The Social Security System (SSS) advises members who already paid advance premiums to review and update their payments in line with the new contribution rate and maximum monthly salary credit (MSC) that will take effect in January 2014.
SSS President and Chief Executive Officer Emilio S. de Quiros, Jr. said individually-paying members such as the self-employed, voluntary and OFWs who have paid contributions in advance based on the minimum MSC for the applicable months of January 2014 onwards should settle the difference that will result from the new prescribed minimum amount of contribution.
Under the new contribution schedule, the corresponding monthly contribution will be P110 for the minimum MSC of P1,000, P550 for the minimum MSC of P5,000 for OFWs, and P1,760 for the maximum MSC of P16,000.
“The difference between the existing and new corresponding amount of contribution will be an underpayment on the part of the member who has paid in advance. With respect to the revised contribution schedule, a self-employed or voluntary member who remitted a minimum premium of P104 in advance for January next year will automatically incur an underpayment of P6.00 while the prescribed minimum contribution of P520 by an OFW will be short by P30.00,” De Quiros explained.
Advance payments less than the required minimum contribution will not be considered by the SSS unless underpayment is settled. As a result, members with underpayments may face problems availing SSS benefits and services that often require a number of qualifying contributions.
To avoid underpayments, de Quiros said members can go to any SSS branch with tellering facilities or to SSS collecting partners in their area to settle the lacking amount. “All they have to do is to pay the difference using the Contributions Payment Return for SE/VM or RS-5 form and indicate that it is for the underpayments.”
For advance payments above the minimum MSC of P1,000, the SSS chief said members may opt to pay the corresponding increase in contributions to retain the posting at the same MSC.
“If no appropriate adjustment is made, the SSS will post such advance payment at the applicable lower MSC, then the excess in the amount of contribution will be refunded upon the member’s request,” De Quiros said.
The state-pension fund is set to follow the revised contribution schedule next year after President Benigno Aquino III approved structural reforms to improve SSS fund life, increasing the present contribution rate of 10.4-percent to 11-percent, and moving the MSC ceiling from P15,000 to P16,000.