SSS defends need to hike contribution rate, but to comply if deferred by Malacanang

Published January 05, 2021 12:43 PM By JON VIKTOR D. CABUENAS, GMA News

The Social Security System (SSS) on Tuesday defended the need to increase its contribution rate for 2021, but said it would comply should Malacanang defer the hike.

During the Laging Handa public briefing, SSS president and chief executive officer Aurora Ignacio responded to proposals to defer the implementation of the contribution hike.

"Marami naman talaga kaming nakaplano na ibigay na benefits ngayon, pati 'yung projected contribution, pero kung 'yan ay isasabatas or imamandato sa amin ng Palasyo at ng Presidente, kami ay susunod," she said.

The SSS is set to increase monthly contributions to 13% from 12% effective January, to ensure the long-term viability of the pension fund and increase the benefits enjoyed by beneficiaries.

A bill seeking to defer

this has been filed by Senator Joel Villanueva, citing the economic challenges brought about by the coronavirus disease 2019 (COVID-19) pandemic.

"Naiintidihan namin ang karanasan ng workers ngayon pati ng small businesses, kaya naman namin alam 'yan dahil nagamit din ang SSS sa pagbibigay ng ayuda nung tayo ay nagbigay ng SBWS na subsidy noon April and May 2020," said Ignacio, referring to the Small Business Wage Subsidy.

"Madami din naman ang nawalan ng trabaho or nagkaroon ng businesses na nagbawas ng tao. Kung ito, apektado rin ang SSS na nabawasan ang contribution na natanggap namin pero 'yung kasing benefits ay hindi nababawasan ito ay lalo pang nadadagdagan dahil kailangan ito ng mga miyembro natin kaya karamihan sa kanila ay nag-aavail ng benefits ngayon," she added.

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.

"Ang total collection na inaasahan natin sa increase na ito ay makakabawas dun sa ine-expect nating contribution ngayong 2021 na dapat ay sumagot sana doon sa mga benepisyo na inaasahan naming papasok na mas malaki sa 2021 kumpara sa 2020," said Ignacio.

On Monday night, President Rodrigo Duterte ordered the deferment of the 2021 contribution hike for members of the Philippine Health Insurance Corporation (PhilHealth).—AOL, GMA News

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