PUBLISHED: 28 Nov 2024 at 06: 16
The Social Security Board anticipates that once the process for calculating this amount has been changed to what it is intended, Social Security subscribers will get more income and compensation give.
According to the board, the committee wants to change the method in order to promote justice and to encourage more people to listen under Area 39 of the social protection law.
People who voluntarily continue making contributions after leaving their positions in the private sector can have a safety net provided by this section of the Social Security Fund ( SSF).
To be eligible, an entity must have been insured under Section 33 which covers company personnel. They must also have been unemployed for no more than six times and have contributed at least for twelve.
The table will meet on December 11 to explore new benefits for covered people, including the new annuity calculation formula and the expansion of unemployment insurance coverage, which the subcommittee is responsible for studying the novel calculation method.
” The information on that approach is now available, and it will be useful for social security users”, Mr Sustarum said.
According to the proposed update, the pension amount paid to those who are insured by Part 39 should be determined based on how long they have been employed by the company.
Based on the average monthly earnings for the past 60 months of workers ‘ employment, the latest method is used to determine the income amount.
According to Mr. Sustarum,” the fresh approach is fairer and the social security users are entitled to a larger income.”
Additionally, the new approach does improve compensation pay.
Now, the compensate comes from 50 % of 180 days worth of average daily income. Under the new estimate, the pay amounts to 60 % of 270 days worth of ordinary daily income.
The subcommittee has finalized the updated estimates, which are awaiting board members ‘ approval.
According to Mr. Sustarum, employees of the company who retire at age 55 have the option of choosing Part 39.
He added that the system may be burdened more financially by the new calculations.
The Social Security Office would need to spend one billion dollars annually to protect the increases in compensation give and income, but the organization still has a solid budget, according to him, with annual contributions of 200 billion dollars.
According to Mr. Sustarum,” It wo n’t only not weaken the SSF, but it’s also going to entice more people to subscribe to Section 39 because of the larger offers in severance pay and pension.”
He claimed that many people had previously resisted enlisting because they believed the returns were insufficient.
” But where there is justice, more people did join”, he noted.