SSS to condone employers, employees for delinquent loans-A A +A
Monday, May 2, 2011
THE Social Security System (SSS) is offering condonation program for unremitted or delinquent loan amortizations of employees and employers until June 30.
The condonation program, which started January 3, applies only to penalties on unremitted or delinquent loan amortizations, including principal and interest due on or before April 1, 2010.
To avail of the program, employers must be updated in the payments of their employees' contributions. Employers who are delinquent in the payment of their SSS contributions must first settle in full or through outright payment, or submission of an installment proposal.
Upon remittance of the delinquent loan amortizations in full or approval of the installment proposal, both the employers and employees can avail of the benefits, such as update of the employer's loan record, restoration of the short- term member loan privileges of the employees subject to guidelines and full enjoyment of employees' SSS benefits in times of contingencies.
Those qualified to avail of the amnesty program are employers who are delinquent in the remittance of their employee's loan amortizations, those with pending or approved installment proposal under the Installment Payment scheme of the SSS, members with applications under the program for Acceptance of Properties, members with pending cases before the Social Security Commission, courts or the office of the prosecutor and employers of employees with delinquent loans granted under the current or previous employers or whose loans were granted as self-employed/voluntary -paying members.
In a press statement, employers should take advantage of the loan amnesty, as the government owned and controlled corporation is going to step up the filing of cases against employers who remain delinquent after their amnesty period.
However, SSS clarified delinquent self-employed and voluntary-paying in loan payment are not included in the penalty condonation program offered by the government insurance system.
Under existing policy rules, loans are charged 10-percent interest per annum within a period of two years and a penalty of one percent. (JM Agreda)
Published in the Sun.Star Baguio newspaper on May 02, 2011.