Pag-IBIG asks employers with unremitted contributions to avail of penalty condonation

The Home Development Mutual Fund or Pag-IBIG Fund on Thursday called on employers with unremitted contributions for their employees to avail of the agency’s penalty condonation program.

In a statement, Pag-IBIG said that under its penalty condonation program, employers can settle their obligations—both prior to and during the pandemic—"free from any monthly penalty charge on delayed remittances."

"We at Pag-IBIG Fund recognize the significant role that the business community plays in allowing Filipino workers to gain Pag-IBIG membership and in helping our nation continue to recover from the pandemic. That is why we are providing the means for employers to settle the unremitted Pag-IBIG contributions of their employees free from penalty charges," said Secretary Jose Rizalino Acuzar of the Department of Human Settlements and Urban Development and chairperson of the 11-member Pag-IBIG Fund Board of Trustees.

Under the agency's charter, employers are responsible for the registration and remittance of their employees' mandatory monthly Pag-IBIG contributions, which consist of the employee’s contributions and the employer's counterpart share. 

Pag-IBIG CEO Acmad Rizaldy Moti said the penalty condonation program is "purposely broad in scope to aid in boosting economic activity."

He also stated that, in addition to having the penalty charges on their delayed remittances completely waived, employers who are unable to settle their obligations in full may choose a payment plan with a low monthly interest charge of 0.5%. 

The Pag-IBIG chief said that if the unremitted contributions are those during the pandemic or from March 2020 onwards, the interest charge on payment plans will be waived.

"With the program's favorable terms, employers are provided the means to update the monthly contributions of their employees, while maintaining a healthy cash flow to sustain their operations," Moti said. — VBL, GMA News