THE SOCIAL Security System (SSS) announced that it is implementing a 1% contribution rate hike starting January 2025 to bring the contribution rate to 15% from the previous 14%, pursuant to the provisions of Republic Act (RA) No. 11199 or the Social Security Act of 2018.
The rate hike is accompanied also by increases in the minimum Monthly Salary Credit (MSC) to P5,000 from the previous P4,000 and in the maximum MSC to P35,000 from the previous P30,000.
In a statement, Robert Joseph De Claro, SSS president and chief executive officer, said with the last tranche of contribution rate and MSC increases, the SSS fund is projected to last until 2053 – doubling the fund life to 28 years.
“The scheduled contribution rate and MSC increases are among the most important reforms under RA 11199 that aim to ensure the long-term viability of the SSS. This will allow us to fulfill our social security obligations to current and future members during times of contingencies,” De Claro said.
SSS added that the implementation will put into effect the last tranche of contribution rate and MSC increases which started in 2019.
“Such additional collection amount also enables SSS to support the national government in times of difficulty, particularly as regards granting calamity loans,” De Claro said.
In 2024, SSS released P9.7-B in calamity loans to more than 500,000 calamity-stricken members.
