The new SSS Contribution Table was implemented last Monday, April 1, 2019, with an increased contribution to 1 percent. It has now three tables: For Employed, Self-Employed, Voluntary Members, and Non-Working Spouse; For Household Employers, and Kasambahay; For OFW Members.
Starting this month, April 2019, members of the Social Security System and their employers, will now pay the higher contribution, from 11 percent to 12 percent. The Social Security Act of 2018, that was signed by President Rodrigo Duterte in February allowing the increase of SSS members’ monthly contribution by 1 percent every other year until it reaches 15 percent in 2025
Moreover, besides the mandated hike rate in monthly contribution, the new SSS law will also make membership compulsory among overseas Filipino workers (OFWs). For the sea-based OFWs, their agencies or employers are responsible for their monthly sss contributions. In contrast, all land-based OFWs not over 60 years of age will fall under the self-employed category.
The SSS said that this 1 percent increase is reasonable, stressing the improved benefits of the members, which enable them to save more for retirement.”We all want a comfortable retirement and to do that, those who are in their productive years must work hard to save more,” SSS Officer-In-Charge Aurora Ignacio said in a statement.
“The good news is that those who will save more with SSS under the new maximum Monthly Salary Credit of ₱20,000 will have a higher amount of benefits and loan privileges as the Monthly Salary Credit is one of the main factors used in the computation of benefits and loan privileges,” Ignacio added.
Reaction of Concerned Citizens
Critics say that SSS should improve its collection system first, before implementing any change of the monthly contribution. In response to that, the state pension fund said that their collection system has improved under the Duterte administration.
How are the SSS Members? It rocks the social media with their various reactions but obviously with one theme and direction. No one would like to be a victim of April Fools day, but now, they are hoping – wishing that this new increase contribution rate is just part of April Fools Day.