SSS eyes higher premium contributions by April or May 2019

MANILA, Philippines — State-run Social Security System (SSS) is eyeing to raise premium contribution of its members by April or May this year, a top official said yesterday.

In an interview, SSS president and chief executive officer Emmanuel Dooc said the state fund is hoping to implement within the first half of the year a one-percentage point increase in members’ contributions, as provided for under Republic Act 11199 or the Social Security Act of 2019. 

“I hope it will be within the first half of the year. Maybe April or May,” Dooc told reporters on the sidelines of public consultations on the Social Security Act in Quezon City.

He warned that a delay in the implementation of the provision could negatively impact on the financial status of the SSS.

“(Delaying it) would also have an impact because we have prepared our financial projections based on that. It’s supposed to be January, in the law it’s January 2019 but there was a setback,” Dooc said.

But he clarified the law requires implementing rules and regulations (IRR) before its provision on contribution hike could be implemented.

He said the SSS has begun drafting the IRR and is just gathering more inputs from stakeholders.

“As long as we are done with the public hearing, we will have it (the IRR) approved by the (Social Security) Commission and then we will publish it for the information of all concerned,” the SSS chief said.

“Once we have published it, maybe we’ll wait for 15 days and then we can implement it,” he added.

Under RA 11199, the SSS monthly contribution – currently at 11 percent – will be raised by one percentage point every two years starting this year, until it reaches 15 percent in 2025.

The law also provides for gradual adjustment of the minimum and maximum monthly salary credit.

Dooc earlier said this measure is estimated to raise P31 billion in additional premiums for SSS this year and expand the viability of the state fund until 2045. 

Dooc said SSS also seeks to immediately implement the law’s provisions on members’ benefits, including a condonation program for delinquent members and employees.

He said the SSS is prepared to accept applications for condonation starting today.

“We are prepared to accept applications. We made sure that applications will be made available. We will still process them anyway,” he said.