President Rodrigo Duterte has approved a P1,000 Social Security System (SSS) pension hike for retirees this month, Malacañang announced earlier today.
The contribution rate of members, however, will also increase, from 11 percent to 12.5 percent. The 1.5 percent increase in the SSS contribution will be implemented in May.
SSS Chair Amado Valdez said that the next round of pension increases may be implemented as early as 2019, given the reforms in the agency are successful. The next P1,000 increase is envisioned to be applied in 2022, Valdez said.
The SSS is currently looking to amend its charter.
Meanwhile, SSS President Emmanuel Dooc advised the Congress to create a law that will grant the agency authority to sanction firms which erred in paying its members' contributions.
Former President Benigno Aquino III rejected the House Bill proposal to increase the monthly pension of retirees to P2,000. Aquino explained that SSS would go bankrupt if the monthly pension was raised.
Aquino stressed that the agency would need an additional P56 billion per year to support the P2,000 pension increase of about 2.15 million retirees.
Source: The Philippine Star
Image: SSS | Inquirer
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