SSS OUTLINES LIABILITY FOR DAMAGES AGAINST NON-COMPLIANT EMPLOYERS

On January 9, 2025, the Social Security Commission issued SSS Circular No. 001 s. 2025 providing for the guidelines on employer liability for damages in the payment of social security benefits due to non-compliance with employer obligations. The Circular became effective on January 24, 2025.

The employer shall be liable for damages to employees, beneficiaries, or claimants, if, prior to the employee’s date of contingency, the SSS determines that the employer (1) did not report the employee to the SSS for compulsory coverage, (2) did not report the true date of employment of the employee to the SSS, or (3) did not remit the correct amount of contributions to the SSS as required. The amount of the damages to be paid shall be equivalent to the cash benefit that the employee would have been entitled to if the employer’s obligations have been complied with.

If the contingency occurs within thirty (30) days from the date of employment, the employer shall be relieved from liability, provided that the SS contribution has already been paid.

If there are two (2) or more employers liable for the payment of benefits of the same employee, their liability shall be proportionate based on the actual period of employment and the contributions due.

Failure or refusal to pay the total collectible amount shall compel the SSS to institute necessary legal actions against the employer.

The Circular provides for the computation for liability of damages depending on the nature of the claim, the basic requirements for the claim of damages, and provides for the date of coverage for purposes of benefit payments.

Click here to view the full SSS Circular No. 001 s. 2025.