Private pension by Nick Youngson CC BY-SA 3.0 Pix4free

Social Security System (SSS) Hikes contribution starting January 2025. This Monthly Salary Credit (MSC) or increase aims to boost collections and enhance members’ benefits. This hikes the contribution from 14% (2024) to 15% (2025). This increase forms the final hike starting 12% from 2019 as mandated under the Republic Act No.11199. Under the law, the SSS contribution rate increases by 1% every two years. SSS President and CEO Robert Joseph de Claro said the adjustment will earn a collection of 51.5 billion php for 2025.

Amid criticisms, SSS defended its action. “With this last tranche of contribute hike, the SSS fund life is expected to last until 2053 or increasing the fund life to 28 years instead of 28 years (2032 or 14 years) according to the actuarial validation study made in 2018. Raising to 15% allows us to help our current and future members in emergencies/contingencies,” he said.

The fund life in this context refers to the projected duration in which the state pensioner can benefit its members based on contributions, current financial conditions, and payouts. Monthly Salary Credit pertains to the amount used to calculate how much both employees and employers will contribute to the SSS fund.

Executive secretary Lucas Bersamin guaranteed that the increase is well studied. “The SSS constitutes a highly respected actuary and study,” he added. On the other hand, former SSS President and CEO Rolando Ledesma Macasaet informed the Palace to gradually implement or suspect the implementation of the Social Security Act.

Employers cover 10% of the 15% contribution rate, while the employees pay 5% or the rest. SSS also increased the MSC from 4,000 php to 5,000 php and the maximum credits from 30,000 php to 35,000 php.

While SSS clarified the good intentions for this increase, some sectors opposed the hike. A group of OFWs, such as the Migrante International, criticized the increase. The organization claimed that this hike would form a burden to workers and OFWs who are already struggling financially. Josie Pingkihan, the organization’s secretary general, said that the take-home pay of migrant workers is already declining as a result of an increase in electricity, food, and other expenses, and the state is now adding another burden.