Ex-SSS chief to Palace: Suspend premium contribution hike
BLEEDING DRY? The Social Security System (SSS) sees huge losses if the rate hike is tabled. | FILE PHOTO
MANILA – Former Social Security System (SSS) chief Rolando Macasaet on Saturday called on Malacañang to order the temporary suspension of the implementation of higher contribution rates.
In a statement, Macasaet said the Palace has the authority to suspend the implementation of Republic Act (RA) 11199 of the Social Security Act if there is a clamor from members for the deferment of the scheduled increase in contribution rates.
“The increase in SSS premium contribution was provided by a law passed in 2019 stipulating premium increases in 2020, 2023 and 2025. This is prior to my term as SSS president,” Macasaet said.
READ: SSS rate in 2025: Private sector workers to see higher deductions
Macasaet was appointed SSS chief in May 2023, but resigned in October 2024 to run as representative of the SSS-GSIS Pensyonado party-list.
“We call on Malacañang to ask the SSS Board to temporarily suspend the implementation of any premium increases,” he added.
READ: Suspend SSS contribution hike – labor rights advocate
SSS income
Macasaet noted that the SSS had an income of over P80 billion in 2023 and a banner year of over P100 billion in income for 2024.
The SSS did not contribute a single centavo to the Maharlika Investment Fund (MIF), Macasaet added, reacting to reports that the hike in the state pension fund’s premium contribution was meant to replenish the amount it gave to the sovereign wealth fund.
“The temporary suspension or gradual implementation of the Social Security Act of 2018 will not burden our hard-working SSS members and will not significantly affect the fund life of the SSS.” Macasaet said.
Contribution increase
RA 11199 mandates the SSS to increase its contribution rate every two years, with the final increase in 2025.
In 2019, the contribution rate was set at 12 percent.
It rose to 13 percent in 2021 and to 14 percent in 2023, in accordance with RA 11199. The rate will be shared by the employer and the employee.
For the 15 percent contribution rate this year, 10 percent will be shouldered by the employer, while the employee pays the remaining 5 percent.
The higher rates are made to strengthen the SSS, according to its official website.
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