Another law that President Rodrigo R. Duterte has signed is the Social Security Act of 2018.
This new law will allow the state-owned social insurance firm Social Security System (SSS) to gradually increase monthly premium contributions of members, mandate the coverage of overseas Filipino workers and provide insurance to SSS members who involuntarily lose their jobs.
Based on the final measure approved by the bicameral conference committee, the new law will implement a 1 percentage point a year increase in monthly contributions.
From the current 11%, monthly contributions will reach 15% of the monthly salary credit by 2025. There will be a corresponding gradual adjustment in the minimum and maximum monthly salary credit.
The new law will also provide unemployment insurance to SSS members.
“Under the proposed measure, displaced workers will get a financial assistance from SSS in the form of cash equivalent to half of their average monthly salary credit for two months,” SSS President and Chief Executive Officer Emmanuel F. Dooc had said in a previous statement.
SSS currently provides maternity, sickness, disability, retirement, death and funeral benefits.
The measure also rationalizes the powers of the Social Security Commission, the policy-making body of the SSS, and allows it it expand the investing capacity of the pension fund. This is seen to improve the fund’s income.
The new law will cover OFWs. Dooc said SSS currently covers only about 550,000 out of the estimated 10 million migrant workers.
President Duterte has also signed the rice tariffication law. (Ventures Cebu)