Philippine’s Insurance Company SSS had recorded a lower net income compared to what they had before- an increase in their expenses and a decrease in their income.
Citizens of the country often rely on the pension given by SSS. As they pay their contributions, they expect to get something in return- benefit payments, which is indeed the purpose of being a member of the company.
Recently, the pension rate of each citizen has increased and the number of people availing the latter rose as well.
An increase to PHP88.6 billion from PHP86 billion on the company’s benefit payments may be good for the country but, as of now, SSS is trying to cope with it. Aside from that the insurance company also had to worry about its personnel’s wages, not to say, has also increased. As a result, the expenditure of the insurance company went up by about 3 percent from the previous year- from PHP90.5 billion to PHP93.9 billion.
The insurance company had recorded a PHP96.78 billion worth of total revenue in June which was higher than what they had last year- PHP 96.76. But after that, the company had faced quite a crisis after having a decrease of 55% in their net income.
Thus, one solution that the company sees fit with the situation is to increase the contribution rate of its members as well. It would take a lot of processes to approve this plan, but if it is the only way to gain what the company had lost, it would be worth it. Not only that it would benefit them but will also help them provide the right services for their customers.
SSS had thought of many solutions that will help them address the problem on hand but whatever they decide on, hopefully, would be a win-win situation for them, their employees and their members.