Complete Guide for SSS Provident Fund for SSS Members

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Want to have a tax-free equity and savings option fund investment in the Philippines? Well, now you can, by opening your SSS Provident Fund. SSS has launched their Provident Fund for eligible SSS members wanting to earn money from their investment.

While we work and save money for retirement, inflation also grows and prices keep going up. Often, we wonder if our retirement pension would be enough for our daily expenses in the near future. Because the older we get, the higher will be our cost of living.

What if we can increase our retirement money by adding investment with our social security contribution? Now, it is possible to do that by investing in SSS Provident Fund.

sss provident fund guides for employees, self employed voluntary ofw members

What is SSS Provident Fund?

SSS Provident Fund is a type of investment created to supplement the SSS benefits of members. Your funds are invested on sovereign guaranteed investments, where 65% is allocated for retirement, and 35% is for medical and general purposes. SSS PESO accounts will be charged a 1% administration fee annually.

Who Can Avail SSS Provident Fund?

The Social Security System offers this type of investment fund to the following members:

  • Employees
  • Self-employed
  • Voluntary Members
  • OFW who are interested to open this Personal Equity and Savings Option also called SSS PESO fund

Requirements to Open SSS Provident Fund:

  • Open to all active members – employees, voluntary and OFW, below 55 years old
  • Minimum of P1,000 placement up to maximum of P100,000 per year
  • Self-employed, OFW and Voluntary members must be paying their maximum SSS contribution to qualify for the SSS PESO Fund
  • Redemption is upon the member’s retirement or in cases of total disability. Early redemption is also allowed but there are penalties and service fees involved.

This is beneficial to members because it’s tax free. Maybe you’re wondering how the funds are invested and how they earn income. They are invested on Treasury bills which generates returns over time.

I think that makes them related to money market funds and fixed income instruments. The portion for retirement are invested on 5-year treasury bills while the portion for medical and general purpose are invested on 364-day treasury bills.

SSS Provident Fund Benefits:

  • Savings + investment – the more you contribute to your SSS PESO fund, the more you gain
  • Tax free – unlike other investments, you won’t need to pay sales tax, capital gains tax and withholding tax on this
  • Lower placements – the minimum placement is lower compared to other investments
  • Supplements your SSS retirement benefits – you’ll get pension + your PESO Funds (and its profit)
sss provident fund for employees self-employed voluntary ofw

Disadvantages of SSS Provident Fund:

  • No official online monitoring system or feature yet
  • RTB can’t generate so much income
  • Less risks, less returns
  • Redemption is upon retirement

Hope you like my SSS Provident Fund review here. To learn more, you can read the complete rule about this SSS PESO Fund at the Social Security Law, Section 4 (a) (2).

What are your thoughts on this investment plan? Will you participate on one or would you rather rely on the usual mutual funds such as money market funds and bond funds? Share your views by commenting below.

Other SSS Guides:

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Fehl is the founder of Philpad and has been writing online for 12 years. She has a bachelor's degree in Accountancy and a background in Finance. She is a licensed Career Service Professional and author of a poetry book at Barnes & Noble. In her spare time, she likes to travel and discover new places.

28 thoughts on “Complete Guide for SSS Provident Fund for SSS Members”

  2. good day maam/sir

    mag inquire lng po ako;… nag apply po e1 sa sss ..4 years ago pero hindi ko po nahulugan…pwede ko ba yun hulugan this year? second po,, pwede po ba mag voluntary na lang po? ano po ang process at how much po ba ang mababayad monthly?

    thank you and god bless

    hope for your reply

  3. Fehl,
    Can u also do a review on Pag ibig II provident fund. Appreciate it much when u do. Btw, thank you for the website.

      • Big thanks, Fehl! You have a big heart my dear, let me tell you that. I have been directing some friends to your website. Im not really good into details and Im not good at explaining so your website is of a big help to people like me. If I can influence even one person in my circle to get into the habit of investing, Im very happy already. As a matter of fact, I did influence some of my relationships to invest in UITF and mutual funds and Im very happy with that. Keep the fire burning, Fehl! I got you on this and Im with u. Keep being a light! Love and Light!.. Bella

        • Hi Pretty Bella. Thank you 🙂 You also have a big heart for sharing and helping people how to invest. You’re multiplying blessings. Thank you so much for letting me know you’re with me on this. Happy to know amazing people like you. God bless you always!

  4. Dear,

    i want to continue my SSS contribution but i am working in Saudi Arabia recently. Kindly provide me an assistance and please provide my SSS # because i forgot already.

    regards,

    JNT

  5. hi…po…..ask ko lng pano po ba maka kuha ng UMID SS card ,nawala po kc yung luma ko ss card.at saka, pano po ba ako makaka sali sa online ng sss…OFW po ako now one yr npo ako dto next month po ay unang bakasyon ko po.sana maka kuha agad ako ng iD pag vacation ko at ska yung contribution ko at loan gusto din malaman ….

    • Yes, if active member ka, you can apply for UMID card when you get home in the Philippines. That’s the new SSS ID now. To access your SSS online account, you need to register as a member and you need your latest SSS receipt

  6. hi po ask ko lang nag stop po ako sa work dahil sa nag sara ang business ng boss ko bali stop ako more than 2 years sa pagbabayad ngayon kasi wala akong trabaho gusto ko sanang hulugan ulit bilang self employed ilan po kaya mababayad ko?

  7. Hi Ms Fehl,

    It is clear that the maximum of P100,000 per year, However, what is P1,000 placement? per month? or per year?

  8. Hi Fehl,

    Learned some news that the PERA (Philippine Equity and Retirement Account) might finally be rolled out in 2015. Will this be better than the PESO fund, considering the tax-free benefits and more possible investment options like equity and money market fund?

    Thanks

  9. Hi Ms Fehl,

    I’m an OFW from Saudi Arabia, and wish to know which Bank in the Philippines BUY Saudi Arabian SAR at a Higher Rates..

    Please I need your feedback on this as I wanted to get single cents of my Hard earned money into a good value.

    Many thank and more power!

    Jimmy

    • It’s not too much compared to other investments since earnings are based on Treasury Bills. You’ll get returns higher than time deposits. The great thing bout SSS PESO Fund is the zero tax

  12. Hi Fehl;

    What is the difference of Peso Fund from Flexi fund offered to OFW’s. I am an OFW and currently a member of Flexi Fund as well. In case I wish to avail for Peso fund, how will be the system. Do I need to have another SSS number aside from my regular SSS number. Payment of Flexi Fund is the excess of the maximum monthly contributions to SSS.

    • Submit application form at the SSS personally and start to pay your SSS PESO contribution. Your employer or liaison officer can also assist you. If you’re voluntary member, you can go to SSS and file application.

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