Dear Attorney,
I have a concern regarding my missed contribution for a social security payment. I intended to pay my dues for a past month but missed the deadline. Can I still settle my payment now, or are there legal consequences for this?
I would appreciate your legal guidance on how to proceed and any penalties or remedies available for late contributions.
Thank you for your advice.
Sincerely,
A concerned contributor
Insights
In the Philippines, contributions to social security systems such as the Social Security System (SSS) and Pag-IBIG are mandatory for both employees and employers. Failure to make timely contributions can result in penalties, surcharges, and interest.
Under Philippine law, especially in the context of the SSS, the Social Security Act of 2018 (Republic Act No. 11199) governs the rules surrounding contributions and the consequences of missed payments. Specifically, if contributions are not remitted on time, the SSS imposes a 2% per month penalty on the amount due until it is fully paid. The same principle applies to Pag-IBIG contributions, where penalties can be imposed on late or missed payments.
However, the law also allows for the payment of missed contributions. If the person is a self-employed individual, a voluntary member, or an Overseas Filipino Worker (OFW), they are given the flexibility to pay past due contributions. They can settle payments retroactively, but with applicable penalties. Employees typically cannot pay for missed contributions directly as it is the employer's responsibility to remit these payments. In such cases, employees can file a complaint with the SSS or Pag-IBIG if employers fail to fulfill their obligations.
It is essential to settle late contributions as soon as possible to avoid further legal complications, particularly in cases where contribution records might affect eligibility for future benefits like sickness, maternity, retirement, or death benefits. Seeking the guidance of a legal professional is recommended to determine the best course of action based on the individual circumstances, especially in cases involving disputes with employers regarding unpaid contributions.