Nps-sss Petition Letter

PETITION AGAINST THE SOCIAL SECURITY AGREEMENT BETWEEN THE PHILIPPINES AND SOUTH KOREA We, the undersigned Filipino workers in South Korea, oppose the Social Security Agreement between the Philippines and South Korea. The said Social Security Agreement was signed without proper consultation to all concerned Filipino workers in South Korea. Once approved, the Agreement will take away a major benefit being enjoyed by Employment Permit System (EPS) workers under the National Pension Law of Korea, that is, the 50% employer’s share in their pension contribution. The Agreement will also prevent EPS workers and professionals/special skills from receiving the lump sum refund of their monthly contribution when they leave Korea. They will have to wait until they reach the age of retirement even if they need the refund money for their livelihood when they return to the Philippines. The following table shows the negative effects of the Agreement on the benefits currently being enjoyed by Filipino workers under the National Pension Scheme (NPS) Law of Korea:

NATIONAL PENSION LAW OF SOUTH KOREA

SOCIAL SECURITY AGREEMENT OF PHILIPPINES AND SOUTH KOREA

EPS workers and professionals/special EPS workers are excluded from the coverage skills are covered by the National of the NPS. Professionals/special skill workers Pension System (NPS) of Korea. will continue to be covered.

Employers shoulder 50% of the Employers of EPS workers will no longer workers’ pension contribution (or contribute to the workers’ pension. 4.5% of the workers’ monthly salary/income).

EPS workers’ contribution (9% of their EPS workers will pay their contribution salary, including employers share) is (without employer’s share) to the SSS paid to the NPS. mandatorily under the concept of voluntary membership. Currently, no Philippine law that obliged an OFW to become an SSS member mandatorily so it is a clear violation to our Philippine constitution.

When they leave Korea, workers (EPS, professionals/special skills) receive lump sum refund of their monthly pension contribution.

Workers have to wait until they reach the age of retirement before they can receive the lump sum refund or pension. This includes their contribution to the NPS before the effectivity of the treaty.

In view of its clear disadvantage to the Filipino workers as shown above, we respectfully ask our esteemed senators to reject the Agreement on Social Security between the Philippines and South Korea. We strongly urge the Social Security System and all concerned agencies to renegotiate the Agreement to include EPS workers in its coverage. By doing so, EPS workers will continue to be covered by the NPS while they work in Korea, and their employers will continue to pay their 50% share in the workers’ pension contribution. The renegotiation must also provide an option to all Filipino workers who want to get their lump sum refund when they leave Korea similar to the foreign workers from USA, Canada, Hungary, Germany, and France wherein their respective countries had also signed the same agreement between Korea. Signed this 12th day of October 2008 at 115-9 Songbuk-gu, Songbuk-dong, Songbuk Villa, Seoul, South Korea 136-020. Tel. Nos. (82)10-9294-4365, (82)108688-2059, (82)2-765-0870.

The Undersigned (Please refer to separate sheets)