SSS cuts service fees for online transactions

MANILA, Philippines — State-run pension fund Social Security System (SSS) has reduced the service fees for online payment channels and other over-the-counter transactions.

In a recent circular, SSS president and CEO Rolando Macasaet ordered the lowering of service fees charged by SSS-accredited collecting banks and remittance and transfer companies.

This means that pass-on service fees being charged by SSS collecting partners will be lowered and capped at P8 per transaction for online payment channels and at P10 per transaction for over-the-counter payment.

Prior to the circular, banks were charging SSS members pass-on service fees of up to P25 per transaction.

On the other hand, remittance and transfer companies charged pass-on service fees of up to P15 per transaction to SSS members when paying their contributions.

Macasaet emphasized that the fee reduction would significantly benefit members.

The lowered service fees cover the monthly contribution payments of self-employed and voluntary members, overseas Filipino workers, farmers and fishermen, and non-working spouses.

The new guideline also apply to contribution payments of employed SSS members for the Worker’s Investment and Savings Program Plus.

WISP is a mandatory provident fund scheme managed by SSS that serves as another saving platform for private sector workers and other individual paying members.

SSS members are supposed to pay their monthly contributions to the state-run pension fund which in turn are being used for benefits such as retirement as well as other loans under SSS.

The contribution rate is currently at 14 percent of a person’s monthly salary credit, which is being shared at a 9.5:4.5 ratio by the employer and employee, respectively.