Employers to pay entire SSS premiums for help earning less than P5,000



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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  • http://pulse.yahoo.com/_GURBWYA3AIXC22EF6E6HIHRNQE Ornbort Vortingeresdemesus

    which is why you will see the proliferation of outsourcing cleaning services rather than stay-ins. (good idea for entrepreneurs!)

  • William Dave

    fuark! we could barely afford a help and now we have to pay their freakin’ premiums?

    • mamamia

      These helpers with you 24/7 and your complaining paying +/- $10 for them every month? you that cheap?

    • http://pulse.yahoo.com/_GURBWYA3AIXC22EF6E6HIHRNQE Ornbort Vortingeresdemesus

      boy are you spoiled. learn to do your own chores Mr. Legree…

  • WeAry_Bat

    I seem to have the impression SSS is handled quite well nowadays…Not a problem to payout the entire P520 since the agency doesn’t seem corrupt like the old days.

    • parefrank

      In the old days, the premiums have been much lower, too.

    • IbigMongSabihin

      hate to say this but “tangengot” ang dating mo considering na this highly questionable law is not a reflection kung ok o hindi ang current administration ng SSS. either yours is an idle brain or you are blindly drumbeating for SSS or for any faulty policy of the administration.

      • WeAry_Bat

        i hate to say this also but you have no place in a good discussion…kahit anong sabihin mo pre, kung pati mga katulong ay pagpapakuripot eh dapat lang na ikaw na maglaba, magplantsa, magluto at iba pa. pweh ka.

      • http://pulse.yahoo.com/_GURBWYA3AIXC22EF6E6HIHRNQE Ornbort Vortingeresdemesus

        oo nga..bakit hindi? isang katutak mga laundry jan kung busy ka. wash your own dishes or use paper plates and plastic holders and disposable chopsticks. LEARN TO BE CREATIVE. then when you have learned these values, you will progress in your business or job. THEN start a family. THEN hire a maid with fair wages. 

      • http://pulse.yahoo.com/_GURBWYA3AIXC22EF6E6HIHRNQE Ornbort Vortingeresdemesus

        problema sa atin, gusto kaagad may housekeeper at driver as if we are entitled to such automatically. who died and made you king?

  • http://profiles.yahoo.com/u/VBN5IUGKHSGIHDV5L6QVG2KBTI Leop233

     swerte ng mga katulong ngayon..libre food, libre kuryente, may sss pa .

  • http://pulse.yahoo.com/_BL2GYU35SO6HTJUEAUTXS3QFYM George Lapulapu

    mabuhay ang mga kasambahay!!!

  • boybakal

    Do these senators think we are like Singapore, Hongkong, Malaysia.
    Though it would be of help to katulong, pinalitan pa ng kasambahay but hard on average family.
    For sure senators can afford to pay, how about those part time help, are they covered too by this law.
    This is a barabara law. Bahala na.

    • http://pulse.yahoo.com/_GURBWYA3AIXC22EF6E6HIHRNQE Ornbort Vortingeresdemesus

      we are not like those countries because our culture is one of dependence, not self sufficiency. maids are a luxury. can you spell that word?

  • http://profile.yahoo.com/AND7MQ5FERICDOIAUW56RYT45A tower_of_power

    For couples working but barely making both ends meet kaya kaya nila eto? Our law makers think everybody is like them … can charge and only need to certify to liquidate …. hahahaha!!!

    • edmondP

       barely making both ends pero kaya kumuha ng katulong. utot mo.

      • boybakal

         Tunggak, tatlo singko ang katulong.
        Awa na lang kaya kinukuhang katulong.

    • http://pulse.yahoo.com/_GURBWYA3AIXC22EF6E6HIHRNQE Ornbort Vortingeresdemesus

      save money, buy a washing machine…start selling dishwashers here in the philippines…

      • http://pulse.yahoo.com/_GURBWYA3AIXC22EF6E6HIHRNQE Ornbort Vortingeresdemesus

        and learn to eat fruit and raw veggies. you’ll be a better person, and they don’t need cooking.

  • opinyonlangpo

    It is a big burden for the employers. A year after the house help left and still the SSS will be imposing the fine if they forget to do all the necessary paper works. Many house helps also just disappear, its additional burden processing the SSS papers.

  • boybakal

    This is a stupid law.
    This law should apply only to senators, who can afford to pay the katulong and SSS.
    Why make the Houseowner an employer. They are not corporations for profit.
    Contributions should be voluntary not mandatory.
    Katulong are tatlo singko sa Pilipinas. Katulongs are hired out of pity to give them shelter and food.
    Ano ang akala nitong mga senador…Singapore at Hongkong ang Pilipinas.


