Complaint Against an Agency for Unremitted SSS Contributions (Philippine Context)

This article explains—in practical, legal, and procedural terms—how to deal with a private “agency” (e.g., manpower, security, janitorial, BPO subcontractor, recruitment/placement firm, or other contractor acting as the employer-of-record) that withholds but fails to remit Social Security System (SSS) contributions in the Philippines. It covers your rights, the employer/agency’s duties, liabilities (including that of principals and corporate officers), remedies you can pursue, evidence to gather, and step-by-step filing options. It’s written for workers, HR/compliance officers, and counsel. (This is general information, not legal advice.)

1) Why this matters

SSS contributions are mandatory for covered employees. When an agency deducts your employee share from wages but doesn’t remit it—on time and in full—it risks:

Administrative collections and assessments
Penalties (commonly computed monthly) on unpaid amounts
Criminal prosecution for violations of the Social Security law
Solidary liability extending to principals in contracting arrangements and, in certain cases, to responsible corporate officers

Beyond sanctions, you can lose access to SSS benefits (or find them delayed) if your posted contributions are incomplete.

2) The legal backbone (plain-English)

Governing law: The Social Security Act (as amended, most recently by Republic Act No. 11199), its IRR, and SSS circulars.
Coverage: Private-sector employees (including those deployed by agencies), household workers (kasambahay), and overseas Filipino workers (OFWs) are generally covered; employers must register and remit.
Core employer/agency duties:
1. Register as employer and report all employees/agency hires to SSS.
2. Deduct the employee share and shoulder the employer share (you cannot charge the employer share to workers).
3. Remit both shares on or before the SSS due date (schedule depends on SSS rules).
4. Keep accurate payroll and contribution records and submit required reports.
Prohibited act: Withholding the employee’s share but not remitting (or remitting late/under-remitting).
Penalties and liability (high level):
- Administrative: Assessments, surcharges, and interest (commonly 2% per month or a rate fixed by law/SSS rules) until paid.
- Criminal: Fines and imprisonment can be imposed for violations; if the employer is a corporation/partnership, responsible officers (e.g., president, managing partner, treasurer) who authorized or tolerated the violation can be prosecuted.
- Solidary liability: In contracting/subcontracting, the principal can be solidarily liable with the agency for compliance with labor standards, which typically encompasses statutory contributions like SSS. Even if the agency is the direct employer, the principal can be made to answer, then seek reimbursement from the agency.

Note: Exact penalty amounts, due-date calendars, and procedural circulars change from time to time—always check the latest SSS issuance or consult counsel/SSS directly for precise figures.

3) What counts as “unremitted” (and red flags)

Unremitted: The agency deducted your SSS EE (employee) share and shouldered the ER (employer) share—but did not pay SSS for the covered month.
Under-remitted: Paid less than what should have been remitted based on your Monthly Salary Credit (MSC).
Late remittance: Paid after the SSS deadline (penalties accrue).
Red flags for workers:
- Your My.SSS contributions table shows “no posting” or “gaps,” even though your payslips show SSS deductions.
- HR/agency says “we’ll post it later” for months on end.
- You were denied or delayed for SSS benefits because of missing postings.

4) Who is the “employer” when there’s a client and an agency?

Agency as employer-of-record: In legitimate contracting, the agency is usually the direct employer and must remit SSS.
Principal (client): The end-user of your services. Under labor standards rules, the principal may be solidarily liable with the agency for violations (including statutory contributions), especially in labor-only contracting or when the contractor fails to comply.
Recruitment/placement of OFWs: Special rules apply; agencies and foreign principals can incur joint/solidary liability for statutory obligations connected to deployment.

5) What you (the worker) should do first

Gather evidence before filing a complaint:

SSS Contribution printout (from your My.SSS account) highlighting missing months.
Payslips showing SSS deductions for the same periods.
Employment proof: contract, ID, emails, time records, deployment orders, DTRs.
Any agency communication admitting deduction or promising remittance.
Co-worker statements (if multiple employees are affected).

