Overview: Why this matters

In the Philippines, the Social Security System (SSS) is a compulsory social insurance program for private-sector employees and their employers. Employers are required to (1) register themselves and their employees, (2) correctly report employee compensation used as the basis of contributions, (3) deduct the employee share from pay, (4) add the employer share, and (5) remit the total contributions to SSS on time.

When an employer underpays (e.g., declares a lower salary) or fails to remit (even after deducting from wages), the employee can be harmed through:

reduced or delayed benefit eligibility (sickness, maternity, disability, retirement, death/funeral),
problems with loans (salary/calamity loans) or benefit claims due to missing posted contributions,
incorrect credited years of service and average monthly salary credit computations.

Philippine law places primary responsibility on the employer to remit; employees should not be made to carry the burden of employer delinquency. Still, in practice, you should act quickly to protect your record and benefits.

Key terms and common schemes

1) “Failed to remit” / “non-remittance”

The employer deducts the employee share but does not send it to SSS (or does not send both shares) or sends it late.

2) “Underpaid contributions” / “underreporting”

The employer remits, but uses a lower reported salary (lower Monthly Salary Credit basis) than what the employee actually earns. This can happen through:

declaring only “basic pay” while excluding regular allowances that are treated as part of compensation,
misclassifying an employee as a “contractor” or “consultant” to avoid the employer share,
reporting the employee as part-time or lower-pay bracket without basis.

3) “Unregistered employee” / “no coverage”

The employee is not reported/registered with SSS at all, despite being an employee.

Your rights in plain terms

Your employer must remit accurate contributions based on your covered compensation and statutory contribution tables.
If the employer fails to remit, the employer is generally liable for the unpaid contributions plus penalties and may face administrative and criminal consequences under the Social Security Act.
Deductions from your salary for SSS should correspond to remittances. If your payslip shows SSS deductions but SSS has no posted contributions, that’s a red flag.
Retaliation is risky for employers. Employees who assert statutory rights and file complaints may have remedies if they are punished or dismissed for doing so.

Step 1: Confirm the problem (and identify which kind)

Before escalating, determine whether it’s missing remittances, underreporting, or both.

A. Check your SSS posting record

Use your My.SSS account (or request a contribution printout/record at an SSS branch).
Compare months worked vs months posted.
Look for gaps, delayed postings, or postings at a suspiciously low bracket.

B. Check your payroll records

Gather:

payslips showing SSS deductions,
employment contract and compensation structure,
proof of actual pay (payroll register extracts if available, bank crediting records),
company ID, appointment papers, or employment certificate.

C. Red flags that point to underreporting

Your take-home pay suggests one bracket, but SSS contributions reflect a lower bracket.
Your pay increased, but reported contributions never increased.
Regular allowances are paid monthly but appear ignored in the reporting.

Step 2: Try an internal resolution (but document everything)

Many issues are “fixed” only when raised, especially posting delays or payroll errors.

What to do

Ask HR/Payroll for a written explanation:
- Which months were remitted?
- Under what SSS employer number?
- What salary basis was reported?
Request proof of remittance:
- official receipt/payment reference, remittance reports, or SSS payment confirmation details.
Send a short written follow-up after any meeting (email/text) summarizing what was said.

Why this matters

If the employer is acting in good faith, they can correct reporting and pay arrears.
If not, your documentation becomes evidence for SSS enforcement.

Step 3: Protect yourself with a formal written demand (optional but powerful)

If internal requests go nowhere, a demand letter can be effective. It signals seriousness and creates a clear timeline.

What to include

Your full name, SSS number, position, employment dates.
Months affected and nature of violation:
- “deducted but not remitted,” and/or
- “underreported salary basis.”
Attach proof (payslips, SSS record screenshot/printout).
A clear request:
- remit/pay deficiencies and penalties to SSS,
- correct reporting to reflect actual compensation,
- provide proof of compliance.
A reasonable deadline (e.g., 7–15 days).
A note that you will elevate to SSS for enforcement if not resolved.

(If you want, I can draft a demand letter template you can fill in.)

Step 4: File a complaint with SSS (the primary enforcing agency)

Where to file

At the SSS branch servicing your employer (or where you are registered), typically through the branch’s Legal/Collection or designated complaint desk.
Some cases may be referred internally for employer verification, assessment, and possible prosecution.

What to bring (practical checklist)

Government ID
SSS number and My.SSS screenshots/printouts (contribution gaps / low bracket postings)
Payslips showing SSS deductions
Proof of compensation (contract, pay adjustments, bank crediting record)
Employer details: company name, address, contact, and if known, SSS employer number

What happens after filing (typical process)

SSS evaluation of your submission.
Employer verification/audit: SSS may require employer records and reconcile payroll vs remittances.
Assessment: SSS computes deficiencies and penalties.
Demand/collection: employer is directed to pay arrears; SSS may use legal collection tools.
Possible prosecution: for willful failure to remit (especially if deductions were made and not remitted), criminal action can be pursued alongside collection.

