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DATES AN 08 05 nk

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No.8310

Introduced by BAYAN MUNA Rep. CARLOS ISAGANI T. ZARATE,
FERDINAND R. GAITE and EUFEMIA C. CULLAMAT,
ACT TEACHERS Parvy-List Representative FRANCE L. CASTRO,
GABRIELA Women’s Party Representative ARLENE D, BROSAS
and KABATAAN Party-List Representative SARAH JANE I. ELAGO

AN ACT
REMOVING THE AUTOMATIC INCREASE OF CONTRIBUTIONS OF THE
SOCIAL SECURITY SYSTEM, AMENDING FOR THE PURPOSE SECTION 4 A.9
OF REPUBLIC ACT NO. 11199, OTHERWISE KNOWN AS THE SOCIAL,
SECURITY ACT OF 2018

EXPLANATORY NOTE

Since 2017, under the Duterte administration, the Philippines is already experiencing economic
slowing down. ‘The worsening economic siuation was further accelerated down to recession
when the coronavirus disease also struck the Philippines. For the second quarter of 2020, the
gross domestic product (GDP) fell down to -16.9%, ranking che Philippines’s economy situation
among Southeast Asian countries. During the third quarter, the Philippine Statistics
Authority recorded 11.5% GDP growth rate,

the wors

Amidst the pandemic, where millions were left behind jobless during the various levels of
community quarantines, Filipinos will now be facing another problem at the start of 2021:
increased premium contributions of the Social Security System (SSS). Last December 23, 2020,
Finance Secretary and Social Security Commission Ch airman Carlos Dominguez III said that the
contribution hike will still be implemented in 2021. As mandated by Section 4 a.9 of Republic
‘Act No. 11199, otherwise known as the Social Security Act of 2018, the contribution rate will be
increased from 12% in 2019 to 13% in 2021, 14% in 2023, and 15% in 2025. For 2021, the
monthly salary credit will be increased to P2,000-P25,000. Meanwhile, the minimum monthly
salary credit for kasambahay and overseas filipino workers members will remain at P1,000 and
8,000, respectively.

$85 Chairman Domingues elaims that any drop in collections may lead to eash flow and liquidity
issucs, which could endanger the System's ability to provide its members and their beneficiaries
with benefits and loan privileges. It was also revealed that from January to October 2020 only
totalled P169.73 billion, which was 5.4% lower from the P179.34 billion collected in the same

JAN #6 2021


period in 2019. However, the SSS failed to present that it has a history of collection rate
inefficiency, among other issues reported by the Commission on Audit.

Year | Toft collected 57 member? Eaying Employed’
contributions members u
2016 P144.36 B 34.889 M 14.165 M. 40.815 M.
2017 PIs9.72B 34.979 M 14.287 M 40.335 M
2018 PIg1.92B 36.736 M. 16.540 M_ 41.143 M
2019 37.793 M 17.639 M 42.427 M"

*—aceording to SSS Annual report
according to the Commission on Audie

+ — according to the Philippine Statistics Authority
4s of September 2019 data of the SSS
*—preliminary data of PSA

Moreover, the much-awaited release of the second tranche of the approved P2,000-inercase of
SSS pension is yet to be implemented. Amid the COVID-19 pandemic and economic recession,
the pensioners direly need the last anche of SSS pension inerease. Yet, the Filipino people will
be burdened with higher contribution rates even under the current Philippine situation and even
without any substantial improvement in SSS's collection rate efficiency and other reforms.

‘Thus, this Bill seeks to amend the Section 4 2.9 of the RA 11199, otherwise known as the Social
Security AAct of 2018, which mandates the automatic increase of contribution rates. In this light,
the passage of this bill is earnestly sought.

Approved, a .
oe ee
REP. CARLOS ISAGANI T. ZARATE
Bayan Muna Partylist
REP. IINAND R. GAITE REPS G 2a Cc. CULLAMAT
Bayan Muna Parr Bayan Muna Partylist
A:

REP. FI -E L. CASTRO. REP. D. BROSAS

ACT Teachers Partylist GABRIELA Women's Party

REP. SARAH JANE I. ELAGO
Kabataan Partyist


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No.8310

Introduced by BAYAN MUNA Rep. CARLOS ISAGANI T. ZARATE,
FERDINAND R. GAITE and EUFEMIA C. CULLAMAT,
ACT TEACHERS Pary-List Representative FRANCE L. CASTRO,
GABRIELA Women’s Party Representative ARLENE D, BROSAS
and KABATAAN Party-List Representative SARAH JANE I. ELAGO

AN ACT
REMOVING THE AUTOMATIC INCREASE OF CONTRIBUTIONS OF THE
SOCIAL SECURITY SYSTEM, AMENDING FOR THE PURPOSE SECTION 4 A.9
OF REPUBLIC ACT NO. 11199, OTHERWISE KNOWN AS THE SOCIAL
SECURITY ACT OF 2018

Beit enacted by the Senate and the House of Representatives of te Philippines in Congress assentbled:
SECTION 1. Section 10 of Republic Act No. 11199 shall be amended as follows:

SEC. 4. Powers and Duties of the Commission of the Commission and 5

(a) The Camnission, =
Xxx

(9) TO IMPLEMENT THE RATE OF CONTRIBUTIONS AS WELL AS
‘THE MINIMUM AND MAXIMUM MONTLY SALARY CREDITS [IN
ACCORDANCE WITH THE FOLLOWING SCHEDULE EFFECTIVE
JANUARY OF THE YEAR OF IMPLEMENTATION AS FOLLOWS:

Year of | Contribution Share ‘Monthly Salary Gredit
Implementation | Rare | Employer Employee] Minimum | Maximum
2019 12% B% 4% P2,000.00 | P20,000.00
2020 12% B% 4% P2,000.00 _| P20,000.00
2021 T 3,000.00 | P25,000.00
2022 13% 3,000.00 | P25,000.00
2023 14% 4,000.00 _| P30,000.00
2024 w% P 4,000.00 _| P30,000.00



5,000.00 _| P35,000.00

SHALL BE FIXED AND ADJUSTED FROM TIME TO
TIME THROUGH ENACTMENT OF CONGRESS,
TAKING INTO CONSIDERATION ACTUARIAL
CALCULATIONS, RATE OF BENEFITS, AND THE
CAPACITY OF THE MAJORITY OF CONTRIBUTORS TO
PAY.

Provided, That the domestic workers or “kasabahays” as defined under
Republic Act No. 10361 or the Batas Kasambahay who are receiving,
a monthly income lower than minimum monthly salary credit
prescribed under this Act shall pay contributions based on their
actual monthly salary: Provided, further, That members, who are subject
to compulsory coverage and receiving a monthly income lower than
the minimum monthly salary credit or more than the maximum
salary credit, and their employers, shall pay the SSS. contributions
based on the current minimum salary credit or the maximum
monthly salary credit, respectively, as provided in this Act.

‘The rate of penalty on unpaid loan amortizations shall be determined
and fixed by the Commission from time to time through rules and
regulations on the basis of applicable actuarial studies, rate of
benefits, inflation, and other relevant socioeconomic data;

SECTION 2. Repeating Clause. — All laws, decrees, executive orders and other presidential
issuance, which are inconsistent with this Act, are hereby repealed, amended or modified

accordingly.

SECTION 3. Effectivigy. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in at least two (2) newspapers of genceal circulation.

Approved,