(Eagle News) – Starting next month, pensioners of the Social Security System will start receiving an increase of P1,000 in their monthly pensions.
This was after President Rodrigo Duterte approved the P1,000 increase in SSS pensions this month – half of the P2,000 SSS pension hike which he had initially wanted.
The increase, however, also meant a “corresponding 1.5 percent contribution rate hike,” starting in May, according to the Palace.
The other P1,000 pension hike for SSS members will take effect five years from now, or in 2022. But this could even be given earlier, depending on the status of SSS funds.
“The first P1,000 [will be implemented] this January. We projected the next P1,000 in 2022 but if we are able to implement and get favorable results, maybe it won’t take until 2022, maybe by 2019 we can already comply with the next P1,000,” said SSS chairman Amado Valdez during the press conference.
SSS President Emmanuel Dooc assured that the SSS has enough funds to support the pension hike.
Presidential Spokesperson Ernesto Abella, who announced President Duterte’s decision in a television broadcast on Tuesday, January 10, said that the chief executive finalized his decision the previous day, Monday, January 9.
He said that there will be an increase in monthly salary credit from P16,000 to P20,000.
“The President approved a P1,000-pension hike this month with a corresponding 1.5% contribution rate hike in May 2017, and an increase in monthly salary credit to P20,000 from P16,000,” Abella said.
The increase in SSS pension would mean an increase in contributions of SSS members to 12.5% beginning May. Currently, it is pegged at 11 percent.
Abella said that the increase in SSS contributions will be ranging from P15 to P740, since the contribution would be shared by employer and employee.
The President earlier said he would be announcing his personal decision regarding the SSS pension hike in January after his economic managers submitted a position paper opposing the P2,000 SSS pension hike, fearing SSS funds would be depleted.
This was after Congress presented their resolution for a P2.000-pension hike to the President.