Penalties and liability (high-level)

Under the Social Security Act, employer delinquency typically results in:

payment of unremitted contributions,
penalties for late/non-remittance (computed by SSS),
possible criminal liability for failure/refusal to remit and related violations,
potential exposure where employee deductions were withheld but not remitted (this fact pattern is treated seriously).

(Exact penalty computations depend on SSS rules and the period of delinquency.)

Step 5: Consider DOLE mechanisms when the issue overlaps with labor standards

SSS has primary jurisdiction over SSS contribution enforcement, but DOLE can still be relevant when:

the employer made unauthorized deductions or withheld amounts improperly,
you face retaliation (harassment, suspension, dismissal) for asserting SSS rights,
broader labor standards issues exist (misclassification, unpaid benefits, etc.).

Practical approach

Use SEnA (Single Entry Approach) for mediation if the dispute is intertwined with employment issues and you want a fast settlement channel.
Still pursue the SSS complaint for the government’s collection and record correction processes.

Step 6: If you already need benefits now (maternity, sickness, retirement, etc.)

Why urgency matters

Benefits often require:

a minimum number of posted contributions within a period,
correct salary credits,
proper employer reporting.

What you can do immediately

File your benefit claim properly (do not delay just because of employer issues).
Notify SSS in writing that there is employer delinquency/underposting affecting eligibility.
Submit evidence of employment and payroll deductions to support your claim and trigger employer verification.

Even if the employer is delinquent, employees should not be left helpless—SSS procedures exist to pursue the employer and correct records. However, outcomes can vary depending on the benefit type, the timing, and the evidence, so it’s best to coordinate directly with the SSS branch handling your claim.

Special scenarios and how to handle them

A. Employer deducted from pay but didn’t remit

This is among the strongest fact patterns for enforcement. Keep:

payslips showing deductions,
proof you were employed and paid for those months,
SSS record showing missing postings.

B. Employer underreported your salary

To prove this, you need to establish your actual compensation versus what was reported. Useful evidence:

signed contract and pay amendments,
payroll summaries,
bank records showing net pay consistent with higher gross pay,
2316/withholding tax documents (supporting compensation levels).

SSS may require employer payroll registers; your documentation helps trigger and support the audit.

C. You resigned/terminated and only discovered the problem later

You can still complain. Keep separation documents:

certificate of employment,
quitclaim (if any),
final payslip and clearance paperwork,
last known employer address.

D. Company closed, moved, or is unresponsive

Still file with SSS. Provide:

last known address,
names of officers/supervisors if known,
any company registration identifiers you have (TIN, business permits, etc. if accessible). SSS can pursue collection and may coordinate enforcement through legal channels.

E. You are tagged as “contractor” but you’re really an employee

Misclassification is common. Indicators of employment include:

control over how/when you work,
company-provided tools/systems,
fixed schedules, supervision, performance management,
integration into business operations.

SSS and labor standards bodies look at the reality of the relationship, not just the label.

Evidence guide: what wins cases in practice

Strongest evidence tends to be:

Payslips showing SSS deductions for specific months
SSS contribution printout showing those months missing/underposted
Employment proof (COE, contract, ID, work emails, HR onboarding records)
Compensation proof for underreporting cases (contract, pay adjustments, bank credits, tax forms)

Keep originals and prepare photocopies/printouts for submission.

Practical tips to avoid delays

Check postings regularly (monthly/quarterly).
Keep digital copies of payslips and contracts.
If you change employers, check that the new employer uses the correct SSS number and reporting.
Don’t rely on verbal assurances—ask for written proof of remittance when there’s a gap.
If benefits are time-sensitive (maternity/sickness), escalate quickly and submit evidence early.

What not to do

Don’t stop monitoring because HR says “it will post later” without proof.
Don’t confront in a way that risks workplace conflict without documenting; keep it professional and written.
Don’t falsify documents or “fix” records yourself—SSS record correction must be legitimate and verifiable.

If you want a quick action plan (copy-paste)

Download/print My.SSS contribution record for the last 12–24 months.
Mark missing months and months with suspiciously low postings.
Gather payslips and your contract/pay adjustment records for those months.
Email HR/payroll: request remittance proof and correction within 7–15 days.
If unresolved, file a complaint at SSS with your full evidence set.
If retaliation occurs or deductions/labor issues overlap, consider DOLE SEnA while the SSS case proceeds.

Final note

This topic sits at the intersection of social legislation and employment practice. The law places the burden on employers to register, report correctly, and remit on time—yet employees often need to act as their own first line of defense by checking postings, preserving evidence, and triggering enforcement when necessary.

If you tell me which situation you’re in—(a) deducted but not remitted, (b) underreported salary, or (c) not registered at all—I can tailor a step-by-step checklist and draft a demand letter suited to your facts.