I. Overview

In the Philippines, Social Security System contributions are not optional payroll deductions. They are statutory obligations imposed on both the employer and the employee under the Social Security Act of 2018, or Republic Act No. 11199, which amended and strengthened the prior SSS law.

When an employer deducts SSS contributions from an employee’s salary but fails to remit them to the SSS, the employer does not merely commit a payroll error. The act may give rise to civil liability, administrative consequences, criminal liability, penalties, damages, and labor-related exposure. It may also prejudice the employee’s access to benefits such as sickness, maternity, disability, unemployment, retirement, death, and funeral benefits.

Employer liability for unremitted SSS contributions is therefore a serious compliance issue involving labor law, social legislation, corporate governance, and penal sanctions.

II. Nature and Purpose of SSS Contributions

The Social Security System is a compulsory social insurance program for covered private-sector employees and certain self-employed, voluntary, and overseas Filipino workers. For employees in the private sector, coverage is generally mandatory.

SSS contributions are intended to fund social security benefits, including:

sickness benefits;
maternity benefits;
disability benefits;
retirement benefits;
death benefits;
funeral benefits;
unemployment or involuntary separation benefits;
salary loans and other SSS loan privileges, subject to eligibility rules.

The law treats SSS contributions as a matter of public interest. They are not merely private contractual payments between employer and employee. They are statutory obligations designed to protect workers and their families against economic risks.

III. Employer’s Basic Duties Under the SSS Law

An employer has several core duties under Philippine SSS law.

1. Duty to Register the Business and Employees

Every covered employer must register with the SSS. The employer must also report all covered employees for SSS coverage within the period required by law and SSS regulations.

Failure to register employees is itself a violation, even before the issue of non-remittance arises.

2. Duty to Deduct the Employee’s Share

The employer is required to deduct the employee’s share of the SSS contribution from the employee’s compensation. The deduction must correspond to the applicable contribution schedule based on the employee’s monthly salary credit or compensation bracket.

The employer cannot excuse non-remittance by saying that the employee did not voluntarily pay. For covered employment, the employer has the statutory duty to withhold and remit.

3. Duty to Pay the Employer’s Share

Aside from deducting the employee’s share, the employer must also pay its own counterpart contribution. The employer’s share is a separate obligation and cannot be shifted to the employee.

An employer who deducts both the employee’s share and effectively charges the employer’s share to the employee violates the law.

4. Duty to Remit Contributions on Time

The employer must remit both the employee and employer shares to the SSS within the applicable deadline. Remittance deadlines may vary depending on SSS rules, employer number, payment facility, or current implementing circulars.

The duty is not satisfied by mere payroll deduction. The legal obligation is completed only when the required contributions are actually remitted and properly posted to the employee’s SSS record.

5. Duty to Submit Contribution Reports

The employer must submit accurate contribution collection lists, electronic reports, or other required remittance documentation so that payments are properly credited to each employee.

A payment made in lump sum but not correctly posted to employees may still create practical and legal problems, especially if employees cannot access benefits due to incomplete records.

IV. What Counts as “Unremitted SSS Contributions”?

Unremitted SSS contributions may take several forms.

1. Deducted but Not Paid to SSS

This is the most serious and common form. The employer deducts the employee’s share from wages but fails to remit the amount to the SSS.

This may be treated as a wrongful withholding of funds and may expose the employer to criminal prosecution.

2. Employer Share Not Paid

The employer remits the employee’s deducted share but fails to pay the employer counterpart. This remains a violation because the employer share is mandatory.

3. Partial Remittance

The employer remits only part of the required contribution, remits for some employees but not others, or remits for only certain months.

4. Late Remittance

Even if the employer eventually pays, failure to remit within the required period may result in penalties, interest, and possible liability if the delay causes prejudice to the employee.

5. Misreporting of Compensation

The employer reports a lower salary than the employee actually receives, resulting in lower SSS contributions. This underreporting may reduce the employee’s future benefits and may be treated as a violation.

6. Non-Reporting of Employees

The employer does not report certain employees as covered workers, often by misclassifying them as independent contractors, consultants, project workers, trainees, or informal workers despite the existence of an employer-employee relationship.

7. Failure to Post Contributions Correctly

Even where payment is made, inaccurate reporting may cause the contribution not to appear in the employee’s SSS account. Depending on the circumstances, the employer may still be required to correct the records and may face consequences for reporting failures.

