New Year, New Fees: SSS Hikes Contribution Rates to 15% in 2025
SSS just leveled up... your contributions.
(SPOT.ph) Just when you thought your paycheck couldn’t get any lower, the Social Security System (SSS) increased its contribution rate from 14% to 15% starting January 2025, as mandated by the Social Security Act of 2018.
Essentially, the Social Security Act of 2018 outlined the gradual increase of SSS contribution rates to strengthen the fund’s sustainability. Starting in 2019, the contribution rate was raised to 12% to be followed by increments of 1% every other year, ending with 15% in 2025.
For employed members, employers contribute 10%, while employees contribute 5%. Meanwhile, self-employed, voluntary members, non-working spouses, and overseas Filipino workers (OFWs) are responsible for the entire 15%.
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New SSS contribution rates starting January 2025
For a P25,000 salary, for example, the total monthly contribution would amount to P3,780. This is split into P2,530 (10%) from the employer and P1,250 (5%) from the employee.
Take a look at the detailed computation below.
The recent increase in SSS contribution rates has sparked a significant backlash from various sectors, particularly labor groups and lawmakers, who argue that the hike imposes an additional burden on workers already grappling with economic challenges.
Gabriela Women’s Party Representative Arlene Brosas criticized the hike as a “cruel New Year’s gift,” arguing that it comes at a time when workers are already struggling with inflation and stagnant wages.
“Instead of an additional salary, it gives additional deductions to the workers,” Brosas said.
Despite the criticism, the SSS insists that the rate adjustment is necessary for continued financial support for members in the form of pensions, sickness benefits, and maternity assistance. Without the increase, it said the fund could be compromised in the coming years.
“These changes are designed to strengthen the Social Security System, at magbigay ng mas magagandang benepisyo at pangmatagalang financial security para sa lahat ng miyembro,” the SSS said on the official website.
In 2024, SSS President Rolando Macasaet said the state pension fund expected a record-breaking income of P100 billion.
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