SENATE deputy minority leader Risa Hontiveros wants the Senate to determine the impact on wage earners of the one percent increase in monthly Social Security System (SSS) contributions that takes effect starting this month.
In filing Senate Resolution No.1269, Hontiveros said senators should assess how the increase would affect the economic well-being of working-age Filipinos especially amid the rising prices of basis commodities.
She said that pushing through with the contribution hike “could worsen the financial burden of ordinary wage earners and certain segments of the middle class,” whom she said suffered major financial setbacks during the COVID-19 pandemic.
She also cited the latest Social Weather Stations’ survey which showed that 63 percent of Filipinos considered themselves as poor in the last quarter of 2024.
Hontiveros, noting that the increase in SSS contributions was approved in 2018, more than a year before COVID-19 hit the whole world, called on the agency to further study the contribution hike “to balance the interests of ordinary workers and the actuarial life of the state insurer.”
“Huwag muna nating ipatupad ang SSS contribution hike habang pinag-aaralan natin ito ulit (Let us not implement the SSS contribution hike while we are reviewing it again),” she said.
She also noted SSS’ record investment earning of over P100 billion in 2024.
“The SSS, given its current financial position, is apparently capable of deferring the increase, with the National Government perhaps stepping in to provide funds to meet the pension system’s expenses,” she said.
The one percent premium increase brings the contribution rate to 15 percent from the previous 14 percent pursuant to Section 4 (a) (9) of RA 11199 or the Social Security Act of 2018.
The increase is expected to generate P51.5 billion to support SSS’ social security programs and benefits.