SSS contribution hike ‘absolutely unconscionable,’ pension rates need review - ex solon

Metro Manila, Philippines - The hike in Social Security System (SSS) contributions is “absolutely unconscionable” and insensitive given existing pension rates, a former lawmaker said.

“While SSS officials enjoy substantial salaries and benefits, they force members to pay higher contributions only to receive pension amounts that are far below the poverty threshold,” former Bayan Muna representative Neri Colmenares said in a press statement.

Beginning Jan. 1, the SSS contribution rate increased from 14% to 15% of members’ basic salaries as mandated by the Social Security Act of 2018 enacted during the Duterte administration.

Colmenares urged the government to review existing pension rates, appealing for a P1,000 increase.

“It's absolutely unconscionable that SSS implements another premium increase while its pensioners receive a measly P1,200 monthly pension for those with 10 credited years of service, or P2,400 for those with 20 years,” he said.

“I dare ask the SSS board members and officers: Kaya ba nilang mabuhay sa P2,400 monthly pension, o lalo na sa P1,200? Sa P1,200 pension, P40 lang ang pwedeng gastusin kada araw. Sa P2,400 naman, P80 lang kada araw. Sapat ba 'yan sa panahon ngayon?” the lawmaker asked.

[Translation: “I dare ask the SSS board members and officers:Can they survive on a monthly pension of P2,400, or even worse, P1,200. With a P1,200 pension, only P40 can be spent per day. With P2,400, that's just P80 per day. Is that enough in these times?]

The lawmaker earlier called to suspend the new SSS contribution rates, citing the agency's “failure to improve its collection efficiency.”