The Social Security System of the Philippines, or SSS, offers social insurance to private, public, professional, and informal sectors. Members pay a monthly contribution to this government agency, and SSS uses it to provide benefits like retirement pensions and salary loans.
You may have been wondering how much you’re giving to SSS, and we’ve made this guide to help you compute your monthly SSS contribution. Let’s look at what this benefit is all about and how to calculate it correctly.
Who Can Contribute to the SSS Fund?
Whether you work in the private sector or classify as an individual member, SSS gives you the necessary coverage. The agency offers compulsory and voluntary coverage to its members.
You're entitled to mandatory SSS coverage if you fall under the following classifications.
- Business or household employer
- Self-employed individual
- Househelper or kasambahay
- Land and sea-based overseas Filipino workers, except for Filipino-born permanent migrants such as immigrants, permanent residents, and naturalized citizens of other countries
Meanwhile, you’ll get voluntary SSS coverage if you’re a non-working spouse or separated member (an SSS member who no longer works for an employer). Filipinos who are naturalized citizens of foreign countries can also be voluntary members.
Remember, though, that you must have paid contributions as an employed, self-employed, or overseas Filipino worker (OFW) member for at least a month to remit payments voluntarily. You won’t be able to pay your monthly contribution if you fail to meet this requirement.
More importantly, you can remit your contribution after parting ways with your employer (and getting your final pay). New voluntary members can choose their monthly salary credit (MSC) from the current contribution schedule, regardless of their age and last posted MSC. You follow a self-employed member’s payment schedule if you pay contributions voluntarily.
How Much is My SSS Monthly Contribution for 2023?
In January 2023, SSS raised its monthly contribution rate to 14% of the MSC. Employer contributions now stand at 9.5%, while employees still give 4.5% worth of contributions to SSS.
How Do I Compute My SSS Contribution?
SSS monthly contribution computations for employers, employees, and self-employed individuals vary. If you fall under any of these categories, here’s how to calculate your SSS contribution.
For Employers & Employees
To ensure a proper computation, you can use the latest SSS contribution table for employers and employees below.
Image from SSS
Now, let’s look at how you should compute employee contributions.
- Find the corresponding salary bracket for your monthly income in the “Range of Compensation” column, then get the equivalent MSC from the “Total” column.
- After identifying your income bracket and MSC, follow these steps:
- For employers: Go to the ER column and get your share of the contribution that matches an employee’s MSC.
- For employees: Get your monthly deduction from the EE column. Make sure that the amount matches your MSC.
Example: Employee A’s income falls under the ₱14,750 to ₱15,249.99 bracket, so their MSC is ₱15,000. Their employer will pay a share of ₱1,425 and deduct ₱675 from Employee A’s salary.
- Get the total monthly contribution from the rightmost column. Using our sample MSC, Employee A should contribute ₱2,130 per month.
You can also calculate your SSS contribution with the following formula:
MSC x Contribution Rate = Total Monthly Contribution
If we compute the total monthly contribution using the formula above, we’ll get:
- ₱15,000 x 4.5% (employee’s share) = ₱675 OR ₱15,000 x 0.045 = ₱675
- ₱15,000 x 9.5% (employer’s share) = ₱1,425 OR ₱15,000 x 0.095 = ₱1,425
Also, SSS adds a specific amount of Employees’ Compensation (EC) contribution to an employer’s share. So, if the employer remits ₱1,425 every month, ₱30 will be added to that amount.
We can compute an employer’s total share like this:
₱1,425 (employer’s share) + ₱30 (EC contribution) = ₱1,455
Then, add the employee’s monthly deduction and the employer’s total share of contribution to get your total monthly contribution. Your computation should look like this:
₱675 + ₱1,455 = ₱2,130
For Self-Employed Members
If you want to know how much you’re contributing as a self-employed individual, the new SSS contribution table for 2023 below can help you get the right amount.
Image from SSS
You can calculate your monthly contribution as a self-employed individual by following these steps:
- Look for your monthly income bracket in the Range of Compensation column.
- Go to the rightmost column of the Monthly Salary Credit section, then get your corresponding MSC.
- Compute your monthly SSS contribution using this formula: MSC x Contribution Rate = Monthly Contribution Amount.
Example: Let’s say your income falls between ₱19,750 to ₱20,249.99. Self-employed members under this bracket get an MSC of ₱20,000.
To calculate your monthly contribution, multiply the MSC by the current SSS contribution rate, as shown below.
₱20,000 x 14% (current contribution rate) = ₱2,800
However, your computation doesn’t stop there. If you’ve joined the agency’s EC program, you can pay an extra ₱10 if your MSC is below ₱15,000 or ₱30 for an MSC amount of ₱15,000 and above. Just take note that you’ll have to remit your EC contributions yourself.
Now, let’s take our sample monthly contribution amount and add it to its corresponding EC contribution. Self-employed individuals with an MSC of ₱20,000 pay ₱30 for their EC contribution.
Here’s how we calculated the final contribution amount:
₱2,800 + ₱30 = ₱2,830
When Should I Pay My SSS Contribution?
SSS previously set contribution payment deadlines based on the last digit of an employer or member’s SSS number. But for 2023, the agency encourages members to submit payments on the last day of the next month or quarter.
Your SSS membership will determine when you need to remit your contributions.
- If you’re a regular employer, SSS accepts payments every last day of the next month.
- If you’re self-employed, you must pay every last day of the following month or quarter. Self-employed members in the informal economy, like farmers and fisherfolk, can pay contributions anytime in the year.
Streamline Your SSS Contribution Calculations
Company growth and salary adjustments can make SSS contributions tricky to compute. By streamlining the way you calculate, you can reduce errors and boost your credibility. Sprout’s top-notch payroll management platform helps make computations hassle-free so you focus on achieving your business goals.