SSS to wait for tax reforms before hiking dues

ABS-CBN News

Posted at Jun 01 2017 07:45 PM

MANILA - The Social Security System will wait for the proposed tax reform measures to become law before hiking SSS dues. 

The pension fund said that under the tax reform package, income earners can expect a bigger take-home pay, which will ease the burden of higher SSS contributions.

"What we want is the increase in contribution, but we're willing to postpone that to next year," said SSS president and chief executive officer Emmanuel F. Dooc.

"We believe that if the tax reform is approved, somehow, the increase in contribution will be less burdensome for our members," Dooc added.

The SSS contribution rate was supposed to be hiked by 1.5 percentage points to 12.5 percent as early as May this year, after President Duterte approved a P1,000 increase in the monthly pension of retired SSS members. 

Despite the deferment of the contribution hike, Dooc assured that the pension fund's financial standing will not suffer as the SSS has other revenue measures.

The SSS chief also assured that they will not ask the government to subsidize the pension fund following the increase in members' monthly pensions.