SSS set to increase contribution by 0.6%
THE Social Security System (SSS) is set to increase the contribution rate by 0.6 percent to extend the fund life and improve benefits for members.
SSS Dagupan Branch Manager Ceasar Saludo said the Social Security Commission, the agency’s governing board, has approved in principle a proposed increase in the contribution rate from 10.4 percent to 11 percent of the monthly salary.
The maximum monthly salary credit, the ceiling that serves as basis for contribution payments, will also go up to P20,000 from P15,000.
“We need to implement reforms, but we don’t want a drastic one-time increase in contribution. We prefer to do it gradually,” said SSS president and chief executive officer Emilio de Quiros, Jr.
If approved, the increase may take effect in July.
EMPLOYER-EMPLOYEE
The 0.6 percent increase will be divided equally by the employer and employee.
The employer share in the contribution will increase to 7.37 percent while that of the employee to 3.63 percent.
The proposed increase would lengthen the fund life until 2046 and result in higher sickness, maternity, disability, retirement and death benefits and bigger short-term loan amounts for members, Saludo said.
Saludo also noted that compared with the 21 percent contribution under the Government Service Insurance System, the insurance agency for public employees, the SSS contribution is still much lower. (SSS/PIA Pangasinan/DOS)
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