The Social Security System (SSS) announced the increase of its monthly contribution rate starting January 2021, to ensure its long-term fund viability and for members and beneficiaries to enjoy the higher benefits.
The new contribution rate which is set to take effect this January will be at 13% - 1% higher from 12% current contribution.
"SSS is set to hike beginning in January 2021 its monthly contribution rate by one percentage point to 13 percent from the current 12 percent of their respective salaries, but not to exceed the prescribed maximum monthly salary credit (MSC)," Finance Secretary and SSC Chairman Carlos Dominguez said.
The restructured rates is pursuant to Republic Act No. 11199 or the Social Security Act of 2018 " will offset the financial impact to the Fund of the P1,000 increase in the monthly pension of all member-pensioners that was implemented in 2017," the statement read.
"For employed members, land-based OFW members in countries with Bilateral Labor Agreements with the Philippines, and sea-based OFW members, the additional one percent will be divided equally between them and their employers, bringing the contribution rate breakdown to 8.5 percent for their employers and 4.5 percent for them.
New SSS contribution rate to ensure pension fund viability, increase benefits for members, beneficiaries The Social...
Posted by Philippine Social Security System on Tuesday, December 22, 2020
"The minimum MSC will be raised to P3,000 from P2,000 (except for Kasambahay and OFW members whose minimum MSC will remain at P1,000 and P8,000, respectively), while the maximum MSC will be at P25,000 from P20,000. " according to the statement.
“The SSS expects to further improve its financial performance and have better collections in the years ahead as the economy recovers from the coronavirus pandemic and regains its pre-COVID growth momentum," Dominguez said.
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