Marcos allies join call to defer SSS contribution hike

Administration lawmakers have joined the call to defer the implementation of the increase in Social Security System contributions from 14% to 15%, saying that the timing is not right.

Baguio Representative Mark Go and House Labor panel head and Rizal Rep. Fidel Nograles made the call under House Resolution 2157 and a statement, respectively.

The solons referred to the increase as provided Under Republic Act 11199 or Social Security Act of 2018 which mandates the state-run pension firm to increase its contribution rate every two years.

Go said that the SSS could afford to suspend the increase in contributions because the pension fund's revenue increased by 15.6 percent or P353.82 billion in 2023 from P306.16  billion in 2022 per former SSS President and Chief Executive Officer Rolando Macasaet.

“There is a wide clamor from all sectors to defer the implementation of the scheduled increase in the rate of contribution for SSS for the year 2025 in consideration of the current economic situation that affects our low-income earners," Go, chairperson of the House committee on higher and technical education, said.

He pointed out the Philippine Statistical Authority's data showing that the inflation rate in December 2024 has increased to 2.9% from 2.5% in November 2024.

“The SSS should consider to defer the implementation of the supposed increase in contribution rate this year to provide our low-income earners a breathing space from the continued rising cost of commodities and services,” Go added.

Likewise, he said that the 2023 Commission on Audit (COA) audit report on SSS revealed that there is an inefficiency in the collection of premium contributions from delinquent employers with the collection only reaching P4.581 billion or 4.89 percent of the established collectibles of P93.747 billion in 2023.

COA added there are at least P89.17 billion in uncollected premium contributions from 420,627 employers.

“The inefficiency of SSS in the collection of premium contributions as revealed in the COA report should first be addressed before the government insurance agency proceeds to implement the schedule of contribution rate hike,” Go said.

Nograles, for his part, called on President Ferdinand Marcos, Jr. to suspend the SSS contribution hike “to protect workers from being further burdened with the lessening of their take-home pay.”

“We call on the President to suspend the increase because this will add to the burden of the workers and will reduce their capacity to provide for their family,” Nograles said.

SSS implemented its final increase in the monthly contribution of members starting this month in accordance with RA No.11199.

In lieu of the mandated increase, Nograles said the President could order the SSS to make its collection more efficient.

“The SSS should address systemic bottlenecks and gaps first to ensure that our collection efforts are maximized,” he said.

The SSS should also be transparent and state the full effects of a gradual increase on the pensioner’s fund life.

“If a deferment won’t lead to a significant dent to the SSS’ funds, 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,” Nograles said.

House Assistant Minority Leader and Gabriela party-list Rep. Arlene Brosas earlier called the SSS hike a cruel New Year’s present for workers.

Collectibles

Meanwhile, Senator Sherwin Gatchalian said the SSS should first collect the P93 billion collectible debts, before increasing the premium contributions of its members.

Amid this, the senator said he is eyeing to file a resolution next week or he will talk to the Senate committee on banks and financial institutions to launch a motu proprio investigation on what he deemed as a "management problem" in the SSS.

"Gusto mo magtaas ng ng contributions para makakolekta ka ng P51 billion para magamit mo sa iba't-ibang programa, pero 'yung utang sa'yo ay P93 billion. So in other words, kung makokolekta mo 'yung utang mo, hindi mo na kailangan magtaas ng contributions," Gatchalian said.

(You want to increase the contributions to collect P51 billion to fund different programs, but there are still P93 billion worth of collectibles. In other words, if you were able to collect that, you don't need to increase the contributions.)

For Gatchalian, there is a need to exercise congressional oversight over SSS and ask its management to explain its supposed failure to collect the P93 billion debt.

"Dapat papuntahin dito ang SSS at panagutin at i-explain bakit may utang sa kanila... at hindi nila kinokolekta at lumobo ito eh... 'yung mga 'di nagbabayad pinapakawala mo lang. Ang pinaparusahan ngayon ang mga nagbabayad…so di patas ang ganyan na pangyayari," he said.

(SSS should appear here in the Senate and they should explain why there are collectibles that are not yet paid. They were not able to collect the debts and now they are punishing the members. That's unfair.)

He will also ask the SSS about their investments, which he said should be the source of funds to provide the members' benefits.

"Definitely, 'yung P93 billion na utang ay isang senyales na 'yan na may management problem at dapat makolekta 'yang P93 billion na 'yan," he said.

(Definitely, the P93 billion debt is a sign that there is a management problem and that amount should be collected.)

"Magpo-focus ako doon sa management side. Tignan natin kung ang management ay efficient, nagpe-perform at tingnan din  natin kung ang investment nila ay maganda ang ibinibalik sa miyembro. Theoretically nga dapat ang investment ang nagbabayad sa mga benepisyo hindi ka na dapat magtaas," he said.

(I will focus on the management of the SSS during the investigation. Let's see if the management is efficient and performing, and if their investments benefit its members. Theoretically, the investments should pay for the benefits and the SSS contributions should not be increased.)

SSS has defended the scheduled contribution increase, saying it will safeguard the fund life of the state-run pension fund. —LDF, GMA Integrated News