Labor Group Seeks Relief From SSS Contribution Hike

The labor group Partido Manggagawa (PM) has urged the government or employers to shoulder the scheduled 1% increase in Social Security System (SSS) employee contributions for 2025, citing the ongoing economic challenges faced by workers.

PM national chair and Marikina City councilor Rene Magtubo argued that the hike would further reduce workers’ already strained take-home pay during a cost-of-living crisis. He emphasized that employers and the government are in a better position to absorb the additional cost.

“The increase in employee share for SSS contributions will result in lower take-home pay at a time when workers face extreme economic difficulties,” Magtubo said. “In contrast, the government and capitalists have the capacity to pay. The least they could do is to lighten the burden for workers in the new year.”

Calls for Reform and Collection of Unpaid SSS Contributions

Various groups and individuals have called for the suspension of the SSS contribution hike, citing the economic strain on workers and unresolved issues within the SSS. One key issue is the agency’s inability to collect PHP 89 billion in unpaid remittances from nearly 500,000 employers, as reported by the Commission on Audit (COA).

The COA criticized the SSS for its “weak performance” in collecting premiums, a situation Magtubo described as a form of “wage theft.”

“These employers who deduct social security contributions but do not remit them to the SSS are misbehaving and criminal, or pasaway,” Magtubo said. “It is time that SSS wage a war on pasaway employers.”

Employers and Government Urged to Step In

Magtubo argued that businesses, particularly large corporations, are financially capable of absorbing the cost of the contribution increase. He pointed to a 50% rise in labor productivity over the last 15 years and stagnant real wages during the same period, which, he said, reflect the growing profits of capitalists.

“Capitalists are more than solvent as they have increased their share in the fruits of production,” he added.

As an alternative, Magtubo proposed that the government temporarily subsidize the employee share, citing the significant contribution of workers to government revenue through withholding taxes.

“Formal workers disproportionately bear the burden of taxation in the country,” Magtubo said. “Workers’ payroll taxes are automatically deducted, while corporate taxes depend on the declarations of capitalists. This is a double standard.”

The labor group emphasized the urgent need for reforms in SSS operations and called on stakeholders to prioritize workers’ welfare amid ongoing economic challenges.