The Social Security System (SSS) members will see an increase in their contribution by one percent effective January 2021. The previous 12% contribution rate of members will now be at 13% but shall not exceed the prescribed maximum Monthly Salary Credit (MSC). From the SSS press release sent out, the one percent increase in contributions would offset the financial effect of the P1,000 rise in the monthly pension of all member pensioners implemented in 2017.
According to SSS President and CEO Aurora C. Ignacio, the added minimum MSC would be adjusted to P3,000 from the current 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 at P25,000 from P20,000. Land-based and sea-based OFWs and their employers in countries with Bilateral Labor Agreements with the Philippines will split evenly the additional one percent. That will carry the breakdown in the contribution rate to 8.6% for employers and 4.5% for members.
Members with active contributions in the regular SSS program, without final claim, and with salary brackets of P20,250 and above are required to contribute to the new SSS Provident Fund, called Workers Investment and Savings Program (WISP) which will also be proportionately shared between the employer and the employee.
The state-run pension fund plans to increase monthly contributions to 15% by the year 2025 completing the full implementation of the restructured rates and other reforms set in Republic Act (RA) No. 11199 or the Social Security Act (SSA) of 2018.
To know more about the new contribution schedule, you may visit the SSS website.
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