Republic of the Philippines Social Security System (2024)

Compulsory Coverage of Employers

1. Definition

   See Also

   The Different Benefits from the Social Security SystemSettling Unpaid Social Security System Contributions in the PhilippinesEasy PhilHealth ID Application: Step-By-Step Guide

   An employer is any person, natural or juridical, domestic or foreign, who carries on in the Philippines any trade, business, industry, undertaking, or activity of any kind and uses the services of another person who is under his/her orders as regards the employment, except the Government and any of its political subdivisions, branches or instrumentalities, including corporations owned or controlled by the Government.

   1. A social, civic, professional, charitable, and other non-profit organization that hires the services of employees are also considered “employers.”
   2. A foreign government or international organization, or its wholly-owned instrumentalities, such as an embassy in the Philippines, with an approved Administrative Agreement with the SSS for the coverage of its Filipino workers.
   3. Ahousehold employeris one who uses the services of a house helper; whomever pays the compensation for such services – whether the husband, wife, or any other person – shall be deemed the household employer.

   The effectivity of the employer’s compulsory SSS coverage starts on the first dayof his/her operation.

   Effects of non-reporting and non-remittance of contribution

   An employer who does not report his/her employees, regardless of status of employment, is violating the SSS Law. The employer is liable to the employees and must:

   • pay the benefits of those who die, become disabled, get sick or reach retirement age;
   • pay all unpaid contributions plus a penalty of for late payments thereon of two percent (2%) per month; and
   • be held liable for a criminal offense punishable by fine and/or imprisonment.