ACT: Suspend SSS premium increase

CEBU, Philippines — Private school teachers are calling for the immediate suspension of the hikes for Social Security System (SSS) contributions this year, expressing worries about “further erosion of already insufficient take-home pay.”

The Alliance of Concerned Teachers (ACT) Private Schools said the increase in SSS contribution rates from 14 to 15 percent would “crush” teachers and workers in the private sector who are already carrying the brunt of soaring prices and “meager” wages.

"This proposed SSS contribution increase is the height of government insensitivity. How about the teachers and workers who are already struggling to make ends meet on their meager salaries? The Marcos Jr. administration appears more interested in padding its confidential funds than ensuring social services and people's welfare," said Jonathan Geronimo, ACT Private Schools secretary-general.

Starting this month, private sector employees, household employers and domestic workers, self-employed workers, voluntary members and land-based overseas Filipino workers will be affected by the contribution increase.

The increase was mandated under the Social Security Act of 2018, which stipulated that SSS should gradually increase the contribution rate until it reaches 15 percent by 2025. The increases began at 12 percent in 2019.

The four-tiered contribution increase will ensure the pension fund’s financial viability for the benefit of its members, pensioners, and their beneficiaries.

ACT Private Schools, however, pointed out that private school teachers, along with other private sector employees, are already suffers from inflation, high utility costs, and increased Philhealth premiums.

Geronimo said the additional SSS deduction from their salaries will take a significant chunk from their “already insufficient” take-home pay.

"It is unacceptable that while huge confidential funds are given to the Office of the President and other agencies, the workers are the ones paying higher contributions. The 2025 national budget is the most anti-people budget we've seen, with massive funds going to agencies notorious for corruption while social services remain severely underfunded," Geronimo added.

The teachers' group also criticized SSS's failure to fully implement the 2016 pension hike that promised an additional P1,000 for pensioners.

"The SSS seems more concerned about extending its fund life through increased collections rather than genuinely serving its members and pensioners," Geronimo added.

ACT demanded the immediate suspension of the planned SSS contribution hike, the defunding of confidential funds, and the reallocation of the 2025 budget to prioritize education, health, and other essential social services.  (CEBU NEWS)