SSS P1,000 pension hike approved, contributions slated for increase in May

SSS pensioners have a reason to be happy as President Rodrigo Duterte approved a P1,000 pension hike starting this year.

The other half of the Congress-approved P2,000 pension hike will be given in 2022 or earlier, according to SSS Chairman Amado Valdez.

(Image Credit: Bayan Muna, SSS Pension Increase Now FB page)

Though funds are enough for the implementation of the P1,000 increase starting this January, Vice-Chairman Emmanuel Dooc said that recomputations required by their system might lead to some delay.

To compensate for the pension hike, the SSS will implement an increase in members' contributions by 1.5% or from 11% current rate to 12.5% starting May 2017.

In addition to an increase in member contributions, other measures will have to be undertaken to ensure sustainability of the SSS pension funds.

Valdez warned that cases will now be filed against employers who do not remit or pay SSS contributions for their employees.

"There will be some contempt charges against employers who do not respond to the summons of the court," Valdez said.

The SSS Chairman might get support along this line from Malacanang. Agriculture secretary Emmanuel Piñol, who attended the Cabinet meeting wherein the SSS pension house was tackled, said that Duterte wants employers who fail to remit SSS contributions of their employees to be arrested and prosecuted.

Duterte was also said to have ordered cutting out the excessive allowances and honorarium given to top SSS officials.
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