HIGHER SSS CONTRIBUTIONS TAKE EFFECT JANUARY 2025

STARTING January 1, 2025, private sector workers will have to pay more for their Social Security System (SSS) contributions.

The increase in the SSS contribution is stipulated in Republic Act 11199 or the Social Security Act of 2018 signed into law in 2018 by former President Rodrigo Duterte.

From 14 percent in 2024, the SSS contribution is now set at 15 percent.

Ten percent of the contribution will be shouldered by the employers while the five percent will be paid by the workers.

The increase is part of the ongoing efforts to strengthen the financial stability of the social fund.

According to SSS Public Affairs and Special Events acting head Carlo Villacorta, the 15 percent contribution rate is the final tranche of the increase which started in 2019.

He said the fund collected will assure that the fund life of the members will last until 2053.

Villacorta explained that if not for the said law, the SSS fund will be exhausted in the next seven years.

The SSS management said the hike in members contributions will enable the pension fund to better support its beneficiaries, including those receiving retirement pensions, sickness benefits, maternity leaves, and other services.

Under the Social Security Act of 2018, gradual adjustments to contribution rates were planned to ensure the long-term sustainability of the pension fund.