Offenses and Penalties
Section 28 (a, b, c, d, e, g, h) of the Social Security Act;
Rule 46, Sections 1-7, 9-10 of the IRR of the Social Security Act
Offenses
• False Statement, Representation, Affidavit or Document
• Compensation Paid or Received
• Claim for Benefit Payable
• Application of Loan
• Fraudulent Acquisition or Receipt of Money or Check
• Obtain or Receive money or check not entitled to
• Intent to Defraud:
• Member
• Employer
• SSS
Offenses
• Unauthorized Purchase, Sale, Use, Transfer, Exchange or Pledge of
Stamps, Coupons, etc
• Section 23 – Method of Collection and Payment
• “Payment may be made in cash, checks, stamps, coupons, tickets, or other
reasonable devices that the Commission may adopt.”
• Fraudulent Alteration, Forgery, or Counterfeiting of Stamps, Coupons,
etc.
•
•
•
•
Creation of the alteration, forgery or counterfeit stamps, coupons, etc.
Use, Sale, or Lending of altered, forged, or counterfeit stamps, coupons, etc.
Possession of altered, forged, or counterfeit stamps, coupons, etc.
Creation, Use, Sale, or Possession of materials for manufacturing
Offenses
• Non-Compliance with Social Security Act, its IRR, and other
Regulations
• Failure or Refusal to Register Employees or Self-Employed
Individuals;
• Failure or Refusal to Deduct and Remit Contributions
Offenses
• Appropriation or Misappropriation of Funds or Properties of SSS
• SSS employee
• Personally appropriate or misappropriate
• Consent to the taking by another person
• Abandons or is Negligent and allows the taking by another person
• Misappropriation of Contributions or Loan Amortizations of
Employees
• Employer
• Failure to remit within 30 days from due
OFFENSE
PENALTY
RPC
Specific Penalty
False Statement, Representation, Affidavit or Document
Art. 172 Falsification
PC medium & maximum +
Fine <= Php5,000
SSS Employee – Appropriation or Misappropriation of Funds
or Properties of SSS
Art. 217 –
Malversation
Amount Involved
<=Php200
Penalty
PC med – max
Php200 – Php6K
PM min – med
Php6K – Php12K
PM max – RT min
> Php12K
RT med – max
Amount Involved
<=Php200
Penalty
AM max
Php200 – Php6K
AM max – PC min
Php6K – Php12K
PC min– med
Php12K – Php22K
PC max – PM min
+ 1 year per 10K
max penalty = 20 years
Employer – Misappropriation of Contributions or Loan
Amortizations of Employees
Art. 315 Estafa
OFFENSE
PENALTY
FINE
Fraudulent Acquisition or Receipt of Money or Check
Php5,000 – Php20,000
IMPRISONMENT
AND
6 years, 1 day – 12 years
Unauthorized Purchase, Sale, Use, Transfer, Exchange or Pledge of Php5,000 – Php20,000
Stamps, Coupons, etc.
OR
6 years, 1 day – 12 years
Fraudulent Alteration, Forgery, or Counterfeiting of Stamps,
Coupons, etc.
Php5,000 – Php20,000
OR
6 years, 1 day – 12 years
Non-Compliance with Social Security Act, its IRR, and other
Regulations
Php5,000 – Php20,000
OR
6 years, 1 day – 12 years
Failure or Refusal to Register Employees or Self-Employed
Individuals
Php5,000 – Php20,000
AND
6 years, 1 day – 12 years
Failure or Refusal to Deduct and Remit Contributions
Php5,000 – Php20,000
AND
6 years, 1 day – 12 years
Penal Liability
Section 28(f) of the Social Security Act;
Rule 46, Section 8 of the IRR of the Social Security Act
Liability of Managing Head, Directors, or
Partners
• Offense is committed by:
•
•
•
•
Association
Partnership
Corporation
Other Institution
• Case of sea-based OFWs
• Person Liable
• Managing Head
• Directors
• Partners
• Person Liable is one with:
• Direct control
• Management
• Direction
Of the Manning Agency
Navarra v. People
G.R. NO. 224943, March 20, 2017
• SSS filed complaint for non-remittance of contributions from 1995 to
2000 against Far East Network of Integrated Circuits Subcontractors
Corporation. RTC, affirmed by CA, convicted Navarra, as president, for
violating Sec. 22 (a) in relation to Sec. 28(h) and (f) of R.A. No. 8282,
imposing the penalty of imprisonment on him. Navarra assails the
imposition of the criminal charges against him.
• Prompt remittance of SSS contributions pursuant to Sec. 22 of the law
is MANDATORY. Failure to remit on the period required subjects the
employer to:
• Monetary Sanctions of 3% penalty per month (sec. 22)
• Criminal Prosecution (Sec. 28)
Ambassador Hotel v. SSS
G.R. No. 194137, June 21, 2017
• SSS filed a complaint against Ambassador Hotel and its officers for
non- remittance of SSS contributions and penalty liabilities.
• Could Yolanda be held criminally liable as President of the company
for non-payment of SSS contributions?
• Yes. Even when the employer is a corporation, it shall still be held
liable for the non-remittance of SSS contributions. It is, however, the
head, directors or officers that shall suffer the personal criminal
liability.
Criminal Action
Section 28(i) of the Social Security Act;
Rule 46, Sections 11-12 of the IRR of the Social Security Act
Institution of Criminal Action
• Instituted by
• SSS; or
• Employee affected or concerned
• Prescription of Action = 12 years from:
• Time of commission of offense; or
• Time of discovery
• Venue (Option of SSS)
• City or Municipality where SSS office is located; or
• Metro Manila