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Manila Bulletin devider Philippines devider National devider 'Choose compassion': Nograles asks Marcos to suspend SSS rate hike

'Choose compassion': Nograles asks Marcos to suspend SSS rate hike

Published Jan 8, 2025 08:38 am

At A Glance

  • Rizal 4th district Rep. Fidel Nograles is urging President Marcos to suspend the increase in the Social Security System's (SSS) contribution rates, citing the need to protect workers burdened with a lower take-home pay.

Fidel Nograles.jpgRizal 4th district Rep. Fidel Nograles (PPAB)

Rizal 4th district Rep. Fidel Nograles is urging President Marcos to suspend the increase in the Social Security System’s (SSS) contribution rates, citing the need to protect workers burdened with a lower take-home pay.

Nograles, chairman of the House Committee on Labor and Employment, joins a growing list of lawmakers calling for the hike’s immediate suspension amid public clamor.

“Nananawagan tayo kay Pang. Marcos na isuspinde na muna ang rate increase,” Nograles said in a statement on Wednesday, Jan. 8.

(We call on President Marcos to suspend the rate increase at the earliest.)

“Sa kabila ng mas mahal na cost of living na dinaranas ng mga kababayan natin sa kasalukuyan, malaking dagok ang dagdag na singil na ito dahil mababawasan pa lalo ang kapasidad nilang sustentuhan ang kanilang mga pamilya,” he explained.

(Amid the high cost of living that our countrymen are currently suffering from, this additional charge will be a big blow because it will further reduce their capacity to support their families.)

Beginning January 2025, the SSS is scheduled to increase monthly contribution from its members. From last year’s 14 percent, premiums will now be at 15 percent.

With this increase, employer’s share will be at 10 percent, while employees will pay the remaining five percent

This will apply to private sector employees, household employers and domestic workers, self-employed individuals, voluntary members, and land-based overseas Filipino workers (OFWs).

The hike in contribution rates aligns with Republic Act (RA) No. 11199, or the Social Security Act of 2019, which mandates the SSS to increase its contribution rate every two years.

With this mandated increase, Nograles said the President could order the state-run pension to first make its collection more efficient and effective.

“The SSS should address systemic bottlenecks and gaps first to ensure that our collection efforts are maximized,” he said.

The lawmaker pointed out that the SSS should also be transparent, particularly with the effects of a gradual increase on the pensioners’ fund life.

“If a deferment won’t lead to a significant dent to the SSS’ funds, perhaps it is more judicious to choose compassion and empathy for our fellow Filipinos instead of implementing the contribution hike right this year,” he added.

Nograles suggested that a gradual increase would be more viable for the SSS, so that Filipino workers “can cope much better”.

Related Tags

fidel nograles President Marcos contribution hike Social Security System (SSS)
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