Section 5Sec./Art. 5

Contributions.---(a) It shall be mandatory for the employee to pay the monthly contributions specified in the following schedule:

Monthly Compensation

Percentage of Monthly Compensation

Payable by

EmployeeEmployer

I.

P200 or less

7.50%

10.50%

II.

Over P200 up to P3000

8.50%

9.50%

III.

Over P3000

First P3000

8.50%

9.50%

In Excess of P3000

3%

9.50%

(b) The Employer shall include in its annual appropriation the necessary amounts for its share of the contributions indicated above, plus any extra premiums that may be required on account of the hazards or risks of its employees' occupation plus the additional amounts, if any, required in the next following paragraph and shall remit the same to the System: Provided, That, if after an examination of its financial condition, the System finds that the employer cannot afford to pay said contributions in full, then it shall pay only such rates of contributions as the System may consider within its capacity to pay. In case of such reduction, the benefits payable to the member and/or his beneficiaries shall be adjusted actuarially in accordance with the rules and regulations prescribed by the System.

(c) For the amounts of pensions corresponding to the services rendered by a member prior to June Sixteen, nineteen hundred and fifty-one, increases in retirement benefits provided for in Republic Act numbers forty-nine and Presidential Decree number seven twelve, the National Government shall pay the System and in such manner as may be agreed upon by the National Government and the System.