SSS implements last tranche of contribution hike

CEBU, Philippines — The Social Security System (SSS) announced the implementation of a one-percent contribution rate hike starting January 2025, raising the contribution rate to 15 percent from the previous 14 percent.

This adjustment is in line with the provisions of Republic Act (RA) No. 11199, also known as the Social Security Act of 2018.

The increase is accompanied by adjustments to the Monthly Salary Credit (MSC), with the minimum MSC rising to P5,000.00 from P4,000.00, and the maximum MSC increasing to P35,000.00 from P30,000.00.

According to SSS President and Chief Executive Officer (CEO) Robert Joseph M. De Claro, these changes mark the final tranche of contribution rate and MSC increases that began in 2019.

“The scheduled contribution rate and MSC increases are among the most important reforms under RA 11199, aimed at ensuring the long-term viability of the SSS. With this last tranche of adjustments, the SSS fund is projected to last until 2053—doubling the fund life to 28 years, compared to 14 years (until 2032) based on an actuarial valuation study conducted in 2018. This will enable us to meet our social security obligations to current and future members during contingencies,” De Claro said.

He also noted that the increased contribution rate and MSC will result in an additional collection of approximately P51.5 billion in 2025, of which 35 percent—or P18.3 billion—will be allocated directly to the Mandatory Provident Fund (MPF) accounts of SSS members.

“This additional collection also positions the SSS to better support the national government during challenging times, particularly in providing calamity loans,” De Claro explained.

In 2024, the SSS released P9.7 billion in calamity loans to more than 500,000 members affected by disasters.

Plans for 2025

“Our top priority in 2025 is service excellence for SSS members. We aim to enhance our programs and systems to deliver superior customer service,” De Claro said.

He added that the SSS would continue promoting universal inclusion in social security through its KaSSSangga Collect and E-Wheels Programs, which aim to expand coverage for self-employed workers across the Philippines.

With a positive market outlook for 2025, the SSS also plans to improve investment income from various asset classes.

“The favorable outlook should enable the SSS to actively participate in capital markets, contributing to job generation as companies grow and expand their businesses,” De Claro added.

“Ultimately, our goal is to make the SSS relevant in the life of every Filipino at every stage of their lives by providing quality social protection and fostering the value of saving for the future,” De Claro emphasized. — (FREEMAN)