INSURANCE: SOCIAL SECURITY SYSTEM

Social Security Insurance from my perspective has definitely some advantages to offer especially in terms of redistribution of wealth. But, the disadvantaged contributors are rather dragged down to the lower edged of economic standing, eventually creating more people within or below poverty line than elevating living status. For example, majority of the national population are blue collar workers that earn only minimum wage per day. This minimum wage is not equitable to expenditures of a family of three. The social security insurance takes away a certain percentage from it, usually equivalent to 1 and 1/2 sack of rice per month from a family bread winner who does not even purchase half a sack of rice regularly, but, buys per kilo of rice for a day or two family consumption. To compensate for the lost part of the earning, the minimum wage earner scrambles finances with creditors in a struggle to cope with the basic family needs.

Where does the insurance contribution of the poor wage earner goes? The bulk of it goes to the salaries of employees sitting in aircondition rooms of the insurance system, representation allowances in conferences, or to construct roads and bridges for the brand new cars and limousines, while the poor contributor and his family settles along a shanty in a river bank. The moment he wants to get a portion of his own money, the poor contributor is told that he should borrow or make a loan. Pay processing charges, interest charges, and penalties. The rich and the poor who conceded to the disadvantageous concept winded up in an embarrased position when calamities hit them unguarded.

Social security insurance perhaps should be made optional especially for the poor. Foundations that are generating large revenues and not paying income tax, as well as religious schools that too are non-tax payers should cover the social insurance responsibilities to balance the financial equation of the economy. In fact, the volume of family earnings in the Philippine setting goes into religious schools, yet, the schools do not contribute anything in the redistribution of weath in terms of cold cash. This is also one of the biggest loophole that must be addressed rather than picking up from the very shallow pockets of people who struggles to survive. Insurance then should serve as a social security rather than an instrument to further the difficulties of the already underprivileged portion of society.