SSS rate hike soon in DU30 hands

The Senate on Monday approved a measure allowing President Rodrigo Duterte to defer increases in Social Security System (SSS) contributions during a declared national emergency or calamity for at least six months.

With 21 affirmative votes, senators passed in third and final reading Senate Bill 2027, otherwise known as Social Security System Increase in Contributions Bill.

It will amend section 4(a)(9) of Republic Act (RA) 11199 or “Social Security Act of 2018,” which allows the Social Security Commission, the governing body of the SSS, to implement the contribution rate increase.

Under Sec. 4(a)(9) of RA 11199, a one percent contribution increase will be imposed on SSS members every two years starting 2019 until 2025.

This means that from a contribution rate of 12 percent in 2020, the contribution rate will increase to 13 percent beginning January 2021.

Senator Richard Gordon, one of the sponsors of the bill, said that the passing of the measure is essential as the country is still reeling from the effects of the pandemic.

Having the mandated contribution increase under RA 11199 is not timely, he said.

“This bill seeks to provide the people with the flexibility to adapt to the pandemic by empowering the President to temporarily suspend or defend the increase in contributions scheduled under RA 11199, so that the people will be able to have financial breathing space to be able to adjust to the ongoing National Emergency,” he said.