Rowegie Abanto

Members of the Social Security System (SSS) transact for services at a branch in Cubao, Quezon City on July 8, 2022. Jonathan Cellona, ABS-CBN News

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SSS-EMPLOYERS

Katrina Domingo

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/173621445586420220708-employer-business-JC-9.jpg" style="width:960px" class="fr-fic fr-dib"/><span class="fr-inner" style="text-align:left">Members of the Social Security System transact for services at a branch in Cubao, Quezon City. <em>Jonathan Cellona, ABS-CBN News/File</em></span></span></span></div><div><br/></div><p>MANILA — The Social Security System (SSS) on Tuesday said it would continue to implement a 1-percent contribution rate hike despite calls from several sectors to suspend the adjustment. </p><p>The adjustment is expected to generate an additional collection of P51.5 billion in 2025 alone, said SSS President and Chief Executive Officer Robert Joseph De Claro.</p><p>“Kami ay sumusunod lang sa batas na napapaloob itong SSS,” he said in a press briefing in Malacañang.</p><p>“Kapag ide-delay natin itong increase na ito… maaapektuhan yung capacity ng SSS na tumulong in times of need,” he said.</p><p>SSS started implementing in January 2025 the last tranche of the SSS contribution hike that began in 2019. The contribution rate is now 15 percent, up from the 14 percent rate last year.</p><p>The SSS fund life is currently at 28 years, De Claro.</p><p>“While minimal ang impact nito with regards to the fund life or viability of the SSS fund, yung mga short term benefit talaga ang mawawala sa mga miyembro natin,” he said.</p><p>Former SSS President Rolando Macasaet has been urging SSS to suspend the hike, saying that self-employed Filipinos would be hardest hit by the adjustment as the lowest bracket members would have to pay a P750-monthly contribution, up from the current P570.</p><p>Self-employed workers earning P35,000 monthly will shoulder a P1,700-contribution, which is P400 higher than their current P1,300 monthly pitch, Macasaet said.</p><p>Employed Filipinos will pay 5 percent of the contribution, while the 10 percent will be shouldered by their employers.</p><div><br/></div><div><strong>FUND LIFE </strong></div><div><br/></div><p>&quot;With this last tranche of contribution rate and MSC increases, the SSS fund is projected to last until 2053 – doubling the fund life to 28 years (vs 2032 or 14 years when an actuarial valuation study was performed in 2018),&quot; De Claro said in a statement.</p><p>&quot;This will allow us to fulfill our social security obligations to current and future members during times of contingencies,&quot; he added.</p><div><a href="https://www.abs-cbn.com/news/business/2025/1/3/solon-calls-for-suspension-of-sss-contribution-hike-1552">SSS defends contribution hike amid calls to suspend higher rate</a></div><p>SSS said the scheduled contribution rate and MSC increases were among &quot;the most important reforms&quot; under the Social Security Act of 2018, which aims to ensure the long-term viability of the pension fund.</p><p>&quot;Such additional collection amount also enables SSS to support national government in times of difficulty, particularly as regards granting calamity loans,&quot; De Claro said.</p><p>SSS noted that it released P9.7 billion in calamity loans last year to around 500,000 calamity-stricken members.</p><div><a href="https://www.abs-cbn.com/news/nation/2025/1/6/coa-flags-sss-leniency-amid-failure-to-collect-p89b-from-delinquent-employers-1607">COA flags SSS &#x27;leniency&#x27; amid failure to collect P89 billion from delinquent employers</a></div><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/KrzycKB2JTs?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><div><br/></div><div><strong>CONTRIBUTION SUBSIDY PROGRAM</strong></div><div><br/></div><p>The SSS has a subsidy program, which allows more privileged Filipinos to shoulder a portion of others’ pension contribution, De Claro said.</p><p>“Sa ating mga kapatid na mambabatas, hindi po ba puwede nilang i-subsidize sa kanilang mga miyembro itong dagdag na 190 contribution?” he said.</p><p>“Kaysa ipa-suspend natin itong increase na ito bakit hindi tayo umupo at pagusapan paano ninyo matutulungan ang manggagawa through a subsidy program,” he said.</p><p>“Puwede ho tayo tumulong for people that you wouldn’t know,” he said.</p><p>Under SSS subsidy programs, private entities, government agencies, and philanthropists may pay the monthly SSS contributions of selected members for a minimum of 6 consecutive months.</p><div><br/></div><div><strong>SSS COLLECTION </strong></div><div><br/></div><p>The Commission on Audit (COA) earlier flagged the SSS for its failure to collect over 90 percent of its P93.74 billion collectibles in 2023.</p><p>“The inefficiency in collecting premium contributions from delinquent employers, with only P4.581 billion collected, merely 4.89 per cent of the established collectibles… deprives the SSS of much-needed funds for the timely delivery of social security protection, claims, and benefits, to its members and their beneficiaries,” the COA said in a letter to the state-run insurer in June 2024.</p><p>COA urged SSS to “improve the collection efficiency on delinquent employers account” and to “optimize collection efforts by strategically prioritizing delinquent employers with large accounts, while maintaining efforts across all account sizes.”</p><p>The low collection numbers reflect the failure of businesses to settle their insurance dues post-pandemic, De Claro said.</p><p>“Maraming mga mangggawa na hindi nakapag contribute, maraming businesses ang nagsara,” he said.</p><p>“We are reviewing policy ng SSS with regards to delinquency,” he said, noting that the agency has been continuing its “Run After Contributor Evaders” (RACE) program.</p><p>“Rest assured through all legal means, we are going after those employers that ang pinaka masama ay nagbawas ka ng contributiuon for your employee tapos hindi mo naremit sa SSS,” De Claro said.</p><p>He said SSS would also “improve” its “registration and collection for the kasambahays (household workers).”</p><p>“Itong segment na ito mahirap mag-contribute, mahirap mag-remit. Yung reporting pag umalis na ang kasambaya mahirap din,” he said.</p><p>SSS policies on workers in the gig economy need to be studied to see how the agency can better collect contributions from workers from this sector.</p><p>When asked if the SSS should also tighten its spending on “other personnel benefits”, De Claro said that the agency’s disbursements and personnel benefits were “in compliance with rules and regulations.”</p><p>In 2023, the SSS allocation for “other personnel benefits” ballooned to P2 billion from just P492.87 million in 2022, documents from COA showed.</p><p>Under the rules of the Department of Budget and Management (DBM), “other personnel benefits” may include commission, perks, bonuses, allowances, among others.</p><p>“This (increase in other personnel benefits) is allowable because the COA did not flag it,” De Claro said, adding that the “fund is growing by around 30 percent.”</p><p>“The operating cost of SSS as an institution is only 25 percent of what is allowed in our charter,” he said.</p><p>De Claro said he has yet to speak directly to President Ferdinand Marcos Jr. regarding calls against the SSS contribution hike.</p>

<p>The Social Security System (SSS) on Tuesday said its fund was now projected to last until 2053, as the last tranche of contribution hike pushed through this year.</p>

The Social Security System (SSS) on Tuesday said its fund was now projected to last until 2053, as the last tranche of contribution hike pushed through this year.

SSS pushing through with 1 pct contribution hike despite protests

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SSS pushing through with 1 pct contribution hike despite protests

Katrina Domingo,

ABS-CBN News

Published January 07, 2025 09:56 AM PHT

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Updated January 07, 2025 12:47 PM PHT

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