Senate committee approves bill giving Duterte authority to defer SSS hike

MANILA, Philippines—The Senate Committee on Government Corporations and Public Enterprises on Tuesday (January 26) approved a Senate bill that will grant President Rodrigo Duterte the authority to defer or suspend the Social Security System (SSS) contribution rate hike.
Under Senate Bill 1970, the Chief Executive can suspend the implementation of the SSS contribution hike during a national emergency or state of calamity for six months.
While the SSS administration acknowledges the bill, it reiterated the need to implement the contribution hike this year.
SSS President and CEO Andrea Ignacio said delaying the implementation might have a negative effect on the government’s financial situation.
“Delaying this implementation of any reform will worsen an already dire financial institution. The new contribution schedule in the SSS Charter is a long overdue reform. SSS has increased its pension benefit 25 times while it adjusted contribution rate only 8 times to date,” he said.
He added that SSS would not have enough budget to pay their pensioners for the next 30 to 40 years. However, Ignacio said they will not force unemployed individuals to pay.
“We acknowledge that the contribution hike will add a little burden to our employers and workers but, at the same time, the fact is we are asking for this hike only to those who are able to do so. The employers who are operating and the workers that still have their jobs,” he said.
Meanwhile, Senator Joel Villanueva and committee chairperson Senator Richard Gordon said the contribution hike will further burden the citizens, especially during the pandemic.
“Iyong may trabaho at may negosyo, sa halip na hindi na natin sila i-burden out, bibigyan pa natin sila ng additional burden na isipin (Those with jobs and business, instead of easing their burden, we are giving them an additional burden they have to think about),” Villanueva said.
“Lalala ang situation, baka ang mangyari masyadong hirap na. Talagang dapat tingnan natin kung anong gagawin natin to alleviate their pain (The situation might worsen. We should look for ways on how to alleviate their pain),” said Gordon.
Under Republic Act 11199 or the Social Security Act of 2018 the contribution hike for this year will increase by 13% and 15% by 2025. -AAC (with reports from Harlene Delgado)