The Senate requested the conduct of an investigation related to the shortcomings of the Social Security System (SSS) in the collection of contributions from delinquent employers, according to Sen. Grace Poe. He submitted a resolution seeking to investigate reports about SSS's alleged lack of effective collection.
In his resolution, Poe urged the Senate to investigate, in preparation for legislation, "reports of ineffective SSS collection from delinquent employers, with the goal of improving its collection system."
Poe emphasized the need for an investigation related to the one percent increase in member contribution – from 14 percent in 2023 to 15 percent – in accordance with the SSS law.
He cited the report of the Commission on Audit that says there are ₱89 billion in uncollected contributions from more than 420,000 employers.
Although it has dropped to ₱46 billion, Poe said it is still a large amount that could have been used to expand member benefits.
“The uncollected amount is still huge. We want to know why the SSS collection was delayed. Are employers unable to pay due to the pandemic? We will also study the contribution increase, which is stated in the law. Can it be lowered to 7.5 percent, and does the law need to be amended for this?” Poe said in an interview with dzBB.
The investigation will also look at the ability of the SSS to provide benefits in the long term, as the increased contribution is expected to extend the fund from 2032 to 2053.
Sen. also passed. Sherwin Gatchalian of a similar resolution, saying that the SSS has a "management problem that they pass on to the public."
The investigation will be conducted by the Senate Committee on Banks, Financial Institutions, and Currencies.
Meanwhile, various groups are calling for the postponement of the SSS contribution hike, saying it is an additional burden for members amid rising commodity prices.
In defense of SSS President and CEO Robert Joseph de Claro, the set increase to 15 percent is in line with Republic Act 11199 or the Social Security Act of 2018, which says the contribution will increase every two years.
He also assured the public that this increase is the last mandatory contribution increase.
