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What to Do if Your Employer Fails to Pay Your

SSS Contributions

V E N U S Z O L E TA
Last updated February 10, 2018

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You've applied for an SSS salary loan to meet an urgent cash need. But then, your application
got declined just when you need to borrow money badly. It's frustrating and heartbreaking. You
wonder why it happened—you were sure you're qualified for that loan. You've had more than 36
monthly SSS contributions deducted from your salary. You've also submitted all the loan
requirements. What could have gone wrong?

Have you verified if your employer has remitted all your SSS contributions? Even though all
these contributions are deducted from your monthly pay, it's likely that your company has failed
to remit them to SSS for several months (or even years.)

Two lessons learned: check your posted SSS contributions regularly and hold your employer
accountable for non-remittance of your SSS payments.

Know Your Rights

As an SSS member, you're protected by law against negligence or non-compliance of your

employer when it comes to paying SSS contributions. 
The Social Security Act of 1997 (Republic Act 8282) requires all employers in the Philippines to
deduct the monthly SSS contributions from their employees' salaries, pay their share of
contributions, and remit these contributions to the SSS on time. Employers must also submit
the monthly report of their employees' contributions to the nearest SSS office.

Employers who violate the Social Security Law will be fined PHP 5,000 to PHP 20,000 or jailed
for at least six years. They must also remit all unpaid SSS contributions in addition to a 3%
penalty each month, and pay the benefits of employees who die, become disabled, get sick, or
reach retirement age.

Aside from the SS Law violation, a delinquent employer is also liable for the crime of estafa[1]
because non-remittance of employees' SSS contributions is considered a form of fraud,
according to SSS Senior Vice President and Chief Legal Counsel Voltaire Agas. He added that
such an employer can face imprisonment under the Revised Penal Code.

According to SSS, you're still entitled to social security benefits if your employer fails to remit
and report your SSS contributions. However, it could lead to your SSS loan application getting
denied for not meeting the required minimum number of posted monthly contributions.

Here's what you can do when your employer fails or refuses to pay your monthly contributions
to SSS.

Talk to Your Employer

Sort things out with your employer first before escalating the issue to SSS. Discuss with your
Human Resources department (or anyone who's in charge of your payroll) the discrepancies you
found in your posted SSS contributions.

Ideally, your employer should fix the issue as soon as possible. Make sure to get your
employer's commitment to remit your contributions. Ask for a target date or timeline, too.

If Nothing Happens, File a Complaint with the SSS

Not getting any updates about the status of your SSS contribution payments despite your
constant follow-ups? Are your SSS contributions still unpaid?

Don't wait any longer—be proactive in asserting your right to social security protection. Report
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the delinquent employer to the SSS for a possible legal action.

Although this is a labor-related dispute, the Department of Labor and Employment (DOLE) has
no jurisdiction or authority to act on complaints regarding non-remittance of SSS contributions.
Instead, go directly to SSS to file your complaint to save time and effort.

Especially in the past few years, SSS has been taking serious actions against employers who
don't comply with the SS Law. In fact, the state-run agency has filed criminal and civil cases
against more than 34,000 delinquent employers since 2010. Of these, the courts have convicted
at least 41 employers.

How to File a Complaint for Failure to Remit SSS Contributions

To file a non-remittance complaint, visit the SSS branch closest to your employer's office or
business location. Present proof of employment such as your valid company ID, employment
contract, pay slips, or income tax return.

Upon receiving your complaint, SSS will use it as a basis for investigating the erring employer.
SSS advises its members to still monitor their SSS contribution payments while the
investigation is ongoing.

Final Thoughts

It's well within your rights as an SSS member to take a legal action against your employer for
failure to remit your SSS contributions. We're talking about the money you've worked hard for.
Play an active role in making sure that your monthly salary deductions indeed go to your SSS
contribution payments.

Source:

[1] File complaints with SSS, PhilHealth and Pag-IBIG over contributions unremitted by
employer

V E N U S Z O L E TA

Venus leads the blog content strategy and optimization at Moneymax as the Head of
Editorial Content. She has 15+ years of experience in content marketing, corporate