The Social Security System (SSS) said over the weekend it surpassed its 2023 net income target by 62.8 percent on the back of higher revenues.
Based on its 2023 unaudited financial statement, SSS said its net income amounted to P83.13 billion last year, exceeding its P51.06-billion target and P52.60 billion net income in 2022.
SSS president and chief executive Rolando Ledesma Macasaet said its 2023 profit was the highest on record.
“Our revenue in 2023 grew by 15.6 percent to P353.82 billion from P306.16 billion in the previous year,” Macasaet said.
He said the bulk of SSS revenue in 2023 came from contribution collection, which rose 18.2 percent to P309.12 billion from 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 said.
Macasaet said SSS recorded lower-than-revenue expenses of P270.69 billion, with the lion’s share of the total expenditure going 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 benefit payments last year stood at P259.03 billion, up by 6.7 percent from P242.81 billion in 2022, while operating expenses went up 8.4 percent to P11.65 billion from P10.75 billion.
“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 3 percent of other SSS income such as investments and loans,” Macasaet said.
Macasaet attributed the outstanding financial performance of SSS last year to the efforts of the SSS management and employees in intensifying its collection activities such as registering new paying members, improved collection from delinquent employers and the 2023 contribution rate hike.
“We implemented new initiatives in 2023 that resulted in an expansion of SSS membership and reaching more workers,” said SSS executive vice president for branch operations sector Voltaire Agas.
Agas said the SSS recorded a high collection of delinquencies from employers who were not remitting their employees’ contributions following the Run After Contribution Evaders (RACE) campaign.