In a recent development from Quezon City, Senate Minority Leader Aquilino Pimentel III has thrown his weight behind the growing demand to pause the scheduled increase in Social Security System (SSS) contribution rates. Pimentel’s support comes in response to concerns raised by private school teachers about the financial strain caused by the rise from 14 to 15 percent, which they argue significantly cuts into their already modest salaries amidst rising living costs.
Pimentel criticized the hike, stating that it does not result in enhanced benefits for SSS members. He further demanded greater transparency from the SSS, particularly regarding the bonuses awarded to its top executives. He emphasized that the performance of the SSS board and the management of its funds should be subject to member scrutiny and audit.
Echoing Pimentel’s sentiments, former SSS chief Rolando Macasaet also advocated for a temporary suspension of the increased rates. Macasaet highlighted that the SSS reported a revenue of over PHP80 billion in 2023 and projected a record-breaking PHP100 billion for 2024. He also clarified that the SSS did not allocate any funds to the Maharlika Investment Fund.
Pimentel underscored the need for accountability, urging the SSS to make its financial operations transparent to the public. He reiterated that the SSS must be open with its members about its financial dealings.
The increase in SSS contributions is mandated by Republic Act No. 11199, the Social Security Act of 2018, which stipulates a rate increase every two years, culminating in 2025. The contribution rate, which was 12 percent in 2019, escalated to 13 percent in 2021 and 14 percent in 2023. This year, the rate has been set at 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 system’s financial health.