The SSS main office in Quezon City (File photo from the Philippine Daily Inquirer)
MANILA, Philippines – The hike in the Social Security System (SSS) contribution rate to 12 percent will likely be implemented by April or May, the state-run pension fund’s president and chief executive Emmanuel F. Dooc said Monday.
On the sidelines of the public consultation on the proposed implementing rules and regulations (IRR) of Republic Act (RA) No. 11199 or the Social Security Act of 2018, Dooc told reporters that the new Social Security Commission (SSC) will meet on March 14.
When the law takes effect on March 5, the SSC will be chaired by the Department of Finance (DOF) chief, who currently is Secretary Carlos G. Dominguez III.
Under RA 11199, the SSC now has the power to raise contribution rates even without the President’s approval, although the law also mandated a 1-percentage point increase in the contribution rate every two years, until it reaches 15 percent, starting this year.
At present, the contribution rate stands at 11 percent.
As such, this year’s contribution rate increase to 12 percent will be followed by three more 1-percentage point increases in 2021, 2023, and 2025.
Two-thirds of the contribution rate increase will be shouldered by the employer.
With a higher contribution rate, the fund life of SSS will be extended until 2045 from 2032 previously.
To recall, the fund life of SSS was slashed by 10 years to 2032 when the additional P1,000 a month were granted to pensioners since 2017.
Dooc said he’s hopeful that the contribution rate increase will be included in the agenda of the new SSC’s first meeting.
Asked when will be the soonest time to implement the contribution rate hike, Dooc replied: “I hope it will be within the first half of the year. Maybe April or May.”
The SSS has until June 3 to craft and publish the IRR of RA 11199, hence the contribution rate can be increased before June, Dooc noted.
In the case of the contribution rate hike, its IRR will be in the form of a SSC resolution, the SSS chief added.
Meanwhile, Dooc said the SSS was already prepared to accept applications for the one-time, big-time condonation program for delinquent employers beginning March 5 even as its specific guidelines were yet to be issued.
The condonation program will run until September 6.
“There are provisions [of the condonation program] that will already guide us from the law itself, but we need the IRR to address the nitty-gritty, the requirements,” Dooc said. /kga