KMU asks SC to stop SSS contribution hike

By Ina Reformina, ABS-CBN News

Posted at Jan 10 2014 07:32 PM | Updated as of Jan 11 2014 03:32 AM

MANILA, Philippines – Militant labor group Kilusang Mayo Uno (KMU) urged the Supreme Court (SC) on Friday to halt the implementation of the 0.6 percent increase in Social Security System (SSS) members' premium contributions.

KMU said the increase is unnecessary, and "may simply go to the pockets of big capitalists in the form of start-up capital for projects under the government's Public-Private Partnership (PPP) program."

"The SSS definitely does not need to increase premium contributions just to continue their services. The truth is [it] already [has] more than enough funds from extorting its members," KMU said.

The plea for the issuance of a temporary restraining order (TRO) from the high court is just the first step in a series of actions aimed at blocking the premium hike, KMU added.

The group warned of "bolder protests" should government continue to collect the increase in premium.

"We are hoping that the high court would heed our workers' and the people's demand to hold the SSS premium hike. It would even be better if [the SC] would issue a permanent injunction against the hike," KMU said.

Starting this January, SSS monthly contributions will increase to 11-percent from 10.4-percent.

For employed SSS members, the employer will shoulder 7.37-percent of the contribution while the employee will pay the remaining 3.63-percent.

Self-employed and voluntary members will shoulder the entire 11-percent monthly contribution rate.