Opposition mounts vs SSS premium hike

MANILA, Philippines — Opposition to the scheduled increase in member contributions to the Social Security System (SSS) mounted over the weekend as a group of teachers and a former chief executive of the pension fund asked President Ferdinand Marcos Jr. to defer the premium hike.

“This proposed SSS contribution increase is the height of government insensitivity,” said Jonathan Geronimo, secretary general of the Alliance of Concerned Teachers Private Schools.

READ: Colmenares calls for suspension of SSS contribution hike

“The Marcos administration appears more interested in padding its confidential funds than ensuring social services and people’s welfare,” Geronimo said, adding that the premium hike will “further erode their already insufficient take-home pay.”

He said private school teachers and other private employees were already suffering from inflation, high utility costs, and the increase in premiums of the Philippine Health Insurance Corp. (PhilHealth).

Geronimo urged the president to defer or reschedule the implementation of the hike in contributions mandated by Republic Act No. 11199, signed by then-President Rodrigo Duterte in 2018.

RA 11199, meant to ensure the fund’s long-term viability, increased member contributions from 12 percent in 2019 to 13 percent in 2020, 14 percent in 2023, and 15 percent this year.

For the 15 percent contribution rate this year, 10 percent will be shouldered by the employer, while the employee pays the remaining 5 percent.

Repeated complaints

Aside from employees, employers have also complained about the contribution increase and another law, RA 11548, was passed to empower the president to suspend the contribution increase.

Among the groups that objected to RA 11199 were the following:

• Philippine Chamber of Commerce and Industry


• Employers Confederation of the Philippines


• Philippine Exporters Confederation Inc.


• Federation of Filipino-Chinese Chamber of Commerce and Industry


• Makati Business Club


• Management Association of the Philippines


• Trade Union Congress of the Philippines


• Federation of Free Workers


• Sentro ng mga Nagkakaisa


• Progresibong Manggagawa and Partido Manggagawa

“[But] these changes are designed to strengthen the Social Security System and enable it to give better benefits and long-term financial security to all its members,” the SSS said on its website.

But, since the term of former President Joseph Estrada, or more than 20 years ago, SSS members have complained that SSS officials repeatedly make dire warnings about the fund’s actuarial life when it still has not fixed its compensation packages to executives, officers, and board directors.

Most of the officials who had been pointing to the fund’s actuarial life have already retired with pensions based on their last salaries at SSS.

Other state funds

Other government-run funds, like PhilHealth and the Home Development Mutual Fund (Pag-Ibig), have adjusted, and even deferred, scheduled contribution increases in deference to their members and hard economic circumstances.

Besides, former SSS president Rolando Macasaet said on Saturday that SSS had an income of over P80 billion in 2023 and a banner year of over P100 billion in income for 2024.

The fund was also excused from contributing seed capital when the Marcos administration started the country’s first sovereign fund, the Maharlika Wealth Fund, last year.

“The temporary suspension or gradual implementation of the Social Security Act of 2018 (RA 11199) will not burden our hard-working SSS members and will not significantly affect the fund life of the SSS,” Macasaet said.

Moreover, Macasaet said, the president has the authority to suspend RA 11199 if there should be a clamor from members to defer the scheduled increase in contributions.

(2025/01/06-05:25)