The recently enacted Social Security Act of 2019, to be known as Republic Act 11199, is billed by its proponents in the Senate as “[promoting] a culture of saving” and “investing for the future among Filipinos.”
“This landmark law will encourage SSS [Social Security System] members to save and invest more so they would reap higher and better benefits. This will promote a culture change,” Sen. Richard Gordon said.
“Imbis na gagastos ng gagastos, mapipilitang mag-ipon ang mga miyembro, ilalagay ang pera nila sa retirement nila, [Instead of spending money, members will be forced to save money, put their money on their retirement],” added Gordon, chairman of the Senate Committee on Government Corporations and Public Enterprises.
“This is called forced savings.”
The senator issued the statement after President Duterte signed the bill into law, a remedial legislation that Gordon projects would result in better benefits for SSS members.
The new SSS law, Gordon added, aims to strengthen and rationalize the social security system, “and lengthen the life of the state pension fund, provides for a gradual increase of SSS contribution in 2019 from 11 percent to 12 percent.”
According to Gordon, the maximum salary cap was also increased from a maximum of P16,000 to a maximum of P20,000 for 2019.
“Hence, under the new law, a minimum-wage worker earning P537 a day for 22 days or P11,814 a month can be expected to have a P480 deduction for his SSS contribution,” the senator explained, adding: “This is P40 higher than his old contribution of P440 a month or an increase of a little more than one peso a day.”
According to Gordon, “the purpose of this law is to uplift the dignity of our people.”
SSS members would sacrifice part of their earnings today “by contributing more, but they will enjoy a dignified retirement later on.”
Image credits: Nonie Reyes