A LABOR alliance on Monday asked President Ferdinand R. Marcos, Jr. to defer the planned 1% increase in Social Security System (SSS) premiums scheduled to take effect this month, citing the hike is unjustified given the government’s failure to fulfill its legal obligation to contribute to the SSS fund.
Nagkaisa Labor Coalition Chair Jose Sonny G. Matula said in a 3-page letter that the government’s failure to fulfill its obligation under the Social Security Act of 2018 (Republic Act No. 11199) to provide direct financial contributions to the SSS fund has shifted the financial burden onto employers and employees.
Apart from the postponement of the hike, the group urged the government to “fulfill its obligation to contribute to the SSS fund as mandated by Section 20 of RA 11199.”
It is also seeking the passage of the P150 wage hike in Congress to “provide immediate economic relief to Filipino workers.”
SSS earlier announced it is implementing a 1% contribution rate hike starting January 2025, bringing the contribution rate to 15% from 14%.
“The timing of the premium hike, while provided for under the law, is especially unjustified given the government’s failure to fulfill its obligations under the same law despite its capacity to contribute, coupled with the soaring cost of rice and the looming increase in transport fares that worker[s] will be shouldering,” the letter addressed to Mr. Marcos read.
It noted the stalled legislated wage increase in the House of Representatives, as the Senate in 2024 approved a P100 wage hike.
“The incremental wage increases, even if implemented, fall short of addressing the increasing cost of living and widening wage gaps faced by millions of Filipino workers,” it added.
It cited SSS’s robust financial performance, with record-breaking incomes of P80 billion in 2023 and P100 billion in 2024, highlighting the agency’s financial stability and negating the immediate need for a premium hike.
Under Section 4 of RA 11199, the SSS Commission has the authority to defer contribution increases in light of prevailing economic conditions. The group urged the government to exercise this provision, given the financial hardships faced by the country’s workforce.
“The government’s consistent failure to fulfill its legal obligation to contribute to the SSS fund undermines the principles of social justice and shared responsibility.” — Chloe Mari A. Hufana
