SSS opens applications for penalty condonation

MANILA, Philippines — State-run Social Security System (SSS) is now accepting applications for the penalty condonation program until Sept. 6, giving over 132,000 members and employees the opportunity to wipe out their delinquencies without paying penalties.

In a statement released over the weekend, the Social Security Commission (SSC) – the policy making body of the SSS – said it has already approved the circular laying out the guidelines for a six-month penalty condonation program, pursuant to Republic Act 11199 or the Social Security Act.

The SSS said the six-month period for the program commenced last March 5, the date when the Social Security Law became effective, and will last until Sept. 6.

Following this development, the SSS said delinquent employers may now submit their letters of intent to avail themselves of the condonation program at any SSS branch.

Newly-seated SSC ex-officio chairman and Finance Secretary Carlos Dominguez said the penalty condonation program would benefit close to 1.4 million employees in the private sector nationwide.

“This is good news for employees of delinquent employers who may soon avail of the condonation program and make themselves compliant with the Social Security Law. As much as possible, we want to avoid lengthy judicial processes,” Dominguez said after the SSC meeting, which was held last March 13.

“SSS contributions are savings for the future and hardworking Filipino workers deserve to benefit from the contributions employers are duty-bound to remit throughout their productive years,” he added.

SSS officer-in-charge Aurora Ignacio said approximately P10.66 billion in unpaid premiums, based on established collectibles, is expected to be collected from this one-time amnesty program.

She said the SSS also expects to waive around P13.91 billion worth of penalties if all employers tagged as delinquent would file and avail themselves of the condonation program.

In an earlier interview, SSS senior vice president and chief legal counsel Voltaire Agas said the penalty condonation program would encourage more members and employers to come out and settle their unpaid contributions as the SSS will waive their penalties within the prescribed six-month period. 

Antonio Argabioso, SSS vice president for the large accounts division, said members would also be given an opportunity to clean up their delinquencies either through full payment or installment basis.

Republic Act 11199 or the SS Act seeks to empower the Social Security Commission to increase benefits, condone penalties and rationalize investments, among others.

Under the transitory provisions of the law, an employer who is delinquent or has unpaid contributions may, within six months from the effectivity of the law, remit said contributions or submit a proposal to pay it in installment without incurring the prescribed penalty.

Upon approval and payment of the contributions in full or installments, any pending case filed against the employer shall be withdrawn. However, this will be refiled if the employer fails to settle their obligations.

The law also designated the Secretary of Finance as ex-officio chairperson of the SSC, which is tasked to direct and control the SSS.