By Samuel Medenilla
Associated Labor Union (ALU) urged the government on Sunday, February 26 to subsidize the Social Security System (SSS) and halt raising the contribution rate of its 14 million members starting May 2017.
In a statement, ALU spokesman Alan Tanjusay disclosed that the government could add funds to SSS so it will no longer have to implement its proposed 1.5 percent premium hike.
“SSS can ask for government subsidy to make the SSS liquid,” Tanjusay said.
He said the SSS management could also generate additional funds for its increasing obligations to its members by reducing its operations cost and raising the efficiency of its premium collection.
“SSS top executives official right now are enjoying excessive salaries, bonuses and perks while collection efficiency is very poor. If we institute these reforms, we’ll be surprised at the amount of money we can save,” Tanjusay added.
SSS earlier announced its planned premium hike after it implemented the P1,000 pension hike for its members last week despite warning from some stakeholders that the move will deplete the agency’s funds.
ALU, however, maintained its opposition against the premium hike since it will become an additional financial burden for workers, who are now cash-strapped due to small wage rates and rising cost of basic goods and services.
“It’s not a good time to increase the monthly contribution rate at this time because the value of highest daily minimum wage of P491 has decreased to only P363 a day,” Tanjusay said.
“Any additional deductions to employee’s take home pay will make him or her and that of their family’s life even more difficult to cope with daily needs,” he added.