New law to increase SSS contributions | Inquirer Business

New law to increase SSS contributions

By: - Reporter / @bendeveraINQ
/ 07:21 AM February 17, 2019

President Rodrigo Duterte has signed the Social Security System (SSS) Rationalization Act to allow the SSS to improve its investing capacity and generate more revenue for members and pensioners.

It provided for a gradual increase in monthly contributions to make it 15 percent by 2025 from the current 11 percent.


It also allowed the gradual adjustment of minimum and maximum monthly salary credits.

The increased contributions would start this year.


SSS president and chief executive Emmanuel F. Dooc said the additional collection would replenish the SSS fund in six years.

Dooc said the SSS would immediately craft the law’s implementing rules and regulations.

The new law provided that the Social Security Commission, the highest policy-making body of the SSS, may collect the higher contributions without the President’s approval.

At least two-thirds of the contribution rate increase would be shouldered by the employer.

With higher contributions, the SSS fund would be extended until 2038. This meant members and pensioners can enjoy benefits for 20 more years.

The SSS fund life was slashed by 10 years when an additional P1,000 in monthly pension was given starting in 2017.

Dooc said the new law “will strengthen our fund life.” —With a report from Julie M. Aurelio

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Emmanuel F. Dooc, Rodrigo Duterte, Social Security System, SSS contributions
For feedback, complaints, or inquiries, contact us.

© Copyright 1997-2021 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.