A 2022 audit report on the Social Security System (SSS) showed the combined pay of its top executives hit P116.244 million, more than double or 101 percent higher compared to the 2021 total of P57.754 million.
This was revealed in the “notes to financial statements” portion of the report released last month by the Commission on Audit. A copy of the report, which was submitted to the office of SSS president and chief executive officer Rolando L. Macasaet on June 30, can be accessed by the public on the official COA website.
Auditors said those who are considered “key management personnel” of the state pension fund for the private sector are the president and CEO, executive vice presidents, and senior vice presidents.
A breakdown of the total compensation showed they were paid P79.559 million in salaries last year, which was 147.38 percent higher compared to the 2021 figure of P32.2 million.
Other allowances and benefits also rose 43.17 percent year on year, to P36.585 million from P25.55 million.
The Personnel Services expenses of the SSS for 2022 totaled P8.124 billion, or P396.583 million higher compared to P7.727 billion in 2021.
According to the COA, the SSS was authorized by the Governance Commission on GOCCs on June 1, 2022 to implement the Compensation and Position Classification System (CPCS) pursuant to Republic Act No. 10149 and President Rodrigo Duterte’s Executive Order No. 150, s. 2021.
“The increase in personnel services was mainly due to the implementation of the CPCS effective Oct. 5, 2021,” the audit team said.
Other contributory factors were the promotion of 353 employees in 2022 compared to just 104 in 2021 and the one-time increase of “Service Recognition Incentive” to 100 percent from P10,000 to P20,000.
The COA, however, flagged the SSS for continuing allocations for medical benefit package for its officials and employees despite the absence of legal basis.
Auditors said this constitutes additional compensation which is not covered by the CPCS.
“(T)he establishment of their own medical benefit package without the approval from the President of the Philippines, and its continuance despite the effectivity of EO No. 150, s. 2021, is in violation of the explicit provisions of the said EO,” the COA said.
The SSS management said it has already asked the Office of the President for approval of the medical package continuance.
