Employer Non-Remittance of PhilHealth and SSS Deductions in the Philippines
A practitioner-style guide for workers, HR, and employers
Scope & purpose. This article explains the legal framework, liabilities, and practical remedies when an employer deducts PhilHealth and Social Security System (SSS) contributions from employees’ pay but fails to remit them. It is written for the Philippine setting and aims to be immediately usable—whether you are an employee preparing a complaint or an employer fixing compliance.
1) Legal foundations & employer duties
Mandatory coverage & withholding
SSS (Social Security Act of 2018) and PhilHealth (Universal Health Care law and earlier statutes) require covered employers to:
- register the business and their employees;
- compute monthly premiums based on published contribution schedules;
- deduct the employee share from wages only for lawful contributions;
- add the employer share; and
- timely remit the total (ER + EE) to the agency within the prescribed deadlines.
What “non-remittance” means
Non-remittance occurs when an employer:
- deducts the employee share but does not pay it to the agency;
- remits late or only partially (e.g., sends the employee share but not the employer share); or
- remits without the required reports, causing contributions not to be posted to the member’s ledger.
Key principle: Once amounts are deducted from an employee’s pay for SSS/PhilHealth, those amounts are held in trust for the government fund and the employee member. Failing to turn them over triggers penalties and possible criminal exposure under special laws, separate from ordinary labor standards issues.
2) Why non-remittance is serious
It can delay or reduce benefits (e.g., sick/maternity benefits, confinement coverage, disability, retirement) if contributions aren’t posted.
It exposes the employer and responsible officers to:
- Civil liability (unpaid contributions, surcharges/interest, damages);
- Administrative sanctions (assessments, fines, distraint/levy/garnishment, business listing as delinquent); and
- Criminal liability (offenses under the SSS and PhilHealth laws for failure to register/remit, falsification of reports, or misrepresentation).
Even if an employee is blameless, unposted contributions can interrupt eligibility windows for certain claims (e.g., minimum number of posted months). Agencies do have remedial posting processes, but proof is required.
3) Typical penalties & enforcement tools (high level)
Exact rates, grace periods, and schedules change from time to time by statute or circular. Always check the current SSS and PhilHealth tables. The points below outline the usual enforcement architecture:
- Interest/Surcharges for late or non-payment. Both SSS and PhilHealth impose monthly interest/surcharges on overdue contributions until fully paid. These can compound into significant amounts.
- Add-on charges for reports not filed. Missing or late employment/contribution reports can trigger administrative penalties apart from the monetary shortfall.
- Warrant of Distraint/Levy/Garnishment. SSS (and, in practice, PhilHealth) may enforce collection through administrative warrants against bank accounts, receivables, and property.
- Personal liability of officers. “Responsible officers” (e.g., president, treasurer, HR/payroll heads who knowingly participated) can be named in complaints or informations.
- Criminal prosecution. Persistent failure to register or remit despite demand may lead to filing of a criminal case by the agency with the prosecutor’s office. Conviction carries fines and potential imprisonment under the special laws.
4) Employee playbook: how to act if your employer didn’t remit
A. Confirm the problem
Check your posted contributions.
- SSS: Get a Contribution Printout via your My.SSS account or branch kiosk.
- PhilHealth: Obtain your Member Data Record (MDR) and contribution history through the Member Portal or the local office.
Match vs. payslips where SSS/PhilHealth deductions appear. A discrepancy (deducted but not posted) suggests non-remittance or reporting issues.
B. Gather evidence
- Government-issued ID.
- Employment proof: contract, company ID, certificate of employment, DTRs, emails.
- Payslips showing SSS/PhilHealth deductions.
- Term of employment (start/end dates), monthly salary, and HR/payroll contacts.
- Any written demands you made and employer responses.
C. Where and how to complain (you can do these in parallel)
SSS Delinquency/Non-Remittance Complaint
- File at any SSS branch (or through channels they specify).
- Provide your contribution printout, payslips, and employer details.
- Request remedial posting and assessment against the employer. SSS may conduct an audit, issue a demand, and proceed to collection/prosecution if warranted.
PhilHealth Employer Delinquency Complaint
- File at the PhilHealth Regional/Local Health Insurance Office.
- Submit MDR, contribution inquiry printouts, payslips, and employer information.
- Ask for retro-posting once the employer pays, and for enforcement in case of refusal.
DOLE (labor standards assistance)
- While SSS/PhilHealth are the primary regulators for contributions, DOLE can intervene on related labor standards issues (e.g., illegal deductions outside statutory contributions, final pay/records).
- File under DOLE’s Single Entry Approach (SEnA) for quick mandatory conciliation; DOLE can facilitate compliance commitments.
Prosecutor’s Office (criminal angle)
- If contributions were deducted but not remitted despite demand, agencies or complainants may refer/endorse for criminal filing under the special laws (and, where appropriate, under the Penal Code for abuse of confidence). Usually done after agency assessment.
D. Ask for interim protections
Benefit claims despite employer delinquency.
- If you urgently need benefits (e.g., sickness/maternity in SSS; inpatient coverage in PhilHealth), inform the agency of the employer’s non-remittance and submit your payslips and proof of deduction.
- Agencies have equitable posting/validation mechanisms in hardship scenarios, though outcomes depend on facts and current rules.
Certificate of Pending Case/Assessment
- Useful to show third parties (e.g., lenders, new employers) that the posting gap stems from your former employer’s delinquency, not your fault.
5) Employer remediation checklist (HR/Payroll)
Immediate internal audit
- Reconcile payroll registers, bank proof of remittance, electronic receipts, and contribution reports per month.
- Identify months with: (a) no payment; (b) short payment; (c) missing reports.
