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P45B eyed from SSS hikes

The Social Security System ( SSS ) expects to generate P45 billion in additional revenues this year if the proposals to increase the contribution rate as well as the minimum and maximum monthly salary credit (MSC) are implemented by April, the pension fund’s top official said.

The SSS has a pending request for the President to issue an executive order to increase the contribution rate, as well as the minimum and maximum MSC.

The pension fund is requesting for a three-percentage point  increase in contribution rate  from the current level of 11 percent to 14 percent.

Last year, the SSS was eyeing an increase of 1.5 percentage point but this  was not implemented. Last year’s supposed hike  is being carried over to this year.

Emmanuel Dooc, SSS president and chief executive officer, said the pension fund also wants to increase  the  minimum MSC from P1,000 to P4,000, and the maximum MSC from P16,000 to P20,000.

“The combined results or effect if we succeed in getting all these requests approved by the President is we will be able to collect more or less P45 billion in additional contribution revenues starting from April to end of this year,” Dooc said.

“Our prayer is to get this approved by the President, and for us to also get it approved by the (Social Security) Commission so we can implement it starting April,” he added.

Dooc said those measures would prolong SSS’ fund life from the current level of 2032 to 2044.

Dooc has sought the support of Finance Secretary Carlos Dominguez in getting the requests approved by Malacanang.

“He (Dominguez) is actively reviewing it because I was asked to pass some additional details in relation to that. He is again calling us to a meeting to discuss it before he probably endorses it to the President,” Dooc said.

Malaya

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