The Social Security System’s new charter was signed into law last February 7, 2019, by President Rodrigo Duterte under Republic Act 1119 or the “Social Security Act of 2018” to rationalize and expand the powers and duties of the Social Security Commission.
Under the new Law, They are tasked to ensure in generating more revenue for its members and pensioners. With this newly signed law, there are some increase and changes. To wit:
1. The monthly contributions will gradually increase from the current 11% of monthly salary credits and to increase by 15% by the year 2025 and, allowing to increase the minimum and maximum monthly salary credits.
However, the domestic workers or the “kasambahay” shall pay contributions based on their actual Monthly Salary, if their monthly income is lower than the minimum monthly salary credit.
2. An additional benefit called Unemployment Insurance, where the covered individual may be protected as stated in the provisions under Sec 14-B of RA 11199. That, a member not over 60 years old with at least 36 months’ contributions. 12 months of which in the 18-month period preceding the involuntary unemployment or separations meaning you were displaced due to shall be paid in the form of monthly cash payment equivalent to 50% of the member’s monthly salary credits for a maximum of 2 months. But the involuntarily unemployed can claim these benefits once every 3 years.
3. Compulsory Coverage of the Self- Employed as may be determined by the Commission.
4. Compulsory Coverage of Overseas Filipino Workers provided they are not over 60 years. I guess this is a more significant change in this new law wherein the government giving the OFW’s protection when they retire. I have a sister who is working abroad for almost a decade but not interested in updating her contribution despite the reminder given to her.
5. The law also lowered the penalty rate from 2% to from the current 3%, for late contribution payment and condonation of penalties is not needed.
Labor groups say that law may harm or may affect those covered employees and who are paying. Some believe that there are possible negative effects with this newly enacted law as it may reduce the take-home pay of every covered member.
They also condemned this law because it will give more powers to the members of the commission who cannot or does not protect the interest of the working covered members.
The commission is tasked to issue the Implementing Rules and Regulations after its publication.