Some three thousand entities, both national and international, including municipalities and state institutions, have put into practice a type of fraud that threatens workers’ job security, health, and the future of some 200,000 jobs and which affects the social security system. The fraud works in several ways, according to El Caribe, and involves reporting a considerable percentage of the workforce as having been fired in order to avoid paying the 6% of their salaries that these workers make to the Social Security Treasury or the 14% that is made by the employers.
Some three or four months later the employees are reported as having been rehired as temporary workers with salaries below RD$1500, and then reporting that another group has been let go. Yet another method is to report employees with higher salaries as earning a much lower salary when the entity reports to the Social Security Treasury. Generally speaking, the employees do not know about these little tricks and only find out that something is wrong when the companies are careless with their deposits and the employees’ medical insurance is suspended. The companies make millions from these tricks.