The Office of the President is studying a proposal to defer the increase in the monthly contributions of Social Security System (SSS) members, Malacañang said on Thursday.
This after business and labor groups have asked President Rodrigo Duterte to issue an executive order (EO) postponing the SSS contribution hike.
“The Office of the President is already studying that [proposal]. The SSS has already submitted a recommendation,” presidential Spokesperson Harry Roque said.
Roque said the OP would decide in view of the financial viability of SSS and the plight of businesses.
“We are looking at the financial viability of the SSS, and at the same time, the weakness of businesses amid the pandemic. So, expect the decision to come out as soon as possible,” he added.
The heads of at least 10 private sector and labor organizations signed a joint letter dated September 27, urging Duterte to take urgent action on the pending request for deferment of the scheduled hike in SSS premium contributions.
They said an EO is still needed despite the signing of Republic Act No. 11548 to implement the postponement of the increase in SSS contributions.
RA 11548 amends the Social Security Act of 2018 to allow the President to defer the scheduled
hike in SSS premium contributions in times of national emergency and for the duration of a state of calamity.
The deferment of the SSS contribution hike, they said, will provide relief to micro, small and medium enterprises that are still struggling amid the prevailing COVID-19 pandemic.
SSS members’ monthly contributions were raised in January 2021 to 13 percent from the previous 12 percent.
The next schedule for the SSS contribution hike will be in 2023 and 2025 to bring the rate to 15 percent by the end of the period.