Starting January 1, 2025, Overseas Filipino Workers (OFWs) contributing to the Social Security System (SSS) will experience changes in their contributions under the updated system. The adjustments aim to strengthen the pension fund’s financial sustainability and align with Republic Act 11199, or the Social Security Act of 2018.
Key updates for OFWs:
- The minimum Monthly Salary Credit (MSC) for land-based OFW members will rise to ₱8,000, while the maximum MSC is capped at ₱20,000.
- Contributions falling between ₱20,000 and ₱35,000 will be allocated to the Mandatory Provident Fund (MPF), allowing members to grow their funds through investments.
Breakdown of contributions:
- The updated 15% contribution rate applies to the MSC, with OFWs being responsible for the entire amount as voluntary members.
- For instance, an OFW with a declared monthly income of ₱20,000 will now contribute ₱3,000 monthly under the SSS program. Any contributions exceeding ₱20,000 will be directed to the MPF.
ECP inclusion for self-employed members:
Since September 2020, self-employed members, including OFWs, have been included under the Employees’ Compensation Program (ECP), which offers additional protection for work-related contingencies. Employers contribute ₱10 to ₱30 per employee, depending on the MSC, while self-employed members shoulder the ECP contributions themselves.
Guidance for OFWs:
The SSS advises members who have already prepaid their 2025 contributions to settle any shortfalls to comply with the new minimum MSC. Members are encouraged to review their contributions and take advantage of the investment opportunities under the MPF program.
