Question & AnswerQ&A (HDMF CIRCULAR NO. 263)
The purpose of HDMF Circular No. 263 is to encourage delinquent employers to register with the Pag-IBIG Fund and to collect and remit the mandated membership contributions and employer counterpart by offering penalty condonation under specified guidelines.
The circular covers all unregistered employers who register by December 31, 2009, employers whose applications for waiver from Fund coverage were denied but have not registered, and employers registered but who did not collect employee contributions or remit employer counterparts.
No, employers who collected contributions and/or STL amortization from employees but failed to remit them are excluded. They must pay all unremitted contributions plus penalties and may be criminally prosecuted if they fail to comply.
The deadline for filing an application for penalty condonation is on or before the last working day prior to December 31, 2009.
Grounds include financial difficulties affecting business operations, failure of officials to register or remit contributions without higher management's knowledge, unsuccessful legal contest against PD 1752 coverage, and other reasons acceptable to the Board of Trustees.
Eligible employers must remit all unremitted employer contributions from when employees should have been covered up to approval, collect and remit current contributions, and submit a letter requesting penalty condonation.
All penalty charges incurred from the first month of delinquency up to approval are condoned, provided the employer pays all obligations within thirty days from approval.
Yes, employers financially incapable of full payment can submit a payment plan within seven calendar days after approval, not exceeding 24 months. Penalties condoned are proportional to downpayments, balance incurs 1% monthly interest, and payments start one month after approval.
Violation leads to restoration of previously condoned penalties, filing of civil and/or criminal cases, and a 3% monthly penalty for failure to remit current contributions.
Membership effectivity is based on the date the employee's initial Pag-IBIG Fund Remittance (PFR) was filed; for members with unremitted deductions, membership begins on the date actual remittance should have been made.
These employers continue to incur penalties on unremitted contributions and are subject to criminal liability and prosecution under PD 1752, as amended.
The Pag-IBIG Fund Senior Management Committee may amend, revise, or modify the guidelines consistent with the Fund's charter and existing laws.