SSS defends contribution hike, says beneficiaries will suffer if suspended

MANILA, Philippines — Despite calls to suspend the Social Security System (SSS) contribution hike, the pension firm is set to implement the increase this January. 

SSS President and Chief Executive Officer Robert De Claro on Tuesday, January 7, defended the contribution hike, saying that more beneficiaries will suffer in the long run if the increase is not enforced.

De Claro said the hike is already enshrined in Republic Act 11199 or the Act Rationalizing and Expanding the Powers and Duties of the Social Security Commission to Ensure the Long-Term Viability of the Social Security System. 

The official said it was meant to improve the benefits in the future, but clarified that this would not mean an immediate increase in social security. 

He rationalized that the SSS is also there to assist during times of calamities. During the onslaught of storms in the latter part of 2024, the SSS provided P9.8 million in calamity loans to 500,000 members in affected areas.

“Kapag idi-delay ho natin itong increase na ito, hindi lang ho magsa-suffer ang mga miyembro, wala silang opportunity but also iyong capacity ho ng SSS na tumulong in times of need,” De Claro said. 

(If we delay the increase, it is not just the members who will lose opportunity but also the capacity of the SSS to help in times of need.) 

The benefits payout following the increase in the SSS’ reserve funds would be P100 billion.

De Claro said the SSS will invest the income wherever it is allowed within their charter.  

He explained that during the time of former president Rodrigo Duterte in 2017, SSS benefits were increased by P1,000, which shortened the SSS fund's life to last only until 2023.

“I am happy to report that as of the moment, we have already doubled the fund life – it’s now 28 years, up to 2053,” De Claro said. 

The official said that not only would the contribution increase, but the monthly credit would as well. The monthly credit is the SSS's compensation base for contributions and benefits, meaning contributors should be able to gain more in the long run.

The Palace also defended the increase, saying that it was already well-studied. Critics of the contribution hike said that President