There will be an incoming SSS contribution hike in 2025. The increase next year aims to strengthen the pension fund while minimizing the impact on employees.
How much is the increase for 2025?
Starting in 2025, the Social Security System (SSS) will implement the final phase of the contribution rate increase mandated by the Social Security Act of 2018. This law, enacted on February 7, 2019, ensures the long-term sustainability of the SSS by gradually raising the contribution rate by 1% every two years.
With this latest adjustment, the contribution rate will reach its maximum of 15% in 2025. This increase supports the pension fund’s ability to provide enhanced financial protection for millions of Filipino workers and their families.
Employee and Employer Share in the SSS Contribution Hike
The new contribution scheme will increase both employee and employer share. This will raise their contribution to 10%, while the employee’s share will slightly increase to 5%.
This final adjustment marks a significant step in securing the future of the SSS and its ability to provide meaningful benefits for its members. It represents a collaborative effort between the government, employers, and employees to strengthen the social security system for future generations.
Employers’ Concern on SSS Contribution Hike
The recent increase in SSS contributions this 2024, mandated under the Social Security Act of 2018 (RA 11199), has sparked concerns among employers’ 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). These groups have called for a suspension of the one percent hike, citing financial challenges, especially for smaller businesses.
Despite their appeal, SSS officials have stood firm, emphasizing the need to prioritize the long-term sustainability of the pension fund. According to SSS President and CEO Rolando Ledesma Macasaet, postponing the increase could significantly shorten the actuarial life of the fund, ultimately affecting its ability to provide stable benefits to workers.
While the SSS acknowledges the concerns of employers, Macasaet has called on business leaders to view the contribution hike as more than just an expense. “This is a vital step in ensuring a financially stable social protection system for Filipino workers and their families,” he said. A socially protected workforce, he added, contributes to a more harmonious and productive business environment.
The SSS remains committed to finding a balance between supporting employers and protecting workers’ future needs. For now, the agency is urging employers to see the contribution hike as a shared responsibility and a meaningful way to uplift the nation’s workforce.
Wrapping Up
The upcoming SSS contribution increase in 2025 represents the final step in a series of adjustments aimed at securing the long-term stability of the pension fund.
While this change may present challenges for employers, it underscores the shared responsibility of ensuring the financial well-being of Filipino workers. By strengthening the SSS, the government, employers, and employees are working together to build a more reliable social protection system that benefits millions of families.
Though concerns have been raised, the contribution hike is a necessary investment in the future, enabling the SSS to provide meaningful support during life’s uncertainties. With these adjustments in place, Filipino workers can look forward to a stronger, more dependable pension system for generations to come.
Source: https://www.sss.gov.ph/news-and-updates/sss-implements-contribution-hike/