Adi Joaquim Tolentino

Starting January 1, 2025, the Social Security System (SSS) contribution rate for private sector workers increased from 14 to 15 percent as the government aims to strengthen the pension fund's sustainability.


As outlined in the new set of guidelines posted by the SSS on December 19, private sector employees and their employers, self-employed individuals, household workers, voluntary members, and land-based Overseas Filipino Workers (OFWs) are affected by the updated rates to their Monthly Salary Credit (MSC).

SSS President and CEO Rolando Ledesma Macasaet stated that this change is needed to strengthen the pension system.

He also noted that the hike is not a burden for employees as it will be handled by employers.

“We understand that these changes may be difficult for some, but we are confident that this is in the best interest of our workers,” he said.

He explained that the change in contribution rate would be beneficial for the 13 million workers as it would bring immediate benefits to them.

“By bolstering the system, we are ensuring that workers and their families are protected against risks like illness, disability, and old age. This is not a cost, but an investment in their future,” he noted.

However, John Paolo Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the higher contributions might slightly reduce take-home pay, especially for lower-income workers.

“While the individual share increase may seem modest, it can still affect consumption patterns, as lower-income households tend to allocate a significant portion of their income to basic necessities,” he added.

Despite opposition from employers, Macasaet insists the contribution rate increase is essential to ensure the funds’ long-term viability and protection for the benefit of the workers.

“While we understand the challenges faced by employers, we must prioritize the long-term health of the system and the well-being of the workers who rely on it,” he said.

“It’s not just an added expense; it’s a step toward ensuring that workers are protected throughout their lives,” Macasaet said as he appealed that it is an investment in the future.

He also added the call for businesses to cooperate with the SSS in this matter.

Prior to this, the SSS released an early credit of P32 billion as 13th-month pay and December pensions for 3.6 million SSS and Employees’ Compensation (EC) pensioners.