The Social Security System (SSS) urged lawmakers on Tuesday to consider subsidizing the proposed increase in its members’ contributions, as the agency defended the necessity of the adjustment despite calls for its suspension.
During a press briefing at Malacañang, SSS president and CEO Robert Joseph De Claro explained that deferring the contribution hike would negatively impact the agency’s capacity to assist its members, particularly in times of need.
“Kasi ho mas marami ang maaapektuhan kung i-suspend ho nating itong increase na ‘to (Because more people will be affected if we suspend this increase),” De Claro said, emphasizing the importance of additional collections in funding SSS services, such as calamity loans.
He cited that in 2022, SSS disbursed approximately P9.8 billion in calamity loans to help around 500,000 members in disaster-hit areas. Delaying the contribution increase, he warned, would hinder the agency’s ability to provide similar assistance in the future.
Several groups, including lawmakers, have called for the suspension of the hike, arguing that the timing is unfavorable for members still grappling with economic challenges. However, De Claro proposed an alternative: lawmakers could subsidize the planned increase for the benefit of members.
“Baka ho ang ating mga kapatid na mga mambabatas na nag-o-oppose... hindi ba po puwedeng i-subsidize nila para sa kanilang mga miyembro itong dagdag na P190 na dagdag in contribution (Perhaps our fellow lawmakers who are opposing this could consider subsidizing the additional P190 contribution for their members)?” he suggested.
The contribution hike is mandated under Republic Act No. 11199, or the Social Security Act of 2018, which stipulates periodic increases every two years. The rate rose to 12 percent in 2019, 13 percent in 2021, and 14 percent in 2023. The final scheduled increase is set for this year.
“Actually, kami sa SSS, kami ay sumusunod lang sa batas (We at SSS are just following the law),” De Claro said, highlighting the agency’s obligation to implement the provisions of the law.
The SSS remains firm on the necessity of the hike, noting that it ensures the sustainability of the agency’s programs and services for its members.