The Employers Confederation of the Philippines (ECOP) is renewing calls for the suspension of the implementation of the increase in contribution of Social Security System (SSS) premiums in the light of the pandemic.
In his 2021 report, ECOP president Sergio Ortiz-Luis said the Office of the President has yet to release an issuance deferring the implementation of the premium hike.
ECOP earlier wrote a letter to the Office of the President calling for the issuance of an executive order that will implement Republic Act No. 11548, a law signed in May 2021 that grants the President of the Republic the authority to postpone the enforcement of the 1-percent increase in premium contribution of the SSS which took effect last January 2021.
A statement was earlier made in January 2021 urging the SSS to suspend the imposition of the premium increase due to the financial constraints brought about by the new coronavirus disease 2019 pandemic.
A one-percent contribution increase is imposed on SSS members every two years beginning 2019 until 2025, based on RA 11199 or the Social Security Act.
This increased the SSS members’ contribution rate to 13 percent beginning January 2021 from a contribution rate of 12 percent in 2020.
Of this, 8.5 percent is shouldered by the employer.
However, RA 11548 includes a new phrase that states that “the implementation of one-percent 2021 increase in contribution rates and the monthly salary credits provided in this section may be suspended by the President of the Philippines for the duration of the state of calamity under Proclamation No. 929.”
ECOP and other entities were able to secure the temporary suspension of the planned premium hike for 2021 by the Philippine Health Insurance Corp.
The group also obtained approval in principle from the Home Development Mutual (Pag-IBIG) Fund of a penalty condonation and a longer payment plan for business owners which were not able to settle all outstanding obligations with the Fund since the pandemic.
Implementation documents are being finalized by Pag-IBIG, ECOP said in the report.
The group, however, lauded the swift and timely action of Pag-IBIG in deferring the planned increase in premium contributions which would have taken effect on Jan. 1, 2021. – Irma Isip
