Understanding the SSS Contribution Penalty Condonation Program

Employers who fail to remit their employees’ Social Security System contribution are given another chance to settle the due amount through Contribution Penalty Condonation Program (CPCP).

CPCP is offered to employers who are not yet registered with the SSS as employees. This includes household employers. Those who have pending or approved proposal under SSS Installment Payment Scheme Program can also avail the program.

Employers with pending cases involving the collection of contributions, with unpaid or partially-paid penalties for none or late remittance and whom a Warrant of Distraint/Levy/Garnishment (WDLG) is issued may also apply for the CPCP.

CPCP covers the penalties on delinquent or unremitted SSS contributions up to January 2019. Penalties on failed contributions beyond January 2019 will be charged based in the existing laws.

Those who settled partially their arrears before the effectivity of RA No. 11199 (Social Security Act of 2018) can pay the balance on installment or in full under the CPCP.

The CPCP will run only for six months, from March 5 to September 1, 2019. To avail the program, employers must make sure that they are registered with the SSS since an employer ID number is needed.

Under the CPCP, employers can remit the full amount of the delinquent contributions or submit a proposal to pay the delinquency in installments. Payment should be made within the condonation period.

If the employer failed to pay under CPCP, the penalties from the time the contributions became due will be re-imposed. SSS can refile the collection cases against the employer.

If the employer successfully settled the delinquency under CPCP, the employees will regain the loan privileges, all SSS cases involving collections will be withdrawn and the penalties will be considered condone.