SSS to run after erring employers

MANILA, Philippines — State-run Social Security System (SSS) said the government would run after erring employers who continue to snub the Contribution Penalty Condonation Program (CPCP) scheduled to end early next month.

SSS president and chief executive officer Aurora Ignacio said more than 100,000 delinquent employers have yet to avail of the program launched last March as its deadline draws near.

The transitory clause of Republic Act 11199 or the Social Security Act of 2018 provided that a contribution penalty condonation program be implemented for six months.

“Only a few weeks left before the deadline, yet there are 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 who continue to violate the SS Act of 2018 shall pay penalties and may face imprisonment ranging from six to 12 years and a fine of P5,000 to P20,000.

As of July, the SSS has collected P795.97 million unpaid premiums from 31,774 employers benefiting 307,578 employees. The pension fund has condoned P1.67 billion in penalties.

“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. You have until Sept. 6 to avail of the program and bring back your records to good standing,” she 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.

Under the new law, the penalty imposed on unpaid contributions was reduced to two percent.

Those who are qualified to avail are employers with unpaid contributions, employers who have not yet registered with SSS, including household employers as well as employers who have pending or approved proposals under the installment scheme of SSS, including those with pending or approved applications under the program for acceptance of properties through dacion en pago.

Also qualified are employers with cases pending before the Social Security Commission, Courts or Office of the Prosecutor and employers who have settled all contributions before the effectivity of RA 11199, but with unpaid penalties as well as those who were given a Warrant of Distraint/Levy/Garnishment (WDLG) or encumbrance.

“We always stress the importance of availing of the CPCP to avoid paying for the penalties that are sometimes higher than the actual premiums that they have to pay. When you settle your financial obligations with SSS, your employees will be able to maximize their benefits and privileges as SSS members,” Ignacio said.

SSS advised delinquent employers to go the nearest SSS branch to apply for CPCP and have their account assessed first. For those who want to pay through installment, they may submit an installment proposal to the Head of the SSS Branch/Office or Large Account Department.

“The pension fund shall only require a minimum down payment equivalent to at least five percent of the total contribution delinquency. The employers must also submit a promissory note indicating their intent to pay the balance of the delinquency in equal monthly installments within a period of four years with the first monthly installment paid within 30 days after the date of approval of the proposal,” she added.