SC strikes down ‘repugnant’ rule on mandatory SSS payments for OFWs

Overseas Filipino workers line up at a special lane at Ninoy Aquino International Airport. —MARIANNE BERMUDEZ

MANILA, Philippines — The Supreme Court (SC) has permanently stopped the mandatory advanced Social Security System (SSS) payments for Overseas Filipino Workers (OFWs) leaving the country.

In a 40-page ruling written by Associate Justice Maria Filomena Singh, the SC upheld the constitutionality of the provisions of Republic Act No. 11199 or the Social Security Act of 2018 and its implementing rules and regulations except for a provision that imposes mandatory advanced SSS payments for land-based OFWs leaving the country.

The SC bars the SSS, the Philippine Overseas Employment Administration, and the Department of Labor and Employment (DOLE) from implementing Rule 14, Section 7 (iii) of the IRR of R.A. 11199 for violating the property rights and the right to travel as enshrined in the 1987 Constitution.

Rule 14, Section 7 (iii) specifically states: “For land-based OFWs in countries without any SSA or BLA (bilateral social security and labor agreements) with the Republic of the Philippines, the measures for enforcement of compulsory coverage shall include, among others, the collection of contribution payments by the Philippine Overseas Employment  Administration (POEA) and/or the concerned DOLE (Department of Labor and Employment) agencies, through its applicable documentation and deployment process such as the issuance of Overseas Employment Certificate (OEC).”

“Furthermore, to enforce compulsory coverage of land-based OFWs through the issuance of OECs is unduly oppressive, unreasonable, and repugnant to the Constitution,” the Court said.

The SC said such a provision undermines the Constitution’s mandate to protect the rights of overseas workers and promote their welfare.

“Yet, this provision places an undue burden on the land-based OFWs by imposing as condition to the issuance of their OEC the payment of the employer’s contribution, an onus not place on any other class of employee under the SSS coverage,” the SC added.

The SC also said that Filipinos who have not even left the country to start working abroad cannot be required to pay in advance their supposed SSS contributions because technically, they are not OFWs yet.

“This situation places undue burden on our OFWs, who often resort to borrowing money to cover costly deployment expenses. The Court is reminded of the hardships and sacrifices faced by our OFWs,” it added.

The SC issued the ruling following the petition filed by Migrante International and party-list groups Bayan Muna, Gabriela, ACT-Teachers, and Kabataan.

In their petition, the petitioners sought the nullification of subsections (a), ( c), and ( e) of Section 9-B of R.A. 11199 and Rule 14, Sections 1, 5, 5.a, 5.b, 6, 7 (iii) and 7 (iv) of the law’s IRR  for violating the equal protection clause, being an unjust deprivation of property, violating the right to travel as guaranteed under the Constitution, and being oppressive.

Section 9-B  (a) of R.A. imposes compulsory SSS coverage for all sea-based and land-based OFWs.

Section 9-B ( c) provides that “land-based OFWs are compulsory members of the SSS and considered in the same manner as self-employed persons.”

Section 9-B ( e), on the other hand, directs the Department of Foreign Affairs, the DOLE, and the SSS to ensure compulsory coverage of OFWs through bilateral social security and labor agreements and other measures for enforcement.

The SC, however, said subsections (a), ( c), and ( e) of Section 9-B of R.A. 11199 and Rule 14, Sections 1, 5, 5.a, 5.b, 6, and 7 (iv) of the law’s IRR  are constitutional.

“The constitutionality of assailed provisions of Republic Act No. 11199 and the remaining assailed provisions of the Implementing Rules and Regulations of R.A. 11199 are upheld,” the SC said.

“Pursuant to Rule 50, Section 1 of the Implementing Rules and Regulations of Republic Act No. 11199, these provisions remain in force and effect,” it added.

In a statement,  Migrante International declared the SC ruling as “a win for OFWs.”

“This successful decision from the Supreme Court is a result of the collective action of our fellow migrants against state extortion,” said Josie Pingkihan, deputy secretary-general of Migrante International.

Migrante International, however, stressed that the fight against OFW state exactions is not yet over.

The Philippine government under President Ferdinand Marcos Jr. continues to collect mandatory SSS contributions from land-based OFWs at an increased 15 percent rate this year, on top of other mandatory fees charged to OFWs such as Philhealth, Insurance, and Overseas Workers Welfare Administration membership.