Palace defends SSS premium hike

Malacañang on Wednesday defended the impending increase in members' contributions to the Social Security System (SSS), saying it will benefit its members eventually.

"The reason why we're increasing the premium is for people to continue to enjoy the pension and also the benefits and availments you can have as SSS contributor if you are an SSS contributor," presidential spokesperson Edwin Lacierda said during a press conference at the Palace.

He issued the statement after it was reported that the SSS will increase the contributions by 0.6 percent starting January 2014, raising the monthly rate from 10.4 percent to 11 percent of a member's salary.

Lacierda said this increase will ensure that the SSS will continue to be viable.

"Sa kahuli-hulihan ang magbebenipisyo niyan ay ang ating contributors dahil kung 'di natin dagdagan ang premium lalaki po ang unfunded liability ng SSS, mahihirapan mag operate po ang SSS," he said.

In his fourth State of the Nation Address (SONA), President Benigno Aquino III also said that a 0.6-percent increase in contributions would help cut the liabilities of the SSS. — BM, GMA News