Recent SSS Issues in the Philippines: What Employers and Employees Need to Know

The Social Security System (SSS) plays a critical role in protecting Filipino workers by providing benefits for retirement, sickness, disability, maternity, and death.

However, in recent years, SSS has been at the center of multiple issues—from employer non-compliance and enforcement actions to internal audit findings, system failures, and major policy changes.

This article breaks down the most recent SSS-related issues, including lessons from high-profile compliance cases like the Diwata case, and provides practical guidance to help employers and employees avoid legal and financial trouble.

1. Employer Violations: Unpaid and Unremitted SSS Contributions

One of the most serious and recurring problems faced by the SSS is employer failure to remit employee contributions.

What’s happening?

Through its Run After Contribution Evaders (RACE) campaign, the SSS has intensified inspections and legal actions nationwide. In recent enforcement drives:

• Over 1,200 employers were flagged for failing to remit contributions

• More than ₱300 million in unpaid contributions affected tens of thousands of workers

• Criminal cases were filed against repeat and willful violators

Why this is serious

Under Republic Act No. 11199 (Social Security Act of 2018):

• Withholding employee contributions but failing to remit them is a criminal offense

• Employers (and responsible officers) may face:

  • Fines

  • Payment of arrears with penalties

  • Imprisonment of up to 12 years

This is not just a payroll issue—it is a legal obligation.

2. The “Diwata” Case: A Wake-Up Call for Compliance

The arrest of small business owner and food vlogger Deo “Diwata” Balbuena sparked public debate about government enforcement and business compliance.

Key lessons from the case

• Diwata was arrested over business compliance issues, highlighting how even small enterprises are subject to strict enforcement

• While not purely an SSS case, it demonstrates how failure to comply with government regulations can escalate quickly

• The case reflects growing pressure on informal and small businesses to regularize operations, including labor and social security compliance

Takeaway

Compliance is no longer optional or “for big companies only.”

Whether you are a micro-entrepreneur or a growing business, SSS registration and remittance are mandatory.

3. Fraud, Mismanagement, and COA Findings Inside SSS

SSS has also faced scrutiny internally after the Commission on Audit (COA) released findings that raised serious concerns.

Notable audit issues

• Questionable procurement spending (e.g., millions spent on office supplies)

• Errors in benefit payments:

  • Underpayment of funeral benefits

  • Overpayment of pensions to deceased members

• Large incentive payouts to employees that lacked clear justification

Why this matters

SSS funds come from member contributions.Any inefficiency, waste, or mismanagement directly affects:

• Fund sustainability

• Benefit delivery

• Public trust in the system

These findings emphasize the need for transparency, accountability, and system improvements within the agency.

4. System Failures and Online Service Issues

As SSS shifts more services online, members have experienced:

• Temporary shutdowns of the My.SSS portal

• Delays in posting contributions and loan records

• Difficulty accessing benefits during system maintenance or outages

There have also been increased reports of SSS-related scams, including fake text messages and emails asking for personal information.

What members should do

• Use only official SSS websites and apps

• Never share your SS number, OTPs, or passwords

• Regularly check contribution records to spot issues early

5. Major Policy and Contribution Changes

Despite the challenges, SSS has implemented important reforms aimed at strengthening benefits.

Contribution rate increase

• As of January 2025, the total SSS contribution rate increased to 15%

  • Employer share: 10%

  • Employee share: 5%

• Maximum Monthly Salary Credit increased to ₱35,000

This was the final scheduled increase under the law.

Pension increases (first in over a decade)

• Pensioners began receiving increases starting September 2025

• Implemented in phases until 2027

• Covers:

  • Retirement pensions

  • Disability pensions

  • Survivor pensions

• No additional contributions required from members

New programs

• Introduction of SSS microloan programs

• Expansion of branches and overseas service offices

• Improvements in digital services

6. How Employers Can Stay Compliant

To avoid penalties, legal action, and reputational damage, employers should:

• Register all employees with SSS immediately upon hiring

• Remit contributions on time and in full

• Regularly audit payroll and contribution records

• Respond promptly to SSS notices or RACE inspections

• Seek professional advice if facing compliance issues

Early coordination with SSS is often the difference between settlement and prosecution.

7. What Employees Should Do to Protect Their Rights

Employees are not powerless. You can:

• Monitor your SSS contributions through the My.SSS portal

• Keep payslips and employment records

• Report discrepancies directly to SSS

• File complaints if employers deduct but fail to remit contributions

Your benefits depend on accurate and timely remittances.

Conclusion: Compliance Is Protection

Recent SSS issues—from delinquent employers and audit controversies to system failures and compliance arrests—send a clear message:

SSS compliance protects both businesses and workers.

• For employers, it prevents legal and financial disaster

• For employees, it safeguards hard-earned benefits and social security

Understanding these issues is the first step toward prevention, accountability, and a stronger social protection system for all Filipinos.