THE Social Security System’s (SSS’) new contribution schedule is set to take effect in January 2021 pursuant to Republic Act No. 11199 or the Social Security Act of 2018.
Based on SSS Circulars No. 2020-033-b, 034-b, 035-b, 036, and 039 signed by SSS President and CEO Aurora C. Ignacio, the contribution rate will be 13 percent, one percent higher than the current rate.
For employed members, including OFW members in countries with Bilateral Labor Agreements (BLAs) 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.
Also pursuant to the Social Security Act of 2018, the minimum monthly salary credit (MSC) will be adjusted 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 raised to P25,000 from P20,000.
The MSC to be considered for the computation of benefits under the regular social security program is capped at P20,000. However, contributions pertaining to the MSC in excess of P20,000 will go to the Workers’ Investment and Savings Program (WISP), a provident fund that will yield additional pension income for members contributing under it./PN
