Amended SSS charter allows hike in monthly contributions

MEMBERS OF the Social Security System (SSS) will have to pay more for their monthly contributions after President Rodrigo R. Duterte enacted the bill amending its charter.

Executive Secretary Salvador C. Media ldea said on Friday that Mr. Duterte has signed into law the Social Security Act of 2018, which seeks to improve the fund life of the pension fund.

The new law allows the Social Security Commission — the policy-making body of the SSS — to increase the contribution rate without the approval of the President.

Under the law, the contribution rate will be increased by a percentage point every other year starting 2019 at 12%, until 15% by 2025, from the current 11%. It also gradually raises the minimum and maximum monthly salary credits (MSC) — the basis for the contribution payments — every other year starting 2019 at P2,000 and P20,000, respectively, until P5,000 and P35,000 by 2025, from P1,000 and P16,000 currently.

Starting this year, 8% of the 12% will be shouldered by the employer, and 4% by the employee, from the current 7.37%-3.63% split. By 2025, the sharing scheme will be 10% for the employer and 5% for the employee.

Moreover, the bill also introduces an Unemployment Insurance or Involuntary Separation Benefits, which will be available to SSS members not over 60 years old who are involuntarily separated from employment. These members shall be paid benefits in monthly cash payments equivalent to 50% of the monthly salary credit for two months at most.

It will also include the compulsory coverage of overseas Filipino workers with social security protection. —