Presidential Spokesperson Ernesto Abella disclosed in a press briefing on Tuesday at the Palace that President Rodrigo Duterte has approved the PHP1,000 across the board pension increase in Social Security System.
It could be recalled during the presidential campaign period that Duterte promised to push through with the pension hike.
According to Abella, the President wanted to “fulfill a social contract with the Filipino people.”
Starting May 2017, the contribution rate will be increased by 1.5 percent to 12.5 percent, bringing the contribution range to P15 to P740, Presidential Spokesman Ernesto Abella said.
According to SSS Chairman Amado Valdez, the second tranche of the SSS pension hike amounting to PHP1,000 is expected to be given by 2022 which will complete the PHP2,000 SSS pension hike.
Valdez also expressed his gratitude to the President for his “sense of caring for our pensioners.”
Prior to the approval, Presidential Communications Secretary Martin Andanar said that the President was looking for a win-win solution where he can give pensioners the increase they have been asking for while that SSS will remain solvent at all times.
“As the President said, he does not want to use taxpayers’ money, especially money of non-SSS members, should funding problem arises because of the increase,” he added.
