Employer Non-Compliance with SSS, PhilHealth, Pag-IBIG, and BIR Obligations in the Philippines

Query: What can employees do if their employer is not paying SSS, PhilHealth, Pag-IBIG, and BIR contributions and is not providing payslip copies?

Legal Obligations of Employers

In the Philippines, employers are legally required to make regular contributions to the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Home Development Mutual Fund (Pag-IBIG) for their employees. Additionally, they must withhold and remit employees' income tax to the Bureau of Internal Revenue (BIR). Employers are also required to provide payslip copies to their employees for transparency.

Relevant Laws and Regulations

1. Social Security Act of 2018 (Republic Act No. 11199): Mandates employers to remit contributions to the SSS on behalf of their employees. Failure to do so can result in penalties and legal actions.

2. National Health Insurance Act of 2013 (Republic Act No. 7875 as amended by Republic Act No. 10606): Requires employers to enroll their employees in PhilHealth and remit the necessary contributions.

3. Home Development Mutual Fund Law of 2009 (Republic Act No. 9679): Obligates employers to register employees with the Pag-IBIG Fund and ensure contributions are made.

4. National Internal Revenue Code (NIRC) of 1997, as amended: Requires employers to withhold income taxes from employees’ salaries and remit them to the BIR.

5. Labor Code of the Philippines: Stipulates that employers must provide employees with a detailed payslip for each pay period.

Steps for Employees to Take

If an employer fails to comply with these obligations, employees have several avenues for recourse:

1. Report to the SSS, PhilHealth, and Pag-IBIG: Employees can directly report non-payment issues to these agencies. Each agency has mechanisms to address and resolve non-compliance, including penalties for delinquent employers.

2. File a Complaint with the Department of Labor and Employment (DOLE): Employees can file a complaint with DOLE for violations of labor standards, including non-provision of payslips and non-remittance of mandatory contributions.

3. Seek Assistance from the BIR: Employees can report non-remittance of taxes to the BIR, which can conduct audits and impose penalties on non-compliant employers.

4. Legal Action: Employees may consider seeking legal counsel to file a case against the employer for violating labor laws and failing to meet statutory obligations. This can include claims for unpaid contributions and damages.

Penalties for Non-Compliance

Employers who fail to comply with their obligations face various penalties:

1. SSS: Employers may be fined and face imprisonment for failure to remit contributions. The SSS can also impose penalties amounting to three percent per month of the unpaid contributions.

2. PhilHealth: Non-compliant employers may be fined and compelled to pay arrears with interest. Administrative and criminal charges can also be filed.

3. Pag-IBIG: Penalties include fines and imprisonment. The Pag-IBIG Fund can also impose penalties for late payments.

4. BIR: Employers who fail to remit taxes can face fines, imprisonment, and additional penalties such as surcharges and interest on unpaid taxes.

Conclusion

Employers in the Philippines are legally obligated to make contributions to SSS, PhilHealth, Pag-IBIG, and the BIR and to provide payslips to their employees. Non-compliance can result in severe penalties and legal action. Employees should report any violations to the relevant agencies and seek legal assistance to ensure their rights are protected and contributions are duly paid.