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News Press Releases GORDON CALLS ON SSS FOR REVIEW OF 2021 CONTRIBUTION INCREASE

GORDON CALLS ON SSS FOR REVIEW OF 2021 CONTRIBUTION INCREASE


December 31, 2020 Press Releases

Senator Richard J. Gordon, Chairman of the Senate Committee on Government Corporation and Public Enterprises, called on the Social Security System (SSS) to submit to the Committee proposals on how the implementation of the 2021 contribution increase can be suspended without shortening the fund life of the SSS.

“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. Noong ginawa ang RA 11199, wala pa sa hinagap ng mga mambabatas na magkakaroon ng pandemya at magiging malala ang epekto nito sa ekonomiya,” said Gordon.

“Ayon sa datos ng NEDA, Php 5.2 trillion ang loss sales sa unang semestre pa lang ng taon. Kalahating taon pa lang, mas mataas na ito sa 2021 budget na Php 4.5 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 admits, however, that stopping the 2021 contribution increase is not easy and that 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 Roa Duterte under the memorandum from the Executive Secretary dated February 22, 2017.