The Social Security System (SSS) has confirmed it will proceed with the one-percent contribution rate increase in January 2025, despite calls from labor groups to suspend the hike.

The increase, which will bring the total contribution rate to 15 percent from the previous 14 percent, is part of the implementation of Republic Act 11199, or the Social Security Act of 2018.

According to SSS president and chief executive officer Robert Joseph de Claro, the hike is in line with the law and marks the final tranche of annual increases that started in 2019.

De Claro explained the contribution adjustment was vital for the sustainability of the pension system and the long-term viability of the SSS fund.

“This increase is within the scope of RA 11199 and represents the final increase in the series. After this, I do not foresee any further hikes in the future,” he said during a Palace briefing.

The contribution hike aims to extend the life of the SSS fund, which is projected to last until 2053 — doubling its lifespan from 14 years in 2018 when an actuarial study was last conducted.

As part of the increase, the Minimum Monthly Salary Credit for employees will rise from P4,000 to P5,000, and the Maximum MSC will increase from P30,000 to P35,000. The MSC directly influences the calculation of benefits, such as pensions, disability, and sickness benefits, which are based on a member’s contribution history.

The contribution hike is expected to generate P51.5 billion in additional funds for 2025. Of that amount, approximately 35 percent, or P18.3 billion, will be allocated to the Mandatory Provident Fund accounts of SSS members. This will help bolster members’ individual savings accounts for future contingencies.

De Claro also highlighted that the increase will help SSS support the national government in times of crises. In 2024, for example, SSS released P9.7 billion in calamity loans to assist more than 500,000 members affected by natural disasters.

Addressing calls to delay or suspend the increase, De Claro explained that doing so would ultimately harm the long-term benefits available to workers.

“Suspending the increase would make it more difficult for workers to enjoy future benefits when they need them most,” he said.