The Social Security System clarified on Tuesday that the increase in contribution rates under Republic Act 11199 or the Social Security Act of 2019 will not take effect this month.
SSS-Cebu acting assistant head Chrysolite Ardina said even if the law took effect on Tuesday, March 5, it will still have to wait for the approved and published implementing rules and regulations (IRR).
Once the IRR is published, the new contribution rates will be collected, she said.
Last Feb. 18, President Rodrigo Duterte signed RA 11199 into law, which was later published in the government's Official Gazette on the same day and in a national daily on Feb. 19. It took effect on Tuesday, 15 days after its publication.
The Social Security Commission (SSC) is given 90 days to formulate the IRR or until June 3 to publish the IRR.
Ardina, however, said SSS does not have to wait for June 3 to publish the IRR. She believes the IRR will be released as early as April.
Under RA 11199, SSC has the power to increase the contribution rates even without the President's approval.
The SSC can increase the contribution rate to one percentage point every two years after the implementation until reaching the 15-percent mark.
The one-percent increase will be gradually implemented in 2021, 2023 and 2025.
Before RA 11199 took effect, an employee's contribution rate is at 11 percent, of which 7.37 percent is shouldered by the employer.
Ardina said a member should not think that the increase is a burden.
"That is their investment, savings," she said.
On Friday, March 1, an open forum was held at SSS-Cebu office attended by 150 stakeholders who offered inputs for the IRR.
The new law extends the fund life of SSS to 2045. The fund life of SSS was expected to die in 2032 after its pensioners were given an additional P1,000 per month increase since 2017. (SCG of Superbalita Cebu/KAL)