The hike in the Social Security System contribution is set to rise up to 12%. This will likely be implemented by April or May this year.
The current contribution rate stands at 11 percent. Two-thirds of the contribution rate increase will be shouldered by the employer.
Increase in the SSS contribution has gathered different feedbacks from the citizens. Some said that it is “the last thing SSS should be doing” while others approve of the SSS Hike Contribution.
Under RA 11199, the SSC now has the power to raise contribution rates even without the President’s approval, although the law also mandated a 1-percentage point increase in the contribution rate every two years, until it reaches 15 percent, starting this year.
With the Bayan Mun Chairman and former congressman Neri Colmenares, the SSS hike contribution does not sit well, “This is misleading because not all workers would have increased take home pay because of the TRAIN. In fact, majority of workers would still have the same wages but will have added expenses due to the TRAIN.
He also said that everybody will surely oppose this including employers, the labor sectors, and the SSS members.
If the SSS does its job well and begin improving its collection efficiency and maximizing income from investments, there may not even be a need for an increase in contributions, Colmenares said.
For households with just a single earner, this propaganda could help but not by much. It remains a big question if SSS members will agree to this.