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Duterte signs law allowing deferment of SSS contribution hike


President Rodrigo Duterte has signed the law granting him the power to defer the increases in Social Security System (SSS) premium contributions for the duration of the State of Calamity.

Republic Act (RA) No. 11548 amended section 4(a)(9) of RA 11199 or the Social Security Act of 2018, which allows the Social Security Commission, the governing body of the SSS, to implement the contribution rate increase.

Duterte inked the measure on May 26, 2021.

The new law has granted the President to extend the deferment of the SSS contribution hike for another six months for a total of one year upon the recommendation of the Social Security Commission.

Sec. 4(a)(9) of the Social Security Act of 2018 imposes a one-percent contribution increase on SSS members every two years starting 2019 until 2025. Meaning, the SSS members’ contribution rate will increase to 13 percent beginning January 2021 from a contribution rate of 12 percent in 2020.

“The other scheduled contribution rates and the monthly salary credits herein provided shall continue to be valid,” RA 11548 read.

“Provided, finally, that no changes in the implementing rules or administrative procedures shall be introduced by the Social Security Commission that will defer disbursement of benefits presently being enjoyed by its members,” it added.

On March 16 last year, Duterte signed Proclamation 929, declaring a nationwide state of calamity due to the COVID-19 pandemic.

According to the proclamation, the entire Philippines is placed under a state of calamity for six months, “unless earlier lifted or extended as circumstances may warrant.”

The new law, which was made public on Thursday, takes effect 15 days after publication in at least two newspapers of general circulation.

See signed document here.

—(Source: PNA)

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