MANILA, Philippines – Members of the Social Security System (SSS) will start paying higher contribution rate starting April.
The 1 percentage point increase to 12% next month has become inevitable with the enactment of the pension fund’s new charter that extends fund life
The new law also raised the minimum monthly salary credit (MSC) to P2,000 from P1,000, and the maximum MSC to P20,000 from P16,000.
Employees earning less than P2,250 a month must contribute to the fund 12% or P240 and their minimum MSC will be P2,000.
Specifically, employers must shoulder P160 or two-thirds of the contribution while the employees must shoulder the remaining P80.
Meanwhile, those earning a monthly compensation of P19,750 will have a maximum MSC of P20,000.
Their monthly contribution will be P2,400 with P1,600 to be shouldered by the employer and P800 by the employee.
Self-employed and voluntary members will also have adjustments in their contributions.
The non-working spouse shall contribute an amount based on 50% of his or her working spouse’s MSC.
Meanwhile, the Kasangbahay Law mandates employers to pay the entire contribution of house helpers earning P5,000 a month and the amount ranges from P120 to P600.
Kasangbahays earning P19,750 a month and above will have to contribute P2,400 that is P1,600 from the employer and P800 from the house help.
Overseas Filipino workers (OFWs), meanwhile, will have to contribute from P960 for those earning P8,250 and below a month to P2,400 for those who receive P19,750 and above monthly compensation based on the minimum MSC of P8,000. – Marje Pelayo
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