Are you uncertain about the correct way to compute and submit your SSS contributions?
Curious about why, in our modern digital era, the entire contribution remittance process isn’t fully online? Frustrated by the delays in reflecting your payments when they should be instantaneous?
These are some challenges arising from the implementation of the new Social Security Law and the SSS program for real-time contribution postings.
While adapting to significant changes can be tough, you can equip yourself with the necessary information to avoid wasting time and energy on your SSS contributions.
Here’s a comprehensive guide to calculating your SSS contribution using the latest contribution tables.
Who Is Eligible to Contribute to SSS?
All employees, self-employed persons, non-working spouses, and Overseas Filipino Workers (OFWs) under the age of 60 who have an existing SSS number are eligible to contribute to their SSS accounts to initiate or maintain their coverage.
Members with coverage can access social security benefits in the event of illness, unemployment, childbirth or miscarriage, disability, retirement, or death.
Unemployed Filipinos can opt to contribute as voluntary members if they have previously been covered as employed, self-employed, or OFW members and have at least one month of recorded contributions.
It is important to note that the SSS does not permit first-time contributions as voluntary members unless individuals are registered as employed, self-employed, or OFW members.
Voluntary members may only contribute to retain their SSS coverage after leaving employment.
Self-employed individuals, such as farmers and fishermen working in the informal sector, can choose to pay their SSS contributions voluntarily.
Acknowledging their unique challenges, the SSS has established a flexible contribution schedule that allows them to make monthly payments at any time within the twelve months leading up to their payment due date.
For example, if the payment is due in October 2022, they can make payments from October 2021 to September 2022, extending the grace period for payments beyond the previously revised three-month limit.
Why Is Regular Contribution Important?
If you’re on a tight budget, your monthly SSS contribution may feel like an additional cost. However, its true value becomes evident during times of illness, injury, job loss, financial hardship, or retirement.
Consistently paying your SSS contributions helps you save for the future. While you’re still earning, it’s beneficial to build your financial safety net for retirement through these contributions.
Additionally, the SSS calculates the total number and amount of contributions paid as the basis for determining and computing a member’s benefits.
To qualify for an SSS benefit or loan, members must meet specific requirements:
- Salary Loan: At least six posted monthly contributions for the last 12 months, with a minimum of 36 posted monthly contributions.
- Sickness/Maternity Benefit: At least three posted monthly contributions within 12 months before the semester of sickness, injury, childbirth, or miscarriage.
- Disability Benefit: A minimum of one month of recorded contributions must be made before the semester in which the disability occurs.
- Retirement Benefit: At least 120 posted monthly contributions before the retirement semester to receive a monthly pension.
- Death Benefit: At least 36 posted monthly contributions before the member’s death semester for beneficiaries to receive a monthly pension.
- Funeral Benefit: At least one contribution posted before the member’s death.
- Unemployment/Involuntary Separation Benefit: At least 36 posted monthly contributions, 12 of which must be within the 18 months preceding the month the member loses their job.
How to Calculate Your Monthly SSS Contribution: The Essentials
The amount members contribute to the SSS depends on two key factors:
1. Membership Type: Various contribution amounts are applicable for employed individuals, kasambahays, self-employed persons, voluntary members, non-working spouses, and OFWs. For employees, kasambahays, and specific OFWs, contributions are automatically deducted from their monthly salary and submitted to the SSS by their employers, who also contribute a share. In contrast, other members are responsible for paying the entire contribution on their own.
2. Monthly Salary Credit (MSC): Defined by the Social Security Law as “the compensation base for contributions and benefits.” The SSS uses the MSC to calculate the required contribution based on monthly income. Higher monthly earnings result in a higher MSC and, consequently, a higher contribution. The SSS contribution table indicates the MSC for various income ranges.
Understanding the New SSS Contribution Schedule
Before calculating your contribution, it’s crucial to note the key changes to the SSS Contribution Schedule following the implementation of the Social Security Act of 2018.
Starting January 2023, the contribution rate has increased to 14% of the MSC and will continue to rise by 1% every other year until it reaches 15% by 2025.
