The Social Security System (SSS) defended the planned hike in member contributions this year, stressing that the adjustment is vital for the fund’s longevity and will support its sustainability for 28 years.
In a statement on Tuesday, the Social Security System (SSS) stated that the 1% increase in the contribution rate is in accordance with the provisions of Republic Act (RA) No. 11199, also known as the Social Security Act of 2018.
With the contribution rate increase, the minimum Monthly Salary Credit (MSC) will be adjusted to P5,000.00, up from P4,000.00, while the maximum MSC will be raised to P35,000.00 from the previous P30,000.00.
“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," SSS President and Chief Executive Officer Robert Joseph M. De Claro said.
"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 added.
He also noted that the combined increases in the contribution rate and MSC are expected to boost collections by approximately P51.5 billion in 2025, with 35% of this amount, or P18.3 billion, earmarked for direct deposits into the Mandatory Provident Fund (MPF) accounts of SSS members.
De Claro explained that the additional funds will enable the SSS to assist the national government, particularly in providing calamity loans during times of crisis.
In 2024, the SSS provided P9.7 billion in calamity loans to over 500,000 members affected by disasters.
"Our top priority in 2025 is service excellence to SSS members. We aim to enhance our programs and systems to provide superior customer service to our members," said De Claro.
Additionally, the agency vowed to continue its efforts toward achieving universal social security inclusion by expanding coverage for self-employed workers nationwide through its KaSSSangga Collect and E-Wheels Programs.
SSS also aims to enhance its investment income performance across various asset classes.
“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 said.
In prior statements, various civil society groups and lawmakers called for the postponement of the contribution increase.
Former SSS President Rolando Macasaet was among those who expressed concern, highlighting the financial hardship it could impose on lower-income individuals.