V. Legal Basis of Employer Liability

The principal law is Republic Act No. 11199, the Social Security Act of 2018. It provides the framework for compulsory coverage, employer registration, contribution collection, penalties, and enforcement.

Other relevant legal sources include:

SSS implementing rules and regulations;
SSS circulars and contribution schedules;
the Labor Code of the Philippines, where payroll practices and employment relations are implicated;
the Civil Code, for damages and obligations arising from law;
the Revised Penal Code, where acts may overlap with fraud, falsification, or misappropriation, depending on facts;
corporate law principles on officer liability, where responsible officers participate in or allow violations.

The SSS law is social legislation. Philippine courts generally construe social legislation liberally in favor of labor and beneficiaries, while compliance duties imposed on employers are treated strictly.

VI. Civil Liability of the Employer

An employer who fails to remit SSS contributions may be civilly liable for the unpaid amounts, penalties, and damages.

1. Liability for Unpaid Contributions

The employer may be compelled to pay all unpaid contributions, including:

employee share deducted but not remitted;
employer counterpart contributions;
any additional amounts required by law or SSS regulation;
deficiencies caused by underreporting or misclassification.

The employer cannot avoid liability by claiming that the business had no funds, that the employee agreed to non-remittance, or that remittance was deferred due to financial difficulty. SSS contributions are statutory obligations.

2. Liability for Penalties and Interest

Unpaid or late-paid contributions generally accrue penalties. The law authorizes the imposition of penalties for delinquency. These may accumulate substantially over time.

The employer is usually liable for these penalties, not the employee. The employee should not bear the financial burden caused by the employer’s failure to comply.

3. Liability for Lost or Reduced Benefits

If an employee is denied SSS benefits, receives reduced benefits, or experiences delay because the employer failed to remit contributions, the employer may face liability for the resulting prejudice.

For example, an employee may suffer damage where:

maternity benefits are denied or reduced because required contributions were not posted;
sickness benefits cannot be processed;
retirement benefits are lower because years of employment were not properly credited;
death or disability benefits are affected;
a salary loan is denied because contributions are incomplete.

Depending on the case, the employer may be required to pay damages equivalent to the benefits lost or impaired, in addition to settling unpaid contributions.

4. Civil Liability Independent of Criminal Liability

Even if no criminal case is filed, the employer may still be pursued administratively or civilly. Payment of unpaid contributions may not automatically extinguish all liability, especially where penalties, damages, or criminal elements are present.

VII. Criminal Liability

Failure to remit SSS contributions may constitute a criminal offense under the SSS law.

The law penalizes employers who fail or refuse to register employees, deduct and remit contributions, or otherwise comply with statutory duties. The criminal exposure is especially serious where the employer has already deducted the employee’s share from wages but failed to remit it.

1. Why Deducted but Unremitted Contributions Are Serious

Once the employer deducts the employee’s contribution from salary, the employer is holding money that should be transmitted to the SSS for the employee’s statutory benefit. Failure to remit may be viewed as a form of unlawful withholding or misappropriation under the social security framework.

The employer cannot treat deducted SSS contributions as working capital, emergency cash flow, or a business loan.

2. Persons Who May Be Criminally Liable

In the case of a sole proprietorship, the owner may be personally liable.

In the case of a partnership, responsible partners may be liable.

In the case of a corporation, liability may attach to responsible officers, such as:

president;
general manager;
treasurer;
payroll officer;
human resources officer;
finance officer;
corporate officer directly responsible for compliance;
any person who knowingly participated in or allowed the violation.

Corporate personality does not automatically shield officers from penal liability when the law imposes duties on responsible corporate officers or when the officer actively participates in the unlawful act.

3. Imprisonment and Fines

The SSS law provides penal sanctions for violations. Depending on the violation, responsible persons may face fines, imprisonment, or both. Courts may also order payment of unpaid contributions and penalties.

4. Good Faith and Defenses

Employers sometimes invoke good faith, financial distress, payroll system error, or reliance on staff. These may affect factual assessment but do not automatically erase liability.

Common defenses include:

the employee was not actually an employee;
the contributions were remitted but not posted due to SSS processing issues;
the company corrected the deficiency before prejudice occurred;
the accused officer was not responsible for payroll or remittance;
the alleged period is incorrect;
the employee’s salary basis was miscomputed by mistake;
the claim is unsupported by records.

