The Social Security System (SSS) has implemented a 15% contribution rate starting this year, a move it deems essential to sustain the pension fund despite opposition from various sectors.
SSS Public Affairs Head Carlo Villacorta explained in an ABS-CBN News that the increase is part of Republic Act 11199, or the Social Security Act of 2018, which mandates contribution rate adjustments every two years until 2025. “We are just fulfilling the last tranche of what is prescribed in the law,” he said, noting that contribution rates began at 12% in 2019 and have progressively increased.
Under the new rate, employers cover 10%, while employees shoulder 5%. For example, an individual earning ₱10,000 monthly now contributes ₱1,500, up from ₱1,400. The hike also raised the minimum and maximum monthly salary credits (MSC) to ₱5,000 and ₱35,000, respectively, which Villacorta said would improve members’ benefits. “Sa pag-adjust ng monthly salary credit pataas, tataas rin ng bahagya o malaki ang ating benepisyo,” he added.
The Employers’ Confederation of the Philippines (ECOP) acknowledged the adjustment as inevitable under the law, though it remains opposed to increases during challenging times. ECOP President Sergio Ortiz-Luis Jr. remarked, “It looks like ok naman ang services ng SSS. But we expect that dapat mag stabilize ang SSS.”
However, critics such as Gabriela Party List Representative Arlene Brosas have called for the suspension of the hike, arguing that workers are already overburdened. “This is essentially squeezing dry our already overburdened workers,” she said, urging the government to prioritize wage increases over additional deductions.
The SSS defended the adjustment, stating it is critical to extending the fund’s life from 2032 to 2053, particularly after introducing an additional ₱1,000 pension benefit in 2017. Villacorta emphasized, “We cannot suspend the increase as it is included in the law.”
House Assistant Majority Leader Jude Acidre noted that while suspending the hike may provide immediate relief, it must be carefully studied to ensure the long-term health of the pension fund. “We need to carefully consider… kasi hindi pwedeng arbitrary i-suspend natin,” he said.
The SSS reported higher revenues in 2023 following its last rate increase and expects the current adjustment to bolster its financial sustainability.
