Beruflich Dokumente
Kultur Dokumente
2011-002
Series of 2011
TO:
ALL EMPLOYERS
Collection Lists for Contributions (R-3) and/or Loans (ML-2). The monthly installment shall
be divided equally over the term of installment.
Articles of Incorporation or Articles of Partnership
Secretarys Certificate authorizing the President or Secretary or Treasurer to sign the
promissory note (PN) in behalf of the company:
Duly notarized Promissory Note
Duly notarized undertaking by the company's managing head(s), director(s) or partner(s),
binding himself/themselves to the SSS, in their personal capacities to fulfill the obligations
of the company.
The personal undertaking may be waived, subject to the approval by the SSS President and
CEO.
In case the company has been closed/terminated, any of its former managing head, director or
partner shall sign the application and the promissory note.
For Single Proprietorship
Collection Lists for Contributions (R-3) and/or Loans (ML-2)
Duly notarized Promissory Note
SECTION 4. Employers with pending cases. - In the event there is an existing collection
case against the employer, the SSS may nevertheless accept the proposal and the employer
may move for the provisional dismissal of the case without objection from the SSS. However,
this is without prejudice to the re-filing of the same in the event the employer fails to remit in
full its delinquency or defaults in the payment of up to two (2) monthly installments, and/or
non-payment of current contribution/salary/calamity loan amortization, and/or non-compliance
with any of the other terms and conditions of the installment payment proposal
SECTION 5. Installment proposal. - The branch which received the Application shall screen
the completeness of the documents submitted. The Branch Head shall give due course to
approve the proposal subject to the following:
a) The contribution delinquency shall be subject to the three percent (3%) penalty per
month for late payment in accordance with Section 22(a) of the SS Law, as amended, and
the salary/calamity loan delinquency to the one percent (1%) penalty per month for late
payment until full payment in accordance with the approved payment plan.
b) The total delinquency shall be payable in accordance with the schedule of monthly
installment, as follows:
c) Upon submission of the installment proposal, the employer shall be required to pay at
least five percent (5%) of the total delinquency as down payment.
d) The employer shall not be allowed to re-apply for another installment proposal. An
exemption may be granted on a case to case basis, subject to the approval by the SSS
President and CEO.
e) The employer shall issue, within five (5) working days from receipt of Notice of Approval,
all the post-dated checks (PDCs) corresponding to the months covered by the installment.
PDCs issued by the employer shall be in the custody of the Tellering Section of the
concerned branch, except in branches with no tellering facility, in which case, the PDCs
shall be in the custody of the Tellering Section of the cluster branch.
f) An employer may be allowed to replace or cancel the post dated checks prior to due dates
in case of change in its authorized signatory or closure of bank account, subject to the
recommendation and approval of the officials who recommended and approved the
installment proposal.
g) The employer with an approved installment plan shall also remit current contributions and
salary/calamity loan amortizations every month as they fall due.
SECTION 6. Grounds for termination of approved proposal. - In the event of default in the
payment of up to two (2) monthly installments, and/or non-payment of current
contribution/salary/calamity loan amortization, and/or non-compliance with any of the other
terms and conditions of the installment payment proposal, the employer's total obligations shall
become due and demandable and the SSS shall collect the delinquency pursuant to Section 22
(b) in relation to Section 22 (c) of the SS Law by issuing a warrant to the sheriff of any city or
province commanding him to levy upon and sell any real or personal property of the employer,
or filing the necessary civil/criminal action pursuant to Section 22 (a) in relation to Section 28
(e) of the SS Law, as amended, against the employers or persons responsible for violation of the
SS Law.
SECTION 7. Restoration of loan privileges. - Upon approval of the installment proposal of
the employer, the short-term loan privileges of its employees shall be restored. Provided, that
the said employees comply with other requirements of their loan applications, provided further,
that said privileges shall again be suspended in the event of violation of any of the terms and
conditions set hereof.
SECTION 8. Right to benefits of employees. - Should the settlement of contributions
through installment result in additional benefits for contingencies that have occurred prior to the
date of settlement or shall occur within the installment period, the employer shall pay the SSS
damages in accordance with the provisions of Section 24(b) of R.A. 1161, as amended.
SECTION 9. Application of payments. The monthly installment shall be applied as follows:
a) For loan repayment, the monthly installment shall be applied first to the penalty, then to
the interest, and finally to the principal until the delinquency is fully paid.
b) For contribution payments, the monthly installment shall be applied to the amount of the
contributions and penalty as computed and specified in the payment form.
c) Only the actual payments made by the employer shall be posted to the account of the
employees.
SECTION 10. Recommending and Approving Officials. - The Branch Head shall approve the
installment proposal upon the recommendation of the Head of the Inspectorate Section. In the
absence of the Branch Head, the next higher official shall assume the responsibility.
SECTION 11. Repealing clause. - All other Circulars, rules and regulations, and other
issuances or parts thereof, which are inconsistent with the provisions of this Circular are hereby
repealed or modified accordingly.
SECTION 12. Effectivity. - This Circular shall take effect immediately.
Approved by:
THE SOCIAL SECURITY COMMISSION
(sgd)
JUAN B. SANTOS
Chairman
16 February 2011
(sgd)
EMILIO S. DE QUIROS
President and CEO