The Social Security System, the pension fund for the 68 million private sector workers, is raising its monthly contribution rate to 13 percent from 12 percent, with the bulk of the amount shouldered by employers.
Once the increase is implemented, monthly earners of 24,750 pesos and above would pay monthly premiums of 2,600 pesos. Currently, maximum earners of 19,750 pesos and above pay only 2,430 pesos a month.
The Employers Confederation of the Philippines, an industry group, has called for the postponement of the additional premium, arguing businesses are still struggling to recoup losses from three months of lockdowns. But Finance Secretary Carlos Dominguez, who concurrently serves as SSS chair, did not budge.
Dominguez said, “Any drop in collections may lead to cash flow and liquidity issues. This could endanger the SSS’ ability to provide its members and their beneficiaries with benefits and loan privileges.”