As we step into the new year, the Social Security System (SSS) in the Philippines has introduced a new Circular Memorandum No. 2024-006. This brings significant changes to the contribution rates and salary credits for all members. Effective January 1, 2025, these updates aim to enhance the benefits and sustainability of the SSS.
Key Changes in the New Circular Memorandum
- Increased Contribution Rate: The contribution rate has increased from 14% to 15%. This adjustment aligns with the Social Security Act of 2018, ensuring the long-term viability of the SSS fund.
- Updated Monthly Salary Credits (MSC):
- The minimum MSC is now ₱5,000.
- The maximum MSC is now ₱35,000.
- Revised Contribution Schedule: The new schedule of contributions reflects the updated rates for various programs administered by the SSS, including the Regular Social Security (SS) Program, Employees’ Compensation (EC) Program, and the Mandatory Provident Fund (MPF) Program.
Comparison with Previous Circular Memorandum
To better understand the impact of these changes, let’s compare the new circular memorandum with the previous one:
| Aspect | Previous Circular (2023) | New Circular (2025) |
|---|---|---|
| Contribution Rate | 14% | 15% |
| Minimum MSC | ₱4,000 | ₱5,000 |
| Maximum MSC | ₱30,000 | ₱35,000 |
| Programs Covered | SS, EC, MPF | SS, EC, MPF |
The table above highlights the key differences between the previous and new circular memorandums. The increase in contribution rates and salary credits is aimed at providing better benefits and ensuring the sustainability of the SSS fund.
Image Source: 2025-SSS-Contribution-Table-rev.pdf
