Dear Attorney,
I am a newly hired employee, and my employer has informed me that I will not receive my salary until I secure my Social Security System (SSS) and PhilHealth numbers. Is it legal for them to withhold my salary for this reason?
- New Employee Concerned About Benefits
Insights
Under Philippine labor laws, withholding a newly hired employee’s salary due to the absence of SSS or PhilHealth numbers is not permissible. All workers are entitled to receive their wages for work performed, regardless of their current status with these government agencies.
Employee's Right to Wages
Article 103 of the Labor Code of the Philippines stipulates that wages must be paid not less than once every two weeks or twice a month at intervals not exceeding sixteen days. Employers cannot delay salary payments because of incomplete government registrations such as SSS, PhilHealth, or Pag-IBIG. Once work is rendered, employees are legally entitled to receive their compensation without unnecessary delay.
SSS and PhilHealth Registration
While employers are responsible for ensuring that their employees are registered with SSS and PhilHealth, the process of acquiring these numbers cannot be a condition for receiving wages. The responsibility of facilitating compliance with statutory benefits falls on the employer. Newly hired employees must submit their information, and the employer must process the necessary documentation for SSS and PhilHealth contributions. However, non-compliance in securing these numbers does not excuse the employer from the obligation of paying salaries.
Employer's Legal Obligations
Employers must comply with Republic Act No. 8282 (Social Security Act of 1997) and Republic Act No. 7875 (National Health Insurance Act), which mandate that all employees, regardless of employment status, must be covered by SSS and PhilHealth from the time of their employment. Failure to remit contributions, while a violation, should not result in the employee losing their right to wages for services rendered.
Employers must also ensure compliance with all necessary deductions from an employee’s salary for statutory contributions, but this does not affect the timely payment of wages.
Conclusion
Withholding an employee’s wages due to the absence of SSS and PhilHealth numbers is illegal under Philippine labor law. Employers are required to pay wages regardless of pending registration issues, and any concerns related to benefits and contributions should be addressed separately without penalizing employees financially.