5/19/2021
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doctrine and to subordinate the police power to the contract clause.[54]
(emphasis supplied; citations omitted)
Indeed, the constitutional right to inviolability of contracts is not absolute. It is subject
to the proper exercise of the police power by the State. Further, the contracts referred
to by petitioners are labor contracts. Under the Civil Code, labor contracts are
impressed with public interest and must yield to the common good.[55]
Here, the Court finds that the State reasonably exercised its police power in increasing
the SSS contribution under R.A. No. 11199. The new rates are not a drastic increase
based on the previous rates; these are imposed gradually; and these are justifiably and
rationally shouldered between the employer and the seafarer. Glaringly, petitioners
failed to present any credible evidence or argument that would show that the exercise
of the State's police power in increasing the SSS contributions are unreasonable and
will cause irreversible and significant economic damages and liabilities to the
stakeholders and the entire maritime industry.
Rather, the increased rate of the SSS coverage is in line with the State's objective to
establish, develop, promote and perfect a sound and viable tax-exempt social security
system suitable to the needs of the people throughout the Philippines which shall
promote social justice through savings, and ensure meaningful social security
protection to members and their beneficiaries against the hazards of disability,
sickness, maternity, old age, death, and other contingencies resulting in loss of income
or financial burden.[56]
Further, it must be emphasized that the provision of the law in equitably increasing the
SSS contribution rates is within the wisdom of Congress. As long as there is no grave
abuse of discretion in enacting the increased rates, the Court must respect the intent of
Congress to achieve a dynamic social security service for our seafarers. In St. Joseph's
College v. St. Joseph's College Workers' Association,[57] the Court held that:
Amidst these opposing forces the task at hand becomes saddled with the
resultant implications that the interpretation of the law would bear upon
such varied interests. But this Court cannot go beyond what the legislature
has laid down. Its duty is to say what the law is as enacted by the
lawmaking body. That is not the same as saying what the law should be or
what is the correct rule in a given set of circumstances. It is not the
province of the judiciary to look into the wisdom of the law nor to
question the policies adopted by the legislative branch. Nor is it the
business of this Tribunal to remedy every unjust situation that may arise
from the application of a particular law. It is for the legislature to enact
remedial legislation if that would be necessary in the premises. But as
always, with apt judicial caution and cold neutrality, the Court must carry
out the delicate function of interpreting the law, guided by the Constitution
and existing legislation and mindful of settled jurisprudence. The Court's
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