    A married couple termed as husband and wife being naturally man and woman is working as ordinary employee who can hardly meet both ends meet had hired a househelp in fear that the house may be burned by fire playing children left alone. Since no househelp will last long out of low salary and daily galungong dish for the entire household. The couple came up with an idea to be lenient to the hired househelp through assiting in household choire and let the househelp have enough free time to attend school for education into better future. The scheme works well for both the househelper and poor couple forced to leave the house at 7:00 am sharp and can go back home only at 5:00 pm. The couple must endure all these in order to feed a family and can employ a househelper. If the one of the couple will stop working then their children will turn into skeleton like malnourish creature because the husband salary alone can hardly buy a galungong dish but then the need for househelp will not be required anymore such that the househelper will become malnourish also for being out of work too. This incident is unavoidable because the govt. had crafted an idea that a couple who hired a househelp MUST PAY the SSS Too or else the hard up couple will thrown to jail. Nobody will really be benefited by this SSS for househelper because no househelp will ever be househelp untill retirement. Only the SSS collection will reap the utmost benefit, THIEVES …. THIEVES …. PH government had become thief to the bones and corrupt since the Abnoy was in power. The PH government is now > Brainless Donkey for a pervert is king.

    • http://pulse.yahoo.com/_GURBWYA3AIXC22EF6E6HIHRNQE Ornbort Vortingeresdemesus

      why start a family if you can’t afford it? isn’t that called stupidity? especially projecting that you will rely on a full time maid for your household requirements? i would rather have brainless than lazy. idiot.

  • boybakal

    This is really a stupid stupid law.
    Even in the US, househelps are not considered employees of the House owners.
    They are called…self employed or doing odd jobs.
    These househelp pay their taxes voluntarily if they are issued 1099.

    No studies, no nothing…these senators are good for nothing.
    As usual, pahirap sa mahirap.

  • parefrank

    The real result will be that a lot of helpers in private households will lose their job. There are so many households which have a helper because there are small kids or old people but both parents have to work. They can not afford such high salaries and other additional duties for the helper. And SSS is permanent increasing its premiums. We know very many employers and helpers but no one who pays or earns 5000 a month. The more as household helpers usually are stay-in who live and eat at the expense of the employer.
    We have helpers who stay and eat with us like family members, all their daily needs from shampoo to napkins and working cloths are given and we pay even their medicines. They have the same food and eat more snacks than we. These expenses are much higher than the salary itself and often higher than our personal own.
    But if there are more and more burden added, we could terminate them and hire helpers who are just working from morning to evening and stay at home. We can increase the real salary but do not have all the other expenses anymore. But our helpers will probably not have 3 meals nd 3 snacks unlimited anymore like now, and they do not eat dried fish and rice, they eat pork, chicken and fresh fish 3 times a day.
    Employers who have a business can easy add these SSS to their prices or hide it into tax deductable business expenses. And the law making politicians pay it easily from their cashgift bonanza, the tax money. But the majority of private employers have helpers not as a luxus or because they are too lazy to work themselves, they really have serious reasons but limited resources.
    Besides, this new law as well as the salary increase, declared in congress as its “Christmas gift” to helpers, are very visibly not more than election propaganda, a kind of vote buying at the expense of employers.

  • Bansot

    Be realistic Mr Quintos. The very reason why employers pay less than P5000 a month is because they can’t afford to pay more even if they want to, and they themselves are struggling to make both ends meet. If you implement your rules,most employers will go underground (won’t declare that they are hiring helpers, or stop hirng helpers altogether.) I don’t think your office would have the manpower to monitor your rules, and assuming that you do, your costs in hiring more inspectors will be higher than what additional contribution you can collect. Your boss might be impressed by your efforts and will probably give you  a higher performance bonus, but you will be adding more financial harships to ordinary wage earners as well as to those helpers who will  be unemployed.

    • IbigMongSabihin

      the Philippine government is currently populated by amateur agency heads without notable or established expertise in running organizations. most of them are ignorant on the procedural aspects of pros and cons, on evaluating alternatives and predicting consequences. they are not morons but their decision-making abilities are big question marks. aside from this Quiros, another good example is the current SC chief justice who practiced teaching and researching in all her career (read her resume) and it was her dog-like loyalty to Noynoy Aquino that made her an overnight sensational, amateur, ill-prepared, unqualified, youngest philippine chief justice ever. i mentioned Noynoy Aquno because, although it was a judicial body who selected the final 3 candidates for CJ, it was mainly the partisan votes of members of pro-aquino congress who made the final choice, of course in consultation with Noynoy Aquino. what a manipulative government! what an amateurish governance!

  • Abraham Ortiz

    Our government has not yet fulfilled its promised of increasing the pensioners pay of 5000 pesos and this came out?What a bullshit government we have or is it just a ploy to popularized P-noy more especially that he mentioned it on his SONA?This skim will make the prospective Senators to be and President to think twice again otherwise people will not vote any President or Senators in the next elections.I advised all the citizens of the Republic of the Philippines not to vote for this coming elections so that they know we’ve been hard up for a long time and that we have been taken for a ride by our government.I advised all the citizens of the Republic of the Philippines to asked for allowances and make it a law so that all the citizens of the Republic of the Philippines will not be poor!Come to think of it,our government is able to buy arms worth billions of dollars and yet can not be able to make their people happy in the form of allowance every month ?The lucky Senators received 1.6 millions from enreli but did not think of their own people when they received that lot,instead they fight because some did not received the same amount of money as that of the favored ones!We can not changed the mind of this government officials of ours(The President and Senators) but, we can fight back by not voting on this coming elections ,which by the way, will be mired by cheating again!No law for allowances for our people ,or no elections! Take your pick!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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