Soco asks SSS: Suspend contribution rate hike

CEBU, Philippines — The increased rates on contributions of members of the Social Security System (SSS) would translate to more burden to the members of the state-run social insurance, according to a top official of the Cebu provincial government.

Sixth District Board Member Glenn Anthony Soco condemned such increase in contributions. He called on the SSS to suspend the implementation of the contribution rate hike of SSS members, describing it as “untimely", “unconscionable”, and “unjust."

In January this year, the SSS implemented a one percent contribution rate hike from 14 percent to 15 percent, under the provisions of the Republic Act (RA) 11199 or the Social Security Act of 2018.

Soco, in his resolution set to be refiled before the Provincial Board during its regular session tomorrow, said the increase in contribution is hurting its members.

Soco said he sympathized with the struggling workers “who are earnestly working on very meager paychecks, who, just the same, had to endure the mandatory and automatic deductions from their pay slips.” He said workers had to suffer another reduced take-home pays with the newly implemented rate hike by the state-run social insurance program.

Aside from the workforce, employers who also share in their employees’ contributions will be affected.

The rate hike also damages the micro, small, and medium enterprises, which are working on slim income margins, said Soco.

“Most, if not all of the business establishments, big or small, are still recovering from the severely adverse economic conditions affecting on a global scale due to the pandemic, the natural calamities, which struck the country in the past years, continuing inflation, etc.,” Soco said.

He also pointed out that the rate increase does not directly affect the members as “there’s no increase in the benefits."

In its statement early this year, the SSS explained that the contribution rate is among the important reforms under RA 111999 that aims to ensure the long-term viability of the SSS.

With the increase, the collection will also add a P51.5 billion in 2025, wherein 35 percent of which, or P18.3 billion, will go directly to the Mandatory Provident Fund (MPF) accounts of SSS members.  — (FREEMAN)