The recent legislation has raised the minimum Monthly Salary Credit (MSC) from ₱3,000 in 2021 to ₱4,000 in 2023.
This adjustment affects the majority of SSS members, excluding Kasambahay and Overseas Filipino Workers (OFWs), who will continue to have a minimum MSC of ₱1,000 and ₱8,000, respectively.
Additionally, the maximum MSC will increase from ₱25,000 in 2021 to ₱30,000 in 2023.
What do these adjustments mean? You’ll be contributing more each month. However, this increase will also enhance your SSS benefits, as they are calculated based on a higher MSC.
Ultimately, the increase in SSS contributions will prolong the SSS fund’s lifespan, improving your chances of receiving retirement benefits in the future.
The 2023 SSS Contribution Table
1. Employed Members
Of the 14% contribution rate, employees contribute 4.5% through salary deductions, while employers cover the remaining 9.5%.
Employers also pay a monthly contribution for the Employees’ Compensation (EC) Program, which is ₱10 for employees earning below ₱15,000 or ₱30 for those earning ₱15,000 and above.
Employers must remit all contributions to the SSS promptly.
Here’s how to determine the monthly contribution for employers and employees using the new SSS contribution table:
1. Locate the salary bracket in the leftmost column (“Range of Compensation”) that corresponds to the employee’s current monthly income, and find the associated Monthly Salary Credit (MSC) in the “Total” column.
Focus only on the MSC for now; further discussions on Mandatory Provident Fund or WISP will follow.
For example, employees with a monthly salary ranging from ₱19,750 to ₱20,249.99 are assigned a monthly salary credit (MSC) of ₱20,000..
2a. For Employers: To find your share of the contribution for a specific employee in the ER column, locate the employee’s MSC. For an employee with an MSC of ₱20,000, you would pay ₱1,900 for the SSS contribution and ₱30 for the EC contribution, totaling ₱1,930.
2b. For Employees: To determine how much your employer deducts from your monthly salary for SSS contributions, check the EE column that matches your MSC. For instance, if your MSC is ₱20,000, your employer will deduct ₱900 from your monthly pay.
3. To determine the total monthly contribution, refer to the rightmost column. For an employee with a monthly salary credit (MSC) of ₱20,000, the total contribution amounts to ₱2,830, consisting of ₱900 from the employee’s share and ₱1,900 from the employer’s share, which includes the EC contribution.
This total is the amount that the employer is required to remit to the SSS, and it will be credited to the employee’s SSS account once the payment is processed.
Another way to compute the monthly contribution is by using the formula:
MSC x Contribution Rate
Let’s continue with the example of an MSC of ₱20,000.
- Employee’s share: ₱20,000 x 0.045 (4.5% contribution rate) = ₱900
- Employer’s share: ₱20,000 x 0.095 (8.5% contribution rate) = ₱1,900 (plus ₱30 for the EC contribution)
- Total contribution: ₱900 + ₱1,930 = ₱2,830
- In addition to regular contributions, certain SSS members with an MSC exceeding ₱20,000 are now required to contribute to a new provident fund called the Workers’ Investment & Savings Program (WISP).
WISP is a tax-free retirement savings plan that serves as a supplement to your SSS pension benefits.
Note that among members in the Formal Economy, only private sector employees with an MSC above ₱20,000 are eligible for WISP, while government employees are exempt from these salary deductions.
Similar to regular contributions, employers will cover a significant percentage of the employee’s monthly WISP contribution.
For example, a private employee with a maximum MSC of ₱25,000 must remit a total of ₱700 monthly for their WISP account—₱225 from their salary and ₱475 covered by their employer.
There’s no need to visit the SSS office to enroll in this new mandatory provident fund. Membership begins automatically with your first payment (for both WISP and regular contributions) posted from January 2021 onward.
2. Self-Employed Members
If you are registered as self-employed, your monthly earnings declared on your Form E-1 or the latest Form E-4 will determine your MSC and monthly contribution.
