Social Security Act of 2018: Will OFWs gain from it?

Social Security Act of 2018: Will OFWs gain from it?

In February 2019, President Rodrigo Duterte signed the Social Security Act of 2018. The new law states that:

1.  It will be compulsory or mandatory for all OFWs.

 2.  It will be obligatory for all OFWS both land Based and sea based, new hires and “balik-mangggawa to pay monthly SSS contributions.

3.  OFWs are included in the increment of monthly premium from 10% - 12% (2019) à 15% (2025).

According to draft implementing rules and regulation (IRR)

OFWs are required to pay before leaving in order to acquire OEC.

All OFWs are obliged to pay to SSS the sum of PhP 2,400 for land based or      PhP 800 for sea based

Balik manggagawa are obliged to pay 3 month contribution (PhP 7,200) before returning to work

“employers of land based OFWs will shoulder 8% of the premium in host-countries with bilateral agreement with the Philippines”

THIS IS PROBLEMATIC!

Even if bilateral agreements with host-countries exists, the extractions from employers is a failure, what so abroad. Employers in most European host-countries are already paying cpntributions for Social Securities of OFWs, that will double their burden.

HEAVY BURDEN FOR OFWs ABD THEIR FAMILY

P2,400 is no mean-sum for Domestic helpers who are majority of OFWs who earn only $400/monthly

P2,400 would represent:

-monthly tuition of a child                                                                                                                                               -monthly utilities bills (water, electricity, internet) for a family.                                                                    -one month of groceries for the family                                                                                                                                 -one sack of rice                                                                                                                                                               -one or two weeks food allowance of an OFW.                                                                                                     –a month internet ubscription and/or                                                                                                                 -a week rental for living-out OFWsgovernem

It is just right to maintain the èast system of voluntary OFW msmbsdship

Increase the benefits, not the premiums

 If the true aim of the government is the welfare and well.beinf OFWs and other sectors of citizenry, instead of contributionincrease and expansion of the scope, the SSS and the governmeny should focus on:

Upgrading the benefits like the promised addition of P1,000/month to pension and a more strict collection from employers

                                                                                                                                                                                The obligatory SSS P2,400/month  OFW obligatory contributions is an unjust burden    

                                                   The SSS inefficiency on collecting from employers should not be shouldered by 

       the OFWs

There are enough funds to increase the benefits

Our calls:

No to the implementation of P,400 and return to voluntary SSS membership for OFWs!

Upgrade the collection ability from employers and regain the uncollected contribution from delinquent employer, instead of 1% monthly premium increase!

Provide government subsidies to cover the neceary èension increase!

March 2019

150a Ermin Garcia St. Brgy E. Rodriguez, Cubao, Q.C.

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