Members of Social Security System (SSS) will have to pay higher contributions next year as the higher monthly rate of 11 percent from 10.4 percent starts January 2014.
The increase in contribution rate is to correct unfunded liability, and this will reduce the unfunded liability by P166 billion or 15 percent.
In his fourth State of the Nation Address (SONA) last July, President Benigno Aquino III called for an increase in contributions of SSS members by 0.6 percent which will help cut liabilities of the state-run pension fund.
SE/VM/OFW members who have already paid their contributions in advance for the applicable months of January 2014 onwards based on the old contribution schedule are advised as follows:
1. Those with advance payments at the minimum MSC of P1,000 (P5,000 for OFW members) shall settle underpayments amounting to P6.00 per month (P30.00 per month for OFW members); otherwise, such advance payment shall be deemed as ineffective contributions; and
2. Those with advance payments at an MSC other than the minimummay opt to pay the corresponding increase in contributions to retain posting at the same MSC; otherwise, such advance payment shall be posted at the applicable lower MSC.
The increase in contribution rate is to correct unfunded liability, and this will reduce the unfunded liability by P166 billion or 15 percent.
In his fourth State of the Nation Address (SONA) last July, President Benigno Aquino III called for an increase in contributions of SSS members by 0.6 percent which will help cut liabilities of the state-run pension fund.
SE/VM/OFW members who have already paid their contributions in advance for the applicable months of January 2014 onwards based on the old contribution schedule are advised as follows:
1. Those with advance payments at the minimum MSC of P1,000 (P5,000 for OFW members) shall settle underpayments amounting to P6.00 per month (P30.00 per month for OFW members); otherwise, such advance payment shall be deemed as ineffective contributions; and
2. Those with advance payments at an MSC other than the minimummay opt to pay the corresponding increase in contributions to retain posting at the same MSC; otherwise, such advance payment shall be posted at the applicable lower MSC.
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