The Social Security System is now implementing an amnesty program for loans which took due last April 30, joining the government in packaging benefits to help its members cope with the rising prices of basic commodities.
Penalties accumulated by delinquent payments of members for salary, emergency and calamity loans will be condoned if members avail of the offer.
Such were offered to workers on Labor Day as part of the non-wage benefits package.
Earlier, SSS president and chief executive officer Corazon de la Paz-Bernardo in a memorandum said that unpaid loans may have accumulated penalties in time discouraging borrowers from paying. This year, however, SSS offers writing off the penalties for unpaid loans.
She also said that borrowers who avail themselves of the amnesty would only pay for the borrowed amount plus the interest while penalties for delinquency in payments could be staved off, if the application for amnesty gets approved.
In other words, the amount of penalties to be condoned would be proportionate to the arrears or the outstanding principal and interest paid by the borrower.
To keep the payments easy, SSS also accepts partial or payments in full within the amnesty period.
“If only half of the arrears are paid during the amnesty then only half of the penalties would be condoned, while the balance would continue to accumulate penalties,” de la Paz-Bernardo said.
“This is why we urge borrowers to fully pay their delinquencies within the amnesty to enjoy 100 percent condonation of penalties,” she added. — Jasmin R. Uy/MEEV