QuestionsQuestions (CIRCULAR NO. 404)
The objectives are (1) to ensure registration of unregistered employers with the Fund, and (2) to compel employers to settle their provident obligations.
It applies to: (1) all unregistered and delinquent registered employers who deducted monthly savings from employees but failed to remit to Pag-IBIG, and (2) employers with pending applications for a plan of payment from enforcement efforts who were not qualified under Circular 387.
The employer must pay: (1) total unremitted monthly mandatory savings (including employer counterpart and employee contribution), (2) deprived dividends, and (3) total assessed penalties (TAP), computed as of the payment date of the provident obligation.
TAP refers to the penalties computed as of the employer’s payment date of the provident obligation.
For full settlement, employers are granted a 70% discount on TAP, provided they pay the total unremitted monthly mandatory savings, deprived dividends, and the remaining 30% of the TAP.
Full payment must be made within thirty (30) calendar days from the date of approval of the discount. Otherwise, the approval is forfeited.
The employer may be granted a discount based on the plan-of-payment schedule, but must submit the plan of payment not later than the 25th day from the date of approval of the application for penalty condonation; otherwise, the approval is forfeited.
Discount depends on the settlement term: 1 year or less—60%; more than 1 to 2 years—50%; more than 2 to 3 years—40%; more than 3 to 4 years—30%; more than 4 to 5 years—20%.
No. For employers opting for a plan of payment, the total unpaid balance is charged an interest of 0.50% per month until full settlement.
All other penalties shall be re-imposed, and appropriate civil and/or criminal actions shall be filed against the delinquent employer.
Payment must start exactly one month after the date of approval of the application for penalty condonation, which is treated as the due date under the plan of payment.
Eligible employers may avail of the program within one (1) year from the effectivity of the Guidelines.
Only applications with complete documents shall be accepted and processed.
It takes effect after fifteen (15) days following completion of its publication in the Official Gazette or in a newspaper of general circulation.