Employers to pay entire SSS premiums for help earning less than P5,000
By Ronnel W. Domingo
Philippine Daily Inquirer
6:31 pm | Saturday, February 2nd, 2013
MANILA, Philippines—Employers who engage household helpers at less than
P5,000 a month should now shoulder fully their kasambahay's
contributions to the Social Security System.
Emilio S. de Quiros Jr., SSS president and chief executive, said in a
statement that the pension fund will soon issue new rules on employers'
responsibilities relating maids, family drivers, yayas, gardeners,
cooks, and laundry women.
The signing into law last Jan. 18 of Republic Act No. 10361, which lays
down policies for the protection and welfare of domestic workers,
prompts the issuance of the new SSS guidelines.
"As early as September 1993, the SSS had already made the registration
and coverage of househelpers mandatory," De Quiros said.
SSS data show that 95,860 of its members as of December 2012 were
domestic workers.
As of October last year, househelpers and their employers accounted for
contributions amounting to P189 million or 0.2 percent of total
collections at the time.
Under existing SSS guidelines, employers must register househelpers and
remit to SSS their monthly contributions, which is 10.4 percent of the
gross income. The employer is responsible for 7.07 percent while the
kasambahay covers the 3.33 percent. For example, if the help earns
P5,000 monthly, the monthly contribution is P520, of which the employer
pays P353.50 while the kasambahay pays P166.50
"We have made significant strides in fulfilling that mandate, but this
new Kasambahay Law has more 'teeth' in terms of enforcing compliance and
punishing non-compliance," De Quiros said.
"More importantly, househelpers are given wider social protection
through their mandatory membership and contributions in PhilHealth and
Pag-IBIG, aside from SSS," he added.
Under the new law, househelpers earning less than P5,000 a month are
exempted from paying social security premiums, which the household
employer alone must bear. Help earning more than P5,000 a month will
have to shell out 3.33 percent of the monthly premium with the employer
paying 7.07 percent as specified by the existing guildelines.
De Quiros noted that non-compliance with the provisions of the
Kasamabahay Law carries a fine of P10,000 at least and P40,000 at most.
"This is significantly higher than the current penalty imposed by SSS of
not less than P5,000 and not more than P20,000," the SSS chief said.
"Hopefully, household employers will be further deterred from not
obeying the law."
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