SSS will raise monthly income contribution rates to 13% starting in January 2021

MANILA – Monthly contributions to the Social Security System (SSS) will increase to 13 percent of members’ income starting in January 2021.

This is higher than the current 12 percent contribution drawn from members’ salaries, the Social Security Commission (SSC) said.

For the monthly minimum wage credit (MSC) of P3,000, the new rates would mean a contribution of P390 from the current P320.

MSC determines the level of contributions and benefits per member based on their monthly income.

The president and secretary of Finance of the SSC, Carlos Domínguez, said that the rate increase will ensure the long-term viability of the pension fund and will expand coverage and benefits for members and their beneficiaries, as provided in the Law of the Republic No. 11199 or the Social Security Law (SSA). of 2018.

“Upon full implementation in 2025, the 2018 reforms under the SSA will offset the adverse financial impact of the P1,000 pension increase granted in 2017,” Domínguez said in a statement.

“Any drop in collection can generate cash flow and liquidity problems. This could jeopardize the ability of the SSS to provide its members and beneficiaries with loan benefits and privileges, “he added.

The new contribution rates also expanded the benefits that members and their beneficiaries can get, which include sickness, maternity, unemployment, retirement, disability, death and funeral benefits.

He hoped that members could see this as a “savings and a safety net” against any illness, loss of income stream or other contingencies.

Through the SSA, the SSS last year introduced unemployment benefit for members who were involuntarily separated from their jobs and extended the MSC limit for calculating benefits to P20,000.

SSS distributed P159.47 billion in social security and benefits from January to October to a total of 3.56 million members and beneficiaries, a decrease of 2.6 percent as disbursements slowed at the height of the COVID-pandemic. 19.

Employer groups previously called on SSS and Philhealth to delay contribution increases to provide relief to Filipinos as the COVID-19 pandemic left 4.5 million people out of work and others with lower income and hours of work. reduced.

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