SSS contribution rate increases to 15% starting this January
The Social Security System (SSS) has implemented a higher monthly contribution rate, which can affect households and the local business sector.
As detailed on their website, the state-run social insurance program has announced an increase in the contribution rate for the Monthly Salary Credit (MSC) to 15%, effective Jan. 1. This applies to MSCs not exceeding P35,000, with employers contributing 10% and employees contributing 5%.
Under the new system, the minimum MSC will rise to P5,000, with a maximum of P20,000 for business employers and employees, self-employed, voluntary, and non-working spouse members.
For household employers and workers, they now have a minimum rate of P1,000, and the maximum will also be P20,000.
Land-based Overseas Filipino Workers are meanwhile required to have a minimum MSC of P8,000, with the maximum set at P20,000.
Raising concerns
The increase raised concerns among economists and policy experts as this can affect Filipino workers' "disposable income," or the amount of money that a person has left after paying necessities such as food and rent. This is typically used for leisure or investment.
John Paolo Rivera, senior research fellow at the Philippine Institute for Development Studies, said that the "modest" hike can still "affect consumption patterns."
"Lower-income households tend to allocate a significant portion of their income to basic necessities," he told The Philippine STAR. "With reduced disposable income, there may be a marginal dampening effect on consumer spending, which is a key driver of the Philippine economy."
"However, the overall impact might be offset by the broader benefits of financial security and enhanced retirement benefits, which could contribute to long-term economic stability," he added.
His sentiments were echoed by House Assistant Minority Leader and Gabriela Women's Party-list Rep. Arlene Brosas, saying it is a "cruel New Year's gift."
"This is the government's buena mano for 2025—another round of burden for our workers. Sa halip na dagdag sahod, dagdag kaltas ang ibinigay sa mga manggagawa," Brosas said.
Veteran labor rights advocate Neri Colmenares, meanwhile, called for the SSS to suspend the implementation.
"This SSS contribution hike is absolutely unconscionable. Workers are already dealing with increased water rates from both Maynilad and Manila Water, higher electricity rates from Meralco, and now they have to shoulder bigger SSS contributions," he said in a statement.
"Why impose new rates when they can’t even efficiently collect the old ones? The new rates must be suspended until SSS has demonstrated improved collection efficiency," he continued.
The SSS previously had a 14% contribution rate. Members who have already paid ahead for 2025 are urged to settle underpayments, otherwise, it will be deemed ineffective contributions.