However, where records show repeated deductions without remittance, the employer’s position becomes significantly weaker.

VIII. Administrative and Enforcement Powers of the SSS

The SSS has authority to enforce contribution obligations. It may conduct investigations, audits, assessments, and collection proceedings.

1. Employer Audit

The SSS may examine payroll records, employment records, vouchers, ledgers, payslips, and other documents to determine whether the employer properly reported and remitted contributions.

An audit may reveal:

unregistered employees;
underreported salaries;
unpaid months;
late payments;
non-remittance of deducted employee shares;
discrepancies between payroll and SSS records.

2. Assessment and Demand

After audit or verification, the SSS may issue an assessment or demand for payment. The employer may be required to pay contributions, penalties, and other charges.

3. Collection Remedies

The SSS may pursue collection through legal and administrative means. It may also refer violations for prosecution.

4. Settlement Does Not Necessarily Erase Liability

An employer may settle unpaid contributions, but settlement does not always automatically eliminate criminal or administrative exposure. The effect of payment depends on the stage of proceedings, the nature of the violation, applicable SSS policy, and prosecutorial or judicial action.

IX. Employee Rights and Remedies

An employee whose SSS contributions were not remitted has several remedies.

1. Check SSS Contribution Records

The employee should verify posted contributions through the SSS member portal, SSS branch, or official SSS channels. The employee should compare posted contributions with payslips and payroll records.

2. Request Explanation from Employer

The employee may ask HR, payroll, or management for proof of remittance. Relevant documents include:

payslips showing deductions;
SSS contribution receipts;
contribution collection lists;
electronic payment confirmations;
payroll summaries;
employer correction or adjustment records.

3. File a Complaint with the SSS

The employee may report the employer to the SSS for non-remittance, underreporting, or non-registration. The SSS may conduct verification or audit.

4. File a Labor Complaint, Where Appropriate

If the non-remittance is connected with unlawful wage deductions, misclassification, illegal employment practices, or other labor issues, the employee may also consider remedies before the Department of Labor and Employment or the National Labor Relations Commission, depending on the nature of the claim.

However, pure SSS contribution enforcement generally falls within the authority of the SSS.

5. Claim Damages in Proper Cases

If the employee suffered actual damage because of non-remittance, such as denial of benefits, reduced benefit amount, or inability to access SSS privileges, a claim for damages may be available in the proper forum.

X. Effect on SSS Benefits

Unremitted contributions can directly affect an employee’s benefit eligibility.

1. Maternity Benefit

Maternity benefit eligibility depends on qualifying contributions within a relevant period. If an employer failed to remit contributions, the employee may have difficulty qualifying or may receive a lower benefit.

Employers may also face liability where their failure caused the employee’s maternity benefit claim to be denied or reduced.

2. Sickness Benefit

Sickness benefit claims require qualifying contributions and proper employer certification. Non-remittance may delay or prevent approval.

3. Disability Benefit

Disability benefits depend on contribution history. Missing contributions can affect qualification and benefit amount.

4. Retirement Benefit

Retirement benefits are highly dependent on credited years and monthly salary credits. Long-term underreporting or non-remittance can substantially reduce retirement benefits.

5. Death and Funeral Benefits

Beneficiaries may be prejudiced if the deceased member’s contributions were not properly posted due to employer delinquency.

6. Salary Loans

SSS salary loan eligibility depends on contribution history. Employees may be denied loans because their employer failed to remit, even though deductions appeared on payslips.

XI. Employer Liability Despite Employee Consent

An employee cannot validly waive mandatory SSS coverage where the law requires coverage. Any agreement that the employer will not remit SSS contributions, or that the employee will shoulder the employer’s share, is generally void for being contrary to law and public policy.

Examples of invalid arrangements include:

“No SSS during probationary period”;
“SSS only after regularization”;
“Employee will pay both employee and employer shares”;
“Higher take-home pay in exchange for no SSS”;
“SSS is optional for rank-and-file employees”;
“Contractual workers are not entitled to SSS” despite actual employer-employee relationship.

Coverage depends on law and facts, not merely on contract labels.

