Around 20 percent or some P11 billion in penalties out of the P55 billion arrears by employers and employees in the private sector will be covered by the latest round of condonation program of the Social Security System.
“Total amount of delinquencies is about P55 billion and at least 20 percent of that are penalties to be condoned,” SSS senior vice president Mario Sibucao said in a virtual briefing on Thursday.
About 700,000 employers whose businesses were affected by the pandemic and calamities are qualified under the condonation program.
The latest condonation program aims to help both the employers and employees who are affected by the pandemic, SSS president and chief executive officer Aurora Ignacio said.
Ignacio said the four relief and restructuring programs of SSS are for borrowers and employers with past-due payments on their employees’ compensation contributions as well as salary or housing loans.
“But given the circumstances we face, we do not want to add burden to those who are already encountering hardships but rather help them get back on their feet. With that in mind, we are launching four new pandemic relief and restructuring programs (PRRP),” Ignacio said.
Applications for Contribution Condonation Penalty Program; Enhanced Installment Payment Program; Housing Loan Restructuring and Penalty Condonation Program; and Short-Term Member Loan Penalty Condonation Program will be opened for applications this month.
“Employers will be able to pay overdue SSS contributions free of penalties in full or installment for a period of four to 24 months depending on the total amount of delinquency,” Ignacio said.
The program will be applicable to unremitted or unpaid contributions from March 2020 onwards and will be offered to qualified employers for six months starting November 2021.
SSS EVP Rizaldy Capulong said the agency's fund life remains strong even as expenditures as of August have surpassed contributions collections.
He said total contributions collected by the state-owned insurance agency for the private sector have reached P155.59 billion as of August.
On the other hand, spending has reached P159.6 billion, of which P154 billion was accounted for by benefits extended to members.
“However, because we have investment income of about PHP20 billion, that P4 billion difference has been provided for,” he said.