Lawmakers push to delay 2025 SSS contribution hike amid economic challenges
Paulo Gaborni January 15, 2025 at 07:44 PM
MANILA — Lawmakers have urged the Social Security System (SSS) to postpone its planned increase in member contributions, citing the financial strain on wage earners amid high inflation and rising living costs.
Senator Risa Hontiveros filed Senate Resolution No. 1269, calling for an investigation into the impending hike. She argued that the timing was inappropriate, as many Filipinos are still financially recovering from the pandemic.
“While workers’ earnings have continued to lose value over the years, the investment earnings of the SSS have steadily increased. Where will this huge profit go?” Hontiveros said in a statement.
“Many of our citizens still lack savings due to the pandemic, and their earnings have been devalued further by inflation. The SSS should not reduce their already small take-home pay with this contribution increase,” she added.
Hontiveros emphasized the need for a deeper review to balance the financial sustainability of the SSS with the welfare of ordinary workers. “The SSS should remain a lifeline in times of need, not an added weight that drags its members down,” she stressed.
Senator Bong Go echoed these concerns, warning that the increase could place additional pressure on workers and small businesses already struggling economically.
“I urge the government’s finance managers to thoroughly assess and consider this proposal to unburden the poor while not compromising the benefits they can expect from SSS,” Go said.
“Kung ako tatanungin, pabor ako na pansamantalang huwag munang ipatupad ang pagtaas sa SSS contribution ngayong taon na inaasahang magiging 15% base sa suweldo ng mga manggagawa sa pribadong sektor,” he added.
Former SSS Head Backs Proposal
Former SSS President Rolando Macasaet also supported calls to delay the rate hike, suggesting that temporarily halting or implementing the increase gradually would not significantly affect the fund’s financial health.
Macasaet highlighted the agency’s strong performance, citing an income of over PHP 100 billion in 2024. “Given the current economic climate, a delay in the increase would provide much-needed relief to SSS members,” he said.
Malacañang Maintains Support for Contribution Hike
Despite opposition from lawmakers, Malacañang reaffirmed its support for the scheduled SSS contribution increase, emphasizing that the adjustment was based on extensive planning and actuarial studies.
Executive Secretary Lucas Bersamin dismissed calls for an immediate suspension, stating that the government had not received an official request to review the increase.
“We cannot arbitrarily halt these adjustments. The SSS has a respected actuary, and their expertise must be trusted,” Bersamin said.
The planned contribution hike is part of Republic Act (RA) 11199, or the Social Security Act of 2018, which mandates periodic increases in SSS premiums to strengthen the pension fund’s financial stability.
Since its implementation in 2019, contribution rates have gradually risen from 12% to 14%. In 2025, the rate is set to reach 15%, with employers covering 10% and employees contributing the remaining 5%.
📷 SSS