28
Feb
2014

SSS advises OFWs, self-employed and voluntary members to settle contribution underpayments

The Social Security System (SSS) called on self-employed and voluntary members, including overseas Filipino workers (OFWs), to settle any contribution underpayments to ensure that their monthly premiums for January 2014 onwards are aligned with the new SSS Contribution Schedule.

Underpayments are caused by monthly contributions that were paid in advance and based on the old SSS contribution rate of 10.4 percent and maximum monthly salary credit (MSC) of P15,000. Starting January 2014, the contribution rate has increased by 0.6 percent to 11 percent, while the maximum MSC is now P16,000. Affected members include those who made advance payments prior to the announcement of the new SSS Contribution Schedule – such as self-employed and voluntary members –as well as members unaware of changes in the amount of contributions that took effect starting this year.

Self-employed and voluntary members who paid at the minimum MSC of P1,000 would have an underpayment of P6.00 per month. As for affected OFW-members who paid contributions based on their minimum MSC of P5,000, their underpayment would amount to P30.00 per month.

“Members can settle their underpayments at any SSS branch with tellering facilities, which are open from Mondays to Saturdays, or in any of our accredited local banks. They must use the SSS Form RS-5 and indicate that the amount paid is intended for settling their underpayment for the specified applicable months,” said Judy Frances See, SSS Senior Vice President for Account Management.

Meanwhile, affected self-employed, voluntary and OFW members with payments above the minimum MSC may opt to pay the corresponding increase in contributions to retain the posting of their payments at the same MSC. Otherwise, their contributions will be posted at the applicable lower MSC.

“We advise members to settle their underpayments and put their contribution records in order as early as now to avoid issues arising from ‘out-of-bracket’ payments. Members paying at the minimum MSC, in particular, will have their contributions deemed ‘ineffective’ if they fail to settle the corresponding underpayment that will complete the full amount of the minimum monthly contribution,” See added.

She urged members to strive to pay contributions at higher MSCs to benefit from bigger SSS benefits and salary loans. The MSC, which relates to the amount of the member’s monthly income covered by contributions, serves as a major basis for computation of benefits and loanable amounts.

Members can view the new SSS Contribution Schedule and the SSS Advisory showing the list of underpayment amounts per MSC at the SSS Website (www.sss.gov.ph). Various SSS forms, including the RS-5 Form needed for settling contribution underpayments, are also downloadable from the SSS Website.

– Sigfredo Ibay, sss.gov.ph

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2 Responses

  1. paul davidson says:

    Great article. Thanks for the info, this is really a helpful post. BTW, if anyone needs to fill out a SSS form RS-5, I found a blank form in this link http://pdf.ac/6LAZ5. This site PDFfiller also has several related forms that you might find useful.

  2. thank you for this information. I’m about to settle my loan and contribution thru online banking. good thing i see it before i’ll have dispute.

    mabuhay!

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