SSS revenue soars as higher contribution rate yields P28 billion
The Social Security System (SSS) has raked in nearly P28 billion in additional revenues following the increased member contribution rate last year.
In a statement, Rolando Ledesma Macasaet, SSS president and chief executive officer, said the one percent rise in contribution rate from 13 percent to 14 percent resulted in the generation of P27.84 billion from January to December 2023.
The increase was in accordance with Republic Act 11199, signed by former president Rodrigo Duterte, which specified that the SSS contribution rate would inch up by one percent in 2019, 2021, 2023, and 2025, ultimately reaching 15 percent by the end of the period.
The additional revenue from the rate increase made up nearly eight percent of SSS' total annual income.
Macasaet said that SSS revenue for 2023 surged to P362.2 billion, exceeding its P330.8 billion target by 9.5 percent, driven by better collection efforts and higher returns from its investments.
Macasaet added that last year's revenue tally marked the highest ever achieved by SSS.
In the unaudited financial statement for 2023, Macasaet said that contribution collection remained the foremost revenue source for SSS, amounting to P309.12 billion last year.
“This is attributed to new paying members, improved collection from delinquent employers, and the 2023 contribution rate hike. Additionally, the remaining P53.08 billion came from revenue from investments,” he added.
Revenue from investment and other income last year is at P53.08 billion, exceeding the year’s target of P36.31 billion by P16.77 billion.
“Total revenues from investment and other income last year were also higher than the P44.72 billion revenue generated in 2022, which indicates that SSS investment portfolio is being managed well and that we continue to perform well in our investment activities whatever the prevailing market conditions,” Macasaet said.
Similarly, he said, SSS’ expenditures in 2023, which included benefit payments and operating expenses, went up by P16.92 billion to P270.48 billion from P253.56 billion in 2022.
The 2023 SSS operating expenses remained below the allowable limit under the SSS Charter.
“Of the total expenditures, P259.03 billion were released for benefit payments, which jumped by P16.22 billion from P242.81 billion in 2022. SSS grants benefits for maternity, sickness, disability, unemployment, retirement, funeral, and death to qualified members,” Macasaet noted.
Meanwhile, Voltaire P. Agas, SSS executive vice president for Branch Operations Sector said a total of P10.48 billion in contributions from new paying members was collected last year.
“New initiatives were implemented to expand the SSS membership and to reach out to more workers. As a result, at least 1.4 million new members were added to SSS in 2023,” Agas said.