SSS Death Benefit & Contribution Issues When an Employee Goes AWOL
A comprehensive legal-practitioner’s guide (Philippine context)
1. Overview
The Social Security System (SSS) provides death, funeral, sickness, maternity, disability, unemployment and retirement benefits to workers in the private sector. When an employee “goes AWOL” (absence without official leave) unique issues arise: Who must continue paying contributions? How are death benefits computed if the worker subsequently dies? Can the family still claim a pension when contributions were interrupted? This article distils the entire Philippine legal and procedural landscape—statutes, regulations, jurisprudence and practical remedies—without relying on external searches.
2. Statutory Framework
| Instrument | Key Provisions Relevant to AWOL Scenarios |
|---|---|
| Republic Act 11199 (Social Security Act of 2018) | §§8-13: mandatory coverage & contributions; §14: liability for non-remittance; §17–§19: death and funeral benefits; §28-§28-A: penal sanctions |
| Implementing Rules & Regulations (IRR), 2019 | Rule 3 (Coverage), Rule 6 (Collection & Payments), Rule 12 (Death Benefits) |
| Revised Penal Code (through RA 11199) | makes non-remittance malum prohibitum (special law offense) with fines + imprisonment |
| Labor Code (Book VI) & DOLE DO 147-15 | abandonment defined; due-process requirements for termination |
3. Coverage & Contribution Duties
Mandatory Coverage: All private-sector employees—regular, casual, probationary, project-based and even part-timers—are compulsorily covered from Day 1 (§8-A, RA 11199).
Employer Obligation to Remit:
Contributions fall due on the last day of the month following the applicable month (Schedule of Contributions, SSS Circular 2019-012).
Non-remittance entails:
- 2% per month penalty (simple interest) until fully paid;
- criminal liability (fine ₱5,000-₱20,000 and/or 6-12 years imprisonment);
- solidary liability of corporate officers (§28-e, RA 11199).
Effect of AWOL:
- Employment Status: Until the employer completes due-process termination (notice-hearing-notice), the employee is still legally employed—even if physically absent. Contributions therefore continue to accrue.
- After Lawful Termination: Coverage ceases only at the end of the month of separation. The worker may register as a Voluntary Member (VM) or Self-Employed (SE) to avoid gaps.
Delayed Posting vs. Non-Remittance:
- Delayed posting (employer paid but SSS records not updated) can be cured by filing an R-5 Adjustment Form with payroll proofs.
- Non-remittance requires settlement of principal + penalties; SSS offers Contribution Penalty Condonation Programs (last in 2021) subject to Board approval.
4. Death Benefit Essentials
| Requirement | Pension (Monthly) | Lump-Sum (One-Time) |
|---|---|---|
| Minimum Credited Contributions | ≥ 36 monthly contributions and at least 6 within the last 12 months | < 36, or no qualifying six-in-twelve |
| Formula | ₱300 or 20% of AMSC* + 2% of AMSC for each CYS** in excess of 10 | AMSC × CYS or 12 × monthly pension—whichever higher |
| Beneficiaries | Primary: dependent spouse (until remarriage) and minor/unmarried children < 21 or incapacitated; Secondary: legitimate parents; Others: designated beneficiaries or legal heirs |
Same hierarchy |
| Funeral Benefit | ₱20,000 – ₱60,000 depending on AMSC | N/A |
*AMSC = Average Monthly Salary Credit (top 60 or all, whichever fewer). **CYS = Credited Years of Service (total years with at least 6 posted months).
5. Typical Problems in AWOL-Linked Death Claims
| Problem | Legal/Procedural Impact | Practical Fix |
|---|---|---|
| Unposted months during AWOL | May reduce CYS; pension may convert to lump-sum | File Contribution Verification Form + payslips |
| Employer has not issued LOA/termination | SSS may treat months as covered but delinquent → still creditable once paid | Beneficiaries may request SSS to bill employer; or sue under Art 303 Labor Code |
| Employer closed down | Beneficiaries shoulder burden of proof | Submit BIR Alpha-lists, bank records, coworkers’ affidavits; SSS Legal can pursue owners |
| Conflicting beneficiary claims (spouse vs. parents) | SSS withholds release until resolved | Secure PSA marriage certificate / CENOMAR; if bigamy alleged, file interpleader in RTC |
| Member no longer updated as VM | Contributions gap → may miss 6-of-12 rule | Pay voluntary contributions retro within 5-year prescriptive period (subject to SSS approval) |
6. Employer Liability & Defenses
Civil – SSS may issue a Warrant of Distraint/Levy; assets sold after 30 days.
