In the Philippines, the deduction of social security, health insurance, and housing fund contributions from an employee’s salary is a mandatory fiduciary duty of the employer. When an employer fails to remit these funds to the respective agencies despite having deducted them from the employee's pay, it constitutes a serious violation of Philippine labor laws and may even amount to criminal acts such as Estafa.

This guide outlines the legal framework, the responsibilities of the employer, and the specific steps an employee can take to report non-remittance.

I. The Statutory Mandate

The obligation of the employer to remit contributions is governed by three primary laws:

Social Security Act of 2018 (R.A. 11199): Governs SSS contributions.
National Health Insurance Act (R.A. 7875, as amended by R.A. 11223): Governs PhilHealth.
Home Development Mutual Fund Law of 2009 (R.A. 9679): Governs Pag-IBIG (HDMF).

Under these laws, the employer is legally obligated to:

Register employees within 30 days of employment.
Deduct the employee's share of contributions.
Contribute the employer's share.
Remit the total amount to the respective agency within the prescribed deadlines.

II. Legal Consequences of Non-Remittance

Failure to remit is not merely a civil matter; it carries criminal liability.

Presumption of Fault: Under the law, the failure of the employer to remit contributions after deducting them from the employee’s compensation raises a presumption that the employer has misappropriated the funds.
Penalties: Penalties include fines (ranging from ₱5,000 to ₱20,000 or more) and imprisonment (ranging from 6 years and 1 day to 12 years), depending on the specific law violated.
Solidary Liability: In corporations, the officers (President, Manager, or Directors) are often held personally and criminally liable for the non-remittance.

III. Step-by-Step Reporting Process

Before initiating formal complaints, it is advisable to secure proof of deductions through payslips and check your contribution records via the agencies' online portals (My.SSS, Virtual Pag-IBIG, and PhilHealth Member Portal).

1. Social Security System (SSS)

If your SSS contributions are missing:

Initial Action: Visit the SSS branch with jurisdiction over your workplace and head to the Member Services Section or the Legal Department.
Formal Complaint: File a formal written complaint. You will need to provide copies of your payslips showing the deductions and your employment contract.
SSS Sickness/Maternity Claims: If you are denied a benefit due to non-remittance, the SSS law allows you to file a claim, and the SSS will then proceed to collect the unpaid contributions plus a 2% monthly penalty from the employer.

2. PhilHealth

Non-remittance to PhilHealth can lead to a denial of hospital benefits during an emergency.

Action: Report the employer to the PhilHealth Regional Office (PRO) or the Local Health Insurance Office (LHIO).
Requirements: Submit a Complaint Affidavit along with proof of employment and payslips. PhilHealth’s Legal Department will issue a "Demand Letter" to the employer.

3. Pag-IBIG Fund (HDMF)

Action: Visit the Pag-IBIG branch where your company is registered.
Procedure: Request a "Contribution Verification." If a discrepancy is found, file a complaint with the Provident Fund Department.
Legal Action: Pag-IBIG frequently coordinates with the Department of Justice (DOJ) to prosecute employers who fail to remit contributions, especially when it hinders an employee's housing loan application.

IV. Common Employer Defenses (and why they fail)

Employer Argument	Legal Reality
"The business is losing money."	Financial loss is not a valid excuse. The employee's share is held in trust; using it for business expenses is misappropriation.
"The employee didn't ask."	The duty to remit is mandatory and automatic by law; it does not require a request from the employee.
"We will pay it later."	Delay beyond the statutory deadline already triggers penalties and criminal liability.

V. Filing a Labor Case (NLRC)

While the agencies handle the criminal and administrative aspects of collection, an employee may also file a labor case at the National Labor Relations Commission (NLRC).

Money Claims: You can include non-remittance as part of a larger labor complaint (e.g., alongside underpayment of wages or illegal dismissal).
SENA: The process usually begins with Single Entry Approach (SEnA), a 30-day conciliation-mediation process to settle the issue before it escalates to a full-blown labor case.

Note on Non-Diminution of Benefits: Employers cannot stop paying their share of contributions as a form of "penalty" or "cost-cutting" if they have already been providing it, as this violates the principle of Non-Diminution of Benefits under the Labor Code.

Summary Table: Agency Contact for Complaints

Agency	Primary Law	Action Office
SSS	R.A. 11199	SSS Branch - Legal/Member Services
PhilHealth	R.A. 11223	PhilHealth Regional/Local Office
Pag-IBIG	R.A. 9679	Pag-IBIG Branch - Enforcement Dept

Final Reminder

Keep all payslips, BIR Form 2316, and Certificate of Employment safely. These documents are your primary evidence in proving that deductions were made but not remitted.