SSS Set To Implement Contribution Rate Hike From 12% to 13% Starting Next Year
The Social Security System (SSS) announced the increase of contribution rate from 12% to 13% starting January 2021.
On Wednesday (December 23, 2020), SSS announced the scheduled increase of monthly contributions starting next year. The agency announced that the contribution hike would ensure the long-term viability of the pension fund and benefits of the members.
The state-run pension fund said that the hike of members’ respective salaries shall not exceed the prescribed maximum monthly salary credit. The agency also aims to implement of the restructured rates by 2025.
Finance Secretary Carlos Dominguez III is hoping that the members may consider the hike of their monthly contributions as savings, which could really help them in the future especially with unexpected circumstances.
SSS said that members who will suffer disease, old age, death, disability, unemployment, maternity, and other factors resulting to loss of income in the future could really receive benefits.
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“The SSS expects to further improve its financial performance and have better collections in the years ahead as the economy recovers from the coronavirus pandemic and regains its pre-COVID growth momentum,” Dominguez said.
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