CAGAYAN de Oro City— As the Social Security System (SSS) enters its 70th year, a workers’ group is pressing the national government to fulfill what it says is its legal obligation to help fund the pension system—while warning that workers should not be asked to carry a heavier burden alone.

The Federation of Free Workers (FFW), through national president Atty. Sonny Matula, raised the issue as the SSS marked its 69th anniversary this month.

The group disputed a statement attributed to Economic Planning Secretary Arsenio Balisacan that taxes help fund pensions, arguing that SSS contributions are social-insurance payments, not ordinary taxes.

Under Republic Act No. 11199, or the Social Security Act of 2018, the SSS is funded principally through member contributions and other revenues, including investment earnings.

The law also separately requires Congress to appropriate funds from the National Treasury as the government’s contribution to SSS operations.

Workers: Contributions are not taxes

Matula said workers and employers have carried the SSS for decades through mandatory contributions.

“Workers have carried the SSS for almost seven decades,” Matula said, calling on government to ensure that its legally mandated share is provided.

The SSS itself reported that member contributions reached ₱235.33 billion from January to July 2026, making them the system’s primary funding base for benefits and services. Its investment portfolio stood at ₱1.29 trillion during the same period.

SSS also reported ₱205.56 billion in benefit payments from January to July, including retirement and death benefits, showing the scale of the fund’s obligations to members and pensioners.

The current contribution structure requires employed members and their employers to share the Social Security contribution, with the total rate at 15% of the applicable monthly salary credit beginning in 2025.

But government also has a legal duty

FFW’s main challenge is not whether government money can enter the SSS system—it is whether the government is fulfilling its obligation under the law.

Section 20 of RA 11199 states that Congress shall annually appropriate from the National Treasury the amount necessary to meet the SSS’s estimated operating expenses. 

The law also allows additional appropriations when needed to maintain an adequate working balance, based on actuarial studies.

This means the government’s role is separate from the workers’ and employers’ regular contributions.

FFW is therefore calling for greater transparency on how this statutory government contribution has been provided over the years.

The group also urged government to improve employment opportunities, pursue employers with unpaid SSS contributions and protect the pension fund’s investments instead of relying mainly on higher worker contributions.

SSS says its finances remain strong

The SSS, meanwhile, says its financial position has strengthened.

As of July 2026, it reported ₱268.14 billion in total revenues, ₱212.64 billion in total expenditures and ₱55.50 billion in net revenue. Its ₱1.29-trillion investment portfolio had an annualized return of 4.64%.

SSS President and CEO Robert Joseph M. de Claro said the agency is focused on strengthening the fund’s sustainability as it moves toward its 70th year.

Finance Secretary and Social Security Commission Chairperson Frederick D. Go also stressed that a stronger fund means greater capacity to pay pensions and other benefits in the future.

The SSS currently covers 44.25 million members, including employed, self-employed, voluntary and overseas Filipino workers, and serves more than one million active employers.

The bigger question for workers

FFW agrees with Balisacan that demographic changes and a shrinking workforce could eventually put pressure on a contributory pension system.

But for the labor group, the answer should not simply be higher contributions from workers.

It wants government to ensure that employers remit workers’ contributions, create more stable and adequately paid jobs, protect SSS investments—and meet the government obligation provided under the SSS law.

For workers in Northern Mindanao and elsewhere who regularly see SSS deductions on their paychecks, the issue is ultimately about one question:

Who is carrying the cost of their future retirement—and is everyone required by law doing their share?