Dear PAO,

In January 2026, I received the full monetary judgment award arising from the labor case I filed against my former employer for illegal dismissal and money claims. Upon inquiring with the Social Security System (SSS) regarding my contribution records, I discovered that my former employer stopped remitting my SSS contributions on the very date I was allegedly dismissed from employment. I would like to know whether I am still entitled to the payment or remittance of my SSS contributions covering the period from the date of my illegal dismissal until the finality of the judgment in my labor case. If yes, may I also know what legal remedies or procedures I may undertake to compel my former employer to remit the corresponding SSS contributions for the said period? Thank you.

Avila

Dear Avila,

Under Philippine law, an employee who has been judicially declared illegally dismissed is entitled to have the corresponding Social Security System (SSS) contributions remitted for the period covered by the award of backwages. This is pursuant to the Supreme Court’s recent ruling in Lopez Sugar Corporation vs. Romeo Perrin, Jr., et al. [G.R. No. 260447, February 5, 2026], where it held that an employer remains obligated to remit the employees’ SSS contributions for the period during which they were illegally dismissed because, in contemplation of law, illegally dismissed employees are deemed not to have left their employment.

This principle is likewise consistent with Article 294 of the Labor Code which states that an unjustly dismissed employee is entitled to full backwages, allowances, and other benefits or their monetary equivalent that the employee would have received had the dismissal not occurred, thus:

“ARTICLE 294. [279] Security of Tenure. – In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his [or her} other benefits or their monetary equivalent computed from the time his [or her] compensation was withheld from him up to the time of his actual reinstatement.” (Emphasis supplied)

Accordingly, the legal consequences of an illegal dismissal extend beyond the payment of backwages. The employee must, likewise, be restored to the benefits and privileges that would have accrued had the unlawful dismissal not taken place. The employer’s obligation to remit the corresponding SSS contributions, therefore, does not cease merely because it had, in fact, treated the employee as separated from employment.

Significantly, in the above-mentioned case of Perrin, the Supreme Court further clarified that jurisdiction over a claim for the remittance of SSS contributions rests not with the Labor Arbiter but with the Social Security Commission (SSC). The Court elucidated that a claim involving the employer’s statutory obligation to remit SSS contributions is governed by the Social Security Act.

Section 5(a) of Republic Act (R.A.) No. 1161, as amended by Republic Act (RA) 8282, otherwise known as the Social Security Act of 1997, vests the SSC with jurisdiction over disputes involving coverage, benefits, and contributions under the law. Corollarily, Rule III, Section 1 of the 1997 SSS Revised Rules of Procedure provides:

“Section 1. Jurisdiction. – Any dispute arising under the Social Security Act with respect to coverage, entitlement of benefits, collection and settlement of contributions and penalties thereon, or any other matter related thereto, shall be cognizable by the [Social Security} Commission after the SSS through its President, Manager [,] or Officer-in-charge of the Department/Branch/Representative Office concerned had first taken action thereon in writing.”

Accordingly, the appropriate course of action to claim for unremitted SSS contributions is to bring the matter first to the SSS, supported by the final judgment or resolution declaring the employee’s dismissal illegal and awarding backwages. The SSS may, then, assess the employer’s outstanding contribution liability and undertake the appropriate billing and collection proceedings. If the employer disputes or refuses to comply with the assessed obligation, the employee may thereafter pursue the appropriate remedy before the SSC, which has jurisdiction over disputes concerning the collection and settlement of SSS contributions and related penalties.

We hope that we were able to answer your query. This advice was solely based on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

Thank you for your unwavering trust and support.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]