Employer fails to pay SSS and Philhealth - Philippines

Question: Is it illegal if my employer fails to pay my SSS and Philhealth contributions?

Answer:

Yes, failure by an employer to remit Social Security System (SSS) and Philippine Health Insurance Corporation (Philhealth) contributions on behalf of their employees is considered illegal under Philippine law. Here are some points to consider on this topic:

What Laws Govern These Contributions?

• For SSS: Republic Act No. 8282, otherwise known as the Social Security Act of 1997.
• For Philhealth: Republic Act No. 11223, otherwise known as the Universal Health Care Act.

Is It Mandatory for Employers to Make Contributions?

Yes, it's mandatory for employers to deduct and remit these contributions from their employees' salaries.

What Penalties Can Employers Face for Non-compliance?

• For SSS: Employers may face penalties ranging from monetary fines to imprisonment.
• For Philhealth: Failure to remit contributions is punishable by a fine and/or imprisonment.

What Should I Do if My Employer Isn't Paying?

1. Immediate Action: Talk to your Human Resources department to clarify the issue.
2. Document Evidence: Keep your payslips and any communication with your employer.
3. Report to Agencies: File a complaint with the SSS or Philhealth.
4. Legal Recourse: If no action is taken, consult a lawyer to explore your legal options.

Can I Claim Benefits if Contributions Aren't Paid?

No, you may be ineligible for benefits like loans, medical reimbursements, etc., if contributions haven't been remitted on time.

Will I Be Liable for Unpaid Contributions?

Generally, the employer is solely responsible for remitting the contributions, but not doing so could affect your eligibility for specific benefits.

Conclusion

Failure to remit SSS and Philhealth contributions is illegal and could subject your employer to penalties. As an employee, it's crucial to regularly check that these contributions are being made and to take action if you discover inconsistencies. If your employer fails to comply, you have various avenues for reporting and legal recourse.