OFW (Overseas Filipino Worker) and SSS (Social Security System)

One of my colleagues asks me this question: Is it advisable for an OFW (Overseas Filipino Workers) to continue paying its SSS contribution?

Of course, my reply is a big “YES”.

Why? Because, time will tell us that we will not be working as an OFW (with better compensation) forever. Actually, when we reach our retirement age (in which we could not hardly work or even walk), we will need this additional stream of income to sustain our day to day expenses. Unless, you have an investment that’s worth 10 times of your annual income and a gargantuan savings of 10 times of your annual income, I guess you are exempted from paying your SSS contribution.

If you don’t have those numbers above, you should start contributing now before time runs out. It is true that the pension you will be getting from SSS will not be sufficient to sustain your expenses but it’s better than nothing.

The monthly SSS contribution for Filipino working abroad is a bit higher compare to those working in the Philippines. Anyway, I was shocked to learn that from our group of 15 OFW, only 2 of us were religiously and continuously paying our SSS.

After working more than 7 years abroad, I observed that many OFW were not keen on investing, saving and planning on for their retirement. Actually, it’s hard to resist the luxuries that you see while working abroad. And this is the reason why some OFW return home empty handed.

I was thinking that if POEA instead of just issuing an OEC (OFW Overseas Exit Clearance), will also conduct a Financial Literacy seminar to every Filipinos before going abroad. I think by doing this, many Filipinos working abroad will have an idea on how to manage their finances, save and invest for their future.

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