SSS seeks contribution hike in April
MANILA (UPDATE) - The Social Security System (SSS) on Wednesday confirmed it has sought the go signal of President Rodrigo Duterte to raise the members' contribution rate to 14 percent from the current 11 percent starting April.
The higher contribution rate will allow SSS to cushion the impact of last year's pension rate increase on its fund life, SSS chairman Amado Valdez told DZMM.
Members, he said, will not feel the 3-percent contribution hike because two-thirds will be shouldered by their employers.
"Magsi-share ang employer at employee kaya it will not be as much," he said. (The employer and employee will share the hike so it will not be as much.)
Raising the contribution, however, should be the "last resort" to extend the SSS fund life, said Alan Tanjusay, spokesperson of the Trade Union Congress of the Philippines (TCUP).
Agency executives, he said, should instead cut their bonuses and step up contribution collection from delinquent employers.
The TUCP will urge Duterte to reject the contribution hike in a dialogue next week, said Tanjusay.
Presidential spokesperson Harry Roque, meanwhile, said the President has yet to decide on the issue.
"Hanggang 'di nag-issue ng EO (Executive Order) ang presidente eh pinag-iisapan pa rin at pinag-aaralan pa rin ito ng presidente (As an EO has not been issued, the President is still mulling over and studying the proposal)," he said in a statement.
Duterte last year approved a P2,000 pension increase for SSS members, half of which was given in March 2017 while the other half will be paid out by 2022 or earlier.
DZMM, 31 January 2018