Dear Attorney,
I am currently working as a contractual employee for more than two decades. I would like to know if I am entitled to receive benefits like SSS and Pag-IBIG despite my employment status as a contractual worker. I am hoping for your guidance regarding this matter. Thank you.
Insights
Under Philippine law, contractual employees are still entitled to mandatory government benefits, including Social Security System (SSS), Pag-IBIG Fund, and Philippine Health Insurance Corporation (PhilHealth) contributions. These benefits are required for all employees regardless of their employment status, whether they are regular, contractual, casual, or project-based.
SSS, Pag-IBIG, and PhilHealth Benefits for Contractual Employees
Social Security System (SSS):
According to the SSS Law (Republic Act No. 8282), all employers are mandated to report and remit monthly contributions for their employees to the SSS, regardless of the employee's nature of employment. This includes both regular and contractual workers. The employer is responsible for paying a portion of the contributions, while the employee shoulders the other part. Therefore, a contractual employee who has been working for many years must be covered under SSS, and contributions should have been made by the employer.
Pag-IBIG Fund (Home Development Mutual Fund):
Similarly, the Pag-IBIG Fund Law (Republic Act No. 9679) also mandates that all employees, regardless of their employment category, are entitled to Pag-IBIG benefits. Employers must deduct and remit contributions to the Pag-IBIG Fund on behalf of their employees. Pag-IBIG contributions help employees in housing loans, savings, and other benefits under the Pag-IBIG programs.
PhilHealth:
The National Health Insurance Act of 2013 (Republic Act No. 7875, as amended by Republic Act No. 10606) ensures that all employees, including contractual ones, are covered by PhilHealth. Contributions to PhilHealth are mandatory and must be shared between the employer and the employee.
Legal Remedies for Non-Compliance by Employers
If an employer fails to provide these benefits, contractual employees have the right to file complaints with the appropriate government agencies. For SSS, employees can contact the SSS office directly to verify contributions and lodge complaints if there are unpaid or missing remittances. The same applies to Pag-IBIG and PhilHealth. Non-compliance by employers can result in penalties, including fines and possible imprisonment for violations of labor laws.
In conclusion, contractual employees in the Philippines are entitled to receive these mandatory government benefits, and it is the responsibility of the employer to comply with the law. Should any employer fail to meet these obligations, legal avenues are available for the protection of the employees' rights.