Bicam panel OKs amnesty of penalties on unremitted SSS premiums

A joint congressional panel on Wednesday approved a reconciled version of the House of Representatives and Senate bills seeking a one-time amnesty for penalties on unremitted contributions to the Social Security System (SSS). Senator Richard Gordon, chairman of the Senate panel, said some 164,111 delinquent employers who owe the SSS an estimated P94 billion contributions and their employees will benefit from the measure. "This (measure) would give them one last chance to be able to pay these obligations and all the penalties will be condoned, not the principal, just the penalties," he said. If an employer fails to pay contributions to the SSS, his employees are the ones who would ultimately suffer because they would be denied of their social security benefits, he explained. "Delinquent contributions may be due to the financial difficulties faced by the employers, but the burden is passed on to the employees who would be denied of their benefits and loan privileges," the senator said. "A condonation program would offer reprieve to thousands of employers with financial woes, while enabling their employees to resume their entitlement to benefits and loans," he added. Under the harmonizeded bill, there are two modes to avail of the condonation of penalties. First, the employer pay in full its delinquent principal contributions within six months from effectivity of the act, and second, an employer submit an installment proposal within six months from effectivity of the act. If an employer or company avails of the condonation through installment, a five percent downpayment of its total contribution delinquency should be paid upon submission of the written proposal. The employer should also remit the balance up to a maximum of 48 equal monthly installments. And if an employer fails to remit the delinquent contributions, the penalties will be reimposed from the time the contributions first became due and it will accumulate until the delinquent account is fully paid. The reconciled bill also states that employers who settled arrears in contributions before the effectivity of the Act shall likewise have their accrued penalties waived. Also, upon payment of remittance, pending administrative or criminal cases by virtue of such delinquency shall be deemed waived or terminated. The SSS charter imposes a penalty of three percent per month until the delinquent account is fully paid. Once the reconciled version is ratified by both the House and Senate, it will be submitted to Malacaňang for the signature of the President. - GMANews.TV