A Legal Overview and Practical Guide

I. Overview

In the Philippines, employers are legally bound to:

Pay employees their wages on time; and
Register, deduct, and remit Social Security System (SSS) contributions correctly and promptly.

Failure to do either can give rise to:

Labor standards violations (delayed or unpaid wages);
Social security law violations (non-remittance of contributions);
Possible civil, administrative, and criminal liability for employers; and
The employee’s right to file complaints with DOLE, NLRC, SSS, and, in some situations, the prosecutor’s office.

This article explains the legal framework, employee rights, and the complaint process relating specifically to delayed salary and non-remittance of SSS contributions in the Philippine context.

II. Legal Framework

1. Constitutional and Labor Code Bases (Wages)

Key principles:

Workers have the right to “just and humane conditions of work”, including timely payment of wages.
The Labor Code of the Philippines, as amended, and DOLE issuances provide detailed rules on:
- Definition of wages;
- Frequency and manner of payment;
- Prohibition of unauthorized deductions;
- Remedies for unpaid or delayed wages.

“Wage” or “salary” generally includes all remuneration for work performed, whether paid by hour, day, month, or piece, including basic pay and, in many cases, cost of living allowances and certain regular benefits.

Delayed salary is typically a labor standards violation, not simply a private contractual breach.

2. Social Security Law (SSS Contributions)

The Social Security System (SSS) is governed mainly by the Social Security Act of 2018 (Republic Act No. 11199), which:

Requires coverage and registration of employers and employees;
Obligates employers to:
- Register employees with SSS;
- Deduct the employee’s share of contributions;
- Add the employer’s share;
- Remit both shares on time to SSS;
Provides penalties, surcharges, and possible criminal liability for employers who fail or refuse to remit contributions.

Common violations related to SSS:

Non-registration of the employer and/or employees.
Non-deduction of contributions.
Deduction but non-remittance of contributions (the most serious).
Under-reporting of salary to reduce contributions.

Failure to remit contributions does not legitimize the employer’s noncompliance; the law generally obliges the employer to pay contributions plus penalties, and in appropriate cases, face prosecution.

III. Delayed Salary: What It Is and Why It’s Unlawful

1. When Is Salary Considered “Delayed”?

Generally, the Labor Code and DOLE rules require that:

Wages be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days (unless valid exceptions apply).
Payment be made on or before the scheduled payday stated in the company policy or employment contract, provided this complies with law.

Salary is “delayed” when:

Payroll dates are repeatedly moved, postponed, or skipped without lawful justification;
Employees receive partial pay far beyond the agreed/payroll period;
Employees are told “we’ll pay you when cash is available” without definite date.

Minor delays due to technical/banking problems may be excused if isolated and promptly corrected. Habitual or prolonged delays are typically considered illegal.

2. Legal Consequences of Delayed Wages

Delayed or unpaid wages can lead to:

Labor standards enforcement by DOLE (e.g., Orders requiring payment of wage differentials, unpaid salaries, legal interest, and penalties);
Money claims cases before the NLRC (e.g., claims for unpaid wages, 13th month pay, holiday pay, etc.);
Constructive dismissal issues where severe, chronic nonpayment or delayed payment effectively forces the employee to resign;
Possible criminal sanctions in extreme cases where the law specifically penalizes certain forms of nonpayment or unlawful deductions.

IV. Non-Remittance of SSS Contributions

1. Employer Obligations

An employer must:

Register with SSS and report employees within the prescribed period.
Deduct the employee’s share of SSS contributions from wages.
Add the employer’s share.
Remit the total contribution to SSS on or before deadlines.
Maintain and provide contribution records to SSS and employees.

When an employer deducts SSS contributions from an employee’s salary but does not remit them to SSS, this typically constitutes:

Misuse of funds that were supposed to be trust funds for SSS;
A violation of RA 11199, subject to penalties, surcharges, and criminal liability.

Even when the employer fails to deduct, the employer generally remains liable to SSS for both the employer and employee share, with penalties and surcharges.

2. Impact on Employees

Non-remittance can cause:

Incomplete or missing contribution records in the SSS system;
Issues in filing claims for sickness benefits, maternity benefits, disability benefits, unemployment benefits, retirement, and death benefits;
Delay or denial of benefits if SSS contribution requirements (number of contributions, “qualifying contributions” within specific periods) are not met due to employer noncompliance.

SSS may still enforce liability against the employer and allow the employee to claim benefits once the SSS processes the case, but delays and complications are common.

