Sahdalá warns about the downward trend in the funds available in the health care account, which covers expenses related to the members’ subsidies
Avoidance and evasion represent serious challenges for the Dominican Social Security System (SDSS), affecting its sustainability and financial balance. Both are possible because they take advantage of the weakness of the law, regulations and resolutions.
Among the practices detected, there are companies that report lower wages those received by workers, which affects pensions, contributions to Family Health Insurance and the amount of subsidies to be received.
Another form of avoidance and evasion identified by the Social Security Treasury (TSS) is the use of the platform «Get formal» by registering multiple companies, thereby reducing the number of employees per payroll. This practice allows companies to be classified as small rather than large taxpayers, applying minimum wages for SMEs rather than those for large companies.
These data were offered by the treasurer of Social Security, Henry Sahdalá, who pointed out that the TSS has adopted various measures through the Single Information and Collection System (SUIR) and the External Inspection Directorate to identify irregular behavior by employers when registering workers.
Sahdalá emphasized that these actions are supported by Law 13-20, which modifies article 28 of Law 87-01, and which grants the TSS the function of “detecting late payment, evasion and avoidance, combining other sources of government and private information, prosecuting offenders and collecting fines and surcharges.”
Sahdalá also called attention to the downward trend in the funds available in the health care account, which covers the expenses related to the subsidies of members and their dependents. “A continued downward trend in available funds is a risk and a concern for all actors in the System.
If this fund decreases further and disappears, the solution would be an increase in contributions, which would affect the economy of employers and workers,” said the treasurer who participated in the panel “Current Situation of the Social Security System in the Dominican Republic,” organized by the Association of Industries of the country (AIRD).
He explained that before the pandemic this fund reached RD$8 billion and now it is at RD$2.3 billion.
