The Social Security System (SSS) member contributions including land-based overseas Filipino workers (OFWs) will once again increase starting in January 2021. The newest SSS Contribution Table 2021 for Land-based OFW in 2021 details the increase in premiums.
SSS announced that the contribution for OFW this 2021 will increase one percentage point to 13%, from 12% in 2020. This is in accordance with the Republic Act No. 11199 or the Social Security Act of 2018. The additional one percent will be divided equally between OFW and their employers, bringing the contribution rate breakdown to 8.5 percent for their employers and 4.5 percent for them.
The biennial hike in contributions will be until 2025 when the rate will be at 15%. SSS explained that increases are needed to extend the actuarial life of the fund.
Sample Computation of SSS Contribution for OFW
For example, those who will be paying under the P10,000 MSC starting next year will pay a monthly contribution of P1,300. That is P100 higher than the P1,200 in 2020.
Suppose the member is working in a country with a BLA with the Philippines or a sea-based OFW. In that case, the P100 additional contribution will be divided as P50 from their employers for a total employer share of P850 and P50 from them for a total member share of P450.
That law also increases the maximum monthly salary Credit (MSC) to P25,000 but the minimum remains at 8,000 in 2021.
Based on the table, the minimum amount of contribution for OFW is at ₱1,040 while the maximum monthly contribution is ₱3,250 which includes the rate for Mandatory Provident Fund (MPF) Program.
SSS Circular No. 2020-039 dated December 17, 2020 stipulated the new schedule of contributions for all land-based OFW members. The contribution table below reflects the contributions for the regular Social Security and the Mandatory Provident Fund (MPF) Programs administered by the agency.
SSS Contribution Table 2021 for OFW
Advanced payments at lower rate?
Advanced payments at lower rate?
What if you already paid in advance for the applicable months of 2021 at a lower MSC and rate?
Land-based OFW members who have already paid their contributions in advance for applicable months of January 2021 onwards based on the old contribution table are advised as follows:
1. Those with advance payments at the minimum MSC of P8,000 shall settle underpayments amounting to P80 per month to retain the posting of contributions at the same minimum MSC. Otherwise such advance payments shall be deemed ineffective contributions.
2. Those with advance payments at an MCS other than the minimum P8,000 may opt to pay the corresponding increase in contributions to retain posting at the same MSC. Otherwise such advance payments shall be posted at the applicable lower MSC.
“We hope that members see their contributions as their safety net and savings, which they and their beneficiaries can turn to in times of sickness, maternity, unemployment, retirement, disability, death, calamity, and other contingencies, through the benefit programs and privileges the SSS offers,” President and CEO Aurora Cruz Ignacio said.
Deadline for payment of SSS Contributions for OFW
The SSS Circular 2019-12 is still in effect which sets the following deadline for payments of land-based OFW:
For applicable months of January to September of a given year: December 31 of the same year.
For applicable months of October to December of a given year: January 31 of the succeeding year.
The deadline for October to December for this 2020 contributions will be on February 1, 2021.
Payment may be made on the next working day in case the deadline falls on a Saturday, Sunday or holiday. Otherwise, late payments shall be applied prospectively.
You may check this post for SSS Contribution Tables 2021 for Employed, Kasambahay, Voluntary Members and Non-working Spouse HERE.
Please follow the SSS website at www.sss.gov.ph, Facebook page at the “Philippine Social Security System,” Instagram account at “mysssph,” Twitter feed at “PHLSSS,” join the SSS Viber Community at “MYSSSPH Updates,” or call the SSS hotline at 1455 for more information and inquiries.
SSS Iloilo City branch is located at corner JM Basa and Mapa Streets, Iloilo City Proper. Satellite offices are also open in GT Plaza mall in Molo and Robinsons Place Iloilo.