State-run Social Security System (SSS) expects to collect P1.02 billion from employers this year under its amnesty program that would condone penalties on overdue contributions.

In a briefing on Monday, Judy Frances See, SSS International Affairs and Branch Expansion Division head, said as of March 13, the pension fund has already collected P113.4 million from the amnesty program.

See estimated that the expected collection this year is 26 percent of the total projected revenue from the program. Of the total P1.02 billion, P954.38 million will come from overdue contributions and P69.03 million in interest payments.

Romulo Neri, SSS president and chief executive, meanwhile, said the pension fund is expected to generate about P3.9 billion within the five years from the program.

Neri expects total contribution collections to reach P3.698 billion, while interest payments – which are pegged at 3 percent per annum – will amount to P208 million in five years.

“Employers have six months, which will end on July 31, to apply for condonation of penalties, but they can remit their obligations within maximum period of 48 months under the installment plan,” Neri told reporters.

“Initial figures show we have already collected P48.71 million from 549 employers nationwide,” Neri said, adding that condoned penalties have amounted to P151.39 million.

Companies have the option to fully settle their delinquencies within six-months amnesty period or pay in equal monthly installments of up to four years. The SSS expected 25,300 employers to avail of the  amnesty.

Last year, the pension fund sued 1,113 employers, mostly for failure to remit contributions of workers amounting to P478.22 million, including penalties of P167.04 million.

“The amnesty allows them to settle their long-overdue obligations without paying the accumulated penalties, and their workers can avail of SSS benefits and loans,” Neri said.