XII. Probationary, Project-Based, Seasonal, Part-Time, and Casual Employees

A common misconception is that only regular employees are entitled to SSS coverage. In general, private-sector employees are covered regardless of employment status, provided an employer-employee relationship exists and the law does not provide an exemption.

Thus, the following may still be covered:

probationary employees;
project employees;
seasonal employees;
casual employees;
part-time employees;
fixed-term employees;
relievers;
workers paid daily, weekly, or monthly.

The decisive issue is not the label but the existence of an employment relationship and statutory coverage.

XIII. Independent Contractors and Misclassification

Employers sometimes avoid SSS obligations by labeling workers as “independent contractors,” “consultants,” “freelancers,” or “service providers.”

However, if the relationship is actually employment, the employer may still be liable for SSS contributions. Relevant indicators include:

control over the worker’s means and methods;
fixed work schedule;
integration into the employer’s business;
provision of tools or workplace;
payment of regular wages;
power to discipline or dismiss;
economic dependence;
lack of genuine independent business.

Misclassification can create liability not only for SSS contributions but also for labor standards, tax, and other statutory benefits.

XIV. Corporate Officers and Personal Liability

A corporation is a separate juridical person, but responsible officers may be held liable for SSS violations when the law or facts justify it.

1. Responsible Officer Doctrine

Where a corporation fails to remit SSS contributions, the officers responsible for payroll, finance, or compliance may be included in enforcement or criminal proceedings.

2. Active Participation

An officer who knowingly approved non-remittance, directed payroll deductions without payment, falsified reports, ignored SSS notices, or used deducted funds for other purposes may face personal exposure.

3. Mere Title May Not Be Enough

A person’s title alone should not automatically create liability if the officer had no participation, knowledge, authority, or responsibility over the violation. But officers with actual control over compliance are at risk.

4. Resignation or Change of Officers

Former officers may still be questioned for violations that occurred during their tenure. New officers should conduct compliance audits because inherited delinquency may affect the corporation and may expose current management if they continue the violation.

XV. Payroll Deductions and Wage Issues

Unremitted SSS deductions raise wage concerns. If the employer deducts the employee’s SSS share from salary but does not remit it, the deduction loses its lawful purpose.

The deduction was authorized only because it was intended for statutory remittance. Keeping the amount may be treated as an unlawful or improper withholding.

Employees should preserve payslips because they are strong evidence that deductions were actually made.

XVI. Prescriptive Period and Continuing Violations

Contribution delinquency may involve recurring monthly obligations. Each missed remittance can potentially constitute a separate violation. In practice, assessment periods and prosecution issues may involve questions of prescription, discovery, continuing noncompliance, and documentary proof.

Employers should not assume that old delinquencies are irrelevant. SSS contribution issues may surface years later, especially when an employee applies for retirement, disability, death, or maternity benefits.

XVII. Common Employer Defenses and Their Limits

1. “The Business Had Financial Problems”

Financial difficulty is not a valid reason to withhold statutory contributions. SSS contributions are not ordinary trade debts that may be deferred at the employer’s convenience.

2. “The Employee Agreed”

Employee consent does not legalize non-compliance with mandatory social legislation.

3. “The Employee Was Probationary”

Probationary employees are generally covered if an employer-employee relationship exists.

4. “The Worker Was a Contractor”

This defense fails if the facts show employment.

5. “We Paid Late Anyway”

Late payment may reduce continuing delinquency but may not erase penalties, interest, or liability for prejudice already caused.

6. “The Payroll Staff Made a Mistake”

Internal delegation does not excuse the employer. A company acts through its officers and employees. Responsible officers must supervise compliance systems.

7. “The Employee Did Not Complain Before”

The employee’s silence does not waive statutory rights.

8. “The Contributions Are Small”

The amount does not determine the existence of the violation. Even small deductions are statutory funds intended for social protection.

XVIII. Documentation and Evidence

Evidence is crucial in SSS contribution disputes.

For Employees

Useful evidence includes:

payslips showing SSS deductions;
employment contract;
certificate of employment;
payroll records;
bank salary credits;
SSS online contribution history;
screenshots of missing posted contributions;
employer communications;
HR explanations;
benefit denial notices;
SSS inquiry records.

For Employers

Useful evidence includes:

SSS payment receipts;
contribution collection lists;
electronic remittance confirmations;
payroll registers;
employee master lists;
proof of correction or adjustment;
SSS correspondence;
audit responses;
proof that worker was not an employee, if applicable;
board or management records showing compliance action.

