2024 Brings Wave of Rate Hikes Across Utilities and Contributions in the Philippines

In 2024, Filipinos will face a range of rate and contribution hikes, impacting various sectors. The Department of Tourism (DOT) has announced that the Metropolitan Waterworks and Sewerage System (MWSS) approved rate hikes for Manila Water Company Inc. and Maynilad Water Services Inc., with an average increase ranging from P6.41 to P7.87 per cubic meter starting in January 2024, reflecting inflation and spending programs of the water concessionaires.

Additionally, households will see an increase in Liquefied Petroleum Gas (LPG) prices, with Petron Corp. announcing a P3.40 per kilogram increase effective January 1, 2024. The Metro Rail Transit Line 3 (MRT3) fares are also set to rise, with the minimum fare increasing from P13 to P16 and the end-to-end trip fare from North Avenue to Taft Avenue station going up from P28 to P34.

There will be changes in statutory contributions too. The Social Security System (SSS) will maintain its 14% total contribution rate in 2024, with employers contributing 9.5% and employees 4.5%. However, PhilHealth is preparing for an increase from 4% to 5% in premium rates in January 2024, with a corresponding rise in the maximum monthly basic salary ceiling from P80,000 to P100,000. Pag-IBIG is also set to increase its monthly fund salary from P5,000 to P10,000, and the contribution rate will double from 1% to 2%, resulting in a P200 contribution from both member and employer.

These increases are expected to further burden ordinary Filipinos, as pointed out by economist Emmanuel Leyco. He notes that these hikes are inflationary, especially impacting average employees. Leyco emphasizes the different impacts of inflation on rich and poor, where the latter feel the brunt of rising prices more acutely.

These adjustments in rates and contributions reflect the ongoing economic challenges and the need for infrastructure and social security funding. However, they also pose significant challenges for many Filipinos, particularly in managing their personal finances amidst rising costs​​​​.