Country: Philippines
Compliance category: Social Contribution Rate Change
Regulatory Information:
Regulation: Social Security Act
Notification/Circular No: Office Order No. 2024-06
Notification date: December 19, 2024
Updates in Compliance:
Summary:
Pursuant to the Social Security Act of 2018, which includes provision for increasing the contribution rate, as well as adjustments to the minimum and maximum monthly salary credit (MSC) limits, the Social Security System (SSS) has issued a circular introducing the Schedule of SSS Contributions for all business employers and employees.
Effective Date: January 01, 2025
Overview of changes to SSS Contributions:
| Particulars | Existing | Revised |
| Contribution Rate | 14% | 15% |
| Minimum MSC | 4000 | 5000 |
| Maximum MSC | 30000 | 35000 |
For more details at slab level of Monthly Salary Credit please refer the source provided.
Our Analysis:
The increase in contribution rate is designed to bolster the sustainability of the SSS fund, ensuring that it can meet future obligations to members. The adjustments in Monthly Salary Credit(MSC) reflect an effort to align contributions with the rising cost of living and inflation rates, providing better financial support for beneficiaries.
Employers will now contribute a higher amount towards SSS, which may affect their payroll budgets. However, this increase is also expected to benefit employees in the long run through enhanced retirement and disability benefits.
