Title
SSS Penalty Condonation Act
Law
Republic Act No. 9903
Decision Date
Jan 7, 2010
The Social Security Condonation Law of 2009 grants employers a one-time opportunity to remit unpaid contributions to the Social Security System without penalties, allowing for installment payments while dismissing pending legal cases related to these delinquencies.
A

Condonation of Penalty

  • Employers with delinquent or unremitted SSS contributions, including those with pending cases, may remit contributions or submit installment payment proposals within six months from the Act's effectivity.
  • Employers must submit corresponding collection lists with remittance or payment proposals.
  • Upon full payment or installment approval and compliance, pending cases against the employer are withdrawn.
  • Cases may be refilled if the employer defaults or fails to remit contributions in full.

Installment Proposal

  • Employers opting for installment payments must submit a downpayment of at least 5% of total delinquent contributions.
  • Balance payable in equal monthly installments not exceeding 48 months from approval date.
  • Installment payments carry an interest of 3% per annum.
  • Approval and implementation subject to rules set by the Social Security Commission.

Effectivity of Condonation

  • Penalties under Section 22(a) of Republic Act No. 8282 are condoned upon full remittance of delinquent contributions.
  • If employer fails to comply within availment period, penalties are reimposed retroactively from the time contributions were due and will accrue until full payment.
  • Employers who settled arrears before this Act's effectivity are also granted waiver of accrued penalties for equity.

Implementing Rules and Regulations

  • The Social Security Commission must issue implementing rules within 30 days of the Act's effectivity to ensure effective enforcement.

Separability Clause

  • If any provision is declared unconstitutional, other provisions remain valid and effective.

Repealing Clause

  • All inconsistent laws, rules, decrees, orders or issuances conflicting with this Act are repealed or modified accordingly.

Effectivity

  • The Act takes effect 15 days after its publication in the Official Gazette or in at least two newspapers of general circulation.

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