Employers appeal for deferment of SSS, PhilHealth contribution hike

Employers are seeking to postpone the anticipated increase in contributions to the Social Security System (SSS) and Philippine Health Insurance Corporation (PhilHealth) in 2023 given that businesses are just recovering from the effects of the pandemic.

According to Maki Pulido's report on "24 Oras," by 2023, the SSS contribution will be increased by 1% from 13% to 14%.

For example, with a salary of P30,000 per month, from a P3,900 SSS contribution, it will be P4,200 or an additional charge of P300, which will be shouldered by the employer.

This is due to the increase of employers' share by 1% - from 8.5% to 9.5% - while the employees' share will remain at 4.5%.

In January 2023, for a P30,000 salary, the employer's contribution will be P2,850, and the employee's contribution will remain at P1,300.

The gradual increase in SSS contribution is under Republic Act No. 11199, or Social Security Act of 2018, which Former President Rodrigo Duterte signed to raise the contribution to 15% by 2025.

The increase favors most SSS members, but some employers, such as the Employers Confederation of the Philippines (ECOP), are asking for its postponement.

“Ninety percent of our enterprises are micro. Eh 50% diyan, nagsara during pandemic, maraming hindi pa nagbubukas. Nadi-discourage tuloy magbukas yung iba” said Sergio Ortiz-Luis, ECOP President.

Meanwhile, PhilHealth's contribution will increase to 4.5% from 4%.

This means if you earn P10,000 monthly, from P400 contribution will increase to P450. The fee will be divided between the employer and the employee.

The increase in this charge is based on the universal healthcare law that aims to increase the PhilHealth contribution until it reaches 5% by 2024.

"The increase in contribution will help fund additional benefits that we are crafting now," said PhilHealth spokesperson Dr. Shirley Domingo. — Sherylin Untalan/DVM, GMA News