Pag-lBIG Fund

Corporate Headquarters
Petron MegaPlaza Bldg.,
358 Sen. Gil Puyat Avenue,
Makati City

Circular No. 447

TO: ALL CONCERNED

SUBJECT: GUIDELINES ON THE PENALTY CONDONATION PROGRAM

ON MANDATORY MONTHLY SAVINGS (MS) REMITTANCES
FOR FINANCIALLY DISTRESSED EMPLOYERS DUE TO
COVID-19 PANDEMIC

Pursuant to the approval of the Pag-lBIG Fund Board of Trustees on its 2021-02 meeting
held last 11 March 2021, the Guidelines on the Penalty Condonation Program on
Mandatory Monthly Savings (MS) Remittances for Financially Distressed Employers
due to COVID-19 Pandemic is hereby issued:

1. OBJECTIVES

1.1 To heed the request to condone the penalties of the financially distressed
employers who are affected by the COVID-19 pandemic; and

1.2 To encourage employers to settle their provident obligations.

2. COVERAGE

2.1 All employers who are operational from March 17, 2020 to December 31, 2020
and are affected by the COVID-19 pandemic.

2.2 Employers who did not comply with their previous plan of payments but are
now currently paying are still covered by this program.

2.3 For avoidance of doubt, the term "employers", as used in this Guidelines.
includes both private and public employers.

3. ELIGIBILITY

All financially distressed employers who were not able to remit their MS due to
community quarantine measures, which may include any of the following:

3.1 Did not deduct

3.2 With approved plan of payment, provided they are current on their installment
prior to the Enhanced Community Quarantine (ECO) declaration; or

3.3 Deducted MS but did not remit.

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4. MECHANICS

4.1 Al penalties on Membership Savings (MS) due from March 17, 2020 to
December 31, 2020 of employers whose application for penalty condonation
has been approved shall be condoned.

No interest or deprived dividends for the unremitted MS shall be collected for the
period from March 17, 2020 to December 31, 2020.

4.2 Eligible employers with existing plan of payment may avail of this penalty
condonation program.

4.2.1 There will be no re-imposition of penalties for employers who were not
able to pay their scheduled dues under their approved plan of payment
afterMarch 17, 2020 only.

Penalties shall be re-imposed to those employers who have failed to pay

their dues/obligations prior to March 17. 2020.

4.2.2 The Fund, upon its approval of the employer's application with this Penalty
Condonation Program, will give a new schedule for the unpaid installments
under the employer's original schedule of plan of payment, which the
employer should comply with.

Employers who did not comply with their previous plan of payments but are now
currently paying are still covered by this program.

4.3 Employers whose applications for this Penalty Condonation Program are
disapproved shall be required to pay all membership contribution arrearages
including applicable penalties, interests, and dividends, if any. Otherwise, the
corresponding legal actions shall be instituted and pursued.

5. APPLICATION FOR PENALTY CONDONATION

5.1 Eligible private and government employers may avail of this program within six
(6) months from Board approval.

5.2 Only applications with complete documents shall be accepted and processed.

6. FULL PAYMENT
6.1 Employers shall be required to pay all employer counterpart arrearages within
thirty (30) days from approval of application for penalty condonation. Otherwise,
said approval shall be forfeited.

6.2 An employer who signified intent to pay in full but later on opted for a plan of
payment must submit his plan of payment not later than the 25th day from the
date of approval of application for penalty condonation. Failure to do so renders
the approval automatically revoked and ineffective.

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 7. PLAN OF PAYMENT

7.1 If full remittance cannot be made, an employer may submit a plan of payment
upon application for penalty condonation. Said plan of payment shall be subject
to the Fund's approval in accordance with the approved level of authorities.

7.2 Eligible employers with an approved plan of payment shall be granted full
condonation of penalties. However, the condonation shall be automatically
revoked, and the penalties re-imposed by the employer's failure to comply with
said plant of payment.

7.3 The period of settlement shall not exceed twenty-four (24) months.

7.4 Payments shall commence exactly one month from the date of approval of
application for penalty condonation.

7.5 The employer shall issue the corresponding number of post-dated checks to
cover the approved plan of payment.

7.6 Further, appropriate civil and/or criminal actions shall be filed against the
delinquent employers who violate their approved plant of payment. In addition,
should the employers fail to collect and/or remit the employee and employers
contributions due to the current period, the same shall be charged a penalty of
1/10 of 1% of the amount due per day of delay.

8. AMENDMENTS

Amendments to this Guidelines shall be approved by the Senior Management

Committee pursuant to the authority bestowed on it by the Fund's Board of Trustees
to formulate and issue guidelines and procedures in furtherance of the objectives of
this program consistent with the mandate of the Fund under its charter and existing
laws.

9. MECHANISM ON RESOLUTION OF ISSUES

Any issue in the interpretation and implementation of this Guidelines shall, as much
as possible, be resolved by the concerned officer. Matters that are not thereby
satisfactorily resolved shall be escalated to the next higher approving authority.

10. EFFECTIVITY

This Circular takes effect after fifteen (15) days following the completion of its
publication in the Official Gazette or in a newspaper of general circulation.
Digitally signed by Moti
Acmad Rizaldy Panlaque
Date: 2021.07.07
22:52:33 +08'00'

ACMAD RIZALDY P. MOTi

Chief Executive Officer