MANILA, Philippines — Business and labor groups are calling for the immediate release of an executive order to defer the increase in contributions to the Social Security System (SSS).
In a joint letter dated Sept.27, employers and labor groups made an appeal to President Duterte for urgent action on the pending request for deferment of the hike in SSS contribution.
The letter was signed by Philippine Chamber of Commerce and Industry president Benedicto Yujuico, Employers Confederation of the Philippines chairman Edgardo Lacson, Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr., Federation of Filipino Chinese Chamber of Commerce and Industry Inc. president Henry Lim Bon Liong, Makati Business Club chairman Edgar Chua and Management Association of the Philippines president Aurelio Montinola III.
It was also signed by Trade Union Congress of the Philippines president Raymond Democrito Mendoza, Federation of Free Workers president Jose Matula, Sentro ng mga Nagkakaisa at Progresibong Manggagawa chairman Daniel Edralin and Partido Manggagawa national chairman Rene Magtubo.
Duterte signed into law last May Republic Act 11548 which gives the President the authority to defer the scheduled increase in SSS premium contributions during the state of calamity.
“It was a very welcome, 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,” the groups said.
While it has been four months since the law was signed and the increase in SSS contributions to 13 percent from 12 percent of a member’s monthly salary took effect last January, the EO for the deferment has yet to be issued.
The groups said they were informed by the SSS it is still waiting for the EO.
“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 (micro, small and medium enterprises),” the groups said.
They added it would serve as a government contribution to the National Employment Recovery Strategy program which seeks to restore jobs.
The groups also said they remain open for any consultation on the matter.
Recently, Duterte also extended the validity of the state of calamity due to the coronavirus pandemic until Sept. 12 next year.