On my first blog of the year 2017, I would like to discuss about the most common OFW contributions and obligations that we need to settle at home (for me Philippines) to avoid penalties or missed contributions. It is now time to catch up on our payments or contributions.
Please note that this blog is intended for OFW’s and if you want details for regular and other members please visit the correspondence government agency website link.
These are the following:
- Philhealth – or the Philippine Health Insurance Corporation was created in 1995 to implement universal health coverage in the Philippines. It is a tax-exempt, government-owned and government-controlled corporation (GOCC) of the Philippines, and is attached to the Department of Health. Its stated goal is to ensure a sustainable national health insurance program for all.
- SSS – or the Social Security System is a state-run, social insurance program in the Philippines to workers in the private,professional, and informal sectors. SSS is established by virtue of Republic Act No.1161, better known as Social Security Act of 1954. This law was later amended by Republic Act No. 8282 in 1997. (Wikipedia)
- Pag-Ibig Fund – or the Home Development Mutual Fund (HDMF) is a Philippine government owned and controlled corporation under the Housing and Urban Development Coordinating Council responsible for the administration of the national savings program and affordable shelter financing for Filipinos employed by local and foreign-based employers as well as voluntary and self-employed members
- Real Property Tax – is a levy on property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; in the Philippines it is to be paid to the City or Municipality.
I do pay Philhealth since it helps a lot for my family’s medical emergencies especially for hospitalization. Individually paying members including OFW’s are given an option to pay on a quarterly, semi-annual or annual basis.
The premium or contribution of an individually paying members and OFW’s are as follows:
- Per quarter – 600 Pesos
- Semiannually – 1200 Pesos
- Yearly – 2400 Pesos
The deadline of quarterly payments is the last working day of the quarter being paid for. Thus, all payments within the quarter shall be applied on the same quarter within which the payment is made.
Deadline of payment for semi-annual or annual shall be on the last working day of the first quarter of the applicable semester or year
This information are derived from the Philhealth circular, Click this link to view the circular – Circular No. 27 Series of 2010.
I am also religiously paying my SSS contribution quarterly but sometime I missed some quarters because I forgot. As of today I am up to date on my contributions. I know that my SSS contributions will help me in my retirement years.
The latest schedule of contribution is shown below. Note for OFWs, the minimum monthly salary credit is pegged at P5,000.
OFW payment of contributions for the months of January to December of a given year may be paid within the same year; contributions for the months of October to December of a given year may also be paid on or before the 31st of January of the succeeding year.
If you have SSS Loan, payment should be made monthly in accordance with the prescribed schedule of payment which is according to the 10th digit of the SS ID/Number.
For more details on your contributions, visit the SSS Website.
According to RA 9679 at Implementing Rules and Regulations all OFW’s must be a member of Pag-Ibig. OFW contribution collected at POLO OWWA is usually equivalent to 100 Pesos per month but we can add if you want to avail of higher loan amount and higher return.
OFW contribution deadline are as follows:
- For monthly payments – on or before the 10th day of the month following the applicable month
- For quarterly payments – on or before the 10th day of the month following the applicable quarter
For more information on OFW contributions, Click this link – Pag-Ibig Q&A.
For OFW’s how owns a property in the Philippines, do not forget to pay for the Real Property Tax. Real Property Tax (RPT) is a tax that owners of real property need to pay every year so that the local government unit (LGU) will not auction off their property. Penalties or possibly loss of property if you missed payment but there are generous discounts if you pay early.
You have the option to pay the annual Real Property Tax in full or in four equal installments (quarterly), which is on or before the last day of every quarter of the year.
Payment deadlines are as follows:
- 1st quarter on or before March 31
- 2nd quarter on or before June 30
- 3rd quarter on or before September 30
- 4th quarter on or before December 31
Talking about discounts, do you know that we can enjoy tax discounts? If you pay in advance, you can get up to 50% discount on your tax depending on you city/municipality.
In our municipality in Cainta, we enjoy 20% discount if you pay early.
I know that these are all expenses but if we pay it regularly and in time we could benefit from this in the future. As an OFW, I take this an opportunity of having the ability to pay these contributions and avail of discounts if any.
How are your payment contributions?
Prosperous Happy New Year to everyone!