Good things are happening for SSS members. The implementation of the new Social Security Act of 2018 will begin on April 1 of this year. SSS members will delight because this law states that retirement benefits will increase.
The current law enlists the increase of contribution rates to 12% which will start in the second quarter of the year (April). This is from the 11% from the former contribution rates. The soon-to-start Monthly Salary Credits is between Php2,000 to Php20,000/ According to Officer-In-Charge Aurora Ignacio, it is about time that SSS adjusts the contribution rates and the Monthly Salary Credits or MSC of the agency to increase the retirement benefits or its members.
She added that everyone who aims to have high SSS retirement benefits must work hard to earn for this monthly contribution. She also said that “SSS is the cheapest and most accessible pension scheme.” Because of this, she encourages everyone to contribute to SSS to save for their future.
The increase in monthly contribution for the members will pave way for bigger benefits for its members. Everyone who will give bigger contributions will definitely get bigger returns. An example of this is the sickness benefits. If you’re an SSS member and you have a monthly salary of Php20,000 and you already paid 12 months of contribution, you will get Php600/day sickness benefit which is Php142 higher than the present Php480/day.
Additionally, SSS members who already have 120 contributions from the former MSC maximum of Php16,000 will get Php6,400 as a basic monthly pension. Paying under the new MSC maximum of Php20,000 will give a member the new monthly basic of Php8,000.
According to SSS, it’s reasonable for the agency to increase the contribution rate by 1%. They cite an employee earning Php10,000 a month as an example. Currently, the monthly contribution rate of this kind of employee is Php363.30 which will be shouldered by the employee and Php736.70 which will be paid by the employer. This will now increase to Php400 and Php800 respectively.
You may want to read also:
- SSS Table of Contributions and Payment Schedule
- Applying SSS Loan Restructuring Program
- SSS Benefits that Every Filipino Should Know
- SSS Unemployment Benefits
An extra Php31B is earned through this law. In the coming years, there will be an additional 1% that will accumulate until the rates increase by 15% which is expected by the year 2025. This will also add to the fund life of SSS until the year 2045 through the implementation of the increases. This law is meant to improve the ‘investing capacity’ of the agency to provide a better income for everyone, Ignacio concludes. She also wishes that the member will understand why SSS had to increase their contribution rates which are to give more benefits to its current and upcoming members.