The Employers Confederation of the Philippines sought he intervention of President Ferdinand Marcos Jr. for the postponement of the planned hike in contributions by the Social Security System and the Philippine Health Insurance Corporation saying employers are still reeling from the skyrocketing inflation of goods and services.

"I hope the President will hear us this time," he said, adding that the request was sent to the House of Representatives and Malacanang Palace last year, but was not tackled by the previous administration.

The SSS is keen on increasing contributions by one percent while PhilHealth wants a 0.5 percent hike.

Last year, he said his group went to Congress and the lawmakers issued an authority to the President that he may adjust or postpone the increase.

"Unfortunately, President Duterte has not acted upon it. From what I have heard, they said that if the increase will not be implemented by 2022, the corporate and actuarial life of the contribution funds will be lessened," he told the Daily Tribune.

Although the incremental fees to be shouldered by employers would not mean terminating some members of their workforce, Ortiz Luis said the measure may cut the take-home pay of employees.

"I don't think magkakaron ng tanggalan, hindi naman aabot sa ganun (There won't be layoffs). But the increase would surely hurt employers, especially those running small businesses, or micro, small and medium enterprises. Maybe it is possible to hold off the increase. Hopefully, the President can postpone it. Industries, particularly the manufacturing industry, are suffering from high inflation and global economic downturn," Ortiz Luis Jr. added.

Inflation hit 8 percent last November, according to the Philippine Statistics Authority.

Surging prices

Ortiz-Luis said surging prices also result in underemployment or more workers needing more jobs and job hours to make ends meet.

On Thursday, SSS President and CEO Michael Regino clarified that such an increase in SSS contribution will be borne by employers and not by workers, which will start January 2023, based on the SSS Law or Republic Act 11199.

A one-percent contribution increase is imposed on SSS members every two years beginning 2019 until 2025, based on RA 11199. Meaning, the SSS members' contribution rate will increase to 13 percent beginning January 2021 from a contribution rate of 12 percent in 2020.

But in May 2021, President Rodrigo Duterte signed Republic Act (RA) 11548 granting him the power to defer the increases in premium contributions for 2021, as the country back then was still under a state of calamity" due to the coronavirus disease pandemic.

"This means that if a member receives P35,000 monthly, P4,200 will be his monthly contribution starting January 2023 from the previous P3,375," Regino said.

The increase in contributions will benefit members because forced savings on their contribution will be automatically added to their retirement benefits, Regino explained.

For the part of PhilHealth, 0.5 percent will be an increase in the contribution from the current 4 percent, or 4.5 percent starting January 2023.

For example, if the worker's salary is P10,000, the contribution will increase by P450 from P400, while if the worker's salary is higher than P10,000 to less than P80,000, the additional contribution will be from P50 to P850 of PhilHealth members.

"If it is P90,000 and above, only one payment will be made, P4,050 a month so if you are employed, you and your employer will split by 50 percent," PhilHealth spokesperson Shirley Domingo said.

Domingo said the increase in contribution to PhilHealth is to enhance the benefits received by its members.