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Monday, May 6, 2024

Penalty for unpaid SSS, GSIS contributions lowered

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Labor Secretary Silvestre Bello III said the penalty imposed on employers for failure to remit employees’ compensation contribution to the Social Security System and the Government Service Insurance System has been reduced from 3 percent to 2 percent.

In a board resolution, the Employees’ Compensation Commission revised the schedule of penalties.

“ECC amended its rules on employees’ compensation in response to the penal provisions on the collection of contributions of SSS and GSIS,” said Bello, who also sits as chairman of the ECC board.

“By revising the penalty for unpaid contributions and setting the penalty at uniform rate, the Commission, with its implementing agencies, the SSS and the GSIS can better facilitate the implementation of its EC Program,” added ECC Executive Director Stella Zipagan-Banawis.

Meanwhile, Senator Ronald dela Rosa has filed a bill seeking to provide security of tenure to all casual and contractual employees in government.

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Under Senate Bill No. 235, Dela Rosa wants to grant permanent and regular employment to the thousands of eligible government workers.

“This is in honor to the dedication and hard work of our government employees who have carried out the tasks desirable and necessary and in the service of the Filipino people,” the senator said.

The proposed measure will provide security of tenure for all casual and contractual civil servants who have worked in the government for at least five years continuously for the national agencies or a total of 10 years continuous service in the case of local government units.

However, Dela Rosa said such requirement of continuous service may be waived if the service of the official or employee concerned prior to the completion of the said years was interrupted by not more than three years, taken cumulatively, due to either abolition of the position, reorganization of the office, or reduction in force.

A recent report of the Civil Service Commission showed that in 2017, more than 27 percent of the 2.4-million government workers—equivalent to about 660,390—are considered as job order or contract of service employees.

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