A new Social Security System (SSS) Monthly Contribution Table was adopted effective January 1, 2014 after the pension fund increased the monthly contribution it requires from members. Back then, the SSS implemented a 0.6% increase in member contributions, shared equally by both the Employer and Employee.
The increase is said to help reduce the pension fund’s unfunded liability by P141 billion. “Unfunded liabilities” are future obligations of the SSS in which no funds have been set aside. Given its assets back in 2014, the SSS could only cover obligations and liabilities up to year 2039. By implementing the contribution hike, the SSS extended the fund’s life by an additional 4 years, or up to year 2043.
However, in 2018, with the approved P1,000 monthly pension hike and additional P1,000 for pensioners beginning 2019, SSS management warned that the SSS fund life may be cut short further to 2026. This means that by the year 2026, the SSS may be unable to pay its obligations anymore.
This is why the current SSS administration is proposing to either delay the payment of the additional P1,000 monthly pension to 2020 or to increase again the member’s contribution or both.
SSS Member Contribution Rate
At present, the SSS contribution rate is 11% of the Monthly Salary Credit (MSC) not exceeding P16,000 per month. The total SSS contribution is shared by the Employer, paying 7.37% of the 11% contribution rate, and the Employee paying the remaining 3.63%.
Self-employed (SE) and Voluntary Members (VM) also pay 11% of the Monthly Salary Credit, based on the monthly earnings they declared at the time of their SSS registration.
For OFWs, the minimum MSC is P5,000. This means all OFW will have to pay at least P550.00 monthly SSS contribution regardless if he or she is earning less than P5,000 per month.
For the non-working spouse, the contribution will be based on 50% of the working spouse’s last posted monthly salary credit but in no case shall it be lower than P1,000.
Here’s the latest schedule of SSS member contributions.
New SSS Member Contribution Table
How to Read the SSS Contribution Schedule
Knowing how to use the SSS contribution table can help you understand if the monthly SSS premium deducted from your salary is correct. To know this, you must determine:
- Range of Compensation is the category where your monthly salary belongs.
- Social Security – EE means Employee contribution; basically the amount of your own SSS contribution.
- Social Security – ER is you Employer’s contribution.
- EC – ER column represents contributions for the “Employees’ Compensation” Program which is a fund for work-connected injury, sickness, disability and death with cash income benefit, medical, rehabilitation and related services. The EC contribution is solely paid by your employer.
Step-by-Step Guide on using the SSS Table
To know how much should be deducted from your monthly salary as SSS contribution:
Step 1. Simply look for the row in the Range of Compensation column representing your monthly salary. If your monthly salary is P12,000.00, the relevant row is the one with the compensation range “P11,750.00 to P12,249.99”.
Step 2. Head over to the Social Security – EE column to see how much your contribution will be. If you are earning P12,000.00 per month, the Employee contribution is P436.00. This means you should be seeing P436.00 deducted every month in your payroll as your SSS contribution.
Step 3. Your employer, in turn, will contribute P884.00 for social security, plus P10.00 for the Employees’ Compensation program. The total Employer contribution then is P894.00. The full amount to be remitted to SSS, by your employer, is P1,330.00.
If you are Self-Employed (SE), a Voluntary Member (VM), or an Overseas Filipino Worker (OFW), the relevant column to you is the last column, the one entitled SE/VM/OFW Total Contribution.
So if you’re an SE or VM or OFW earning P12,000 per month, your SSS contribution is P1,320.00 per month.
Unlike in the previous example, there is no Employer contribution for these members. The amount of contribution will depend on their stated monthly income during application and the full SSS contribution will be shouldered by the member.
Deadline to Pay SSS Contributions
The due date for paying SSS member contributions will depend on the status of the paying member.
For Employed (EE) members
Your employer must pay your contributions and member loans every month in accordance with the prescribed schedule of payment, which is according to the 10th digit of the Employer’s ID Number. Frequency of payment must be monthly for business and household employers.
For Self-Employed (SE) and Voluntary Members (VM)
The prescribed schedule of payment also depends on the 10th digit (last digit) of your SE/VM SSS number. The frequency of contribution payments, however, may be done monthly or quarterly.
A quarter covers three (3) consecutive calendar months ending on the last day of March, June, September and December. Any payment for one, two, or all 3 months for a calendar quarter may be made.
For Overseas Filipino Workers (OFW)
OFWs may pay their SSS contributions for the months of January to December anytime within the same year. Contributions for the last quarter of the year, that is October to December, may be paid on or before the 31st of January of the succeeding year.
Source: Social Security System (www.sss.gov.ph)