Duterte signs law granting him power to defer SSS contribution hikes

The Social Security Services office in the City of Malolos. Photo by Carmela Reyes-Estrope

MANILA, Philippines — President Rodrigo Duterte has signed into law a bill granting himself the power to suspend increases in contributions to the Social Security System (SSS) for the duration of a declared state of calamity.

In March, under Proclamation No. 929, the Philippines was placed under a state of calamity to contain the spread of COVID-19. The duration of the declaration was then extended for one year starting September 13, 2020 until September 12, 2021 under Proclamation No. 1021.

Last February, the Senate approved Republic Act No. 11548 empowering the president to suspend increases in members’ contributions during times of declared national emergency or state of calamity.

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.

The House of Representatives passed its version of the bill on Feb. 1 while  the Senate approved its counterpart bill on Feb. 22.

The law shall take effect 15 days after its publication in at least two newspapers of general circulation.

EDV