Addressing Unauthorized Salary Deductions Affecting SSS Contributions in the Philippines
(A Comprehensive Legal Discussion)

I. Introduction

In the Philippines, private-sector employees are mandatorily covered by the Social Security System (SSS), a state-run program that provides protection against disability, sickness, old age, and other contingencies resulting in loss of income. Under the law, both employers and employees have a legal obligation to remit monthly contributions to the SSS. This article provides a comprehensive examination of the legal framework governing SSS contributions, focuses on the issue of unauthorized salary deductions affecting these contributions, and outlines the remedies available to employees whose rights have been violated.

II. Legal Foundations of SSS Coverage

The Social Security Act of 2018 (Republic Act No. 11199)
- This is the primary law that governs the Social Security System in the Philippines. RA 11199 replaced the previous Social Security Law (RA 1161, as amended by RA 8282).
- It establishes the legal basis for the mandatory coverage of all private-sector employees and outlines the respective obligations of the employer and the employee to pay monthly SSS contributions.
Labor Code of the Philippines (Presidential Decree No. 442, as amended)
- Although the Labor Code does not directly set the rules for SSS contributions, it provides key provisions on the protection of wages and prohibited forms of deductions.
- Provisions on wages, such as Articles 113–116, regulate salary deductions and safeguard workers’ rights to receive their lawful compensation in full, except for deductions authorized by law or valid written agreements.
Implementing Rules and Regulations (IRR) of the SSS
- The Social Security Commission (SSC) issues rules and regulations that further implement RA 11199. These rules expand on employer responsibilities, contribution schedules, and enforcement mechanisms.

III. Employer and Employee Obligations on Contributions

Shared Contribution Scheme
- The SSS contribution is shared by both employer and employee. The employee’s share is deducted from the employee’s wage, and the employer has a corresponding share that cannot be passed on to the employee.
- The employer is responsible for withholding the employee’s share from the salary each pay period and adding the employer’s share before remitting the total amount to the SSS.
Timely and Accurate Remittance
- Employers must remit contributions on or before the due date specified by the SSS. Late or non-remittance may result in the imposition of penalties, interests, and even criminal liability.
- Employers are required to keep accurate records of contributions and to report newly hired employees promptly to the SSS.
Proof of Compliance
- Periodic submission of contribution lists or employment reports to the SSS is mandatory.
- Employees have the right to access their SSS contribution records (through online SSS portals or by requesting a summary) to verify that their contributions have been correctly and consistently remitted.

IV. Unauthorized Salary Deductions: What They Are and Why They Are Prohibited

Definition and Context
- Unauthorized salary deductions refer to any form of deduction from an employee’s wages that is not allowed by law, by a valid written agreement, or by certain statutory obligations (e.g., taxes, PhilHealth, Pag-IBIG, and the employee’s share of SSS contributions).
- With respect to SSS, an unauthorized deduction arises when an employer:
  - Deducts more than the prescribed employee share;
  - Deducts but fails to remit the amount to the SSS;
  - Deducts the employer’s share (i.e., shifting the employer’s obligation entirely to the employee); or
  - Deducts for SSS without being duly reported or accounted for in official pay records.
Relevant Labor Code Provisions
- Article 113 (Prohibition against wage deduction): No employer shall make any deduction from the wages of an employee, except in certain cases where the deduction is:
  - Authorized by law (e.g., employee’s share in SSS, PhilHealth, Pag-IBIG, and withholding tax);
  - Stipulated in a valid collective bargaining agreement or other written agreement;
  - Necessary because of insurance premiums (where the employee has given written consent).
- Article 114 to 116 outline additional rules regulating wage deductions to ensure that the employee’s compensation is protected.
Consequences of Unauthorized Deductions
- Financial Harm to the Employee: The employee may suffer reduced net income without legal basis, or lose valid SSS coverage in the event that the employer fails to remit deducted amounts.
- Potential Loss of SSS Benefits: If the SSS records reflect non-remittance of what was deducted, the employee could be ineligible or face difficulties claiming benefits such as sickness, maternity, unemployment, disability, retirement, or death benefits.

