One percent hike in SSS premium starts this month

CEBU, Philippines — The Social Security System (SSS) will be implementing starting this month the scheduled one percent increase in the monthly contribution of its members.

SSS-Visayas Central 1 Division regional communication officer Sherwin Dan Solibaga III said that starting this month all members will be charged 13 percent from 12 percent monthly contribution.

Solibaga explained that 8.5 percent will be paid for by the employer and the remaining 4.5 percent will be shouldered by the employee. He said the increase in SSS monthly contribution is provided for under Republic Act 11199 or SSS Act of 2018.

The law allows SSS to implement an increase of one percent every two years beginning 2019 until 2025. According to Solibaga, the one percent hike is equally shared by both the employee and employer.

 In a separate statement, Department of Finance Secretary and Social Security Commission chairman Carlos Dominguez has expressed hope that SSS members would see their higher monthly contributions as their savings and safety net against the future hazards of sickness, maternity, disability, unemployment, old age, death, and other contingencies resulting to loss of income or financial burden for them and their beneficiaries. 

SSS said that the increase in the monthly contribution will ensure the long-term viability of the pension fund and increase the benefits to be enjoyed by its members and their beneficiaries. 

It said the full implementation by 2025 of the restructured rates and other reforms set under the SSS Act of 2018 will offset the financial impact to the fund of the P1,000 increase in the monthly pension of all member-pensioners that was implemented in 2017. 

“Upon full implementation in 2025, the reforms under the SSA of 2018 will offset the adverse financial impact of the P1,000 pension increase granted in 2017,” Dominguez said.

The SSC chairman further said that the restructuring of the SSS contribution rate, along with the minimum and maximum monthly salary credit (MSCs) and the other provisions of RA No. 11199, will ensure the long-term viability of the SSS Fund, expand its coverage and provide more and higher benefits for its current and future members and their beneficiaries. FPL (FREEMAN)