The Social Security System (SSS) contribution rate has already increased from 14 to 15 percent since January 1, 2025. In this regard, the employer will shoulder 10 percent and the employee 5 percent. Check out the agency's explanation and plans below.
1 Percent Contribution Hike Clarified
In a statement, the state-run pension fund revealed that this 1 percent contribution increase is "pursuant to the provisions of Republic Act (RA) No. 11199 or the Social Security Act of 2018."
Moreover, the minimum Monthly Salary Credit (MSC) will rise to PHP 5,000 from PHP 4,000, and the maximum MSC will go up to PHP 35,000 from PHP 30,000. These increases in contribution rates and MSC are the final tranche that was initiated in 2019.
Robert Joseph De Claro, SSS President and CEO, explained:
The scheduled contribution rate and MSC increases are among the most important reforms under RA 11199 that aim to ensure the long-term viability of the SSS. With this last tranche of contribution rate and MSC increases, the SSS fund is projected to last until 2053 – doubling the fund life to 28 years (vs 2032 or 14 years when an actuarial valuation study was performed in 2018). This will allow us to fulfill our social security obligations to current and future members during times of contingencies.
De Claro stated that the increase in the contribution rate and MSC will lead to an extra collection of roughly PHP 51.5 billion in 2025. Of that amount, 35 percent, or PHP 18.3 billion, will go directly into Social Security System members' Mandatory Provident Fund (MPF) accounts.
In 2024, the SSS provided PHP 9.7 billion in loans to over 500,000 members affected by disasters. De Claro noted:
Such additional collection amount also enables SSS to support the national government in times of difficulty, particularly as regards granting calamity loans.
SSS Plans in 2025
De Claro stated:
Our top priority in 2025 is service excellence to SSS members. We aim to enhance our programs and systems to provide superior customer service to our members.
SSS will persist in its efforts to ensure that all self-employed workers in the Philippines are covered by its KaSSSangga Collect and E-Wheels Programs, which are designed to promote universal inclusion in social security.
With a positive market outlook for 2025, SSS aims to improve its investment income from different asset classes.
De Claro cited:
The favorable outlook should enable SSS to actively participate in the capital markets and contribute to jobs generation as companies build and expand their businesses.
He added:
Ultimately, our goal is to make SSS relevant in the life of every Filipino at every point in their lives by providing quality social protection and espousing the value of saving for the future.
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What do you think about the new 15% contribution rate for SSS? Some people might support it, while others may not be happy. I'd love to hear your opinions in the comments below.
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