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Law condones fines for Default SSS premiums

Written by magnolia_eic on 15 January 2010

by: Rey Anthony Chiu

SMALL and medium enterprises who may have been delinquent in premium remittances can heave in relief when President Gloria Macapagal-Arroyo has signed Republic Act 9903.

Despite losing possible billions of pesos in accumulated penalties for the government, the President who has been determined to help perk up the pension fund of private employees has enacted the law that condones penalties on delinquent remittances of premium contributions to the Social Security System (SSS).

Government sources revealed that un-remitted premium contributions all over the country runs at a staggering P109 billion.

This has also accumulated double in penalties, now estimated P280 billion.

The President said waiving the penalties will be a big help to small companies, especially those struggling to survive the global financial crisis, reports bared.

By propping up the small delinquent in premium companies, the government also hopes to goad them to resume their remittances.

Giving the employees their rightful benefits under the law would be a logical consequence of the government offer.

“For 2009 alone, the penalties amounted to P68 billion, which we did not expect to collect anyway since a lot of companies were so hard up, and this was our way of helping them survive,” said SSS president and Boholano, Romulo Neri in reports.

“But they must pay their share of the premiums so that their employees can avail themselves of the benefits under the system,” he added.

Under the law, the premium payment schedules would be in such a way that the company pays a downpayment of five percent of total contribution delinquency.

The balance is paid in equal monthly installments within 48 months from the time the proposal is approved by the SSS.

The installments carry a three percent annual interest, the new law also provides.

If the company regresses again, the penalty condoned by the law will, however, be re-imposed.

This happens in case the employer fails to remit in full the required delinquent contributions or he defaults in the payment of any installment under the approved proposal within the avail-ment period. (PIA)

PRESS RELEASE
REY ANTHONY CHIU

Philippine Information Agency
Tagbilaran City Information Center
411 2292 / 0920 954 5482 / 501 8554 email: piabohol171@yahoo.com

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