In a recent statement, Senate Minority Leader Aquilino Pimentel III has thrown his weight behind the growing demand to pause the scheduled increase in Social Security System (SSS) contributions. Pimentel raised concerns about the effectiveness of the hike in enhancing member benefits, echoing the sentiments of private school teachers who have protested the rise from 14 to 15 percent, citing its detrimental effect on their already modest salaries amidst rising living costs.
Pimentel criticized the lack of corresponding benefits from the increased contributions, stating, ‘The increase in SSS premium contributions does not lead to increases in members’ benefits.’ He also demanded more transparency from the SSS, particularly regarding the bonuses awarded to top executives. He insisted that the performance of the board and the management of funds should be open to member scrutiny and audit.
Echoing Pimentel’s call, former SSS chief Rolando Macasaet also advocated for a temporary suspension of the rate hikes. Macasaet highlighted the financial health of the SSS, noting that it earned over PHP80 billion in 2023 and projected earnings exceeding PHP100 billion in 2024. He also clarified that the SSS had not contributed any funds to the Maharlika Investment Fund.
Pimentel emphasized the need for accountability and transparency in the SSS’s financial operations, urging the organization to make its processes accessible to public review. He reiterated, ‘The SSS should be fully transparent with their members.’
The increases in SSS contributions are mandated by Republic Act No. 11199, the Social Security Act of 2018, which requires a rate increase every two years until 2025. The contribution rate, which was 12 percent in 2019, increased to 13 percent in 2021 and 14 percent in 2023. This year, the rate is set to rise to 15 percent, with employers covering 10 percent and employees the remaining 5 percent. According to the SSS’s official website, these increases are intended to bolster the organization’s financial stability.