MANILA – The Social Security System (SSS) said it may need to increase its contribution rates by 0.5 percent to finance the additional benefits under the Expanded Maternity Leave Law, else risk having its fund life cut by a year.
“Based sa computation kasi ng aming actuarial division, we will be needing additional 0.5 percent increase in the contribution rate for this maternity benefit law to be fully covered,” Normie Doctor, vice president for the Benefits Administration Division of the SSS, said in an interview on GMA News TV’s News to Go.
This comes as the Department of Labor and Employment (DOLE) on Wednesday, Labor Day, signed the implementing rules and regulations of the Expanded Maternity Leave Law or Republic Act 11210.
Duterte signed the measure into law in February, effectively extending the paid maternity leave for women to a total of 105 days, from the current 60 days.
According to Doctor, the law does not contain any provisions indicating where to source the funds which will cater to the additional benefits.
“Ngayon naturally, since SSS and nagbabayad ng maternity benefit, ibig sabihin, kami ‘yung magsho-shoulder ngayon nitong increase in the amount of maternity benefit,” she said.
“Ang magiging effect nito, ang financial impact niya on the fund life of SSS is that it will cut the fund life of SSS by one year,” explained Doctor.
She noted, however, that the SSS would have to review this since President Rodrigo Duterte recently approved an increase in the contribution rate.
“Since meron namang naaprubahan na ‘yung batas ng SSS, na meron kaming increase in contribution, we will try as much as possible na kung ano man ‘yung mga kikitain dito sa panibagong increase in contribution ng SSS is gagamitin na muna namin to fund the Expanded Maternity Leave,” she explained.
Duterte in February signed into law the overhaul of the SSS Charter, which provided for a gradual increase in monthly contributions to make it 15 percent by 2025 from the current 11 percent.
“At this point siguro, hindi pa naman siya ganon nakakabahala, but the plan of the management is to conduct an actuarial study para malaman namin if kailangan talagang humingi ng additional contribution,” said Doctor.
“Pero ang sabi naman, definitely this year yata is hindi pa naman namin hihingin ang additional,” she elaborated. (GMA News)
