Effective January 2021, the Social Security System (SSS) implemented a contribution rate hike.
It’s a 1% hike.
So from 12%, it increased to 13%.
This was in accordance with the law – Republic Act No. 11199
Correspondingly, the SSS issued a new schedule of contributions for employers and employees for this purpose.
The advantage of this contribution increase is of course, members will have additional safety net and savings…
Which means, members and their beneficiaries can make use of these contributions in times of sickness, maternity, unemployment, retirement, disability, death, calamity, and other contingencies…
The good thing is… these contributions are integrated into the regular SSS program contributions…
Hence, they are shared proportionately BETWEEN the employer and the employee (through the Workers Investment and Savings Program [WISP])
So, on top of SSS regular benefits, members or their families will be paid out either in a lump sum or by installments in cases of retirement, total disability, and death survivorship.
However…
Imposing a higher rate to our fellow countrymen under our current extraordinary conditions (i.e., pandemic, reduced wage, unemployment, rising prices of goods)…
Will definitely enforce additional burden to the ordinary (and already cash-strapped) Juan Dela Cruz who has barely recovered from the losses and difficulties brought about by Covid-19.
Due to misgivings regarding the propriety and consequences…
There’s a pending Bill in Congress right now – the House Bill No. 8317 from the House of Representatives which was recently approved by the Senate as Senate Bill No. 2027.
If this becomes a law (once the President signs it), it will authorize the President to suspend the scheduled increase.
What’s your opinion on the matter? Do you think we should suspend the increase in SSS contributions given the present pandemic? Or do you think we should proceed with it given its advantages?
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