SSS defends contribution rate hike

The Social Security System (SSS) has announced that its contribution increase will secure the fund’s long-term viability, extending its life until 2053.

Effective this month, the 1-percent rate hike is mandated under Republic Act 11199, or the Social Security Act of 2018. 

The adjustment raises the contribution rate from 14 percent to 15 percent, accompanied by changes in the minimum and maximum monthly salary credits (MSC). 

The minimum MSC will rise to P5,000 from P4,000, while the maximum MSC will increase to P35,000 from P30,000.

“These reforms, including the scheduled contribution rate and MSC increases, are critical to ensuring the long-term sustainability of the SSS fund,” said SSS President and CEO Robert Joseph De Claro. “With this final tranche of increases, the fund life is projected to double, extending to 2053 from the 2032 projection made during the 2018 actuarial valuation study. This provides the necessary resources to meet our obligations to both current and future members in times of need.”

The contribution hike is expected to generate an additional P51.5 billion in collections this year, with P18.3 billion allocated directly to the Mandatory Provident Fund (MPF) accounts of members.

“This increased collection enables us to support the national government during challenging times, particularly in providing calamity loans,” De Claro noted. 

Last year, SSS disbursed P9.7 billion in calamity loans to over 500,000 affected members.

Looking ahead, De Claro emphasized that service excellence will remain the top priority in 2025. 

“We aim to enhance our programs and systems to deliver superior customer service. At the same time, we will continue our efforts toward universal social security inclusion through initiatives like the KaSSSangga Collect and E-Wheels programs, targeting self-employed workers across the country.”

The SSS also plans to leverage the favorable market outlook in 2025 to boost investment income across various asset classes. “This positive environment allows us to actively participate in capital markets, supporting job creation as businesses expand,” De Claro explained.

“Our ultimate goal is to remain a vital part of every Filipino’s life by providing quality social protection and promoting the importance of saving for the future,” he added.