May 24, 2024

The Social Security System announced its revenue for 2023 jumped to P362.20 billion, surpassing its P330.80B 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 Macasaet said the P362.20B revenue was the highest revenue so far the agency attained.

“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 P309.12B contribution collection exceeds our 2023 target of P294.49B by P14.62B. It is 18.2 percent higher than the P261.44B collected in 2022,” Macasaet said.

In the 2023 unaudited financial statement, he noted the contribution collection remained the primary revenue source of SSS last year, which stood at P309.12B.

“This is attributed to new paying members, improved collection from delinquent employers, and the 2023 contribution rate hike. Additionally, the remaining P53.08B came from revenue from investments,” he added.

SSS Executive Vice President for Branch Operations Sector Voltaire P. Agas said a total of P10.48B 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.

Agas said 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 its 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.

Macasaet said SSS generated P27.84B in contributions due to the contribution rate hike.

“In January 2023, under Republic Act 11199 or the Social Security Act of 2018, SSS implemented a one percent rate hike, bringing its contribution rate to 14 percent from the previous 13 percent,” he added.

Revenue from investment and other income in 2023 is at P53.08B, surpassing the year’s target of P36.31B by P16.77B.

“Total revenues from investment and other income last year were also higher than the P44.72B 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.

He said SSS’ expenditures in 2023, which included benefit payments and operating expenses, went up to P270.48B from P253.56B in 2022. The 2023 SSS operating expenses remained below the allowable limit under the SSS Charter.

“Of the total expenditures, P259.03B was released for benefit payments, which jumped by P16.22B from P242.81B in 2022. SSS grants benefits for maternity, sickness, disability, unemployment, retirement, funeral, and death to qualified members,” Macasaet said. – Press release