Late SSS contributions cost 2% per month. Late PhilHealth premiums cost at least 3% per month, compounded. Late Pag-IBIG remittances cost one-tenth of 1% per day, about 3% a month. Over a year, that is roughly 24%, 43%, and 37% of the amount owed, before any criminal liability or the cost of benefits the employer may have to pay itself.
Late Remittance Penalties at a Glance
| Agency | Late penalty | Legal basis | Cost after 12 months |
|---|---|---|---|
| SSS | 2% per month from the due date until paid | RA 11199, Section 22(a) | 24% of the amount owed |
| PhilHealth | Interest of at least 3% per month, compounded monthly | RA 11223 (UHC Act) IRR, Section 9.2 | About 43% of the amount owed |
| Pag-IBIG | One-tenth of 1% of the amount due per day of delay | HDMF Circular No. 275; RA 9679, Section 23 | About 37% of the amount owed |
The penalty applies to the whole remittance, both the employer share and the employee share deducted from pay. Older guides quote a 3% SSS penalty; RA 11199 lowered it to 2% in 2019.
What Paying Late Actually Costs: A Worked Example
A company with 20 employees, each earning ₱25,000 a month, owes these 2026 contributions every month:
| Agency | Per employee | 20 employees |
|---|---|---|
| SSS (15% of the ₱25,000 Monthly Salary Credit) | ₱3,750 | ₱75,000 |
| PhilHealth (5% of ₱25,000) | ₱1,250 | ₱25,000 |
| Pag-IBIG (₱200 employee + ₱200 employer) | ₱400 | ₱8,000 |
| Total | ₱5,400 | ₱108,000 |
Employees' Compensation (EC) contributions, which SSS collects with the regular contribution, are left out to keep the example simple.
If one month of these contributions is paid late, the penalties grow like this:
| Paid late by | SSS | PhilHealth | Pag-IBIG | Total penalty | % of ₱108,000 |
|---|---|---|---|---|---|
| 1 month | ₱1,500.00 | ₱750.00 | ₱240.00 | ₱2,490.00 | 2.3% |
| 3 months | ₱4,500.00 | ₱2,318.18 | ₱720.00 | ₱7,538.18 | 7.0% |
| 6 months | ₱9,000.00 | ₱4,851.31 | ₱1,440.00 | ₱15,291.31 | 14.2% |
| 12 months | ₱18,000.00 | ₱10,644.02 | ₱2,920.00 | ₱31,564.02 | 29.2% |
SSS: ₱75,000 × 2% × months. PhilHealth: ₱25,000 × (1.03months − 1). Pag-IBIG: ₱8,000 × 0.1% × days late (30, 90, 180, and 365 days).
The part that hurts most: these figures are for a single late month. A company that falls behind for a whole year owes a penalty on each of the 12 months, with the oldest months carrying the largest charges. Skipping remittances to ease cash flow is one of the most expensive forms of credit a business can use.
The Costs Beyond the Penalty
Paying employees' SSS benefits yourself. If an employee gets sick, gives birth, becomes disabled, or dies while their contributions are unreported or unremitted, the employer must pay SSS the value of the benefits owed, on top of the arrears and the 2% monthly penalty (RA 11199, Section 24(b)).
Criminal liability under the SSS law. Failing to deduct and remit contributions is punishable by a fine of ₱5,000 to ₱20,000 and imprisonment of 6 years and 1 day to 12 years (Section 28(e)). Deducting contributions from pay and not remitting them within 30 days of the due date is presumed misappropriation and carries the penalties for estafa (Section 28(h)).
PhilHealth fines per employee. Deliberately or negligently failing to remit accurately and on time is punishable by a ₱50,000 fine for every violation per affected employee, imprisonment of 6 months to 1 year, or both (RA 11223, Section 38). For 20 employees, one violation can mean ₱1,000,000 in fines.
Pag-IBIG fines tied to the amount. Failing to remit without lawful cause is punishable by a fine of not less than the amount involved and up to twice that amount, imprisonment of up to 6 years, or both (RA 9679, Section 25). The responsible managing head, director, or partner can be held liable.
Employee trust. Employees can see missing postings in their My.SSS, PhilHealth, and Virtual Pag-IBIG accounts and can file complaints with each agency. Deducted but unremitted contributions are their money.
Monthly Remittance Deadlines
| Agency | When it is due |
|---|---|
| SSS | Last day of the month after the contribution month (regular employers, per sss.gov.ph) |
| PhilHealth | 11th to 15th (employer number ending 0 to 4) or 16th to 20th (ending 5 to 9) of the following month |
| Pag-IBIG | By first letter of the employer's name: A to D 10th to 14th, E to L 15th to 19th, M to Q 20th to 24th, R to Z 25th to month-end (HDMF Circular No. 275) |
Deadlines that fall on a weekend or holiday generally move to the next working day. For every deadline through December, see our Q4 2026 payroll deadline calendar.
Relief Programs Open in 2026
PhilHealth: one-time interest waiver (Circular No. 2026-0001)
Covers missed employer contributions for July 2013 to December 2024. Apply by December 31, 2026. Interest depends on how fast you settle:
- Settle within 1 month: interest fully waived
- 2-to-6-month payment term: 1% simple interest
- 7-to-12-month payment term: 2% simple interest
Requirements include updated employer and employee records and enrolling employees in PhilHealth's YAKAP program. Defaulting on the arrangement brings back the regular interest. Circular No. 2026-0010, published in July, is a different program for self-paying members, not employers.
