In a recent statement, Senate Minority Leader Aquilino Pimentel III has thrown his weight behind the growing demand to pause the scheduled rise in Social Security System (SSS) contribution rates. Pimentel raised concerns about the effectiveness of these increases in enhancing member benefits. The senator’s comments come in the wake of protests from private school teachers who are worried that the hike from 14 to 15 percent will further diminish their already modest salaries, especially given the current high cost of living and additional financial burdens.
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 openness from the SSS leadership, particularly about the bonuses awarded to top executives. He insisted that the performance of the board and the management of funds should be subject to member scrutiny and audit.
Echoing Pimentel’s sentiments, former SSS head Rolando Macasaet advocated for a temporary suspension of the rate hikes. Macasaet highlighted the SSS’s robust financial performance, noting an income exceeding PHP80 billion in 2023 and projecting over PHP100 billion for 2024. He also clarified that the SSS did not allocate 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 for 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 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 higher rates are intended to bolster the system’s financial health.