Criminal – Prosecution is absolute liability; good faith is not a defense (People v. Gozo, G.R. 199210, 20 June 2012).
Director/Officer Liability – Personal liability attaches when signatory to SSS forms or when directly responsible for remittance.
Statute of Limitations – 20 years from delinquency (Article 1149 Civil Code analogously applied; RA 11199 is silent).
Possible Defenses:
- Employee truly resigned and was paid in full (submit quitclaim + SSS Form E-1/OW-1);
- Force majeure prevented remittance (rarely accepted—must show bank rejection, calamity evidence).
7. Jurisprudence Snapshot
| Case | Gist | Lesson |
|---|---|---|
| People v. Gozo (2012) | Employer president convicted for ₱1.1 M unremitted contributions; SC affirmed absolute liability | Malice or damage to SSS is irrelevant; act itself punished |
| Moonwalk Dev. Corp. v. SSS (G.R. 47508, 1990) | Company argued AWOL drivers not employees; SC ruled still employees until valid dismissal | Employer can’t evade contributions by alleging abandonment without due process |
| Cagayan Robina Sugar Milling v. SSS (G.R. 207432, 2022) | Seasonal workers remain covered during lay-off | Employers must report even intermittent hires |
| SSS v. Davila (old CA ruling) | Beneficiaries allowed to pay delinquency to perfect claim | Heirs may “advance” employer’s liability, then sue for reimbursement |
8. Claims Process for Heirs of an AWOL Worker
Gather Documents:
- Death Certificate (PSA)
- Claimant’s IDs; Marriage & Birth Certificates
- Member Data Record (if available)
- Proof of employment & payroll during AWOL months
File Death & Funeral Claim Forms at any SSS branch or online.
Contribution Verification: SSS will issue DDR-4 listing missing months.
Settlement of Delinquency:
- SSS sends Demand Letter to employer; if unpaid, heirs may settle to avoid delay—create Memorandum of Undertaking to recover later.
Evaluation & Release: SSS processes within 10-20 days once records complete; pension credited to UMID-ATM account.
9. Compliance & Risk-Management Tips for Employers
- Document Termination Properly – Always issue Notice to Explain + Notice of Termination; keep copies for SSS audits.
- Timely R3/R5 Filing – Upload contribution files through SSS Extranet to ensure posting even if payment is delayed.
- Exit Clearance Checklist – Include SSS Form RS-5 (voluntary registration) so departing employees can switch to VM immediately.
- Maintain 10-Year Payroll Archive – RA 11199 audits can cover up to two decades.
- Enroll in PRN (Payment Reference Number) Auto-Debit – Avoid penalties when HR forgets to remove an AWOL employee.
10. Recommendations for Employees & Families
- Monitor Contributions Online through My.SSS at least quarterly.
- Continue as Voluntary Member immediately after separation—no need to wait for Certificate of Employment.
- Keep Original Payslips/Contracts—these are gold when reconstructing gaps.
- File Early – Death claims prescribe in 4 years from date of contingency for non-dependent heirs (Article 1146 Civil Code analogy).
- Seek Condonation Windows – SSS regularly offers amnesty; watch for circulars.
11. Conclusion
An employee’s unexplained absence does not suspend the statutory duty to contribute to the SSS, nor does it extinguish the right of his or her dependents to claim death benefits. Employers must exercise meticulous HR and payroll discipline; employees should track their own contributions and shift to voluntary status when needed. Where delinquency exists, Philippine law provides both punitive sanctions and remedial paths—penalty condonation, contribution adjustments, and even judicial relief—so that the core social-insurance objective of protecting Filipino families in times of bereavement remains intact.
This article is for legal information only and does not create an attorney-client relationship. For specific cases, consult a Philippine labor-law specialist or the SSS Legal & Enforcement Division.