edited QA-pencon-ERs ver 1 4 (with RDD's comments) · PDF fileAffidavit of Undertaking (HQP-PFF-024)* ... (Revised 12/2011) ... The application form is also available at HDMF website

PENALTY CONDONATION PROGRAM FOR UNREGISTERED/DELINQUENT EMPLOYERS (HDMF CIRCULAR 299 )

(version 1.4)

Why is there a Penalty Condonation Program for Unregistered and Delinquent Employers?

Pag-‐IBIG Membership Coverage is now Universal under Republic Act 9679 or the Home Development Mutual Fund Act of 2009. Every employed Filipino should be a Pag-‐IBIG Member and enjoy its benefits. It was, however, found that a large number of employers continue to remain unregistered with the Fund since the new Law took effect in January 2010. Since they have not registered and collected contributions from their employees, these employers have incurred penalties. There are also those employers, who despite the mandatory nature of membership to the Fund, have continuously failed to comply with the Law. The penalty condonation program seeks to protect the interest of Pag-‐IBIG Members as well as provide employers practicable means to settle their membership contribution arrears. The program also seeks to compel unregistered/delinquent employers to register their employees to the Fund and provide them access to the Pag-‐IBIG Benefits they rightfully deserve.

Ang membership sa Pag-‐IBIG Fund ay mandatory na para sa lahat. Ito ay bunga ng bagong batas na naging epektibo nuong January 2010. Ngunit marami pa ding kumpanya at maliliit na negosyo ang ‘di pa nakakapagrehistro at nakakapaghulog ng kontribusyon ng kanilang mga empleyado. Dahil dito, nagkaroon na ng malalaking penalties ang mga di naihulog na kontribusyon at nagiging hadlang ito upang sila ay magrehistro sa Pondo. Sa pamamagitan ng Penalty Condonation Program na ito, wala nang dahilan ang mga nasabing employers upang ‘di irehistro ang kanilang mga empleyado sa Pondo.

Answers to the 10 Frequently Asked Questions

Answers to the 10 Frequently Asked Questions Penalty Condonation Program for Unregistered/Delinquent Employers

Dahil sa Pag-IBIG, ang pinaghirapan, may katuparan.

Who are Qualified Employers for this program? The program covers unregistered and delinquent employers, as well as employers who have Pag-‐IBIG coverable employees from whom they did not collect membership contributions. Employers who have deducted but did not remit membership contributions and/or short term loan amortizations from their employees are disqualified from this penalty condonation. Employers who have previously availed of any penalty condonation offered by the Pag-‐IBIG Fund are also disqualified.

Ito ay bukas para sa mga di pa rehistradong employers pati sa mga delinkwenteng employers na di nakapagkaltas at nakapagbayad ng mga kontribusyon ng kanilang empleyado. Bukas din ito para sa employers na di nakaltasan ng hulog ang kanilang mga empleyadong sakop na rin ng Pondo. Ngunit, kung ang isang employer ay nagdeduct ng kontribusyon at/o loan amortization mula sa kanyang mga empleyado at ‘di ito ibinayad sa Pondo, hindi sila maaaring makinabang sa Penalty Condonation na ito. Hindi rin ito maaaring magamit ng mga employer na nakapag-‐avail na ng anumang nakaraang Penalty Condonation mula sa Pag-‐IBIG.

When will the program be implemented?

The program is ongoing and will run until June 30, 2012 only. So avail of this Penalty Condonation program now! Tumatanggap na ang lahat ng aming 37 branches nationwide ng aplikasyon para sa Penalty Condonation. Hanggang Hunyo 30 lamang ang programang ito kaya’t mag-‐apply na!



What are the Requirements in Applying for Penalty Condonation?

