Employer Non-Remittance of SSS Contributions
A Comprehensive Guide for Workers and HR Practitioners in the Philippines
Updated as of 13 June 2025. Citations refer to Republic Act No. 11199 (the “Social Security Act of 2018”, which superseded R.A. 8282), its Implementing Rules, SSS Circulars, and relevant jurisprudence.
1. Why Remittance Matters
| Benefit | What You Lose When Contributions Aren’t Remitted |
|---|---|
| Sickness, Maternity, Disability, Retirement, Death, Funeral | These benefits are computed from posted contributions; missing premiums reduce or may entirely forfeit entitlements. |
| Employees’ Compensation (EC) | EC records piggy-back on SSS postings. Non-remittance can delay medical reimbursements and disability income. |
| Calamity, Salary, & House Repair Loans | SSS will decline loan applications if the last six (6) months of contributions are unposted. |
| Creditable Years of Service | Retirement and pension calculations depend on continuous monthly payments. |
2. Legal Duties of Employers
Coverage & Registration
- Who must register? All employers—including one-person corporations, partnerships, sole proprietorships, domestic helpers under the Kasambahay Law, and even foreign missions that hire Filipinos locally.
- When? Within 30 days from the first day an employee starts work (R.A. 11199, § 10).
Withholding & Remittance
- Rate: Both employer and employee shares appear in the SSS Contribution Schedule (last adjusted 01 January 2025: 14% of Monthly Salary Credit, shared 9.5% employer / 4.5% employee).
- Deadline: On or before the month’s applicable due date (varies by the 10-digit ER/HRN).
Posting & Record-Keeping
- Employers must give each worker a semi-annual contribution statement or an on-demand print-out (SSS R. § 22-B).
- Books and payroll records must be kept for at least 10 years (Tax Code § 235 in relation to SSS R. § 24).
Prohibition on Wage Deduction
- Deducting the employer share from wages is an unfair labor practice and a criminal offense (R.A. 11199, § 28(b)).
3. Penalties for Non-Compliance
| Type | Statutory Citation | Sanction |
|---|---|---|
| Monetary Surcharge | § 22(a) | 2% per month, compounded, on unremitted amounts. |
| Criminal Liability | § 28(e) | Fine ₱5 000–₱20 000 and imprisonment 6 years & 1 day – 12 years; directors and officers are personally liable. |
| Administrative | SSC Resolution & SSS Circulars | Suspension of loan privileges, disqualification from government bidding, issuance of Warrant of Distraint/Levy. |
| Labor-Standards | DOLE NLC § 6 and LSE; NLRC can order restitution and moral damages in illegal-dismissal cases tied to SSS fraud. | |
| Tax | BIR may disallow the employer share as deductible business expense. |
Tip: Criminal cases may proceed simultaneously with civil collection suits and labor complaints; there is no double jeopardy because different interests are protected.
4. Typical Red Flags Workers Notice
- “Missing” periods in the My.SSS portal.
- SSS rejects a salary-loan or maternity reimbursement filing.
- Pay slips show deductions but the online record shows “Not Yet Posted”.
- The company is frequently paying beyond deadlines (the “Last Paid Date” field lags more than two months).
5. How to File a Complaint
(The process is purposely employee-friendly; no lawyer is required.)
| Step | What to Do | Key Forms / Proof | Time Limit |
|---|---|---|---|
| 1. Gather Evidence | Screenshot of My.SSS contribution gaps; pay slips; employment contract. | — | Recommend within 3 yrs from noticing the gap (for easier document retrieval). |
| 2. Approach the HR / Employer | Send a polite demand letter asking for immediate posting. | Sample letter below | NA |
| 3. Report to SSS | a. Fill out SS Form RS-5 (for retro remittance) if the employer cooperates; b. If not, file SSS Affidavit of Complaint (Employer Violations) at the nearest SSS branch’s Member Services Section (MSS). |
Valid ID, screenshots, demand letter (received copy). | Prescriptive period: 20 years for benefit claims; but earlier filing speeds criminal prosecution. |
| 4. SSS Investigation | Field Inspector issues Notice of Violation & computes delinquency. | — | SSS usually gives employer 15 days to settle; extensions by discretion. |
| 5. Settlement / Prosecution | - Employer may sign an Installment Proposal (IP) up to 48 months. - Failure triggers filing of a criminal case at the local Prosecutor’s Office, docketed as “SSS vs. (Name of Responsible Officer)”. |
Installment Agreement, ORs. | Once filed, criminal action continues even if amounts are later paid. |
| 6. Optional Labor Case | Parallel complaint at DOLE–Regional Office under the Single-Entry Approach (SEnA) → NLRC. | RAB-1 (NLRC) | 3 years from cause of action (Labor Code, Art. 306). |
| 7. Civil Collection Suit | SSS Legal Division may sue in a regional trial court to collect delinquency + 2% interest. | — | 5 years from assessment to file under the Civil Code. |
Sample Demand Letter
Date: _______________
Name of Employer / HR Manager
Address
RE: DEMAND FOR IMMEDIATE REMITTANCE OF MY SSS CONTRIBUTIONS
Dear Sir/Madam:
Records in My.SSS show no posted contributions for the months of ________ to ________ despite regular salary deductions.
