Imee wants SSS, GSIS, PhilHealth, Pag-IBIG contributions suspended amid oil crisis

Senator Imee Marcos on Friday called for the temporary suspension of government-mandated contributions and loan moratoriums on workers' salaries amid the state of national energy emergency triggered by the worsening oil crisis. 

This shall cover the Social Security System (SSS), Government Service Insurance System (GSIS), PhilHealth, and Pag-IBIG collections from the monthly salary of employees in view of the persistent surge in fuel prices, which is expected to push inflation to unprecedented levels in the months ahead.

“Let us suspend salary deductions for now and release their wages in full, so they may somehow keep pace with the galloping rise in the cost of living,” the opposition senator said. 

Like farmers, fisherfolk, and PUV drivers, Marcos said employees and small businesses are also severely affected by the oil crisis, driving up prices of basic goods and transportation costs, while wages remain stagnant and outpaced by inflation. 

Department of Economy, Planning, and Development Secretary Arsenio Balisacan projected that inflation could hit between 7.4 percent and 8.9 percent this month or spike as high as 14.3 percent under the worst-case scenario in the coming months, or when crude oil reaches $200 per barrel for an average of 180 days.

The projection is significantly higher than the 2.4 percent logged in February.

Economists have warned that the prolonged global oil supply disruption caused by the United States-Israel war on Iran could lead to prices of basic goods and services jacking up due to higher operational costs. 

Although some of them opposed the clamor for a wage increase to help workers cope with the soaring prices, noting that salary adjustment at this time of crisis could disrupt businesses and may force small enterprises to shut down, possibly resulting in job loss. 

Due to this, Marcos proposed that the mandatory salary contributions be postponed instead to provide relief to workers until the economy recovers from the inflationary impact of the oil crisis.

“The crisis in gasoline and crude oil adds to the daily burden of every Filipino, especially our workers. It is only right that we give them at least a month or more of relief in paying their obligations,” Marcos said.

Similar measures, she added, had already been undertaken during the Covid-19pandemic and in the aftermath of past calamities.