Malacañang threw its support behind the Social Security System’s (SSS) scheduled contribution hike, saying the adjustment will proceed after long-term planning and actuarial studies were conducted.
Executive Secretary Lucas Bersamin addressed calls to suspend the hike, noting that the decision was made well in advance and based on comprehensive studies.
“These increases are well-studied and based on actuarial considerations,” Bersamin said on Tuesday.
“We cannot arbitrarily halt these adjustments. The SSS has a respected actuary, and their expertise must be trusted,” he added.
Bersamin acknowledged the concerns but emphasized that Malacañang has yet to receive an official request to review the increase.
“If this issue is officially brought to us, we will seriously consider it,” he said.
“However, these contributions and their corresponding benefits were announced long before the recent calls for suspension. Let us allow the process to continue and produce the results predicted by the studies,” the Executive Secretary added.
For his part, SSS President and CEO Michael De Claro clarified that the one percent contribution increase was necessary for both short- and long-term benefits, dismissing the possibility of further contribution hikes in the foreseeable future.
The increase, which took effect on January 1, was mandated by Republic Act 11199 as the final phase of a series of scheduled hikes since 2019 to bolster the agency’s fund sustainability and benefits for members.
He added that the adjustment is necessary to support expanded benefits, including a rise in the monthly minimum pension from P4,000 to P5,000.
“This increase aligns with our law and ensures our members can maximize their benefits,” said De Claro in a Palace briefing.
“For instance, with the increase in monthly salary credit from P4,000 to P5,000, a member’s contribution rises by P190. Yet, this translates to higher daily salary credits, improving benefits like sickness and retirement,” he added.
He provided concrete examples, noting that an additional P30 daily benefit for sickness or retirement could quickly outweigh the additional contributions, with retirees recovering their investments within five years.
When asked about appeals to suspend the hike due to recent calamities, De Claro acknowledged concerns but underscored the importance of compliance with the law.
He proposed that lawmakers seeking suspension could subsidize the increase instead, noting the broader implications of such delays.
“We have a contribution subsidy program, but if we suspend the increase, we risk undermining our capacity to assist members during crises,” he explained, highlighting SSS’s role in providing calamity loans and benefits.
Editor’s Note: This is an updated article. Originally posted with the headline “Malacañang backs SSS contribution hike.”
