SC affirms validity of SSS premium hike

THE SUPREME Court (SC) has declared valid the premium hike in members’ contributions implemented by the Social Security System (SSS) in 2013.

In a statement on Monday, the SC Public Information Office said the court denied for lack of merit the petition for prohibition filed by labor group Kilusang Mayo Uno (KMU), Center for Trade Union and Human Rights, Anakpawis Party-list, and the National Federation of Labor Unions-KMU.

In denying the petition, the SC said Republic Act No. 8282, the Social Security Act, is complete in its terms and conditions and contains sufficient standard for the Social Security Commission (SSC) to fix monthly contribution rate and minimum and maximum monthly salary credits.

The SSC in April 2013 issued a resolution providing for an increase of SSS members’ contribution rate to 11% from 10.4% and the maximum monthly salary credit from P15,000 to P16,000.

In October 2013, the commission issued another resolution for the revised schedule of contributions, in which the employer and employee shall equally shoulder the 0.6% increase in contributions.

The SC said the increase in contributions is reasonably necessary for SSS to observe its mandate of promoting social justice under the Social Security Act.

“Given the past increases since the inception of the law, the contribution rate increase of 0.6% applied to the corresponding monthly salary credit does not scream of unreasonableness or injustice,” it said.

The decision, dated April 2 but was released only yesterday, was penned by Associate Justice Marvic M.V.F. Leonen. — Vann Marlo M. Villegas