The Social Security System (SSS) has rejected calls to suspend the planned increase in contribution rates starting January 1, emphasizing that postponing the hike would harm its members and the pension fund’s ability to provide assistance.
Under the Social Security Act of 2018, SSS members’ contributions will rise from 14% to 15% of their monthly salary.
SSS President and CEO Robert Joseph De Claro explained that this will be the final increase in a series of hikes, stressing that delaying it would reduce the system’s capacity to support members in times of need.
Along with the contribution increase, the minimum Monthly Salary Credit (MSC) will rise to P5,000 from P4,000, and the maximum MSC will go up to P35,000 from P30,000.
This will help boost SSS benefits and contributions. De Claro also clarified that the small increase in contributions—just P190 more per month—would lead to a higher pension of around P400 when members retire.
He noted that Filipinos live on average until 72 years old, meaning the extra contribution would provide a net gain for members during retirement.
The SSS estimates that the contribution hike will raise around P51.5 billion in 2025, with a portion going directly to members’ Mandatory Provident Fund accounts.
De Claro stated that while the matter hasn’t been discussed with President Marcos, the case for the hike has already been presented to the Department of Finance.
