The Social Security System (SSS) is a social insurance program established in the Philippines with Republic Act No. 1161, or the Social Security Act of 1954, and then amended by Republic Act No. 11199, also known as the Social Security Act of 2018. It provides financial assistance and social benefits to its members during some of the most challenging times they need them, be it sickness, maternity, disability, old age, calamities, unemployment, or death.
SSS is important for the following reasons:
- It gives members, including their dependents, an avenue to receive financial support in times of uncertainty or life transitions, like retirement.
- It is mandatory and all-inclusive for most sectors of the working population, from private employees to self-employed individuals and overseas workers.
- It gives people lifetime membership. Contributions are non-withdrawable; thus, they can use the SSS fund when qualifying events happen.
- It makes people prepare for future needs through mandatory savings.
Guide on SSS Monthly Contribution (Philippines)
About 2.2 million members received retirement payments from the Social Security System (SSS) as of 2023, totaling about ₱156.7 billion, highlighting the system's substantial influence on beneficiaries' quality of life. Through 45 million claims, the SSS has paid out ₱2.49 trillion in compensation since its incorporation in 1954. Nearly 90% of these distributions were for long-term benefits, such as retirement, death, and disability compensation. These numbers show how Philippine citizens unduly depend on the SSS benefits despite their uncertain challenges.
Till now, the number of members of the SSS has increased significantly. It reached a record high of almost 2.4 million new members in the first half of 2024. Notably, from 112,000 in 2023 to 419,000 in 2024, the number of new self-employed members increased by 273%. This shows how members are willing to secure their survival as a responsible individual.
In this article, we will dive deeper into SSS monthly contribution and understand, in simple words, how it works.
What is SSS, and why is it important?
The Social Security System (SSS) is a social insurance program established in the Philippines with Republic Act No. 1161, or the Social Security Act of 1954, and then amended by Republic Act No. 11199, also known as the Social Security Act of 2018. It provides financial assistance and social benefits to its members during some of the most challenging times they need them, be it sickness, maternity, disability, old age, calamities, unemployment, or death.
SSS is important for the following reasons:
- It gives members, including their dependents, an avenue to receive financial support in times of uncertainty or life transitions, like retirement.
- It is mandatory and all-inclusive for most sectors of the working population, from private employees to self-employed individuals and overseas workers.
- It gives people lifetime membership. Contributions are non-withdrawable; thus, they can use the SSS fund when qualifying events happen.
- It makes people prepare for future needs through mandatory savings.
Who should pay SSS monthly contributions?
All registered businesses and establishments in the Philippines must contribute to the Social Security System for their employees. However, remember that to remit voluntary contributions, you must have paid contributions for at least one month as an overseas Filipino worker, self-employed person, or an employee.
|
Members who pay SSS |
Description of members |
Who all are involved |
|
Private Employees |
The SSS covers all private employees, whether provisional, temporary, or permanent. Both employers and employees are responsible for the contributions. However, individuals over 60 are exempt. |
Private employees (provisional, temporary, or permanent) |
|
Household Helpers and Domestic Workers |
Household employers are responsible for making contributions for their household helpers. SSS benefits should cover all domestic workers, including housemaids, whom one hires to perform errands or housework. The household employers contribute to the cost, and the same age restriction applies to those 60 years old. |
Domestic workers, including housemaids |
|
Drivers and Operators of Public Utility Vehicles |
Public transportation operators, including buses, jeepneys, tricycles, and others, should also be covered by SSS. They contribute to ensure they receive social security benefits in their time of need. |
Public transportation operators (buses, jeepneys, tricycles, and others) |
|
Self-Employed Persons |
Self-employed people, such as professionals, business establishments, media personalities, farm workers, and informal sectors, should contribute to SSS. Anyone who earns a minimum of ₱1,000 monthly and is younger than 60 is covered. |
Professionals, business owners, media personalities, farm workers, and informal sectors |
|
Employees of Philippine-based foreign Governments or Organizations |
People working in the Philippines for a foreign government or organization covered under an administrative agreement with the SSS must have contributions to the system. |
Philippine-based company's employees |
|
Overseas Filipino Workers (OFWs) |
All land-based and sea-based OFWs are now mandatorily covered by the SSS. Their membership guarantees that they have social insurance coverage even if they are working overseas. |
Philippine workers working abroad |
|
Voluntary Members |
Anyone else who does not fall within the categories above can also become a voluntary member of the SSS. These are freelancers, non-working spouse members, and those with past Social Security System (SSS) membership who would want to continue their coverage. |
Freelancers, non-working spouse members, and those with past SSS membership wanting to continue their coverage |
What benefits can I get from paying SSS contributions?
