Following plans to increase the contribution rate of Social Security System (SSS) members, the company announced that its looking to implement the hike by April this year.
Currently at 11 percent, the membership contribution rate will be raised to 14 percent once the increase has been approved.
To make this possible, the company is asking President Rodrigo Duterte’s to issue an executive order mandating the hike by April this year, said SSS president and chief executive officer Emmanuel Dooc.
The state fund forwarded their request in a written letter to the President through Department of Finance (DOF) Secretary Carlos G. Dominguez III.
He said that pursuing the President’s approval, also suggested by the Finance Secretary, “will be a faster way” to have this implemented.
The agency is also waiting for the approval of the amendments to their charter, currently pending in Congress, which is another approach to ratify the hike.
“Our prayer is to get this approved by the President and for us to also get it approved by the Commission so we can implement it starting April”, the SSS chief told reporters Tuesday.
Also part of the proposal is raising the minimum and maximum salary credit of members, from P1,000 to P4,000 and P16,000 to P20,000 respectively.
Dooc also said that the plan will also bring “more or less P45 billion in additional contribution revenues starting April to end of this year”, which the possible increase in members and employers would also contribute to.
It is also expected to expand the fund life up to 2044 from the current 2032, he added.
Earlier, Dooc explained that the reason for the proposed 3 percent raise was because the supposed 1.5 percent yearly hike beginning May 2017 was not implemented.
The raise“ will improve the finances of the system and enable us to meet the financial obligations, including the pension benefit hike”.