Book IV — Health, Safety & Social Welfare
Article 196Delinquent contributions.
ELI5— what this means for you
If your employer failed to remit ECC contributions, they are personally liable to reimburse the SSS/GSIS for any benefits paid to you. Your delinquent employer's debt to you becomes a lien on all their property.
Key point
Employer didn't pay your ECC contributions? Your benefits are still protected — the employer owes the fund, not you.
Official text — PD 442
Delinquent contributions.
An employer who is delinquent in his contributions shall be liable to the System for the benefits which may have been paid by the System to his employees or their dependents, and any benefit and expenses to which such employer is liable shall constitute a lien on all his property, real or personal, which is hereby declared to be preferred to any credit, except taxes. The payment by the employer of the lump sum equivalent of such liability shall absolve him from the payment of the delinquent contribution and penalty thereon with respect to the employee concerned.
Failure or refusal of the employer to pay or remit the contribution herein prescribed shall not prejudice the right of the employee or his dependents to the benefits under this Title. If the sickness, injury, disability or death occurs before the System receives any report of the name of his employee, the employer shall be liable to the System for the lump sum equivalent to the benefits to which such employee or his dependents may be entitled.
Source: lawphil.net (PD 442 as amended)
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Legal disclaimer: BatasKo provides general legal information, not legal advice. For advice on your specific employment situation, consult a licensed Filipino lawyer or the Public Attorney's Office (PAO) at pao.gov.ph.