PAG-IBIG Penalty

Delinquent borrowers and unregistered employers are given a six-month period for the condonation of penalty by the Home Development Mutual Fund or Pag-Ibig Fund starting January 1, 2012 until June 30.

Per HDMF Circular No. 399, the program shall cover employers who did not enroll their employees with Pag-IBIG and those that did not also collect membership contributions.

These employers may apply for penalty condonation on the employer's counterparts' contributions of those coverable employees, according to Anthony Maglungsod, officer-in-charge assistant department manager for operations.

However, those employers who have previously availed of any penalty condonation offered by the Pag-Ibig Fund and employers who collected membership contributions and/ or STL amortizations from their respective employees but failed to remit the same to the Fund cannot avail of this program, Maglungsod added.

Employers, unregistered and existing, who wish to avail of the program are required to register with the Fund through its Online Employer Registration System prior to applying for penalty condonation not later than June 30, 2012.

Upon application for penalty condonation, employers are required to remit their contributions of current employees for the current remittance period and every month thereafter. Otherwise, the corresponding penalty chargers will apply.

The applications for penalty condonation is approved or disapproved not later than two months from the date of submission of the complete documents.