Employers should maintain organized payroll and remittance records because inability to produce records may worsen their position during audit or complaint.

XIX. Interaction with Other Mandatory Contributions

SSS non-remittance often occurs together with non-remittance of other statutory contributions, such as:

PhilHealth;
Pag-IBIG Fund;
withholding tax;
employee loan amortizations;
other authorized deductions.

While each agency has its own governing law and enforcement mechanism, a pattern of deducting from wages without remittance may indicate broader payroll noncompliance.

XX. Employer Compliance Best Practices

Employers should adopt strict compliance systems to avoid liability.

1. Register All Employees Promptly

New employees should be reported to the SSS within the required period.

2. Reconcile Payroll and SSS Records Monthly

The payroll register should match SSS contribution reports. Discrepancies should be corrected immediately.

3. Separate Deducted Contributions from Operating Funds

Employee deductions should not be used for operating expenses.

4. Maintain Proof of Remittance

Employers should keep digital and physical records of remittance confirmations, payment receipts, and posted contribution files.

5. Audit Employment Classifications

Businesses should review whether workers labeled as contractors are actually employees.

6. Monitor Contribution Schedule Changes

SSS contribution rates and salary credit tables may change. Employers must update payroll systems accordingly.

7. Assign Responsible Officers

There should be clear accountability among HR, payroll, finance, and management.

8. Correct Errors Voluntarily

When errors are discovered, employers should immediately coordinate with SSS, pay deficiencies, correct reports, and inform affected employees.

9. Avoid “Regularization-Only” Coverage

SSS coverage should not be delayed until regularization if the worker is already an employee.

10. Respond to SSS Notices

Ignoring SSS notices may worsen penalties and strengthen evidence of willful noncompliance.

XXI. Remedies Available to the SSS

The SSS may pursue several remedies against delinquent employers:

assessment of unpaid contributions;
imposition of penalties;
employer audit;
demand letters;
administrative proceedings;
collection action;
referral for criminal prosecution;
compromise or settlement, where allowed;
correction of employee contribution records;
other enforcement measures authorized by law.

The SSS has a strong public-interest mandate to collect contributions because the fund supports statutory benefits for covered members.

XXII. Liability When Employee Benefits Are Advanced by Employer

In some benefit systems, the employer may be required to advance certain benefits and later seek reimbursement or credit from the SSS, subject to compliance rules. If the employer’s own failure to remit contributions prevents reimbursement or causes benefit denial, the employer may bear the consequences.

An employer cannot prejudice the employee by invoking a problem caused by its own non-remittance.

XXIII. Effect of Closure, Insolvency, or Cessation of Business

Business closure does not automatically extinguish SSS liabilities. Unpaid contributions and penalties may remain collectible against the employer, and responsible officers may still face consequences for violations committed during business operations.

In insolvency or liquidation, SSS obligations may form part of claims against the business, subject to applicable laws on preference of credits, insolvency, rehabilitation, or liquidation. Criminal liability, where present, is not necessarily erased by business closure.

XXIV. Household Employers and Kasambahays

Household employers also have social security obligations for covered domestic workers. Under the Kasambahay Law and related social legislation, domestic workers may be entitled to SSS coverage, along with other statutory benefits, subject to applicable rules.

A household employer who fails to register or remit required contributions may also face liability.

XXV. Overseas and Manpower Agency Context

For workers deployed through agencies or contractors, liability may depend on the employment structure, recruitment arrangement, and governing regulations. Manpower agencies, service contractors, and principals may face issues involving proper registration, contribution remittance, and employment classification.

Where a legitimate job contractor exists, the contractor is generally the direct employer responsible for SSS contributions. However, where labor-only contracting or unlawful arrangements exist, the principal may face liability as an employer or solidary obligor under labor law principles.

XXVI. Relationship with Labor-Only Contracting

If workers are supplied by an agency that is merely a labor-only contractor, the principal may be deemed the employer. In such cases, SSS liability may extend beyond the nominal agency arrangement.

Indicators of labor-only contracting include lack of substantial capital or investment by the contractor and the performance of activities directly related to the principal’s business, especially where the principal exercises control over the workers.

SSS non-remittance in contracting arrangements should therefore be examined alongside labor contracting rules.

