The P2,000 mandatory contribution of Overseas Filipino Workers (OFWs) in the Social Security System (SSS) will start in June 2019! It means that all-land based OFWs are now required to pay at least P2,000 after SSS contribution become mandatory for OFWs.
This is based on Republic Act 11199 or the Social Security Act of 2018 was signed into law by President Rodrigo Duterte last February. Under the law, land-base and sea-based OFWs are required to pay for their SSS contribution.
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. The SSS expect to collect P13 billion during the first two years of the implementation of mandatory contributions.
The figure is much higher than P6.35 billion collection from OFW last 2018 under the voluntary program.
To lessen the burden of OFWs, the SSS said they will partner with the Department of Labor and Employment (DOLE) and the Department of Foreign Affairs (DFA) to negotiate with countries allowing employers of OFWs to shoulder the share of their SSS contribution.
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.
For now, land-based OFWs will be treated like self-employed individuals in the Philippines according to Senior Vice President and Chief Legal Counsel Voltaire Agas where they may have the option to contribute only at the minimum salary credit of P2,000.
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.