MANILA – Senate Minority Leader Aquilino Pimentel III on Monday expressed his support for calls to immediately suspend the planned hikes in Social Security System (SSS) contribution rates, questioning its impact on members’ benefits.
Private school teachers recently expressed their grievance on the 14 percent to 15 percent SSS contribution increase, saying it will reduce their small take-home pay amid high price of goods and additional expenses.
“I agree with them. The increase in SSS premium contributions does not lead to increases in members’ benefits,” Pimentel said in a statement.
The senator also called for greater transparency from SSS management, particularly regarding bonuses given to high-ranking officials.
“SSS should be fully transparent on the bonuses that they give to their bigwigs. The performance of the board as well as the funds must be audited and assessed — judged by the members themselves,” he said.
Former SSS chief Rolando Macasaet likewise called for the temporary suspension of higher contribution rates.
In a statement on Saturday, Macasaet said the SSS had an income of over PHP80 billion in 2023 and a banner year of over PHP100 billion for 2024.
He also said the SSS did not contribute a single centavo to the Maharlika Investment Fund.
Pimentel stressed the importance of accountability, urging SSS to open its financial management processes to public scrutiny.
“The SSS should be fully transparent with their members,” he said.
Republic Act (RA) No. 11199 or the Social Security Act of 2018 mandates the SSS to increase its contribution rate every two years, with the final increase in 2025.
In 2019, the contribution rate was set at 12 percent.
It rose to 13 percent in 2021 and increased to 14 percent in 2023, in accordance with RA 11199. The rate will be shared by the employer and the employee.
For the 15 percent contribution rate this year, 10 percent will be shouldered by the employer, while the employee pays the remaining 5 percent.
The higher rates are made to strengthen the SSS, according to its official website. (PNA)