SSS opens condonation program for overdue contributions
February 12, 2010 11:32 pm
MANILA, Feb. 12 – The Social Security System (SSS) has announced a six-month condonation program that would allow companies to settle the unpaid contributions of workers without paying penalties.
SSS president and Chief Executive Officer Romulo Neri said the Social Security Commission, the pension funds highest policymaking body, approved the condonation programs implementing rules and regulations on February 10.
"Employers can now remit their overdue contributions through our branch teller facilities or SSS-accredited collection agents or submit their installment proposals at their nearest SSS branch," Neri said. "They must avail of the program immediately because it will run for only six months."
President Gloria Macapagal-Arroyo signed the Social Security Condonation Law of 2009 last January 7. It offers companies the option to pay in cash or installment basis.
Employers opting to pay by installment must remit a downpayment of at least five percent of their total contribution delinquency. The first monthly installment will fall due within 30 days after SSS approves the proposal, which will be within five days upon submission.
"Upon approval of the proposal, the employer must issue the corresponding post-dated checks to cover all the monthly installments," Neri said. "They can pay their delinquencies for up to 48 months with three percent annual interest, as provided by the condonation law."
He said the program covers only penalties on unremitted premiums for months before the condonation law took effect last February.
"Contributions that fall due for the months of February 2010 onwards must still be remitted to SSS on or before the deadline, which is the 10th day after the applicable month," he said. "The condonation program is no excuse for employers to be delinquent in their current contributions."
The SSS would reimpose penalties for employers who fail to remit their delinquency in full within the condonation period or defaults in their installment proposals. SSS charges a monthly penalty of three percent, as provided under the Social Security Act of 1997.
The program will end on July 31, six months after the condonation law took effect on February 1. (PNA)