Top business, trade and labor leaders jointly appealed to President Rodrigo Duterte to immediately release the Executive Order deferring the increase in the Social Security System monthly contributions of both employees and workers.
In a joint letter dated September 27, some 10 private sector and workers’ groups said the issuance of the EO was necessary to allow embattled micro, small and medium enterprises to continue to operate their businesses and provide jobs amid the prolonged challenges of the COVID-19 pandemic.
“Postponing the implementation of the higher SSS premium will be a critical recovery measure by helping sustain the cash flow especially of the very vulnerable MSMEs. It will also serve as a very concrete government contribution to the National Employment Recovery Strategy program that is implemented with the private sector,” the letter read.
On May 26, Duterte approved Republic Act 11548, which gives him the authority to defer the scheduled increase in SSS premium contributions for the duration of the declaration of state of calamity.
The business and labor groups lauded the signing of RA 11548 as it sends a positive signal to employers and employees that “government empathizes with business in its efforts to keep jobs and livelihoods to prevent further economic losses and the resulting social problems.”
“However, four months after the enactment of the law, the Executive Order implementing the Act has yet to be issued, even as the higher SSS premium already took effect last January 2021,” the statement said.
SSS members’ monthly contributions were increased to 13 percent of their incomes at the start of the year, higher than the current 12 percent contribution drawn from their salaries.
“It is in this light that we are constrained to write to the President for urgent action on this pending request for the deferment. We have yet to fully reopen and many have already lost their income sources either permanently or temporarily,” the joint letter said.
The letter was signed by the heads of trade and business groups, namely, Benedicto Yujuico, president of the Philippine Chamber of Commerce and Industry; Edgardo G. Lacson, chairman of the Employers Confederation of the Philippines; Sergio Ortiz-Luis Jr., president of the Philippine Exporters Confederation, Inc.; Henry Lim Bon Liong, president of the Federation of Filipino-Chinese Chamber of Commerce and Industry; Edgar O. Chua, chairman of the Makati Business Club; and Aurelio Montinola III, president of the Management Association of the Philippines.
It was co-signed by labor leaders Raymond Democrito Mendoza, president of the Trade Union Congress of the Philippines; Jose Matula, president of the Federation of Free Workers; Daniel Edralin, chairman of the Sentro ng mga Nagkakaisa at Progresibong Manggagawa; and Rene Magtubo, national chairman of the Partido Manggagawa.