Create a timeline (month-by-month) of: (a) dates worked, (b) MSC/wage, (c) SSS deductions in payslips, (d) SSS postings (or lack thereof).

6) Where and how to complain (paths you can take)

You can pursue one or several of these in parallel:

A) Social Security System (SSS) – Employer Delinquency/Violation

What to file: A written complaint with your evidence. Request assessment for unremitted contributions (both EE and ER shares), and enforcement.
What SSS can do:
- Issue demand/assessment for unpaid contributions, surcharges, and interest.
- Enforce collection (e.g., levy/garnishment) against the employer/agency.
- Refer for criminal prosecution of the employer and responsible officers.

Tip: If you urgently need a benefit (sickness, maternity, unemployment, disability, retirement) but postings are missing because the agency didn’t remit, file the benefit claim and alert SSS to the delinquency with your proof. SSS has mechanisms to process claims while pursuing the erring employer.

B) Department of Labor and Employment (DOLE) – SEnA / Inspection route

SEnA (Single Entry Approach): File a Request for Assistance (RFA) to trigger mediation with the agency (and principal, if involved). Ask for immediate remittance and proof of posting.
Labor inspection/compliance: DOLE can direct employers to comply with labor standards, often including statutory social contributions (SSS, PhilHealth, Pag-IBIG).

C) Criminal complaint (through SSS or prosecutor)

Basis: Violations of the Social Security Act (e.g., failure to remit withheld contributions).
Who may be charged: The employer (agency) and responsible officers who permitted the violation.

D) Civil action (less common for workers)

Typically, SSS—not individual employees—collects unpaid contributions. Workers may, however, claim damages or relief incidentally in some disputes (consult counsel for case-specific viability).

7) Liability of corporate officers and business closures

Officer liability: Presidents, treasurers, managing partners, and similar officers who consented to or tolerated nonremittance can be held personally liable criminally under the Social Security law.
If the agency closed or disappeared: SSS can still pursue collection from available assets and responsible officers; workers should still file the complaint with SSS and DOLE using their evidence.

8) Prescriptive periods (how long you have)

SSS benefit claims: Generally subject to prescriptive periods measured in years from the contingency (e.g., sickness, injury, retirement).
Collection of contributions: The SSS is typically allowed a long prescriptive window (often cited as up to 20 years) to enforce collection of delinquent contributions.
Criminal actions: Also subject to prescriptive periods.

Because these periods are technical and can change with amendments or rulings, confirm current timelines with SSS or counsel.

9) Penalties, interest, and condonation

Interest/penalty: Unpaid or late contributions accrue monthly penalties until fully paid (commonly understood to be 2% per month under the Social Security law/issuances).
Condonation programs: SSS occasionally offers contribution penalty condonation or restructuring programs for delinquent employers. These are time-bound and subject to terms—ask SSS if any program is open.

10) Special situations

Household employers (kasambahay): Household employers must register and remit; failure exposes them to the same liabilities.
OFWs: Coverage is mandatory; agencies or principals involved in deployment may share liability where the law imposes solidary responsibility.
Loan amortizations: If an agency deducts SSS loan payments from wages but does not remit, similar liabilities apply.

11) Practical, step-by-step playbook (worker’s perspective)

Check My.SSS and export/print your contribution matrix.
Collect payslips and any HR/agency emails/texts acknowledging deductions.
Draft a demand letter to the agency (and copy the principal), giving a short, firm deadline to remit and submit proof of posting.
File with SSS: Submit a complaint (bring your timeline and attachments). Ask for assessment, enforcement, and certification of nonremittance.
File a DOLE SEnA RFA: Seek mediated settlement and immediate compliance.
For urgent benefits: File the benefit claim with SSS and tell the evaluator about the missing postings and your complaint evidence.
Escalate: Cooperate if SSS pursues prosecution and/or enforcement; be ready to execute an affidavit and testify if needed.

