SSS surpasses 2023 target
State-run pension fund Social Security System (SSS) saw its net income reach a record P83 billion in 2023 on the back of the mandatory contribution hike and the increase in new members.
In a statement, SSS said its net income surged by 58 percent to P83.13 billion in 2023 from P52.6 billion a year ago. This was also 63 percent higher than the P51.06 billion target for 2023.
The better bottomline, which was SSS’ highest net income to date, was driven by strong revenues, which grew by 15.6 percent to P353.82 billion.
“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,” SSS president and CEO Rolando Macasaet said.
The bulk of the revenues came from contribution collection equivalent to P309.12 billion, up nearly 20 percent.
Expenditures last year picked up by seven percent to P270.69 billion on higher benefit payment releases.
Benefit payments stood at P259.03 billion, while operating expenses settled at P11.65 billion, roughly 30.32 percent of the allowed charter limit of P38.4 billion.
“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,” Macasaet said.
The SSS chief noted that the agency’s performance last year was driven by intensified collection activities such as registering new paying members, improved collection from delinquent employers, and the 2023 contribution rate hike.
SSS contribution rate was raised to 14 percent of a person’s monthly salary credit in January last year, which is being shared at a 9.5:4.5 ratio by the employer and employee, respectively.
In 2023, SSS also collected P10.48 billion in contributions from 1.4 million new paying members amid initiatives to expand the SSS membership and to reach out to more workers.
On the other hand, the increase in contributions was also due to the strengthened Run After Contribution Evaders campaign to collect more unremitted contributions from employers.