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Malacañang keeps tabs on SSS contribution hike
“The Palace, the Office of the Executive Secretary is closely monitoring the decisions being made by SSS,” Presidential Spokesperson Harry Roque said in a virtual presser on Monday. (PCOO file photo)
MANILA – Malacañang is keeping tabs on the Social Security System’s (SSS) plan to push through with the scheduled increase in its contribution rate from 12 to 13 percent this month.
“The Palace, the Office of the Executive Secretary is closely monitoring the decisions being made by SSS,” Presidential Spokesperson Harry Roque said in a virtual presser on Monday.
Roque acknowledged the plight of SSS members who are affected by the coronavirus disease 2019 (Covid-19) pandemic, but noted that the increase in contribution rates is necessary to sustain operations of the SSS.
“Ang tinitingnan diyan is ano iyong kinakailangang rate para maging viable pa rin ang buhay ng SSS (What we are looking it is what is the rate needed to make operations of the SSS viable),” he said.
“Alam natin ayaw nating magbayad nang mas mataas na premiums pero kung mawawala naman iyong benepisyo natin kung kailan kakailanganin natin ang SSS benefits eh masasayang din iyong pagtayo ng SSS (We know that we don’t want to pay higher premiums but if we don’t, creation of SSS would go to waste),” he added.
In 2019, President Rodrigo Duterte signed Republic Act 11199 or the Social Security Act of 2018 which allows the Social Security Commission, the SSS governing body, to increase its contribution rate by 1 percentage point every other year starting 2019 until it reaches 15 percent.
The law extends the SSS fund life, currently projected to last until 2045.
The contribution rate increased to 12 percent (from 11 percent previously) which took effect last year will be followed by increases to 13 percent next year, 14 percent in 2023, and 15 percent in 2025.
The SSS had to push for measure amending its charter and allowing the SSC to hike the contribution rate after its fund life was slashed by 10 years to 2032 when an additional PHP1,000 a month were given to pensioners starting in 2017.
However, the SSS delayed collection of members’ contributions amid the prevailing pandemic.
Last week, the Philippine Health Insurance Corporation (PhilHealth) announced that it will push through with the collection of higher monthly premiums, which will rise in the new year by 0.5 percent. The present contribution is 3 percent of monthly income.
Under Republic Act 11223 or the Universal Health Care (UHC) law, those who have a monthly basic salary of PHP10,000 and below will have a fixed contribution of PHP350 a month starting January 2021. Those earning PHP10,000.01 to PHP69,999.99 have a monthly premium between PHP350 to PHP2,449.99. Meanwhile, those earning PHP70,000 and higher per month will pay a fixed rate of PHP2,450 monthly.
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