The state-run pension fund Social Security System (SSS) on Wednesday said it will push ahead with the scheduled increase in the members’ monthly contribution rate to 13 percent from 12 percent in January 2021.

Finance Secretary and Social Security Commission Chairman Carlos Dominguez III said the monthly contribution will not exceed the prescribed maximum monthly salary credit (MSC).

For Kasambahay and Overseas Filipino Workers (OFW) members, however, the minimum MSC will remain at PHP1,000 and PHP8,000, respectively.

This means that the minimum MSC will be raised to PHP3,000 from PHP2,000, and up to PHP25,000 from PHP20,000 for the maximum MSC.

The move, according to Dominguez, “will offset the adverse financial impact of the PHP1,000 pension increase granted in 2017”.

“Any drop in collections may lead to cash flow and liquidity issues. This could endanger the SSS’ ability to provide its members and their beneficiaries with benefits and loan privileges,” said Dominguez, adding the hike in contribution rate is in pursuant to the restructured rates and other reforms stipulated in Republic Act (RA) No. 11199 or the Social Security Act (SSA) of 2018.

The law, he said, ” will expand its coverage and provide more and higher benefits for its current and future members and their beneficiaries.”

The full implementation of the SSA will take effect by 2025.