SSS significant increase in contribution rate at P28 billion
The Social Security System (SSS) has seen a substantial increase in revenue, with nearly P28 billion generated following the implementation of an increased member contribution rate last year.
According to Rolando Ledesma Macasaet, SSS president and chief executive officer, the one percent rise in contribution rate, from 13 percent to 14 percent, resulted in the generation of P27.84 billion from January to December 2023. This increase was in line with Republic Act 11199, signed by former president Rodrigo Duterte, which mandated a gradual one percent increase in the SSS contribution rate in 2019, 2021, 2023, and 2025, eventually reaching 15 percent by the end of the period.
The additional revenue from the rate increase accounted for nearly eight percent of SSS’s total annual income. Macasaet noted that SSS revenue for 2023 reached P362.2 billion, surpassing its target of P330.8 billion by 9.5 percent. This growth was attributed to enhanced collection efforts and higher returns from investments, marking the highest revenue ever achieved by SSS.
In the unaudited financial statement for 2023, Macasaet highlighted that contribution collection remained the primary revenue source, totaling P309.12 billion last year. This increase was attributed to new paying members, improved collection from delinquent employers, and the 2023 contribution rate hike. Additionally, revenue from investments and other sources amounted to P53.08 billion, surpassing the year’s target by P16.77 billion.
Macasaet emphasized that SSS’s investment portfolio is being managed effectively, as evidenced by the higher revenue despite prevailing market conditions. Expenditures in 2023, including benefit payments and operating expenses, increased to P270.48 billion from P253.56 billion in 2022, remaining within the allowable limit under the SSS Charter.
Benefit payments totaled P259.03 billion in 2023, reflecting an increase of P16.22 billion from the previous year. These benefits cover various categories such as maternity, sickness, disability, unemployment, retirement, funeral, and death for eligible members.
Voltaire P. Agas, SSS executive vice president for Branch Operations Sector, reported that a total of P10.48 billion in contributions from new paying members was collected in 2023. He attributed this to new initiatives aimed at expanding SSS membership, resulting in the addition of approximately 1.4 million new members in 2023.
News: SSS significant increase in contribution rate at P28 billion
