SSS bent on raising members’ contributions
THE SOCIAL Security System is bent on raising the contributions of members and their employers by 0.6 percent, shrugging off the concerns of some businessmen toward the proposal.
Emilio de Quiros Jr., president and chief executive officer of the state-owned pension fund for private sector workers, said that the SSS and Employers’ Confederation of the Philippines (Ecop) have already agreed on the proposed increase in contributions.
“As far as we [the SSS] are concerned, we already completed the dialogue with them [Ecop] and the increase has already been formally agreed upon last October,” De Quiros said, referring to the deal with the biggest group of employers in the country.
According to an Oct. 23, 2012 document obtained by the INQUIRER, Ecop agreed to the proposed 0.6-percent increase in contributions from the current 10.4 percent of salaries of employees to 11 percent.
“After consultations with its constituency, Ecop ... agreed to the increase in the contribution rate to 11 percent, effective January 2013,” the document showed.
The document was signed by representatives of Ecop and the SSS.
The contributions, which are meant to support future pension benefits of workers, are shared by the workers and their employers.
Employers shoulder the bigger share of 70 percent of contributions, while workers account for the remaining 30 percent.
Under the proposed 0.6-percent hike in contributions to 11 percent of a worker’s salary, the employer will take charge of 0.3 percent, while a worker will shoulder the rest.
De Quiros said the SSS also agreed to the business group’s request to conduct forums with several companies to ex- plain the rationale behind the proposed hike in contributions.
He said the SSS had already conducted forums, mostly for companies in the business process outsourcing (BPO) industry.
Also, the Trade Union Congress of the Philippines (TUCP), which represents workers, already gave its formal approval on the proposed hike in contributions, de Quiros said.
Legally, the SSS is not required to secure the approval of employers before implementing a hike in contributions, De Quiros explained.
Based on the charter of the SSS, an increase in contribution only requires the approval of the President of the Philippines.
Nonetheless, de Quiros said, the SSS found it prudent to consult employers before submitting the proposal to Malacañang.
The pension fund has the means to implement a hike in contributions, SSS Commissioner Diana Pardo-Aguilar said.
But she said the SSS has made it a habit to consult business and labor groups first before securing the President’s approval in implementing the hike.
“Under our charter, only presidential approval is neces- sary for an increase in contribution in benefits. However, we continue to consult and liaise with major employer and labor groups before making final recommendations to the President,” Aguilar explained.
The SSS does not see any need to ask for another round of dialogue with ECOP, when it recently expressed its reservations on the proposed increase in contributions even after it formally agreed to it, she said.
The SSS will hold on to the formal agreement it made with Ecop in October last year on the issue of increase in contributions, Aguilar said.
Meantime, De Quiros said the SSS is just waiting for the final approval of President Aquino on the proposed 0.6percent increase in contributions.
The SSS is confident the President will approve the proposal, especially after the chief executive already made public his support to the proposed hike during his State of the Nation Address last Monday.