Villanueva: Law deferring SSS contribution increase provides respite for pandemic-hit workers

Senator Joel Villanueva today hailed Malacañang's signing into law a bill granting the President the power to hold off Social Security System (SSS) contribution hikes during the COVID-19 pandemic.

"Maraming salamat po sa ating Pangulo. But having been given that power, the President must now pull the trigger so to speak," said Villanueva, chair of the Senate labor committee.

"The fate of the law is now on his hands. It will not automatically take effect. It is up to the President to exercise that prerogative," said Villanueva, who authored the measure in the Senate.

Under Republic Act No. 11548, the President, upon the recommendation of the Social Security Commission, has the power to suspend the 1 percentage point increase on SSS membership contribution that was scheduled to take effect January 1, 2021.

Villanueva believes that the President will invoke that provision and order a freeze.

"Otherwise, he would have vetoed it. There is no point in affixing your signature on a law you do not intend to implement," he said.

"The effect of not exercising that power is to give the go signal to SSS to start collecting higher pension premiums from its members," Villanueva said.

In March 2020, Duterte through Proclamation No. 929 placed the entire country under a state of calamity due to the coronavirus pandemic. Through another proclamation, he extended the duration to Sept. 12, 2021.

SSS contributions were supposed to increase from 12 percent to 13 percent of a member's monthly salary starting Jan. 1, 2021.

"The law the President recently signed gives him power to press the 'pause' button on the scheduled increase," Villanueva said.

Doing so will not hurt the financial viability of the state-run pension fund for private workers "as it is temporary, not permanent."

"The suspension is not a forgiveness but a freeze, for the time being and not forever. It will not cover the entire monthly contribution but only the increase that is supposed to take effect this year," Villanueva said.

"When there is little to draw from an economy bleeding jobs, from businesses hemorrhaging from lack of sales, from workers who have to work shorter hours for less, then the government must extend to those who pay this payroll tax the same relief it had extended to those with house rents and bank loans and that is a moratorium," he said in his speech sponsoring the bill in the Senate.

Villanueva: Batas na nagpapaliban sa taas-singil sa SSS contributions, malaking ginhawa sa mga manggagawang hirap sa pandemya

Magandang balita para sa mga manggagawa ang kapipirma pa lamang na batas ng Malacañang kung saan isinasabatas ang panukalang magbibigay sa Pangulo ng kapangyarihang ipagpaliban muna ang singil sa dagdag na SSS contribution habang may pandemya pa, ayon kay Senator Joel Villanueva.

"Maraming salamat po sa ating Pangulo. Sana po ay gamitin niya ang kapangyarihang ito sa lalong madaling panahon. Nasa kamay niya na po ang implementasyon ng batas na ito, at kung kanyang nanaisin, makakaalwan na ang ating mga manggagawa kahit papaano," ani Villanueva, chair ng Senate labor committee. Isinulong ni Villanueva sa Senado ang panukala batas na ito noong Enero.

Sa ilalim ng Republic Act No. 11548, masususpinde na ng Pangulo, sa rekomendasyon ng SSS, 1 percentage point na pagtaas ng SSS membership contribution na nakatakdang ipatupad noong Enero 1, 2021.

Naniniwala si Villanueva na gagamitin ni Pangulo ang kapangyarihang ito sa ilalim ng batas, dahil kayang-kaya niya ito i-veto pero hindi niya ginawa.

Nitong Marso 2020, nagpalabas ang Pangulo ng Proclamation No. 929 na inilalagay ang buong bansa sa ilalim ng state of calamity dahil sa COVID-19 pandemic. Na-extend ito hanggang Setyembre 12, 2021.

Dapat ay tumaas na mula 12 percent hanggang 13 percent ang SSS contribution, ngunit pansamantalang ipinagpaliban.

"Hindi po gaano maapektuhan ang pinansyal na katayuan ng SSS. Pansamantala lang ang tigil sa increase at itataas rin ito kapag nakabangon na ang mga manggagawa natin mula sa pandemya," ani Villanueva.