It was already announced before the possibility of increasing the monthly premium of Social Security System (SSS) members. And in January 2014, it will take effect. Hopefully will not be a burden, especially for ordinary Filipinos.
Many would say, the higher the contribution is, the higher retirement benefits you could get. If the members would only receive the right benefits from SSS and there will be no issues of corruption like unreasonable bonuses and perks of its officials, then this would be a very welcome development.
SSS have emailed its members of the upcoming new rates of contributions.
Dear Self-Employed, Voluntary and OFW Members:
Effective January 2014, the Social Security System (SSS) will implement a 0.6-percent increase in its current 10.4-percent monthly contribution rate, thereby setting the new contribution rate at eleven (11) percent. At the same time, the maximum Monthly Salary Credit (MSC) will be increased from P15,000 to P16,000. As affirmed by SSC Resolution No. 711-s.2013 dated 20 September 2013, the new SSS contribution rate and the new maximum MSC will become effective for the applicable month of January 2014.
These two moves, which were approved by President Benigno Aquino III in September 2013, are part of the SSS Reform Agenda that seeks to lengthen gradually the actuarial life of the Social Security Fund and to reduce the unfunded liability of SSS.
The 0.6 percent increase will be divided equally between employees and employers, with the latter shouldering 7.37 percent, while the former will pay 3.63 percent of the applicable monthly salary credit. However, Self-Employed and Voluntary Members (SEVMs), including overseas Filipino workers (OFWs), will shoulder the entire 11 percent rate.
With the new 11-percent contribution rate, the monthly contribution amount at the minimum MSC of P1,000 will be P110, and at the new P16,000 maximum MSC will be P1,760. Attached is a copy of the new SSS Contribution Table, for your guidance.
In case you have paid your contributions in advance from January 2014 onwards under the old contribution rate, please be advised of the following courses of action:
1. For those with advance payments at the minimum MSC of P1,000 (or P5,000 for OFWs), you must settle the underpayments amounting to P6.00 per month (or P30 per month for OFWs); otherwise, such advance payments will be considered “out-of-bracket” contributions and deemed ineffective;
2. For those with advance payments at an MSC other than the minimum, you may opt to pay the corresponding increase in contributions to retain the posting of your contributions at the same MSC. Otherwise, your advance payments will be posted at the next lower MSC, which could affect the levels of benefits that you would be entitled to, or the salary loans granted to you.
Should you have questions, please do not hesitate to contact your your servicing branch. You may also send an email to us through firstname.lastname@example.org.
Finally, we thank you for your continued support of the social security program.
Very truly yours,
EMILIO S. DE QUIROS, JR.
SSS President and Chief Executive Officer
If you haven’t start investing with SSS, better to do so. There are benefits which could help you in the future, even some small amount that you can use to buy glasses for child.