MANILA, Philippines - Employers vehemently oppose the proposal of the Social Security System (SSS) to increase the premium contributions of company owners.
The SSS is proposing to increase premium contributions to 11% from the current 10.4%. Of the 11%, 7.37% will be shouldered by employers while the 3.63% will come from employees.
But the Employers Confederation of the Philippines says there is no basis nor urgency for the increase as SSS revenues continue to rise.
The ECOP paper further stated that under its charter, the SSS cannot increase the rate of contribution if the purpose is to increase benefits and if its not premised on the actuarial soundness of the fund.
According to the group, the life of the SSS and reserve fund is secure until 2039.
The group also says the increase in contribution means additional indirect labor costs for businesssmen.
Former ECOP president Donald Dee says in 2004, the group allowed an increase in premium contribution since what was at stake then was the fund's life. However, Dee said this is now a different case.