Manila, Philippines - SSS members will expect a 12% hike contribution rate this 2019, the move would replenish the fund's life of the agency by next six years.
Following to President Rodrigo Duterte's signing of the Social Security System (SSS) Rationalization Act, will allow to improve the agency investing capacity and generate more revenue for members and pensioners.
SSS members will be charged of one percent increase annually starting this year until, from the current rate of 11% will gradually fill up to 15% by 2025. This year's contribution hike will followed by three more 1-percentage point increases in 2021, 2023, and 2025.
At least two-thirds of the contribution rate increase would be shouldered by the employer. The measure will also offer assistance to SSS members who will encounter employment crisis or other problems.
Higher contribution rate, the SSS's fund life will be extended until 2038 - meaning, members and pensioners can still enjoy their benefits for at least 20 more years, SSS president and chief executive Emmanuel F. Dooc told the Daily Inquirer.
It can be recalled that SSS's life span was slashed by 10 years due to previously P1000 additional were given to pensioners starting 2017.
The new SSS law also seeks mandatory compulsory membership among overseas Filipino workers (OFWs). At present, at least 500, 000 OFWs are covered and they are seeking to hit the target to 2.5 million members.
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