Starting January 2025, a scheduled hike in Social Security System (SSS) contributions has been implemented, elevating the charge to 15% for its members and employers.
This adjustment follows Republic Act No. 11199, referred to as the Social Security Act of 2018, which mandates a 1% hike in contribution costs each year. Since 2019, whilst the charge became set at 12%, incremental hikes were applied, culminating in the cutting-edge 15% charge.
Under the brand new scheme, employers will make contributions of 10% of the salary, at the same time as personnel will shoulder the ultimate 5%.
However, the hike has drawn criticism. House Assistant Minority Leader and Gabriela Women`s Party Representative Arlene Brosas denounced the incease as a “merciless New Year`s gift.”
Despite the backlash, the SSS continues that the better contributions have substantially prolonged the fund`s life. Initially projected to close in 2032, the fund`s lifespan became prolonged to 2054, partially because of the extra member and enterprise contributions added in recent years. The fund additionally absorbed an economic burden following the P1,000 pension hike in 2017.
For updated schedules of the new contribution, which include modifications from 2021 to 2025, go to the respectable SSS Contribution Table page: https://www.sss.gov.ph/sss-contribution-table/
