MANILA, Philippines – This year, the Social Security System (SSS) is set to increase their contribution rate by 12% to help extend its fund life.
Following President Rodrigo Duterte’s signing of the Social Security System (SSS) Rationalization Act, SSS members and employers are expected to see an increase in their contributions. In an effort to extend SSS’ fund life by at least 20 years, SSS members will be charged an increase in their contribution by one percentage point annually starting this year until the current rate of 11 percent increases to 15 percent by 2025.
At least two-thirds of the contribution rate increase would be shouldered by the employer. It also aims to adjust the minimum and maximum salary credit of members.
SSS president and chief executive Emmanuel F. Dooc explained that SSS’ higher contribution rate, the SSS’s fund life will be extended until 2038 from 2032 at present. It can be recalled that the SSS’s fund life was slashed by 10 years to 2032 from 2042 previously when the additional P1,000 a month were given away to pensioners starting 2017.
Under the new law, SSS will be empowered to enhance its own benefit system and act on the penalties of its delinquent employers without the prior approval from the President.
Consequently, it can also implement contribution rate hikes even without the President’s approval, unlike the current charter wherein only the chief executive can grant approval on rate adjustments.
It will also allow SSS to diversify its investments to help boost earnings, determine monthly salary credit and contribution tables based on actuarial studies; and further improve the benefits being disbursed to its members.
The law also seeks mandatory coverage of overseas Filipino workers in an effort to protect them in times of needs. Currently, only 500,000 OFWs are covered and they are seeking to expand this to 2.5 million members.
For SSS members who will be in unemployed involuntarily, an “unemployment insurance” will be given for two months.
Senator Richard Gordon, one of the bill's authors, previously said the measure's passage would "expand, protect and increase the SSS fund so that when the time comes, there would be available pension for the people."
A copy of the signed law has not yet been made public. At present, the contribution rate stands at 11 percent. But SSS vowed to immediately craft the law’s implementing rules and regulations (IRR).
Stay tuned at The Summit Express for updates on the SSS contribution hike as well as the 2019 contribution table.
— Sally, The Summit Express
Following President Rodrigo Duterte’s signing of the Social Security System (SSS) Rationalization Act, SSS members and employers are expected to see an increase in their contributions. In an effort to extend SSS’ fund life by at least 20 years, SSS members will be charged an increase in their contribution by one percentage point annually starting this year until the current rate of 11 percent increases to 15 percent by 2025.
 |
| Duterte signed into law the Social Security System (SSS) Rationalization Act | Photo Courtesy: ABS-CBN |
At least two-thirds of the contribution rate increase would be shouldered by the employer. It also aims to adjust the minimum and maximum salary credit of members.
SSS president and chief executive Emmanuel F. Dooc explained that SSS’ higher contribution rate, the SSS’s fund life will be extended until 2038 from 2032 at present. It can be recalled that the SSS’s fund life was slashed by 10 years to 2032 from 2042 previously when the additional P1,000 a month were given away to pensioners starting 2017.
Under the new law, SSS will be empowered to enhance its own benefit system and act on the penalties of its delinquent employers without the prior approval from the President.
Consequently, it can also implement contribution rate hikes even without the President’s approval, unlike the current charter wherein only the chief executive can grant approval on rate adjustments.
It will also allow SSS to diversify its investments to help boost earnings, determine monthly salary credit and contribution tables based on actuarial studies; and further improve the benefits being disbursed to its members.
The law also seeks mandatory coverage of overseas Filipino workers in an effort to protect them in times of needs. Currently, only 500,000 OFWs are covered and they are seeking to expand this to 2.5 million members.
For SSS members who will be in unemployed involuntarily, an “unemployment insurance” will be given for two months.
Senator Richard Gordon, one of the bill's authors, previously said the measure's passage would "expand, protect and increase the SSS fund so that when the time comes, there would be available pension for the people."
A copy of the signed law has not yet been made public. At present, the contribution rate stands at 11 percent. But SSS vowed to immediately craft the law’s implementing rules and regulations (IRR).
Stay tuned at The Summit Express for updates on the SSS contribution hike as well as the 2019 contribution table.
— Sally, The Summit Express
