SSS to continue contribution hike despite opposition

National

THE Social Security System (SSS) will proceed with its plan to increase its members' contributions this year despite calls to defer the hike.

The SSS says delaying the implementation affects future assistance given to the members, especially during emergencies like calamity loans.

Last year, SSS released P9.8 billion worth of calamity loans for 500,000 members affected by several typhoons like Kristine, and Carina.

“So, if you delay this increase, (it is) not only the members who will suffer but also the capacity of the SSS to help in times of need,” SSS president and chief executive officer Robert Joseph de Claro said in a press briefing at Malacañang.

Labor groups earlier joined the calls for the state-run pension insurance to delay the mandated increase in the contribution of its members, saying the timing of the hike was “inappropriate,” especially since the lawmakers failed to pass legislation to increase the minimum wage of private employees.

“The deferment of the premium hike is a practical and compassionate response to the current economic reality faced by workers,” Nagkaisa Labor Coalition, the biggest alliance of labor groups and workers organizations in the country, said in an Inquirer report.

The group said the contribution hike gives an additional burden to workers, especially minimum wage earners, considering that inflation continues to surge with prices of basic commodities also increasing, but salaries have been stagnant.

SSS started the 15 percent increase in the contribution of its members this year from the 14 percent increase last year is the last tranche, as part of the Republic Act 11199 or the Social Security Act of 2018, mandating the SSS to increase its contribution rate every two years with the final increase in 2025.

With this, an SSS member with P10,000 salary per month, will have to pay P1, 500 SSS contribution, shared by his employer.

Executive Secretary Lucas Bersamin also emphasized that the contribution hike would help expand the SSS members’ benefit, defending that the decision to increase has been “studied well.”(LAO)