House of Representatives plenary. INQUIRER FILES
MANILA, Philippines — A resolution urging the Social Security System’s (SSS) policy body to defer the implementation of the scheduled contribution rate hke to ease Filipinos’ burden on increasing costs due to inflation was filed before the House of Representatives.
Baguio City Rep. Mark Go filed House Resolution (HR) 2157 on Tuesday afternoon, seeking the suspension of a 15 percent contribution hike.
fafa191 slot Article continues after this advertisementA copy of the resolution was released to the media on Wednesday.
FEATURED STORIES NEWSINFO Isko Moreno surges ahead of Lacuna and Verzosa in mayoral polls NEWSINFO VBank to take center stage in grand launch NEWSINFO Rain to prevail in 13 areas in Luzon, Visayas due to shear line, amihanSSS contribution rate is scheduled to increase 15 percent this month from 14 percent in 2024. This marks the final tranche of hikes under Republic Act (RA) No. 11199, which began in 2019.
Go said the suspension would “provide low-income earners a breathing space from the continued rising cost of commodities and services.”
Article continues after this advertisementHe pointed out that SSS’ revenue grew in 2023 by 15.6 percent to P353.82 billion from P306.16 billion in 2022. With this, Go said the agency could afford the suspension.
Article continues after this advertisementGo also pointed out that the SSS only collected 4.89 percent, or P4.581 billion of the P93.747 billion total established collectibles from delinquent employers in 2023.
Article continues after this advertisement“This is equivalent to P89.17 B of uncollected premium contributions from 420,627 employers,” he said, adding that this inefficiency should be addressed first before SSS proceeds to the scheduled hike.
In a separate statement also on Wednesday, the House committee on labor and employment and Rizal 4th District Rep. Fidel Nograles joint appeals to President Ferdinand Marcos Jr. to defer the scheduled increase.
The rate cut, the Fed’s first in more than four years, reflects its new focus on bolstering the job market, which has shown clear signs of slowing. Coming just weeks before the presidential election, the Fed’s move also has the potential to scramble the economic landscape just as Americans prepare to vote.
Article continues after this advertisementHe said that Marcos “could order the SSS to make its collection more efficient and effective first.”
“The SSS should address systemic bottlenecks and gaps first to ensure that our collection efforts are maximized,” the lawmaker pointed out.
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“If a deferment won’t lead to a significant dent [in] the SSS’ fundslegendplay, perhaps it is more judicious to choose compassion and empathy for our fellow Filipinos instead of implementing the contribution hike right this year. Maybe we can do a gradual increase so that the Filipino worker can cope much better,” he explained.
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