The Social Security System has implemented a one-percentage-point increase in contribution rates Wednesday, raising the rate to 15% as mandated by the Social Security Act of 2018.

The increase, detailed in SSS Circular No. 2024-006, affects all private sector workers, including business employers and employees, household workers, self-employed individuals, voluntary members, and overseas Filipino workers (OFWs).

Under the new schedule, the minimum Monthly Salary Credit (MSC) for business employers and employees has been set at P5,000 pesos, while the maximum MSC stands at P35,000 pesos. These changes represent part of the social security reform package signed into law by former President Rodrigo Duterte.

For household workers, known locally as kasambahay, the minimum MSC has increased to P1,000 pesos, with a maximum of P20,000 pesos.

Land-based OFWs will now have a minimum MSC of P8,000 pesos, while maintaining the P20,000-peso maximum.

The state pension fund has directed members who have paid contributions in advance for January 2025 and beyond to settle any underpayments arising from the new minimum MSC requirements.

Additionally, the circular introduces a new feature where contributions for MSC ranging from P20,000 to P35,000 pesos will be directed to the Mandatory Provident Fund (MPF) Program. Benefits under this program will be calculated based on total accumulated value, including contributions and net investment income.

The latest increase follows the previous 14% rate implemented in 2023, reflecting the government’s efforts to strengthen the social security system’s long-term sustainability amid the country’s aging population.

These changes affect approximately 40 million SSS members across various employment categories, marking one of the most significant adjustments to the social security system in recent years.