Members of the Social Security System (SSS) and Philippine Health Insurance (PhilHealth) are expected to increase their contribution this year.
Finance Secretary and Social Security Commission Chairman Carlos Dominguez III announced in December that the monthly contribution will increase from 12% to 13% effective January 1. However, he assured that this will not not exceed the prescribed maximum monthly salary credit (MSC).
The new contribution rate will “ensure pension fund viability, increase benefits for members, beneficiaries.” The increase of contribution is a step towards the full implementation of the restructured rates in 2025 according to the Social Security Act of 2018.
“[It] will offset the adverse financial impact of the â‚±1,000 pension increase granted in 2017,” it was announced on Facebook.
Meanwhile, PhilHealth members are expected to pay a premium rate of 3.5% from the previous 3.00%.
“The premium adjustment is provided for in Section 10 of the UHC Law and its implementing rules and regulations, the guidelines of which are contained in Circular 2020-005 published by PhilHealth on March 5, 2020,” said PhilHealth.
“Everyone’s hard-earned contribution will help guarantee that all these gains are delivered and sustained for all Filipinos today, tomorrow and for the years to come,”Â it added.
This increase did not sit well to other citizens after PhilHealth faced allegations about corruption. In August, a whistleblower claimed that PhilHealth executives have stolen up to â‚±15 billion through fraudulent schemes. This prompted then president and chief executive officer Ricardo MoralesÂ to step down from his post.