SSS waives penalties for delinquent members

To encourage delinquent members to pay their loans, the Social Security System (SSS) will condone penalties on overdue principals and interests until the end of June. "The loan amnesty is a great opportunity for them to restore their good standing with SSS," said Emilio de Quiros Jr., SSS president and chief executive officer. Over 270,000 employers of around seven million workers will likely benefit from the six-month amnesty program, De Quiros added. According to SSS rules, 1-percent monthly penalty is slapped on companies that miss the deadlines for paying their loan amortizations. Under the amnesty program, employers can remit their delinquent loans in full or by installment for up to 24 months, on an annual interest of 3 percent. De Quiros said the program targets members who are employed — the sector comprising the biggest chunk of unpaid loans. An SSS study shows that four out of five delinquent loans belong to the employed. He said the program "will help SSS cut down the overall delinquency of members." "Many employers neglect their duty to remit monthly loan amortizations of employees, so they are still identified as delinquent even if their contribution payments are up-to-date," De Quiros said. De Quiros explained that employers deduct their employees' loan payments from their monthly payroll, in line with certain terms and conditions. He said that companies that "deduct loan payments from monthly salaries of workers — without remitting them to SSS — are liable under the law and are risking to ruin their reputations as good corporate citizens." De Quiros said employers with overdue loan remittances will be deprived of a clearance from SSS, which is required in the annual renewal of business permits. Their employees will also be deprived of loan privileges, De Quiros added. — PE/JE/OMG, GMANews.TV