In January of the year 2025, the increment introduced by the Social Security System (SSS) in its contribution rate increased to 15% from 14%, being the last tranche of increases mandated by Republic Act No. 11199 also referred to as the Social Security Act of 2018. This is intended to make the fund financially sustainable in the long term for the SSS so that it will be able to provide continuous support to present and future members.
Contribution Rate Split: Theoma-Employer vs. Employee
The contribution rate of 15% would be allocated in the following manner: -10% will be the employers’ share, while 5% is for the employee’s contribution. For every ₱1,000 earned by any employee, an employer contributes ₱100 to the contribution scheme, while the employee has to chip in ₱50. It can be derived from this that both will have steps, but in equal but different amounts, toward securing future benefits for employees.
Adjusted Monthly Salary Credits (MSC)
Besides the increase in the contribution rates, the System is also adjusting the Monthly Salary Credit (MSC) brackets. The minimum MSC has been raised from ₱4,000 to ₱5,000, and the maximum MSC has been increased from ₱30,000 to ₱35,000. All these changes aim to reflect current earning conditions of members more realistically and maximally and lead to improved benefit payouts with time.
Positive Benefits on SSS Fund Life
These actions are expected to increase the viability of the SSS fund dramatically. From the original expectation that the fund would be projected to last until 2032, the funding life is now extended to 2053. With as much as such, the system would then be able to sustain the members’ need for decades to come.
Financial Benefits and Collection Projections
In view of the increased contributions, SSS projected additional collections of around ₱51.5 B in 2025. It has to be noted that 35% of this, or about ₱18.3 B, will be allocated into the Mandatory Provident Fund (MPF) accounts of SSS members. Such a fund is set up for members to provide them higher savings for retirement, in addition to regular SSS benefits.
Employer and Employee Responsibilities
Employers should ensure correct deductions of employee contributions and remittance of the whole amount, including their share, to the SSS. The promptness of remittance is very vital to avoid penalties and ensure employees’ benefits are being protected. Employees should regularly check their SSS accounts to confirm that their contributions are being accurately recorded.
What Comes Next-A Future Plan of SSS?
Since the last hike completes all contribution hikes mentioned under RA 11199, it has been implied there would not be any further increases in the near future within SSS. Instead, SSS would shift its focus toward optimizing digital services, improving returns from investments, and providing broader social security coverage for more Filipinos.