SSS Premiums Employers Buck Hike In Contributions

The Employers Confederation of the Philippines (ECOP) distanced itself from pronouncements made by the Social Security System (SSS) that employers are "amenable" to the planned increase in members' contribution to 11 percent.

ECOP President Edgardo G. Lacson stated that although SSS has reportedly conducted "consultations with various company executives," ECOP was not among those consulted on the proposal to adjust members' contribution from 10.4% to 11% by the end of the year and "by 15 percent in the long term to make them at par with those in other countries."

Lacson, however, recalled having met SSS last year to vigorously express ECOP's opposition to increase members' contribution. "We expressed strong reservations on any increase in contributions given the volatile economic situation, the capacity of employers and employees to absorb the increases, and its overall impact on the economy and viability of businesses. It radically increases indirect labor costs," Lacson emphasized.

Lacson noted that prior to said meeting, "We objectively wrote a letter to them (SSS) opposing any adjustment in premium contributions at the cost of employers and workers."

ECOP, together with other business organizations such as the Philippine Chamber of Commerce and Industry (PCCI), Philippine Exporters Confederation, Inc. (Philexport), Philippine Food Processors and Exporters Organizations, People Management Association of the Philippines (PMAP), Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. (FFCCCII), Makati Business Club (MBC), Philippine Constructors Association (PCA), Business Processing Association of the Philippines (BPAP), Philippine Association of Colleges and Universities (PACU), Philippine Association of Local Service Contractors (PALSCON), Philippine Franchise Association (PFA), Philippine Retailers Association (PRA), Semiconductor Electronics Industries in the Philippines (SEIPI), Philippine Plastics Industry Association (PPIA), reiterate its opposition to such proposal of SSS. The business groups are up in arms over the plan of SSS to adjust contributions as this will terribly hurt, cost-wise, both employers and workers, without any concrete and measurable returns.

PCCI President and ECOP Chairman Miguel B. Varela said given the recent two-step P30 cost-of-living allowance (COLA) approved in the National Capital Region (NCR) - which ECOP continues to oppose with the impending filing of a partial motion for reconsideration before the National Wages and Productivity Commission (NWPC) - increasing contributions at this time would be a "double whammy" for business.

"There is no basis for the increase nor is there an immediate necessity for the same. If the goal is to gradually increase the actuarial life of the SSS Fund, it can be done without increasing the premiums being paid by both the employer and the employee," Varela argued.

Varela said the SSS may strengthen its viability through other means such as prudent spending, maximizing yield on in investments or increasing the number of new members especially on voluntary-y contributions. "Let us think of other ways to enhance the benefits for members. Let us not pass the burden to the employers and the employees", he stressed.

Philexport President Sergio Ortiz-Luis, Jr. said, "Employers were never amenable to the plan as what SSS claimed," expressing apprehension that such move might trigger increase in contributions from other government agencies such as Pag-IBIG and Philhealth. "Agreeing to the plan of SSS might send the wrong signal to these other agencies that employers are willing and capable to absorb the increases in contribution, which is not the case," he added.

Ortiz-Luis related that based on year 2007 estimates from the SSS itself, the life of the Reserve Fund is expected to last until 2039. "If the goal is to gradually increase the life span of the Fund, it can be done without increasing the premiums being paid by both the employer and employee," he argued.(BCM)

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • US ambassador recovers from knife attack praised by N. Korea
    US ambassador recovers from knife attack praised by N. Korea

    The US ambassador to South Korea, Mark Lippert, was recovering from surgery Thursday after having his face and arm slashed by a knife-wielding activist in an attack applauded by North Korean state media. The United States condemned the "act of violence" which saw the ambassador rushed to hospital where his condition was described as stable after two-and-a-half hours of surgery that included 80 stitches to a deep gash on his right cheek. During the assault, Kim screamed a slogan in favour of …

  • New Moro rebel group emerges
    New Moro rebel group emerges

    A radical Muslim cleric trained in the Middle East and considered one of the leaders of the Bangsamoro Islamic Freedom Fighters (BIFF) has broken away from the terror group to form his own band of jihadists who are now reportedly providing sanctuary to bomb expert Basit Usman and at least five foreign militants, the military said yesterday. Armed Forces of the Philippines (AFP) spokesman Col. Restituto Padilla, citing reports from the field, said the Justice for Islamic Movement (JIM) was …

  • Sy moves up, Villar enters Forbes list of billionaires
    Sy moves up, Villar enters Forbes list of billionaires

    Eleven Filipinos are included in Forbes’ 2015 list of richest people in the world. Filipino-Chinese tycoon Henry Sy Sr. continues to be the wealthiest man in the Philippines. The 90-year-old SM supermalls, banking and property tycoon ranked 73rd among the world’s richest with an increased net worth of $14.2 billion from $11.4 billion last year. Sy’s net worth was attributed to the continued growth of his SM Investments Corp. and his more recent venture, the City of Dreams Manila resort and …

  • US billionaire says WWII Japanese ship found in Philippines
    US billionaire says WWII Japanese ship found in Philippines

    Microsoft co-founder Paul Allen said Wednesday he had found one of Japan's biggest and most famous battleships on a Philippine seabed, some 70 years after American forces sank it during World War II. Excited historians likened the discovery, if verified, to finding the Titanic, as they hailed the American billionaire for his high-tech mission that apparently succeeded after so many failed search attempts by others. Allen posted photos and video online of parts of what he said was the …

  • World's oldest person wonders about secret to longevity too
    World's oldest person wonders about secret to longevity too

    TOKYO (AP) — The world's oldest person says 117 years doesn't seem like such a long time. …

  • Billionaire finds wreck of WWII ship in Phl
    Billionaire finds wreck of WWII ship in Phl

    Microsoft co-founder Paul Allen says he has found the Japanese Navy’s biggest warship at the bottom of the sea in the Philippines, 70 years after US forces sank it. Allen posted a photo on Twitter on Tuesday of the World War II battleship Musashi’s rusty bow, which bore the Japanese empire’s Chrysanthemum seal. The American billionaire, who has also pursued space exploration, said his luxury yacht and exploration ship, the M/Y Octopus, found the Musashi one kilometer (1.6 miles) deep on the …

  • Ohio mom, boyfriend guilty; child emailed teacher for help

    PORTSMOUTH, Ohio (AP) — A woman and her boyfriend pleaded guilty to raping her young children and were sentenced to prison on Wednesday, a year after one of her daughters emailed a teacher for help and said she and her siblings were being chained to their beds, deprived of food and sexually assaulted. …

  • Australian drug smugglers being taken to Indonesian island for execution - media
    Australian drug smugglers being taken to Indonesian island for execution - media

    By Jane Wardell and Beawiharta SYDNEY/DENPASAR, Indonesia (Reuters) - Two convicted Australian drug smugglers were removed from a prison in Bali on Wednesday to be taken to an Indonesian island where they will be shot by firing squad, Australian media reported. The planned executions of Myuran Sukumaran, 33, and Andrew Chan, 31, have ratcheted up diplomatic tensions amid repeated pleas of mercy for the pair from Australia and thrown a spotlight on Indonesia's increasing use of the death …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options