Last Updated on April 13, 2017 by Marie Bautista
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| A photo by Stuart Miles via freedigitalphotos.net |
Unless
you have been living under a rock, you would have heard about the Social
Security System’s (SSS) increase in members’ contribution by 0.6 percent
starting January next year in order to reduce its unfunded liability and extend
the state pension fund’s life by four more years or up to 2043.
you have been living under a rock, you would have heard about the Social
Security System’s (SSS) increase in members’ contribution by 0.6 percent
starting January next year in order to reduce its unfunded liability and extend
the state pension fund’s life by four more years or up to 2043.
It made me wonder if Robert
Kiyosaki was right in claiming that the ”Social Security is one of the biggest Ponzischemes of all. For Social Security to work, money is taken from young
people and given to the old.” He went
as far as saying that the Social Security “will soon fail as all Ponzi schemes
do. This is why most young people expect
to see aliens from outer space before they ever see a Social Security check.”
Kiyosaki was right in claiming that the ”Social Security is one of the biggest Ponzischemes of all. For Social Security to work, money is taken from young
people and given to the old.” He went
as far as saying that the Social Security “will soon fail as all Ponzi schemes
do. This is why most young people expect
to see aliens from outer space before they ever see a Social Security check.”
Which I
think may also be happening to the Philippines’ SSS. Continue giving large bonuses to officials
for attending two meetings (and justifying that the previous administration kept those large bonuses secret while this current one is more transparent and that they used to be from the private sector and deserved to be paid something equivalent to what the employees of the same status in the private sector is paid is sickening. It has been three years na. Stop blaming the previous administration already. Try telling that to the professionals of government agencies who are paid way lower than a janitor of a GOCC. They chose public service, for crying out loud. How dare they demand to be paid like their private counterparts! ok. rant over), and the employee of today might have a hard time
getting their pensions when they grow old. It may be possible that they are paying the retirees with the contribution of the current members (I do fervently wish and pray that the members’ money is being used wisely and not used on paintings which a former GSIS official thought was a good investment).
think may also be happening to the Philippines’ SSS. Continue giving large bonuses to officials
for attending two meetings (and justifying that the previous administration kept those large bonuses secret while this current one is more transparent and that they used to be from the private sector and deserved to be paid something equivalent to what the employees of the same status in the private sector is paid is sickening. It has been three years na. Stop blaming the previous administration already. Try telling that to the professionals of government agencies who are paid way lower than a janitor of a GOCC. They chose public service, for crying out loud. How dare they demand to be paid like their private counterparts! ok. rant over), and the employee of today might have a hard time
getting their pensions when they grow old. It may be possible that they are paying the retirees with the contribution of the current members (I do fervently wish and pray that the members’ money is being used wisely and not used on paintings which a former GSIS official thought was a good investment).
Since the SSS contribution is mandatory, every member should know how their contribution is computed. Here is a blow-by-blow on how.
If you
are a private employee who is 60 years old and below, a household-helper
earning at least PHP1,000.00, a Filipino seafarer, a foreign government
employee, a parent, spouse or child below 21 years old of the owner of a single
proprietor, a self-employed individual, there is probably no way you can escape paying SSS
contributions. It is compulsory.
are a private employee who is 60 years old and below, a household-helper
earning at least PHP1,000.00, a Filipino seafarer, a foreign government
employee, a parent, spouse or child below 21 years old of the owner of a single
proprietor, a self-employed individual, there is probably no way you can escape paying SSS
contributions. It is compulsory.
The least
you can do is to check if your SSS contributions are being deducted correctly. It
is absolutely necessary that you should know how much SSS contributions you
have made.
you can do is to check if your SSS contributions are being deducted correctly. It
is absolutely necessary that you should know how much SSS contributions you
have made.
Here is how you compute your SSS Contributions.
Illustration: B is an employee of Mr. J, earning a monthly
salary of PHP 14,500.00.
salary of PHP 14,500.00.
Questions:
- How much
will Mr. J deduct from B’s salary as Employee’ Contribution (EE)? - How much
will Mr. J’s Employers’ Contribution be (ER)? - How much
is the total SSS Contribution that Mr. J should remit to SSS?
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| Source |
- B’s
Employee Contribution is PHP 483.30. - Mr. J’s
Employer’s Contribution is PHP 1,034.70 - Total SSS
Contribution Mr. J should remit to the SSS is PHP 1,518.00
For Self-employed (SE) persons, Voluntary Members (VM) and
Overseas Filipino Workers (OFW), their total contribution is determined by
simply looking at the last column (SE/VM/OFW Total Contribution) of the
schedule based on their monthly salary /earnings credit range. If you are
self-employed earning P50,000.00 a month, your SSS contribution is PHP1,560.00.
Overseas Filipino Workers (OFW), their total contribution is determined by
simply looking at the last column (SE/VM/OFW Total Contribution) of the
schedule based on their monthly salary /earnings credit range. If you are
self-employed earning P50,000.00 a month, your SSS contribution is PHP1,560.00.
Effective January 2014, using the new schedule of SSS
contributions, B’s Employee Contribution on a salary of PHP 14,500.00 is PHP 526.80,
Mr. J’s Employer Contribution is PHP 1,078.20, and the total contribution Mr. J
is going to remit to SSS is PHP 1,605.00.
If you are a self-employed, voluntary member or OFW earning PHP
50,000.00 a month, your SSS contribution will be PHP1,760.00
contributions, B’s Employee Contribution on a salary of PHP 14,500.00 is PHP 526.80,
Mr. J’s Employer Contribution is PHP 1,078.20, and the total contribution Mr. J
is going to remit to SSS is PHP 1,605.00.
If you are a self-employed, voluntary member or OFW earning PHP
50,000.00 a month, your SSS contribution will be PHP1,760.00
NEW SSS CONTRIBUTION TABLE EFFECTIVE JANUARY 2014
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| SOURCE |
The additional 0.6% in the contribution rate shall be shouldered equally by the Employer (ER) and Employee (EE) who shall pay at 7.37% (from 7.07%) and 3.63% (from 3.33%), respectively. Self-employed, Voluntary Members and OFWs shall pay the total rate of 11%. 
i've once read that too from robert kiyosaki about social security being similar to a ponzi scheme… that increase in contribution for next year is surely an added burden to members. i just hope the contributions are managed well…
I don't really know the story behind the increase. But for me, it's okey if they increase the contribution depending on the monthly income of the employees as long as para mas malaki na ang pension pag dating 60y.o like in GSIS. As far as i know, at present that the maximum pension is only up to 15k per month.
So this means that my SSS contribution deduction will increase next year. hehehe.
I am just worried about the news that they gave millions of pesos as performance bonus to SSS employees.
Fascinating subject… even though all those numbers made my eyes glaze over. 🙂 I attended an event with Robert a few years ago and he was very funny. Ponzi scheme? Who knows… 🙂
Elizabeth
Im only a voluntary member b4 i pay only 324 a month then after a how many months they said it will be increast my monthly contribution then this year another increast and now i have to pay more than 500….i cant complant cz im not in phil.