Starting April, all land-based OFWs are required to pay at least P960 a month to the Social Security System as part of their mandatory contribution to the state pension.
SSS contribution became mandatory for OFWs when Republic Act No. 11199 or the Social Security Act of 2018 was signed by President Rodrigo R. Duterte last month.
The amended charter requires SSS to provide pension to both land-based and sea-based OFWs.
Sea-based OFWs have long been contributing to SSS, as their manning agencies deduct SSS from their monthly salaries.
But SSS contributions used to be voluntary for land-based OFWs. In UAE, out of estimated 600,000 OFWS, there are only 4,800 who contribute for SSS in 2018.
Under the new charter, SSS contribution should be 12% of the employee’s salary — 8% will be shouldered by the employee, while the remaining 4% will be borne by the employer.
Self-employed individuals should pay the entire 12% or shoulder both the employer and employee contributions.
Senior Vice President and Chief Legal Counsel Voltaire Agas said that for now, land-based OFWs will be treated like self-employed individuals in the Philippines.
SSS hopes that within the first two years of implementation, they would be able to cover 4 million OFWs, and collect P13 billion, according to a report by Business World.
To help ease the burden of OFWs, SSS said they will partner with the Department of Labor and Employment and the Department of Foreign Affairs to negotiate with countries allowing employers of OFWs to shoulder the share of their SSS contribution.
As SSS members, OFWs can get additional benefits in case of sickness, disability and retirement apart from their OWWA membership benefits. There are also maternity benefit, funeral, and death/survivor benefits.
Militant groups had earlier denounced the mandatory SSS contribution for OFWs, saying there was no consultation prior to passing of the new law amending the SSS Charter.
