- Category: Economy
03 Feb 2013
- Written by Zaff Solmerin / Correspondent
The Social Security System (SSS) is confident of higher collection this year and the succeeding years from monthly contributions of househelp with the recent signing of the Kasambahay law.
As of October 2012, househelps contributions amounted to P189 million. The SSS data shows 95,860 domestic helps are members as of December 2012.
“This new Kasambahay law has more teeth in terms of enforcing compliance and punishing non-compliance. More important, househelp are given wider social protection through their mandatory membership and contributions in PhilHealth and Pag-IBIG, aside from SSS,” said SSS President and Chief Executive Officer Emilio de Quiros Jr. in a statement posted in the agency’s web site over the weekend.
On January 18, President Aquino signed Republic Act 10361, or “An Act Instituting Policies for the Protection and Welfare of Domestic Workers.”
Under current SSS guidelines, part of the monthly contribution is deducted from the helper’s salary, calculated from 10.4 percent of his or her gross income, with the employer paying 7.07 percent and the employee paying 3.33 percent.
Under the new law, domestic helps earning a monthly salary of P5,000 or less are exempt from the mandatory SSS deduction from their salary; the employer must bear the total cost of the contributions themselves.
Non-compliance to the provisions of the law, said de Quiros, carries a penalty of P10,000 to P40,000, much higher than the current fine of P5,000 to P20,000.
“So hopefully, household employers will be further deterred from not obeying the law,” Quiros said.