Guidelines on Contributions Penalty Condonation and Restructuring Program for SSS Household Employers

Pursuant to Section 4(a)1, (5) and (8) of Republic Act No. 11199 (Social Security Act of 2018), granting the Social Security Commission (SSC). the authority to formulate. adopt, amend and/or rescind such rules and regulations as may be necessary to carry out the provision and purposes of the SS Act of 2018, approve restructuring proposals for the payment of due but unremitted contributions, and condone, enter into a compromise or release, in whole or in part. such penalties imposed upon delinquent Social Security (SS) contributions, and SSC Resolution No. 414-s.2022 dated 22 June 2022, the SSS hereby issues the following guidelines for its effective implementation.
Unless the context of a certain provision of this Circular clearly indicates otherwise, the term “Program” refers to the SS Contribution Penalty Condonation and Restructuring Program (CPCR-P), as provided herein.

SECTION 1. Coverage — All Household Employers (HRs) who are delinquent or have not remitted all contributions and/or penalties from actual date of employment of the Kasambahay reported to SSS prior to the effectivity of this Circular up to the month of receipt of the application for condonation are covered by this set of guidelines. As a continuing condonation program, delinquencies incurred for Kasambahays employed after the effectivity of this Circular are also covered under this Program.

All HRs who are delinquent in the payment of SS contributions and/or penalties whose financial positions demonstrate a clear inability to pay the assessed delinquency arising from economic crisis, financial reverses, or resulting from pandemic, natural calamity, or man-made disaster without fault on the part of the HR may apply for condonation under this Program.

SECTION 2. Submission of Application — The HR shall submit an accomplished Application Form (Annex A) together with the documentary requirements enumerated in Section 3 and the mode/proof of payment requirements stated in Section 9 of this Circular, to the SSS Branch Office (BO) having jurisdiction over its account, not earlier than the effectivity of this Circular.

SECTION 3. Documentary Requirements — To support its application, the HR shall comply with the requirements listed in Annex B and an Affidavit/Sworn Statement of Two Disinterested Persons (Annex C), or Certification from the Homeowners/Condominium Associations/Barangay (Annex D), stating the reason/s for the inability to remit/pay the assessed delinquencies.

The HR shall also submit any of the following, when applicable:

a. Official receipt of the down payment which shall not be less than 5% of the total amount of delinquency, for installment payment proposals;
b. Official Receipt of the full payment of the Employees Compensation (EC) contribution and penalty delinquency, if applicable; and
c. Installment Proposal (Annex E-1) and Promissory Note for Installment Proposal (Annex E-2).

All applications with complete documentary requirements and the proposed mode of payment, shall be received and evaluated by the concerned Accounts Management Section (AMS) of the BO having jurisdiction over the HR.

SECTION 4. HR with Pending Cases or with Final Judgment — Upon approval of the application under this Program, all pending cases filed against the HR may be withdrawn, archived, or provisionally dismissed as may be allowed by the court or office of the prosecutor without prejudice to its revival or refiling, or may be a ground for a compromise judgment.
This Program shall not extend to HRs with judgments that have acquired finality.

SECTION 5. HR with Pending or Approved Proposals under the Installment Payment Scheme Program — All pending or approved Installment Payment Proposals shall remain in full force and effect and shall only be deemed withdrawn or cancelled upon approval by the SSS of the application under this Program.
Any outstanding balance under other approved installment payment schemes shall be considered as part of the total delinquency for the purpose of this Program; subject to re-computation.

SECTION 6. HR with Pending Application Under the Program for Acceptance of Properties Offered Through Dacion en Pago — The HR who applies under the Program shall be deemed to have withdrawn its pending application for Dacion en Pago upon approval of the application by the SSS. This pertains to Dacion en Pago proposals for payment of SS contributions only.

SECTION 7. HR with Issued Warrants of Distraint, Levy and/or Garnishment (WDLG) — The HR subjected to WDLG processes and procedures for delinquencies incurred from date of employment and onwards may avail of the Program except where a WDLG had been issued. However, should the execution of the WDLG be unsuccessful or the money and property obtained are insufficient to cover the entire assessed delinquency appearing on the WDLG, the account of the HR shall be returned to the 130 of origin so that the HR can avail of the CPCR-P.

SECTION 8. Financial Incapacity —As proof of its financial incapacity, the HR shall submit the following documents;

Affidavit/Sworn Statement of two (2) disinterested persons (Annex C) living in the neighborhood/area of the HR, stating that the household employer has suffered financial losses due to pandemic/natural calamity/fire /burglary/death or loss of provider/or any reason(s) that the household has no longer the financial capacity to settle its financial obligation to the SSS.
Further, it must be stated therein the employment period of the Kasambahay who is/are subject to non-payment of contributions; or
Certification from the Homeowners/Condominium Association or from the Barangay (Annex D) stating that the household employer has suffered financial losses due to pandemic/natural calamity/ fire/burglary/death or loss of provider/ or any reason(s) that the household has no longer the financial capacity to settle its financial obligation to the SSS. Further, it must be stated
therein the employment period of the Kasambahay who is/are subject to non-payment of contributions.
However, notwithstanding the preceding paragraph, in cognizance of the adverse impact of the COVID-19 pandemic severely affecting the Philippine economy, presentation of documents as proof of a financial loss for the years 2020, 2021 and 2022 is no longer necessary to avail of the condonation of penalty imposed on delinquent contributions for the period March 2020 to February 2022 and will instead pay the principal amount plus a legal interest of six percent (6%) per annum.

