In my recent communications with Mr Emilio De Quiros, President and CEO of the Social Security System (SSS) in the Philippines, he mentioned that SSS has a plan to set up an SSS office in Sydney to be manned by a regular employee from SSS in order to extend SSS services to Filipinos in Australia.
Filipinos in Australia can continue to make SSS contributions under the Voluntary Coverage of an Overseas Filipino Worker (OFW) program. Making these contributions will qualify the member to apply for retirement pension when the member reaches retirement age.
For OFWs and permanent residents in a foreign country, the minimum monthly salary credit is pegged at P5,000.00 with a corresponding monthly contribution of P550.00.
An OFW or foreign resident with an existing SS number can continue paying contributions through SS Form RS-5 where he/she should put a check mark on the box for Overseas Worker and indicate his/her correct SS number.
An OFW or foreign resident who has not been issued an SS number should accomplish and submit Overseas Worker Record (SS Form OW-1) with the original/certified true copy and photocopy of any of the primary or any two (2) of the secondary documents in securing SS number.
The pension policy in the Philippines is more generous compared to other countries. For instance, in the Philippines a member will be entitled to a pension even if the member no longer resides in the Philippines as long as the member has met the minimum contribution requirements usually ten(10) years. The amount of pension is based on the latest monthly salary credit.
The SSS contributions are private in nature and will not be tax deductible in the member’s income tax return.
Mike Alvarez, a CPA and Registered Tax Agent, is the director of QA Audit and Tax Services Pty Ltd, a CPA Practice. He is also an ASIC registered SMSF Auditor, telephone 02 9628 2933.
