Baguio lawmaker seeks SSS contribution hike’s suspension

BAGUIO CITY (January 9, 2025) -- Baguio City lawmaker Mark Go is urging the Social Security Commission to defer the implementation of the scheduled hike in Social Security System (SSS) contributions, “to ease the burden on Filipinos amid rising costs due to inflation”.

In a House resolution Go filed Tuesday, January 7, Rep. Go cited “wide clamor from all sectors,” prompting him to lay down House Resolution (HR) 2157 enjoining SSC to suspend the 15 percent hike in contribution rate.

The Baguio lawmaker said that as the SSS’ policy body, the SSC should strongly consider the deferral of the hike in contributions “to provide our low-income earners a breathing space from the continued rising cost of commodities and services,” while citing the Philippine Statistics Authority’s latest figure that inflation rose to 2.9 per cent in December from 2.5 per cent in November.

Go also pointed out that the SSS’ revenue grew in 2023 by 15.6 per cent, from P353.82 billion to P306.16 billion in the previous year, adding that “the SSS can afford and manage to suspend the increase in contributions.”

He added that SSS earned a net income of P83.13 billion in 2023, exceeding its target of P51.06 billion for that year, according to a February report by a national daily last year.

That same year, a Commission on Audit (COA) report revealed an inefficiency in the collection of premium contributions from delinquent employers, with only P4.581 billion collected – or 4.89 per cent of expected collections in 2023 worth P93.747 billion.

“This is equivalent to P89.17 B of uncollected premium contributions from 420,627 employers,” Go said.

Go further added that the SSS’ inefficiency in collecting premium contributions based on the COA report “should first be addressed before the government insurance agency proceeds to implement the schedule of contribution rate hike.”

The Baguio lawmaker also authored HR 253, which he said, was adopted by the House of Representatives on September 25, successfully urging the Department of Health to issue Administrative Order 0017-2024 removing purchase slip booklet as a mandatory requirement for senior citizens to avail the 20% discount in the purchase of medicines. The administrative order was implemented on December 23.