers who fail to pay their EC contribution to avoid confusion in regard to the percentage or amount of penalty being enforced by SSS and GSIS,' Bello said in a statement.

ECC Executive Director Stella Zipagan-Banawis said the commission expects that the new policy will lead to more efficient operations.

'By revising the penalty for unpaid contributions and setting the penalty at uniform rate with SSS and GSIS, the Commission, with its implementing agencies, the SSS and the GSIS, can better facilitate the implementation of its EC Program,' Banawis said.

The ECC revised the schedule of penalties for failure to remit EC contribution to the SSS and GSIS as provided under Republic Act 11199, or the Social Security Act of 2018, and RA 8291, also known as the Government Service Insurance System Act of 1997.

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Publication:Business Mirror (Makati City, Philippines)
Date:Aug 5, 2019
Words:326
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