The Social Security System (SSS) posted a record profit of P83.13 billion last year, propelled by robust revenues resulting from the increase in the contribution rate.

The private sector employees' pension fund surpassed its 2023 net income target of P51.06 billion by 62.8 percent as well as outperformed the P52.60 billion recorded in 2022.

SSS President and Chief Executive Officer Rolando Ledesma Macasaet noted that the figure, which was the highest net income attained by the fund, was due to more revenues that came in.

In 2023, the SSS raised its contribution rate from 13 percent to 14 percent, leading to the generation of P27.84 billion.

The adjustment was mandated by Republic Act 11199, signed by former president Rodrigo Duterte, which set a series of one percent increases in the SSS contribution rate in 2019, 2021, 2023, and 2025, with the rate set to reach 15 percent by the end of the specified period.

“Our revenue in 2023 grew by 15.6 percent to P353.82 billion from P306.16 billion in the previous year,” Macasaet said in a statement.

“Our record-high net income last year shows that we continue to strengthen our finances through programs and policies that increase new paying members and strengthen collection efforts,” he added.

The bulk of revenue last year came from contribution collection, which rose by 18.2 percent to P309.12 billion from the P261.44 billion collected in 2022, the SSS president said.

The high net income was also due to lower-than-revenue expenses last year at P270.69 billion, wherein most of it went to benefit payments to members and pensioners.

Benefit payments last year stood at P259.03 billion, up by 6.7 percent from P242.81 billion, Macasaet said.

Meanwhile, SSS’ operating expenses were at P11.65 billion, 8.4 percent higher than the P10.75 billion in 2022. Macasaet said that only 30.23 percent of the allowed charter limit of P38.4 billion is allowed to be spent.

“Based on our charter, the operating expenses are 12 percent of the contribution collections and 3 percent of other SSS income such as investments and loans,” he explained.

“Our 2023 expenses reflect how SSS has prudently kept its expenses at modest levels and ensure that every peso contributed by its members are well spent for the benefit of all its stakeholders,” he stated.

The SSS official attributed the impressive financial performance to the intensifying of collection activities such as registering new paying members, improved collection from delinquent employers, and the 2023 contribution rate hike.

“We implemented new initiatives in 2023 that resulted to an expansion of SSS membership and reaching more workers,” said Voltaire P. Agas, SSS executive vice president for branch operations sector.

Agas explained that it recorded a high collection of delinquencies from employers who are not remitting their employees’ contributions due to the Run After Contribution Evaders campaign.