Bill condoning P94-B SSS penalties hurdles bicam

A BICAMERAL committee on Wednesday wrapped up the final version of a consolidated bill condoning some P94 billion in penalties slapped on 164,111 delinquent employers for failure to remit premium contributions to the Social Security System (SSS).

Sen. Richard Gordon said the object of the remedial legislation they expect to ratify before Congress adjourns next week is to “see to it that those suffering from incurred obligations in the past due to hardships caused by economic setbacks would be given one last chance to be able to pay these obligations.”

The condonation covers a hundred percent of the penalties due and the coverage will be for 48 months, with provisions for a down payment of 5 percent of penalties for that period and with 3 percent per annum. “All the penalties from unremitted premiums will be condoned [but] not the principal, just the penalties.”

He added: “This is very, very light and this is done because congressmen and senators feel that there is an economic crisis in the world that is affecting our people and, of course, the series of typhoons and disaster that occurred in our country and the fact that we want to make sure business will continue to provide employment.”

Majority Leader Miguel Zubiri pointed out the SSS bill is similar to what Congress passed a few months ago on the socialized low-cost housing loans condonation program “where we have waived all penalties of delinquent homeowners under housing agencies.”

“This [SSS penalty-condonation bill] is for the businessmen, the small and medium enterprises that are suffering now from the economic crisis many of which were unable to pay premiums of their employees... This is good so we can help them,” added Zubiri.

Quezon Rep. Erin Tañada, a member of the panel that hammered out the consolidated bill, noted the remedial measure, once enacted into law, “will also help labor because once employers pay what premiums they are supposed to be paying, the employees will be able to take out loans from the SSS.”