Question & AnswerQ&A (CIRCULAR NO. 404)
The guidelines aim to ensure the registration of unregistered employers with the Pag-IBIG Fund and to compel employers to settle their provident fund obligations.
All unregistered and delinquent registered employers who deducted monthly savings from employees but failed to remit them, and all employers with pending plan of payment applications from enforcement efforts who were not qualified under Circular 387.
The total unremitted monthly mandatory savings including both employer counterpart and employee contribution, deprived dividends computed up to the payment date, and total assessed penalties (TAP) as of the payment date.
A 70% discount on the total assessed penalties (TAP) is granted for full settlement within 30 calendar days from the date of approval of the discount.
They may be granted penalty discounts based on the payment plan terms provided they submit their plans no later than the 25th day from the approval date of their penalty condonation application; otherwise, approval is forfeited.
Discounts range from 60% for settlement terms of 1 year or less to 20% for terms more than 4 to 5 years, with descending discounts for longer settlement terms.
An interest of 0.50% per month is charged on the unpaid balance until full settlement.
All other penalties will be re-imposed, and appropriate civil and/or criminal actions may be filed against the delinquent employer.
Payment starts exactly one month after the date of approval of the penalty condonation application, which is considered the due date under the plan.
Employers must issue the corresponding number of post-dated checks to cover the payment schedule.
Employers can avail of the program within one year from the effectivity of the guidelines.
The Guidelines took effect fifteen (15) days after publication in the Official Gazette or a newspaper of general circulation.