SSS Contribution Rates Set to Increase Gradually From 2019 to 2025
The recently passed Social Security Act of 2018 (Republic Act No. 11199) institutes a series of incremental hikes to SSS contribution rates over the next several years. This aims to improve the long-term financial sustainability of the state pension fund and allow for expanded benefits. However, the increases also mean higher premium payments for workers and employers.
A Phased-In Approach
Rather than one large spike in rates, the new law implements a gradual rise from 2019 to 2025. This gives households, businesses and the SSS time to adjust budgets accordingly.
The contributions are split between employer and employee shares, with self-employed persons paying both portions. Here is an overview of the scheduled hikes:
| Year | Contribution Rate | Employer Share | Employee Share | Minimum Monthly Salary Credit | Maximum Monthly Salary Credit |
|---|---|---|---|---|---|
| 2019 | 12% | 8% | 4% | ₱2,000 | ₱20,000 |
| 2020 | 12% | 8% | 4% | ₱2,000 | ₱20,000 |
| 2021 | 13% | 8.5% | 4.5% | ₱3,000 | ₱25,000 |
| 2022 | 13% | 8.5% | 4.5% | ₱3,000 | ₱25,000 |
| 2023 | 14% | 9.5% | 4.5% | ₱4,000 | ₱30,000 |
| 2024 | 14% | 9.5% | 4.5% | ₱4,000 | ₱30,000 |
| 2025 | 15% | 10% | 5% | ₱5,000 | ₱35,000 |
Higher Premiums Start in 2021
The contribution rate holds steady at 12% for both 2019 and 2020. The increases then commence in 2021, rising 1 percentage point to 13%.
Further incremental hikes occur annually from 2023 to 2025. By the end of the phase-in period, the total rate will reach 15% – shared 10% by employers and 5% by employees.
Yearly SSS Contribution Rates
The Social Security System (SSS) adjusts its contribution rates annually to sustain the program’s financial stability and ensure adequate benefits for its members. Below are the rates for the years 2019, 2020, 2021, 2022, 2023, 2024, and the upcoming changes in 2025.
For 2025
Come January 2025, the final phase of hikes takes effect. The total contribution rate reaches 15%, with the employer portion at 10% and the employee share at 5%.
For 2024
In 2024, the 14% total contribution rate will hold steady. The employer share will stay at 9.5%, and the employee share will remain at 4.5%.
For 2023
Starting in January 2023, the total SSS contribution rate increased to 14%. The employer share rose to 9.5%, while the employee portion remained at 4.5%. You can see the SSS contribution table with the updated rates for 2023 and beyond.
For 2022
The contribution rate for 2022 remained at 13%, with the employer and employee shares at 8.5% and 4.5%, respectively.
For 2021
In 2021, the total contribution rate was 13%, with the employer share at 8.5% and the employee share at 4.5%.
For 2020
The contribution rate for 2020 was 12%, with the employer and employee shares at 8% and 4%, respectively.
For 2019
In 2019, the total contribution rate was 12%, with the employer share at 8% and the employee share at 4%.
Bigger Salary Brackets Also Planned
Alongside higher contribution rates, the minimum and maximum monthly salary credits used to calculate SSS premiums will also expand gradually.
The minimum salary credit starts increasing from ₱3,000 in 2021 up to ₱5,000 by 2025. The maximum salary credit rises from ₱25,000 in 2021 to ₱35,000 by 2025.
This means contributions will be computed based on a wider salary range over time.
Meeting SSS Funding Needs
The scheduled SSS contribution hikes aim to assure the long-term viability of the state pension system. However, they also represent an added cost burden for workers and companies.
The phased-in approach helps provide time to adjust personal and business finances. But the government must ensure the higher rates translate into improved services and benefits to members.
What is the maximum pension benefit by 2028
There are discussions about increasing the maximum pension benefit to as high as ₱40,000, but this would require voluntary higher contributions from members who wish to secure a larger pension upon retirement.