Executive Summary

Private-sector employees must receive their wages in full and on time. Employers may deduct from pay only when a law expressly allows it or the employee freely authorizes a lawful deduction in writing for a legitimate purpose. “Creative” or punitive deductions (e.g., for breakage, uniforms, losses, “training damages,” fines) are often illegal. Separately, employers are mandated to register workers with the Social Security System (SSS), deduct the employee’s share, add the employer’s counterpart, and remit both on or before the due date. Withholding the employee’s SSS share and failing to remit it—while showing it on the payslip—is not just a labor infraction; it is typically a criminal offense under the SSS law, and corporate officers may be held personally liable.

This article maps: (1) what deductions are allowed vs. prohibited, (2) SSS duties and penalties for non-remittance, (3) how to spot violations on your payslip/SSS record, and (4) step-by-step remedies (administrative, civil, and criminal), with templates and quick computations.

Part I — Salary Deductions: What’s Allowed, What’s Not

A. Golden Rule

No deduction from wages unless:

Authorized by law; or
Authorized in writing by the employee for a lawful and specific purpose; and
Does not effectively push pay below the minimum wage for covered days nor defeat labor standards.

B. Common Lawful Deductions

Statutory: SSS, PhilHealth, Pag-IBIG (employee share only), and withholding tax.
Union dues/agency fees: if covered by a CBA and with proper authorization.
Salary loans/advances: if documented and with written consent indicating the schedule and amount per cut-off.
Court-ordered deductions**:** e.g., garnishments, support.

C. Deductions That Are Often Illegal (or heavily regulated)

Company losses/shortages/breakages charged automatically without due process and without proof of fault.
Uniforms/tools that are required to perform work, unless a reasonable sharing is expressly agreed and consistent with wage rules; the default is employer’s account.
“Fines” or “penalties” for tardiness, errors, customer complaints, quality control, or “discipline” not grounded on a lawful policy and imposed in lieu of due process.
Cash bonds/deposits for possible losses without DOLE authority (narrowly allowed only in specific industries and subject to strict conditions, accounting, and interest).
Training bonds that are punitive, grossly disproportionate, or untethered to actual, substantial training costs (unenforceable as penalties; any offset must be reasonable and contract-based).
Passing the employer’s SSS/PhilHealth/Pag-IBIG share to the employee (flatly prohibited).
“Processing fees,” “admin charges,” “uniform amortization,” etc., when these are not in the contract/policy or when they drag pay below minimum wage.

Absences/No work, no pay are not “deductions”; they are non-accrual of wages for unworked days consistent with law and policy. But docking paid days (e.g., SIL, holidays) contrary to rules is improper.

Part II — SSS Contributions: Duties, Deadlines, and Penalties

A. Employer Obligations (core duties)

Register the company and enroll every employee upon hiring.
Compute contributions correctly using the official contribution schedule.
Deduct only the employee share from wages; add the employer share.
Remit the total (employee + employer shares) to SSS on or before the monthly deadline using the prescribed payment reference number.
Report new hires, separations, and changes promptly; issue payslips reflecting contributions actually remitted, not merely “deducted.”

B. What Counts as Violation

Non-registration of employees.
Under-deduction/under-remittance or non-remittance of contributions by the due date.
Withholding the employee’s share from wages but failing to remit it (treated as misappropriation/estafa-like conduct under the SSS law).
Falsification/misrepresentation in SSS reporting.

C. Sanctions (high level)

Monetary penalties on delinquent contributions (monthly penalty/interest running from due date until fully paid), collection surcharges, and assessments.
Criminal liability against the employer and responsible officers for failure/refusal to register or remit, punishable by fine and/or imprisonment under the Social Security Act.
Civil actions for collection; SSS may garnish and levy assets and file cases in its own name.
Benefit denials/delays: unremitted contributions may delay or reduce employee benefits (sickness, maternity, disability, retirement) until the delinquency is settled, though SSS may still pursue the employer and credit the member as the law provides.

Part III — How to Spot Problems Early

A. On Your Payslip

Compare the SSS deduction shown with the official schedule for your salary bracket.
Watch for employer share lines — they should not be deducted from you.
Repeated “SSS deducted” with no posting in your SSS account is a red flag.

B. In Your SSS Online Record

Log into your My.SSS account and check Contributions.
Look for gaps or posted amounts below the correct bracket.
Confirm employment dates match your actual service.

Keep screenshots and download contribution history periodically—especially before maternity/retirement/sickness claims.

Part IV — Remedies & Enforcement (Employee Playbook)

Step 1: Internal Demand (Paper Trail)

Write HR/Payroll to (a) halt illegal deductions, (b) recompute past pay, and (c) remit or reconcile your SSS record. Give a reasonable deadline (e.g., 5–10 working days). Attach proof (payslips, SSS screenshots).

