By Liza Soriano
MANILA — The Social Security System (SSS) announced a 1 percent contribution rate hike effective January 2025, raising the rate to 15 percent from the previous 14 percent, in accordance with Republic Act (RA) No. 11199, or the Social Security Act of 2018.
Additionally, the minimum Monthly Salary Credit (MSC) will increase to P5,000 from P4,000, and the maximum MSC will rise to P35,000 from P30,000. This marks the final tranche of contribution rate and MSC increases initiated in 2019.
“The scheduled contribution rate and MSC increases are among the most important reforms under RA 11199 to ensure the long-term viability of the SSS. With this last tranche, the SSS fund is projected to last until 2053, effectively doubling the fund life from 14 years to 28 years,” explained SSS President and CEO Robert Joseph M. De Claro.
De Claro added that the rate and MSC increases will result in an additional collection of about P51.5 billion in 2025, with 35 percent or P18.3 billion going directly to the Mandatory Provident Fund (MPF) accounts of SSS members.
“This additional collection also enables SSS to support the national government during difficult times, particularly in granting calamity loans,” he said.
In 2024, SSS released P9.7 billion in calamity loans to over 500,000 members affected by calamities.
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