The Social Security Fund (FSS) reminds employers that they must pay obligatory system contributions for their employees punctually.  For overdue payment, a late payment interest will be charged and the employer can be liable to a financial penalty.  If the employee ceases employment, his/her employer must declare this to the FSS and ceases to pay contributions for him/her, otherwise, the inappropriate contribution payment may constitute a case of false labour relations.

Under the law, all employers who establish labour relations with others must go through the procedure of employer registration in the FSS within the contribution month that follows the commencement of such labour relations, in order to fulfil the obligation to pay contributions.  The contribution months are January, April, July and October.  The employers must pay contributions within the contribution months for their long-term employees hired in the preceding quarter; whereas the contributions for the casual workers are paid in the month that follows the employees’ working month.  For casual workers who work less than 15 days in that month, the amount of relevant contribution will be halved.

For overdue payment of contributions, the default contributions must be rectified within 60 days after the statutory payment period, with a late payment interest of 3% per month on the amount of overdue contributions.  Where a fraction of a month shall be counted as a full month; and the minimum charge for late payment interest is 50 patacas.  However, if the default contribution is not rectified after 60 days, a minimum financial penalty of 500 patacas up to half of the amount of contributions payable will be charged on top of the late payment interest.

On the other hand, the FSS reminds the employers that if their employee ceases employment, they must declare this to the FSS and cease to pay contributions for their terminated employee.  Since the declaration of employee being in service and the payment of contribution possess legal significance, therefore, the act of ongoing payment of contributions for the employee after he/she ceases employment may constitute a case of false labour relations.

Between July and December last year, the FSS had completed the verification and confirmed 45 cases of false labour relations.  With respect to suspected cases, the FSS will refer the case to the Labour Affairs Bureau for investigation and verification. If untruthful declaration is confirmed, the relevant inappropriate contribution will be cancelled.  In case such false labour relations involve the benefit payments to the beneficiaries, the FSS will also notify the beneficiaries to repay the benefits wrongly received by them.  For employers who are confirmed to have falsely declared labour relations, the FSS will notify the Human Resources Office to follow up the case if the employers have hired non-resident workers.  If the above case involves infractions, the case will be handed over to the judiciary authorities for investigation.

For more information about the Social Security System, members of the public can call 28532850 or visit the FSS website at www.fss.gov.mo.