SSS Contribution Rate To Increase By 1% Starting January 2021
Brace yourself for a higher SSS monthly contribution starting January 2021, as the state-run pension fund pushes through with the premium hike.
Members of the Social Security System (SSS) will have a 1% increase in their monthly contribution, from 12% it will be raised to 13% of the members’ respective salaries.
According to the SSS, 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. They added that that 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 PHP1,000 increase in the monthly pension of all member-pensioners that was implemented in 2017.
It was made clear however that 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 hopes that SSS members would look at the increase in premium as their long term savings and a safety net against unemployment, old age, sickness, disability, maternity, and other contingencies that can result in their loss of income.