Pay and post
- Prioritize oldest months because monthly interest/surcharge typically accrues from due date.
- Submit the missing monthly reports so payments post to the right employees and periods.
Fix master data
- Ensure all employees were properly reported upon hiring and separated upon exit.
- Correct wrong SS/PhilHealth numbers, names, or birthdates that block posting.
Engage the agency
- Voluntary disclosures and settlement plans may mitigate penalties.
- Respond promptly to notices of assessment; request computations and agree on payment schedules if available.
Control improvements
- Segregate duties (payroll vs. approver).
- Monthly three-way match: payroll deductions = agency receipts = posted contributions.
- Calendar critical due dates for each agency and lock them into payroll software.
- Keep seven-year (or longer) retention of payroll and remittance records.
6) Filing anatomy: what your written complaint should contain
Heading: “Complaint for Employer Non-Remittance of SSS/PhilHealth Contributions” Complainant: Your name, SS/PhilHealth number, address, contact. Respondent: Business name, TIN (if known), registered address, names of responsible officers. Allegations (chronological):
- Employment details (position, salary, dates).
- Deductions made (attach payslips highlighting SSS/PhilHealth lines).
- Absence of posted contributions (attach portal printouts).
- Demand made (emails/letters) and lack of compliance.
- Reliefs sought: posting of contributions, payment of employer share, surcharges/interest, penalties, and any other relief (e.g., certification for benefit claims). Verification & attachments. Sign and date.
7) Practical FAQs
Q: My employer deducted but I’m seeing zero postings for the whole year. What now? File with SSS/PhilHealth immediately with your payslips. Agencies can audit and compel payment; they may allow remedial posting once the employer settles or as equity in urgent claims.
Q: I resigned. Can I still complain? Yes. Your right to accurate posting does not end upon separation.
Q: Will I lose benefits because of my employer’s fault? Agencies aim to protect members but many benefits require posted contributions in specific windows. Act quickly so the gap can be fixed before you file a claim.
Q: Can responsible officers be jailed? Yes, under the special laws for willful failure to remit/register after demand, subject to proof and due process.
Q: Can I sue for damages? Independent civil actions (e.g., for losses due to denied claims) may be explored with counsel, though state collection and criminal cases are usually the first lines of enforcement.
8) Strategic tips that often decide cases
- Paper beats memory. Payslips, bank advice, and emails to HR are powerful. If payslips were never issued, request a Certificate of Compensation and payroll summaries.
- Don’t wait for year-end. Interest is monthly; the earlier the agency assesses, the smaller the exposure and the faster the posting.
- Name the right people. Identify officers who approved payroll and who handled government payments—this matters for personal liability.
- Coordinate benefits with enforcement. If you have an imminent benefit claim, flag this in your complaint so the agency can prioritize remedial posting.
- Keep your contact info current with SSS/PhilHealth for notices about your case.
9) Templates (copy-adapt)
A) Short demand email to employer (pre-complaint)
Subject: Request for Immediate Remittance of SSS/PhilHealth Deductions
Dear [HR/Payroll/Officer], I reviewed my SSS/PhilHealth records and noted that contributions for [months/years] are not posted, despite payroll deductions shown in my payslips (attached).
Please remit the corresponding employer and employee shares with penalties and file the necessary reports within 5 business days and update me with official proof of payment and posting. Otherwise, I will file a complaint with SSS/PhilHealth and the appropriate authorities.
Sincerely, [Name, position, contact details]
B) Complaint narrative (agency filing)
I am employed/was employed by [Company] from [date] to [date] with salary [amount]. The company deducted SSS/PhilHealth contributions from my pay for the periods [list], but these were not posted to my member records, as shown by the attached portal printouts. Despite my demand on [date], the employer has not remitted/posted the amounts. I respectfully request assessment and enforcement, posting of contributions to my account, collection of penalties/surcharges from the employer, and any further action warranted under law and regulations.
10) For counsel & HR: risk triage matrix
| Scenario | Likely Agency Stance | Employer Risk | Immediate Action |
|---|---|---|---|
| Deductions made; zero remittance | Aggressive audit/enforcement | High (civil + criminal) | Pay + report backlog; negotiate plan |
| Late remittances, no reports | Enforcement to force posting | Medium–High | File missing reports; pay surcharges |
| No deductions, no remittance | Still a violation (ER share due) | Medium | Register employees; pay ER share + penalties |
| Record mismatch (IDs/names) | Compliance order to fix data | Medium | Clean data; resubmit reports; reconcile ledgers |
11) Final notes & cautions
- Rates, contribution tables, deadlines, and penalty formulas are periodically updated by statute and agency circulars. Always verify the current schedules and filing cut-off dates before computing or paying.
- If you are an employee with an urgent benefit (e.g., hospitalization, maternity), tell the agency upfront and attach medical proof—there are often fast-track or priority workflows for hardship cases.
- For complex cases (e.g., closed companies, bankrupt employers, or disputes about employee status), consult counsel. You may need to combine agency enforcement, labor proceedings, and asset recovery strategies.
One-page checklist (tear-off)
Employees
- Print SSS & PhilHealth contribution histories
- Compile payslips & employment proofs
- Send written demand to employer (keep proof)
- File complaints with SSS & PhilHealth (attach evidence)
- Consider DOLE SEnA for conciliation
- Track agency notices and follow up until posted
Employers
- Audit payroll vs. agency receipts vs. postings
- Pay arrears + surcharges; submit missing reports
- Correct member data; file employment/separation reports
- Document controls; calendar due dates
- Engage agencies for settlement/clearance
This guide is informational and not a substitute for legal advice. For specific cases, consult a Philippine lawyer or the nearest SSS/PhilHealth office.