3 million members stopped paying SSS contribution
THE Social Security System (SSS) said an estimated 3 million members stopped paying contributions last year after temporarily or permanently losing their jobs when businesses closed after lockdown measures led to the tanking of the economy.
The SSS added that “informal or voluntary members may try to prioritize spending for their immediate needs, such as food and shelter, as the ongoing Covid-19 pandemic has caused a lot of uncertainties.”
Despite this, SSS President and CEO Aurora C. Ignacio urged members to continue paying their monthly contributions so as not to lose their benefits and privileges with the state fund which will help them in future contingencies.
“We do not want these members to lose the privilege of availing other benefits from the SSS as a result of this situation. We have to convince them to come back, this time as voluntary paying members,” Ignacio was quoted in a statement over the weekend.
“We understand that times are difficult right now but continuing your membership with SSS is one of the most practical decisions that you can make for yourself and your family,” she added. “Consider your SSS contributions as savings for today and an investment for your future.”
According to Ignacio, regularlypaying members are entitled to social security benefits provided they meet specific qualifying conditions set for each benefit eligibility. She said it is also essential that the member is updated in paying his contributions to apply for such benefits or loans.
The state-run pension-fund manager administers two programs, namely the Social Security program, which covers sickness, maternity, disability, unemployment, retirement, funeral and death and the employees compensation program for work-related injuries such as sickness, disability, death and funeral.
For those who were involuntarily separated from employment, the SSS said they may resume payment of their monthly contributions as voluntary members by paying any amount they can afford to continue.
Starting January, employed members are mandated under Republic Act 11199 (Social Security Act of 2018) to contribute 13 percent of the monthly salary credit, a 1-percentage point increase from the previous years’ 12 percent. With a monthly salary credit between P3,000 to P25,000, this amount will be shared between the employee and employer at 4.5 percent and 8.5 percent, respectively.
For land-based overseas Filipino workers, the minimum monthly salary credit (MSC) is pegged at P8,250 for a monthly contribution of P1,040, although they may opt to pay a higher contribution amount to increase their benefits. For non-working spouses, contribution will be based on the working spouse’s latest posted MSC, but in no case shall it be lower than P3,000.
Self-employed members, however, must pay the full 13 percent contribution, based on their monthly earnings declared at the time of registration.
Bills seeking to authorize the President to defer the scheduled increases in SSS contributions in times of national emergency have already been approved separately by the Senate and Lower House on third and final reading last month.
But Ignacio has earlier warned that the temporary suspension of the members’ contribution increase this year will imperil the sustained benefit payments to members, rather than strengthen the SSS fund.
She has disclosed that the SSS stands to lose over P41 billion if the scheduled increase in contribution rate for this year is suspended.