State-run pension fund Social Security System asked over 100,000 delinquent employers to avail of the contribution penalty condonation program ahead of the Sept. 6 deadline.
The transitory clause of the Republic Act No. 11199, or the Social Security Act of 2018, provides that a contribution penalty condonation program should be implemented for six months from its effectivity in March.
“Instead of waiting for the last day, we strongly urge all delinquent employers to immediately apply for the condonation program to settle the unpaid premiums of their employees and have the incurred penalties waived,” SSS president and chief executive Aurora Ignacio said in a statement.
Ignacio said delinquent employers have until Sept. 6 to avail of the program and bring back their records to good standing.
SSS said that since the CPCP’s implementation in March, the fund collected P795.97 million in unpaid premiums from 31,774 employers benefiting 307,578 employees as of July. The pension fund condoned P1.67 billion in penalties.
“Only a few weeks left before the deadline, yet there is still more than 70 percent of delinquent employers who have not yet availed of the CPCP. They should take advantage of this big opportunity to avoid having a criminal liability and be able to help their employees claim the benefits due them without delay,” Ignacio said.
“Employers have the option to pay in full the amount of unpaid contributions or through an installment payment scheme with only six percent interest per year,” Ignacio said.
Employers who continue to violate the SS Act of 2018 will pay penalties and may face imprisonment ranging from six to 12 years and a fine of P5,000 to P20,000.
Under the new law, the penalty imposed on unpaid contributions was reduced to 2 percent.