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 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 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.
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.