Sickness benefits
The SSS provides sickness benefits and financial assistance to members who cannot work due to some illness or sickness: a daily cash allowance equivalent to 90% of the member's Average Daily Salary Credit (ADSC) for a maximum of 120 days within a calendar year. Eligibility requires at least three months of contributions in the 12 months preceding the illness and proper notification to the employer or SSS.
Maternity benefits
Maternity benefits support expecting mothers during childbirth, amounting to 100% of the member's average daily salary credit for a specified duration, depending on delivery type. They are entitled to daily cash allowances in case of childbirth, miscarriage, or emergency termination of pregnancy. They can receive paid leave for 60 to 120 days, depending on the situation. To qualify, members must have paid at least three months' contributions within the 12 months preceding the semester of delivery or termination.
Disability benefits
Financial assistance to members with a partial or total permanent disability are entitled to either a monthly pension and a ₱500 supplemental allowance, depending on the years of contributions, or a lump sum. The monthly pension is payable to those who have made at least 36 months of contributions, while others receive a lump sum.
Unemployment Benefits
The unemployment SSS benefits for terminated members provide a payout equivalent to 50% of the member's monthly salary, up to a maximum of ₱10,000. Members involuntarily separated from employment can claim a one-time cash benefit equivalent to their average MSC. To qualify, they must have paid at least 36 months of contributions, with 12 months falling within the 18 months before separation.
Retirement benefits
Members who attain age 60, if separated from employment, or 65, if still employed, are eligible for retirement benefits through a monthly pension or a lump sum amount. Members with at least 120 months of contributions qualify for retirement monthly payments, while others may continue contributing until eligible.
Death benefits
Death benefits are provided to beneficiaries of deceased members in either a monthly pension or a lump sum amount, depending on the years of service. The pension amount is based on a minimum of 36 months of contributions. Furthermore, dependents are allowed additional allowances.
Funeral benefits
The funeral benefit is a cash payment given to the member who pays the funeral costs of a deceased person. Depending on the member's payment, the amount ranges from ₱20,000 to ₱60,000. The amount of the SSS fund means financial support as a safety net for members and their families in various circumstances.
What is SSS contribution table?
The SSS contribution table is a comprehensive guide showing the contribution amounts based on the employee's monthly salary. It is updated periodically and considers changes in policies and economic factors.
Below is the latest SSS contribution table you can refer to:
What are the key components of the latest SSS Contribution Table?
The SSS contribution tables describe how these contributions are classified:
- Monthly Salary Credit (MSC): The compensation base for calculating monthly contributions and benefits under the Social Security Law.
- Range of Compensation: Computes contributions according to your salary range.
- Social Security (EE & ER): Employee and employer contribution, respectively.
- EC Contribution: For the Employee's Compensation Program.
- WISP: Workers' Investment and Savings Program (WISP): A mandatory provident fund under the SSS for members earning PHP 20,000+ monthly that will help augment retirement savings.
- Total Contribution: Combination of all employee, employer, and EC contributions.
How do I determine my Monthly Salary Credit (MSC)?
The salary bracket determines the employee's monthly salary credit, as outlined in the SSS contribution table. Each salary bracket corresponds to a fixed MSC.
Steps to determine MSC:
- Identify your monthly salary.
- Find the corresponding range in the “Range of Compensation” column in the SSS contribution table.
