The Senate government corporation and public enterprises committee on Tuesday approved a bill authorizing President Duterte to defer or suspend the scheduled increase in Social Security System (SSS) contribution rate that starts this month.
This took place after the committee chaired by Senator Richard J. Gordon, committee chairman, conducted today a public hearing on bills seeking the deferment of the scheduled SSS contribution rate because of the current coronavirus disease (COVID-19) pandemic.
Instead of the committee passing measures mandating the deferment of increased SSS contributions, the committee gave that power to the President.
The Office of the President is expected to assess the situation and initiate meetings with various concerned sectors such as employees and employers who can lobby and appeal for the suspension or deferment of the increase in the rate of contributions.
Before this could be implemented, there should be consultations with SSS and Department of Finance senior officials.
During the public hearing, SSS President and CEO Aurora Ignacio appealed to the committee not to defer the scheduled contribution rate because SSS is not financially stable.
Gordon said the measure his committee approved grants President Duterte the power to suspend increased SSS contribution for at least six months while the country is under a state of emergency like the current coronavirus disease (COVID-19) pandemic.