The House of Representatives approved on third and final reading yesterday a bill seeking to grant the President the power to defer the scheduled hike in Social Security System (SSS) contribution rates.
With 228 affirmative votes, six negative votes, and no abstention, the chamber passed House Bill 8512, that seeks to amend Republic Act 11199, or the Social Security Act of 2018.
The proposal will grant the President of the Philippines power, in consultation with the Secretary of Finance as the chairperson of the Social Security Commission, to suspend the implementation of the scheduled increases in premium rates in times of national emergencies when public interest so requires.
Under RA 11199, the SSS contribution rate is expected to increase from 12 percent in 2020 to 13 percent in 2021.
Speaker Lord Allan Velasco, principal author of the bill, warned that increasing the rate of contributions of SSS members will “strikingly undermine the recovery effort of everyone suffering from job losses, wage reduction, business closures, and health-related issues.”
He noted that, as of October 2020, the unemployment rate in the country still stands at 8.7 percent, which is equivalent to 3.8 million Filipinos in the labor force.
Velasco said Filipinos have barely recovered from the losses and difficulties brought about by the coronavirus pandemic.
“Even today, while some restrictions may have been lifted, most livelihood, businesses, and other sources of income remain shuttered and closed, while many Filipinos remain unemployed,” he said.
Deputy Speaker Eddie Villanueva, another author of the bill, said the deferment in the SSS rate hike means an undiminished level of disposable income for Filipino workers and employers which will help them cope and survive these hard times and aid them to get fully back on their feet.
The House also approved on final reading a proposal granting the President the power to suspend the scheduled increases in the contribution rates of the Philippine Health Insurance Corp. (PhilHealth).
With 227 affirmative votes, six negative votes, and no abstention, the chamber passed on third reading House Bill 8461, that seeks to amend RA 11223, or the Universal Health Care Act.
Under the UHC law, those who have a monthly basic salary of P10,000 and below will have a fixed contribution of P350 a month starting January 2021. Those earning P10,000.01 to P69,999.99 have a monthly premium of P350 to P2,449.99, while those earning P70,000 and higher per month will pay a fixed rate of P2,450 monthly.*PNA