Wednesday, 16 December 2009 00:00
A measure granting the Social Security System (SSS) a one-time authority to condone penalties on unremitted or delinquent contributions has hurdled Congress’ approval and currently awaits President Gloria Arroyo’s signature before it becomes a law.
House Deputy Speaker Raul del Mar of Cebu City, one of the principal authors of the “Social Security Condonation Law of 2009,” said the measure grants a one-time opportunity for delinquent employers to pay all contributions due and payable.
Del Mar said once signed into law, the SSS condonation measure would not only encourage early and/or immediate settlement of the unpaid or unremitted contributions, but it would also facilitate the rehabilitation of distressed businesses. Once rehabilitated, the companies can once more contribute further to the country’s economic growth and productivity.
Rep. Lorenzo Tañada 3rd of Quezon, another author of the bill, meanwhile, said the bill provides a strong incentive for companies in arrears on their principal payments for their employees’ contributions to immediately settle what is due and overdue.
“This reduces the huge burden of dealing with the delinquency penalties that have been slapped on them,” Tañada said.
According to the lawmaker, the measure is the most important and immediately needed stimulus package directed at ordinary, privately employed individuals.
In cases of failure to remit contributions or loan payment defaults, the measure provides that upon approval and payment in full or in installments of contributions due and payable to the SSS, all such pending cases filed against the employer shall be withdrawn without prejudice to the re-filing of the case.
In addition, when a delinquent employer chooses to submit an installment proposal, the SSS shall give due course to approve and grant the same, subject to the implementing rules and regulations of the Social Security Commission provided that the employer shall remit, upon submission of the installment proposal, a down payment of not less than 5 percent of its total contribution delinquency.
The measure further provides that the employer shall remit the balance in equal monthly instalments within a period not exceeding 48 months from the date of approval of the proposal, provided, finally, that the installment payments shall bear an interest of 3 percent per annum.
“With collected and settled principal payments for the SSS members’ contributions, they can now avail themselves of the privileges of a good standing SSS member—claim benefits and get loans—benefits that would otherwise not be available had their principal payments remained unsettled. That’s the stimulus package for ordinary, privately employed individuals,” Tañada said.
Co-authors of the measure are Deputy Speaker Ma. Amelita Villarosa (lone district, Occidental Mindoro), Rep. Felix Alfelor Jr. (fourth district, Camarines Sur), Rep. Eufrocino Codilla Sr. (fourth district, Leyte), Rep. Lorna Silverio (third district, Bulacan), Rep. Narciso Santiago 3rd (party-list, ARC) and Rep. Candido Pancrudo Jr. (first district, Bukidnon).
