Pag-IBIG penalty condonation for delinquents to start January 2012

CEBU, Philippines - Starting next year, delinquent borrowers and unregistered employers are given a six-month period for the condonation of penalty by the Home Development Mutual Fund or Pag-Ibig Fund.

Anthony Maglungsod, officer-in-charge assistant department manager for operations, said Pag-Ibig’s condonation of penalty will start from January 1 until June 30, 2012.

Under HDMF Circular No. 399, the program shall cover employers who did not enroll their employees with Pag-IBIG and those who also did not collect membership contributions.

Maglungsod said employers may apply for penalty condonation on the employer’s counterpart contributions for their employees.

However, Maglungsod added that those employers who have previously availed of any penalty condonation offered by the Pag-Ibig Fund, and employers who collected membership contributions and/or STL amortizations from their respective employees but failed to remit the same to the Fund, cannot avail of this program.

Maglungsod also said that unregistered employers who wish to avail of the program are required to register with the Fund through its Online Employer Registration System prior to applying for penalty condonation not later than June 30, 2012.

Upon application for penalty condonation, employers are required to remit their contributions of current employees for the current remittance period and every month thereafter. Otherwise, the corresponding penalty chargers will apply.

The applications for penalty condonation are approved or disapproved not later than two months from the date of submission of the complete documents.

Once the application for penalty condonation is approved, employers have the option to settle it in full or through a plan of payment to be submitted within seven days and not later than the 25th day from the day of approval. Otherwise, said approval shall be forfeited.

The employers are required to pay all their counterpart dues from the approval of application and the dividends that said arrearages could have earned. The payment shall be made in full within 30 days from approval of the application for penalty condonation.

Employers whose applications are disapproved are required to pay all contributions, arrearages of its members including applicable penalties, interests and dividends.

The failure to comply with the said conditions will result to corresponding legal actions against the delinquent employers. — (FREEMAN)