SSS shows proposed monthly salary credit cap hike’s benefits
RAISING the monthly salary credit cap as proposed by the Social Security System to P30,000 by 2021, alongside a contribution rate hike, will also increase pension payments moving forward, the state-run pension fund said Sunday.
“The estimated monthly pension of a member with at least 30 paying years will increase to P20,300 from the current maximum pension of P10,900 by 2026, if the coverable income increases to P30,000 in five years as part of the proposed reform agenda,” the SSS said in a statement.
Currently, the maximum monthly salary credit is at P16,000.
“Similarly, benefits such as maternity, sickness, and funeral, which are also computed based on the monthly salary credit, will also increase once the reform agenda is implemented,” the SSS added.
Emmanuel F. Dooc, SSS president and chief executive officer, said part of the proposed Social Security Reform Act of 2017 currently pending Senate approval was an adjustment in the monthly salary credit to P20,000 next year, P25,000 in 2020, and P30,000 in 2021.
“Under the current maximum monthly salary credit and monthly contribution rate of 11 percent (shared by employer and employee for employed members), the maximum basic monthly pension is only P10,900 for a member who retires with at least 30 credit years of service,” Dooc explained.
“With the contribution rate increase and monthly salary credit ceiling adjustment to P30,000, sickness benefit per day of P480 based on the current maximum average daily salary credit of P533 will increase to P900,” he said.
“Likewise, maternity benefits for caesarian delivery will increase from P41,600 to P78,000 while those who will undergo normal birth will get P60,000 from the current P32,000 under the proposed P30,000 maximum monthly salary credit.”
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