SSS Condonation Law RA 9903 Signed

President Gloria Macapagal Arroyo signed into law R.A. 9903 or the Social Security Condination Law. This action is aimed at assisting those engaged in small and medium business enterprises by condoning the penalties. The focus will then be on the payment of balance of the employer’s contribution to the employee’s SSS.

In addition, the grant of amnesty for the penalties would redound to the benefit of the hundreds of thousands of workers whose employers have not been paying their contributions to SSS, using the same for other corporate financial requirements.

Under the SSS Condonation Law delinquent employers may remit their contributions or submit proposal to do the same on installment basis. Under the premium payment schedule, the employer is required to remit a total of 5% of contribution delinquency where the balance shall be paid in equal monthly installments within 48 months from the time the SSS approves the submitted proposal. The installment payment however shall bear a 3% annual interest.

The condonation of penalties shall likewise apply to those who were able to settle their arrears prior to the implementation of the SSS Condonation Law.

Finally, the said law provides that pending case against erring employers will be withdrawn, but this is without prejudice to the refilling of the same in case the employer fails to remit in whole.

Photo Credit: Rey Baniquet/OPS-NIB Photo



Author: Atty. James Biron
Atty. James S. Biron is a corporate lawyer specializing in foreign investments, trade, mergers and acquisitions, planning and financing of projects and capital raising. Clients served include real estate, construction, energy, information technology, agriculture, education, medical and casino gaming companies.

189 Comments

  • May

    Good day! What if my employer erroneously remit my SSS loan payments to my 2011 loan instead of 2012 loan. I just found out that I have P13k+ overpayments to my 2011 loan and have balance of P16k+ to my 2012 loan. My 2012 loan has a penalty already of P3k+. Can I demand my company to shoulder the penalty since its their negligence that my loan payments were not recorded properly. I cannot avail my salary loan now because base on SSS records, I have P16k++ balance with my 2012 loan and overpayment of P13k+ with my 2011 loan.

  • leonila santos ronas

    I am 62 years old and I wanted to reti already, but my problem I loan and I didn’t have 40 credits yet., do you think I can apply and ask for the estimate of my pensions if I have 40 credits and wait for another 3 years more. Thank you.

  • Marites S.

    Hello Atty. JAmes Biron,

    Good Day!

    My employers are facing a case from SSS, and they have no idea why they have case.
    They visit SSS office and they found out that the FINANCE MANAGER wasn’t settle our SSS and other agencies (benefits) for 3 years. Our employer gave a monthly payment to our finance manager. Since the case is open, our employer need to settle the 3 years contribution before the case close. My question is, my employer can request a CONDONATION PENALTY? Since they gave the payment monthly to the Finance Manager, if they will pay now, it means they pay twice, and they can not afford to pay it especially its a big amount plus the penalty. Please help me how to make a letter to send a request to the President Rodrigo Duterte since our employer is a VICTIM. Thank you very much.

  • Cheska

    Good eve atty.!

    Sir, i would like to ask if it is legal to make an agreement between employer and employee that SSS contributions will be less than what is due from their salary credit? ex. salary credit of employee is 6,000 pesos but contribution will be based from 4,000 salary credit, and employee has agreed, signing a paper.

    If the agreement will be notarized, can the SSS still demand from employer payment of underpaid contributions?

  • Dan

    Good day sir. recently, may nareceive po kamjng letter sa SSS regarding sa delinquent payer po ng contribution sa SSS nung year 2004 and 2005. ngauon lang lo nila binigay yung letter May 2018 na po. Kapag hindi raw po ma provide yung proof within 15 days na nag babayad ng SSS, babayaran namin yung penalties approximately nasa 500k +.

    question:
    1) valid po ba yung pagsisingil nila since ang tagal na po. hindi na po namin makita yung document na mag prove na nag bayad.
    2) anong remedy po ang pwede namin gawin?
    3) can we considered na delinquent kasi po yung 2004 and 2005 lang yung sabi nila na walang contributio . the rest of the the years up to 2018 meron naman na po.
    4) may prescription po ba ang pagsisingil ng governmet sa penalties. kasi po matagal na. mahirap na iretrieve yung documents especially lumipat na po kami ng pwesto.

    2nd case:
    yung kakabukas po namin pharmcy. kami po ang nag bantay, family namin for alkost 8 months. after ng 8 months kumuha na kami ng empleyado, that was 2009 po. pero ang ginawa ng SSS. since opening ng pharmacy sinisingil kami na walang contribution ng SSS for 8 months.

    question:
    1) bakit po kami magbabayad ng penalties eh wala naman po empleyado sa amin kasi kami mag family ang nag bantay muna ng pharmacy. since tinignan namin kung magiging ok yung business.

    thank you.

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