Mandatory Provident Fund in SSS
Mandatory Provident Fund in SSS is a mandatory savings program of the SSS that will start this January 2021. It will be mandatory for those earning a monthly income of 20,250 pesos or more.
Mandatory means sapilitan, or required. Ito ay mandatory para sa mga members earning 20,250 pesos or more per month.
It's also now called Workers’ Investment and Savings Program or WISP.
Ito ay investment at savings kasi makukuha mo ang lahat na inipon mo under WISP or MPF kapag nag-retire ka na, kasama na ang dividends earned.
Kung tutuusin, maganda naman itong Mandatory fund. Kasi mapipilitan kang mag-save. In fact, meron nang ganitong program ang SSS noon pang 2014. It's called PESO Fund or Personal Equity and Savings Option (PESO) Fund. Pero itong PESO ay voluntary (kung gusto mo lang) at para lang sa mga nagbabayad ng maximum contributions at sa mga less than 55 years old.
Meron lang mga nagrereklamo against sa Mandatory Provident Fund or WISP kasi nga naman madadagdagan ang deductions sa panahon ng pandemic na kelangang-kelangan natin ang pera. Para naman sa mga employers, gusto nilang i-defer ang contribution increase kasi malaki rin ang nawala sa kanila dahil sa effects ng pandemic. Sabi nga nila, umutang na nga raw sila para lang maibigay nila ang 13th month pay ng kanilang mga employees.
Going back to the Mandatory Provident Fund or WISP, ito ang mga monthly contributions for the WISP, starting January 2020, for members earning 20,250 or more monthly.
Monthly Contributions under Mandatory Provident Fund or WISP
| Range of | Regular | Mandatory
| TOTAL |
| Income | Contributions
| Provident Fund | Contributions |
| | | or WISP | |
| | | Contributions | |
| |
| 20,250 - 20,749.99 | 2,600 | 65 | 2,665 |
| 20,750 - 21,249.99 | 2,600 | 130 | 2,730 |
| 21,250 - 21,749.99 | 2,600 | 195 | 2,795 |
| 21,750 - 22,249.99 | 2,600 | 260 | 2,860 |
| 22,250 - 22,749.99 | 2,600 | 325 | 2,925 |
| 22,750 - 23,249.99 | 2,600 | 390 | 2,990 |
| 23,250 - 23,749.99 | 2,600 | 455 | 3,055 |
| 23,750 - 24,249.99 | 2,600 | 520 | 3,120 |
| 24,250 - 24,749.99 | 2,600 | 585 | 3,185 |
| 24,750 - Over | 2,600 | 650 | 3,250 |
What's the Difference Between Regular Contributions and Mandatory Provident Fund or WISP Contributions?
Ang Regular Contributions ay magiging basis ito ng amount ng retirement or death pension or amount ng short-term benefits like salary loan, maternity benefit, sickness benefit or disability pension benefit or amount ng funeral benefit.
Ang Mandatory Provident Fund or WISP Contribution ay sarili mong ipon. Magmula sa una mong MPF or WISP contribution hanggang sa huli mong MPF or WISP contribution, ito-total ito plus yong mga annual earnings at makukuha mo lahat ito when you retire. Puede itong lump sum, puede ring monthly payouts, or combination of lump sum and monthly payouts. I am expecting na maglalabas later on ang SSS ng additional information about this. Posible na i-adopt din nila yong isang feature ng PESO na merong option na iwidro nang mas maaga ang konting bahagi ng total WISP savings for emergency purposes.
Is the Mandatory Provident Fund or WISP of SSS similar to the mandatory savings program of Pag-ibig Fund?
Kapag i-compare natin, yes, similar sila, kasi pareho silang savings programs. Ang difference lang is solo yong mandatory savings program ng Pag-ibig, walang kahalo. Yong sa SSS, nakahalo ang pagbayad ng MPF or WISP sa regular SSS contributions. Yong sa Pag-ibig, solo siya. Meron din silang optional savings program called MP2, pero ito ay hiwalay sa regular savings program nila.
Can I pay the SSS Mandatory Provident Fund or WISP separately from my regular SSS Contributions?
No. Pay the Mandatory Provident Fund or WISP together with your regular SSS contributions. Hindi puedeng hiwalay ang pagbabayad.
What's the annual earnings rate for my SSS mandatory savings?
It will depend on total annual earnings from investments of MPF or WISP funds. SSS will invest these funds in sovereign guaranteed investments. Certainly, the annual earnings rate will be much higher than savings rates offered by banks.
Are my MPF or WISP savings plus annual earnings tax-free?
Yes. Tax-free. Guaranteed by the Philippine government.
Paano kung gusto ko ring mag-ipon sa MPF or WISP kahit lower than 20,250 pesos ang earnings ko per month?
Dati, merong sinabi na optional ang MPF or WISP para sa mga members earnings less than 20, 250 pesos per month. Let's see kung anong sasabihin nila pag ilalabas na nila yong final rules para sa MPF or WISP.
Do you like to know more about the SSS PESO Fund or Personal Equity and Savings Option (PESO) Fund?
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