2 Cebu groups slam SSS contribution hike

Local

TWO Cebu-based labor groups have denounced the Social Security System's (SSS) decision to raise premium rates to 15 percent, arguing it will worsen the financial strain on workers and businesses already grappling with economic hardships.

Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) criticized the premium hike as ill-timed and unjust, saying it shifts the burden of systemic issues onto Filipino workers.

The group pointed out that inflation continues to drive up the cost of basic goods and services while wages remain stagnant.

Sentro urged the government to suspend the increase and instead focus on addressing corruption and improving the collection of delinquent contributions.

Additionally, Alyansa sa mga Mamumuo sa Sugbo-Kilusan Mayo Uno (Ama Sugbo-KMU), also expressed concern over the impact on workers’ income and small businesses.

According to its chairman, Jaime Paglinawan, the premium hike would significantly reduce take-home pay for many employees and impose additional expenses on micro, small, and medium enterprises (MSMEs).

He noted that some workers might be left with barely enough to cover their basic needs.

The premium increase, implemented on January 1, 2025, applies to all workers, including business employees, household workers, self-employed individuals, and overseas Filipino workers (OFWs).

The government defended the move, saying it was necessary to ensure the pension fund's long-term sustainability.

However, labor groups argued that the SSS should first address the issue of uncollected contributions.

Paglinawan highlighted that nearly P90 billion in contributions remain unpaid by delinquent employers.

While the SSS reported a reduction in uncollected contributions from P92 billion in 2022 to P56 billion in 2023, Paglinawan called for more aggressive efforts to hold employers accountable.

Both Sentro and Ama Sugbo-KMU urged workers, unions, and their allies to resist policies they see as unjust.

Sentro emphasized that the fight extends beyond the premium hike and is about protecting the rights and dignity of every Filipino worker.

The groups also reminded the SSS to fulfill its promise of an additional P1,000 pension increase, which remains partially implemented.

They stressed that the government should act decisively to address workers' concerns and ensure that the SSS operates efficiently without placing undue financial strain on its members.(MyTVCebu)