informal sector contributions
TAGBILARAN CITY, Bohol (PIA)—With earnings barely enough for subsistence, workers in the informal sector who could barely contribute could be sidled out of the government facilitated social security services, but Social Security System (SSS) is making sure help comes to them.
That help could be from the Contribution Subsidy Provider Program (CSPP), revealed SSS Bohol Acting Head Dioscoro Madanguit during the Kapihan sa PIA recently.
According to the SSS, a nationwide survey they commissioned in 2021 showed that there is a misconception about the SSS among those in the informal economy and last-mile communities.
The misconception was that SSS membership is only for those formally employed.
Another misconception is that, once a member starts his contribution, sustaining and maintaining the correct contribution could make them lose their hard-earned money.
But for the SSS, social security coverage should be inclusive for all Filipinos, be they in the formal or informal sector, thus the campaign.
“The CSPP is initiated by the SSS management to seek sponsorship for the contributions of the workers in the informal sector: individuals, groups, for them to become members,” he explained further.
With the program, the SSS enters into a partnership arrangement with potential contribution subsidy providers among private and government entities, who will pay contributions on behalf of selected self-employed workers, land-based Overseas Filipino Workers (OFWs), and voluntary members of the SSS, for an initial six months.
“This sponsor will give a “seed contribution” for the members, for a minimum period of six months at least, and any individual, groups, associations or any government agencies, they can tie-up with the SSS as contribution subsidy provider. They can commit for any number of informal group members or individuals whom they will sponsor and pay the initial 6 months of contributions,” Madanguit added.
In fact, it the subsidy partner intends to continue with the payments, they can, but for the program, we are campaigning for the initial six months, Madanguit said, meaning benevolent individuals, groups, foundations and even government agencies.
He shared that in Ilo-ilo City, a big company, Double Dragon Corporation sponsored 2,000 individuals for the period of 12 months, instead of just the initial 6 months.
The SSS is looking for any of these potential partners to replicate the practice here, SSS said.
The SSS head went further by saying that if there are benevolent individuals or groups to sponsor, this would be a great help.
He compared the SSS contributions to insurance payments, citing that SSS contribution remains there, whether you put in once a month or just a few times in a year.
In an insurance, the moment you delay or fail to pay, your money could be lost, the SSS official pointed out.
The minimum period of subsidy under the CSPP is six consecutive calendar applicable months.
For six months, a member can already have limited short term benefits including sickness, maternity and funeral benefits.
“Filipino workers need social security institutions such as the SSS to provide them and their families with a layer of protection against the hazards of disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income. We hope that through these two programs, we may be able to extend our benefit and loan programs to those in the informal economy, gig economies, and last-mile communities,” SSS President and CEO Robert Joseph de Claro. (PIAbohol)
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