The Social Security System (SSS) Building on East Avenue, Quezon City. INQUIRER file photo / RAFFY LERMA
MANILA, Philippines — The House of Representatives approved on second reading a bill seeking to grant the President the power to suspend the hike in the contribution rate of state-run pension fund Social Security System (SSS).
During Wednesday’s session, the lower chamber approved House Bill No. 8512, which seeks to amend Republic Act No. 11199 or the Social Security Act of 2018 by giving the President the power to suspend the implementation of the scheduled increases in SSS contribution rates in times of national emergencies or when the public interest so requires.
The suspension shall be in consultation with the Finance secretary as ex-officio chairperson of the Social Security Commission.
The Social Security Act of 2018 allowed the Social Security Commission, the highest governing body of the SSS, to increase the contribution rate by 1 percent every other year starting 2019 until 2025.
Thus, from 12 percent last year, the increase in SSS contribution should supposedly be at 13 percent starting January 2021.
On Tuesday, the House approved on second reading a similar measure granting the President the power to suspend the scheduled increases in the Philippine Health Insurance Corporation (PhilHealth) premium contributions.