To apply for Penalty Condonation, employers are required to submit the following: 1. Application Form for Penalty Condonation; 2. Schedule (List) of Employees with Unremitted Contributions; 3. Affidavit of Undertaking; 4. Certified True Copy of applicable proof of Business Existence:

a. Business Permit/Mayor’s Permit b. Department of Trade and Industry (DTI) Certificate of

Registration, for sole-‐proprietorship

c. Securities & Exchange Commission (SEC) Certificate of Partnership/Incorporation, for partnership/corporation/foreign-‐owned corporation/trade association

d. Cooperative Development Authority (CDA) Certificate of Cooperative, for cooperatives

e. SSS Certificate of Membership 5. Photocopies of the following:

a. Payroll for applicable months/period b. SSS R-‐3 (in the absence of payroll)

Pag-‐IBIG may require additional documentation if deemed necessary. The application form and affidavit of undertaking are now available through our website and at all our 37 branches nationwide.



What are the Benefits of having an Approved Application for Penalty Condonation?

Employers with approved Penalty Condonation applications shall have the penalties on their membership contribution arrears condoned. The said membership contribution arrears of employers with approved penalty condonation applications shall include the following: 1. Employer Counterpart Contributions; 2. Dividends that should have been earned by these contributions

The Employee Counterpart Contributions of the said membership contribution arrears shall no longer be collected. Interest shall be charged in the event an employer pays the membership contribution arrears via installment thru a plan of payment.

How will an Employer with an Approved Penalty Condonation Application Settle his Arrears?

Upon approval of the employer’s penalty condonation application, the employer shall be given an option to pay his membership contribution arrears in full or via installment through a plan of payment. Qualified Employers who cannot pay their membership contribution arrears (employer counterpart contributions and deprived dividends that should have been earned by these contributions) in full are allowed to submit a Plan of Payment. The proposed payment plan shall be approved by the concerned Pag-‐IBIG Fund Branch.



Approved Payment Plans may extend to up to a maximum of 24 months for employers with at least 100 employees at the time of application. Approved Payment Plans may extend up to 60 months for employers with less than 100 employees. Payment Plans will be charged an interest of half-‐a-‐percent (0.5%) per month on the remaining membership contributions arrears unpaid. Employers shall be required to submit the corresponding PDCs to cover their approved plan of payment. They are also required to submit a list of all the employees for whom the remittance is being made for corresponding periods covered.

What will happen if an Employer’s Application for Penalty Condonation is Disapproved?

Employers whose applications are disapproved will be required to pay all membership contribution arrears including applicable penalties, interests, and deprived dividends. Otherwise, corresponding legal action will be carried out against them. Para sa mga employers na di nag-‐qualify for PenCon, kailangan nilang bayaran ng buo ang mga kontribusyon ng kanilang mga empleyado, kasama ang karampatang dividends at penalties. Kung hindi, agad silang sasampahan ng naayong kaso ng Pag-‐IBIG Fund.



What will happen if an Employer Fails to Comply with the Plan of Payment?

Employers who fail to comply with their payment plans shall have all their penalties reimposed and shall have to pay all unpaid employer counterpart arrears, dividends and penalties. Otherwise, appropriate legal action shall immediately commence.

Further, any violation of the terms of the Penalty Condonation Program shall result in reimposition of penalties against the employer. They shall have to pay all unpaid employer counterpart arrears, dividends and penalties. Otherwise, appropriate legal action shall immediately commence.

If an employer does not Qualify for Penalty Condonation, what must he/she do?

Employers who do not qualify for Penalty Condonation must settle their arrears, dividends and penalties with the Fund. Otherwise, appropriate legal action shall be taken against them

Need more information on this Penalty Condonation Program?

For all other concerns on this Penalty Condonation Program, please contact any of our Pag-‐IBIG Fund Branches nationwide. You may also email us at [email protected] or contact our Call Center at 724-‐4244 (Metro Manila).

