Several days ago, some small business operators (shop owners) claimed in a newspaper that they knew a shop owner who “faked to be an employee and had his friend paying the social security contributions for him, or the two of them exchanged their identities to pay the contributions for each other”. The Social Security Fund (FSS) said that anyone fabricating labour relations would incur legal responsibilities. If such cases are found, they will be transferred to the competent authorities for investigation and follow-up.

The shop owners mentioned in the newspaper that throughout the years, they had been complying strictly with the provisions of the Social Security System (the System) and had not paid for any social security contributions, because according to the regulations, “shop owners and their spouses are not allowed to pay the contributions”. But then later, they found out that another “shop owner and his spouse” at the age of 60 or 65 years old were then receiving payments from the FSS, so they hoped that the department concerned “would give the law-abiding citizens a proper answer”. The FSS said that it is mentioned in the Social Security System and Labour Relations Law that employers of individual enterprises are not allowed to pay the obligatory system contributions, as employees of the enterprises they own, for themselves, their spouses, or family members of the second degree of kinship (parents, children, sons-in-law, daughters-in-law, siblings, etc.) who live and share meals together with them. However, if the above-mentioned persons are employees of another enterprise, then their employers are responsible for paying the obligatory system contributions for them. On the other hand, before the entry into force of the new System, the above-mentioned persons can pay contributions as self-employed workers if they are engaged in the self-employed industries referred to in Executive Order No. 234/2004. After the entry into force of the new Law, those who are not hired by other enterprises but wish to pay contributions to the FSS, they can apply to make arbitrary system contributions. Both situations do not contradict each other.

However, in cases specified in opinions above, the person concerned who “faked to be an employee and had his friend paying the social security contributions for him, or the two of them exchanged their identities to pay the contributions for each other through illegal acts” has already committed an offense and he will be legally liable for it. When fabricating labour relations and acts of improper contributions are found, such cases will be transferred to the competent authority for investigation.

For more information about the System, members of the public can call 2853 2850 during office hours or visit the FSS website at www.fss.gov.mo.