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Miscellaneous

SSS net income in 2023 soars to P83 billion

SSS: Social Security System Logo

The Social Security System (SSS) announced its net income in 2023 exceeded by 62.8 percent its target of P51.06 billion to P83.13 billion as it recorded higher revenues than its expenses.

Based on its 2023 unaudited financial statement, SSS’ net income of P83.13 billion in 2023 surpassed the P52.60 billion net income recorded in the previous year.

SSS President and Chief Executive Officer Rolando Ledesma Macasaet noted that the P83.13 billion profit last year was the highest net income attained by SSS.

“Our revenue in 2023 grew by 15.6 percent to P353.82 billion from P306.16 billion in the previous year,” Macasaet said.

He said that the bulk of SSS revenue in 2023 came from contribution collection, which rose by 18.2 percent to P309.12 billion from the P261.44 billion collected in 2022.

“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,” he added.

Macasaet said that SSS recorded lower-than-revenue expenses of P270.69 billion, wherein the lion’s share of the total expenditure in 2023 went to benefit payments to members and pensioners.

“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.

He said benefit payments last year stood at P259.03 billion, up by 6.7 percent from P242.81 billion in 2022, while our operating expenses were at P11.65 billion, 8.4 percent higher than the P10.75 billion a year ago.

“Our operating expenses last year were only 30.32 percent of the allowed charter limit of P38.4 billion. Based on our charter, the operating expenses are 12 percent of the contribution collections and 3 percent of other SSS income such as investments and loans,” Macasaet explained.

Macasaet attributed the outstanding financial performance of SSS last year to the efforts of the SSS management and employees in intensifying its collection activities such as registering new paying members, improved collection from delinquent employers, and the 2023 contribution rate hike.

“We implemented new initiatives in 2023 that resulted to an expansion of SSS membership and reaching more workers,” SSS Executive Vice President for Branch Operations Sector Voltaire P. Agas said.

Agas also explained that it recorded a high collection of delinquencies from employers who are not remitting their employees’ contributions due to the Run After Contribution Evaders (RACE) campaign.

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