Manila: Senate Minority Leader Aquilino Pimentel III has voiced his support for the immediate suspension of the planned increase in Social Security System (SSS) contribution rates, citing concerns over its impact on members’ benefits.

According to Philippines News Agency, private school teachers have recently expressed their dissatisfaction with the increase in SSS contributions from 14 percent to 15 percent, arguing that the hike would further reduce their already limited take-home pay in the face of rising prices and additional expenses. Senator Pimentel echoed these concerns, noting that the increase in contributions does not translate to enhanced benefits for members.

The senator has also called for more transparency from the SSS management, particularly concerning bonuses awarded to high-ranking officials. He emphasized the need for the SSS to be accountable to its members, suggesting that the performance of the board and the financial health of the funds should be audited and assessed by the members themselves.

Adding to the call for a temporary suspension of higher contribution rates, former SSS chief Rolando Macasaet highlighted the SSS’s substantial income, reporting over PHP80 billion in 2023 and projecting more than PHP100 billion for 2024. Macasaet also clarified that the SSS did not allocate any funds to the Maharlika Investment Fund.

Pimentel stressed the importance of transparency and accountability, urging the SSS to allow public scrutiny of its financial management processes. He called on the SSS to be fully transparent with its members regarding financial matters.

The Social Security Act of 2018, or Republic Act (RA) No. 11199, mandates that the SSS increases its contribution rate every two years, with a final increase scheduled for 2025. The contribution rate, initially set at 12 percent in 2019, rose to 13 percent in 2021 and further increased to 14 percent in 2023. The latest increase to 15 percent will be shared between employers and employees, with employers covering 10 percent and employees the remaining 5 percent. These higher rates aim to strengthen the SSS, as stated on its official website.