The Philippines’ Social Security System (SSS) has launched a new, tax-free retirement saving scheme that aims to provide an added later of protection for members.
The Worker’s Investment and Savings Programme Plus or WISP Plus is voluntary and comes nearly two years after the launch in January 2021 of the first WISP, which is compulsory for those earning more than 20,000 pesos (US$361) a month.
Both are on top of the SSS’ regular social security programme, where members have to compulsorily contribute 13% of their total monthly salary, equally divided between employer and employee.
“We have been spearheading the concept of work, save, invest, and prosper to our members. WISP Plus is a programme both for saving and investing. It is an affordable and tax-free savings scheme which will allow our members to save by contributing to the programme and invest because their money will generate earnings,” SSS President and Chief Executive Officer Michael G. Regino says in a statement recently.
“WISP Plus serves as an additional layer of social security protection on top of the retirement benefits that they will receive from the regular SSS programme until their retirement,” he adds.
Minimum contribution to WISP Plus is 500 pesos, with no maximum set. The original WISP has a minimum contribution of 45 pesos with a cap of 225 pesos.
“For as low as 500 pesos per payment SSS members can already contribute to the WISP Plus and pay their contribution anytime. We offer our members investment earnings based on rates higher than those provided by banks,” Regino says.
The SSS, which covers private sector employees and the self-employed, had over 40.5 million members at the end of last year, and 710.43 billion pesos of assets as of end-June 2022.
