Social Security Commission had released the New Contribution Table which shall take effect April 2019 and payable on May 2019.
It has been noted that PRRD had signed into law RA 11199 otherwise known as the Social Security Act of 2018.
What comprises RA 11199?
A. New Contribution Rate and Monthly Salary Credit
Under the new law, the Social Security Commission is the governing board of the pension fund. The commission has the power to implement an increase in the monthly contribution from the current 11 percent to 12%, or a one percent increase every year until it reaches 15% starting 2019 to 2025.
The increase in the contribution aims to extend the fund life of SSS considering the new and enhanced benefits it will provide to the members.
Take note that the minimum monthly salary credit (MSC) will now increase to P2,000, while the maximum is P20,000.
For employed members earning less than P2,250 will have an equivalent MSC of P2,000 or a P240 monthly contribution. As employed members, he/she will only pay one third of the amount or equivalent to P80, while the employer must pay the two thirds of the amount or P160.
For Kasambahay or Household Helpers who are receiving less than P5,000 per month, the employer will be the one to pay for the entire contribution. This is one of the provision under Republic Act No. 10361 or the Domestic Workers Act or the Batas Kasambahay.
The increase in the contribution could mean further increase in the benefits.
B. Mandatory OFW Coverage
RA 11199 mandates the compulsory coverage of all Overseas Filipino Workers. Those earning P8,250 and below should have a monthly contribution of P960, while those receiving P19,750 and above, their monthly salary credit is P2,400.
C. Unemployment/Involuntary Separation benefit
In case of a member who loss a job due to Retrenchment or Closure of a Company, they are qualified to apply for the said benefit which is good for 2 months to help member tide over the situation while looking for another means of employment.
Do you want updates on the latest from SSS or any government page?
Like and Follow our Facebook Page: Pinoy Helpdesk!!!
Please share.