Dear Attorney,

I have recently employed one person in my fitness gym business. Am I required to pay Social Security System (SSS) contributions for this employee?

Thank you,
A Small Business Owner

Insights

In the Philippines, all employers, regardless of the number of employees, are mandated by law to remit Social Security System (SSS) contributions for their employees. This requirement is stipulated under Republic Act No. 11199, also known as the Social Security Act of 2018.

Employer’s Obligations

As an employer, you are required to register with the SSS and secure an employer number. Once registered, you must deduct the employee's share of the contribution from their salary and remit both the employee's and the employer’s share to the SSS on or before the designated deadlines.

Coverage and Mandatory Contributions

The SSS system covers all private sector workers, and the law explicitly mandates that employers, regardless of their size or nature of business, must comply with this contribution scheme. This includes employers with just one employee. Failure to remit SSS contributions is a violation of the law and may result in penalties, surcharges, or even legal actions against the employer.

Penalties for Non-Compliance

Non-compliance with the payment of SSS contributions exposes employers to administrative fines and other legal liabilities. Employers may also be subject to criminal charges, especially in cases where an employee’s benefits are affected due to non-payment.

Conclusion

To ensure compliance with the law and to protect both the employee and employer from future liabilities, it is crucial to regularly remit the appropriate SSS contributions. It is advisable to consult with an SSS-accredited partner or an attorney specializing in labor law for guidance on the registration process and contribution schedules.