July 21, 2010
Denial of SSS benefits
Dear Mrs. Colayco,
I was glad to find your column here because I really need your help very badly. My father is
a victim of illegal dismissal and, for me, I consider it human rights violence. And because
we are lacking in finance ahd he thinks he’s uneducated, he started losing hope and felt
depressed about it. These things happened when I complained about his SSS contribution
that his employer didn't pay because they we're claiming that my father is not a company employee,
but a “private employee”, after of more than 12 yrs of service
without any leave of absence from his work. I was the one pursuing this case but since
I’m not much aware with these matters I need your second opinion. Please help us.
Thank you very much.
—Rose D.
Mrs. Colayco replies:
Dear Rose,
It is really very painful for your father to work faithfully for 12 years and not receive what
he expected for his service. Before anything else though, please tell your father that he should not
allow himself to be depressed because depression will not bring him anything positive and
it can make him sick.
I know it is easier said than done but if he gets sick, he will not only hurt himself but his
entire family as well. Aside from getting everybody worried, whatever income is left might have to be
spent on medicine. He should think positive and be happy that he has a daughter like you who is
responsible and trying to work out whatever is possible.
Apparently, your father’s employer is denying that he is their company employee and making
the main issue as whether he is indeed a company employee or not. But for Social Security System or
SSS, your father could have been enrolled either way. I am not a lawyer and you need to consult with
the SSS first and/or a lawyer. But before you do, it would be good to have the following information
available first:
1) Does your father have a Social Security number? The website of SSS,
www.sss.gov.ph states “Securing an SS number does not automatically
mean a person is already covered as a member. One is considered a member when the employer has
reported one for SSS coverage by the employer and has paid at least one month contribution as an employee.
” But if your father has a SS number, he should try to remember how he got it. If the company
got it for him that would be a proof that he was a company employee.
2) It is not only SSS but also PAG-IBIG and Philhealth that he should have been enrolled in. Did they
make any deduction from his pay for any of these government contributions and taxes?
3) Does your father have some kind of payslip or any other document that proves that he was an employee?
This is something you must search for. Even a letter might help.
SSS defines an employer as “any person who uses the services of another person in business, trade,
industry or any undertaking.”
If your father has a Social Security number, this is what the SSS website says:
“What is the effect of non-reporting and non-remittance of contributions?
To the Employee
The employee is still entitled to SSS benefits even if the employer fails or refuses to remit the SSS
contributions.
To the Employer
An employer who does not report temporary or provisional employees is violating the SSS law. The employer
is liable to the employees and must:
1. pay the benefits of those who die, become disabled, get sick or reach retirement age;
2. pay all unpaid contributions plus a penalty of three percent per month; and
3. be held liable for a criminal offense punishable by fine and/or imprisonment.
Effectivity of Compulsary Coverage
For an employee - on the first day of his/her employment
For an employer - on the first day he/she hires employee/s
The employer is given only 30 days from the date of employment of employee to report
For all other readers, remember:
Each time you contribute to SSS, you are saving to prepare for your retirement plus SSS gives
salary, emergency, calamity loans and also housing and even business loans. It provides benefits
for sickness, maternity, disability, death, and funeral.
It is very important to get a certificate from your employer of all your contributions to SSS, PAG-IBIG,
and Philhealth. This is especially important when you resign from a company because you might not be able to
get it in the future when you need it. Each company should give you a certificate and you should keep those
certificates together with your most valuable documents.
In case you’re interested, here is our July seminar schedule:
1) PISOBILITIES: Managing Your Personal Finances (July 24 Sat, 2PM) Discover how to become wealthy.
2) Analyzing Stocks(July 30 Friday, 6:30PM) Equip yourself with important stock investing
skills.
Call (632) 6373731, 5779698, 6373741 or 5774590 for more information and to reserve your slot.
Mary Anne B. Colaco is a happy wife, fulfilled mother of three beautiful ladies, helpful mother-in-law of two handsome gentlemen, doting grandmother of two adorable girls and the diligent President of Colayco Foundation for Education (CFE). For over 40 years, Mabsi, short for MAB-C, was in executive-level finance-related positions, as well as general management positions in Ayala Corporation subsidiaries (then, Pure Foods and Globe Telecom among others) and also served as a Commissioner of the Energy Regulatory Commission.
She joins her husband, author-entrepreneur Francisco J. Colayco in their common advocacy of teaching financial literacy to income-earning Filipinos. Herword.com draws from Mabsi’s wealth of life experiences in giving advice on personal money management.
If you have any questions about personal finance, e-mail feedback@herword.com.
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