State-run pension fund Social Security System said it will proceed with the planned increase in the monthly contribution rate of its members starting January next year coinciding with the expected implementation of the first package of the government’s comprehensive tax reform program.
SSS president and chief executive Emmanuel Dooc told reporters over the weekend the pension fund would increase the monthly contribution rate by at least 1.5 percentage points next year from the present rate of 11 percent. This would bring the total contribution rate to 12.5 percent.
“Had we implemented the 1.5-percent [increase] this year plus the maximum salary credit increasing it from P16,000 to P20,000, that would have fetched us P23 billion [in] additional contribution this year,” Dooc said.
SSS was supposed to start raising the contribution rate by 1.5 percentage points to 12.5 percent in May, but the fund deferred the decision because of widespread opposition.
“Yes, we will increase [in time with the tax reform implementation],” Dooc said.
Dooc earlier said the agency would wait for the passage into law of the first package of the comprehensive tax reform program so that SSS members would have extra income for higher contribution.