Senate seeks probe into SSS rate hike

MANILA, Philippines — The Senate is seeking an investigation on the lapses of the Social Security System in collecting payments from delinquent contributors, Sen. Grace Poe said yesterday as she filed a resolution calling for a probe on reported inefficiencies within the SSS.

In her resolution, Poe urged the Senate to investigate in aid of legislation the “reported inefficiency of the SSS in collecting contributions from delinquent employers, with the end in view of enhancing the efficiency of its collection mechanisms.”

Poe said there should be an investigation on the need for a one percent increase in member contribution rate – to 15 percent from 14 percent in 2023 – as mandated under the SSS law.

She cited a Commission on Audit report that said SSS has P89 billion in uncollected dues from over 420,000 employers.

Although the delinquencies have gone down to P46 billion, that is still a lot of money which could have been used to expand members’ benefits, Poe said.

“The uncollected contribution is still a huge amount. We want to find out why SSS was delayed in its collections. Were employers unable to pay their dues because of the pandemic? We will also study the increase, which is mandated under the law. Can we lower it to 7.5 percent, and do we need to amend the law for it?” Poe said in a dzBB interview.

The investigation would also look into the lifespan of SSS in giving benefits, with the contribution increase expected to extend the fund life to 2053 from the previous 2032.

Sen. Sherwin Gatchalian has filed a similar resolution, saying SSS has a “management problem they are passing on to the people.”

The inquiry is expected to be held by the Senate banks, financial institutions and currencies committee.

Groups are calling on SSS to defer the rate hike, calling it an unnecessary burden on contributors amid rising prices of goods.

SSS president and chief executive officer Robert Joseph de Claro defended the scheduled rate hike, saying Republic Act 11199, or the Social Security Act of 2018 states that the contribution rate should increase every two years. 

The SSS chief also assured the public that the increase to 15 percent is the last mandatory contribution hike.