House reso seeks suspension of SSS contribution hike

A senior lawmaker called on President Ferdinand Marcos Jr. on Friday to exercise his interference power and suspend the scheduled increase in Social Security System (SSS) contributions, which has sparked public outrage, with claims that it would create another financial burden for them.

Cagayan de Oro Rep. Rufus Rodriguez filed House Resolution 2161 in an attempt to defer the one-percent contribution rate hike in SSS, set to take effect this month. Rodriguez cited the "growing opposition to the scheduled increase in consideration of the current economic situation in the Philippines."

The lawmaker lamented that the looming increase "will be an additional burden to employers and employees who are struggling to make ends meet."

The mandatory premium contribution adjustment is required under Section 4 of the Republic Act (RA) 11199, also known as the Social Security Act of 2018. The set increase this month is the final tranche of a series of contribution rate hikes, which began at 12 percent in 2019 before rising to 15 percent this year.

The President is empowered to halt increases in contributions to SSS under RA 11548, but only during a state of calamity, such as the Covid-19 pandemic.

Despite the growing clamor, Malacañang announced that it would not interfere with the affairs of the SSS, claiming that it could have a "negative impact" if they always heed such calls.

Additionally, it maintained that the "increases are well-studied and based on actuarial considerations" of the SSS.

Rodriguez, however, asserted that the SSS must first address its collection insufficiency "before proceeding with the increase."

A report from the Commission on Audit showed that the state insurer only collected 4.89 percent, or P4.58 billion, of the P93.747 billion total established collectibles from delinquent employers in 2023.

A similar resolution was filed earlier this week by Baguio Rep. Mark Go, arguing that the "suspension would provide low-income earners a breathing space from the continued rising cost of commodities and services."