(Eagle News) — The contributions of members of the Social Security System (SSS) are set for a scheduled increase by January next year, according to the Department of Finance.
This sew SSS contribution rate will “ensure pension fund viability, increase benefits for members and beneficiaries” according to a DOF release.
The increase in the monthly contribution of SSS members “will ensure the long-term viability of this pension fund and increase the benefits to be enjoyed by them and their beneficiaries,” the Social Security Commission (SSC) said.
The hike, set to begin by January 2021, translates to an increase by one percentage point in the monthly contribution rate of SSS members.
This means that from the current 12 percent of the members’ salaries, the SSS monthly contributions will be increased to 13 percent, but not to exceed the prescribed maximum monthly salary credit (MSC).
The MSC is the determining factor for contributions and benefits, which is based on the member’s monthly earnings.
By 2025, there will be full implementation of the restructured rates and other reforms set in Republic Act (RA) No. 11199 or the Social Security Act (SSA) of 2018.
“Upon full implementation in 2025, the reforms under the SSA of 2018 will offset the adverse financial impact of the P1,000 pension increase granted in 2017,” said Finance Secretary and SSC Chairman Carlos Dominguez in a statement.
Through the SSA of 2018, the SSS last year introduced the Unemployment Benefit for members involuntarily separated from their jobs, and extended the MSC cap for the computation of benefits to P20,000.
Dominguez expressed the hope that SSS members would see their higher monthly contributions as their savings and safety net against the future hazards of sickness, maternity, disability, unemployment, old age, and death. This is aside from other contingencies resulting to loss of income or financial burden for SSS members and their beneficiaries.
The restructuring of the SSS contribution rate, along with the minimum and maximum MSCs, are just among the provisions of RA No. 11199.
The increase in monthly SSS contributions will “ensure the long-term viability of the SSS Fund, expand its coverage and provide more and higher benefits for its current and future members and their beneficiaries,” according to the DOF.
(Eagle News Service)