Business

Businesses urge Pag-IBIG to lift penalties on late remittances

Businesses urge Pag-IBIG to lift penalties on late remittances

MANILA, Philippines — Three of the country’s leading business groups have urged the Home Development Mutual Fund (Pag-IBIG) to offer penalty condonation on unsettled obligations in light of the ongoing pandemic.

In a letter to Pag-IBIG chief executive officer Acmad Rizaldy Moti, the Philippine Chamber of Commerce and Industry (PCCI), Employers Confederation of the Philippines (ECOP) and Philippine Exporters Confederation Inc. (Philexport) requested that a penalty condonation be offered for businesses that failed to remit their employees’ savings within the past two years.

“On this note, it is also respectfully requested that these business owners applying for a penalty condonation be given a longer payment plan to settle all their outstanding obligations with Pag-IBIG Fund,” the groups said.

The letter was signed by PCCI acting president Edgardo Lacson, ECOP president Sergio Ortiz-Luis Jr. and Philexport chairman George Barcelon.

The groups said the move would help ease the burden on businesses from the ongoing pandemic.

“In the spirit of helping employers recover from the effects of this pandemic, it is our earnest desire to be of assistance to our stakeholders in the myriad of burdens that they are facing during this time of national health crisis,” the groups said.

In particular, the groups said a total of 35,049 establishments nationwide have filed for permanent closure since last year, resulting in 710,417 displaced workers.

“While we also recognize that majority of business owners were affected in recent years, we humbly ask consideration from your office to extend the same to businesses who may still have outstanding penalties due for payment to Pag-IBIG prior 2020,” the groups said.

“Doing so may help keep our businesses afloat during these trying times,” the groups added.