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Increase of SSS Contribution in 2021
« on: January 06, 2021, 09:04:27 pm »
Dear Sir/Madam:

We are writing to inform you that pursuant to the enactment of Republic Act No. 11199, otherwise known as the Social Security Act of 2018 in February 2019, the Social Security System (SSS) shall be implementing a contribution rate hike from the current 12 percent to 13 percent effective January 1, 2021.

This would mean that beginning this year until 2022, the contribution share for all employers will now be set to 8.5 percent, while the portion of your employees' contribution will become 4.5 percent. Both will gain a half-percentage point increase from last year's sharing of 8 percent and 4 percent, respectively.

For regular employers, this translates to an additional P95 in the employer share of the monthly contribution for its employees who fall under the new minimum MSC of P3,000, and an additional P525 in the employer share for its employees who fall under the new maximum MSC of P25,000.

Part of the changes in the contribution rate and MSC ceiling will require those members with active contributions in the regular SSS program, without final claim, and with salary brackets of P20,250 and above, to contribute to the new SSS Provident Fund, called Workers Investment and Savings Program (WISP). Contributions to WISP are integrated into the contributions of the regular SSS program and will also be shared proportionately between the employer and the employee.


WISP, which is also provided for under the Social Security Act of 2018, is a compulsory, government-managed individual retirement savings scheme for SSS members. It is a defined-contribution plan that allows you and your employees to contribute and invest over time to save more for retirement. WISP benefits, paid out in the form of lumpsum or pension payments for retirement, total disability and death survivorship, are in addition to the benefits under the regular SSS program. More importantly, WISP is safe, convenient, tax-free, and is professionally managed following the principles of prudence, care, diligence, and preservation of principal.

Just as it is your duty to deduct contributions from your employees' salaries, please be reminded as well of your legal obligation to pay your proportionate share of contributions (both in the regular SSS Program and WISP), including Employees' Compensation, and remit the correct amount to the SSS within the prescribed schedule of payments.

While these recent developments would require you and your employees to shell out more for SSS membership, please be assured that these measures are put in place to pave way for an enhanced benefits package for our beloved members and a more viable SSS for the future generation. These are savings that members and their families can also rely on in times of unexpected and immediate need.

For your reference, this is the link (https://bit.ly/3rt5oxL) to the New Schedule of Contributions for Employers and Employees starting January 2021. For clarifications, you may call the SSS Hotline at 8920-6445 to 55 or email [email protected] You may also visit the official social media accounts of SSS for updates and information.


Thank you.

SOCIAL SECURITY SYSTEM

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