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MANILA - The Social Security System said employers have yet to agree to a planned increase in premiums starting next year.
Emilio de Quiros, president of the pension fund for private-sector workers, said an impasse between the SSS and employers has yet to be resolved before pursuing the planned increase next year.
"We are continually holding dialogues with the stakeholders to arrive at an agreement and pursue our plan come 2013," he said.
The pension fund would like to increase the monthly salary credit by 0.6 percent to 11 percent from the current 10.4 percent. Under its actuarial valuation, the pension fund’s life is seen to last until 2039.
The planned increase would lengthen its life by up to seven years. The last adjustment in the contribution rate was made in 2007.
"Even if SSS is solid at this point in time, we need to look at the future. We need to extend the fund life so that those who just joined the workforce today will have something to look forward to in the future in times of contingency such as sickness, maternity, disability and retirement," de Quiros said.
"By increasing the MSC, we also increase the amount of benefits. The same can be said with raising the rate of contribution. The bigger the contributions one makes, the bigger the benefits," he said.
The SSS contribution rate of 10.4 percent of the monthly salary is less than half the 21 percent of the Government Service Insurance System. The average contribution rate is 23 percent in Asian countries, and 35 percent among European nations.
Also part of the proposed reform agenda is to raise the maximum salary ceiling to P20,000 from P15,000.
"Thus, the reform agenda is really a package deal. By effecting these proposals, actively paying members will immediately enjoy higher social security benefits," de Quiros said.
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