The Social Security System has issued a revised schedule of contributions including the additional Monthly Salary Credits and corresponding amount of contributions that shall be effective for the applicable month of January 2014 as per Social Security Commission resolution No. 711-s.2013 dated September 20, 2013, pursuant to the approval of the President and as recommended by the SSC under Resolution No. 262-s.2013 dated April 19, 2013.
Accordingly, from the current 10.4% of the monthly salary the members will pay additional 0.6% in the contribution rate which shall be shouldered equally by the employer and employee who shall pay at 7.37% (from 7.07%) and 3.63% (from 3.33%), respectively which will make up to the new 11% contribution rate. Furthermore, the maximum MSC will increase from P 15,000 to P 16,000. Please check the new contribution table below.
* The minimum monthly salary credit for OFW members is P 5,000.
Self-Employed/Voluntary/OFW members shall pay at the total rate of 11%. However, for those(SE/VM/OFW) with advance payments (based on the old contribution schedule) at the minimum MSC of P1,000(P5,000 for OFW members) shall settle underpayments amounting to P6.00 per month (P30.00 per month for OFWs); otherwise, such advance contribution shall be deemed as ineffective. And those with an MSC other than the minimum may opt to pay the corresponding increase in contribution to retain at the same MSC; otherwise, such advance payment shall be posted at the applicable MSC.
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By: Jeff Bugante