MANILA -- The Social Security System (SSS) said Tuesday, April 2, that the hike in the members' contributions would be used to provide better benefits.
In a radio interview, SSS Acting Media Affairs head May Rose Francisco said the contribution increase is key in ensuring the agency's fund is stable for all its members.
"It ensures that the fund is more stable and that we may be able to be prepared for the future benefit of the members. That means we will have higher amount when we give out benefits to them in the near future," she said.
Francisco added the primary source of SSS's funds are the contributions but the agency is looking for other ways to grow their funds.
"So, we really need to collect contributions from our members and our partners are the employers, so we reach out to them and make sure that they pay out the contributions of their employees. With the kind of management SSS has had in the past years, we're able to make assets grow and give benefits to our members at present and also in the future," she said.
On March 19, SSS announced that the increase in contribution rates from 11 percent to 12 percent will be implemented starting April 1.
"The increase in contribution rates is based on the new law that has been passed as for the additional P1,000 that is one thing the SSS is working on as to the time, I don't have the timeframe when the additional benefit will be given surely we will inform our members through media when the fund will be stable enough for another round of additional benefits for our members," Francisco said.
She added there would be another one percent increase in the members' contributions in two years, or rate will be 13 percent in 2021.
She also urged the members not to take the contributions they need to pay as a burden because "SSS contributions are a form of savings."
"Because all of this will be coming back to them in the form of benefits. Remember there are fixed benefits we give to members not only pension and another new benefit incorporated in the new law which is the unemployment insurance so with all these, we hope the members will understand, the members will be helping us out to make sure the fund is more stable," she said. (PNA)