Employer’s Duty to Remit Additional SSS Contributions for Employees (Philippine Setting, 2025)
1. Statutory Foundations
| Law / Issuance | Key Provisions |
|---|---|
| Republic Act No. 11199 — Social Security Act of 2018 | § 18 fixes contribution rates and the mechanism for automatic rate-escalation (2019 – 2025); § 22 compels employers to deduct the employee share and add the corresponding employer share, then remit the full amount to the SSS on or before the prescribed deadline. |
| Presidential Decree 626 — Employees’ Compensation (EC) Law | Makes the EC premium an exclusive employer obligation. |
| SSS Circulars / Resolutions (e.g., 2023-002, 2024-007) | Implement the rate-increase timetable, electronic Payment Reference Number (PRN) system, and the Workers’ Investment & Savings Program (WISP). |
Bottom line: Under RA 11199, employers must continually adjust and remit contributions whenever the law or an implementing issuance raises the rate or the employee’s Monthly Salary Credit (MSC).
2. Current Mandatory Rates (effective Jan 2025)
| Component | Who Pays? | Rate on MSC* |
|---|---|---|
| Social Security | Employer | 9.5 % |
| Employee | 4.5 % | |
| Employees’ Compensation (EC) | Employer | 1.0 % (max ₱30 per month) |
| WISP (Tier 1) | Employer | 1.0 % (part of 14 % total) |
| Employee | 0.5 % (part of 14 % total) |
*MSC ceiling: ₱30,000 in 2025 (adjusted every other year).
3. What Counts as an “Additional” Contribution?
| Scenario | Is Employer Required to Remit? | Explanation |
|---|---|---|
| Statutory Rate Hike (e.g., 12 % → 14 %) | Yes | Rate increases are automatic; employer must compute higher amounts starting the effectivity month and remit both shares. |
| Salary Increase of an Individual Employee | Yes | Higher MSC pushes the employee into a new bracket; employer must withhold/shoulder the difference. |
| Retroactive Under-remittance | Yes | If SSS finds past underpayments, the employer must pay the deficiency plus 2 % interest per month. |
| SSS Salary/Calamity Loan Amortizations | Yes (if deducted from salary) | Employer acts as collecting agent; failure to remit on time carries the same 2 % penalty. |
| ECC Premium | Yes | Solely an employer burden, remitted together with SSS contributions. |
| WISP-Plus (voluntary top-up) | No | Only the employee can opt in; employer’s role ends after salary deduction and remittance. |
| Amount Exceeding the Ceiling | No | SSS will not accept contributions above the MSC ceiling. Companies may grant a private retirement fund, but it is outside SSS. |
4. Deadlines & Mechanics of Remittance
- Payment Window Small employers (below ₱20k total monthly contribution): until the last day of the following month. Large employers: 10 th day after the applicable month.
- PRN System — employers generate a PRN for every payroll cycle via My.SSS or accredited collection partners.
- Modes — over-the-counter, bank auto-debit, GCash/PayMaya, UnionBank OneHub, etc.
- Records — Employers must keep payroll registers and electronic SSS R-3 or Electronic Contribution Collection List (e-CCL) for at least four (4) years for audit.
5. Penalties, Interest, and Criminal Liability
| Violation | Civil Penalty | Criminal Exposure (RA 11199 § 28) |
|---|---|---|
| Late or non-remittance | 2 % per month on both shares until fully paid | Fine ₱5,000 – ₱20,000 and/or imprisonment of 6 yrs 1 day – 12 yrs |
| Fraudulent reporting (e.g., artificial MSC) | Immediate payment of deficiency plus 3 % monthly interest | Same as above, aggravated if falsification is proven |
| Failure to submit reports | Administrative fine | Possible prosecution if coupled with non-remittance |
SSS may issue a Warrant of Distraint, Levy, and/or Garnishment (WDLG) against the employer’s bank accounts or property.
6. Jurisprudence Snapshot
| Case | Gist |
|---|---|
| SSS v. Moonwalk Development & Housing Corp. (G.R. 76438, Aug 24 1988) | Employer held civilly liable for unremitted contributions even after dissolution; corporate officers personally liable. |
| People v. Dizon (G.R. 76755, Jan 21 1991) | Affirmed that good-faith belief in non-coverage is not a defense against the criminal charge for non-remittance. |
| Aliling v. Felix/INSCO (G.R. 155234, Sept 7 2005) | Under-reporting MSC constitutes constructive dismissal and entitles employee to damages on top of SSS penalties. |
7. Special Employment Situations
- Household Employers – required to enroll domestic workers and shoulder the employer share; PhilHealth & Pag-IBIG obligations run in parallel.
- Overseas Filipino Workers (OFWs) – recruitment agencies act as employers for seafarers; they must remit both SSS and EC shares prior to deployment.
- Apprentices / Learners – covered once wage is paid; allowances count toward MSC.
- Gig / Platform Workers – still classified as employees if “employer–employee” relationship exists; platforms risk joint liability.
8. Compliance Tips for Employers
- Automate payroll to auto-recalculate MSC whenever salary changes or statutory rates rise.
- Monitor SSS circulars (usually issued every 2–3 years) for advance notice of rate or ceiling adjustments.
- Use batch PRN generation to avoid penalties from mismatched PRNs.
- Conduct periodic self-audit; reconcile SSS Online records against payroll to spot gaps early.
- Join condonation programs (offered roughly every 5 years) to waive penalties on past delinquencies.
9. Can Employers Pre-Pay or Contribute More than Required?
- SSS blocks excess amounts above the current ceiling.
- A company can voluntarily shoulder part of the employee share as a fringe benefit, but the remitted amount must still match the statutory table; any excess goes to the employee as taxable cash.
- Corporate retirement plans under the Labor Code (Art. 302) or BIR-registered pension trust remain separate from SSS and do not offset the statutory obligation.
10. Key Take-Aways
- **“Additional contributions” are not optional: they arise whenever the law or the employee’s compensation triggers a higher SSS liability.
- Employers must remit both their share and whatever they have withheld from employees on time.
- Non-remittance carries stiff civil and criminal sanctions, including asset seizure.
- Compliance is a moving target—rates escalate biennially until 2025 and the MSC ceiling is reviewed every other year. Keeping payroll systems and HR policies updated is the surest defense.*
Disclaimer: This material is for informational purposes only and not a substitute for formal legal advice. For edge cases or contested assessments, consult counsel or the SSS Legal & Compliance Division.