It’s exactly three days before we welcome 2021! The year 2020 was indeed a very challenging and tough ride for every Filipino. Yes, we started the year with a clear vision and goals and yet, we experienced a drastic start with the Taal Volcano eruption in January, followed by the spread of African Swine Fever in February, and the major outbreak of the coronavirus disease in March, which was followed by a series of enhanced community quarantine until June. In the last quarter of this year, we have been struck by a series of destructive natural calamities in Luzon provinces and Metro Manila brought by Typhoons Rolly, Quinta and Ulysses. By December, a string of hope was unveiled with the discovery of a Covid vaccine and followed by its mass distribution in some European countries.
We have survived! Despite all these happenings, we haven’t lost our faith. Faith in God and faith in our people, and the hope that things will turn out for the better. There is really a reason behind all of these, which taught us a few lessons in adapting to change as we practice the new normal. To mention a few—wearing our face masks and face shields, practicing social distancing, avoiding crowded areas, limiting social interactions and opting to engage in online and virtual reunions instead so as not to contract the virus.
As we welcome 2021, the Social Security System (SSS) will also implement its new contribution schedule and Workers’ Investment and Saving Program (WISP) pursuant to Republic Act 11199 or the Social Security Act of 2018.
A 1 percent adjustment in contribution rate will be implemented next year, from the current 12 percent, making it 13 percent by January 2021.
Likewise, the minimum monthly salary credit would be adjusted to P3,000 from the current P2,000, except for Kasambahay and OFW members whose minimum MSC will respectively remain at P1,000 and P8,000, while the maximum MSC will be at P25,000 from P20,000.
As to the contribution share of the employer and employee, the additional 1 percent will be equally divided, thus the employer share will be at 8.5 percent from 8 percent, while the employee share will be at 4.5 percent from 4 percent. It applies to employed members, land-based OFW members in countries with Bilateral Labor Agreements with the Philippines, and sea-based OFW members.
To cite an example, those who will be paying under the P10,000 MSC starting next year will pay a monthly contribution of P1,300, which is P100 higher than the P1,200 in 2020.
Historically, though, from 1980 to 2016, the contribution rate was increased only four times, while pensions were increased 22 times. Further, in 2017, a P1,000 additional monthly benefit was implemented for all pensioners without a corresponding adjustment in the contribution rate, which caused a reduction in the SSS fund life of 10 years.
Indeed, one of the significant provisions under the new SSS law is a schedule of increases in contribution rate as well as the minimum and maximum MSCs up to 2025. Upon full implementation, the reforms under it will offset the adverse financial impact of the additional monthly benefit granted in 2017.
SSS never really stops in offering new and beneficial programs to its members, especially amid the pandemic. Let us take to heart the lessons 2020 taught us and realize that we are all still blessed that we are still able to provide for ourselves and for our families.
On behalf of the SSS Management and staff, let me greet everyone—Manigong Bagong Taon!
Stay safe and well!
Aurora C. Ignacio is SSS president and chief executive officer.
We welcome your questions and insights on the topics that we discuss. E-mail mediaaffairs@sss.gov.ph for topics that you might want us to discuss.