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TRUTH VERIFIER

Why did the SSS chief resign—to run for a House seat?

SSS president and chief-executive-officer Rolando Macasaet. (Photo from the Philippine News Agency)

10/5/24, 4:01 AM

By Tracy Cabrera

The estimated total annual pay range for an executive vice president of the Social Security System (SSS) is ₱4.2 to ₱4.5 million, which includes base salary, additional pay, cash bonus, stock, commission, profit sharing and at times, tips.

So when the filing of certificates of candidacy (CoCs) began last October 1, there were those who were surprised that the head of the state-run pension fund tendered his resignation to vie for a seat in the House of Representatives in the upcoming midterm elections in May next year.

In a letter, SSS president and chief-executive-officer Rolando Macasaet told President Ferdinand Marcos Jr. that he is tendering his irrevocable resignation effective on November 15 to give way for the filing of his certificate of nomination and acceptance as nominee of the SSS-GSIS Pensyonado (SGP) party-list.

As such, his tenure as the 20th president and CEO of SSS since January 0f 2022 involuntarily ends by operation of law.

In his decision to run for an elective position, Macasaet rationalized that having a firm understanding on how the national pension system works, as well as the limitations of such institutions, he believes that as a lawmaker who would be able to help legislate measure that would address issues and concern regarding the country’s premier pension fund through legislative representation.

However, some sectors are questioning Macasaet’s decision, asking why leave a position of entitlement that draws at least four million pesos of compensation per year and choose an elected position government that is given only a monthly salary of ₱285,813?

This has drawn the attention of most in querying about the actual earnings of our government officials—whose qualifications are relatively easy (Filipino citizen and resident, of a certain age, registered voter, able to read and write)—and earn a significant amount of money, which is a stark contrast to what the average Filipino gets working eight hours a day, six days a week.

According to the Philippine Statistics Authority (PSA), the average annual family income for 2023 was around ₱353,000. That's equivalent to about ₱29,400 per month, not yet taking into account the number of breadwinners in the household. In Metro Manila, the daily minimum wage is ₱645, or ₱12,900 monthly, as of July 2024.

So, just how much do elected officials earn?

Government officials earn through a compensation plan under the Republic Act No. 6758 or the Compensation and Position Classification Act of 1989, which determines the salary grade (SG), which represents a level of difficulty and responsibility of work.

There are 33 SGs, with each one having eight salary steps, except for SG 33 (president) which has only one step. The steps account for pay increases in relation to the length of service in the position, with the first step being the starting pay and the eighth step being the maximum rate.

The SG represents full compensation for full-time employment in a 40-hour workweek regardless of where the work is performed.

The latest salary schedule for government officials can be found on the Department of Budget and Management (DBM) website.

For 2025, these are the elective positions and their corresponding SG, according to the DBM:

National

Senator – SG 31 (starts at ₱285,813);

Senate President – SG 32 (starts at ₱339,921);

House of Representatives member – SG 31 (starts at ₱285,813);

House Speaker – SG 32 (starts at ₱339,921);

Local

Provincial Governor – SG 30 (starts at ₱196,199);

Provincial Vice Governor – SG 28 (starts at ₱154,320);

Sangguniang Panlalawigan member – SG 27 (starts at ₱136,893);

City Mayor – SG 30 (starts at ₱196,199);

Municipal Mayor II – SG 28 (starts at ₱154,320);

Municipal Mayor I – SG 27 (starts at ₱136,893);

Municipal Vice Mayor II – SG 26 (starts at ₱121,146);

Municipal Vice Mayor I – SG 25 (starts at ₱107,208);

Vice Mayor II – SG 28 (starts at ₱154,320);

Vice Mayor I – SG 26 (starts at ₱121,146);

Sangguniang Panlungsod member II – SG 27 (starts at ₱136,893);

Sangguniang Panlungsod member I – SG 25 (starts at ₱107,208);

Sangguniang Bayan member II – SG 25 (starts at ₱107, 208); and

Sangguniang Bayan member I – SG 24 (starts at ₱94,132).

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