Small businesses oppose hike in SSS contribution rate
MANILA, Philippines - Small businesses are opposing the Social Security System's (SSS) plan to increase its members' contribution rate.
The SSS said monthly contributions are set to increase 0.6% starting January next year. This means contributions will rise to 11% per month from the current 10.4%.
Based on this, a worker who earns P10,000 a month will now have to shell out P363.30 to the SSS, while their employer will contribute P736.70.
The Employers Confederation of the Philippines backs the move but some small business owners say the SS should have consulted them first.
However, the SSS said the increase will help reduce the pensions it can't pay and give it funds for another three years. It added the increase will also lead to more benefits for its beneficiaries in the long run.
"Karagdagang savings ito ng mga miyembro," said Marisu Bugante, vice president of SSS public affairs.