Unpaid SSS Contributions Philippines

Dear Attorney,

I recently discovered that for one year, my employer failed to remit my SSS contributions despite deducting them from my salary. I started working in 2018, but based on the records from SSS, my contributions only began in 2019. How can I take action to claim my unpaid SSS benefits?

Sincerely,
Concerned Employee

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Insights

In the Philippines, the obligation of employers to remit Social Security System (SSS) contributions for their employees is mandated under Republic Act No. 8282, or the Social Security Act of 1997. Employers are required to deduct the corresponding SSS contributions from the employees' salaries and remit these, along with their employer's share, to the SSS. Non-remittance or late remittance is a violation of the law and can lead to serious consequences for employers.

Employer’s Obligation to Remit Contributions

The employer has the responsibility to remit both their share and the employee’s share of SSS contributions. Failure to remit contributions results in penalties and possible civil or criminal liability. Employers found guilty of non-remittance may face fines and imprisonment, depending on the severity of the offense.

Steps to Take for Unpaid SSS Contributions

1. File a Complaint with the SSS
   An employee who discovers that their SSS contributions have not been properly remitted can file a complaint with the SSS. This is the first step in addressing the issue, as the SSS will launch an investigation into the employer’s compliance. If it is confirmed that contributions were not remitted, the SSS may impose penalties on the employer and ensure that the unpaid contributions are made.

2. Employer Penalties
   Under Section 28 of the Social Security Act, an employer who fails to remit contributions may be charged with criminal liability, punishable by a fine or imprisonment. The employer may also be required to pay a three percent (3%) penalty per month of delay for late remittances, and they will still need to pay the unremitted contributions.

3. Filing with the NLRC (National Labor Relations Commission)
   If the issue extends to labor disputes or the employee wishes to pursue further action, they can file a complaint with the NLRC. The Commission will handle cases related to benefits that form part of an employee’s compensation package.

4. Direct Payment Option
   If the employee discovers that the employer has failed to remit, they can also opt to make voluntary contributions for the period in question. This ensures that there are no gaps in their SSS contributions while the complaint is being processed.

Consequences for Employers

Employers who consistently fail to remit SSS contributions face severe consequences. Aside from fines and imprisonment, they risk damaging their reputation and relationships with their employees. SSS may also impose liens on an employer's properties to recover unpaid contributions.

Conclusion

In summary, employees have clear legal avenues to claim unpaid SSS contributions. Employers, on the other hand, must be aware of the serious repercussions of failing to meet their obligations under the Social Security Act of 1997. The SSS remains the first point of contact for employees looking to rectify unremitted contributions, but further legal action can be pursued if necessary.