In January 2025, the Social Security System (SSS) implemented a 1% increase in contribution rates, raising the total from 14% to 15%. Mandated by Republic Act 11199, also known as the Social Security Act of 2018, this hike aims to extend the fund’s viability and ensure it can meet obligations until 2053.
The increase is the final tranche of scheduled hikes under the 2018 law.
Under the revised contribution structure, employees now pay 5% of their monthly salary, while employers shoulder 10%. The minimum Monthly Salary Credit (MSC) has been raised from ₱4,000 to ₱5,000, and the maximum MSC from ₱30,000 to ₱35,000. According to SSS President and CEO Robert Joseph De Claro, these changes will generate an additional ₱51.5 billion in 2025, with ₱18.3 billion allocated to members’ Mandatory Provident Fund accounts.
While the SSS highlights the importance of this increase for strengthening benefit programs, it has drawn criticism from workers and businesses. Employees have raised concerns over reduced disposable income, while small and medium-sized enterprises (SMEs) argue that higher contributions add financial strain. Critics point out that the hike comes at a time when inflation and economic uncertainty are already affecting households and businesses.
De Claro defended the move, stating that delaying the increase could jeopardize the SSS’s ability to provide long-term benefits. He urged members to consider the hike as an investment in financial security, emphasizing that enhanced benefits and services are part of the plan.
Some lawmakers have also weighed in on the issue, calling for a balance between ensuring the fund’s sustainability and addressing the immediate economic burden on workers. Despite the criticism, the SSS maintains that the adjustment is necessary to uphold its commitments to members.
The SSS encourages members to review the updated contribution schedule on its website to better understand how the changes impact their contributions. This development underscores the challenge of balancing a sustainable social security system with the financial realities faced by workers and employers in the Philippines.
