Deferment of SSS premium hike: A call for government to contribute

The NAGKAISA Labor Coalition is urging the Social Security System (SSS) and the government to temporarily suspend the planned premium hike for 2025, beginning this month.

Emphasizing the need for the government to fulfill its legal obligation to contribute to the SSS fund—”a commitment it has failed to meet despite being mandated by the Social Security Act of 2018 (Republic Act No. 11199) and the earlier versions of the law,” NAGKAISA Labor Coalition chair Jose Sonny G. Matula elaborated that “under Section 20 of RA 11199, the government is required to provide financial contributions to the SSS fund to ensure its sustainability, particularly for low-income and indigent sectors.”

3922f3fa 6160 4279 A850 3413c82e3137

Atty. Matula, a senatorial candidate under the Workers’ and Peasants’ Party, said that employers and workers have long borne the burden of funding SSS operations, with little to no government support.

“The first contribution was a ₱500k in 1957 and after that no more. This failure exacerbates the financial challenges faced by millions of Filipino workers, who are already struggling with stagnant wages and increasing living costs,” he further said.

PREMIUM HIKE INAPPROPRIATE

NAGKAISA stated: “The law is clear: the government must contribute to the SSS fund. However, this obligation has been left unfulfilled, leaving workers and employers to shoulder the entire burden since the 1950s. This continued neglect is not only unjust but also undermines the very purpose of social security, which is to provide support and stability to those who need it most.”

The Coalition also stressed that the timing of the premium hike is especially inappropriate, given that the ₱150 nationwide wage increase remains stalled in the House of Representatives, while the Senate approved only a ₱100 hike last year. These increments, even if implemented, fall far short of addressing the widening gap between wages and the rising cost of living.

“The deferment of the premium hike is a practical and compassionate response to the current economic reality faced by workers. Without it, workers will continue to suffer undue financial strain,” the NAGKAISA said.

NO NEED FOR PREMIUM HIKE

Former SSS President and CEO Rolando Macasaet likewise called on Malacañang to order the temporary suspension of the implementation of higher SSS contribution rates.

Now running as SSS-GSIS Pensyonado Party-list Representative, Macasaet affirmed the SSS’s strong financial position, citing ₱80 billion in income in 2023 and a banner year of ₱100 billion in income in 2024.

These figures prove that the SSS can sustain its operations without immediately implementing a premium increase, NAGKAISA said.

The Coalition cited Section 4 of RA 11199, stating that “the SSS Commission has the authority to suspend or defer contribution hikes based on prevailing economic conditions.”

CALL FOR ACCOUNTABILITY, FAIRNESS

A6fe979b C919 4f02 Addc 75a960c8d20b
Calling for the deferment of the imposition of the 1% SSS premium hike, NAGKAISA Labor Coalition holds a picket in front of the SSS Building in Quezon City, joined by Akbayan Party-list Representative Perci Cendaña

The Coalition urged the national government to prioritize the well-being of SSS members by immediately taking three actions, namely: 1) Defer the SSS premium hike and alleviate the financial burden on workers; 2) Fulfill its legal obligation to contribute to the SSS fund, as required by Section 20 of RA 11199; and 3) Accelerate the passage of the ₱150 wage increase to provide much-needed relief to workers.

NAGKAISA likewise called on the three worker reps in the Social Security Commission to push for the deferment of SSS premiums. “We understand they will have no difficulty convincing the employers’ reps—ECOP has been waving the ‘deferment’ flag in their press statement.”

“Workers have consistently upheld their responsibilities to the SSS fund through their contributions. It is time for the government to do the same. Fulfillment of its mandated obligation is not just a legal matter—it is a moral imperative,” NAGKAISA stressed.

ABOUT THE AUTHOR

JUST IN

More Stories