The Social Security System (SSS) has rolled out a contribution hike for its members. In a statement, the state-run pension fund announced that the contribution rate is now at 14%, up from 13% in 2022.
The SSS said that employers will bear the additional 1%, bringing their contribution to 9.5%. Employees will be charged the remaining 4.5%.
“Under existing tax laws, employers would be allowed to deduct their share of the contribution hike from their taxable income,” SSS President and Chief Executive Officer Rolando Macasaet said in a statement.
“This underscores a whole-of-nation approach in securing the future of our workers with the Philippine government also contributing in the form of tax relief to employers,” he added.
The pension hike is in accordance with the 2018 law that requires a contribution increase to make the pension fund viable. The same law also states that a 1% increase will be implemented every two years until 2025.
“It will not be a burden on workers but will be shouldered by employers. Workers earning less than ₱25,000 per month, who comprise 78% of SSS-paying employee members, will not be affected,” Macasaet explained.
