SSS plans to hike members' contributions to 11% of salary

MANILA, Philippines - The Social Security System (SSS) is eyeing to implement this year its plan to raise the contribution rate to 11 percent of a worker’s monthly salary credit (MSC) from the existing 10.4 percent.

In a press conference yesterday, SSS president and chief executive officer Emilio De Quiros Jr. said that an increase in the contribution rate would also mean higher benefits for members.

De Quiros said part of the reform programs is to increase the contribution rate and the desire is to do it this year. The pension fund is now talking to members including employers to explain the plan so that it may be implemented this year.

The ultimate goal is to raise the contribution rate to 15 percent but De Quiros said this would be done gradually. “It’s something we need to look at gradually like every year or every two years,” De Quiros said.

He said that increasing the contribution rate would enable SSS to provide more meaningful benefits to its members.

One goal is to increase pensions received by retired members by at least 10 percent, de Quiros said.

The higher contribution rate would be split between the employer and the employees, he said.

He said the increase is minimal and would help ensure more benefits for members when they retire.

The last time the SSS raised its contribution rate was in January 2007, shared by both employer and employee.

Aside from raising the contribution rate, De Quiros said SSS also plans to increase the amount of the maximum monthly salary credit or MSC to more than the prevailing ceiling of P15,000.

At present, the minimum and maximum MSC brackets are P1,000 and P15,000, respectively. “We’re planning to increase this to P20,000,” De Quiros said.

He said the increases are meant to improve the benefits received by members.

Benefits include different retirement benefits. A monthly pension is applicable to SSS members who have contributed for at least 120 months, has 60 years old and is not in gainful employment or self-employment or those who have reached 65 years old.

SSS retirees also receive 13th month pension and dependents’ pension for each minor child who is no more than 21 years old conceived prior to retirement, but not exceeding five. Those who are of retirement age but not qualified for pension benefits are given a lump-sum amount equal to total contributions paid plus interest earned.

Members are also entitled to disability benefits. A monthly pension is provided in the case of permanent total disability for members who have at least 36 monthly contributions. 

Death benefits, meanwhile, are given to beneficiaries of deceased SSS members with at least 36 monthly contributions. His or her primary beneficiaries are eligible to the monthly pension, including the 13th month and dependents’ pensions.

In their absence, secondary beneficiaries get lump-sum benefits equal to 36 times the monthly pension amount. Beneficiaries, either primary or secondary, of a deceased SSS member who has not paid the required contributions also receive a lump-sum amount.

Other SSS benefits include sickness and maternity benefits.