We have all heard about the upcoming pension hike amounting to Php2,000.00 from the Social Security System (SSS). As of this time, the proposed hike is only waiting for legislation in the Congress before it becomes official.
Although this is a good news for SSS members, it possibly comes with a little catch.
In a GMA News article, SSS President and CEO Emilio De Quiros Jr. said:
“Hindi kami tumututol sa any pension hike … Ang sinasabi lang namin kailangan magkaroon ng funding mechanism, at isa sa option is increasing contribution.”
(“We are not against any pension hike… What we’re saying though is that we need to have a funding mechanism, and one of the options is increasing contribution.”)
De Quiros said that an increase of 5 to 6 percent would be ideal once the Php 2,000 pension hike officially gets approved. He said:
“Kung walang funding mechanism na ilalagay sa law then mapipilitan kami mag-push ng increase in contribution, kasi ‘yun lang ang panggagalingan ng funding ng SSS.”
(“If no funding mechanism will be included in the law, then we will be forced to push an increase in the contribution because it’s the only source of funding for SSS.”)
De Quiros, however, was quick to note that the Social Security Commission can only make a recommendation – not an order – regarding the said increase. He shared that they do not have the power to make it mandatory. He clarified:
“Ang Office of the President ang pwedeng magtaas.”
(“Only the Office of the President can raise the contributions.”)
“All we can do is recommend,” he pointed out.
What do you think of this possible proposal, dear readers? Do you think it would be good to have an increase for member contributions? Leave a comment below and share your thoughts with us regarding this news.