Step 2: SEnA/DOLE & Money Claims

File a SEnA request at the DOLE Regional Office (Single-Entry Approach) for fast conciliation.
If unresolved, file a money-claims/illegal deduction case with the Labor Arbiter (NLRC) seeking:
- Refunds of illegal deductions;
- Differentials to restore minimum wage compliance;
- Damages/attorney’s fees when warranted.

Step 3: SSS Complaint (Employer Delinquency)

File a coverage/remittance complaint with SSS (branch/online). Provide employment details, payslips, and any acknowledgment that SSS was “deducted.”
SSS can issue assessments, collect with penalties, and prosecute responsible officers.

Step 4: Criminal & Ancillary Actions

For non-remittance of employee-withheld contributions: request SSS/legal to pursue criminal charges under the Social Security Act; provide your evidence.
If the employer forged or falsified records, consider falsification complaints.
If threats/retaliation occur, escalate to DOLE and, where applicable, law enforcement.

Step 5: Separation/Final Pay

Upon resignation/termination, demand a final pay breakdown (earned wages, pro-rated 13th month, SIL conversion, refunds of illegal deductions, and SSS proof). Unlawful offsets against final pay are contestable at DOLE/NLRC.

Part V — Employer Compliance Checklist (Preventive)

☐ Written payroll policy listing only lawful deductions and the written-consent template.
☐ On-time SSS remittance using correct brackets; reconcile PRN vs. payroll.
☐ Payslip transparency (show period, rates, hours/days, each deduction’s legal basis).
☐ No shifting of employer SSS share to employees.
☐ Discipline via due process, not wage “fines.”
☐ Cash bond use only where allowed, with DOLE oversight and separate accounting with interest.
☐ Training bond terms: proportional, time-bound, tied to real training costs, not used to restrain employment.
☐ Immediate exit clearance and final pay release within policy timelines; issue COE on request.

Part VI — Quick Computations & Examples

Example 1 — Illegal “Breakage” Deduction

Net illegal deductions over 3 months: ₱6,000.
Remedy: Refund ₱6,000 + any underpaid wage differentials if the deductions pulled pay below statutory minimum + legal interest from date of unlawful withholding.

Example 2 — SSS Under-Remittance

Monthly basic salary: ₱20,000 (assume bracket X).
Payslip shows employee share deducted for 8 months, but SSS record has 0 posting.
Remedies: SSS assessment of employee + employer shares for 8 months plus penalties, crediting to the member’s account; potential criminal case vs. employer/officers; employee may claim damages if benefits were delayed/denied.

Part VII — Templates

A. Demand to Stop Illegal Deductions (to HR/Payroll)

Subject: Unlawful Wage Deductions — Demand for Cessation and Reimbursement I respectfully demand the immediate cessation of unauthorized deductions reflected on my payslips dated [dates] totaling ₱[amount] (items: [list]). These are not authorized by law or my written consent. Kindly recompute my pay and refund the amounts within 7 working days, and confirm future compliance. I reserve my rights under the Labor Code and related regulations.

B. SSS Non-Remittance Complaint (to SSS & Employer)

Subject: Employer Delinquency — Non-Remittance of SSS Contributions I am an employee of [Company] (from [date] to [date]). My payslips show SSS deductions for [months], yet my My.SSS account reflects no/insufficient postings. Please investigate and assess the employer for full remittance with penalties, credit the missing contributions to my account, and advise me of the resolution.

Part VIII — FAQs

Can my employer deduct the cost of a broken item I handled? Only after proof of your fault/negligence and via lawful process; blanket, automatic charges are generally illegal.

We signed a training bond—can they deduct ₱100,000 if I resign early? Only reasonable, proportionate liquidated damages tied to actual training costs and a reasonable lock-in tend to be upheld. Punitive sums are susceptible to reduction or invalidation; offsets still need written consent and must not violate wage laws.

My payslip shows SSS deductions but SSS says none were remitted. What now? File with SSS immediately. Non-remittance of employee-withheld contributions carries penalties and possible criminal action against responsible officers. You can also pursue money claims/damages if you suffered loss (e.g., delayed maternity/sickness benefit).

Can the company charge me for uniforms? If the uniform is required for work, the default is the employer bears the cost. Any sharing must be reasonable, agreed, and compliant with wage rules (not dragging pay below minimum).

Can they deduct company’s SSS share from my salary? Never. The employer’s share is the employer’s cost.

Bottom Line

Deductions from wages are strictly limited; when in doubt, the presumption favors the employee’s full wage.
SSS contributions are not optional: employers must deduct, counterpart, and remit on time. Withholding the employee’s share and failing to remit invites penalties and criminal liability.
Employees should audit payslips, monitor SSS postings, and act quickly through DOLE/SEnA, NLRC, and SSS channels.
Employers should enforce discipline via due process, not wage “fines,” and treat SSS deductions as trust monies—remit on time, every time.

This article is for general information and does not replace tailored legal advice. For case-specific action, consult a Philippine labor or social security practitioner or your local PAO/IBP/SSS office.