Senate ratifies bill granting President power to suspend SSS rate hikes

The Senate on Wednesday ratified the bicameral conference committee report on the measure seeking to grant the President the authority to suspend the scheduled increases in the contribution rates of the Social Security System (SSS) in times of national emergency or calamity.

During its last day of session before the Lenten break, the chamber approved the bicameral report on the disagreeing provisions for Senate Bill 2027 and House Bill 8512 on empowering the President to suspend scheduled SSS rate increases.

The measure seeks to amend the Social Security Act of 2018 providing for the gradual increases in the monthly premium contributions of SSS members.

The Social Security Act of 2018, which was passed to ensure the long-term viability of the SSS' fund life, mandates a 1% increase in the contribution of its members this year, bringing the monthly contribution rate to 13%.

Under the measure, the President, in consultation with the Secretary of Finance as ex-officio chairperson of the Social Security Commission, may suspend the implementation of the scheduled increases in SSS contribution rates in times of a state of calamity.

Senator Joel Villanueva, co-sponsor of the bill, earlier said the postponement of the contribution hike would ease the burden of employees, employers and businesses amid the economic impact of the COVID-19 pandemic.

"Our proposal is not a prescription for bankruptcy as we are made to believe by a few people. This temporary hold in SSS premium hike in the name of compassion will not sink the SSS. It will remain financially buoyant," Villanueva said.

"Yes, there may be a momentary dip in income but it is not and will never be an irreversible disaster," he added.

Apart from this measure, the Senate is also deliberating the bill allowing the President to suspend the scheduled increases in the PhilHealth contribution rates. -NB, GMA News