Social Security System (SSS) president and chief executive officer Robert Joseph de Claro does not see any additional increase in the premium contributions of its members in the near future, saying the one percent hike in contribution that took effect this January would be the last of such adjustment.
De Claro said in a briefing in Malacañang yesterday the latest contribution hike is in adherence to Republic Act (RA) No. 11199, or the Social Security Act of 2018, and would be the last tranche of the adjustments which started in 2019.
De Claro said the one percent adjustment raised the contribution rate to 15 percent from 14 percent, as well as the minimum monthly salary credit (MSC) to P5,000 from P4,000, and the maximum MSC to P35,000 from P30,000.
De Claro said the adjustment will help extend the fund life of SSS by 28 years or until 2053.
The SSS also expects additional collections to reach P51.5 billion, 35 percent of which or P18.3 billion going to the Mandatory Provident Fund accounts of SSS members.
The additional fund would also enable the SSS to support the national government in times of difficulty, such as in granting calamity loans, as well as expand the benefits provided to the members such as higher benefits during sickness, among others.
“More people would be affected if we suspend this increase,” De Claro said, as he acknowledged the call of some groups including lawmakers to suspend the contribution hike which comes on the heels of the series of calamities that hit the country.
Only an amendment in the law could stop or suspend the implementation of the contribution hike, he added.
De Claro urged lawmakers to consider subsidizing the increase for the benefit of SSS members instead of calling for a suspension.
“Instead of suspending the increase, why don’t we sit down and discuss how we can help our workers by) entering into an agreement with SSS on a contribution subsidy program, which is open to all,” he said in Filipino.
Executive Secretary Lucas Bersamin, in a separate briefing, said Malacañang would seriously study the suspension of the hike, if it is “officially brought to us.”
Bersamin said the public should give the hike a chance since it has been thoroughly studied and programmed for a long time.
De Claro, meanwhile, said SSS has been able to reduce the reported P89 billion in uncollected contributions from employers that was flagged by the Commission on Audit (COA).
He said the COA report covered several years, including those during the pandemic when most businesses struggled to continue operations.
As of October 2024, the uncollected contributions were down to P46 billion and the SSS continues to review the sources of the discrepancies, he added.
De Claro also said based on SSS’ figures, only about three percent of the current contributors and employers are delinquent and that SSS continues to go after them.
A 2023 COA report said the SSS collected P4.581 billion in 2023 which is only 4.89 percent of the P93.747 billion collectibles for that year.
