SSS CONTRIBUTION RATE TO INCREASE TO 13% OF SALARY BEGINNING JANUARY 2021
Members of the Social Security System (SSS) should brace for higher monthly contributions next year from 12% to 13% as the state-run pension fund pushes through with the premium hike effective January 2021.
The SSS said the scheduled increase next year in the monthly contribution of its members will ensure the long-term viability of the pension fund and increase the benefits to be enjoyed by them and their beneficiaries.
The pension fund said the full implementation by 2025 of the restructured rates and other reforms set in Republic Act (RA) No. 11199 or the Social Security Act (SSA) of 2018 will offset the financial impact of the P1,000 increase in the monthly pension of all member-pensioners that was implemented in 2017.
The premium hike to 13% from the current 12% of members’ respective salaries, shall not exceed the prescribed maximum monthly salary credit (MSC).
Finance Secretary Carlos Dominguez III expressed hope that SSS members would see their higher monthly contributions as their savings and safety net against the future hazards of sickness, maternity, disability, unemployment, old age, death, and other contingencies resulting to loss of income or financial burden for them and their beneficiaries.