If your employer has been deducting SSS and PhilHealth contributions from your paycheck but you worry they may not be sending the money to the government, or if they are skipping deductions entirely, you are dealing with a common but serious issue under Philippine law. Non-remittance violates clear legal duties, can reduce or delay your future benefits, and exposes employers to heavy financial and even criminal consequences. This article explains the obligations, the penalties that apply to employers, how non-remittance affects you in real life, and the practical steps you can take to check your records and protect your rights.

Employer Obligations for SSS and PhilHealth Contributions

Every private-sector employer in the Philippines must register employees with both the Social Security System (SSS) and PhilHealth, deduct the employee’s share from monthly compensation, add the employer’s own share, and remit the total amount on time together with accurate reports.

For SSS, contributions cover retirement, disability, sickness, maternity, and salary loans. Under Section 22(a) of Republic Act No. 11199 (the Social Security Act of 2018), employers must remit contributions within the first ten (10) days of the month following the applicable period. The employer is fully liable for both shares.

For PhilHealth, contributions fund health insurance benefits. Employers follow a schedule based on their PhilHealth Employer Number (PEN): those ending in 0–4 remit between the 11th and 15th of the following month, while those ending in 5–9 remit between the 16th and 20th. All employers must use the Electronic Premium Remittance System (EPRS) for reporting and payment.

These obligations exist whether the employee is a regular worker, probationary, or project-based. Failure at any step — registration, correct deduction, timely remittance, or accurate reporting — triggers liability.

Penalties for Non-Remittance of SSS Contributions

SSS treats non-remittance seriously because it directly harms workers’ long-term security.

Monetary penalties — If any contribution remains unpaid, the employer must pay the principal amount plus a penalty of two percent (2%) per month from the due date until fully paid (RA 11199, Section 22(a)). The penalty keeps accruing even after the employer eventually pays the principal. SSS can collect unpaid amounts in the same manner as unpaid taxes and may garnish bank accounts or other assets.

Criminal penalties — Under Section 28(e) of RA 11199, any person who fails or refuses to register employees, deduct contributions, or remit them faces a fine of not less than ₱5,000 nor more than ₱20,000, or imprisonment of not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the court’s discretion. Managing heads, directors, or partners of corporations can be held personally liable.

Presumption of misappropriation — If the employer deducts the employee’s share but fails to remit it within thirty (30) days from the due date, the law presumes the employer misappropriated the money. This triggers penalties under Article 315 of the Revised Penal Code (estafa), which can mean additional imprisonment depending on the amount involved (RA 11199, Section 28(h)).

Liability for damages and benefits — Even more importantly for workers, non-remittance does not cancel your right to benefits. If your posted contributions are lower than they should be because of employer fault, the employer must pay SSS damages. For pension cases, this can equal the accumulated pension due or five (5) years of pension, whichever is higher, plus dependents’ pension (RA 11199, Section 24(b)). SSS Circular 2025-001 provides guidelines on how employers are held accountable when their non-compliance prevents or reduces benefit payments. The employee or beneficiary can still receive benefits from SSS, which then pursues the employer for reimbursement plus damages.

The prescriptive period for SSS to collect or for you to assert claims related to delinquency is generally twenty (20) years.

Penalties for Non-Remittance of PhilHealth Contributions

PhilHealth imposes its own monetary sanctions and can support criminal action for willful violations.

Monetary penalties — Late or non-remittance triggers a surcharge of two percent (2%) of the total premiums due or ₱200, whichever is higher, for each month of delay. A single day of delay counts as a full month, and the surcharge compounds monthly. This is based on PhilHealth Circular 2020-0005 and remains the referenced standard in current compliance reminders. Employers in arrears may occasionally qualify for one-time interest waiver or restructuring programs (such as the 2026 program covering contributions up to December 2024), but these are not automatic and usually require full payment of principal contributions.

Criminal and administrative liability — Deliberate failure or refusal to deduct or remit PhilHealth contributions after collecting them from employees can lead to fines and imprisonment under the National Health Insurance Act (RA 7875, as amended by RA 10606 and strengthened by the Universal Health Care Act, RA 11223). Corporate officers may also face personal liability. In practice, PhilHealth focuses first on collection and surcharge, but repeated or large-scale violations can escalate to criminal complaints.

Non-remittance can also affect benefit claims. While PhilHealth aims for continuous coverage, unpaid premiums may result in denied or delayed claims until the account is cleared or the employer settles.

How Non-Remittance Affects You as an Employee or Former Employee

Many workers only discover problems years later — when applying for an SSS salary loan, maternity benefit, or retirement pension and seeing far fewer posted contributions than expected based on their salary history. For PhilHealth, you may face issues filing claims or renewing membership.

The good news is that the law protects you. SSS can still grant benefits and recover from the employer. PhilHealth has mechanisms to address gaps caused by employer fault. However, incomplete records create delays, require extra documentation (such as affidavits or employer certifications), and can reduce loanable amounts or pension levels until corrected.

Common real-world scenarios include small businesses with cash-flow problems that deduct but delay remittance, or employers who never registered employees at all. In both cases, you have remedies.

