Manila: The government may temporarily absorb premium contributions to state-run pension funds to help cushion the impact of rising fuel costs and inflation on workers, Sen. Sherwin Gatchalian said Tuesday. Gatchalian noted that this measure aims to allow employees to retain more of their income as prices continue to rise.

According to Philippines News Agency, in a radio interview, Gatchalian explained that the proposal involves the government absorbing the premium payments to the Government Service Insurance System (GSIS) and the Social Security System (SSS). This initiative would potentially return about 9 to 10 percent of a worker's salary, equating to approximately PHP2,000 to PHP3,000 monthly for those earning PHP30,000.

The senator estimated that this proposal would cost the government around PHP9 billion per month, contingent on the duration of global tensions that continue to drive inflation. Gatchalian referenced similar measures implemented during the pandemic, suggesting that a temporary intervention could once again mitigate financial strain on workers.

Gatchalian emphasized that the proposal is part of a broader strategy to provide targeted subsidies, especially for sectors most affected by high fuel prices. The senator also mentioned that the government is actively assessing funding sources to sustain these social interventions while managing fiscal constraints.