CEBU, Philippines — The Social Security System (SSS) has announced a one percent increase in its contribution rate, effective January 2025, raising the rate from 14 percent to 15 percent.
This adjustment, mandated under Republic Act No. 11199 or the Social Security Act of 2018, is part of the agency’s long-term reform measures.
Alongside the rate hike, SSS is also increasing the minimum Monthly Salary Credit (MSC) from P4,000 to P5,000 and the maximum MSC from P30,000 to P35,000.
According to SSS President and Chief Executive Officer (CEO) Robert Joseph M. De Claro, this is the final tranche of the contribution rate and MSC adjustments, which began in 2019.
The reforms, he add aim to extend the SSS fund life to 2053, effectively doubling its viability to 28 years compared to the 14-year fund life projected in 2018.
“These adjustments are critical to ensuring the long-term sustainability of the SSS and fulfilling our obligations to current and future members during times of need,” De Claro stated.
The 2025 adjustments are expected to generate an additional P51.5 billion in collections, with 35 percent or P18.3 billion directly allocated to members’ Mandatory Provident Fund (MPF) accounts.
De Claro noted that this increased collection capacity also strengthens SSS’s ability to support national initiatives, including calamity loans.
In 2024 alone, SSS disbursed P9.7 billion in calamity loans to over 500,000 affected members.
Looking ahead, SSS is prioritizing service excellence and universal social security coverage. The agency plans to expand its KaSSSangga Collect and E-Wheels programs to reach self-employed workers nationwide.
SSS also aims to capitalize on favorable market conditions to enhance investment income from various asset classes, contributing to national economic growth by supporting job creation as businesses expand.
“Our ultimate goal is to ensure that SSS remains a vital part of every Filipino’s life by providing quality social protection and promoting the importance of saving for the future,” De Claro said. — (FREEMAN)