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Social Security Law
Approved January 7, 2010

Republic Act No. 9903

Social Security Condonation Law of 2009

Social Security Condonation Law of 2009

In plain language

Republic Act No. 9903 grants the Social Security System a one‑time authority to condone penalties on unremitted or delinquent employer contributions, providing options for immediate payment or installment proposals, and establishing procedures for implementation.

  • Employers may remit delinquent contributions or submit an installment proposal within six months.
  • Installment proposals require a down payment of at least 5% and may be paid over up to 48 months with a 3% annual interest.
  • Penalties under RA 8282 are waived when contributions are fully remitted; if not, penalties are reimposed from the due date.
  • SSS shall issue implementing rules and regulations within 30 days of effectivity.
  • The act takes effect 15 days after publication in the Official Gazette or two newspapers.
Social Security
Condonation
Penalty
Employers
Contributions
SSS
Law

Fourteenth Congress Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand nine.

REPUBLIC ACT No. 9903

AN ACT GRANTING THE SOCIAL SECURITY SYSTEM A ONE - TIME AUTHORITY TO CONDONE PENALTIES ON UNREMITTED OR DELINQUENT CONTRIBUTIONS BY EMPLOYERS

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Short Title

- This Act shall be known as the "Social Security Condonation Law of 2009".

Section 2. Condonation of Penalty

- Any employer who is delinquent or has not remitted all contributions due and payable to the Social Security System (SSS), including those with pending cases either before the Social Security Commission, courts or Office of the Prosecutor involving collection of contributions and/or penalties, may within six (6) months from the effectivity of this Act:

(a)remit said contributions; or (b) submit a proposal to pay the same in installments, subject to the implementing rules and regulations which the Social Security Commission may prescribe: Provided, That the delinquent employer submits the corresponding collection lists together with the remittance or proposal to pay installments: Provided, further, That upon approval and payment in full or in installments of contributions due and payable to the SSS, all such pending cases filed against the employer shall be withdrawn without prejudice to the refiling of the case in the event the employer fails to remit in full the required delinquent contributions or defaults in the payment of any installment under the approved proposal.

Section 3. Installment Proposal

- In the event that a delinquent employer chooses to submit an installment proposal, the SSS shall give due course to approve and grant the same, subject to the implementing rules and regulations as the Social Security Commission shall prescribe: Provided, That the employer shall remit, upon submission of the installment proposal, a down payment of not less than five percent (5%) of its total contribution delinquency: Provided, further, That the employer shall remit the balance thereof in equal monthly installments within a period not exceeding forty - eight (48) months from the date of approval of the proposal: Provided, finally, That the installment payments shall bear an interest of three percent (3%) per annum.

Section 4. Effectivity of Condonation

- The penalty provided under Section 22(a) of Republic Act No. 8282 shall be condoned by virtue of this Act when and until all the delinquent contributions are remitted by the employer to the SSS: Provided, That, in case the employer fails to remit in full the required delinquent contributions, or defaults in the payment of any installment under the approved proposal, within the availment period provided in this Act, the penalties are deemed reimposed from the time the contributions first become due, to accrue until the delinquent account is paid in full: Provided, further, That for reason of equity, employers who settled arrears in contributions before the effectivity of this Act shall likewise have their accrued penalties waived.

Section 5. Implementing Rules and Regulations

- Within thirty (30) days after the effectivity of this Act, the Social Security Commission shall issue the necessary rules and regulations for the effective implementation of this Act.

Section 6. Separability Clause

- In the event that any provision of this Act is declared unconstitutional, the validity of the other provisions shall not be affected by such declaration.

Section 7. Repealing Clause

- All Jaws, decrees, orders, rules and regulations and other issuances or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Section 8. Effectivity

- This Act shall take effect fifteen (15) days following its publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,

| JUAN PONCE ENRILE President of the Senate | PROSPERO C. NOGRALES Speaker of the House of Representatives |

This Act which is a consolidation of House Bill No. 5922 and Senate Bill No. 2454 was finally passed by the House of Representatives and the Senate on October 14, 2009 and November 9, 2009.

EMMA LIRIO-REYES

Secretary of the Senate

MARILYN B. BARUA-YAP

Secretary General House of Representatives

Approved: JAN. 07, 2010

GLORIA MACAPAGAL-ARROYO

President of the Philippines

For information and research only, and not legal advice. This text may not reflect later amendments. For certified copies, refer to the Official Gazette or the issuing agency.