outbrain
Close  

Higher contribution rate hiked SSS net income 446% to P15.3B in H1

By: - Reporter / @bendeveraINQ
/ 03:39 PM August 20, 2019

MANILA, Philippines–The first-half net income of the state-run pension fund Social Security System (SSS) jumped 446 percent to P15.3 billion as the faster rise in revenues boosted by the higher contribution rate since April outpaced the increase in expenses, including the bigger pension benefits to retirees.

The SSS’s latest condensed statement of comprehensive income showed that its end-June net income climbed from only P2.8 billion a year ago.

ADVERTISEMENT

Its six-month revenues grew 21 percent to P116.7 billion from P96.8 billion during the same period last year.

First-half service and business income rose to P113.8 billion from P95.9 billion a year ago; gains, up to P2.8 billion from P705.7 million a year ago; and other non-operating income, up to P114.1 billion from P101.3 million a year ago.

FEATURED STORIES

Meanwhile, the SSS’s first-semester expenses rose by only 8 percent to P101.4 billion from a year ago’s P93.9 billion.

Benefit payments to members and pensioners increased to P95.7 billion, up from P88.6 billion a year ago.

Other expenses for personnel services, maintenance and other operating expenses, financial expenses, and non-cash expenses during the January to June period also inched up year-on-year.

In 2018, the SSS reversed the previous year’s drop in net income, posting a 12-percent growth in bottom line on the back of improved collections.

To recall, the SSS’s net income of P20.3 billion in 2017 slid 37 percent from 2016’s P32 billion as it implemented the additional P1,000 monthly pension approved by President Duterte.

Under Republic Act (RA) No. 11199 or the Social Security Act of 2018 signed by President Duterte this year, the monthly contribution rate of SSS members was hiked by the Social Security Commission to 12 percent, to followed by three more 1-percentage point increases in 2021, 2023 and 2025 until it reaches 15 percent. /jpv

ADVERTISEMENT
Read Next
EDITORS' PICK
MOST READ
Don't miss out on the latest news and information.
View comments

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: Business, local news, Philippine news update, social security, SSS
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2020 INQUIRER.net | 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.