The Social Security System (SSS) recently defended the scheduled increases in contribution rate, saying it is mandated by law.
“As much that the SSS would like to support the clamor of the public that the intended increase to be deferred, actually we are not going to do that because the basis for such increase is a legislative act,” SSS senior vice president and chief legal counsel Voltaire Agas said.
Under the Social Service Act of 2018, the SSS shall implement contribution rate hike in 2019, 2021, and 2025.
SSS president and chief executive officer Aurora Ignacio said the state-run pension fund will push through with the contribution rate increase from 12 percent to 13 percent starting January 2021.
Ignacio said the minimum monthly salary credit (MSC) will also increase from the current P2,000 to P3,000 starting next year, while also hiking maximum MSC from the current P20,000 to P25,000.
SSS chief actuary Edgar Cruz explained how the rate increase will impact on the members’ contribution to the SSS.
For members with MSC of P3,000, the monthly contribution will increase from P370 to P400 starting January 2021. For those with MSC of P10,000, it will increase from P1,210 to P1,310. For those with MSC of P20,000, contribution will hike from P2,430 to P2,630.