- Note the MSC associated with that range.
Example:
- If your salary is between ₱19,750 and ₱20,249.99, your MSC is ₱20,000.
The monthly salary credit calculates your contribution amount and SSS benefits.
What are the different membership types in the SSS?
The SSS monthly contribution recognizes the following membership types:
- Employed or Salaried: For individuals employed by private organizations, contributions are shared between the employer and the employee.
- Self-Employed: For freelancers, entrepreneurs, and individuals with no employer.
- Voluntary Members: For individuals previously employed or self-employed and wishing to continue contributing voluntarily.
- Overseas Filipino Workers (OFWs): For Filipinos working abroad.
- Non-Working Spouses: This is for spouses who are not employed but wish to contribute based on their working spouse's income.
- Farmers and Fisherfolk: Members of the informal economy who contribute as self-employed members.
How do SSS contributions vary for each membership category?
SSS contributions vary for every membership category, mainly regarding who bears the cost and the percentage of MSC contributed. For employed members, contributions are split between both the employer and the employee. The former pays 4.5% of his or her MSC, while the latter pays 9.5%, among other EC contributions.
Self-employed members are responsible for paying both the employer and employee share of their SSS contributions based on their declared monthly earnings. All self-employed members will have to pay the full 14% of their MSC, with optional EC contributions pegged at ₱10 if the MSC is below ₱15,000 and ₱30 for an MSC amounting to ₱15,000 and above. Voluntarily insured members who are either previously employed or self-employed will have to pay 14% of their MSC, with EC contributions remaining optional under the same rules.
Voluntary members calculate their monthly SSS contributions based on their declared monthly income during registration.
An overseas Filipino worker is also counted as a voluntary member, with a minimum MSC of ₱8,000, paying the same 14% rate and optional EC contributions. Non-working spouse members contribute based on a declared MSC, paying 14%. Farmers and fisherfolk are also considered informal economy contributors and fall under self-employed members. They also have an option to include EC contributions.
What is the current SSS contribution rate for 2024?
The SSS contribution rate for 2024 is 14%, with employers contributing 9.5% and employees contributing 4.5% of the Monthly Salary Credit (MSC). This rate applies to salaries from ₱4,000 to ₱30,000, ensuring fund sustainability as mandated by the Social Security Act of 2018.
The SSS Contribution Schedule was set to increase by 1% annually starting January 2023, with a target of 15% by 2025. However, the Philippine government deferred the increase for 2024 in response to economic concerns and public feedback, keeping the current rate unchanged.
Are there any minimum or maximum limits for contributions?
Yes, there are set minimum and maximum limits for contributions:
- Minimum MSC: ₱4,000.
- Maximum MSC: ₱30,000.
These limits apply to all members, ensuring proportional contributions:
- For example, a voluntary member with an MSC of ₱30,000 pays:
- Contribution: ₱30,000 x 14% = ₱4,200.
- EC (optional): ₱30.
- Total monthly contribution: ₱4,230.
Salaried employees' employer and employee share contributions are adjusted accordingly and capped at the maximum MSC.
How can you calculate your SSS monthly contribution rates?
You can calculate your SSS monthly contribution rates based on a member's Monthly Salary Credit (MSC), corresponding to their salary range. For more accurate numbers, refer to the latest SSS contribution table. The SSS monthly contribution schedule effective 2023 for employees, employers, self-employed, and voluntary members are as follows:
For Employers and Employees:
Determine your gross income, including overtime compensation and holiday pay minus absences. Check the contribution table for SSS for your MSC under the compensation range. Find the monthly deduction under the EE column. It implements the Mandatory Provident Fund for incomes higher than PHP 30,000. Add the employer's share to get the total contribution.
The total contribution rate is 14% of the MSC. Employers contribute 9.5%, and employees contribute 4.5%. For example, if an employee's MSC is ₱15,000:
- MSC x contribution rate of employee = Employer's Share = ₱15,000 x 9.5% = ₱1,425.
