LETTER TO A LAWYER

Dear Attorney,

I am writing to express my concern regarding unpaid Social Security System (SSS) contributions by my previous employer. I began working for them in December 2022, but I recently discovered that my SSS contributions for several months in 2023, as well as my final month of employment in 2024, were not remitted. I have attempted to follow up with the employer, but they have not provided any clear resolution or confirmation that these missing contributions will be paid.

I am now employed by a different company, yet my former employer still has not settled my SSS contributions. It has come to my attention that other former employees share a similar grievance, suggesting this may be an ongoing practice. I would greatly appreciate your legal guidance on the steps I should take under Philippine law to protect my rights and ensure that the employer fulfills its obligation to remit SSS contributions.

Thank you for your time and assistance.

Sincerely,
A Concerned Employee

LEGAL ARTICLE: A COMPREHENSIVE GUIDE ON EMPLOYEES’ RIGHTS AND EMPLOYERS’ OBLIGATIONS UNDER PHILIPPINE SSS LAWS

Introduction
In the Philippines, the Social Security System (SSS) serves as the primary social insurance program, providing coverage to private-sector employees, self-employed individuals, and voluntary members. Its primary purpose is to promote social justice, protect workers against the hazards of disability, sickness, maternity, old age, and death, and to provide compensation in the form of benefits. Employers are legally required to register their employees with the SSS, deduct monthly contributions from the employees’ salaries, and remit both the employer’s share and the employee’s share to the SSS on time.

Unfortunately, instances arise where employers fail to remit employees’ contributions, whether out of neglect, lack of liquidity, or deliberate non-compliance. This failure not only deprives employees of their rightful benefits but also violates the law and can subject the employer to administrative, civil, and even criminal liability. This article aims to provide an in-depth explanation of the legal rights, remedies, and procedures available to employees in such circumstances.
Legal Framework Governing SSS Contributions
2.1 Social Security Act of 2018 (Republic Act No. 11199)
The cornerstone of the law governing social security in the Philippines is the Social Security Act of 2018 (R.A. 11199). It consolidates and amends provisions from the older Social Security Act of 1997 (R.A. 8282) and establishes rules for coverage, contributions, and the enforcement of penalties against erring employers.

2.2 Implementing Rules and Regulations (IRR)
Pursuant to R.A. 11199, the Social Security System issues circulars and regulations clarifying the statutory obligations of covered employers and employees. The IRR details the schedule of contributions, procedures for registration, remittance deadlines, and sanctions for non-compliance.

2.3 Other Applicable Regulations
In addition to the Social Security Act, several other laws and regulations can come into play:
- Labor Code of the Philippines (Presidential Decree No. 442), which outlines general obligations of employers and protections afforded to workers.
- DOLE (Department of Labor and Employment) orders and advisories that reinforce employer compliance with mandatory benefits.
- Various administrative circulars issued by the SSS to enhance collection and enforcement measures.
Scope of Coverage
3.1 Who Are Covered?
Under R.A. 11199, coverage is mandatory for the following:
- Private-sector employees, whether permanent, temporary, or casual.
- Household helpers earning at least a certain threshold per month.
- Self-employed individuals, such as freelancers, professionals, and entrepreneurs, who must register themselves.
- Overseas Filipino Workers (OFWs), on a voluntary or mandatory basis as determined by law.
3.2 Employer’s Obligation
Each employer is required by law to:
1. Register the business with the SSS.
2. Register each employee with the SSS and ensure that every employee has an SSS number.
3. Deduct the corresponding monthly contribution from the employee’s salary and add the employer’s share.
4. Remit the total amount of contributions to the SSS on or before the due date designated by the SSS.
Employer’s Legal Obligations to Remit Contributions
Employers must remit both the employee’s share (which is deducted from the salary) and the employer’s share on time. The SSS provides a schedule of contributions that varies depending on the salary bracket of the employee, ensuring that the amounts contributed are proportionate to the employee’s compensation. Failure to pay contributions on time or, worse, failure to remit altogether constitutes a violation of the Social Security Act of 2018.

4.1 Due Dates for Remittance
The SSS typically assigns due dates based on the last digit of the employer’s SSS number. Employers must be mindful of these due dates; late or non-remittance can lead to penalties and interest charges.