V. Overlapping Violations: Delayed Salary + Non-Remittance

These two violations often occur together:

Employer delays or partially pays salary, making irregular or no deductions;
Or salaries are paid but SSS contributions deducted are not remitted.

This creates multiple legal issues:

Labor standards case (delayed/non-paid wages, benefits).
SSS case (failure to remit contributions).
Potential estafa-like situations where employer deducts but fails to remit.
Possible damages claims from employees who lost or were delayed in obtaining benefits.

Employees may need to pursue remedies on two tracks: one with DOLE/NLRC for wages and another with SSS for contributions.

VI. Remedies and Complaint Options

1. Internal/Company Remedies

Before filing formal complaints, employees may:

Raise the issue with HR or management in writing;
Request a clear payroll schedule and explanation;
Ask for proof of SSS remittances, such as contribution printouts or official receipts (ORs) of SSS payments.

These steps are not obligatory but can:

Provide a paper trail of demands;
Show good faith and may sometimes resolve the situation quickly.

2. DOLE – Labor Standards Complaint and SEnA

a. Single Entry Approach (SEnA)

The Single Entry Approach (SEnA) is a mandatory conciliation-mediation system for labor disputes.

Typical steps:

File a Request for Assistance (RFA) at the DOLE Regional/Field Office where the workplace is located.
State issues: delayed salary, unpaid wages, non-payment of 13th month, etc.
Attend scheduled conferences with a SEnA Desk Officer.
If the employer appears, DOLE will try to mediate a settlement (e.g., payment schedule, full settlement).
If settlement fails, the case may be referred to:
- Labor Inspectorate for labor standards enforcement, or
- NLRC or proper forum if more formal adjudication is needed.

SEnA is usually fast and informal, and can often pressure employers to pay.

b. Labor Inspection / Compliance

DOLE can:

Conduct inspection of the establishment;
Issue:
- Compliance Orders for unpaid wages, overtime, holiday pay;
- Directives to pay backwages and wage differentials;
Impose administrative fines for labor standards violations.

If the employer fails to comply with DOLE’s orders, enforcement may involve writs of execution and, in some cases, criminal referrals.

3. NLRC – Money Claims and Related Cases

The National Labor Relations Commission (NLRC) has jurisdiction over:

Money claims arising from employer-employee relations exceeding certain thresholds;
Complaints that may also involve illegal dismissal, damages, and attorney’s fees.

When to go to the NLRC:

When DOLE conciliation has failed, and
The employee wants a formal adjudication (e.g., backwages, unpaid salaries, damages).

The employee files a complaint with the NLRC, usually:

Naming specific causes of action: unpaid/delayed wages, unpaid overtime, holiday pay, 13th month, etc.;
Attaching supporting documents (employment contract, payslips, bank records, communications).

There are prescriptive periods (time limits) for labor money claims, generally counted in years from when the cause of action accrued. Employees must file within these periods to avoid prescription.

4. SSS – Complaint for Non-Remittance

Employees can complain directly to SSS when contributions are missing or not posted due to employer non-remittance.

Typical steps:

Obtain a copy of SSS contributions record (online or from a branch).
Compare with actual employment period and payslips (where deductions appear).
If discrepancies exist, file a complaint or report with SSS:
- Present evidence:
  - Employment certificate;
  - Payslips showing SSS deductions;
  - ID and SSS number.
SSS will typically:
- Investigate the employer;
- Issue demand letters;
- Assess contributions, penalties, and surcharges;
- Initiate collection proceedings.

For serious or willful violations, SSS may coordinate with the prosecutor’s office to file criminal cases against responsible officers of the employer.

5. Criminal Complaints

Non-remittance of SSS contributions, especially when amounts were deducted from employees’ salaries, may be criminally punishable under the Social Security Act and related laws.

Possible criminal angles:

Violation of RA 11199 concerning failure to remit contributions;
In some cases, acts akin to swindling/estafa, depending on facts.

Criminal complaints are typically filed with the:

City/Provincial Prosecutor, sometimes upon endorsement by SSS, after investigation;
Prosecutor conducts preliminary investigation and decides whether to file an Information in court.

