MANILA, Philippines — A bill seeking to grant the President the power to defer the increases in contributions of the Social Security System (SSS) in times of declared national emergency or state of calamity has reached the plenary for deliberations.
During Wednesday’s session, Senator Richard Gordon endorsed for plenary approval Senate Bill No. 2027, which seeks to give authority to the President to defer the SSS contribution hike for a limited period of six months.
The deferment can be extended for another six months under the bill.
“I think its important that we do this because we are in the middle of a pandemic and many people have lost their jobs and those who can contribute, certainly are even burdened by a possible increase,” Gordon, chair of the Senate Committee on Government Corporations and Public Enterprises, said.
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 Wednesday, the House of Representatives approved on second reading a similar bill allowing the President to suspend the hike in the SSS contribution rate.
READ: House bill granting President power to suspend SSS rate hike OK’d on 2nd reading
ac