New law gives erring employers chance to settle SSS payments

President Gloria Macapagal Arroyo on Thursday signed into law a measure allowing erring employers to remit their employees' delinquent Social Security System (SSS) contributions without paying penalties incurred from late payments. “Because of SSS Condonation Law, the employees will now have a chance to reconcile the past delinquency and therefore secure a safe and solid future for their families," said Senate Majority Leader Juan Miguel Zubiri, author of Republic Act No. 9903. Under RA 9903, all the penalties and arrears incurred by employers for failing to remit the SSS contributions of their workers will be condoned, leaving them only with the balance to settle. Zubiri, however, warned that penalties would be re-imposed to employers who fail to remit payments in full or missed an installment within the availment period prescribed by the new law. President Arroyo signed the measure during her visit at Calauan Housing Project in Brgy. Dayap in Calauan, Laguna. Zubiri said the measure will help alleviate the economic difficulties face by many small and medium enterprises that were forced to shut down under threats of lawsuits and penalties by the SSS. He said erring employers would also get a reprieve needed as RA 9903 also provides that pending cases filed against the employer shall be withdrawn without prejudice to the refilling of the case in the event the employer fails to remit in full the required delinquent contributions. He said the grant of amnesty for the penalties would redound to the benefit of the hundreds of thousands of workers whose employers have not been paying their contributions to SSS, using the same for other corporate financial requirements. To date, the SSS has a total of P107 billion in collection arrears. Of the amount, P95 billion is the principal amount while P12 billion comprise the penalties to be condoned once the bill becomes a law. “I am optimistic that the SSS Condonation Law will also be appreciated and lauded by the hundreds of thousands of workers that are having problems with their SSS contributions due to the non-compliance of their employers," Zubiri said. - Amita Legaspi/KBK, GMANews.TV