Hike in SSS contribution still needs implementing rules

CEBU, Philippines — State-run Social Security System (SSS) clarified yesterday that the contributions rate increase under Republic Act 11199 or the Social Security Act of 2019 will not be implemented today, March 5, 2019, contrary to recent media reports.

The SSS management, in a statement, said the law will take effect today but will still wait for the approved and published Implementing Rules and Regulations (IRR) for the proper implementation of the law, especially on its new features.

Based on the published copy of the law, the Social Security Commission (SSC) is given not more than 90 days after its effectivity or until June 3 to draft and publish the IRR.

“The commission shall promulgate the necessary rules and regulations to implement this Act not later than 90 days after its effectivity,” Section 30 of the law reads.

SSS held a public forum in Cebu last Friday to discuss among the stakeholders the provisions of the law in line with the drafting of the IRR.

The new law, RA 11199, repealed RA 1161 as amended by RA 8282, mainly aims to strengthen the pension fund through its salient features, such as the rationalization of the powers of the Social Security Commission and the policy-making body of the SSS, allowing it to expand the investing capacity of the pension fund to generate better income for the benefit of its members and pensioners.

The law is also expected to generate additional funding for the pension fund as it imposes the implementation of the gradual increase of monthly contributions from the current 11 percent to an additional 1 percentage point starting on the year of implementation until it reaches 15 percent in 2025, and the gradual adjustment of the minimum and maximum monthly salary credit.

Further, under the revised SS law, members will enjoy an additional benefit from the current six types with the introduction of unemployment insurance. Covered qualified employed individuals who may suffer from involuntary separation from work, will be protected from a sudden loss of income as the law has a provision for unemployment insurance.

“This is a huge success for the pension fund. This new law will breathe in new life to SSSso that it can continue to serve its stakeholders, members, and pensioners. And we sincerely express our gratitude to President Duterte for acknowledging the long overdue need for this amendment and signing this into law,” SSS President and Chief Executive Officer Emmanuel Dooc said in a separate statement.

Under the new law, he said, displaced workers will get financial assistance from SSS in the form of cash equivalent to half of their average monthly salary credit for two months.

At present, SSS members are covered with sickness, maternity, disability, retirement, funeral, and death/survivor benefits.

The law also provides protection for the growing number of Filipinos working abroad as it made social security coverage of Overseas Filipino Workers (OFWs) mandatory.

“Filipinos who work outside the country are more prone to risks as they are engaged in unfamiliar environment while they are trying to earn for their family. Our goal here is to ensure that all OFWs will be protected under the SSS,” Dooc said.

The newly-signed law also lowered the penalty rate for late payment of contributions to two percent from the current three percent, and condonation of penalties will no longer require Malacañang’s approval under the law. (FREEMAN)