SECTION 9. Modes of Payment in Settling Delinquencies — An HR-Applicant may settle the total assessed contribution delinquency which is the sum of delinquent contributions with interest and contributions with penalties, as the case maybe, through any of the following modes:

Payment in FULL of the total assessed contribution delinquency through any SSS BO or authorized collection agent (e.g. accredited banks, payment centers/partners) of the SSS, within fifteen (15) calendar days from receipt of the Notice of Approval by the SSS; or
Approved installment proposal to settle the total assessed contribution delinquency provided that the delinquency qualified for condonation shall be subject to the legal interest of six percent (6%). The HR shall be required to pay a down payment of not less than five percent (5%) of the total amount of delinquency upon submission of the application. The balance of delinquency
shall be payable in accordance with the Schedule of Monthly Installment Payments as follows:

TOTAL AMOUNT OF DELINQUENCY	MAXIMUM NUMBER OF MONTHLY INSTALLMENT
Up to P50,000.00	Twelve (12) months
Over P50,000.00 — P250,000.00	Sixteen (16) months
Over P250,000.00 — P500,000.00	Twenty (20) months
Over P500,000.00 — P750,000.00	Twenty-four (24) months
Over P750,000.00 — P1,000,000.00	Thirty (30) months
Over P1,000,000.00	Thirty-six (36) months

The HR-applicant shall issue, within fifteen (15) calendar days from receipt of Notice of Approval, all the Post-Dated Checks (PDCs) with Payment Forms and the Contributions Collection list (CCL) corresponding to the months covered by the installment to be submitted by HR-applicant to the assigned Account Officer (AO) of SSS BO. For this purpose, HRs may submit PDCs issued by a Third Party, provided that a duly notarized Joint Undertaking (Annex F) in favor of the SSS shall be executed by both the HR and the said Third Party.

Further, HR with a total amount of delinquency of Fifty Thousand Pesos (Php50,000.00) and below, net of down payment, may be allowed not to issue PDCs provided that the HR shall execute a duly notarized Undertaking (Annex G) in favor of the SSS to pay its delinquencies in accordance with the above-mentioned Schedule of Monthly Installment Payments.

SECTION 10. Recommending and Approving Authorities — The SSC has designated the SSS Officials to recommend, approve or deny the applications filed under this Program.

SECTION 11. Cancellation — The Notice of Approval issued by the SSS shall be deemed cancelled under any of the following circumstances:

1. For Full Payment, failure to pay in full within fifteen (15) calendar days from receipt of the Notice of Approval issued by the SSS.

2. For approved Installment proposal, failure to submit the PDCs with Payment Forms and the corresponding CCL within fifteen (15) calendar days from receipt of the Notice of Approval.

3. Any default in the payment under the approved installment proposal within the period provided therein; or

4. Failure to pay the current contributions and loans from the month of filing of the application until the approval by the SSS, and for the entire duration of the approved installment proposal, if applicable.

SECTION 12. Effects of Cancellation of the Notice of Approval — The cancellation of the Notice of Approval shall render the total assessed contribution delinquency, including the two percent (2%) monthly penalty, due and demandable and the SSS may proceed to collect the delinquency by:

1. Issuing a warrant under the WDLG Program of the SSS, if applicable.

2. Filing the necessary civil/criminal action against the responsible HR pursuant to Section 22 (a) in relation to Section 28 (e) and (f) of the Social Security Act of 2018.

3. If the criminal case had been withdrawn, refiling the case or any other relief/s and remedy/ies available to the SSS.

4. If the criminal case was provisionally dismissed, reviving the case before the proper courts or any other relief/s and remedy/ies available to the SSS, and

5. If with conviction/judgment, any relief/s and remedy/ies available to the SSS.

The HR shall no longer be qualified to avail of the condonation of penalties under this Program for the period covered by the installment payment subject of the cancellation of the Notice of Approval.

SECTION 13. Appeals. Within thirty (30) days from receipt of the Notice of Denial from the SSS of its application for condonation under this Program, an HR may file an appeal to the Employer Delinquency Settlement Review Committee (EDSRC) in accordance with its rules and procedures.

SECTION 14. Repealing/Separability Clause. – All other Circulars and other related issuances or parts thereof which are inconsistent with the provisions of this Circular are hereby repealed or amended accordingly.

SECTION 15. Effectivity. — This Circular shall take effect immediately after its complete publication in a newspaper of general circulation and the registration and submission of the required copies to the Office of the National Administrative Register

(Policy: Contributions Collection)

Prepared by Account Management Group