When an employer withholds mandatory contributions for SSS, PhilHealth, and Pag-IBIG from an employee’s salary, the employer acts as a collecting agent of the government. Those deductions are not the employer’s money. Failure to remit them is a serious violation that triggers administrative, civil, and criminal consequences. This article explains the legal framework, how employees can detect non-remittance, and what remedies are available.

1. The Core Rule: Deductions Must Be Remitted

In the Philippines, contributions to:

SSS (Social Security System) under the Social Security Act of 2018 (Republic Act No. 11199),
PhilHealth under the National Health Insurance Act (as amended, including RA 11223 or the Universal Health Care Act), and
Pag-IBIG Fund (HDMF) under RA 9679,

are mandatory for covered employees and employers. Employers must:

Deduct the employee share,
Add the employer share, and
Remit the total to the agency on time, with proper reporting.

The employer’s duty is statutory; it cannot be waived by contract or “company policy.”

2. Why Non-Remittance Matters to Employees

Non-remittance can cause:

Loss or delay of benefits
- SSS loans, sickness/maternity benefits, disability/retirement claims.
- PhilHealth coverage, hospital benefit eligibility, or reduced case rates.
- Pag-IBIG housing loan eligibility, multi-purpose calamity/MP2 benefits, or dividend credits.
Gaps in contribution records, affecting future claims.
Personal financial risk, where an employee must pay out-of-pocket for medical care or loses access to loans.

3. Typical Signs of Non-Remittance

Employees often discover non-remittance when they:

Check online portals and find missing months or zero posted contributions.
Apply for a loan/benefit and are told they are not qualified due to insufficient contributions.
Receive employer payslips showing deductions, but agency records do not match.

4. Employee Rights and Employer Liability

4.1. Employee Rights

An employee has the right to:

Demand proof of remittance (official receipts, payment reference numbers, posted contributions).
Access personal contribution records from each agency.
File formal complaints and seek recovery of unremitted sums.

4.2. Employer Liability (General)

An employer who deducts but fails to remit may face:

Payment of the entire unremitted amount, including the employer share.
Penalties, surcharges, and interest.
Criminal prosecution (fines and/or imprisonment depending on the statute).
Labor liabilities if the act also constitutes illegal deduction, wage violation, or bad faith.

Importantly, the law generally treats deducted contributions as held in trust for the employee and the state.

5. Remedies by Agency

A. SSS Remedies

5.1. File a Complaint with SSS

Employees can report non-remittance to SSS through branch filing or employer compliance channels. The complaint usually includes:

Payslips showing SSS deductions,
Employment proof (contract, COE, IDs),
Any communication with HR.

SSS can conduct an audit or investigation and issue:

A Demand Letter to the employer,
An assessment for unpaid contributions,
Referral for prosecution.

5.2. Employee Protection

Even when the employer fails to remit, the employee should not lose coverage for benefits if deductions are proven. SSS can require the employer to pay arrears; employees can also request correction of records once payment is enforced.

5.3. Criminal Liability

Under RA 11199, non-remittance after deduction is punishable. Officers, managers, or responsible directors may be personally liable if they authorized or tolerated the violation.

B. PhilHealth Remedies

5.4. File a Complaint with PhilHealth

Employees may file a complaint with PhilHealth’s employer accounts or legal division. Useful evidence:

Payslips showing PhilHealth deductions,
PhilHealth Member Data Record showing missing contributions,
Employment proof.

PhilHealth can:

Assess arrears,
Impose penalties,
Pursue administrative and criminal cases.

5.5. Coverage Continuity

Employees who can show that deductions were made may seek retroactive posting once PhilHealth compels remittance. In urgent health situations, PhilHealth may direct the employer to settle arrears to allow benefit use, depending on internal rules.

C. Pag-IBIG (HDMF) Remedies

5.6. File a Complaint with Pag-IBIG

Employees can report through Pag-IBIG branches or employer compliance units. Provide:

Payslips with Pag-IBIG deductions,
Pag-IBIG MDF or online contribution printout,
Employment proof.

Pag-IBIG can:

Audit the employer,
Issue billing and penalties,
Refer to legal enforcement.

