President Rodrigo Duterte has approved a pension increase for Social Security System (SSS) members, which will be funded with an increase in contributions.
May 2017, is the start of the contribution rate that will be increased by 1.5 percent to 12.5 percent, bringing the contribution range to P15 to P740.
Duterte does not want that SSS will be funding the increase with taxpayers’ money and the SSS should source it from contributions and investments.
However, the SSS still computes its finances so there will be a slight delay in giving the 1,000.00, it might be given this February.
‘This is an obligation under the law. Actually, it’s not just an obligation under the law. It’s a moral obligation because you are building social protection,’ Amado Valdez said.
Duterte’s economic managers had warned against an increase that is funded with taxpayers’ money, saying it would shorten the life of the fund and endanger the country’s sovereign debt ratings.
Duterte promised to increase SSS pensions when he campaigned for the presidency last year.
His predecessor, Benigno ‘Noynoy’ Aquino III, vetoed a legislated adjustment saying it would endanger the funds finances.