Who loves making social security payments? I’ll go ahead and guess that more eyebrows than hands were raised in response to this question. But despite what many of us may think, social security isn’t just a synonym for “income tax.” It’s a system designed to protect us from worst-case scenarios that unfortunately happen all the time, plus a few ordinary and even happy life changes. If all goes well, we will all grow old one day, and many of us will build families. We need to create a safety net for times when our ability to work cannot ensure a steady income.
When writing the post “How to Build a Better Life Back Home With Online Money Transfer Solutions,” we made sure to include a specific section dedicated to social security payments. That’s because they are critical for our financial future and well-being. Many countries have such a system in place, and each region may offer different payment terms, benefits, and regulations. Let’s take a look at some of them.
The German system includes five pillars: sickness insurance, which covers short-term health problems; long-term care insurance, accident insurance, pension, and unemployment. Both employees and employers make social security contributions based on the employee’s insurance coverage and income.
The Social Security System (SSS) covers sickness, permanent disability, involuntary unemployment, maternity leave, retirement, and death and funeral expenses. Some cases, like work-related accidents, are also covered by a different law that offers additional compensation. The SSS also addresses local disasters and offers calamity loans for flooding and earthquakes. A new act recently made it possible for active SSS members to receive additional benefits if they chose to make higher contributions. To qualify for SSS payments, members must complete at least 120 monthly contributions.
Rewire Philippines customers can make SSS contributions directly via the app. The process is easy, quick, and doesn’t involve any fees. This will help migrant workers maintain their active status in their origin country and prepare for a comfortable homecoming and retirement.
The UK’s social security system includes The National Insurance Scheme, which supports those who pay National Insurance contributions and offers benefits in the case of sickness, retirement, unemployment, death of a partner, and more. In addition, the National Health Service offers various medical, optical, and dental treatments and is available to everyone, free of charge. Employees and employers pay a certain percentage of the employee’s pay above the primary threshold. Self-employed people who earn above the Small Earnings Exception also pay a certain percentage of their earnings.
As you can see, there are certain similarities, as well as a few differences between each system. Citizens need to study the social security system in their country of origin and residence to learn all about their duties and rights. Saving for a rainy day requires responsibility, financial planning, and a little research. If you want to learn more about Rewire’s social security payments, contact us, and we’ll be happy to help make your financial future better.