Step-by-Step: What You Can Do If You Suspect Non-Remittance

Check your official records immediately.
Create or log into your My.SSS account at the official SSS website to view posted contributions, generate a Statement of Contributions, and see gaps. For PhilHealth, use the member portal or app (or visit a local office) to check premium payment history and membership status. Do this every six to twelve months, especially before any claim or loan application.
Gather your evidence.
Collect payslips showing deductions, employment contract or certificate of employment, SSS and PhilHealth numbers, and any resignation or separation documents. If payslips are unavailable (common in smaller firms), gather bank records, affidavits from co-workers, or other proof of employment and salary.
Report to the responsible agency.
File a report or complaint with the nearest SSS branch (or through available online channels) detailing the employer, period of employment, and suspected non-remittance. SSS has dedicated processes for delinquency cases. Do the same with PhilHealth through their customer service channels or local office. You can start with one agency and reference the other.
Consider a labor complaint if needed.
If deductions were made but never remitted, this can also violate rules on proper handling of employee withholdings. You may file a complaint with the Department of Labor and Employment (DOLE) or the National Labor Relations Commission (NLRC) for money claims or violation of labor standards, in addition to the agency-specific complaints.
Follow through on investigation and collection.
SSS or PhilHealth will investigate, issue notices to the employer, and pursue collection (including possible court action or asset levy). You may be asked to provide additional statements or attend hearings. The process often takes several months but is designed to be accessible without a private lawyer for initial complaints.
Explore criminal action when appropriate.
For clear cases of deduction without remittance, especially involving larger amounts or repeated behavior, you or SSS/PhilHealth can file a criminal complaint with the prosecutor’s office. The presumption of misappropriation under RA 11199 strengthens these cases.

If you are already separated from the employer or living abroad, you can still file through an authorized representative or by mail/email with notarized documents. The long prescriptive periods work in your favor.

Common Challenges and Practical Realities

Employees in small or informal establishments often lack complete payslips or face employers who promise to “fix it later.” Provincial workers or those who frequently change jobs may find follow-up difficult. Foreigners employed in the Philippines are generally covered under the same rules (subject to any reciprocity agreements), and their employers must comply; expat workers should verify their records just like local employees.

Bankruptcy or closure of the company does not erase the obligation. SSS and PhilHealth claims often have priority, and responsible officers can still be pursued. Condonation or restructuring programs appear from time to time (especially after economic shocks), giving employers a chance to settle with reduced or waived penalties — but these usually require the employer to come forward and pay the principal.

Frequently Asked Questions

What happens if my employer deducted SSS or PhilHealth from my salary but never remitted it?
The deducted amount still belongs to your social security and health accounts. The employer remains fully liable for the principal, penalties, and any resulting damages. You can still pursue benefits, and the agencies will go after the employer.

Will I still receive my SSS pension, loan, or PhilHealth benefits if contributions were not remitted?
In most cases yes for SSS — the agency can pay benefits and recover from the employer, including damages for any shortfall caused by non-remittance. PhilHealth coverage and claims may face temporary issues until premiums are settled, but employer liability provisions exist to protect members.

How do I check whether my contributions are actually being remitted?
Log into My.SSS at sss.gov.ph for posted contributions and statements. For PhilHealth, use their member portal, app, or visit a branch. Compare posted amounts against your payslips over time. Gaps or consistently missing months are red flags.

What exact penalties does an employer face for not remitting SSS contributions?
The employer owes the unpaid contributions plus a 2% per month penalty until paid in full. Criminal penalties include fines of ₱5,000 to ₱20,000 and/or imprisonment from six years and one day to twelve years. If the employer deducted but failed to remit within 30 days, it is presumed misappropriation under the Revised Penal Code.

Is non-remittance of PhilHealth also punishable by jail time?
Yes. Willful failure or refusal to deduct and remit PhilHealth contributions can lead to fines and imprisonment under the National Health Insurance Act and its amendments, in addition to the monthly surcharge of 2% or ₱200 (whichever higher), compounded monthly.

How long do I have to take action against a former employer?
For SSS-related collection and claims, the prescriptive period is generally up to twenty (20) years from discovery of the delinquency or from when the benefit accrues. Act as soon as you discover gaps to avoid complications with evidence or employer viability.

Can foreigners or employees of foreign-owned companies in the Philippines file complaints?
Yes. The same rules and remedies apply. Foreign employees should ensure they have valid SSS and PhilHealth numbers and regularly check their records. Corporate officers remain liable regardless of the company’s ownership.

Are there programs that reduce penalties for employers with past due contributions?
Yes. Both SSS and PhilHealth have offered condonation, restructuring, or interest-waiver programs at various times (including a 2026 PhilHealth interest waiver window for certain arrears). These usually require the employer to settle the principal contributions and meet specific conditions. Check the official websites for current offerings.

Key Takeaways

Employers must deduct, add their share, and remit SSS and PhilHealth contributions on strict schedules — failure triggers automatic penalties that continue to grow.
SSS imposes a clear 2% per month penalty plus potential criminal liability (fines up to ₱20,000 and imprisonment up to 12 years) and damages for reduced benefits.
PhilHealth adds a monthly surcharge (2% or ₱200 minimum, compounded) and supports criminal action for willful non-remittance.
Your right to benefits is protected by law; non-remittance does not erase coverage, though it can cause delays and require extra steps to correct records.
Regularly check your My.SSS account and PhilHealth records — early detection makes resolution much easier.
You can report non-remittance directly to SSS and PhilHealth branches or portals; gather payslips and employment proof to support your case.
Corporate officers can be held personally liable, and collection actions (including asset garnishment) are available to the agencies.
Acting promptly protects your future retirement, health benefits, and loans while helping enforce compliance that benefits all covered workers.

The social security system exists to protect ordinary Filipinos and legal workers in the Philippines. When employers fail to remit, the law gives you clear tools to set things right. Start by checking your records today — it is the most empowering first step you can take.