Today I Learned: Why SSS Increased Its Members' Contributions
There has been a public outcry on social media when news broke that the Social Security System (SSS) is increasing its contribution rate from 14 percent to 15 percent.
"Kahit tumaas salary range mo, tataas din contribution mo. In the end, 'di mo rin ramdam ung sahod mo," observed a Reddit user.
"Nung lumipat ako dito sa work ko, akala ko ok na eh. Kasi medyo malaki yung jump. Tapos biglang nakakarimarim yung mga pangyayari sa deductions ko," remarked another.
"Buti sana kung lalaki din limit ng pwede i-loan," said a different user.
"Mas malaki pa tinaas ng contribution kesa salary increase ko eh. Jusko!" a netizen shared in a separate thread.
Here's hoping the powers-that-be have perused the people's gripes and grievances, because reading between those lines might just be the plot twist we all need!
The burning question on everyone's mind: Why is the SSS implementing a one-percent contribution increase in the first place?
According to the agency, the decision is pursuant to the provisions of Republic Act (RA) No. 11199 or the Social Security Act of 2018, which aims to "ensure the long-term viability" of SSS.
This is accompanied by increases in the minimum Monthly Salary Credit (MSC) to P5,000 from the previous P4,000.00 and in the maximum MSC to P35,000 from the previous P30,000. With these, SSS put into effect the last tranche of contribution rate and MSC increases which started in 2019.
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“The scheduled contribution rate and MSC increases are among the most important reforms under RA 11199 that aim to ensure the long-term viability of the SSS," said SSS president and chief executive officer Robert Joseph M. De Claro. "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). This will allow us to fulfill our social security obligations to current and future members during times of contingencies.”
He explained that the contribution rate and MSC increases will result in additional collection of about P51.5-B in 2025, 35 percent of which or P18.3-B goes directly to the Mandatory Provident Fund (MPF) accounts of SSS members.
“Such additional collection amount also enables SSS to support national government in times of difficulty, particularly as regards granting calamity loans,” De Claro explained. He added that in 2024, SSS released P9.7-B in calamity loans to more than 500,000 calamity-stricken members.
De Claro insists that the agency's top priority in 2025 is service excellence to SSS members and that they aim to enhance their programs and systems to provide superior customer service to their members. "SSS shall continue to work on universal inclusion to social security through its KaSSSangga Collect and E-Wheels Programs for coverage of self-employed workers all over the Philippines," their press release stated.
SSS also looks to improve investment income performance from various asset classes. “The favorable outlook should enable SSS to actively participate in the capital markets and contribute to jobs generation as companies build and expand their businesses,” he said.
“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,” De Claro emphasized.
