The Nagkaisa Labor Coalition has called on President Ferdinand R. Marcos Jr. to suspend the impending 1 percent increase in Social Security System (SSS) premium contributions, citing the financial burden it will place on workers already struggling with economic challenges. The coalition argues that the government's failure to fulfill its financial obligations to the SSS, as mandated by law, has unfairly shifted the burden onto workers and employers.
A labor coalition has called on President Ferdinand R. Marcos Jr. to suspend the impending 1 percent increase in Social Security System (SSS) premium contributions set to take effect this month. They cite the financial strain it will impose on workers already burdened by economic challenges.
In a letter dated January 13, the Nagkaisa Labor Coalition highlighted legal, economic, and ethical grounds for the deferment, particularly pointing out the government’s failure to meet its financial obligations under Republic Act (RA) 11199 (Social Security Act of 2018). Section 20 of RA 11199 mandates the government to provide direct contributions to the SSS fund, a responsibility that NAGKAISA says has been neglected since the law’s inception. In a letter addressed to Marcos and copies of which were circulated to the media, Nagkaisa Chairman Jose G. Matula criticized the government’s decades-long neglect in supporting the SSS fund, stating that its last financial contribution was an initial P500,000 allocation in 1957. “Workers and employers have shouldered the SSS fund’s sustainability for decades, while the government has not fulfilled its legal mandate to contribute,” Matula wrote in the letter. According to the labor leader, “this failure has unfairly shifted the burden of sustaining the fund onto workers and employers, compounding the financial hardships faced by Filipino families.” If the increase pushes through, the total contribution rate of Filipinos will rise from 14 percent to 15 percent, the coalition calculated. While the SSS said that higher contributions will extend the fund’s life to 2054, Matula argued that this comes at the expense of workers—who will see their already meager take-home pay reduced further. “The incremental wage increases, even if implemented, will not be enough to address the growing gap between wages and the cost of living,” he said, emphasizing that the P150 nationwide wage hike has yet to be approved in the House of Representatives. The coalition also questioned the necessity of the hike, pointing out that the SSS has reported record-breaking earnings of P80 billion in 2023 and P100 billion in 2024. They urged the SSS Commission to exercise its authority under RA 11199 to defer increases during periods of economic hardship. “These figures demonstrate the SSS’s financial capacity to sustain operations without an immediate premium hike. The current hardships experienced by workers warrant the exercise of this authority,” Matula added. As the premium hike takes effect this January, NAGKAISA and other labor groups staged a protest outside the SSS Main Office in Quezon City on Tuesday, calling on the government to act swiftly on their demands
SSS Premium Hike Labor Coalition Nagkaisa President Marcos Jr. Republic Act 11199 Economic Hardship Social Security System Workers Rights
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