Simplified Query: Is it lawful for an employer in the Philippines not to deduct SSS contributions from an employee's salary?
In the Philippines, the Social Security System (SSS) is a state-run, social insurance program aimed at providing workers with protection against the hazards of disability, sickness, maternity, old age, death, and other such eventualities. According to Philippine law, specifically the Social Security Act of 2018, both employers and employees are required to contribute to the SSS.
Employers are mandated to deduct and remit SSS contributions from their employees' monthly salaries. This obligation extends to all employers, including private enterprises, and covers all employees not over the age of 60 who are earning at least ₱1,000 per month. The law specifies that the responsibility to make sure that these contributions are duly remitted to the SSS lies with the employer. Failing to comply with this requirement is considered a violation of the law and may subject the employer to penalties including fines and imprisonment.
The employer’s contribution to an employee’s SSS is also mandatory and is proportionate to the compensation of the employee. The total contribution is shared between the employer and the employee, with the employer generally shouldering a larger percentage. The current rates and amounts can be found on the official SSS website or by contacting an SSS office.
If an employer fails to deduct the SSS contributions from the employees’ salaries or does not remit these contributions to the SSS, employees may report this to the nearest SSS branch. The SSS has mechanisms in place to handle complaints and to conduct investigations into non-compliance. Additionally, employees are protected from retaliation by employers for reporting such violations.
In conclusion, it is not lawful for employers in the Philippines to neglect the deduction of SSS contributions from their employees’ salaries. This practice is in clear violation of the Social Security Act, which mandates that both employer and employee contributions be duly collected and remitted to the SSS. Employees affected by such violations have the right to seek recourse through the SSS to ensure their social security protections are adequately met.