APPLICATION FOR PENALTY CONDONATION UNDER R.A 9679

(For Unregistered/Delinquent Employers)

FOR HDMF USE ONLY

Pag-IBIG EMPLOYER’S ID NUMBER

LIST OF REQUIRED DOCUMENTS

1. Application for Penalty Condonation (HQP-PFF-004)*

2. Schedule of Employees with Unremitted Contribution (softcopy) (HQP-PFF-009)*

3. If unregistered, Registration Confirmation reflecting Registration Tracking Number (printed receipt for every successful registrant using the on-line registration system) (For newly-registered employer)*

4. If filing thru Authorized Representative: a. Special Power of Attorney (SPA) (For Sole Proprietorship and Partnership) b. Notarized Board Resolution or Secretary’s Certificate designating the

Representative to transact/negotiate with HDMF and to execute/sign documents submitted. (For Corporation)

*Mandatory requirements

5. Certified true copy of applicable Proof of Business Existence: Business Permit/Mayor’s Permit Department of Trade and Industry (DTI) Certificate of Registration

(for Sole Proprietorship)* Securities and Exchange Commission (SEC) Certificate of

Partnership/Incorporation (Partnership/Corporation/Foreign-Owned Corporation/Trade Association)*

Cooperative Development Authority (CDA) Certificate (for Cooperative)*

SSS Certificate of Membership

6. Photocopy of the following:

- Payroll for applicable period* - SSS R-3 (in the absence of payroll)

7. Affidavit of Undertaking (HQP-PFF-024)* 8. Others_________________________

(Pag-IBIG Fund reserves the right to request additional documents if deemed necessary)

THIS FORM MAY BE REPRODUCED. NOT FOR SALE. (Revised 12/2011)

EMPLOYER/BUSINESS NAME

DATE FILED

DATE OF REGISTRATION WITH CONCERNED AGENCIES SEC/DTI/CDA

START OF BUSINESS OPERATION

m m d d y y y y MODE OF PAYMENT

Cash Plan of Payment TELEPHONE NUMBER TIN

REASON FOR FAILURE TO REGISTER COVERED EMPLOYEES AND/OR REMIT THE REQUIRED CONTRIBUTIONS

WITH EXISTING PLAN OF PAYMENT WITH THE FUND

Yes No

CERTIFICATION I hereby certify that the information given and any or all statements made herein are true and correct to the best of my knowledge and belief. I hereby further certify under pain of perjury that my signature appearing herein is genuine and authentic. In case of falsification, misrepresentation or any similar acts committed by me, HDMF shall automatically disapprove/cancel the approval of my application. I shall abide with all the applicable rules and regulations governing this penalty condonation program that HDMF may promulgate from time to time

In case of non-compliance to the guidelines governing this program, I understand that we shall continue to incur penalties on unremitted membership contributions and shall be held criminally liable and prosecuted in accordance with the penal provisions of R.A 9679.

_____________________________________________ HEAD OF OFFICE/AUTHORIZED REPRESENTATIVE

(Signature over Printed Name)

___________________________ ___________________ Designation Date

FOR HDMF USE ONLY

RECEIVED BY:

DATE: REMARKS

COMPUTATION OF TOTAL OBLIGATION

PERIOD COVERED PARTICULARS

AMOUNT

VERIFIED BY: DATE

FROM TO

UNREMITTED MC

DEPRIVED DIVIDENDS REMARKS

PENALTIES

TOTAL

REVIEWED BY: DATE For Plan of Payment, maximum allowable months __________

NOTED BY: DATE APPROVED/DISAPPROVED BY: DATE

HQP-PFF-004

(BACK) GUIDELINES AND INSTRUCTIONS

A. WHO MAY FILE

Any qualified delinquent/unregistered employer. NOTE: The following are not qualified to avail of the program:

a) Employers who collected membership contributions (MC) and/or STL amortization payments from their respective employees but failed to remit the same to the Fund.

b) Employers who have previously availed of any Penalty Condonation Program offered by the Fund.

B. HOW TO FILE The applicant shall: 1. Update records with the Fund via on-line registration or register on-line, if not yet registered with the

Fund. 2. Secure Application for Penalty Condonation (APC) (HQP-PFF-004) from any HDMF NCR/Regional

Branch. The application form is also available at HDMF website at www.pagibigfund.gov.ph 3. Accomplish two (2) copies of application form. 4. Submit accomplished application form to the concerned HDMF NCR/Regional Branch. NOTES: Eligible employers may avail of this program beginning January 01, 2012 until June 30, 2012. Applications must be filed not later than June 30, 2012. Only applications with complete documents shall be accepted and processed. Applications shall be approved/disapproved not later than two (2) months from submission of

complete documents C. PENALTY CONDONATION

1. All employers (unregistered and existing) shall be required to register on-line with the Fund prior to submission of Application for Penalty Condonation.

