by Maritess B. Beñas
BANGUED, Abra-The Social Security System (SSS) has recently issued a circular regarding the revised installment payment scheme for employers on delinquent payment of contributions and loan amortizations.


Abra SSS branch manager Benedicta Garcia, in an interview, explained that Circular No. 2011-002 series of 2011 pertains to the guidelines in the installment payment scheme for employers covering all employers
including household employers who are delinquent or has not remitted all contributions and salary/calamity loan amortizations for at least six months including penalties due and payable to the SSS.

Garcia said an employer shall be given 30 days upon receipt of the final demand letter to submit a proposal to settle its liabilities. Otherwise, the SSS shall file a case of non-remittance of SSS contribution and loan amortization against the employer.

For employers with pending collection cases, the SSS may still accept the proposal and the employer may move for the provisional dismissal of the case without objection from the SSS. However, in the event that the employer again fails to remit its full delinquency or defaults up to two monthly payments and/or non-payment of current contribution/salary/calamity loan amortizations, and/or non-compliance of any of the terms and conditions of the installment payment proposal, SSS may re-file the case against the employer.

The installment proposal shall be received and approved by the branch head subject to the following conditions: 1) the contribution delinquency shall be subject to the three percent penalty per month for late payment, the salary/calamity loan delinquency to the one percent penalty per month for late payment until full payment in accordance with the approved payment plan.


Second, the total delinquency shall be in accordance with the schedule of monthly installment such as: P2,000, payable in 24 months; for the total amount of delinquency of over P2,000 but not over P5,000, the maximum number of monthly installment is 36 months; and for those with total delinquency of over P5,000, the maximum number of monthly installments shall be 48 months.

Upon submission of the installment proposal, the employers shall be required to pay at least five percent of the total delinquency as down payment, she explained.

The approval of the installment proposal does not excuse the employer from remitting his current contributions and salary/calamity loan amortizations every month as they fall due.

With the availment of this scheme, the employers may restore their privilege of availing the short-term loans from the SSS. *(JDP/MTBB-PIA CAR, Abra)