Another solon joins call to suspend SSS rate hike
Another House lawmaker has called on President Marcos to suspend the implementation of the increase in the Social Security System (SSS) premium contribution for millions of private sector employees that will take effect this month.
Cagayan de Oro Rep. Rufus Rodriguez filed House Resolution No. 2161, urging Mr. Marcos to reconsider his decision not to exercise his power to defer or reschedule the upcoming contribution rate, as the one-percentage point increase “will be an additional burden to employers and employees who are struggling to make ends meet.”
Rodriguez cited the report of the Philippine Statistics Authority, which showed that inflation rate jumped to 2.9 percent in December 2024 from 2.5 percent the previous month.
“There is growing opposition to the scheduled increase in consideration of the current economic situation in the Philippines,” Rodriguez said in his resolution.
“Higher inflation can lead to a loss of purchasing power and increasing SSS contributions will be an additional financial burden especially to employees,” he added.
Rate adjustments
Other lawmakers have also joined the call to defer the upcoming increase to 15 percent, up by 1 percent, especially amid a new Social Weather Stations survey that indicated that self-rated poverty had hit a record high.
Reps. Rodriguez and Mark Go (Baguio) were the first to file resolutions opposing the mandated increase under Section 4 of Republic Act No. 11199, or the Social Security Act of 2018.
Under the law, premium contribution was pegged at 12 percent of a contributor’s monthly salary from 2019 to 2010; 13 percent from 2021 to 2022; and 14 percent from 2023 to 2024. The rate will be adjusted to 15 percent starting this year.
The senior lawmaker urged the SSS to first fix its inefficiencies in collecting premiums and to disclose the enormous bonuses and compensations for its officials before proceeding with the increase.
Rodriguez added that SSS’s revenue has amounted to P353.82 billion, which was higher than that of the previous year. Meanwhile, the pension system’s 2023 net income reached P83.13 billion, exceeding its target of P51.06 billion.
He also highlighted the 2023 report of the Commission on Audit, which showed “an inefficiency in the collection of premium contributions from delinquent employers.”
“The audit report shows that only P4.581 billion was collection, which is only around 4.89 percent of the established collectibles of P93.747 billion for 2023,” he said.
