Source: SSS Website
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 provisions 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. 415-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 indicat s otherwise. the term “Program” refers to the Contribution Penalty Condonation, Delinquency Management and Restructuring Program (CPCoDe MRP). as provided here n.
SECTION 1. Coverage — This Program covers all SS contribution delinquency from the actual date of operations of an employer (ER) up to the month of eceipt of the application for this Program.
All single proprietorships. corporations, partnerships, cooperatives. and associations who are delinquent in the payment of SS contributions an /or penalties whose financial positions demonstrate a clear inability to pay the assessed delinquency arising from economic crisis, serious business losses or financial reverse, or resulting from natural calamity, or man-made disaster without fault on their part may apply under this Program.
SECTION 2. Submission of Application — The ER-applicant shall submit to the SSS Branch Office (B0)/Large Accounts Department (LAD) having jurisdiction over the account an accomplished Application Form (Annex A) together with the applicable documentary requirements enumerated in Section 3 and the mode/proof of payment requirements stated in Section 10 of this Circular not earlier than the effectivity of this Circular.
SECTION 3. Documentary Requirements — To support its application, the ER-applicant shall submit the documents enumerated below, the checklist of which is also attached herein as Annex B.
A. CORPORATION, PARTNERSHIP, COOPERATIVE, AND ASSOCIATION
c. Original Partnership Dissolution Agreement or Notice of Dissolution
for Partnerships; or
B. SINGLE PROPRIETORSHIP
SECTION 4. Requirements for All ERs – All ERs applying under this Program shall submit the following, as applicable:
All applications with complete documentary requirements and the proposed mode of payment. shall be submitted for evaluation to the concerned Accounts Management Section (AMS) of the BO/LAD having jurisdiction over the ER-applicant.
SECTION 5. ERs with Pending Cases or with Final Judgment — Upon approval of the application under this Program, all pending cases against the ER-applicant 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 ERs with judgments that have acquired finality.
SECTION 6. ERs with Pending or Approved Proposals under Existing Installment Payment Scheme Programs — 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 paymentschemes shall be considered as part of the total delinquency for the purpose of this Program. subject to re-computation.
SECTION 7. ERs with Pending Application Under the Program for Acceptance of Properties Offered Through Dacion en Pago — The ER who applies under the Program shall be deemed to have withdrawn its pending application for Dacion en Page upon approval of the application by the SSS. This pertains to Dacion en Pago proposals for payment of SS contributions only.
SECTION 8. ERs with Issued Warrants of Distraint, Levy and/or Garnishment (WDLG) — The ER subjected to WDLG processes and procedures for delinquencies incurred from date of operation and/or 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 ER-applicant shall be returned to the BO or LAD of origin so that the ER-applicant can avail of the CPCoDe MRP.
Contribution Penalty Condonation, Delinquency Management & Restructuring Program (CPCoDe MR
Page 3 of 7
SECTION 9. Financial Evaluation Criteria — The financial status of the ER-applicant for the condonation of penalties on SS contributions shall be assessed using the submitted Audited FS or ITRs for the period when the delinquencies occurred. The evaluation of the submitted FS and ITRs must show that the ER-applicant suffered a Net Loss or Negative Net Profit during the years of its operations.
Once the ER is found to have passed this criterion. the penalty imposed upon the delinquent SS contributions during the period where the ER has shown proof that the business suffered a net loss shall be condoned and instead pay the principal amount plus a legal interest of six percent (6%) per annum.
However, notwithstanding the preceding paragraph. in cognizance of the adverse impact of the COVID-19 pandemic severely affecting the Philippine economy, presentation of financial documents as proof of a net 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 10. Modes of Payment in Settling Delinquencies — An ER-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:
TOTAL AMOUNT OF DELINQUENCY | MAXIMUM NUMBER OF MONTHLY INSTALLMENT |
Up to P100,000 | Twelve (12) months |
Over P100,000 — P500,000 | Eighteen (18) months |
Over P500,000 — P2,000,000 | Twenty-four (24) months |
Over P2,000.000 — P5,000,000 | Thirty (30) months |
Over P5,000,000 – P10,000,000 | Thirty-six (36) months |
Over P10,000,000 — P20,000,000 | Forty-two (42) months |
Over 20,000,000 | Forty-eight (48) months |
The ER-applicant shall issue, within fifteen (15) calendar days from receipt of Notice of Approval, all the Post-Dated Checks (PDCs), Payment Forms and the Contribution Collection Lists (CCL) corresponding to the months covered by the installment to be submitted by ER-applicant to the assigned Account Officer (AO) of SSS BO/LAD. For this purpose, single proprietorship ERs 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 ER and the said Third Party.
Further. ER-applicants 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 ER 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 11. Recommending Officials and Approving Authorities — The SSC has designated SSS Officials and created Financial Review Committee’s (FRC) for this purpose. These Officials and the Committees shall be responsible for the recommendation. approval or denial of applications under this Program, depending on the total amount of delinquency.
SECTION 12. Cancellation — The Notice of Approval issued by the SSS shall be effectively cancelled under any of the following circumstances.
SECTION 13. Effects of Cancellation of the Notice of Approval — The cancellation of the Notice of Approval shall render immediately due and demandable, the total assessed contribution delinquency, including the two percent (2%) monthly penalty computed from the time the contribution first became due to accrue until the principal amount is paid in full. The SSS may then proceed to collect the delinquency by any of the following
The ER-applicant shall no longer be qualified to avail of the condonation of penalties under this Program for the period covered by the cancelled Notice pf Approval.
SECTION 14. Appeals. – Within thirty (30) days from receipt of the Notice of Denial from the SSS of its application for condonation under this Program. an ER may file a Petition before the SSC in accordance with its rules and procedures.
SECTION 15. 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 16. Effectivity. — This Circular shall take effect immediately after its complete publication in a newspaper of general circulation and its registration and submission of the required copies to the Office of the National Administrative Register.
Date: 26 AUG 2022
Policy: Contributions Collection
Prepared by: Account Management Group
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Annexes
Annex C2 – Checklist of Documentary Requirements
Annex C4 – Affidavit of Inability to Pay
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