Alsey
Starting January 1, 2025, the Social Security System (SSS) has officially:
- Increased the contribution rate from 14% to 15%, enhancing long-term fund sustainability.
- Raised the minimum Monthly Salary Credit (MSC) from ₱4,000 to ₱5,000, and the maximum MSC from ₱30,000 to ₱35,000.
These adjustments are mandated by Republic Act 11199 (Social Security Act of 2018), representing the final scheduled increase in the contribution schedule.
What This Means for Members
- Employers will now contribute 10%, and employees will pay 5% of the MSC. Self-employed individuals will cover the entire 15%.
- The expanded MSC range ensures a larger portion of income is counted toward SSS benefits and the Mandatory Provident Fund (MPF), with increased collections projected to bolster financial resilience through to 2053.
MSC Contribution Examples
| Monthly Salary | New MSC Basis | Total Contribution @ 15% |
|---|---|---|
| ₱4,500 | ₱5,000 (min) | ₱750 |
| ₱20,000 | ₱20,000 | ₱3,000 |
| ₱40,000 | ₱35,000 (max) | ₱5,250 |
Higher-income contributions now include amounts entering the MPF, which goes toward individual savings and expanded fund sustainability.
Benefit: Lower Loan Interest Rates
Effective July 2025, SSS will reduce interest rates on two key loans:
- Salary loans: from 10% to 8% per annum
- Calamity loans: from 10% to 7% per annum
The revised rates apply to members with a clean credit record (no penalty condonation in the past 5 years) and aim to improve the net cash proceeds of the loans.
Additional Loan Enhancements Ahead
- July 2025: salary and calamity loan rate reductions are scheduled.
- September 2025: the Pension Loan Program will be extended to include surviving spouse pensioners, with loans up to ₱150,000.
- SSS is also exploring a micro-credit loan program (15–90 days) through partner institutions to address short-term financial needs.
Why These Reforms Matter
- Strengthened fund sustainability: The higher 15% contribution rate and expanded MSC are designed to support financial stability until 2053, significantly extending the lifespan of SSS.
- More loan value: With lower borrowing costs, members retain more of their loan amounts, easing the burden of repayment.
- Increased access: Expanding pension loans to surviving spouses and introducing micro-credit options enhances the support net for vulnerable and active members.
What You Should Do
- Adjust payroll arrangements to reflect the 15% contribution rate.
- Update personal contribution records via My.SSS, especially for self-employed and voluntary members.
- Prepare for July loan changes: check your eligibility and credit standing.
- Monitor September updates for pension loan program expansions.
With a higher 15% contribution rate, expanded MSC range, and lower interest rates on key loans, the SSS is reinforcing member support and long-term fund health.
Prospective pensioners and loan seekers should update their payrolls, credit records, and loan plans to fully benefit from these reforms.
FAQs
Q1: How much more will I pay in contributions monthly?
It depends on your MSC. For example, with an MSC of ₱20,000, your monthly contribution increases from ₱2,800 to ₱3,000.
Q2: Can I apply these new loan rates right away?
No. The reduced interest rates apply from July 2025 and only to members with a clean loan record in the past 5 years.
Q3: Who qualifies for the expanded pension loan?
Surviving spouse pensioners can apply from September 2025, with loans up to ₱150,000, including integrated credit life insurance.