SSS Condonation Law to Benefit Delinquent Employers, Employees
Senator Richard J. Gordon is optimistic that millions of employees of delinquent employees could now re-avail of their benefits from the Social Security System (SSS) with the enactment of the SSS condonation law.
Republic Act No. 9903, or the Social Security Condonation Act, would also help ease the burden from non-compliant companies that were facing economic difficulties.
"This law would redress aggrieved workers in the private sector whose contributions were religiously deducted from their monthly salaries but could not avail of loans and other benefits because their employers have not remitted their contributions," Gordon said.
"Since the law condones the penalties for delinquent SSS policy contributions, it would also offer reprieve to thousands of employers with financial woes and would ensure that their businesses continue so that they could provide employment for our people," he added.
The Social Security Condonation Act was signed into law Thursday by President Gloria Macapagal-Arroyo in the Calauan Housing Project in Barangay Dayap, Calauan, Laguna.
There are about 164,111 delinquent employers and P94-billion receivables from unpaid contributions to the SSS.
Under the law, delinquent employers may remit a down payment of at least 5 percent of the total contribution delinquency and pay the remaining balance in equal monthly installments within a period of 48 months or four years.
RA 9903 also provides that pending cases filed against the employer shall be withdrawn without prejudice to the refiling of the case in the event the employer fails to remit in full the required delinquent contributions.
"This is a one-time condonation program to make people more responsible, to pay more attention to their obligations to remit the premiums of their employees," Gordon said. (PNA)
Saturday, January 9th, 2010