Business Groups Call for Condonation of Pag-IBIG Penalty amid Crisis
PAG-IBIG PENALTY – Several business groups are calling for the condonation of the penalty for employees’ savings that were not remitted.
The business field is one of those greatly affected by the COVID-19 pandemic. Amid the crisis, several establishments and companies were left with no choice but to close as they can no longer meet the demands of the pandemic.
The quarantine measures are limiting the operations of businesses in the Philippines – but many businessmen understand that health is the priority now. Sadly, the closure of several businesses is equal to the loss of income for many households. Some of those who lost their jobs are the sole breadwinners of their families.
Amid the crisis, some businesses may not be able to remit the savings of their employees to social insurance institutions like the Pag-IBIG Fund. The delay may mean the implementation of the Pag-IBIG penalty.
In line with it, based on an article on ABS-CBN News, several business groups are calling for the “condonation” of the Pag-IBIG penalty amid the crisis. The request covers businesses that were not able to remit the savings of their employees for the past two (2) years.
In a letter to the government agency, the Philippine Chamber of Commerce and Industry (PCCI), Employers Confederation of the Philippines (ECOP), and the Philippine Exporters Confederation, Inc. (PHILEXPORT) stated its request that businesses will also be given a longer payment plan for the settlement of its obligations.
The groups calling for the condonation of the Pag-IBIG penalty stressed the move as in line with the pursuit to help for the recovery of the employers. According to the report, since last year, around 35,049 have shut down. The closure of these businesses further resulted in the displacement of some 710,417 workers.
As of this writing, Pag-IBIG has yet to respond to the request. More updates may be posted soon.