The Social Security System (SSS) is a social insurance provider established by Republic Act No. 1161, known as the Social Security Act of 1954.
Over time, amendments strengthened its foundation, culminating in Republic Act No. 11199, the Social Security Act of 2018.
The government created SSS to assist its members and their families during various life challenges.
This support can include salary loans, pensions, or cash allowances. Membership in the SSS is for life, and contributions paid into the system are non-withdrawable.
Who are the people required to be covered by the SSS?
RA 11199 lists who the Social Security System covers. Here are the people included.
Household Helpers and Domestic Workers
Household helpers and domestic workers must have SSS coverage if they are under 60 years old.
Private Employees
Employees of private companies, regardless of their status (provisional, temporary, or permanent), are required to have active SSS accounts and make monthly contributions unless they are over 60.
Drivers and Operators of Public Vehicles
Public vehicle drivers like tricycle, jeepney, van, and bus operators need to have SSS coverage.
Self-Employed Persons
Self-employed individuals who earn at least ₱ 1,000.00 per month and are under 60 years old must have SSS coverage. This category includes:
- Professionals working independently
- Sole owners or partners of businesses
- Media personalities, scriptwriters, directors, and news correspondents not employed
- Professional athletes, trainers, and coaches
- Farmers, fishermen, and informal sector workers with irregular or seasonal incomes
- Other self-employed individuals as defined by the Social Security Commission (SSC)
Employees of Philippine-based Foreign Governments or Organizations
Employees working for foreign governments or organizations in the Philippines with an SSS administrative agreement must have SSS coverage.
Overseas Filipino Workers (OFWs)
All OFWs, whether land-based or sea-based, are required to have SSS coverage. An OFW is someone engaged in paid work outside the Philippines or on a foreign vessel, excluding government or non-commercial ships.
Voluntary Members
Individuals who do not belong to any of the above groups can still register with SSS as Voluntary Members.
What is the SSS contribution rate in 2022?
In 2022, the monthly SSS contribution was 13%. This amount is shared between the employer and the employee as follows:
- Employee share: 4.5%
- Employer share: 8.5%
What is the new SSS contribution table starting 2023?
In 2023, the monthly SSS payments rose to 14%, up from 13% the previous year. This update also revised how contributions are split between employers and employees.
- Employee Share: 4.5% (0.045)
- Employer Share: 9.5% (0.095)
Here is the contribution table:
The SSS contribution table, also called the SSS contribution schedule, shows the correct amounts employers and employees must contribute to reach the total monthly SSS contribution.
This table is necessary to calculate the employer’s share, the employee’s share, and the total contribution based on the Monthly Salary Credit (MSC).
For employed members, contributions may include an Employee’s Compensation (EC) portion, which the employer pays as part of the Employee Compensation Program (ECP).
This program offers compensation for work-related injuries, illnesses, or deaths.
The updated SSS contribution table features a column for the Mandatory Provident Fund (MPF). Employees earning more than ₱20,250 are required to contribute to the MPF.
Contributions for the MPF are shared between the employer and the employee, similar to regular SSS contributions, but only on the amount over ₱20,000.
The MPF program aims to boost members’ savings for improved retirement benefits.
Maximum Monthly Salary Credit
- As of 2024, the highest monthly salary credit for SSS contributions is Php 20,000.00.
Minimum Monthly Salary Credit
- The lowest monthly salary credit is Php 4,000.00.
What is the SSS contribution rate for 2024?
In 2024, the SSS contribution rate remains at 14%, the same as in 2023. The 2023 contribution table will apply for calculations in 2024. The distribution of shares is as follows:
- Employee Share: 4.5% (0.045)
- Employer Share: 9.5% (0.095)
How to compute the SSS contributions of members?
To determine the total contribution, first identify the correct Range of Compensation or salary bracket based on your monthly salary.
The total contribution is determined using various methods, calculated as 14% of the member’s monthly salary for SSS premiums.
Employers and employees calculate the total monthly contribution (TMC) using these formulas.
For salaries below ₱20,250.00: TMC = (MSC x contribution rate) + EC contribution
- 2022 Example: Salary ₱10,650.00, MSC ₱10,500, EC 10. Calculation: (10,500 x 0.13) + 10 = ₱1,375. TMC: ₱1,375.00.
- 2023-2024 Example: Salary ₱10,650.00, MSC ₱10,500, EC 10. Calculation: (10,500 x 0.14) + 10 = ₱1,480. TMC: ₱1,480.
For salaries ₱20,250.00 and above: TMC = (MSC x contribution rate) + EC contribution + (MPF x contribution rate)
- 2022 Example: Salary ₱23,000.00, MSC 20,000, MPF 3,000, EC 30. Calculation: (20,000 x 0.13) + 30 + (3,000 x 0.13) = ₱3,020. TMC: ₱3,020.00.
- 2023-2024 Example: Salary ₱23,000.00, MSC 20,000, MPF 3,000, EC 30. Calculation: (20,000 x 0.14) + 30 + (3,000 x 0.14) = ₱3,220. TMC: ₱3,220.00.
Additionally, adjust the contribution rate to 0.095 for employers or 0.045 for employees to determine your specific SSS contribution share.
- For an MSC of 11,500 and an EC contribution of 10, your SSS monthly contribution for your employee is ₱1,102.50. (Calculation: (11,500 x 0.095) + 10 = 1,102.50).
- Your SSS monthly contribution for an MSC of 20,000, MPF of 4,500, and EC contribution of 30 totals ₱2,357.50. (Calculation: (20,000 x 0.095) + 30 + (4,500 x 0.095) = 2,357.50).
- With an MSC of 9,000, your SSS contribution amounts to ₱405.00 per month. (Calculation: (9,000 x 0.045) = 405.00).
- The SSS contribution for an MSC of 20,000 and MPF of 3,500 is ₱1,057.50 per month. (Calculation: (20,000 x 0.045) + (3,500 x 0.045) = 1,057.50).
- Employees’ total contributions are deducted monthly from their salaries.
