The Social Security System (SSS) contribution table for 2013 will likely change in the middle of the year as the President Aquino hinted on an increase in contribution rate during his pre-Labor Day Dialogue speech in Malacañang on Tuesday.
The President was quoted as speaking about the SSS estimated unfunded liability as of 2011 at 1.1 trillion pesos:
“The solution? A little sacrifice. Right now, the SSS contribution rate is 10.4%. This is very low. The international standard is at 14.1%…Now, if we just add 0.6% to the contribution rate and increase it to 11%, we can immediately reduce SSS’s unfunded liability by 141 billion pesos.”
The move to increase SSS premiums will result “in a 7% increase in benefits.” During an interview with ANC, the SSS President Emilio de Quiros, stated that they’re still waiting for the final order from the Palace before releasing the contribution rate.
With the increase in SSS monthly contributions, the SSS plans to hike the monthly salary credit ceiling from P15,000 to P16,000. The pension will also go up to more than P13,000 from the current P12,000 while the burial benefits will increase from P20,000 to P30,000 or P40,000.
Watch the video report from ANC: