MANILA - President Rodrigo Duterte has approved a pension increase for Social Security System (SSS) members, which will be funded with an increase in contributions, officials said Tuesday.
Starting May 2017, contributions will be increased by 1.5 percent, bringing the contribution range to P15 to P740, Presidential Spokesman Ernesto Abella said.
Abella did not immediately say when the P2,000 increase would take effect. The increase will be shouldered "equally" by employees and employers, he said.
Duterte's economic managers had warned against an increase that is funded with taxpayers' money, saying it would shorten the life of the fund and endanger the country's sovereign debt ratings.
Duterte promised to increase SSS pensions when he campaigned for the presidency last year. His predecessor, Benigno "Noynoy" Aquino III, vetoed a legislated adjustment.
SSS management planned to give the increase in two equal tranches, the first of which, was scheduled to be given this month.
SOURCE: ABS-CBN