Pursuant to § 22(a) of R.A. 11199, please remit the total amount with interest within five (5) working days and furnish me proof of posting.
Otherwise, I will be constrained to file a formal complaint with the Social Security System and appropriate government agencies, without further notice.
Very truly yours,
____________________
(Signature over Printed Name)
SSS No.: __________________(Send via registered mail or email; keep proof of transmittal.)
6. Jurisprudence Snapshot
| Case | G.R. No. / Date | Key Take-Away |
|---|---|---|
| People v. Dizon | G.R. 194431, 22 Jan 2014 | Responsible corporate officers cannot abdicate liability by claiming ignorance of payroll matters. |
| SSS v. Moonwalk Development | G.R. 165585, 23 April 2018 | Civil action for collection is independent from criminal case; payment after filing does not erase criminal liability. |
| SSS v. Letran | G.R. 221173, 17 Feb 2021 | Educational institutions equally subject to SSS coverage; student fees cannot be diverted to pay delinquency. |
| Degamo v. SSS | G.R. 246824, 08 Feb 2023 | The 2% monthly penalty is non-waivable absent extraordinary equity considerations by the SSC. |
7. Practical Pointers for Employees
- Register for My.SSS—check your contributions quarterly.
- Keep pay slips at least five (5) years.
- Document everything in writing—verbal promises are difficult to prove.
- Speed is your friend—the longer you wait, the harder to reconstruct payroll records.
- Consider group action—SSS welcomes consolidated complaints; it strengthens the case.
8. Compliance Checklist for Employers
- Enroll in RTPC/Electronic‐Collection Service or PRN facility.
- Generate and pay Contribution Payment Reference Number (PRN) each month.
- Post proof of payment on the company bulletin board or intranet.
- Reconcile payroll vs. SSS remittances monthly; sign-off by Finance & HR.
- Attend SSS Employer Seminars yearly; note changes in contribution rates.
9. Frequently Asked Questions
Q: Can I continue paying contributions myself if my employer won’t? A: No. The account type “Employed” cannot self-post contributions. You may, however, apply as Voluntary/OFW for future months after separation.
Q: Will I still receive benefits if the delinquency is the employer’s fault? A: Yes—SSS will grant benefits if you prove the deductions; SSS will then go after the employer for reimbursement plus penalties (R.A. 11199, § 22-A).
Q: Does resignation waive my right to complain? A: Absolutely not. The obligation to remit is statutory; it survives termination of employment.
Q: How long does the criminal case usually take? A: From filing at the Prosecutor’s Office to final judgment in the Regional Trial Court can take 3-6 years, depending on docket congestion.
Q: What if the company already closed? A: SSS can pierce the corporate veil and pursue directors’ or owners’ personal assets via distraint and levy; criminal cases remain viable as long as the responsible officers are locatable.
10. Conclusion
Failing to remit SSS contributions is not merely a payroll slip-up—it is an offense that jeopardizes workers’ safety nets and exposes employers to heavy civil, administrative, and criminal sanctions. Armed with documentary proof and a clear, step-by-step procedure, employees can swiftly enforce their rights, while employers can avoid liability through diligent, timely compliance.
Legal Disclaimer: This guide is for general information only and does not constitute legal advice. For advice tailored to your situation, consult a lawyer or the SSS Legal Affairs Department.
Stay proactive—protect your future pension today.