4.2 Importance of Accurate Record-Keeping
Employers are tasked with maintaining accurate records of payroll and contributions. Employees have the right to examine their pay slips and verify whether the deducted amount for SSS actually matches the posted contributions in the SSS system. If an employer fails to issue pay slips, employees can request a Certificate of Remittance from the SSS or periodically verify their contribution records through SSS online portals.
Consequences of Employer Non-Compliance
5.1 Administrative Penalties
Non-compliant employers may be subject to administrative fines and penalties imposed by the SSS. The Social Security Act allows the SSS to impose interest on unpaid contributions. If employers repeatedly fail to remit, the SSS can resort to more severe collection measures, such as garnishing bank accounts or auctioning properties to settle outstanding contributions.

5.2 Civil Liabilities
The employer’s failure to pay SSS contributions can trigger civil liability. Employees or the SSS can institute civil proceedings to recover the unremitted contributions plus damages. Since SSS contributions represent a statutory obligation, Philippine courts generally take a strict view of the employer’s duty to remit.

5.3 Criminal Liabilities
Employers may also face criminal prosecution for failing to deduct or remit SSS contributions, as stipulated in R.A. 11199. Any employer or responsible officer (like the manager, proprietor, or director) who fails to pay contributions faces fines and possible imprisonment depending on the gravity of the offense and the amount involved.
Employee Remedies and Legal Actions
6.1 Filing a Complaint with the SSS
Employees who suspect or discover that their employer is not remitting SSS contributions should first gather evidence. Pay slips, employment contracts, and personal records of salary deductions can be used to substantiate claims. After collecting these documents, the employee may:
- Visit the nearest SSS branch or contact the SSS hotline to report the non-remittance.
- Submit a written complaint, attaching relevant documents.
- The SSS will then notify the employer and commence an investigation or compliance visit.
6.2 Filing a Complaint with the Department of Labor and Employment (DOLE)
While DOLE mainly handles labor standards (e.g., minimum wage, holiday pay, overtime), it may accept complaints regarding non-remittance of mandatory statutory benefits such as SSS, PhilHealth, and Pag-IBIG contributions. DOLE can conduct an inspection or refer the case to the appropriate agency (e.g., the SSS) for enforcement.

6.3 Filing a Case with the National Labor Relations Commission (NLRC)
Typically, claims for non-payment or underpayment of wages and other benefits fall under the jurisdiction of the NLRC. Although SSS contributions are governed by a separate statute, employees often seek relief from the NLRC for violation of labor standards in conjunction with their SSS claims. However, the final determination on whether the case belongs to the NLRC or a regular court may vary, especially if the relief sought is strictly the remittance of statutory SSS contributions.

6.4 Regular Court Action
In cases where large-scale or repeated failures to remit contributions occur, the SSS may file a criminal complaint before the prosecutor’s office. If probable cause is found, the case could go to the trial courts, where the employer may face criminal sanctions under R.A. 11199.
Importance of Exhausting Administrative Remedies
Before elevating the matter to the courts, employees and the SSS often follow a step-by-step approach:
1. Investigation by the SSS – The SSS tries to collect or enforce the contributions through demand letters and settlement.
2. Administrative Enforcement – The SSS may garnish bank accounts or seize assets of the employer if the employer fails to comply with written demands.
3. Filing Civil or Criminal Charges – Only when administrative measures fail to yield results will the SSS or the aggrieved parties often proceed to legal action in courts.
This process ensures that employers have the opportunity to correct their deficiencies before facing harsher legal consequences.
Preventive and Proactive Measures for Employees
8.1 Regular Online Monitoring of Contributions
The SSS website provides an online platform (My.SSS) where members can check their posted contributions. By monitoring on a monthly or quarterly basis, employees can detect discrepancies early.

8.2 Request for Contribution Printouts
Employees can request an official printout of their contributions from any SSS branch. This document serves as proof of non-remittance if the posted amount is incomplete compared to the deductions on pay slips.

