Members of the Social Security System (SSS) and their employers will be paying higher social security contributions this year, if the SSS will have its way.
The SSS recently proposed that member contributions be increased by 0.6 per cent from the present 10.4 per cent to 11 per cent of an employee’s monthly salary. It also asked for the expansion of the monthly salary credit ceiling from P15,000 to P20,000.
The proposal has been submitted to the Office of the President for approval.
The higher rate of contributions is needed for SSS to improve the package of benefits to its members, according to Emilio de Quiros, SSS president and chief executive officer.
The proposed increase would be equally shared by employers and workers, de Quiros he explained, adding that employers are receptive to the proposal since they do not see any forthcoming hike in mandated wages.
SSS officials said in a separate report that the Office of the President may approve the proposal within the first half of the year. The hike in SSS premium would also extend its members’ benefits and pension from 2039 to 2049, the report added.
The last increase in the contribution rate by SSS was made in 2007 with a 1-percent adjustment, according to a report.