In the Philippines, social security benefits are not just perks; they are mandatory statutory requirements. When an employer deducts contributions for SSS, PhilHealth, and Pag-IBIG (HDMF) from an employee's salary but fails to remit them to the respective agencies, they are committing a serious violation of labor laws and criminal statutes.

This guide outlines the legal framework, the consequences for the employer, and the step-by-step process for filing a complaint.

1. The Legal Mandate

Under Philippine law, the moment an employer deducts the employee's share of contributions, they hold those funds in trust. Failure to remit these amounts within the prescribed period is considered Estafa (Criminal Deceit/Misappropriation) under the Revised Penal Code, in addition to violations of specific agency charters.

SSS: Republic Act No. 11199 (Social Security Act of 2018)
PhilHealth: Republic Act No. 10606 (National Health Insurance Act of 2013)
Pag-IBIG: Republic Act No. 9679 (HDMF Law of 2009)

2. How to Verify Non-Remittance

Before taking legal action, gather evidence. Do not rely solely on your payslip, as a payslip only proves the deduction, not the remittance.

Check Online Portals: Create accounts on the My.SSS, PhilHealth Member Portal, and Virtual Pag-IBIG websites.
Request Records: You can visit any branch of these agencies and request a Contribution Verification or Member Data Record (MDR).
Compare with Payslips: Align your payslips with the actual posted contributions. Any discrepancy is a ground for a complaint.

3. Step-by-Step Complaint Process

A. Internal Demand (Optional but Recommended)

Write a formal letter to your HR or Finance department requesting clarification on the unposted contributions. This serves as "good faith" evidence that you tried to resolve the matter internally.

B. Filing with the Respective Agencies

If the employer ignores your request, file a formal complaint directly with the agencies. Each agency has a dedicated legal or compliance division for this:

For SSS: Visit the SSS branch with jurisdiction over your workplace. Fill out a Member's Complaint Form. SSS is particularly aggressive; they can issue a "Show Cause Order" to the employer and even initiate criminal proceedings.
For PhilHealth: Submit a complaint to the Fact-Finding Investigation Department (FFID). Non-remittance can lead to the employer being denied a "PhilHealth Clearance," which is necessary for business permit renewals.
For Pag-IBIG: File a complaint at the Member Services Branch. Pag-IBIG can impose a 3% penalty per month on unremitted amounts.

C. Filing with the Department of Labor and Employment (DOLE)

You may file a Request for Assistance (RFA) through the Single Entry Approach (SEnA). This is a 30-day mandatory conciliation-mediation process. If no settlement is reached, the case can be elevated to a Labor Arbiter.

4. Criminal and Administrative Penalties

Employers who fail to remit contributions face severe consequences:

Criminal Liability: Imprisonment ranging from 6 years and 1 day to 12 years.
Civil Liability: Payment of all unremitted contributions plus a 3% monthly penalty (accruing from the date the remittance was due).
Administrative Fines: Ranging from ₱5,000 to ₱20,000 per violation.
Business Closure: Local government units (LGUs) may refuse to renew the business permit of companies with outstanding delinquency from these agencies.

Note: The "Corporate Veil" does not protect company officers in these cases. The President, General Manager, or the Head of Finance can be held personally and criminally liable for non-remittance.

5. Frequently Asked Questions

What if I resigned already? You can still file a complaint. The obligation of the employer to remit deductions made during your tenure does not expire upon your resignation.

Can I be fired for complaining? No. This would constitute Illegal Dismissal and Unfair Labor Practice. You would be entitled to reinstatement and backwages.

What if the employer claims "Financial Distress"? Financial loss is not a valid legal defense for failing to remit employee deductions. Since the money was deducted from your salary, it was never the employer's money to begin with—it was yours, held in trust.

Would you like me to draft a formal demand letter that you can send to your employer's HR department?