Law Summary
Penalties for Failure or Refusal to Register and Deduct Contributions
- Employers or officers who fail or refuse to register or deduct premium contributions from employees' compensation face fines.
- Fine amount: Not less than Php5,000 multiplied by the total number of employees in the firm.
Penalties for Failure or Refusal to Remit Contributions
- Employers or officers who collect or deduct contributions but fail or refuse to remit them within 30 days from due date are subject to fines.
- Fine range: Php5,000 to Php10,000 multiplied by the total number of employees.
Scope and Application of the Circular
- Applies to claims paid by PhilHealth for employee-members and their dependents without corresponding qualifying contributions.
- PhilHealth can recover claim payments, unpaid premiums, plus applicable interests and penalties.
- Non-compliance permits PhilHealth to initiate legal actions against delinquent or non-complying employers.
Definitions of Employer Non-Compliance Categories
- Delinquent Employers: Missed payment of monthly contributions for at least one month within six months.
- Under-remitting Employers: Remit less than the prescribed premium or exclude some employees.
- Non-remitting Employers: No premium payments since start of operations, or for six months or more.
- Non-reporting Employers: Registered or unregistered employers who have not submitted reports for at least one month within six months, regardless of contribution remittance.
Legal Effectivity and Preservation of Prior Issuances
- Circular takes effect 15 days after publication in a newspaper of general circulation.
- The Circular is deposited with the National Administrative Register at the University of the Philippines Law Center.
- Previous issuances consistent with this Circular remain valid and enforceable.