Labor leader calls new SSS law unreasonable


Senatorial candidate Leody De Guzman criticized on Tuesday the recently-inked Social Security System Rationalization Act, saying that the contribution increase was unreasonable.
“Walang kasing palpak ang timing ng increase ng SSS contributions," De Guzman, chairman of the Bukluran ng Manggagawang Pilipino (BMP), said in a press statement.
"Hindi pa humuhupa ang inflation at nakaamba pa ang pagtaas ng presyo ng langis at kuryente ngayong buwan, ito na naman sila. Gagatasan na naman nila ang mga manggagawa," he added.
The law raises the contribution rate of each member to 12 percent from the previous 11 percent and sets the monthly salary credit at P2,000 (minimum) to P20,000 (maximum).
For employed individuals, the employee will shoulder four percent of the contribution rate, while the employer will shoulder eight percent.
The law also mandates SSS coverage for overseas Filipino workers (provided they are not over 60 years old) and the power of the Social Security System Commission to increase benefits, condone penalties, and rationalize investments, among others.
De Guzman expressed worry over the authority given to the SSS Commission to increase workers contributions to the social pension fund.
The labor leader said the SSS Commission should look at the workers' capacity for increased payroll taxes and not just the projected life of the agency’s funds based on their actuarial studies.
“It must be stressed that minimum wage earners, who did not benefit from the tax exemptions but were hit by the oil excise taxes by the TRAIN law, will be affected gravely by this untimely and arbitrary decision for increased premium contributions," De Guzman said.
"Workers have no problem with saving for our retirement but thinking of the future is futile if they ignore our urgent and present needs," he added.
The labor leader urged the SSS Commission to suspend the planned hike in employees contributions and pursue instead a "nationwide, transparent, and democratic decision-making process," involving leaders from formal and informal labor sectors.
"The SSS must also be reminded that it should first release the second tranche of the pension hike as approved by Congress almost two years ago before contemplating on further reducing workers' take home pay and enticing us with new services to appease us,” De Guzman said.
On Monday, another senatorial bet Neri Colmenares denounced the new law, saying that it will only add burden to SSS members.
Colmenares claimed that “lazy” SSS executives have been pushing for the signing of the measure so that they could be "lax"  in collecting contributions and in running after employers who do not remit employees’ premiums. —Anna Felicia Bajo/ LDF, GMA News

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