MANILA – The Social Security System (SSS) on Tuesday called on lawmakers to subsidize its scheduled contribution rate hike on its members’ contribution this year.
SSS president and chief executive officer Robert Joseph De Claro said the self-sustaining social insurance agency is open to sitting down with lawmakers to help cushion the impact of the law-mandated contribution increase on its members.
“Kaysa ipa-suspend natin itong increase na ito, bakit hindi tayo umupo at pag-usapan kung papaano niyo matutulungan ang ating manggagawa by (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,” De Claro said in a Palace press briefing.
De Claro defended the scheduled increase in its contribution rate, saying many would be affected if the adjustment is deferred.
He said the additional collections, pegged at around PHP51 billion, will be used to fund various services offered by the SSS, particularly in granting calamity loans.
Last year, the SSS provided around PHP9.8 billion in loans for calamity-stricken areas, he added.
Several groups, including former SSS President Rolando Macasaet and some lawmakers, have asked the state social insurance agency to suspend the contribution hike.
De Claro said the increase is mandated under Republic Act 11199, or the Social Security Act of 2018, with the first increase taking effect in 2019, raising the rate to 12 percent. In 2021, it rose to 13 percent, and in 2023, it increased to 14 percent.
The final increase is set to take effect this year in accordance with RA 11199.
Contribution hike studied
Meanwhile, Executive Secretary Lucas Bersamin also defended the scheduled hike, noting the increase was “well studied” and that the government should not meddle in the affairs of the social insurance agency.
“Ang mga ganyang increases (increases like that), they are well-studied based on actuarial considerations. Napakahirap na sabihin mo ‘wag kayo mag-increase (It’s hard to say, ‘don’t implement an increase’). We cannot be that arbitrary. We have to recognize that the SSS has a very respected actuary. Meron silang pag-aaral tungkol diyan. If you always meddle in their management in their affairs where they specialize, it may not work. It may even have a negative impact,” Bersamin said in a separate Palace press briefing.
The Palace official even claimed that the proposal to suspend the last tranche of the contribution hike might be politically motivated.
“You must understand kung kanino galing ‘yung call. Kandidato eh (where the call is coming from. It’s coming from a candidate). Si Rolly Macasaet who used to be the President of SSS. I don’t know if that is part of his way of campaigning,” he said. (PNA)