MANILA, Philippines— Members’ contribution to the Social Security System (SSS) will increase to 14 percent, from 13 percent, starting January 2023, according to SSS President and Chief Executive Officer Michael G. Regino.
In a press conference on Thursday, Regino said the increase was in line with Republic Act 11199, signed by former President Rodrigo Duterte. The said law provided that from 2019 to 2025, the SSS contribution rate will increase by 1 percent yearly. By 2025, members’ contribution will be at 15 percent.
“Starting January 1, 2023, the new SSS contribution rate will be 14 percent, a one percentage point increase from the current 13 percent. This is part of the implementation of the Social Security Act of 2018, and this will also be advantageous to the SSS members in the form of higher benefits,” the SSS said in a statement, citing Regino.
The employer will shoulder the increase, said the SSS. However, voluntary members such as self-employed, voluntary, non-working spouses, and OFW members will shoulder the contribution.
According to Regino, the minimum and maximum monthly salary credits (MSC) will also be adjusted. The MSCs are used as basis in computing the monthly contribution of SSS members.
“The minimum MSC will become P4,000 from the current P3,000 to P4,000 while the maximum MSC will be increased to P30,000 from the current P25,000,” the SSS said in a statement.
These announcements came during the launch of the Worker’s Investment and Savings Program, which is a voluntary retirement savings program.
This announcement arrived shortly after the SSS and the Government Service Insurance System (GSIS) were removed as financial sources of the controversial Maharlika Investment Fund bill (MIF). However, lawmakers pointed out that SSS and GSIS funds can still be used in the MIF should their boards allow it.