5.7. Protection for Benefits

Like SSS and PhilHealth, Pag-IBIG can require the employer to pay arrears and credit the employee’s account. Employees should keep payslips because Pag-IBIG posting is proof-driven.

6. Remedies Through DOLE and NLRC

Non-remittance can overlap with labor violations. Employees may go to:

6.1. DOLE (Department of Labor and Employment)

If the issue is ongoing employment and administrative compliance, DOLE can:

Conduct an inspection under its visitorial/enforcement power,
Issue compliance orders for lawful deductions and remittance,
Require payroll and statutory proof.

DOLE is often effective for prompt compliance versus long litigation.

6.2. NLRC / Labor Arbiter

If the employer refuses to comply or the employee is separated, the employee may file a labor case for:

Money claims tied to illegal deductions or benefits lost,
Damages if bad faith is proven (e.g., medical expenses from PhilHealth denial, lost SSS loan opportunities),
Other labor standards violations.

7. Civil and Criminal Routes Beyond Labor Forums

7.1. Criminal Complaints

Employees (or agencies) may file criminal complaints for non-remittance. While agencies often prosecute, an employee’s sworn complaint can trigger action.

7.2. Civil Action

If the employee suffers quantifiable loss (e.g., hospital bills due to PhilHealth non-coverage), an employee may pursue damages under general civil law principles, especially if the employer acted in fraud or bad faith.

8. Who Is Liable: The Company and Its Officers

Philippine social legislation typically provides:

Corporate employer liability, and
Personal liability of responsible officers (president, treasurer, HR/payroll heads, finance officers), particularly when they control remittance.

Even if the company later dissolves or becomes insolvent, officers may still be prosecuted depending on circumstances.

9. Evidence Checklist for Employees

To build a strong case, keep copies of:

Payslips showing each deduction.
Employment contracts or offer letters.
Company IDs and COE.
Agency contribution records (screenshots/printouts).
Emails or chats with HR/finance acknowledging deductions.
Proof of loss or harm (loan denial letters, hospital receipts).

In practice, payslips are the most critical proof.

10. Step-by-Step Action Plan

Verify records
- Log in to SSS, PhilHealth, and Pag-IBIG portals, or request printed contribution histories.
Document discrepancies
- Compare payslips vs. posted contributions.
Write HR/Payroll formally
- Request clarification and proof of remittance. Keep copies.
File complaints with agencies
- Start with the specific agency where gaps are found. Provide evidence.
Escalate to DOLE
- If employer is unresponsive or violation continues.
Consider NLRC case
- Especially if separated from work or if there are money damages.
Follow through
- Attend conferences, submit affidavits, and keep records updated.

11. Common Employer Defenses (and How They Fail)

“We had cash-flow problems.”

Not a valid defense. Statutory contributions are not optional business expenses.

“We deducted but haven’t posted yet.”

Posting delays happen, but employers must show official proof of payment. If they can’t, it’s non-remittance.

“You can pay voluntarily instead.”

Employees cannot be forced to shoulder the employer’s remittance duty. Voluntary payment does not erase employer liability.

“We’ll just settle later.”

Late settlement still incurs penalties and may not prevent criminal or administrative cases.

12. Prescription / Time Limits

Social legislation generally allows agencies to assess and collect arrears over long periods. Employees should still act early because:

Records become harder to recover over time,
Benefits might be urgently needed,
Evidence (payslips, HR contacts) can disappear.

13. Practical Tips

Check your contributions regularly, not only when applying for benefits.
Save digital copies of payslips off company systems.
If you resign, verify final months’ remittance.
Coordinate with co-employees if the violation is widespread; collective complaints tend to move faster.

14. Key Takeaways

Deductions without remittance are illegal and treated as misappropriation of mandated funds.
Employees have strong remedies through SSS, PhilHealth, Pag-IBIG, and DOLE/NLRC.
Plausible proof = payslips + agency records.
Employers and responsible officers can face penalties, arrears, and criminal charges.
Early action protects benefits and strengthens the case.

If you want, tell me your situation in a few lines (industry, how long the gaps are, and whether you’re still employed there), and I’ll map the best forum sequence and draft a complaint outline you can use.