Amid public concerns over the scheduled one percent increase in contribution rates, the Social Security System (SSS) on Tuesday clarified that the adjustment supports long-term plans to ensure viability of the state pension fund.
The SSS recently announced it would raise the contribution rate of members to 15 percent from the current 14 percent, which is mandated under Republic Act No. 11199 or the Social Security Act of 2018.
“The scheduled contribution rate and monthly salary credit (MSC) increases are among the most important reforms under RA 11199 that aim to ensure the long-term viability of the SSS,” explained SSS President and CEO Robert Joseph de Claro 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 (vs 2032 or 14 years when an actuarial valuation study was performed in 2018,” he added.
Why the Hike Is Necessary
The increase is also accompanied by adjustments in the MSC brackets. Starting January 2025, the minimum MSC will rise to ₱5,000 (from ₱4,000), while the maximum MSC will increase to ₱35,000 (from ₱30,000).
De Claro explained these adjustments are expected to generate an additional ₱51.5 billion in collections for 2025, with ₱18.3 billion going directly to the members’ Mandatory Provident Fund (MPF) accounts.
“Such additional collection amount also enables SSS to support national government in times of difficulty, particularly as regards granting calamity loans,” according to the SSS president.
In 2024, the SSS released ₱9.7 billion in calamity loans to over 500,000 members affected by natural disasters.
Enhancing Services and Investments
As part of its priorities for 2025, SSS plans to focus on service excellence and universal social security coverage. “We aim to enhance our programs and systems to provide superior customer service to our members,” De Claro stated.
Programs like KaSSSangga Collect and E-Wheels will continue to expand coverage among self-employed workers nationwide. The SSS also aims to maximize investment opportunities in 2025, citing a favorable market outlook.
“Ultimately, 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,” the SSS chief underscored.
