OVERSEAS Filipino worker (OFW) members of the state-run Social Security System reached 1.34 million as of June this year, surging by over 800,000 compared to the same period last year.
Despite the pandemic, many Filipinos are determined to work abroad to provide for their families and help the country gradually recover from the economic slump, according to SSS President and Chief Executive Officer Aurora C. Ignacio.
“With the assurance that their continuous membership and contributions in the SSS provide lifelong benefits in times of contingencies, we highly encourage our global heroes to become SSS members and religiously remit their contributions,” Ignacio was quoted in a statement as saying.
According to her, the SSS is one of the cheapest pension schemes in the Philippines that provides a wide range of social security programs, which definitely helps OFWs in times of difficulty.
“By being active members of SSS, they are assured of receiving pension benefits upon their retirement,” Ignacio added.
Under Republic Act 11199, or the Social Security Act of 2018, coverage in the SSS is compulsory for all sea-based and land-based OFWs provided they are not over 60 years old.
All covered OFWs may avail of all benefits, such as sickness, maternity, disability, unemployment, retirement, death and funeral. They are also entitled to apply for short-term member and housing loans based on the qualifying conditions.
For land-based OFWs, their declared monthly earnings at the time of their registration with the SSS shall be the basis of their initial monthly-salary credit (MSC) and the corresponding amount of monthly contribution.
The minimum MSC for land-based OFWs is P8,000 (roughly $160.55 at current exchange rates) while the maximum MSC is P25,000 ($501.71).
Land-based OFW members shall pay both the employer and the employee contributions. For instance, a member with a monthly income of P8,000 will pay the entire SSS contribution of P1,040.
Meanwhile, an OFW with a monthly income of P25,000 should pay an SSS contribution of P3,250 per month—P2,600 shall be allotted to the Regular Social Security Program while the remaining P650 shall be allocated in the SSS’s “workers’ investment and savings program,” or Wisp. The program is a voluntary provident fund launched last January to provide a safe, convenient, tax-free and principal-protected retirement savings plan for members with an MSC of more than P20,000.
For sea-based OFW members, the SSS said they will only shoulder 4.5 percent of the contribution rate while their respective employers will shoulder the remaining 8.5 percent. For example, an OFW member with a monthly income of P20,000 shall contribute P900, while the remaining P1,700 should come from the employer to complete the P2,600 monthly contribution.
The state pension fund also said OFWs may pay their monthly contributions in advance regardless of the number of months or years.
The deadline for payment of contributions for the months of January to September of a given calendar year may be paid up to December 31 of the same year while the contributions for the months of October to December of a given calendar year may be paid up to January 31 of the succeeding year.
“However, we would like to remind them that no contributions paid retroactively by a land-based OFW-member based on the above deadline shall be used in determining his/her eligibility to any benefit arising from a contingency wherein the date of payment is within or after the semester of contingency,” Ignacio said.
“Further, we are promoting that they use the various electronic payment channels to pay their monthly contributions regularly and to ensure their eligibility to short and long-term benefits, including loan privileges,” she added.