Dubai: Filipino expatriates in the UAE and around the world will soon be required to make regular contributions to the state-run pension fund.
The Senate has just approved this week a legislation that will effectively repeal the law on the country’s Social Security System (SSS) and mandate compulsory pension coverage for all overseas Filipino workers (OFWs) under the age of 60.
SSS is a retirement fund to which all government and private sector workers in the country contribute on a regular basis. Among the benefits that members get is a monthly pension upon reaching the retirement age.
However, since the contributions for OFWs are not compulsory, a significant number of Filipinos who have moved abroad have defaulted on their SSS payments.
The Senate approved on the third and final reading this week Senate Bill 1753, or the proposed “Social Security Act of 2018.” The bill was authored and sponsored by Senator Richard Gordon, head of the Senate Committee on Government Corporations and Enterprises.
Gordon said the bill effectively repeals the SSS law or Republic Act 1161 and extends the power of the SSS to ensure the long-term viability of the said system.
With the newly approved bill, Gordon said the SSS coverage of both land-based and sea-based OFWs to the SSS will be compulsory, “provided that they are not over 60 years of age.”
“The bill is an enhancement of the previous laws. It ensures hope that the people would not be a burden to the country, that they are partners of the government not by way of e xaction of taxes but by their contribution so that their welfare is assured,” said Gordon.
“The passage of the bill would expand, protect and increase the SSS fund so that when the time comes, there would be available pension for the people.”