2. Upon application for penalty condonation, employers are required to remit contributions (EE + ER) of current employees for the current remittance period and every month thereafter. Otherwise, the corresponding penalty charges shall apply.

3. Once the application is approved, all penalties incurred up to the date of receipt of complete documents, shall be condoned. 3.1 Employers shall be required to pay all employer counterpart arrearages as of approval of

application, as well as dividends that said arrearages could have earned. Remittance shall be made in full within thirty (30) days from approval of application. Otherwise, said approval shall be forfeited.

3.2 An employer who signified intent to pay in full but later on opted for a plan of payment must submit the plan of payment not later than the 25th day from the date of approval of application, otherwise, said approval shall be forfeited.

4. Employers with existing plan of payment may avail of this program for the remaining term of the said plan of payment. The penalties paid before approval of application under this program shall not be refunded or reversed.

5. Employers whose applications are disapproved shall be required to pay all membership contributions (MC) arrearages including applicable penalties, interests, and dividends, if any. Otherwise, corresponding legal actions shall be carried out.

6. Should there be any violation by the employer on the approved plan of payment, all penalties shall be re-imposed. Further, appropriate civil and/or criminal actions shall be filed against the delinquent employer. In addition, should the employer failed to collect and/or remit the employee and employer contributions due for the current period, the same shall be charged a penalty of 1/10 of 1% of the amount due per day of delay.

D. OTHER PROVISIONS 1. Employers who failed to avail of this program shall continue to incur penalties on unremitted

contributions and shall be held criminally liable and prosecuted in accordance with the penal provisions of RA 9679.

2. Affected members whose employers shall comply with the guidelines shall be entitled to loan benefits, subject to the eligibility criteria of the prevailing loan guidelines at point of application.

3. The employer shall pay the dividends on the employer contributions that their employees should have earned had the same been remitted on time.

(For Partnership/Corporation)

REPUBLIC OF THE PHILIPPINES) ___________________________ ) SS.

AFFIDAVIT OF UNDERTAKING

I, _____________________, of legal age, Filipino, single/married, and resident of ____________________________________________, depose and state that:

1. I am the (President/General Manager/Managing Partner) of (name of corporation/partnership) authorized to transact, negotiate, conclude, enter into and execute compromise agreement or amicable settlement with Pag-IBIG Fund regarding its unpaid contributions and accrued penalties. This is evidenced by the corresponding Board Resolution/Special Power of Attorney, a copy of which is attached and made an integral part hereof.

2. (Name of corporation/partnership) failed to (register, collect, and remit contributions) covering (period of violation) in violation of the “Home Development Mutual Fund Law of 1980” (P.D. 1752) and the “Home Development Mutual Fund Law of 2009” (R.A. 9679).

3. That the information and statements declared in the Payroll, Schedule of

Employees with Unremitted Membership Contributions (MC) and other documents I submitted to Pag-IBIG Fund are true and correct.

4. That I hereby undertake to comply with the terms and conditions of the plan of

payment I submitted to and approved by Pag-IBIG Fund. 5. That in the event a Pag-IBIG member or his/her legal heirs file/s an

application for claim upon the occurrence of any of the grounds for membership termination provided in R.A. 9679, during the term of the approved plan of payment of the (name of corporation/partnership), I, pursuant to the authority given to me under the attached Board Resolution/Special Power of Attorney, hereby undertake to pay upfront what is due to the member and remit the same to Pag-IBIG Fund.

6. The undertakings stated herein are made with the understanding that any

violation of the approved plan of payment or any falsification or misrepresentation in the information/statements that I made or in the documents which I submitted to Pag-IBIG Fund shall result in the automatic termination of the plan of payment and re-imposition of all penalties condoned. Pag-IBIG Fund shall also file criminal and/or civil action against (name of corporation/partnership) and I.

