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:
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.
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:
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.
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Members who pay SSS |
Description of members |
Who all are involved |
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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) |
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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 |
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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) |
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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 |
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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 |
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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 |
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 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.
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.
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.
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 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.
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.
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:
The SSS contribution tables describe how these contributions are classified:
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:
Example:
The monthly salary credit calculates your contribution amount and SSS benefits.
The SSS monthly contribution recognizes the following membership types:
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.
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.
Yes, there are set minimum and maximum limits for contributions:
These limits apply to all members, ensuring proportional contributions:
Salaried employees' employer and employee share contributions are adjusted accordingly and capped at the maximum MSC.
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:
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:
They pay the entire 14% contribution rate. If the MSC is ₱20,000:
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:
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.
You can pay your SSS contributions through different channels depending on your membership type:
SSS accepts payments through various channels, including:
The deadlines vary by membership type:
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.
If you identify errors in your contribution record, take the following steps:
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.
To update your SSS membership information:
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:
Employers cannot change employees' contributions; only employees can change their own.
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 systems calculate your SSS contribution based on the latest regulations, ensuring accuracy and eliminating manual errors.
Secure and centralized databases allow HR teams to store, update, and manage employee information efficiently, ensuring accurate contributions and seamless communication across departments.
Payroll solutions for the Philippines, which support the Philippine peso and SSS, PhilHealth, and PAG-IBIG contributions, are integrated with local regulations.
Automation reduces the time and effort needed for manual record-keeping and computation, allowing HR teams to focus on strategic tasks.
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.
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.
The minimum Monthly Salary Credit for SSS contributions is set at ₱4,000.
The 2024 contribution is now 14%, with maximum Monthly Salary Credit adjustments.
Employers and members shall pay on or before the last day of the next month or quarter for 2024.
SSS loans are payable in 24 months. However, the terms of payment vary according to the type of loan.
Stopping contributions can lead to the loss of some benefits. However, you can still pay your SSS contributions anytime to continue coverage.
To get the monthly contribution, multiply the member's MSC by the applicable contribution rate (14% for 2024).
SSS contributions are calculated based on the member's gross pay.
The 2024 SSS contribution table has a 14% contribution rate, and the maximum MSC is ₱30,000.
The PhilHealth 2024 contribution rate is 4.5% of the monthly income, equally shared between employers and employees.