For this four-part series on the Social Security System’s (SSS) Pandemic Relief Restructuring Programs (PRRPs), I will continue to share various programs that we will be implementing to help our employers and members cope with financial difficulties brought about by the pandemic.
I am happy to inform you of our new program—the Enhanced Installment Payment Program or the PRRP 3. This Program will allow employers to settle their past due Social Security and Employees’ Compensation contributions in monthly installments. The SSS and the Employees’ Compensation Commission inked the circular providing the guidelines for this program.
PRRP 3 is open to all regular and household employers who are not capable of paying their delinquencies in full and/or have no other means to immediately settle their total obligations to the SSS, particularly those:
1. With unpaid Social Security and/or Employees’ Compensation contributions, for at least six applicable months either cumulative or consecutive, including penalties, as of date of application;
2. With unpaid penalties only on paid and/or late payment of contributions;
3. With pending applications for installment payment under Circular 2011-002 and 2018-008; and
4. With pending applications for Dacion en Pago.
To avail of the program, the Employer shall submit to the Branch Office (BO)/Large Accounts Department (LAD), within 15 calendar days from receipt of the notice of its delinquency, the following documents:
1. Application for Installment Payment;
2. Validated Contribution Payment Form/Payment Slip amounting to at least 5 percent down payment of the total delinquency; and
3. Supporting documents.
For the complete list of required documents, you may visit our official web site www.sss.gov.ph and social- media accounts.
The PRRP 3 provides a wider range of payment terms at seven brackets ranging from nine to 60 months compared to the SSS’ existing Installment Payment Scheme, which has six payment terms ranging from four to 24 months.
The schedule of monthly installment payments under the PRRP 3 is as follows:
Total amount of delinquency and their corresponding maximum number of monthly installments:
Up to 50,000—nine months
Over P50,000 to P100, 000.00—12 months
Over P100,000 to P500,000—18 months
Over P500,000 to P2,000, 000—24 months
Over P2,000,000 to P5,000, 000—36 months
Over P5,000,000 to P10,000, 000—48 months
Over P10,000,000—60 months
The monthly installment payments will be computed, as much as practicable, in equal amounts corresponding to the allowable installment term. Employers are allowed to pay in full the principal obligation first and the corresponding penalties to be paid in installment, apply the monthly installments to the principal ahead of the payment for the penalties, or pay in full the remaining delinquency at any time during the term of the Installment Payment Agreement (IPA), subject to re-assessment of the penalties, if applicable.
The Employer, within 10 calendar days from receipt of the Notice of Conditional Approval, shall submit to the BO/LAD five original copies of the signed and duly notarized IPA, together with the Installment Payment Schedule and post-dated checks (PDCs) as stated in the IPA. Otherwise, the Application will be considered as denied.
In addition, they may be allowed not to issue PDCs if the delinquency including penalty/ies, less the down payment, amount to P50,000 and below. In lieu of PDCs, the Employer shall execute a duly notarized Undertaking in favor of the SSS to pay its delinquencies in accordance with the above-mentioned Schedule of Monthly Installment Payments.
Employer may submit PDCs issued by a Third Party, provided that a duly notarized Joint Undertaking in favor of the SSS shall be executed by both the Employer and the said Third Party.
Further, the Employer and/or Third Party may be allowed to replace or cancel the issued PDCs in case of any change in its authorized signatory or closure of bank account or in case of any advance payment/s to be made, provided that a written notice to the SSS shall be sent at least two working days before due date.
This program will start this November, after its publication in a newspaper of general circulation and the submission of the required copies to the Office of the National Administrative Register and will run for one year.
I hope that our employers will take advantage of these programs that we are implementing. We truly understand that the pandemic has brought unprecedented challenges in keeping businesses afloat, making it hard to sustain daily operations. Now that the alert level has gone down and businesses are slowly opening up, we are one with them in helping them recover and get back on track.
Have a productive week everyone!
Aurora C. Ignacio is SSS president and chief executive officer.
We welcome your questions and insights on the topics that we discuss. E-mail mediaaffairs@sss.gov.ph for topics that you might want us to discuss.