MANILA — President Rodrigo Duterte has approved a law allowing the Chief Executive to defer increases in contributions to the Social Security System during the state of calamity due to the COVID-19 pandemic, based on a document that Malacañang released on Thursday.

Duterte approved Republic act 11548 that gave the President of the Philippines, upon the recommendation of the Social Security Commission, the power to suspend the 1-percent increase in contribution rates and monthly salary credits of the SSS.

The law stated that this privilege will be effective “for the duration of the state of calamity” that Duterte declared last year through Proclamation 929, and extended until this September through Proclamation 1021.

Earlier, the SSS said it was mandated by another law to hike its monthly contribution rate to 13 percent starting this year, increasing the monthly contribution of members by about P70 per month.

SSS Chairman and Finance Secretary Carlos Dominguez had said the rate increase would secure the long-term viability of the pension fund, and expand coverage and benefits for members and their beneficiaries as provided for under the Social Security Act of 2018.

"Any drop in collections may lead to cash flow and liquidity issues. This could endanger the SSS’ ability to provide its members and their beneficiaries with benefits and loan privileges," he said.

Some lawmakers said the rate hike was untimely as the COVID-19 pandemic left businesses struggling to survive and millions jobless. They instead urged the SSS to improve its collection scheme to raise its pension fund.

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