Increase national wage, not SSS contribution, LRT fare – solon
MANILA, Philippines — Akbayan party-list Rep. Percival Cendaña has called out the government for allowing the increase of the Social Security System (SSS) contribution rate and Light Rail Transit Line 1 (LRT-1) fares while keeping minimum wages across the country low.
In a statement on Thursday, Cendaña urged Malacañang to prioritize the national minimum wage increase for Filipino workers while suspending the SSS contribution rate hike, which will increase premiums by 15 percent.
“The people are asking for wage increases, but they get contribution hikes? This increase is insensitive to the demands of the Filipino workers. It puts the burden on them instead of the government actually making an effort to resolve systemic issues. The SSS contribution rate hike has to be temporarily suspended,” he said in a mix of Filipino and English.
“Families can no longer afford the price of gasoline and rice, and yet we reduce their income even further. Our government should be sympathetic to the plight of Filipinos when implementing policies,” he added.
The SSS contribution rate increased by 15 percent since the start of the year, which SSS president and chief executive officer Robert Joseph de Claro said would generate an additional P51.5 billion in collections for 2025.
De Claro said 35 percent, or around P18.3 billion, will be allocated to the Mandatory Provident Fund (MPF), a supplementary savings account for private sector workers and other individual members.
Article continues after this advertisementREAD: SSS: Contribution, monthly salary credit hike to yield P51.5B in 2025
Article continues after this advertisementSeveral lawmakers have opposed the SSS contribution hike. On Tuesday afternoon, Baguio City Rep. Mark Go filed House Resolution (HR) No. 2157, seeking the suspension of a 15 percent contribution hike to ease Filipinos’ burden brought on by increasing costs of goods.
The increase in SSS contributions follows Republic Act No. 11999, or the Social Security Act of 2018, with the last 1 percent premium increase taking effect on January 1
READ: Suspension of SSS contribution rate hike House reso filed
LRT fare hike, too
Cendaña also asked the Department of Transportation (DOTr) to deny the Light Rail Manila Corporation (LRMC) proposal to increase LRT-1 fares, as it would further burden working-class commuters.
The proposed adjustment, Cendaña said in a separate statement, will increase fares by P8.65 for short-distance passengers, P6.02 pesos for mid-distance passengers, and P12.50 for long-distance passengers.
“Why make life harder for the commuting public with a P60 fare on the LRT that closes at 9:30 p.m.? The fare hike will primarily affect regular, working-class Filipinos. The Philippine transportation system has many issues, and increasing the LRT-1 fare will not solve any of them,” he said.
“If we really want fare hikes, we must first give Filipino commuters concrete improvements. We can extend the train stations’ operating hours for up to 18 hours, or even revamp them. We can also add more stations to ease their commute to their jobs and families,” he added.
According to Cendaña, the proposed fare hikes may be low, but when combined, it can lead to a significant amount which commuters can also use to buy goods instead.
“Instead of using their income for food, it will go towards their fare. While honoring contractual obligations is important, our top responsibility is to serve the public. Our allegiance should always lie in the Filipino people,” he noted.
There have been wage hikes in the past, but several labor and progressive groups have described them as meager and a mere pittance — like the P35 salary increase for private workers in the National Capital Region (NCR) implemented in July 2024.
READ: P35 daily wage increase in NCR ‘an insult to workers’ – groups
According to the Trade Union Congress of the Philippines (TUCP), they prefer the proposal under House Bill (HB) No. 7871 filed by TUCP party-list and Deputy Speaker Raymond Mendoza, which seeks to give a P150 across-the-board wage hike for all workers in the private sector.
The Makabayan bloc’s HB No. 7568 meanwhile seeks a P750 across-the-board salary increase. Both bills however are still with the House committee on labor and employment.
In the Senate, a bill seeking a P100 wage hike was approved on the third reading in February 2024.
