MANILA – Overseas Filipino workers, self-employed and voluntary members are urged to settle their contribution underpayments with the Social Security System to ensure that monthly premiums for January 2014 and onwards are aligned with the new contribution schedule.
Underpayments are caused by monthly contributions that were paid in advance based on the old contribution rate of 10.4 percent and maximum monthly salary credit (MSC) of P15,000.
But the rate has increased by 0.6 percent to 11 percent in January 2014, while the maximum MSC is now at P16,000.
Affected members are those who made advance payments prior to the announcement of the new SSS Contribution Schedule, as well as members unaware of changes in the amount of contributions that took effect starting this year.
"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.
OFWs, 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.
Likewise, affected OFWs, self-employed, and voluntary 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.
Members can view the new SSS Contribution Schedule and the SSS Advisory showing the list of underpayment amounts per MSC at the SSS Website. Various SSS forms, including the RS-5 Form needed for settling contribution underpayments, are also downloadable from the SSS Website.