SSS: CPCoDe MRP (Circular No. 2022-021)
The Contribution Penalty Condonation, Delinquency Management and Restructuring Program lets business employers settle unpaid contributions in full or by installment with penalties condoned. SSS listed it among its active employer relief programs in April 2026. Installment terms depend on the size of the delinquency, so request a Statement of Account and confirm current terms at your SSS branch.
We found no Pag-IBIG penalty condonation program for employers as of October 2026. Ask your Pag-IBIG branch about payment arrangements.
How to Fix Missed Remittances
- Find every gap. Compare each month's payroll deductions with the agencies' posted contributions for every employee, including resigned staff.
- Get the official computation. Request a Statement of Account from SSS and the equivalent assessments from PhilHealth and Pag-IBIG so you settle the agency's figure, not your own estimate.
- Check relief programs first. If your arrears qualify for the PhilHealth waiver or SSS CPCoDe MRP, applying before paying can remove most of the penalty.
- Pay the oldest months first. They carry the largest penalties and the highest legal risk.
- Keep current months current. Relief programs generally require you to stay up to date while you settle the old balance.
- Tell affected employees. Let them know their records will be updated, especially anyone with a pending loan, maternity, or sickness claim.
How to Avoid Late Remittances
Separate the money on payday. Move deducted contributions and the employer share to a separate account when payroll runs, so they are never used for operations.
Calendar all three schedules. SSS, PhilHealth, and Pag-IBIG each have their own deadline rules. Put your company's actual dates on one calendar.
Reconcile every month. Check that the agencies posted what you paid. Unposted payments are treated as unpaid.
Use the current tables. Remitting on old rates creates an underpayment that is assessed with penalties later. See our 2026 SSS, PhilHealth, and Pag-IBIG contribution tables.
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See what is includedFrequently Asked Questions
What is the penalty for late SSS contributions?
2% per month on the unpaid contributions, counted from the date they fell due until they are paid, under Section 22(a) of the Social Security Act of 2018 (RA 11199). It applies to the full contribution, both the employer and employee shares.
How much is the PhilHealth interest on late premiums?
Employers pay all missed contributions with interest of at least 3% per month, compounded monthly, under Section 9.2 of the Universal Health Care Act IRR (RA 11223). Compounding makes PhilHealth the fastest-growing of the three penalties.
What is the Pag-IBIG penalty for late remittance?
One-tenth of 1% of the amount due for every day of delay, under HDMF Circular No. 275. That is about 3% a month, matching the 3% monthly penalty in Section 23 of the Pag-IBIG Fund Law (RA 9679).
Can an employer go to jail for not remitting contributions?
Yes. Failing to deduct and remit SSS contributions carries a fine of ₱5,000 to ₱20,000 and imprisonment of 6 years and 1 day to 12 years (RA 11199 Section 28). For PhilHealth, the penalty is a ₱50,000 fine per violation per affected employee, imprisonment of 6 months to 1 year, or both (RA 11223 Section 38). For Pag-IBIG, it is a fine of up to twice the amount involved, imprisonment of up to 6 years, or both (RA 9679 Section 25). Company officers responsible can be held personally liable.
Is it estafa if contributions were deducted from pay but not remitted?
For SSS, an employer that deducts contributions or loan payments from an employee's pay and does not remit them within 30 days of the due date is presumed to have misappropriated them and faces the penalties for estafa under Article 315 of the Revised Penal Code (RA 11199 Section 28(h)). The PhilHealth rules contain a similar presumption of misappropriation.
Do employees lose benefits if the employer pays late?
Not under PhilHealth: the UHC Act says unpaid premiums do not stop members from using benefits, and the employer must still pay the arrears with interest. Under SSS, if an employee gets sick, gives birth, becomes disabled, or dies while the employer has not reported them or remitted their contributions, the employer must pay SSS the value of the benefits owed (RA 11199 Section 24(b)), on top of the arrears and penalties.
Is there a penalty condonation program in 2026?
PhilHealth Circular No. 2026-0001 offers a one-time waiver of interest on employers' missed contributions for July 2013 to December 2024. Applications close December 31, 2026: settling within one month waives all interest, while 2-to-6-month and 7-to-12-month payment terms carry 1% and 2% simple interest. SSS offers the Contribution Penalty Condonation, Delinquency Management and Restructuring Program (CPCoDe MRP) for business employers. Confirm current terms with each agency before applying.
What if a remittance deadline falls on a weekend or holiday?
Payment generally moves to the next working day. For example, October 2026 SSS contributions are due November 30, which is Bonifacio Day, so the practical deadline is December 1. Paying after the moved deadline still starts the penalty.
Written by YAHSHUA HRIS Team · Published October 2026
Sources: Social Security Act of 2018 (RA 11199), Sections 22, 24, and 28; UHC Act IRR and RA 11223, Section 38; Pag-IBIG Fund Law (RA 9679), Sections 23 and 25; HDMF Circular No. 275; PhilHealth Circular No. 2026-0001; SSS Circular No. 2022-021 and SSS's April 2026 relief program announcement. Verified October 8, 2026. This article does not constitute legal advice; consult a lawyer or the agencies for your situation.