SSS and PhilHealth higher contribution rates

SSS and PhilHealth contribution rates have gotten the go signal to take effect starting January 2014. So how much is the increase?

Photo: www.philstar.com

For PhilHealth members (currently employed), your new contribution rate will be P200, from P175 last year. The same goes for the self-employed members, from P150 last year.

SSS and PhilHealth contribution rates are up! Meanwhile, Social Security System (SSS) members are to shoulder an increase of 11 percent from 10.4 percent. The contribution will be shared between the employee and employer - P90.8 and P194.2 respectively.

Emilio S. de Quiros Jr., SSS President and Chief Executive Officer told news:

We’re running at about P385 billion [reserve fund], 10 percent of that would be P38 billion. Compared that with the P80 billion growth in unfunded liability, we still cannot cover the growth of unfunded liabilities

Even we bring down the unfunded liabilities, we still need to build up the fund to the point where the income would be more than the growth in the unfunded liabilities, so that there would be a net reduction in unfunded liabilities over time

As per suggestion by De Quiros, the increase shall be done by increment over the years. He added:

Why don’t we put it in small increments?

We need to look at the economy as well, because this is going to be additional expense, additional investments of the employee and additional expense for the employers.

What is your take in this increase of contribution rates for SSS and PhilHealth?