It’s been two years since President Duterte signed into law Republic Act (RA) 11199 or the Social Security Act of 2018 on February 7, 2019 that took effect on March 5, 2019, strengthening the Social Security System (SSS).
One of the significant provisions of the law concerns the new SSS Contribution Rate as well as the changes in the monthly salary credits, except for house helpers, which remained fixed at the minimum MSC of 1,000. Perhaps it is relevant that I discuss this in today’s column for the benefit of our members and pensioners.
First of all, I would like to commend my predecessor, former SSS President and CEO Emmanuel F. Dooc, for this legacy which has been one of the pivotal milestone in the SSS history. Hats off also to our legislators, specifically to Sen. Richard Gordon who authored this law with his working principle—WORK. INVEST. SAVE. PROSPER. At present, we still adopt it with the launching of our own Provident Fund called Worker’s investment and Savings Program (WISP).
What are the significant features of RA 11199?
First, as I have mentioned earlier, for the financial viability of the fund, the SSS Board or the Social Security Commission (SSC) has now the power to implement new contribution rates, which before has to go through Congress for approval. This includes the biennial 1 percent additional contribution rate, which started in 2019 (currently at 13 percent) until it reaches 15 percent by 2025.
Second is the additional benefit on top of the six regular benefits, which SSS administers, called the Unemployment Benefit. Among the existing pension fund in the country, it is only SSS that offers this benefit for members who were involuntarily displaced due to downsizing, retrenchment, and other related reasons of separation. This is a two-month cash allowance given to the member, which is equivalent to 50 percent of the monthly salary credit.
Third, the reduction of penalty rates for employers. Under the old law, RA 8282 or the Social Security Act of 1997, which was approved on May 24,1997, and under RA 1161 that established the SSS on September 1, 1957, SSS meted a 3 percent penalty rate for employer’s contribution delinquency. Under RA 11199, it is now pegged at 2 percent. With these major changes, SSS has offered a Contribution Penalty Condonation Program to all employers even with pending cases filed in courts, which ended on September 6, 2019. For this program, some 55,000 employers availed themselves with a collection of P1.81 billion during the six-month duration of the CPCP.
“Fourth is the mandatory SSS coverage of all Overseas Filipino Workers, whether they are sea-based or land-based and under Bilateral Labor Agreements or not, as well as the increase in monthly salary credit for overseas Filipino workers from 5,000 to 8,000 in 2019. We understand the plight of our global and modern heroes, considering their sacrifices to be apart from their respective families, and so they deserve this kind of social security protection from SSS in times of contingencies.
With the start of 2021, SSS is now currently shifting to a defined contribution pension scheme where members get their benefits based on their actual contributions from the defined benefit pension scheme. This is true to those paying 20,000 up to the maximum monthly salary credit of 25,000 where part of their contributions goes to WISP, the SSS Provident Fund.
SSS has been a part of every working Filipino in the last 63 years, and the SSS Management has been doing a great share in protecting the funds of our 38.8 million members.
On this note, I would like to share the quote of Sec. Dominguez in one of his recent statements, “RA 11199 will ensure the long-term viability of the SSS Fund, expand its coverage and provide more and higher benefits for its current and future members and their beneficiaries.”
I truly agree with him.
Have a productive week ahead!
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.
3 comments
Kelan po kaya magkakaron ulit ng SSS condonation? Thanks.
meron po bang SSS Condonation ngayong 2021? Kailan po ulit magkakaron?
Kelan po ang starting ng condonation this year meron pa po ba? Salamat po