The Social Security System (SSS) is a provider of social security and insurance services established under Republic Act No. 1161, also known as the Social Security Act of 1954.
Subsequent amendments, particularly Republic Act No. 11199, which is referred to as the Social Security Act of 2018, have further strengthened the SSS framework.
The primary purpose of the SSS is to offer financial assistance to its members and their dependents during various circumstances, including sickness, disability, maternity, old age, calamities, unemployment, or death.
This financial support may manifest as salary loans, pensions, or cash allowances. Notably, membership in the SSS is lifelong, and the contributions made are non-refundable.
Who is Required to be Covered by the SSS?
Republic Act No. 11199 outlines the individuals mandated to have SSS coverage, which includes the following categories:
- Private Employees
Employees working for private companies and businesses must maintain active SSS accounts and contribute monthly, regardless of their employment status, unless they are over 60 years of age.
- Household Helpers and Domestic Workers
Individuals employed to perform household duties must also have SSS coverage, provided they are not older than 60.
- Drivers and Operators of Public Utility Vehicles
Drivers and operators of public vehicles, such as tricycles, jeepneys, vans, and buses, are required to be covered by the SSS.
- Self-Employed Persons
Those who are self-employed and earn a minimum of ₱1,000.00 monthly, without exceeding the age limit of 60, must obtain SSS coverage. Self-employed classifications include:
- Independent professionals
- Sole proprietors or partners in businesses
- Media professionals, scriptwriters, directors, and news correspondents who do not work for an employer
- Professional athletes, trainers, and coaches
- Farmers, fishermen, and informal sector workers with irregular or seasonal income
- Other self-employed individuals as defined by the Social Security Commission (SSC).
- Employees of Philippine-Based Foreign Governments or Organizations
Workers from foreign governments or organizations operating in the Philippines with an administrative agreement with SSS must have coverage.
- Overseas Filipino Workers (OFWs)
All OFWs, whether land-based or sea-based, are mandatorily covered by SSS. An OFW is defined as a person engaged in a paid activity outside their country of citizenship or aboard a vessel in foreign waters, excluding government military or non-commercial ships.
Others not included in these categories may still register with the SSS as voluntary members.
What are the SSS Contribution Rates for 2022 and Beyond?
In 2022, the monthly SSS contribution rate was set at 13%, with contributions shared between the employer and the employee. The breakdown is as follows:
- Employer Share: 8.5%
- Employee Share: 4.5%
Starting in 2023, the contribution rate increased to 14%. The new breakdown for contributions is:
- Employer Share: 9.5%
- Employee Share: 4.5%
The SSS contribution table, also referred to as the SSS contribution schedule, details the amounts due from both employers and employees to reach the total monthly contribution.
Contributions may also include an Employee’s Compensation (EC) contribution, which employers pay as part of the Employee Compensation Program (ECP) to cover work-related injuries, illnesses, or fatalities.
Additionally, the new SSS contribution table features a Mandatory Provident Fund (MPF) column for those earning more than ₱20,250.
The MPF contribution is also shared between the employer and the employee, but it applies only to salaries exceeding ₱20,000, aiming to enhance savings for retirement benefits.
Minimum and Maximum Monthly Salary Credits
As of 2024, the minimum Monthly Salary Credit (MSC) for SSS contributions is set at ₱4,000.00, while the maximum MSC is ₱20,000.00.
The contribution rate remains at 14%, consistent with the previous year.
How to Calculate SSS Contributions?
To compute the total SSS contribution for premiums, multiply the member’s MSC by the 14% rate.
Determine the MSC from the contribution table based on the member’s salary bracket. The formulas vary for different employment scenarios:
- For Regular Employees
If the salary is below ₱20,250.00, use the formula:
Total Monthly Contribution (TMC) = (MSC x contribution rate) + EC contribution
For instance, if your salary is ₱10,650.00 and your MSC is ₱10,500 with an EC contribution of 10:
(10,500 x 0.14) + 10 = ₱1,480.00 (Total Monthly Contribution)
If the salary meets or exceeds ₱20,250.00, the formula is:
TMC = (MSC x contribution rate) + EC contribution + (MPF x contribution rate)
For example, with a salary of ₱23,000.00, MSC of ₱20,000, MPF of ₱3,000, and EC of 30:
(20,000 x 0.14) + 30 + (3,000 x 0.14) = ₱3,220.00 (Total Monthly Contribution)
Self-Employed and Voluntary Members Contributions
Self-employed individuals are responsible for their total contributions, calculated as 14% of their declared monthly income. For those earning below ₱20,250:
TMC = (Monthly Salary Credit x rate of contribution) + EC
For example, for a declared income of ₱12,000:
(12,000 x 0.14) + 10 = ₱1,570.00
For those with earnings equal to or above ₱20,250:
TMC = (MSC x rate of contribution) + (MPF x rate of contribution) + EC
For instance, if the MSC is ₱20,000 and MPF is ₱2,000 with an EC contribution of 30:
(20,000 x 0.14) + (2,000 x 0.14) + 30 = ₱2,890.00
Voluntary members and non-working spouses also compute their contributions based on their declared monthly income, with the non-working spouse’s MSC being half of their working spouse’s MSC.
What Are the Benefits Offered by the SSS?
SSS provides a range of benefits for its members and their dependents, including seven key types:
1. Sickness Benefit: A cash allowance is provided for each day the member is unable to work due to injury or illness. Eligibility requires a minimum of four days of confinement, the use of all paid sick leave, and at least three months of contributions within the prior twelve months. Members receive 90% of their average daily salary credit (ADSC), with a maximum of 120 days of coverage per year.
2. Maternity Benefit: This cash allowance is available for days the member cannot work due to childbirth, miscarriage, or emergency termination of pregnancy. To qualify, the member must have made at least three months of contributions in the twelve months preceding the event and must notify their employer or SSS as appropriate. Benefits include 100% ADSC for 105 days for standard or cesarean deliveries, 120 days for solo parents, and 60 days for miscarriage or emergency termination.
3. Disability Benefit: A cash benefit is provided to members who have become permanently, partially or totally disabled. Eligibility requires a minimum of 36 months of contributions, and those with fewer contributions receive a lump sum instead. The disability pension varies based on credited years of service.
This summary provides an overview of SSS coverage, contributions, and benefits, reflecting the essential components of social security for members in the Philippines.