12) Evidence checklist (attach what you have)

Government ID and SSS number
Employment contract/offer; assignment/deployment orders
Payslips showing “SSS EE” deductions (and any “ER” notes)
Contribution printout from My.SSS showing gaps
Communication with the agency/HR (emails, texts, memos)
Co-worker affidavits (if multiple affected)
Any proof of principal’s control/knowledge (if you’ll pursue solidary liability)

13) Employer/agency compliance guide (if you’re on the other side)

Audit payroll vs. SSS postings; reconcile monthly.
Remit both shares on/before the due date using the current SSS payment rails.
Never deduct the employer share from employees.
Fix gaps immediately—settle principal + penalties. Explore lawful restructuring/condonation (if available).
Document everything (PRNs, bank proofs, E-payment receipts).
Train HR/payroll; assign a compliance officer; schedule calendar reminders.
In contracting setups: Ensure your principal/contractor agreements allocate compliance duties and allow you to pass on liabilities if the other party causes delinquency.

14) Templates you can adapt

A) Demand Letter to Agency (cc: Principal)

[Date]

[Agency Name]
[Address]
Attention: [HR/Compliance Officer]

Subject: Demand to Remit Unpaid SSS Contributions

I am/We are employees deployed by [Agency] to [Principal/Client], with SSS No(s). [SSS numbers].
Our payslips reflect SSS deductions for the following periods: [list months/years],
but our My.SSS records show no corresponding postings.

This constitutes unlawful nonremittance of mandatory SSS contributions.

DEMAND: Within five (5) business days from receipt, please (a) remit the full employee and employer shares for the above periods, (b) settle all penalties and interest with SSS, and (c) provide documentary proof of posting (SSS receipts/acknowledgments).

Failing which, we will pursue remedies with SSS, DOLE, and other authorities, including criminal action against responsible officers.

Very truly yours,
[Name(s), signature(s), contact]

B) Complaint Cover Letter to SSS (attach your evidence)

[Date]

The Branch Head
Social Security System – [Branch]
[Branch Address]

Subject: Complaint for Unremitted SSS Contributions – [Agency Name]

I, [Name], SSS No. [SSS No.], employed by [Agency] and deployed to [Principal], respectfully submit this complaint for unremitted contributions.

Facts:
1. Employment: [position], [dates of employment].
2. Deductions: Payslips show SSS deductions for [months/years].
3. Nonremittance: My.SSS contribution table shows no postings for those periods.
4. Demand: [If any] I demanded compliance on [date], but no posting has been made.

Relief Requested:
- Assessment and collection of all unpaid contributions (EE and ER shares), plus penalties/interest.
- Certification of nonremittance for the affected periods.
- Referral for criminal action against the employer and responsible officers, if warranted.

Attachments:
- My.SSS contribution printout
- Payslips/Payroll records
- Employment documents
- Communications with the agency
- [Any other exhibits]

Respectfully,
[Name, signature, contact]

15) FAQs

I already resigned—can I still complain? Yes. File with SSS/DOLE using your records.
I don’t have payslips—what now? Use other proof (bank credits, time logs, IDs, contracts, co-worker affidavits). SSS may still build a case.
Will the principal (client) be liable too? Often yes, under solidary liability rules in contracting—especially if the agency is a labor-only contractor or simply failed to comply.
What if I need benefits now? File the claim and flag the missing postings; submit your proof. Ask SSS about processing while they chase the employer.
Can officers be jailed? Violations of the Social Security law may lead to imprisonment and fines against responsible officers, subject to prosecution and proof.

16) Final notes and good practice

Document early, document often. Keep your payslips and download your My.SSS records regularly.
Escalate promptly. The longer nonremittance persists, the larger the penalties—and the bigger the risk to your benefits.
Get help. Union reps, legal aid clinics, Public Attorney’s Office (for indigent workers), or private counsel can assist with affidavits and filings.
Check the latest issuances. Due dates, penalty rates, and condonation programs can change.

If you want, I can tailor the demand and complaint letters to your exact facts (names, dates, amounts, months missing), and produce a clean PDF packet for filing.