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  • August 31, 2025

SSS Announces 1% contribution rate hike, plans for 2025

January 15, 2025 by Editha Z. Caduaya

DAVAO CITY —The Social Security System (SSS) has announced a 1% hike in the contribution rate, effective January 2025. The increase will raise the contribution rate from 14% to 15%, in line with Republic Act No. 11199 provisions or the Social Security Act of 2018. Additionally, the minimum Monthly Salary Credit (MSC) will rise to P5,000 from the previous P4,000, while the maximum MSC will increase to P35,000 from P30,000. These changes implement the final phase of the contribution rate, and MSC increases began in 2019.

SSS President and Chief Executive Officer Robert Joseph M. De Claro explained that these reforms are crucial for the long-term sustainability of the SSS. “With the final tranche of contribution rate and MSC increases, the SSS fund is projected to last until 2053, doubling its lifespan to 28 years, compared to 2032 when an actuarial study was conducted in 2018,” De Claro said. He added that this will ensure that the SSS can continue fulfilling its obligations to current and future members during times of need.

The increase in contributions is expected to raise about P51.5 billion in 2025. Of this amount, 35%, or approximately P18.3 billion, will be allocated to SSS members’ Mandatory Provident Fund (MPF) accounts. “This additional revenue also allows the SSS to support the national government in times of crisis, particularly in providing calamity loans,” De Claro said. In 2024, SSS disbursed P9.7 billion in calamity loans to over 500,000 affected members.

Looking ahead to 2025, De Claro outlined the SSS’s key priorities, including enhancing customer service for members. “Our top priority is service excellence. We aim to improve our programs and systems to offer superior service to our members,” he said. The SSS will continue its efforts to expand social security coverage, particularly for self-employed workers, through its KaSSSangga Collect and E-Wheels Programs.

Additionally, with a positive market outlook for 2025, the SSS aims to improve its investment income across various asset classes. “The favorable outlook should allow SSS to actively participate in capital markets and contribute to job creation as businesses expand,” De Claro noted.

Ultimately, De Claro emphasized that the goal of the SSS is to remain relevant in the lives of Filipinos by providing quality social protection and encouraging savings for the future.

Filed Under: Business, Top Stories, Where's Our Money

About Editha Z. Caduaya

Edith Z Caduaya studied Bachelor of Science in Development Communication at the University of Southern Mindanao.

The chairperson of Mindanao Independent Press Council (MIPC) Inc.

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