Gatchalian eyes SSS rate hike probe

Metro Manila, Philippines – Senator Win Gatchalian is calling for an investigation on the Social Security System (SSS) which will push through with the increase in member contribution rate by a percentage point.

During the Kapihan sa Senado media forum on Wednesday, Gatchalian urged the state-run social insurance agency to prioritize collecting billions in unremitted employer contributions rather than imposing the higher rate of 15% from 14%.

“In other words, kung makokolekta mo utang mo, hindi mo na kailangan magtaas ng contributions (if you can collect what is owed to you, there’s no need to increase contributions),” Gatchalian said.

“There’s a management problem and they need to fix the management by collecting the collectibles instead of increasing their premiums,” he added.

The Commission on Audit flagged approximately ₱89 billion in uncollected employer contributions in 2023. The SSS management reported that it has since recovered half of the amount.

Meanwhile, various groups have appealed to the Marcos administration to suspend the rate hike mandated by the Social Security Act, citing its impact on take-home pay. The SSS defended the increase, saying it is essential to ensure the fund's long-term viability.

Gatchalian said he will file a resolution next week urging the Senate committee on banks, financial institutions, and currencies to conduct a legislative inquiry.

He said SSS officials should explain how the uncollected employer contributions have swelled to billions of pesos and to provide details on actions and remedies. He also raised concern about the agency’s investment strategies.

“Theoretically nga dapat yung investment nagbabayad sa mga benepisyo, dapat yung kita mo sa investment yun ang ginagamit mong pambayad… Obviously, kulang,” the lawmaker stressed.

[Translation: Theoretically, the investments should be paying for the benefits. The returns from those investments should cover the payouts… Obviously, it’s not enough.]