Deferment of SSS contribution hike up for Senate plenary deliberation

Senate committees on Tuesday approved the bills calling for the suspension of the increase in the contribution rate of the Social Security System (SSS), which will then be sent to the plenary, in a bid to address the impact of the coronavirus disease 2019 (COVID-19) on business.

In a joint hearing, the Committee on Government Corporations and Public Enterprises and the Committee on Labor, Employment and Human Resources Development discussed three proposed measures seeking to defer the hike to be implemented this month increasing monthly contributions of the SSS to 13% of the salaries of members from the current 12%.

The deliberations took into consideration several bills which mandate the suspension of the contribution rate increase, as well as granting the Philippine President the power to suspend scheduled increases. It is still unclear however, whether the approval on Tuesday included a provision for the President to suspend the hike or it will be made through legislation.

"If the President is the one who is going to make the suspension or deferment, you have more leeway because that's the executive doing their job. Pero if the Senate says suspended right away, talagang medyo kakalog ang SSS. That's just my personal opinion," Gordon told business representatives during the hearing.

"Siyempre kayo, gusto niyo ma-suspended dahil hindi kayo magbabayad, pero dapat kailangan eh preserve... 'Yung mga mamanahin ng tao, ito pine-preserve natin 'yung makukuha ng tao sa SSS pagka nag-retire, pagka namatay, or pagka nawalan sila ng trabaho," he added.

Under the Social Security Act (SSA) of 2018, the SSS has scheduled increases in the monthly contribution of its members, to ensure the long-term viability of the pension fund and increase benefits moving forward.

For its part, the SSS defended the need to increase its contribution rate this year, but its president and chief executive officer Aurora Ignacio said the agency will comply should Malacañang defer the hike.

The SSS is mandated to promote social justice and provide protection to members and families against the hazards of disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden.

President Rodrigo Duterte earlier this month ordered the deferment of the 2021 contribution hike for members of the Philippine Health Insurance Corp. (PhilHealth).

Under its mandate, PhilHealth is tasked to administer the National Health Insurance Program which aims to provide health insurance coverage and ensure affordable, acceptable, available, and accessible health care services for all citizens of the Philippines. —KG, GMA News