Members of the Social Security System may have to add to their monthly contributions as the SSS is poised to increase the contribution rate soon.
According to a report on Unang Balita on Tuesday, the SSS was supposed to implement the hike in contributions in May.
However, this was deferred so it can be implemented when the tax reform package of the Duterte administration is passed into law. With that law, the take-home pay of workers is expected to be increased.
Emmanuel Dooc, president and chief executive officer of SSS, said the company has to be realistic and that revenues have to be increased.
With the planned 1.5 percent hike in contribution rate, members will have to pay P15 to P240 more monthly.
The contribution will be split between the employer (two-third) and employee (one-third).
Those receiving P10,000 salary a month will have to pay P150 more in monthly contribution—P50 to be shouldered by the employee, and the balance to be shouldered by the employer.
Those with a maximum salary credit of P16,000 will have to pay P240 more in monthly contribution—P80 to be shouldered by the employee, and the balance to be shouldered by the employer.
Self-employed employees, however, will bear the increase in contribution by themselves.
The SSS is also proposing to increase the maximum monthly salary credit from P16,000 to P20,000.
The company said it has to increase contributions after the fund life of the SSS became shorter following the P1,000-pension hike in 2017 and the additional P1,000-pension hike in 2022.
The SSS is also studying the possibility of giving members additional benefits, among them an unemployment benefit and an expanded maternity benefit.
These additional benefits will be funded by the additional contributions of members and other investments of the company.
The SSS will also ask Congress to approve the proposed amendments to its Charter which would give the company the power to set contribution rates without having to seek the President's approval. —KG, GMA News