SSS revenue soars to P362 billion in 2023

MANILA, Philippines —  The mandatory contribution hike and the increase in new members boosted the revenues of state-run pension fund Social Security System (SSS) to P362 billion last year.

In a statement, SSS said revenues in 2023 went up by 18.3 percent to P362.2 billion from P306.16 billion a year ago.

This was also 9.5 percent above the target of P330.8 billion.

SSS president and CEO Rolando Macasaet attributed the increase to better collection efforts and substantial returns from the agency’s investments.

Around 85 percent or P309.12 billion of the total came from contribution collections. This was 18.2 percent more than the 2022 level of P261.44 billion and higher than the P294.49 billion target.

“This is attributed to new paying members, improved collection from delinquent employers and the 2023 contribution rate hike,” Macasaet said.

From the contribution rate hike alone, SSS generated a total of P27.84 billion.

In January 2023, the SSS raised the contribution rate to 14 percent of a person’s monthly salary credit, which is being shared at a 9.5:4.5 ratio by the employer and employee, respectively.

SSS also collected P10.48 billion in contributions from 1.4 million new paying members amid initiatives to expand the SSS membership and to reach out to more workers.

On the other hand, the increase in contributions was also due to the strengthened Run After Contribution Evaders (RACE) campaign to collect more unremitted contributions from employers.

The remaining 15 percent of total revenues at P53.08 billion came from earnings from investments and other income.

This was 17 percent higher than the 2022 level of P44.72 billion and surpassed the target by almost 50 percent to P36.31 billion.

“This indicates that the SSS investment portfolio is being managed well and that we continue to perform in our investment activities whatever the prevailing market conditions are,” Macasaet said.

Meanwhile, expenditures last year inched up by seven percent to P270.48 billion on higher benefit payment releases.

SSS grants benefits for maternity, sickness, disability, unemployment, retirement, funeral and death to qualified members.