The Social Security System said Jan. 7 that it is implementing a one percent contribution rate hike starting this month to bring the contribution rate to 15 percent, from the previous 14 percent, pursuant to Republic Act 11199, or the Social Security Act of 2018.
This is accompanied by increases in the minimum Monthly Salary Credit (MSC) to P5,000, from the previous P4,000, and in the maximum MSC to P35,000 from the previous P30,000.
With these, SSS put into effect the last tranche of contribution rate and MSC increases which started in 2019.
“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,” its president and chief executive officer, Robert Joseph De Claro, said in a statement.
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, as against 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 stressed, adding the contribution rate and MSC increases will result in additional collection of about P51.5 billion in 2025, with 35 percent of which or P18.3 billion going directly to the Mandatory Provident Fund accounts of SSS members.
Such additional collection amount also enables SSS to support national government in times of difficulty, particularly as regards the granting of calamity loans, De Claro explained. In 2024, SSS released P9.7 billion in calamity loans to more than 500,000 calamity-stricken members.
“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,” De Claro also said.
The agency will continue to work on universal inclusion to social security through its KaSSSangga Collect and E-Wheels programs for coverage of self-employed workers all over the Philippines.
With the market outlook being positive in 2025, SSS also looks toward improving investment income performance from various asset classes.
“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,” De Claro said. “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.” ||