MAY 20, 2013

NR # 3109B

SSS coverage for workers in wellness spa, beauty salon, fitness gym sought
A lawmaker is determined to shepherd a measure mandating the compulsory inclusion of thousands of barbers, haircutters or hairstylists, manicurists or pedicurists, make-up artists or beauty professionals, masseuse, reflexologists or therapists and gym trainers, fitness instructors or dieticians in the coverage of the Social Security System (SSS). Rep. Raymond Democrito Mendoza (Party-list, TUCP) is hopeful that the proposal, which removes the workers in wellness spas, beauty salons and fitness gyms from the category of self-employed, will ultimately be enacted into law in the next Congress. The proposal is contained in House Bill 1558, which was authored by Mendoza. It is pending in the House Committee on Government Enterprises and Privatization. In pushing for the proposal, Mendoza noted the recent growth of wellness centers, which, more often than not, are an amalgamation of beauty and grooming salons, fitness gyms, spas and massage parlors and other interrelated services. The industry is the bread and butter of thousands of workers in wellness spas, beauty salons and fitness gyms. Most of these are experts in their individual fields who have undergone professional training. However, in most instances, the services of these persons are merely outsourced by the wellness centers. They are not employed but are treated as independent contractors, Mendoza said. Mendoza said these workers lease the facilities of the centers and bring their own set of clients. Their compensation or payment is based on a per head basis and they earn a commission or share in the payments due their clients. He added that they are not required to observe office hours or report to the company every day. They are not devoting their time exclusively for one company and are free to work on any other wellness facility, or engage in any other employment. One of the predicaments of these workers is their membership in the SSS. With the above-mentioned arrangement, they are considered as self-employed. Thus, they pay their entire SSS membership dues and there is no one to pay the heftier employer counterpart, Mendoza said. According to Mendoza, the vision of the measure is to compel owners of the wellness center, barbershop, salon, spa, massage parlor, fitness gym or any other similar entity to which they are affiliated or regularly report to render their services which are considered as their employer to deduct and withhold from the concerned persons average

monthly commissions, earnings, compensation or payment, his/her employees contribution, as well as pay for and remit the counterpart employers contribution. By doing this, these persons would be able to continue being an active SSS member and reap the benefits, while still working or upon their retirement, Mendoza stressed. The measure amends Section 9-A of Republic Act 1161, as amended, otherwise known as the Social Security Law, by compulsory including, irrespective of the contractual arrangement of their non-recognition as employees, or of the kind or source of the commissions, earnings, compensation or payment for their services, barbers, haircutters or hairstylists; manicurists or pedicurists; make-up artists; masseuse, reflexologists or therapists and gym trainers, fitness instructors or dieticians, and shall not be considered under the category of self-employed. The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. The social security of workers in the wellness centers, beauty and grooming salons, fitness gyms, spas and massage parlors, and other interrelated services should always be protected and promoted, Mendoza said. (30) lvc