SSS Will Push for Rate Hike in 2023

The Social Security System will push through with its decision to increase the contribution rate hike by next year, saying that postponing the hike would lessen the actuarial life of SSS.

SSS President and CEO Michael Regino mentioned that the increase in contribution would be implemented at the beginning of 2023.

With the schedule indicated in the Social Security Act of 2018, the contribution rate will go up by 14% from the now 13%.

In the law, the SSS is set to gradually increase the contribution rate by a percentage point every two years until 15% is reached by 2025.

However, the Employers Confederation of the Philippines asked for the postponement of the measure.

“We are duty-bound to implement the provisions stipulated under the law, which aims to ensure the pension fund’s financial viability for the benefit of its members, pensioners, and their beneficiaries,”  mentioned Regino.

With the new contribution rate, the employers are indicated to carry the 1% increase, meaning that their contribution rate would total 9.5% while the 4.5% will be shouldered by the employee.

Regino mentions, “The new contribution rate would help us continue providing benefits to our members. Increasing the SSS contribution has helped us give higher sickness, disability, and death benefit disbursements to our members and their beneficiaries who are affected by the pandemic,”

“It also played a vital role in extending our fund life. Before the Social Security Act of 2018, we expected that our fund life would only last until 2032. But with the reforms brought by the new law, the fund life is now extended until 2054,”

Source: Philstar