- MSC x contribution rate of employer = Employee's Share = ₱15,000 x 4.5% = ₱675.
- Total monthly contribution = Employer's share + Employee's share = ₱2,100.
Employers also pay an additional Employees Compensation (EC) contribution:
- EC contribution is ₱10 for MSCs below ₱15,000 and ₱30 for MSCs ₱15,000 and above.
- Example: Employer's total share for MSC ₱15,000 = ₱1,425 + ₱30 = ₱1,455.
For Self-employed individuals and voluntary members:
They pay the entire 14% contribution rate. If the MSC is ₱20,000:
- Total monthly contribution = ₱20,000 x 14% = ₱2,800.
If participating in the EC program, self-employed individuals add ₱10 (for MSC below ₱15,000) or ₱30 (for MSC ₱15,000 and above) to their contribution.
Example: ₱20,000 MSC for self-employed:
- Self-employed individuals contribution: ₱20,000 x 14% = ₱2,800.
- EC contribution: ₱30.
- Total SSS contribution = Employee Contributions + EC contribution = ₱2,830.
Contribution for OFWs and Non working spouses
OFWs have a monthly salary credit of ₱8,000 and follow the same computation as voluntary members.
Non-working spouses' monthly salary credit is based on 50% of their working spouse's MSC.
How do I pay my regular SSS monthly contribution?
You can pay your SSS contributions through different channels depending on your membership type:
- For Employees: Your employer deducts the contribution from your salary and remits it directly to the SSS.
- For Self-Employed and Voluntary Members: You can remit contributions using the SSS Member Portal, SSS Mobile App, or accredited payment centers.
- For Overseas Filipino Workers (OFWs): Payments can be made online or through SSS-accredited payment partners abroad.
What payment channels are available (e.g., online, over-the-counter, mobile apps)?
SSS accepts payments through various channels, including:
SSS contributions Online Platforms:
- SSS Member Portal
- SSS Mobile App
Digital Payment Wallets:
- GCash
- PayMaya
Accredited Payment Centers:
- Bayad Center
- Other authorized collecting agents
Over-the-Counter:
- Accredited banks or payment centers
- International Payments (for OFWs): Through SSS-accredited partners overseas.
What is the deadline for paying monthly SSS contributions?
The deadlines vary by membership type:
- Regular Employers: Last day of the month following the applicable month.
- Household Employers: Household employers must remit SSS contributions by the last day of the month following the applicable month or calendar quarter.
- Self-Employed, Voluntary, and Non-Working Spouses: Last day of the month following the applicable month or quarter.
- Overseas Filipino Workers (OFWs): Remitting SSS contributions anytime during the year, with options for monthly, quarterly, or annual payments.
Contributions for January to September: Pay until December 31 of the applicable year. Contributions for October to December: Pay until January 31 of the following year. - Farmers and Fisherfolk: Contributions for the last 12 months can be paid in the current month.
What happens if I fail to pay my contributions on time?
Late payment of your SSS contributions entails penalties and can affect your eligibility for benefits. The SSS contribution charges a 3% monthly penalty for unpaid contributions, which accrues from the due date until full payment.
To pay missed SSS contributions retroactively, generate a Payment Reference Number (PRN) for the applicable period through your My.SSS account or the SSS mobile app. Once you have the PRN, pay the outstanding amount, including any applicable penalties.
What should I do if I notice errors in my SSS contribution record?
If you identify errors in your contribution record, take the following steps:
- Review your records: Ensure that all payments and contributions are correctly indicated.
- Contact SSS: Reach out to the SSS through their official channels to report the discrepancies.
- Provide documentation: Submit any necessary documents or proof to support your claim.
- Follow-up: Monitor the status of your inquiry to ensure the issue is resolved promptly.
How can I check my SSS contribution records?
You can check your SSS contributions online records through the following methods:
SSS Website: Log in to your My.SSS account and go to the contributions section to view your records.
SSS Mobile App: After logging in, the app's home page shows the number of SSS contributions posted. Tapping the tab shows all the dates and amounts.
