In the Know: SSS, PhilHealth hikes take effect January

Increases in employees’ contributions to the Social Security System (SSS) and Philippine Health Insurance Corp. (PhilHealth) take effect this January.

The 0.6-percent increase in SSS contributions—from 10.4 percent to 11 percent of a member’s monthly salary credit—was announced by President Aquino on Labor Day last year and approved by Malacañang in September.

At the same time, the ceiling for the monthly salary credit, which is the base for computing the contribution, was also increased from P15,000 to P16,000. The floor salary credit, however, was unchanged at P1,000.

Individuals in the private sector with monthly salaries ranging from P1,000 to P1,249.99 fall under the monthly salary credit of P1,000. With the new SSS schedule, the monthly contribution under this category shall be P110, up from P104. Of the P110 contribution, the employee’s share shall be P36.30 and the remaining shall be shouldered by the employer.

Those with monthly salaries of at least P15,750 have a maximum salary credit, which is P16,000 in the new schedule. This means that contributions of individuals under this category shall be P1,760, up from P1,560. Of the P1,760 contribution, the employee’s share shall be P581.30 and remaining shall be shouldered by the employer.

Late last year, SSS president Emilio de Quiros said that based on estimates, the SSS would be able to continue servicing claims only until 2039 given the fund’s current levels. The increase would lengthen the life of the SSS, allowing it to operate three more years, or until 2042, he added.

The rise in the monthly premium contributions of PhilHealth members was announced as early as 2011. However, public clamor against such increases resulted in the partial deferment until the end of 2013.

In September last year, PhilHealth President Alexander Padilla signed a circular containing the new monthly contributions of those in the employed sector starting January this year.

Under the circular, the premium rate for the employed sector starting this year shall be 2.5 percent and the minimum salary bracket shall be P8,000, up from P7,000. The maximum salary bracket remains at P35,000. The salary bracket is the base for computing the monthly premium contribution.

The adjustments mean that the monthly contribution of a member with a monthly salary of P8,999 and below shall be P200, with half of the amount to be shouldered by the employer. The monthly contribution of a member with a salary of at least P35,000 shall be P875, with half of the amount to be shouldered by the employer.—Ana Roa, Inquirer Research

Sources: Inquirer Archives, philhealth.gov.ph, sss.gov.ph