Social Insurance Contributions….


 The SSS is a social security insurance agency.

So is the GSIS.

These are supposed to accept cash contributions from people who are employed by witholding a portion of their wages. These contributions are channeled thru the employers who then remit these amounts the the secial security insurance outfits. There comes the problem when the employer fails to remit these contributions to the insurance outfit. The contributors will not be able to avail of the benefits from the insurance company.

It should be remembered that these social security insurance agencies are, by definition, insurance companies and as such will therefore invest the contributors’ money and thereafter return them in full at a predetermined time with interest. So the employer should pay interest for the time money is witheld.

If the employer fails to remit these contributions on time then they are breaking the law and are therefore liable for court action. If the employer happens to be a municipality or a city, then actions aginst this employer should be done thru the local government, specifically thru the Department of Local Government.

As of now, GSIS have no teeth to penalize erring local government entities but the DILG has. Offhand I would say, garnish some wages or wage portions of the employers/employees.***

I would blame also the GSIS for sitting on their haunches and waiting for things to happen by holding back its services to the public.

The GSIS should be able to communicate with the local government Treasurers, no? After all, it is the local government Treasurers that affect any transfer of money.

***pag hindi mabilis pa sa alas ocho after the garnishment

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