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Social Security fraud schemes sweep the country

Santo Domingo.- As many as 3,000 local and foreign companies, including city councils and government agencies, commit some form of fraud which threatens the job security, health and future of more than 200,000 employees and jeopardizes the social security system (SDSS).

Among the various schemes figure reporting a significant percentage of workers as being laid off, to dodge paying the 6% of their salaries as social security contributions and the 14% that employers should, for an evasion of 20%.

After three or four months those workers are reported as restored in temporary status, with salaries less than RD$1,500, then report another group as laid off.

Employees also report salaries above the minimum as lower, to the Social Security Treasury, but continue to deduct the quota according to their income.

Employees aren’t usually aware of the schemes and continue receiving their salaries normally, and realize that something is wrong only when companies neglect to deposit funds for three months and services such as health insurance are suspended.

Millions pocketed

Companies pocket millions of pesos through the schemes. In one case cited by elcaribe.com.do, a company with 2,000 workers report laying of 30% of them, around 600, evaded paying the SDSS around  20% of those salaries, and if were the minimum wage of RD$9,900, totals an evasion of RD$1.2 million monthly.

Source: DT

Category: DR News |

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Last updated December 2, 2016 at 1:59 PM
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