XXVII. Damages and Employer Accountability

An employee may suffer more than the loss of monthly contributions. The real harm may include:

inability to claim maternity benefits;
inability to obtain sickness reimbursement;
delayed medical or income support;
reduced retirement pension;
denial of disability benefits;
denial of salary loan;
financial distress caused by benefit denial;
anxiety and inconvenience from correcting records.

Depending on the circumstances, claims for actual damages, moral damages, exemplary damages, and attorney’s fees may be raised in appropriate proceedings. The availability of damages depends on proof, forum, and the nature of the employer’s conduct.

XXVIII. Criminal Prosecution and Payment After Complaint

Employers sometimes attempt to pay only after a complaint is filed. While payment may be considered in resolving the civil aspect or may influence settlement discussions, it does not automatically erase the fact that the law was violated.

Where the violation involves willful refusal, repeated non-remittance, or deducted amounts not transmitted, criminal liability may still be pursued.

Payment is corrective, but it is not always exculpatory.

XXIX. Practical Steps for Employees

An employee who discovers unremitted SSS contributions should take the following steps:

download or print the SSS contribution record;
gather payslips showing deductions;
list the months with missing contributions;
compute the approximate deducted amounts;
ask the employer in writing for proof of remittance;
preserve email or chat responses;
file a report or complaint with the SSS if not resolved;
request correction or posting of contributions;
document any denied or reduced benefits;
seek legal assistance where substantial benefits or criminal conduct are involved.

Written communication is important because it creates a record of the employer’s response.

XXX. Practical Steps for Employers Facing Delinquency

An employer that discovers non-remittance should act immediately.

Recommended steps include:

conduct an internal payroll audit;
identify affected employees and months;
determine whether employee shares were deducted;
compute employer shares, employee shares, penalties, and deficiencies;
coordinate with the SSS for settlement or correction;
remit unpaid amounts;
correct contribution reports;
provide employees with proof of correction;
discipline or investigate responsible internal personnel, if necessary;
implement controls to prevent recurrence.

Concealment is usually worse than voluntary correction.

XXXI. Why Employer Non-Remittance Is Treated Harshly

The law treats SSS non-remittance seriously because it undermines the social security system. The employer serves as a statutory collecting and remitting agent. When the employer fails to remit, the employee may lose benefits despite having worked and despite having salary deductions.

This creates a double injustice: the employee receives reduced pay because of deductions, yet receives no corresponding SSS credit.

For this reason, Philippine law imposes strict duties on employers and allows penalties for noncompliance.

XXXII. Key Legal Principles

The major principles may be summarized as follows:

SSS coverage for covered employees is compulsory.
The employer must register employees and report them to the SSS.
The employer must deduct the employee share and pay the employer share.
Deducted employee contributions must be remitted to the SSS.
The employer cannot use SSS deductions for business expenses.
Employee consent does not validate non-remittance.
Probationary, casual, project, seasonal, part-time, and fixed-term employees may still be covered.
Misclassification as an independent contractor does not defeat coverage if employment exists.
Non-remittance may result in civil, administrative, and criminal liability.
Corporate officers responsible for compliance may be personally liable.
Late payment may still result in penalties.
Employees may complain to the SSS and may pursue additional remedies where they suffer damage.
Business closure does not necessarily extinguish liability.
SSS laws are social legislation and are generally construed to protect workers.

XXXIII. Conclusion

Employer liability for unremitted SSS contributions in the Philippines is a serious matter rooted in social justice and statutory compliance. Employers are not merely encouraged to remit SSS contributions; they are legally required to do so. The obligation covers registration, accurate reporting, timely deduction, employer counterpart payment, remittance, and documentation.

When an employer deducts SSS contributions from wages but fails to remit them, the employer may be liable for unpaid contributions, penalties, damages, administrative enforcement, and criminal prosecution. Responsible corporate officers may also face personal liability when they participate in, authorize, tolerate, or fail to correct violations within their area of responsibility.

For employees, unremitted contributions can mean lost benefits, reduced pensions, denied claims, and financial hardship. For employers, noncompliance can lead to audits, assessments, prosecution, reputational harm, and corporate governance issues.

The safest legal position is full, accurate, and timely compliance. SSS contributions are not discretionary employment benefits. They are mandatory social security protections imposed by law for the welfare of workers and their families.