The Social Security System (SSS) said Feb. 24 that its net income in 2023 exceeded by 62.8 percent its target of P51.06 billion, to P83.13 billion, as it recorded higher revenues than its expenses.
Based on its 2023 unaudited financial statement, SSS’ net income of P83.13 billion in 2023 surpassed the P52.60 billion net income recorded in the previous year.
SSS president and chief executive officer Rolando Ledesma Macasaet noted that the P83.13 billion profit last year was the highest net income attained by the agency.
“Our revenue in 2023 grew by 15.6 percent to P353.82 billion from P306.16 billion in the previous year,” Macasaet said in a press release, adding that bulk of the revenue came from contribution collection, which rose by 18.2 percent to P309.12 billion, from the P261.44 billion collected in 2022.
“Our record-high net income last year shows that we continue to strengthen our finances through programs and policies that increase new paying members and strengthen collection efforts,” he added.
SSS recorded lower-than-revenue expenses of P270.69 billion, where the lion’s share of the total expenditure in 2023 went to benefit payments to members and pensioners.
“Our 2023 expenses reflect how SSS has prudently kept its expenses at modest levels, and ensure that every peso contributed by its members are well spent for the benefit of all its stakeholders,” Macasaet said.
He said that benefit payments last year stood at P259.03 billion, up by 6.7 percent from P242.81 billion in 2022, while operating expenses reached P11.65 billion, 8.4 percent higher than the P10.75 billion a year ago.
“Our operating expenses last year were only 30.32 percent of the allowed charter limit of P38.4 billion. Based on our charter, the operating expenses are 12 percent of the contribution collections and three percent of other SSS income, such as investments and loans,” Macasaet explained.
He attributed the outstanding financial performance to efforts of the SSS management and employees in intensifying collection activities, such as registering new paying members, improving collection from delinquent employers, and the 2023 contribution rate hike.
“We implemented new initiatives in 2023 that resulted in an expansion of membership and reaching more workers,” SSS executive vice president for Branch Operations Sector Voltaire Agas said.
Agas also explained that it recorded a high collection of delinquencies from employers, who are not remitting their employees’ contributions, due to the Run After Contribution Evaders (RACE) campaign. ||
