Republic Act (RA) No. 11199, or the Social Security Act of 2018 signed by President Rodrigo Duterte in 2019, allowed the Social Security Commission (SSC) — the SSS’s highest governing body — to jack up contribution rate by 1 percentage point (ppt) every other year starting 2019 until it reaches 15 percent.
Previously, only the President can approve contribution rate adjustments.
The contribution rate hike to 12 percent (from 11 percent previously) which took effect last year will be followed by increases to 13 percent next year, 14 percent in 2023, and 15 percent in 2025.
In peso terms, the SSS will implement in 2021 the mandatory hike in minimum monthly salary credit (MSC) to P3,000 from P2,000 at present, and the maximum MSC to P25,000 from P20,000.
Similarly, Philhealth will increase its monthly contribution rate from 3% to 3.5% in 2021. It will increase the monthly rate by 0.5% every year up to 2024. In 2021, the lowest monthly contribution will increase from 300 pesos to 350 pesos. This will increase to 500 pesos a month in 2024.
Due to the pandemic, many companies and businesses are closing and are not profitable. They are all struggling to survive. Many Filipinos lost their jobs and many became part time or contractual workers in 2020. A lot have to absorb a pay cut due to the reduced work time. I think these two institutions should delay the implementation of their respective monthly contribution increases. We are all struggling to make our ends meet.
We don’t need to increase our monthly contributions if they arrest and imprison all those who plundered and stole the 15B at Philhealth in 2020 and the 145M at SSS in 2018. These crooks should be put behind bars and our hard earned contributions should be returned.
I hope they cancel their planned increases. We are living under difficult and abnormal times. Don’t make your members and the employers suffer from your corrupt practices.
Happy New Year to all!
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