The Social Security System (SSS) announced that it is implementing a 1% contribution rate hike starting January 2025 to bring the contribution rate to 15% from the previous 14%, pursuant to the provisions of Republic Act (RA) No. 11199 or the Social Security Act of 2018. This is accompanied also by increases in the minimum Monthly Salary Credit (MSC) to P5,000.00 from the previous P4,000.00 and in the maximum MSC to P35,000.00 from the previous P30,000.00. With these, SSS put into effect the last tranche of contribution rate and MSC increases which started in 2019.
“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. 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,” SSS President and Chief Executive Officer Robert Joseph M. De Claro explained.
He said that the contribution rate and MSC increases will result in additional collection of about P51.5-B in 2025, 35% 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. In 2024, SSS released P9.7-B in calamity loans to more than 500,000 calamity-stricken members. #
