SSS Contribution Hike 2025: What You Need to Know

SSS Implements RA 11199: Social Security Act of 2018 Contribution Hike

The Social Security System (SSS) has begun implementing the provisions of Republic Act No. 11199, also known as the Social Security Act of 2018. This act mandates a gradual increase in contributions to ensure the financial viability of the state pension fund for private sector workers.

Ensuring Financial Viability for the Future

SSS President and CEO Rolando Ledesma Macasaet announced that the law-mandated contribution hike will provide immediate benefits to over 13 million workers in the Philippines. The increase is crucial for sustaining the SSS fund, which provides essential social security protection for Filipino workers and their families.

Enacted on February 7, 2019, the Social Security Act of 2018 expanded the powers and duties of the Social Security Commission (SSC) to ensure the long-term viability of the SSS. According to the law, SSS is required to increase the contribution rate by one percentage point every two years until it reaches 15 percent by 2025.

2023 Contribution Rate Increase

Following the schedule under RA 11199, the contribution rate has increased to 14 percent from the previous 13 percent. This year, employers will shoulder the one percent increase, raising their contribution to 9.5 percent, while employees will continue to contribute 4.5 percent.

Finance Secretary and SSC Chairperson Benjamin E. Diokno supports this change, stating, “It is the right thing to do for the institution and its members.”

Benefits and Impact on Workers

Macasaet emphasized that the contribution hike is designed to benefit workers by ensuring the SSS can continue to provide a viable social protection system. “This will not be a burden on workers but will be shouldered by employers,” Macasaet stated. “Workers earning less than ₱25,000 per month, who comprise 78 percent of SSS-paying employee members, will not be affected.”

Government and Employer Support

Macasaet, who previously served as President and General Manager of the Government Service Insurance System (GSIS) during the Duterte administration, was appointed by President Marcos on January 5 to head the SSS, replacing former SSS PCEO Michael Regino. He noted that under existing tax laws, employers can deduct their share of the contribution hike from their taxable income, highlighting a whole-of-nation approach to securing workers' futures.

Response from Employer Groups

Despite support from government officials, employer groups such as the Philippine Chamber of Commerce and Industry (PCCI), the Employers Confederation of the Philippines (ECOP), and the Philippine Exporters Confederation Inc. (PECI) have urged the SSS to suspend the mandated one percent increase in contributions. However, SSS officials argue that postponing the measure would compromise the fund's actuarial life, ultimately prioritizing the long-term interests of workers and the fund's solvency.

Macasaet reassured that the contribution hike will not impose an additional financial burden on employees, urging employers to view the hike as an investment in the workers' pension fund rather than an operational expense. “We appeal to our friends in big business to help us provide meaningful protection to the working class and their families against the hazards of disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden,” he added. “A socially protected working class is our best recipe for continued industrial peace in our country.”

By implementing RA 11199, the SSS aims to secure a stable and reliable social security system for the future, ensuring that Filipino workers and their families have the financial protection they deserve.

For more detailed explanation, please watch this video.
Reference: https://www.sss.gov.ph