THE chairman of the House Committee on Labor and Employment has appealed to President Marcos to suspend the scheduled contribution rate hike of the Social Security System (SSS) to protect workers from being further burdened with the reduction of their take-home pay.
“We call on President Marcos to suspend the rate increase first. Despite the more expensive cost of living that our countrymen are currently suffering, this additional charge will be a big blow because it will further reduce their capacity to support their families,” Rizal Rep. Fidel Nograles said.
The SSS is scheduled to implement a new hike in the monthly contribution of members starting this month in accordance with Republic Act 11199 or the Social Security Act of 2018, which mandates the state-run pension to increase its contribution rate every two years.
In 2019, the contribution rate was set at 12 percent. It rose to 13 percent in 2021 and to 14 percent in 2023. For this year’s 15-percent increase, 10 percent would be shouldered by employers, while employees will pay the remaining five percent.