SSS raises P212.88M from condonation program

THE SOCIAL Security System (SSS) has collected a total of P212.88 million from a program that forgives employers who failed to remit the premiums of their employees, a statement read yesterday.

Horacio T. Templo, SSS officer-in-charge, said in the statement the amount was collected from more than 2,000 employers who availed of the condonation program since it began in February.

He said that 1,200 employers remitted a total of P111.21 million in full payments, while P101.67 million was collected from 909 employers who opted for an installment payment scheme of up to 48 months.

The condonation program that covers accrued penalties on delinquent SSS contributions due on or before February 1 of this year is being implemented under Republic Act No. 9903 or the Social Security Condonation Act signed by President Gloria Macapagal-Arroyo in January.

The SSS said earlier it expects to collect P3.9 billion in five years through the program from 25,300 employers who have failed to remit the premiums of their employees.

Under the program, employers are given until July 31 to give the unremitted contributions of their employees to the state pension fund.

Mr. Templo said that since July 31 falls on a Saturday, the SSS has decided to extend the deadline to August 2, which is a Monday. “But employers must not wait until the deadline to avoid the last-minute rush,” he said.

“If they wait too long, they might miss this rare opportunity to have all their penalties condoned once they settle their long-overdue obligations,” he said further.

The SSS said that it will file cases against employers who remain delinquent after the amnesty period. Under the Social Security Law, the non-remittance of contributions is punishable by imprisonment of six to 12 years.

The SSS charges a 3% monthly penalty for overdue contributions and 1% for delinquent loans.

Mr. Templo also said employers must be up-to-date in paying contributions to be eligible for another amnesty program for delinquent loan amortizations of employees.

The loan amnesty program allows employers to remit their employees’ loan repayments due on or before April 1, 2010 without paying penalties.

The program, which was approved by Malacañang on June 3 upon the recommendation of the SSS, covers short-term SSS member loans such as salary, calamity, emergency, stock investment and privatization fund loans.

“Employers must first settle their overdue contributions and verify the total loan delinquency of their employees at the SSS branch nearest them before availing of loan amnesty,” Mr. Templo said.

Asked if there is a target for the loan amnesty program, SSS spokesman Joel P. Palacios said in a text message yesterday the agency has not set one.

“We are waiting for reports on results of previous amnesties and will make proper announcements when the targets are finalized,” he said.

The SSS had amnesty programs in 1987 and 1997. — Louella D. Desiderio, Businessworld