MANILA, Philippines —The Social Security System (SSS) saw its revenues soar to an all-time high in 2023 that exceeded both its target and the previous year’s haul, thanks to beefed-up collection efforts and a rate hike for mandated contributions.
Revenues last year amounted to P362.20 billion, up at an annualized rate of 18.2 percent, the state-run pension fund for private sector workers said in a statement on Wednesday.
Not only did the SSS report a fatter top line, it also smashed its target revenue of P330.80 billion by 9.5 percent. It also recorded its highest revenue so far.
This is attributed to new paying members, improved collection from delinquent employers and the 2023 contribution rate hike,” Rolando Macasaet, company president and chief executive, said.
“Additionally, the remaining P53.08 billion came from revenue from investments,” he added.
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On the flip side, expenditures also went up by P16.92 billion to P270.48 billion due to benefit payments and other operating costs. But Macasaet said spending last year stayed below the allowable limit under the SSS Charter.
Primary revenue source
Contribution collection, which hit P309.12 billion, remained the primary revenue source of the SSS last year. Of that amount, a total of P10.48 billion was collected from at least 1.4 million new SSS members.
Meanwhile, P27.84 billion in contributions was added to the top line due to the 1-percentage point increase in rates mandated by Republic Act No. 11199, which brought the state pension fund’s contribution rate to 14 percent.
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The SSS also said it intensified its crackdown on delinquent employers who are not remitting their employees’ contributions. It likewise made a killing with its investments, with revenues from this segment surpassing last year’s target of P36.31 billion by P16.77 billion.
“Our 2023 financial performance is indicative of the efforts of the SSS management and employees in intensifying its collection activities and the prudent management of our investments,” Macasaet said.