MANILA, Philippines - Instead of passing on the financial burden to workers, the government should subsidize the impending increase in the monthly pension of retired Social Security System (SSS) members.
The Federation of Free Workers (FFW) made the appeal yesterday as its president Sonny Matula pointed out that the Duterte administration could learn from the practices of neighboring Thailand and Vietnam.
“If there is a need to increase contributions to sustain SSS funds, then the government should also contribute just like what the governments of Thailand and Vietnam did. The Philippine government has no contribution to the SSS except for the initial P500,000 fund it gave in 1954,” Matula said.
Congress earlier approved a P2,000-per-month hike in SSS pensions, but Duterte only allowed half of it this year until 2022, when the proposed increase would be given in full.
Former president Benigno Aquino III rejected a similar proposal, saying it would lead to a crisis in the agency that provides security among the private sector workers, aside from burdening taxpayers.
While the FFW welcomed the increase as authorized by Duterte, it argued that this should not be passed on or borne by those currently working in the private sector alone.
“The FFW is of the opinion that there is no need for a corresponding increase in contribution as the law itself provides that such (pension) increase shall not require any increase in the rate of contribution,” Matula noted.
He added that the government should provide the subsidy as required by the SSS law and which several past administrations have failed to comply with in the past several years.