Social Security System (SSS) announced that the member contributions will once again increase effective January 2021 as posted in the new schedule below. All members are covered in the new SSS Contribution 2021 including Employers, Employees, Self-Employed, Voluntary, Non-working Spouse, Household employers and Kasambahay.
SSS issued on Monday, December 7 the Circulars 2020-033, 2020-034, 2020-035, and 2020-036 which indicated the new schedule of contribution for members. The increase is in pursuant to the enactment of Republic Act No. 11199 or the Social Security Act of 2018 which provides the increase in the contribution rate to thirteen percent.
The new law also sets the minimum Monthly Salary Credit (MSC) to P3,000 and the maximum MSC to P25,000 effective year 2021. Social Security Commission (SSC) through Resolution No. 578 series of 2020 dated November 4 also said that the new contribution table shall be effective starting January 2021.
These Circulars announce the New Schedule of SSS Contributions 2021 for
For Employers and Employees:
For Voluntary and Non-working Spouse:
For Household employers and Kasambahay:
The increase in member contributions started last year at 12% (from the previous 11%) when the Social Security Act 2018, signed by President Rodrigo Duterte, was implemented. It will be followed by increases to 13 percent next year, 14 percent in 2023, and 15 percent in 2025.
SSS executives explained that the contribution hike will extend its fund life which is now projected to last until 2045.
What do you think of these latest circulars mandating the increase in members’ contribution? While the intent is reasonable, some suggested that the government should temporarily suspend the implementation in view of the current economic struggles experienced by the majority of members due to the ongoing pandemic.
For more information and inquiries on the new members’ contribution schedule for 2021, please visit the official SSS website at www.sss.gov.ph or their social media accounts. Follow Nonoynet.com for more updates on SSS contributions and other government updates.