Question & AnswerQ&A (CIRCULAR NO. 2018-008)
The minimum contribution delinquency amount is at least One Hundred Thousand Pesos (₱100,000.00) exclusive of penalty.
All delinquent employers with contributions delinquency of at least ₱100,000, with or without pending cases before the DOJ, Courts, and SSC, and currently experiencing financial difficulties such as losses, mismanagement, or calamities, evidenced by their current Audited Financial Statement.
They are entitled to defer payment of their penalty liabilities for one year from the payment date of the principal contribution.
A penalty of three percent (3%) per month shall continue to be imposed on the balance until the principal contribution is fully paid.
Payment of the total penalty delinquency after the one-year deferment may be made in full or by installment subject to approval and with a legal interest of six percent (6%) per annum imposed on the outstanding penalty.
Employers need to submit a letter-request to pay the principal contribution in full, a duly notarized Promissory Note/Undertaking, and Collection Lists (SSS Form R3 or SSS Form ML2). The agent must have a Special Power of Attorney (SPA) to bind the employer.
Approval is by: BO/LAD Division Heads for ₱100,000 to ₱2,000,000; BO/LAD Group Heads for ₱2,000,000.01 to ₱5,000,000; and BO/LAD Sector Heads for ₱5,000,000.01 and above (principal delinquency only, excluding penalties).
The EDSRC reviews all reconsideration requests on denial of settlement proposals made by BO/LAD Heads and makes recommendations to the President and CEO of the SSS for final decision.
If the EDSRC recommendation is not unanimous, the case is elevated to the Social Security Commission (SSC) for approval.
The EDSRC is composed of the Senior Vice-President/Chief Legal Counsel as Chairperson; Senior Vice-Presidents or their Designated Officers-in-Charge from NCR, Luzon, Visayas, Mindanao, Account Management Group, Lending and Asset Management Group; and Vice-Presidents or their Designated OICs from Operations Legal Services and the Assistant Vice-President from the Commission Legal Department.