Updated 23:23 PM PHT Tue, January 10, 2017
Metro Manila (CNN Philippines) — President Rodrigo Duterte granted the ₱1,000-increase in the Social Security System (SSS) pension, officials said Tuesday.
The approved pension increase will take effect either on January or February 2017, with funds already allocated for this, said SSS president Emmanuel Dooc in a press briefing.
However, the pension increase will come with a corresponding rise in the contribution rate by members, SSS chairman Amado Valdez also said in the same press conference.
He added the agency hopes to comply with the initially proposed ₱2,000-increase by scheduling the additional ₱1,000-increase by 2022 or even earlier.
Dooc said they have calibrated a contribution rate increase of 1.5 percent to be implemented in May 2017. In peso value, Presidential spokesperson Ernie Abella said this additional contribution would range from ₱15 to ₱740 — to be equally shared by the employer and employee.
At present, SSS members contribute 11 percent to the fund. But in succeeding years, economic managers are targeting 17 percent of the contributors' monthly salary credit to cover the increase in pensions to retirees.
The SSS pension fund will last until 2040 despite the hike, as the contribution rate increases, officials said.
SSS is also targeting more efficient collection methods from contributors and their employers and calling on the Congress to craft a law that will enable the SSS to penalize firms and employers who do not remit the correct contributions.
SSS will also urge Filipino workers overseas to become members, Dooc said.
The agency may also require SSS clearances for bidders of government projects and business owners.