8.3 Maintain Proper Documentation
Maintaining a personal file of payslips, employment contracts, and other relevant documents can be critical. In legal proceedings, documentary evidence is usually more convincing than mere allegations.
Steps to Take if You Discover Non-Remittance
9.1 Gather Evidence
Before approaching government agencies or legal counsel, collect all relevant evidence. This includes employment contracts, pay slips, or any written communication (emails, messages) where the employer discusses SSS issues.

9.2 Send a Formal Inquiry or Demand Letter to the Employer
Although not always mandatory, sending a polite but firm demand letter asking the employer to rectify the non-remittance can sometimes resolve the issue without further legal intervention. In many cases, employers fail to comply simply because of administrative oversights or misunderstanding of the law.

9.3 Seek Assistance from the SSS
If the employer fails to address the issue, employees may file a complaint with the SSS. The SSS can then issue a notice of inspection or direct the employer to remit unpaid contributions with penalties and interest.

9.4 File a Case When Necessary
If the SSS efforts do not bear fruit or if the employer refuses to cooperate, the case may proceed to litigation. The seriousness of the employer’s non-compliance and the total amount involved often guide whether the matter becomes a criminal prosecution or a civil action.
Frequently Asked Questions (FAQs)
10.1 Can an employee be held liable for unpaid SSS contributions?
Generally, the employer is responsible for remitting both the employee’s share and the employer’s share. An employee cannot be held liable for an employer’s failure to remit, provided that the employer has deducted the correct amount from the employee’s salary. However, if an employee is in a managerial position or designated as the responsible officer (e.g., HR manager or finance officer who signed official documents), the employee might share liability depending on the specific circumstances.

10.2 What if the employer did not deduct my share from my salary?
Even if the employer failed to deduct the employee’s share, the obligation to remit to the SSS remains. The employer is still required by law to comply. The SSS may impose penalties and interest on the employer, although the employer might later seek reimbursement from the employee’s portion if wages were not deducted accordingly.

10.3 How long does an employee have to file a complaint?
Under the Labor Code and related regulations, illegal deductions or violations of labor standards can be pursued within a specific prescriptive period. For SSS matters, there is no stringent short-term prescription period for criminal prosecution. However, to preserve evidence and ensure a stronger case, employees are encouraged to act promptly.

10.4 What benefits are affected by non-remittance?
Unremitted contributions can affect the employee’s eligibility for:

Sickness benefits
Maternity benefits
Disability benefits
Retirement pension
Death and funeral benefits

Should the employee be unable to avail of these benefits due to inadequate posted contributions, the employer may be held liable for the losses incurred by the employee.

Employer Defenses and Counterarguments
Employers sometimes attempt to justify non-remittance by citing financial difficulties or oversight. However, Philippine law provides limited leeway for such excuses. The SSS Act imposes a fiduciary duty on employers to hold in trust the contributions deducted from employees’ salaries.

11.1 Financial Constraints
The law does not consider insolvency or financial hardship as a valid defense. Once an employer hires workers, the employer must ensure compliance with mandatory contributions.

11.2 Administrative Errors
Employers may claim that they committed a clerical or administrative mistake in remitting contributions. While the SSS might consider a settlement or an arrangement allowing the employer to pay arrears in installments, repeated or flagrant errors can result in penalties.

11.3 Good Faith as a Mitigating Factor
In some cases, an employer may argue that it acted in good faith by partially remitting contributions or by having a prior arrangement with the SSS. Good faith might mitigate penalties but will not absolve the employer entirely from the obligation to pay the principal amount plus accrued interest or penalties.

Criminal Prosecution: Key Considerations
Employers and their responsible officers (president, treasurer, manager, or any officer directly in charge of SSS matters) may be criminally liable under R.A. 11199. To trigger criminal liability, the complaint must typically show:

The employer-employee relationship existed;
The employer deducted contributions from employees’ salaries or, under the law, was required to do so; and
The employer knowingly and willfully failed to remit such contributions to the SSS.

Convictions can lead to fines and imprisonment depending on the total amount of unpaid contributions and the duration of non-compliance.

