SSS to continue collecting higher premium

by Ina Reformina, ABS-CBN News

Posted at Jan 14 2014 10:31 PM | Updated as of Jan 15 2014 09:32 AM

MANILA (UPDATED) 0 The Social Security System (SSS) may continue collecting a 0.6-percentage point increase in monthly premium contributions since the Supreme Court (SC) has not yet granted the plea of militant labor groups for a restraining order on the hike.

Instead, the high court ordered Malacanan and SSS to comment within 10 days on the petition of Kilusang Mayo Uno (KMU), the Anakpawis party-list, the National Federation of Labor Unions, and Center for Trade and Human Rights (CTUHR).

Starting this January, monthly SSS contributions increased to 11 percent from 10.4 percent.

Petitioners said this would mean a minimum age earner will have to pay at least P25 more on his or her premium.

The SSS said the increase is necessary to cover its accumulated unfunded liability worth P1.1 trillion since 1980.

Petitioners, however, insist that the SSS has enough funds and does not need to increase its premium to continue its services to members.

The high court will again deliberate on petitioners's plea for a temporary restraining order (TRO) once government's comment is submitted.