Nearly 7 million SSS members to benefit from condonation

The Social Security System (SSS) said an estimated 6.6 million workers would benefit from the new law that condones penalties on unpaid contributions of delinquent companies.

In a statement, Romulo Neri, SSS president, said employees of delinquent companies would regain their active status and be able to avail of loans and benefits under the Social Security Condonation Law of 2009, which President Arroyo signed into law on January 7.

“Over 4.8 million workers are currently employed in companies with overdue contributions. An estimated 1.7 million more have premiums that remain unpaid by employers that already ceased operations but are still liable for neglecting their obligations under the Social Security Law,” Neri said.

The condonation law aims to help employers settle their ballooning delinquencies by waiving penalties. Cases that SSS filed against companies availing of condonation would be withdrawn.

Victor Abola of the University of Asia and the Pacific said the condonation will also boost consumer spending.

“Of course, this will help. It is a big stimulus,” he said.

But Abola warned that the pension fund must make sure these companies will settle their delinquencies.

According to SSS, the program’s implementing rules and regulations would be issued within 30 days after the law takes effect, which is 15 days following its publication in two national newspapers or in the Official Gazette.

Neri urged employers to avail of the amnesty, which is “a rare chance they cannot afford to waste,” adding that SSS would step up legal efforts against companies that remain delinquent after the amnesty period.

“The amnesty, which would run for six months, only covers penalties on unpaid contributions prior to the law’s effectivity. Thus, employers should continue to pay their current contributions as they fall due, which is on or before the tenth day after the applicable month,” he said.

Employers are charged a 3-percent monthly penalty for overdue premiums, on top of the fines, and imprisonment of up to 12 years, as provided by the SSS charter.

The new amnesty is only the third in the 52-year history of the SSS. Previous amnesty programs were in 1987 and 1997. –Lailany P. Gomez, Manila Times