The Supreme Court reported on August 11, 2026 that employees who were illegally dismissed are entitled to the remittance of Social Security System contributions for the period covered by their backwages. In Lopez Sugar Corporation v. Perrin, Jr., et al., G.R. No. 260447, the Court treated the employment relationship as continuing during the period in which the employees were unlawfully prevented from working.

The ruling connects statutory social-security obligations with the remedial purpose of backwages. An employee declared illegally dismissed is placed, so far as the law permits, in the position the employee would have occupied had the unlawful dismissal not occurred.

Employers facing a final illegal-dismissal ruling should review more than the basic backwage computation. Implementation may involve reinstatement or separation pay, accrued benefits, SSS contributions, and applicable penalties or interest.

Employees should preserve employment records, SSS contribution history, payslips, notices, and the final labor decision. If the contribution record does not reflect the period covered by the award, the proper remedy will depend on the dispositive portion and procedural stage of the case.

The decision does not mean that every employment separation produces continued SSS liability. Its application rests on a finding of illegal dismissal and the corresponding period of backwages.

Official source: View the official issuance or Supreme Court release.

This article provides general information and does not constitute legal advice. Requirements and procedures may change; obtain advice for your specific circumstances.