How do I update my SSS membership information?
To update your SSS membership information:
- Log in: Access your My.SSS account on the official SSS website.
- Go to profile: Go to the 'My Profile' section.
- Edit info: Update contact information or present employment status.
- Save changes: Ensure you save any changes to your profile.
Can I adjust my SSS monthly contribution amount, and if so, how?
You can adjust your contribution amount if you are a voluntary, self-employed, or OFW member. You can do this by following the steps below:
- Login: Access your My.SSS account.
- Generate PRN: Pick 'Payment Reference Number (PRN) – Contribution' and click 'Generate PRN.'
- Select Membership Type: Choose your membership type and the period that applies.
- Input New Amount: Type in your desired contribution amount.
- Submit and Pay: Submit the request and pay using the generated PRN.
Employers cannot change employees' contributions; only employees can change their own.
What happens to my SSS contributions during retirement, unemployment, and stop contribution?
- Retirement: You are qualified for your retirement pension after reaching your contribution goal (at least 120 monthly SSS contributions).
- Unemployment: You would qualify for unemployment benefits based on the qualification set if you lose a job involuntarily.
- Stop contributions: Once you stop contributing, some of your benefits will be null and void, but contributions may be reinstated once you opt to pay in as a voluntary member, thereby keeping you covered under SSS.
How to simplify the SSS contribution process?
The SSS contribution process can be streamlined by leveraging an automated payroll system like Darwinbox that is tailored to specific requirements. These systems offer features that simplify compliance and reduce administrative effort, including:
Automated calculations
Automated systems calculate your SSS contribution based on the latest regulations, ensuring accuracy and eliminating manual errors.
Centralized employee records
Secure and centralized databases allow HR teams to store, update, and manage employee information efficiently, ensuring accurate contributions and seamless communication across departments.
Integration with local requirements
Payroll solutions for the Philippines, which support the Philippine peso and SSS, PhilHealth, and PAG-IBIG contributions, are integrated with local regulations.
Administrative stress reduced
Automation reduces the time and effort needed for manual record-keeping and computation, allowing HR teams to focus on strategic tasks.
Error-free reporting
Automated tools help make accurate reports on contributions and tax compliance, avoiding penalties because of wrong submissions.
Modern payroll systems have features like these, so businesses can facilitate easier SSS contribution processing without violating the law. Therefore, Darwinbox has made it easier for your business as well. Without further delay, simplify SSS contributions for your business with Darwinbox’s automated payroll solutions. Schedule a free demo today.
FAQs
What is the monthly SSS contribution table for 2024?
The SSS contribution table in 2024 outlines a set of rates and amounts against each bracket based on income, using a 14% rate shared between employers and employees.
What is the minimum Monthly Salary Credit for SSS contributions?
The minimum Monthly Salary Credit for SSS contributions is set at ₱4,000.
What is the latest SSS contribution rate in 2024?
The 2024 contribution is now 14%, with maximum Monthly Salary Credit adjustments.
What is the new schedule of SSS contributions for 2024?
Employers and members shall pay on or before the last day of the next month or quarter for 2024.
How many months will I pay my SSS loan?
SSS loans are payable in 24 months. However, the terms of payment vary according to the type of loan.
What happens if I stop paying my SSS contribution?
Stopping contributions can lead to the loss of some benefits. However, you can still pay your SSS contributions anytime to continue coverage.
How is SSS contribution computed?
To get the monthly contribution, multiply the member's MSC by the applicable contribution rate (14% for 2024).
Is SSS contribution based on gross pay or basic pay?
SSS contributions are calculated based on the member's gross pay.
What is the new SSS contribution table for 2024?
The 2024 SSS contribution table has a 14% contribution rate, and the maximum MSC is ₱30,000.
What is the SSS contribution table for PhilHealth's employees and employers in 2024?
The PhilHealth 2024 contribution rate is 4.5% of the monthly income, equally shared between employers and employees.
Speak Your Mind