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Tuesday, May 22, 2012

PAG-IBIG reminds unregistered employers of its penalty condonation program


by Alfonso T. Ruda  

DIPOLOG CITY, MAY 22(PIA)--- The Home Development Mutual Fund or PAG-IBIG has reminded unregistered and delinquent employers that they have only until June 30, 2012 to avail of its Penalty Condonation Program.

Ms. Cora Mamauag, Member Service Officer IV of the PAG-IBIG regional Office said the Penalty Condonation Program seeks to protect the Pag-ibig members as well as provide employers practicable means to settle their membership contribution in arrears and compel unregistered/delinquent employers to register their employees  

The program also seeks to compel unregistered/delinquent employers to register their employees to the Fund and provide them access to Pag-ibig Benefits they rightfully deserve.

Mamauag said that employers who wish to avail of the program must present the following documents – (1) Application form for Penalty Condonation; (2) Schedule (list) of Employees with Unremitted contributions; (3) Affidavit of Undertaking; (4) Certified True Copy of Applicable Proof of Business Existence; (a) Business permit/Mayor’s Permit, (b) Department of Trade and Industry Certificate of Registration(for sole proprietorship), (c) Securities and Exchange Commission Certificate of Partnership/Incorporation(for partnership/corporation/foreign-owned corporation/trade association), Cooperative Development Authority Certificate (for cooperatives), and (e) SSS Certificate of Membership; (5) Photocopies of the following: (a) Payroll for applicable months/period, (b) SSS R-3 (in the absence of payroll). However, Pag-ibig may require additional documents deemed necessary.

Upon approval of penalty condonation application, Mamauag pointed out that penalties on their membership contribution arrears is condoned. The membership contribution arrears of employers with approved penalty condonation include the employer counterpart contributions and dividends that should have been earned by these contributions.  

The employer shall be given an option to pay his membership contribution arrears in full or via installment through a plan of payment. Qualified employers who cannot pay their membership contribution arrears in full are allowed to submit a plan of payment which must be approved by the concerned Pag-ibig Fund Branch.

Approved Payment Plans may extend up to a maximum of 24 months for employers with at least 100 employees at the time of application and 60 months for employers with less than 100 employees and, with an interest rate of half-a-percent (0.5) per month on the remaining membership contribution arrears unpaid.

Based on the information gathered from Dipolog City’s Licensing Office, Mamauag said, it was discovered that only 20% of the total business establishments operating in the city are registered with the Fund.

After the June 30 deadline, Mamauag said, Pag-ibig will already resort to legal action against employers who failed or refused to avail of the Penalty Condonation Program.

The program covers unregistered and delinquent employers, as well as employers who have Pag-ibig coverable employees from whom they did not collect membership contributions.

Employers who have deducted but did not remit membership contributions and/or short-term loan amortizations from their employees are disqualified from the penalty condonation as well as employers who have previously availed of the program.

Pag-ibig Membership Coverage become Universal under Republic Act 9679 or the Home Development Mutual Fund Act of 2009 which took effect in January 2010.(ATR/PIA9-Zambo Norte)