MANILA – Suspending or temporarily absorbing contributions to the Government Service Insurance System (GSIS) and Social Security System (SSS) could help boost the purchasing power of Filipinos amid rising prices, Senator Win Gatchalian said on Wednesday.
Gatchalian said employee contributions, which account for a significant portion of monthly deductions, may be suspended or shouldered by the government to ease the burden on workers affected by inflation.
“Malaki kinakaltas. Almost nasa mga 9 to 10 percent yan… pero yung employee share puwedeng i-suspend o puwedeng i-absorb ng gobyerno bilang tulong na rin sa mga kababayan natin na tinatamaan ngayon ng inflation (The deductions are large, around 9 to 10 percent… but the employee share can be suspended or absorbed by the government as assistance to those affected by inflation),” he said in a radio interview.
Gatchalian said the proposal is intended to address declining purchasing power as inflation continues to push up the cost of goods.
“Dahil makita natin tumataas ang inflation… nakakababa ng purchasing power ng mga kababayan natin (As inflation rises… it reduces the purchasing power of our people),” he said.
Gatchalian said that while lower-income households are the most vulnerable, middle-income earners are also affected, particularly those who shoulder fuel and transport costs.
He said the measure has precedent, noting that similar relief mechanisms were implemented during the pandemic.
“Ginawa na natin yan during the pandemic… meron nang model yan (We have done this during the pandemic… there is already a model for this),” he added.
Gatchalian said that while the proposal could provide immediate relief, it would need to be balanced against available government resources.
He also cautioned against suspending all mandatory contributions, noting that health-related coverage remains critical.