Metro Manila (CNN Philippines, February 22) — Voting 21-0, the Senate on Monday approved on third and final reading a bill that will authorize the country’s president to suspend scheduled contribution hikes of the Social Security System.
Senate Bill No. 2027 will amend the Republic Act No. 11199 or the “Social Security Act of 2018.”
The state-run pension fund for private sector workers adjusted its member contribution from 12% to 13% this year.
The bill provides that the president “shall have the power to suspend or defer the implementation of increases in contribution rates…in times of a duly declared state of national emergency or state calamity for a period not exceeding six months.”
The deferment may be extended for another six months, it added.
However, the proposed measure also states that the power granted to the president shall be subject to consultation with SSS and affected members and key stakeholders.
A similar bill in the House of Representatives was also approved on third and final reading.