VII. Structure and Contents of a Complaint

1. Labor Complaint for Delayed Salary (DOLE/NLRC)

Typical contents:

Parties
- Name and address of employee-complainant;
- Employer’s name, address, and representative.
Statement of Facts
- Employment details: date hired, position, salary, work schedule;
- Normal payday;
- Specific dates and amounts of delayed or unpaid salaries;
- Steps taken to demand payment and employer’s response or lack thereof.
Causes of Action
- Violation of labor standards on timely payment of wages;
- Unpaid wages and related benefits (e.g., 13th month, holiday pay).
Reliefs Prayed For
- Full payment of unpaid salaries and benefits;
- Legal interest;
- Attorney’s fees, if represented by counsel.
Attachments
- Employment contract, appointment letter;
- Payslips, payroll records, bank transaction history;
- Written demands, emails, chats;
- Company memos on delayed payment, if any.

2. SSS-Related Complaint (Non-Remittance)

A complaint or sworn statement to SSS or prosecutor’s office may contain:

Complainant’s Details
- Name, SSS number, address, and employment details.
Employer’s Details
- Name and address of the company;
- Name of responsible officers (if known).
Facts of Non-Remittance
- Employment period;
- Contribution deductions shown on payslips;
- Missing or incomplete contributions on SSS record;
- Any admissions or explanations by employer.
Legal Basis
- Employer’s obligation under the Social Security Act to remit contributions.
- Violation by employer through failure/refusal to remit.
Prayer
- That SSS compel employer to pay contributions, penalties;
- That appropriate criminal charges be filed against responsible officials, if warranted.
Annexes
- SSS contribution printouts;
- Payslips;
- Employment certifications;
- Written communications showing the employer’s knowledge or refusal.

VIII. Special Situations

1. Probationary, Casual, Project, and Part-Time Employees

Regardless of employment status, if they are:

Employees under the Labor Code, and
Within the coverage of SSS,

they are generally entitled to:

Timely payment of agreed wages;
SSS coverage and contributions (subject to minimum conditions under SSS rules).

Employers cannot use “probationary” or “project” status as a blanket excuse to delay salary or ignore SSS obligations.

2. OFWs and Overseas Employment

For Filipino workers deployed abroad:

The role of Philippine-based recruitment agencies/employers, the DMW (formerly POEA), and SSS may be involved.
Some OFWs are covered by compulsory or voluntary SSS coverage depending on status.
Delayed wages may also be subject to contractual and overseas labor regulations, on top of Philippine laws.

3. Government Employees (GSIS vs SSS)

Government employees are usually covered by GSIS, not SSS, with a different legal framework.

However, some government-owned and controlled corporations or certain entities may fall under different rules. It is important to confirm:

Whether the employee is SSS-covered or GSIS-covered; and
The specific rules on contributions and remedies.

4. Closure or Bankruptcy of Employer

If an employer closes down:

Unpaid wages and statutory benefits become claims against the employer’s remaining assets;
Employees may assert wage preferences in insolvency proceedings;
SSS may still pursue contribution collections and personal liability of responsible officers, depending on the law and circumstances.

IX. Evidence and Documentation: What Employees Should Keep

Employees concerned about delayed salary or non-remittance of SSS should preserve:

Employment contracts, appointment letters, job offers;
Payslips and payroll documents;
Time records or attendance logs;
Bank statements showing salary deposits (or absence thereof);
Screenshots or copies of messages and emails about delayed salaries;
SSS contribution records (online or printed);
Any company memos concerning financial difficulties, payroll delays, or SSS remittance issues.

The stronger and more organized the evidence, the more effective the complaint process.

X. Practical Tips for Employees

Act early. Repeated delays in salary or long periods of missing SSS postings should not be ignored.
Ask HR for official explanation in writing, especially about payroll disruptions and SSS contributions.
Check SSS contributions regularly, not only when needing benefits.
Document everything: keep copies, take screenshots, and organize them chronologically.
If multiple workers are affected, consider filing as a group; this can strengthen the case and reduce fear of retaliation.
Be aware of prescriptive periods for filing labor money claims and SSS complaints.
When the situation becomes complex (e.g., large sums, long periods, multiple laws involved), consult legal counsel or seek help from DOLE, SSS, public attorneys, or accredited NGOs.

XI. Final Note

Delayed salary and non-remittance of SSS contributions are not mere “internal company issues.” They are violations of labor and social security laws that directly threaten workers’ livelihood and future benefits. Philippine law provides multiple remedies and complaint mechanisms—through DOLE, NLRC, SSS, and the courts—to compel compliance, recover what is due, and, where appropriate, hold employers criminally liable.

The above discussion serves as general legal information. Actual cases may involve specific facts, company policies, and laws that require tailored legal advice from a qualified professional.