Senate OKs bill granting president power to suspend SSS contribution hike on 2nd reading

MANILA, Philippines — The Senate on Monday approved on second reading a measure that would grant the president the power to suspend the increases in contributions of the Social Security System (SSS) in times of declared national emergency or state of calamity.

Senate Bill No. 2027 was passed during the plenary session. The proposed measure seeks to authorize the president to hold off the SSS contribution hike for a limited period of six months.

The deferment could be extended for a further six months.

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.

Last Feb. 1, the House approved a similar measure giving the president the power to suspend the hike in the contribution rate of SSS.

READ: House passes bill authorizing President to defer SSS premium increases

Earlier Monday, the lower chamber looked into the financial condition of SSS. During the hearing, SSS president and chief executive officer Aurora Ignacio told lawmakers that deferring the scheduled contribution hike would “bring more difficult times” for the state-run pension fund.

READ: Deferment of premium hike to ‘bring more difficult times for SSS’ — exec

In an earlier hearing, Ignacio also disclosed that SSS stands to lose over P41 billion worth of contributions if the scheduled increase in contribution rate is shelved.

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