MANILA, Philippines – Senator Richard Gordon called on the Social Security System (SSS) to submit proposals to the Senate on how to suspend the implementation of the 2021 contribution increase without shortening the fund life of the agency.
While the law mandates an increase in SSS contributions in 2021, Gordon pointed out that this is untimely, especially when businesses are down amid the coronavirus pandemic.
“Bagama’t kailangan at nakasaad sa batas na magkaroon ng dagdag na kontribusyon ang SSS sa 2021, nakikita natin na hindi ito napapanahon lalo na’t lugmok ang ating mga negosyo,” Gordon said in a statement Thursday.
“Noong ginawa ang RA 11199, wala pa sa hinagap ng mga mambabatas na magkakaroon ng pandemya at magiging malala ang epekto nito sa ekonomiya,” he added.
Gordon cited data from the National Economic Development Authority (NEDA) which shows that SSS’ loss sales reached P5.2 trillion in the first quarter of the year alone.
He noted that only halfway of the year, it is already higher than the 2021 national budget of P4.5 trillion.
“Kailangan nating balansehen ang interes ng mamayan na nahihirapan sa pandemya pati rin ang interes na mapangalagaan ang pondo ng SSS,” he added.
Gordon, however, acknowledged that stopping the 2021 contribution increase is not easy.
He said a new law may be needed as the increase is specifically mandated in Republic Act No. 11199 or the Social Security Act of 2018 and there is no provision in the said law that empowers the SSS to stop it.
“Pag-uusapan namin ito sa komite at kung kinakailangan ay maglalabas kami ng bagong batas para maging magaan para sa ating mga kabababayan ang makaahon sa pandemyang ito habang patuloy na nagbabayad ng kanilang kontribusyon sa SSS,” he said.
RA 1199 was enacted on February 7, 2019 to protect the fund life of the SSS which was shortened by ten years from 2042 to 2032 on account of the approved Php 1,000 additional benefit given by President Rodrigo Duterte under the memorandum from the Executive Secretary dated February 22, 2017.
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