Metro Manila (CNN Philippines, January 20) — The Employers Confederation of the Philippines (ECOP) urged the Social Security System (SSS) to hold off its contribution hike for 2023 which will affect employers.
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From a share of 8.5 percent in 2022, employers will have to shoulder a one percentage point increase — contributing 9.5 percent to their employees’ SSS contribution.
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This translates to a contribution hike increase of ₱40 for each employee with a salary of ₱4,000 and below, and a ₱100 increase for each employee with a salary of at least ₱10,000.
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There’s also a ₱200 regular contribution increase and added Worker’s Investment Savings Program (WISP) for employees receiving ₱30,000 compensation.
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SSS noted that only employees with a salary of more than ₱25,000 will be personally affected by the contribution increase, as the cap for the monthly salary credit was bumped to ₱30,000.
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ECOP said businesses should be given a chance to recover from recent losses, as some small and medium enterprises (SMEs) had to close down amid the COVID-19 pandemic.
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“Huwag muna nating bigyan ng additional burden ang mga employers at this point. ‘Yong kapakanan ng empleyado, nasa puso ng mga employers ‘yan,” ECOP chairman Ed Lacson said.
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[Translation: Don’t give additional burden to employers at this point. The welfare of the employees is always in the hearts of employers.]
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“Let’s wait for a better time before we talk about increasing contributions. If businesses can recover well, any additional increase can be absolved by the business,” he added.
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However, SSS emphasized that the contribution hike is necessary to fund benefits given to its members, including pension and unemployment.
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The SSS said on Thursday that it has started implementing members’ increased contribution. The rate is now at 14% — up from last year’s 13%.
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The state pension fund assured it will promptly comply if a law is passed by Congress and approved by the president to suspend the collection of the contribution hike.
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“This increase would give our fund life until 2054 so ‘yon ang magandang epekto sa ating fund life. At the same time ito ay magiging magandang tulong sa ating mga members kasi mas magandang benefits na maibibigay natin sa kanila dahil mas darami ang fund ng SSS,” SSS spokesperson Sau Mapalo explained.
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