SSS Unable to Collect ₱89B in Contributions in 2023 – COA

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THE Social Security System (SSS) managed to collect only 4.89 percent, or ₱4.581 billion, of the ₱93.747 billion total established contributions from delinquent employers in 2023, according to a report by the Commission on Audit (COA).

Released last month, the 2023 COA audit flagged SSS for its failure to collect a significant portion of contributions, totaling ₱89.166 billion, from 420,767 delinquent employers, including both regular/business employers (ERs) and household employers (HRs).

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COA cited the “inefficiency in collecting premium contributions from delinquent employers,” despite the availability of an installment payment scheme, which it said has deprived the SSS of essential funds needed to deliver timely social security benefits and claims to its members and beneficiaries.

The report highlighted that of the 420,767 delinquent employers, 349,189 active ERs, who owed ₱63.296 billion or 70.98 percent of the total amount, did not utilize the SSS installment plan for settling their overdue accounts.

“Remarkably, only 103 active ERs, with delinquent accounts totaling ₱95.308 million, representing just 0.11 percent of the total collectibles, availed themselves of the installment plan,” the COA report stated.

Additionally, the remaining 70,975 ERs—classified as either inactive, under temporary suspension or with closed/dormant accounts—accounted for ₱25.774 billion or 28.91 percent of the net collectibles.

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COA noted that the SSS’s collection inefficiency could point to “leniency in the collection efforts” by certain branches or divisions of the agency.

In response, SSS stated that its Accounts Management Group (AMG)-Large Accounts Division (LAD) will intensify efforts to monitor and review delinquent accounts, ramp up collection activities, and promote the ongoing Contribution Penalty Condonation and Restructuring Programs (CPCoDe MRP) for business employers and CPCR-P for household employers.

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