SSS wants contributions to reach 12.5% of monthly salaries by 2018
Bigger pensions for elders mean higher deductions for current workers.
The Social Security System (SSS) is preparing to introduce a 1.5% hike in monthly contributions among its members in order to fund the P2,000 pension hike which started this year.
SSS Commissioner Emmanuel Dooc said the P1,000 pension hike approved in January should have been followed by the contribution hike in May, but this was deferred amid to 2018 in sync with the expected passage of the lower personal income taxes under the tax reform program.
Now, Dooc is counting on the passage of amendments to the SSS Charter to be able to implement a rate hike without securing Presidential approval. If so, the state pensioner can raise the monthly contributions from 11% to 12.5% by January 2018.
“Had we implemented the 1.5% this year plus the maximum salary credit increasing it from 16,000 to 20,000, that would have fetched us P23-billion additional contribution this year,” Dooc said.
This would effectively extend the SSS fund life to 2051.