More Money in Your Pocket?
Filipino workers may soon get to keep more of their hard-earned salaries — at least for a while — as lawmakers push for a temporary halt on mandatory contributions to the Government Service Insurance System (GSIS), Social Security System (SSS), PhilHealth, and Pag-IBIG amid the ongoing oil crisis battering household budgets.
—
—
Senator Christopher “Bong” Go has filed the “Fuel Crisis Immediate Relief and Response Act,” which proposes deferring contributions for two months to PhilHealth, Pag-IBIG, GSIS, and SSS. Deferred amounts would be paid back in three staggered monthly installments. [1]
The proposal also covers a 30-day grace period for existing and outstanding loans from GSIS, SSS, Pag-IBIG, and other government lending institutions — without penalties, interest, or other charges during the grace period. [1]
Senator Imee Marcos, meanwhile, has called for the temporary suspension of all mandatory salary deductions, saying workers’ wages should be released in full to help them keep up with the rapid rise in the cost of living. [2]
—
—
“Let us suspend salary deductions for now and release their wages in full, so they may somehow keep pace with the galloping rise in the cost of living,” she said. [2]
The call for relief comes as fuel price hikes continue to squeeze Filipino households. The Department of Economy, Planning, and Development warned that inflation could hit between 7.4 and 8.9 percent, with a worst-case scenario pushing it as high as 14.3 percent if crude oil prices continue to climb — driving up transport costs and the prices of basic goods while wages remain stagnant. [2]
Marcos noted that similar contribution relief measures had already been implemented during the COVID-19 pandemic and following past calamities , suggesting the government has both the precedent and the capacity to act. [2]
The proposal is seen as a practical way to boost workers’ take-home pay without requiring wage increases — putting more money directly into circulation and helping ordinary Filipinos cope with the ongoing economic strain.
—
—
Meanwhile, Senator Win Gatchalian on Wednesday said that easing the burden of mandatory salary deductions is one of the most direct ways to restore the purchasing power of ordinary Filipinos being squeezed by rising prices. [3]
“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,” he said in a radio interview. [3]
“Dahil makita natin tumataas ang inflation… nakakababa ng purchasing power ng mga kababayan natin,” he added. [3]
Gatchalian stressed that the proposed relief is not just for low-income households. Middle-income earners, he said, are equally vulnerable — especially those who personally shoulder fuel and transportation costs that have surged in recent months. [3]
—
—
What It Means for Government Employees
For government workers covered by GSIS, the proposal could mean an additional 9 percent of their monthly salary staying in their pockets — even temporarily. Similarly, government workers will also benefit the same from temporary suspension of their contribution to Pag-IBIG Fund.
For private sector employees under SSS, the relief would work similarly, giving millions of workers across both sectors a meaningful, if short-term, financial cushion at a time when every peso counts.
•••
Sources:
[1] Oil price relief: Bong Go bill temporarily suspends PhilHealth, SSS, GSIS contribution payments, Manila Bulletin
[2] Imee wants SSS, GSIS, PhilHealth, Pag-IBIG contributions suspended amid oil crisis, Daily Tribune
[3] GSIS, SSS contribution relief seen to boost purchasing power, Philippine News Agency
—
—