SSS expects to collect P3.9 billion from delinquent employers

Published by rudy Date posted on March 16, 2010

MANILA, Philippines – The Social Security System (SSS) expects to collect at least P3.9 billion in five years from employers who are delinquent in the payment of their employee contributions.

SSS president and chief executive officer Romulo Neri said that amount is expected to be collected from employees who would avail of a new amnesty program that would condone penalties on overdue contributions.

The program will allow SSS to settle their overdue obligations to SSS without paying the accumulated penalties and their workers can avail of SSS benefits and loans.

Under the amnesty program, Neri said the agency estimates that total contribution collections are expected to reach P3.69 billion while interest payments which are pegged at three percent per annum will amount to P208 million in five years.

Employers who have been delinquent in their payments have until July 31 to apply for condonation of penalties but they can remit their obligations within a maximum period of 48 months under an installment plan.

“Initial figures show that we have already collected P48.71 million from 549 employers nationwide, adding that condoned penalties so far amount to P208 million in five years,” Neri said.

Under the program, companies have the option to fully settle their delinquencies within the six-month amnesty period or pay in equal monthly installments of up to four years. The SSS expects 25,300 employers to avail of the amnesty program.

Delinquent employers have been a major problem of the agency.

Last year, SSS filed cases against a total of 1,133 employers for failing to remit contributions of workers estimated at P478.22 million, including penalties amounting to P167.04 million.

Employers can pay their contributions in full or submit an installment payment proposal within the six-month availment period. Installment payments have a maximum term of 48 months and a three percent annual interest.

Neri said that the agency would withdraw the cases against employers who would avail of the amnesty. At the same time, he said, SSS would re-file the charges if they fail to remit their delinquent contributions in full or if they default on their installment payments under the amnesty program.

Delinquent employers face imprisonment of six to 12 years and a maximum fine of P20,000 as provided under the Social Security Act of 1997.

Over 600 of the cases filed in 2009 were against employers in the National Capital Region. The agency also sued at least 188 employers who refused to present company records. –Iris C. Gonzales (The Philippine Star)

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