The newly approved SSS law will make Overseas Filipino Workers (OFW) a mandatory member of the state run Social Security System. All land and sea based OFW aged below 60 years are covered in the new law as it also hikes up the contributions to 12%.
There are currently 500,000 OFW members of SSS but with this new law it can go up to 2 to 2.5million OFW members and would generate Php16billion in premium collection of contributions.
There will be a 1% point increase of contributions every 2 years making the contribution be 15% by year 2025. With this move, the fund life of SSS will be extended until 2038 from the previous 2032 with pensioners may enjoy their benefits for at least 20 years from now, according to the SSS chief.
In local employment, 2/3 of the contribution will be paid by the employer and the remaining by the employee. The new law will also mandate one time big time condone on anomalous employers within six months.
"The SSS must be given a chance to do what they can for the people because the government could not base its policies on fear but on trusting the people, especially those with tremendous responsibility," according to the author of the law Senator Richard Gordon.
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