Baguio City Rep. Mark Go has filed two bills that seek to defer the increase in contributions for the Social Security System and PhilHealth for two years.
Go filed House Bill (HB) 8313, which seeks to amend Republic Act 11199 or the Social Security Act of 2018, which mandates an increase of one percent for 2021 and 2022 on employer and employee contributions to 8.5 percent and 4.5 percent, respectively.
The bill intends to maintain the current rate of 12 percent for 2021 to 2022.
HB 8314 also seeks to defer the hike in premium contributions for PhilHealth for two years. The state insurer is expected to collect higher premiums in January this year as mandated by RA 11223 or the Universal Healthcare Act with an increase of .50 percent in 2021 and another .50 percent hike for 2022.
Even as President Duterte has reportedly supported calls to suspend the payment increase, a new law must be passed to amend the mandated increase as stated in the Universal Healthcare Act.
Go said it is essential to defer the payment hikes in light of the country’s recent efforts to revive the economy and restore jobs.
He said Filipinos continue to struggle with overwhelming financial difficulty and economic uncertainty, and are not in any position at the moment to bear any additional burden.
He cited an unemployment statistic of 8.7 percent in October 2020, equivalent to over 3.8 million jobless Filipinos.
Go said the next two years is crucial for the country’s economic rehabilitation. He said the two-year deferment is based on government projections that the country will expect an economic rebound late this year or early next year should the economy operate under looser restrictions.
He added the National Economic and Development Authority forecasts a return of the economy to pre-pandemic levels by 2022, as consumers regain confidence and lose the “fear factor” brought by the virus.
“Providing Filipino workers and enterprises this relief from an untimely increase in financial burden within this two-year period will allow them to bounce back as the country looks to better days ahead,” Go said. – Press release
July 27, 2024