HQP-PFF-025

7. As the (President/General Manager/Managing Partner) of (name of corporation/partnership) and in my personal capacity, I hereby undertake to pay 5% of the total assessment in compliance with Department of Justice Circular 42, dated 14 September 2004, pursuant to R.A. 9279 including such amount that may be due, without prejudice to whatever action, criminal or civil which Pag-IBIG Fund might take against me in case of non-compliance with any of the terms and conditions of this undertaking.

8. I am executing this undertaking to attest to the truth of the foregoing and for

whatever legal purpose this may serve. IN WITNESS WHEREOF, I have hereunto affixed my signature this _____ day of

___________________, ________, in ________________. _________________________ Affiant SUBSCRIBED AND SWORN to before me this _____ day of ___________,

_______, by ________________________, who has satisfactorily proven to me his/her identity through his _______________________________ valid until ________________, that he is the same person who personally signed before me the foregoing Affidavit of Undertaking and acknowledged that he/she voluntarily executed the same for himself and that that of the business entity herein represented.

NOTARY PUBLIC

Doc. No. _____; Page No. _____; Book No. _____; Series of _____.

(For Single Proprietorship) REPUBLIC OF THE PHILIPPINES) ___________________________ ) SS.

AFFIDAVIT OF UNDERTAKING

I, _____________________, of legal age, Filipino, single/married, and resident of ____________________________________________, depose and state that:

1. I am the (registered owner/franchisee/proprietor) of a (nature of business and/or products, i.e. restaurant, food stall, gas station, beauty parlor, etc.) establishment/enterprise doing business as (DTI-registered business name) located at (business address).

2. (Business name) failed to (register, collect, and remit contributions) covering (period of violation) in violation of the “Home Development Mutual Fund Law of 1980” (P.D. 1752) and the “Home Development Mutual Fund Law of 2009” (R.A. 9679).

3. That the information and statements declared in the Payroll, Schedule of

Employees with Unremitted Membership Contributions (MC) and other documents I submitted to Pag-IBIG Fund are true and correct.

4. That I hereby undertake to comply with the terms and conditions of the plan of

payment I submitted to and approved by Pag-IBIG Fund. 5. That in the event a Pag-IBIG member or his/her legal heirs file/s an

application for claim upon the occurrence of any of the grounds for membership termination provided in R.A. 9679, during the term of the approved plan of payment of (business name), I, as (registered owner/franchisee/proprietor) and in my personal capacity hereby undertake to pay upfront what is due to the member and remit the same to Pag-IBIG Fund.

6. The undertakings stated herein are made with the understanding that any

violation of the approved plan of payment or any falsification or misrepresentation in the information/statements that I made or in the documents which I submitted to Pag-IBIG Fund shall result in the automatic termination of the plan of payment and re-imposition of all penalties condoned. Pag-IBIG Fund shall also file criminal and/or civil action against me.

HQP-PFF-024

7. As the (registered owner/franchisee/proprietor) and in my personal capacity, I hereby undertake to pay 5% of the total assessment in compliance with Department of Justice Circular 42, dated 14 September 2004, pursuant to R.A. 9279 including such amount that may be due, without prejudice to whatever action, criminal or civil which Pag-IBIG Fund might take against me in case of non-compliance with any of the terms and conditions of this undertaking.

8. I am executing this undertaking to attest to the truth of the foregoing and for

whatever legal purpose this may serve.

IN WITNESS WHEREOF, I have hereunto affixed my signature this _____ day of ___________________, ________, in ________________.

_________________________ Affiant SUBSCRIBED AND SWORN to before me this _____ day of ___________,

_______, by ________________________, who has satisfactorily proven to me his/her identity through his _______________________________ valid until ________________, that he is the same person who personally signed before me the foregoing Affidavit of Undertaking and acknowledged that he/she executed the same.

NOTARY PUBLIC

Doc. No. _____; Page No. _____; Book No. _____; Series of _____.

Documents

edited QA-pencon-ERs ver 1 4 (with RDD's comments) · PDF fileAffidavit of Undertaking (HQP-PFF-024)* ... (Revised 12/2011) ... The application form is also available at HDMF website