Attention SSS members! According to SSS President and Chief Executive Officer Michael G. Regino, the Social Security System (SSS) members’ contribution would raise from 13 to 14 percent starting in January 2023.
As per Regino, the increase was in accordance with Republic Act 11199, which the previous President Rodrigo Duterte signed. According to the aforementioned law, the SSS contribution rate will rise by 1% a year from 2019 to 2025. Meaning, members’ contributions will reach 15% by 2025.
“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.
According to the SSS, the employer will cover the increase. However, voluntary members including self-employed, non-working spouses, and OFW members will pay the contribution.
In shorter terms, there’s a 1% increase in the share of employer to the SSS contribution of his employee. Which means, from 8.5%, it will raise to 9.5%, while the employee’s share will remain in 4.5%.
For instance, the contribution of an employee whose monthly salary is P30,000 will have a hike to P4,200 from P3,900. The P300 extra charge will be shouldered by the employer.
The 4.5% will be subtracted by the employee’s salary while the remaining 9.5% contribution will be paid by the employer or company.
The minimum and maximum monthly salary credits (MSC) will also be changed, according to Regino. The MSCs are the basis for calculating the SSS members’ monthly contributions.
“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 added.
These statements were made during the commencement of the voluntary retirement savings program known as the Worker’s Investment and Savings Program.
This announcement was issued immediately after the controversial Maharlika Investment Fund bill abolished the SSS and the Government Service Insurance System (GSIS) as funding sources. However, lawmakers emphasized that if approved by their boards, SSS and GSIS funds can still be used in the MIF.
The Maharlika Investment Fund or House Bill 6398, states that top government financial institutions shall be the sources of funds to be invested in international stock markets, bonds, and real estate.