SOCIAL SECURITY CONDONATION LAW OF 2009

Case Overview and Summary

Summary of Republic Act No. 9903 (Social Security Condonation Law of 2009)

Condonation of Penalty (Section 2):
- Employers delinquent or have not remitted contributions to the Social Security System (SSS) may, within 6 months from the law's effectivity:
• Remit said contributions; or
• Submit a proposal to pay in installments, subject to SSS rules. (Section 2)
• Upon full payment or approved installment payment, pending cases against the employer shall be withdrawn, but may be refiled if the employer defaults. (Section 2)

Installment Proposal (Section 3):
• SSS shall approve installment proposals, subject to rules. (Section 3)
• Employer must remit a down payment of at least 5% of total delinquency upon submission. (Section 3)
• Balance shall be paid in equal monthly installments within 48 months from approval. (Section 3)
• Installment payments shall bear 3% interest per annum. (Section 3)

Effectivity of Condonation (Section 4):
• Penalties under Section 22(a) of Republic Act No. 8282 shall be condoned until all delinquent contributions are remitted. (Section 4)
• If employer fails to remit in full or defaults on installments, penalties are reimposed from the time contributions first became due. (Section 4)
• Employers who settled arrears before this law's effectivity shall also have accrued penalties waived. (Section 4)

Implementing Rules and Regulations (Section 5):
• SSS shall issue necessary rules and regulations within 30 days after the law's effectivity. (Section 5)

Other Provisions:
• Separability clause (Section 6)
• Repealing clause for inconsistent laws (Section 7)
• Effectivity 15 days after publication (Section 8)