SSS gives employers more time to remove delinquent status
October 12, 2010 11:20 am
MANILA, Oct. 12 — The Social Security System (SSS) called on employers to update loan accounts of their employees to remove their delinquent status with the agency, a top official said.
SSS President and Chief Executive Officer Emilio de Quiros Jr. said employers have until middle of November to clear their delinquent status mainly caused by procedural bog down because of employee movements.
"In the meantime, SSS will accept salary loan applications of employed members if they have no unpaid loans and meet our other requirements. Applications turned down in the past few days can be re-filed starting next week," de Quiros said. "We strongly urge employers to use the time to update their records with SSS."
SSS salary loan guidelines require employers to be updated in contributions and loan remittances. This requirement has been in effect since 2004.
Overdue salary loans incur one percent monthly penalty and 10 percent annual interest until full payment. Many employers say that they were tagged as delinquent because of unpaid loans of employees who have already left the company.
De Quiros said SSS decided to give employers one month to submit requirements to update their loan accounts and allow their employees to avail of loans.
He said employers can submit an affidavit with a list of separated employees and date of separation, SSS collection lists or R-3 forms duly received by an SSS branch, or resignation letters of separated members sent to the company.
Employers have the responsibility to collect and remit their workers’ monthly loan amortization, including those of new employees by requiring them to submit an updated statement of account upon employment.
Employees, on the other hand, have the duty to check regularly if their employers are updated in remitting their monthly payments to SSS.
SSS hopes to cut down in the next few years the huge loan delinquency of members, which has amounted to more than P27 billion.
Employed members comprise 83 percent of the unpaid loans.(PNA)