The Social Security System is aiming at a collection of at least P16.5 billion in short term loan payments next year, including P2.1 billion in overdue amortizations under an amnesty program for employers to start on January 3.
Emilio de Quiros Jr., SSS president and chief executive officer said the six-month amnesty program condones penalties on delinquent employers.
“Reducing the loan delinquency of members is a top priority of SSS,” he said. “We offer the program to employers since employed members make up an overwhelming majority of overdue loan accounts.”
The new amnesty, which will end on June 30, will benefit employees with overdue loans taken under current or previous employers or when they were self-employed or voluntary members. SSS offered employees, self-employed and voluntary members loan amnesty from May 2008 to December 2009 and collected a total of P919.8 million in principal and interest.
The upcoming amnesty for employers covers such loans as salary, calamity, emergency, educational, stock investment and privatization fund loans. Unpaid loans incur continuing interest and monthly penalty of one percent.
De Quiros said employers can choose to pay in full or by installments of up to 24 months, which carry a three percent annual interest.
The SSS will waive penalties on delinquent loan amortizations due on or before April 1, 2010, which is in accordance with guidelines approved by Malacañang last June 3, De Quiros said.
“Penalties of loan amortizations that fall due after April 1, 2010 are not covered by the loan condonation program,” he said.
Employers applying for amnesty must be up-to-date in paying contributions to have their loan penalties condoned, De Quiros said.