SSS net income in H1 drops 21.4% to ₧10.49 billion

STATE-RUN Social Security System’s (SSS) profit or net income in the first half of this year dropped by 21.4 percent to P10.49 billion as its expenses grew faster than its revenues.

The latest SSS condensed statement of comprehensive income showed its end-june profit slide from P13.34 billion a year ago.

Its revenues or total income in the first semester grew 8.53 percent to P148.98 billion from P137.27 billion in the same period last year.

Broken down, its service and business income as of end-june rose to P144.49 billion from P133.49 billion. In the same period, its gains also climbed to P4.396 billion from P3.44 billion a year ago while its other non-operating income plunged to P91.5 million from P336.27 million.

On the other hand, its expenses in the first six months of the year surged by 11.75 percent to P138.49 billion from P123.93 billion a year ago.

Bulk of the total expenses in the six-month period went to benefit payments to members and pensioners which stood at P123.897 billion, up from 7.06 percent from P115.73 billion a year ago.

The rest were non-cash expenses (P10.58 billion), personnel services (P3.15 billion), maintenance and other operating expenses (P762.03 million), and financial expenses (P101.03 million).

In 2021, the SSS recorded a net loss of P843.9 billion, almost double the net loss recorded a year ago at P424.37 billion due to the increase in policy reserves for future liabilities as the agency adopted the Philippine Financial Reporting Standards (PFRS) 4.

SSS President and Chief Executive Officer Michael G. Regino earlier assured their members and pensioners that the reported losses do not affect SSS’ current cash flow and that the institution remains financially viable of providing benefits to its stakeholders. SSS also said its fund life is estimated to last until 2054.