V. Penalties and Liabilities for Non-Compliance

Administrative Penalties
- The SSS imposes penalties on delinquent employers for non-remittance or late remittance of contributions. Interest and surcharges may accrue on unpaid SSS contributions.
- The Social Security Commission has quasi-judicial powers to enforce compliance, and it can issue warrants of distraint, levy, or garnishment against employers who fail to comply.
Criminal Liabilities
- Under Section 28 of RA 11199, any employer who fails or refuses to register employees, deduct contributions, or remit the same to the SSS may face fines or imprisonment, depending on the gravity and frequency of the offense.
- Officers or authorized representatives of corporations or partnerships may be held personally liable if it is shown that they knowingly or willingly participated in or consented to the violation.
Civil Liabilities
- Employers found liable for unauthorized deductions that deprive the employee of correct wages or SSS benefits may be held responsible for the payment of the unremitted contributions plus potential damages.
- The employee can recover any wrongfully deducted amounts through labor claims filed before the National Labor Relations Commission (NLRC) or through complaints lodged with the Department of Labor and Employment (DOLE).

VI. Remedies and Recourse for Employees

Internal Remedies
- Verification of SSS Contributions: Employees should regularly check their SSS contribution records (through their My.SSS account or by visiting an SSS branch).
- Informal Resolution: The employee may first raise the issue with the employer’s payroll or human resources department to clarify any discrepancies.
Filing a Complaint with the SSS
- If discrepancies remain unresolved, employees can file a formal complaint at the SSS.
- The SSS, through its enforcement arm, can conduct an investigation and order the employer to settle arrears, pay penalties, or cease and desist from unauthorized deductions.
Filing a Complaint with the Department of Labor and Employment (DOLE)
- If unauthorized deductions have caused underpayment of wages or other labor standard violations, the employee can lodge a complaint with the DOLE regional office.
- DOLE can inspect employer records, impose administrative fines, or direct the employer to pay restitution.
National Labor Relations Commission (NLRC) Case
- Should an employee decide to claim back wages, damages, or other monetary relief, they may file a labor case before the NLRC.
- The NLRC can issue an award ordering the employer to reimburse illegally deducted amounts and/or damages, including moral and exemplary damages if there is bad faith.
Criminal Action
- In extreme cases where the employer habitually or fraudulently fails to remit SSS contributions, employees (and the SSS) may pursue criminal action under RA 11199.
- Conviction may result in fines or imprisonment for responsible officers and representatives.

VII. Practical Tips for Employers and Employees

For Employers
- Maintain clear, accurate payroll records and proof of timely remittance (e.g., receipts, bank confirmations, SSS online payment records).
- Refrain from deducting more than the legally mandated employee share for SSS contributions. The employer’s share is not chargeable to the employee.
- Conduct regular internal audits to ensure compliance with the latest SSS contribution tables and deadlines.
For Employees
- Regularly monitor your SSS contribution records using the My.SSS portal. Promptly report discrepancies to your employer and the SSS if irregularities remain unresolved.
- Keep copies of your pay slips and any documents showing wage deductions to validate claims in case of disputes.
- When suspecting unauthorized deductions, approach HR or payroll personnel to seek clarification. If still unresolved, file a complaint with SSS or DOLE.

VIII. Conclusion

Unauthorized salary deductions that affect SSS contributions are not only detrimental to employees’ financial welfare but also undermine their entitlement to social security benefits. Philippine laws—specifically, the Social Security Act of 2018 and the Labor Code—clearly mandate proper withholding, remittance, and employer-employee cost sharing for SSS contributions. Employers who violate these mandates risk administrative sanctions, civil liability, and even criminal penalties. Employees, on the other hand, have various avenues of redress, from internal negotiations to formal complaints before the SSS, DOLE, or the NLRC.

Ultimately, knowledge and vigilance are key. Employers must uphold fair and legal payroll practices, while employees should consistently monitor their contribution records and take timely steps to assert their rights. Through strict compliance and proactive enforcement, unauthorized salary deductions can be minimized, thereby preserving the integrity of the SSS program and safeguarding the welfare of Filipino workers.