Statute of Limitations and Prescriptive Period
The Social Security Act of 2018 does not strictly impose a short statute of limitations for collecting unpaid contributions. Nevertheless, it is prudent for employees to initiate complaints or claims as soon as they discover the violation to avoid issues such as lost records, closure of the employer’s business, or unavailability of witnesses.
Enforcement Powers of the SSS
The SSS possesses broad enforcement powers, including the authority to:

Examine the employer’s books and records.
Require the employer to provide monthly or quarterly reports.
Impose penalties and interest on unpaid contributions.
Issue warrants of distraint, levy, or garnishment on bank deposits or properties of delinquent employers.

These measures ensure the SSS can protect the social security rights of employees and guarantee the sustainability of the program.

Implications for Employees Changing Jobs
When an employee transfers to a new employer, responsibility for future contributions shifts to the new employer. However, unpaid contributions by the former employer remain collectible and do not affect the employee’s new coverage under a subsequent employer. Employees are encouraged to keep track of their total posted contributions to ensure no gaps exist.
Case Studies and Jurisprudence
16.1 Philippine Supreme Court Rulings
The Supreme Court has consistently upheld the principle that social security contributions are obligations imbued with public interest. Consequently, employers cannot simply ignore these obligations without risking legal repercussions. The High Court has repeatedly ruled that the failure or refusal to remit an employee’s SSS contributions can be pursued both civilly and criminally.

16.2 Labor Arbiters and the NLRC
Although SSS claims may not always fall within the NLRC’s primary jurisdiction, labor arbiters frequently address them as part of a broader complaint on unpaid wages, illegal dismissal, or other labor standard violations. The uniform stance remains: an employer’s failure to comply with statutory mandates is a serious violation.

Practical Tips for Employees and Employers
17.1 For Employees

Monitor Contributions: Regularly check your SSS contribution records online or request a copy from an SSS branch.
Document Evidence: Keep copies of pay slips and any communication regarding SSS deductions.
Seek Timely Redress: If you suspect non-remittance, act promptly by reporting to the SSS or seeking legal advice.
Collaborate with Co-Workers: If several employees face the same issue, coordinate efforts in filing a unified complaint, which may have a stronger impact.

17.2 For Employers

Stay Updated: Keep abreast of the latest SSS contribution tables and regulations.
Implement Compliance Systems: Automate payroll and maintain clear documentation to avoid oversight.
Remit on Time: Prioritize statutory obligations to avoid penalties or legal problems.
Resolve Disputes Quickly: If any discrepancy arises, address it swiftly by reconciling records with the SSS and the employees.

Role of Legal Counsel
Consulting with a lawyer is crucial if:

The employee’s complaints escalate to the point of a formal administrative investigation or lawsuit.
The unpaid contributions are significant in amount or span multiple months or years.
The employer disputes the validity of the claims, or the SSS has begun administrative enforcement actions.

A lawyer can guide the employee in filing the proper complaints, gathering necessary documents, and representing their interests in hearings. Similarly, an employer’s counsel can help negotiate with the SSS, propose settlement schemes, or present defenses if the employer genuinely has a valid cause for delay.

Summary and Conclusion
The failure of employers to remit SSS contributions is a serious offense under Philippine law, governed primarily by the Social Security Act of 2018. This offense exposes the employer to administrative fines, civil liability, and criminal prosecution. Employees, on the other hand, have the right to file complaints with the SSS and other government agencies to recover their unremitted contributions and protect their access to vital social security benefits.

Vigilance is key—employees should regularly verify their SSS records and swiftly act upon discovering any lapses. Employers must realize that compliance is not optional but mandatory. Non-remittance of contributions not only affects employees’ future benefits but also poses legal risks to the employer.

By understanding the provisions of R.A. 11199, the scope of coverage, and the administrative and judicial remedies available, employees and employers can navigate potential disputes more effectively. The proactive enforcement by the SSS and the support of labor agencies underscore the government’s commitment to safeguarding employees’ social security rights.

Ultimately, the law upholds the principle of social justice: ensuring that Filipino workers are protected against life’s uncertainties and employers remain accountable for meeting their statutory obligations. Whether you are an employee seeking rightful benefits or an employer aiming to adhere to the law, it is imperative to stay informed, seek professional counsel when necessary, and adhere to the legal processes designed to protect everyone’s interests.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. It does not establish an attorney-client relationship between the reader and the author. For specific concerns and individualized guidance, always consult a qualified legal professional.