It was recently announced that the Social Security System (SSS) members and their employers should expect a rate hike for their monthly contributions. It will be increased to 12% from the previous 11% monthly rate. Two-thirds of the contribution rate increase should be shouldered by the employer.
The rate hike is supposed to replenish the fund life by 6 more years. It took a hit when the new policy of granting an additional P1,000 a month was enacted in 2017. The pension was then depleted by 10 years.
To further work towards replenishing the fund, SSS’ contribution rate will see a 1% increase every year until it reaches 15%. This is all so that SSS members and pensioners may continue to enjoy benefits until at least 2032.
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