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Tuesday, February 18, 2025

Hontiveros urges delay of SSS contribution hike amid inflation

Senate Deputy Minority Leader Risa Hontiveros on Wednesday urged the Social Security System (SSS) to defer the planned increase in members’ contribution, citing its potential to further reduce workers’ wages already strained by soaring prices of goods.

Hontiveros filed a Proposed Senate Resolution No. 1269, calling for a Senate investigation into the impending hike. She emphasized that the adjustment is untimely, especially given the ongoing financial struggles of many Filipinos.

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“While workers’ earnings have continued to lose value over the years, the investment earnings of the SSS have steadily increased. Where will this huge profit go?” Hontiveros asked in a press release.

The senator noted that the SSS reported a net income of ₱100 billion in 2024, with a nearly 30% increase in contributors and an extended fund life until 2053. “It’s clear that the SSS can afford to delay the contribution hike for now,” she added.

Hontiveros warned that pushing through with the hike this year could worsen the financial burden of ordinary wage earners and parts of the middle class.

“Many of our citizens still lack savings due to the pandemic, and their earnings have been devalued further by inflation. The SSS should not reduce their already small take-home pay with this contribution increase,” she said.

She also pointed out that the contribution hike was approved in 2018, a time before the COVID-19 pandemic and its lasting economic effects.

Hontiveros said deeper study of the SSS contribution hike is necessary to strike a balance between the interests of ordinary workers and the actuarial life of the state insurer.

“Let’s hold off on the SSS contribution hike while we reassess its necessity. The SSS should remain a lifeline in times of need, not an added weight that drags its members down,” the senator appealed.

Malacañang recently threw its support behind the scheduled SSS contribution hike, saying the adjustment will proceed after long-term planning and actuarial studies were conducted.

“We cannot arbitrarily halt these adjustments. The SSS has a respected actuary, and their expertise must be trusted,” Executive Secretary Lucas Bersamin said.

Bersamin acknowledged the concerns but emphasized that Malacañang has yet to receive an official request to review the increase.

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