The Social Security System (SSS) today announced that its revenue for 2023 jumped to P362.20 billion, surpassing its P330.80 billion revenue target by 9.5 percent, fueled by beefed-up collection efforts and substantial income from its investments.
SSS President and Chief Executive Officer Rolando Ledesma Macasaet said the P362.20 billion revenue was the highest revenue so far attained by SSS.
“Our 2023 financial performance is indicative of the efforts of the SSS management and employees in intensifying its collection activities and the prudent management of our investments. The P309.12-billion contribution collection exceeds our 2023 target of P294.49 by P14.62 billion. It is 18.2 percent higher than the P261.44 billion collected in 2022,” Macasaet said.
In the 2023 unaudited financial statement, Macasaet noted that the contribution collection remained the primary revenue source of SSS last year, which stood at P309.12 billion.
“This is attributed to new paying members, improved collection from delinquent employers, and the 2023 contribution rate hike. Additionally, the remaining P53.08 billion came from revenue from investments,” he added.
1.4M new paying members
SSS Executive Vice President for Branch Operations Sector Voltaire P. Agas said a total of P10.48 billion in contributions from new paying members was collected last year.
“New initiatives were implemented to expand the SSS membership and to reach out to more workers. As a result, at least 1.4 million new members were added to SSS in 2023,” Agas said.
Improved collection from delinquent employers
Agas explained that the rise in contributions can also be attributed to the high collection of delinquencies from employers who are not remitting their employees’ contributions.
In 2023, he added SSS bolstered its efforts to pursue delinquent employers nationwide through our Run After Contribution Evaders (RACE) campaign to collect more unremitted contributions from them.
All SSS branch offices nationwide conducted RACE campaigns last year, which aim to compel delinquent employers to comply with the law by issuing them Notices of Violation and instructing them to report to SSS within 15 days or face legal consequences.
2023 contribution rate hike
Macasaet said SSS generated P27.84 billion in contributions due to the contribution rate hike.
“In January 2023, under Republic Act No. 11199 or the Social Security Act of 2018, SSS implemented a 1 percent rate hike, bringing its contribution rate to 14 percent from the previous 13 percent,” he added.
Revenue from investments
Revenue from investment and other income in 2023 is at P53.08 billion, surpassing the year’s target of P36.31 billion by P16.77 billion.
“Total revenues from investment and other income last year were also higher than the P44.72 billion revenue generated in 2022, which indicates that SSS investment portfolio is being managed well and that we continue to perform well in our investment activities whatever the prevailing market conditions,” Macasaet said.
Similarly, he said, SSS’ expenditures in 2023, which included benefit payments and operating expenses, went up by P16.92 billion to P270.48 billion from P253.56 billion in 2022. The 2023 SSS operating expenses remained below the allowable limit under the SSS Charter.
“Of the total expenditures, P259.03 billion were released for benefit payments, which jumped by P16.22 billion from P242.81 billion in 2022. SSS grants benefits for maternity, sickness, disability, unemployment, retirement, funeral, and death to qualified members,” Macasaet noted.