Private sector workers have to spend more for their insurance contributions starting January 1, 2025.
The increase in the contribution to the Social Security System (SSS) is stipulated in the Republic Act No. 11199 otherwise known as the Social Security Act of 2018, which Former President Rodrigo Duterte signed into law in 2018.
From 14 percent in 2024, the SSS contribution is now set at 15 percent.
The employers will shoulder 10 percent of the contribution while the workers’ pay for the five percent.
SSS President and Chief Executive Officer Robert Joseph Montes de Claro as early as December 19, 2024 issued Circular Number 2024-008 detailing the schedule and effectivity of the contribution hike.
The SSS management earlier announced that the increase in the members’ contribution is necessary to ensure long term financial stability of the state insurer for private sector.
SSS Public affairs and Special Events Acting Head Carlo Villacorta said the 15 percent contribution rate is the final tranche of the increase which started in 2019.
Villacorta added that the fund collected will assure that the fund life of the members will last until 2053.
If not for the said law, the SSS fund will be exhausted in the next seven years, Villacorta emphasized.
Abner is an award-winning journalist. He received the prestigious 2015 Titus Brandsma Award for Community Communication in the Philippines and participated in the 2016 International Visitor Leadership Program (IVLP) of the United States of America, sponsored by the US Embassy in the Philippines. Founder of WATCH NORTH COTABATO, a media-citizens’ transparency group. He worked as a correspondent for the Philippine Daily Inquirer and CNN Philippines. His experience in broadcasting includes anchoring for Brigada News FM in Kidapawan and General Santos City and Brigada News TV. He anchors Tira Brigada via 105.1 Brigada News FM Manila, Mondays-Saturdays.