EIGHTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
)
SENATE
S.B. No. 1970
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FILED
DATE
TIME
INDEX
Introduced by SENATOR RICHARD J. GORDON
AN ACT
DEFERRING THE INCREASE IN CONTRIBUTION OF THE SOCIAL SECURITY 
SYSTEM AMENDING SECTION 4(a)(9) OF REPUBLIC ACT NO. 11199 ALSO 
KNOWN AS THE SOCIAL SECURITY ACT OF 2018
EXPLANATORY NOTE
On February 7, 2019, RA 11199 also known as the "Social Security Act of 2018" 
was passed to address the problem of the shortening of fund life of the SSS by 10 
years from 2042 to 2032 on account of the approved P 1,000 additional benefit given 
by President Duterte effective January 2017, as stated in the Memorandum from the 
Executive Secretary dated February 22, 2017.
From 2019, until date, there had only been one increase in contribution from 11% 
to 12% contribution rate and from Php 15,000 maximum monthly salary credit to Php 
20,000 maximum monthly salary credit. Second round of increase is scheduled in 2021 
from 12% to 13% contribution rate and from Php 20,000 maximum monthly salary 
credit to Php 25,000 maximum monthly salary credit.
Unfortunately, Global pandemic caused by Covid-19 struck the Philippines in 
January 2019. The impact of Covid-19 on businesses and the working public is very 
drastic and bleak. According to the National Economic Development Authority, there 
had been 5.2 trillion loss sales in the first semester alone, which is higher than the 
2021 budget of Php 4.5 trillion. As of August 2020, Philippines suffered its first 
recession in 29 years, with a grim outlook for economic recovery as Covid-19 continues 
to wreak havoc to the economy.
On account of the continuing hardship brought about by Covid-19 to the people 
and to the business sector, having the mandated contribution increase under Republic 
Act No. 11199 is not timely. This bill seeks to provide the people with flexibility to 
adapt to the pandemic by empowering the President to temporarily suspend or defend


increase in contributions scheduled under RA 11199, so that the people will be able 
to have "financial breathing space" to be able to adjust to the on-going National 
Emergency.
Consideration and approval of this measure is earnestly being sought.
on. GORDON
Senator


EIGHTEENTH CONGRESS 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
)
)
SENATE
S.B. No. 1970
tCE
FILED
DATE
TIME
Introduced by SENATOR RICHARD J. GORDON
AN ACT
DEFERRING THE INCREASE IN CONTRIBUTION OF THE SOCIAL SECURITY 
SYSTEM AMENDING SECTION 4(a)(9) OF REPUBLIC ACT NO. 11199 ALSO 
KNOWN AS THE SOCIAL SECURITY ACT OF 2018
Be it enacted by the Senate and House of Representatives of the Phiiippines in 
Congress assembied:
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SECTION 1. Sec. 4(a)(9) of Republic Act No. 11199 also known as the Social Security
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Act of 2018 is hereby amended as follows:
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"(9) To implement the rate of contributions as well as the minimum and 
maximum monthly salary credits in accordance with the following schedule 
effective January of the year of implementation as follows:
Year of
Implementation
Share
Monthly Salary 
Credit
Contribution
Rate
Employer
Employee
Minimum
Maximum
2019
12%
8%
4%
P2,000
P20,000
2020
12%
8%
4%
P2,000
P20,000
2021
13%
8.5%
4.5%
P3.000
P25f000
2022
13%
8.5%
4.5%
P3,000
P25,000
2023
14%
9.5%
4.5%
P4.000
P30,000
2024
14%
9.5%
4.5%
P4,000
P30,000
2025
15%
10%
5%
P5,000
P35.000
Provided, That the domestic workers or "kasambahays" 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,


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further^h^t members, who are subject to compulsory coverage and receiving 
a monthly income lower than the minimum monthly salary credit or more than 
the maximum monthly salary credit, and their employers, shall pay the SSS 
contributions based on the current minimum monthly salary credit or the 
maximum monthly salary credit, respectively, as provided in this Act: 
PROVIDED, RNALLY, THAT THE PRESIDENT OF THE PHILIPPINES SHALL 
HAVE THE POWER TO TEMPORARILY SUSPEND OR DEFER THE 
IMPLEMENTATION OF INCREASES IN CONTRIBUTIONS OF THE SOCIAL 
SECURITY SYSTEM MANDATED IN THIS SECTION BY VIRTUE OF AN ORDER 
ISSUED SOLELY IN TIMES OF A DULY DECLARED STATE OF NATIONAL 
EMERGENCY OR STATE OF CALAMITY FOR A PERIOD NOT EXCEEDING SIX 
MONTHS WHICH MAY BE EXTENDED TO ANOTHER SIX MONTHS UPON 
DETERMINATION BY THE PRESIDENT THAT FURTHER EXTENSION OF THE 
SUSPENSION OF IMPLEMENTATION OF INCREASES IS NECESSARY TO 
PROTECT PUBLIC INTEREST AND WELFARE.
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;
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SEC. 2. Separability Clause. - If any provision or part hereof is held invalid or
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unconstitutional, the remainder of the law or the provision not otherwise affected shall
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remain valid and subsisting.
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SEC. 3. Repealing Clause. - All laws, presidential decrees or issuances, executive
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orders, letters of instruction, administrative orders, rules and regulations contrary to
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or inconsistent with the provisions of this Act are hereby repealed, modified or
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amended accordingly.
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SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after its complete
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publication in at least two (2) newspapers of general circulation.
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Approved,