By Gabriel Kim Leal
(January 4, 2025) – A former chief of the Social Security System (SSS) on Saturday called on Pres. Bongbong Marcos Jr. to suspend the implementation of the increase in contribution rate to 15%.
In a statement, Rolando Macasaet cited the public’s opposition and the need to ease the burden on members.
“We call on Malacañang to ask the SSS Board to temporarily suspend the implementation of any premium increases,” said Macasaet, as quoted by the Philippine News Agency.
Starting this year, SSS will implement a 15% contribution rate, up from 14% in 2023.
This is part of Republic Act No. 11199 or the Social Security Act passed in 2019, which requires incremental increases every two years to ensure the pension fund’s sustainability. The final hike is set this year.
SSS defended the adjustment, saying it was necessary to maintain the agency’s solvency. Some sectors, however, opposed the move as it adds financial pressure on workers and employers.
For the 15% contribution rate, employers will shoulder 10%, while employees will contribute 5%.
In the first half of 2024, SSS reported a record high of 2.4 million new members.
Macasaet, who served as SSS president from May 2023 until his resignation last October to run as a party-list representative, noted the state insurer’s strong financial position, reporting an income of over P80 billion in 2023 and exceeding P100 billion in 2024.
“The temporary suspension or gradual implementation of the Social Security Act of 2018 will not burden our hard-working SSS members and will not significantly affect the fund life of the SSS,” added Macasaet.
On Friday, Gabriela Party-list Rep. Arlene Brosas also called for the suspension of the increase, calling it a “cruel New Year’s gift” to Filipinos.
Former lawmaker Neri Colmenares had a similar call, deeming the move “absolutely unconscionable.”
(PM)
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