ORGANIZED labor has called on the new leadership of the state-run pension fund Social Security System (SSS) to set aside a planned increase in monthly contribution of its members while internal reforms are being worked out.
Associated Labor Unions (ALU) spokesman Alan Tanjusay on Monday said they strongly oppose the plan of the SSS to raise the monthly contribution rate of its 14 million members by 1.5 percent starting May 2017.
ALU is the largest labor federation in the country.
“It’s not a good time to increase the monthly contribution rate at this time because the value of the highest daily minimum wage of P491 has sunk to only P363 a day. 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,” Tanjusay said.
Government estimates show that a family of five needs at least P490 a day in 2014 in order for them to survive.
The ALU, however, estimates that today a family needs at least P1,400 a day in order to stay a little above the poverty threshold.
Tanjusay said the SSS should institute internal austerity and collection efficiency reforms before charging its paying members the additional increase in contribution.
“SSS top executives 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,” he added.
Aside from austerity reforms, the SSS can also ask for government subsidy to make the pension fund liquid, Tanjusay said.