The state-run social insurance program for non-government employees also known as Social Security System (SSS) has collected a massive amount of P98.3 billion from its members’ contributions for the first 3 quarters of the year, from January to September. This has been a 10 percent increase compared to last year’s P89 billion.
According to SSS, the 10 percent increase came from all four major segments of its membership.
- The take from employed members’ contributions rose 11 percent to P85 billion as of September from P77.4 billion a year ago due to the SSS’ coverage drive and the stricter implementation of policies concerning the SSS obligations of employers, Eleonora Y. Cinco, officer-in-charge at the SSS Management and Planning Division, said.
Employers with more than 100 employees, which are classified as large accounts, contributed P57.4 billion. On the other hand, employers with less than 100 member-employees that fall under “branch accounts” contributed P28.2 billion.
SSS also said that they are exerting greater pressure on delinquent employers to comply with their responsibilities under the law through legal actions such as issuance of demand letters and filing of court cases for non-remittance of contributions. More 7, 000 employers were sued by SSS since 2010.
- Voluntary Members Contributions from voluntary members rose to P5.5 billion, which was up by 11 percent from last year’s P4.9 billion.
- Self-Employed Members Contributions from self-employed members grew from P4.9 billion last year to P5.5 billion this year, up by 9 percent.
- Overseas Filipino Workers Collections from OFWs gained 6 percent more from P2.7 billion in 2014 to P2.9 billion this year.
According to Cinco, the collection growth particularly coming from the three member segments that includes self-employed, voluntary members and OFWs are much harder to strengthen than the employees’ segment. “It shows that these individuals have a better appreciation of the social security benefits that they can get when they religiously pay their contributions,” he added.
SSS was founded in 1957 with 33.33 million registered members at present.
A member’s contribution rate is 11 percent of an individual’s monthly salary not exceeding 16,000. The rate is shared between the employer with 7.37 percent and 3.63 percent from the employee.
Aside from retirement pay at age 65, members can also apply for salary or calamity loans.
Government employees do not contribute to SSS. But they contribute to its counterpart, the Government Service Insurance System.
Sources: Business Inquirer, Philippine Star
- How to Improve Your Forex Trading Skills with Practice and Education - June 1, 2023
- Ultimate Guide to Start a Business in Philippines - May 16, 2023
- How to Build a Forex Trading Plan for Long-Term Success - April 21, 2023