SSS classifies you as a self-employed member if you are engaged in a trade, business, or occupation where you are your own boss.
Using the SSS contribution table,
you can determine your MSC and monthly contributions as a self-employed member.
As a self-employed individual, you can choose a contribution of either the minimum or maximum MSC.
To calculate your contribution, follow the same formula:
Monthly Contribution = MSC x Contribution Rate
For example, if you choose an MSC of ₱8,000, your contribution would be:
- ₱8,000 x 0.14 = ₱1,120
Voluntary Members
The SSS recognizes voluntary members as those who have been previously employed, self-employed, or OFWs who continue to make contributions to maintain their SSS coverage.
The monthly contribution calculation for voluntary members follows the same guidelines as self-employed members.
Voluntary members may select the amount of their MSC based on their income and can also choose a contribution rate based on their earnings.
Non-Working Spouse
A non-working spouse member can contribute a minimum MSC of ₱1,000 or an amount equal to their spouse’s MSC, subject to the same contribution rate.
If the working spouse earns the minimum wage of ₱6,000, the non-working spouse may choose to contribute ₱900 (4.5% of ₱20,000) monthly or the equivalent based on their spouse’s MSC.
OFWs
The SSS introduced a revised contribution structure for OFWs that came into effect in 2023.
The new rates aim to provide better coverage and benefits for OFWs, but members can also choose their preferred contribution based on their earning capacity.
The contribution table includes ranges from a minimum of ₱8,000 to a maximum of ₱30,000.
How to Submit Your Contributions to SSS?
You can submit your SSS contributions and remittances through the following methods:
- Online Transactions: Visit the SSS website to access your SSS account. Use the Member Portal to make your contribution payments, check your contributions, and track your loan status.
- Over-the-Counter Transactions: Remit your contributions in person at any SSS branch or accredited banks.
- Mobile Apps: Utilize the SSS Mobile App for convenient contribution payments.
- Gcash/PayMaya: You can also pay via mobile wallets like GCash or PayMaya.
Be mindful of the deadlines for contributions. Members who fail to remit contributions on time may incur penalties.
Tips and Warnings for Managing SSS Contributions
Update Your Contact Details with the SSS
- Keeping your contact information updated allows you to receive your PRN (Payment Reference Number) quarterly and important notifications from the SSS. This ensures timely payments of your contributions, helping you access SSS benefits or loans when needed.
How to Update Your Contact Information:
- My.SSS Portal: Log in to your account, hover over “MEMBER INFO,” click “Update Contact Info,” check the relevant boxes, review, and submit.
- SSS Mobile App: Log in, tap the My Information icon, select Update Information, edit your contact details, and submit.
- In-Person at SSS Branch: Fill out the Member Data Change Request Form (E-4) indicating the changes, then submit it.
Check Your Records Regularly
Regularly verify that your records are accurate. Discrepancies in personal information like your name or date of birth can delay your benefits.
If you notice any errors, submit the necessary forms to correct them immediately.
Pay During Off-Peak Times
To avoid long queues, pay your contributions during early weekday mornings. Avoid busy times like lunchtime, the end of the month, or right after salary days.
Choose Your Payment Channel Wisely
For quick posting of your contributions, pay at an SSS branch. Though it might involve long waits, your payment will usually post within 24 hours.
If you use banks or non-bank collecting partners, be prepared for longer posting times.
Consider Making Advance Payments
If financially feasible, consider making advance payments. This simplifies the process, requiring only one PRN and transaction for several months.
However, be aware that if contribution rates increase, you may need to pay the difference to avoid underpayment issues.
Keep Payment Receipts
Retain validated receipts of your payments. If there’s an issue with your contributions not showing online, these receipts serve as proof to correct any discrepancies.
Join the SSS Worker’s Investment and Savings Program (WISP) Plus
For as little as ₱500, you can join WISP Plus, which allows voluntary contributions to enhance your retirement savings. Contributions are flexible, allowing you to save as you can without any expiration.
FAQs
Is Paying SSS Contributions Mandatory?
Yes, it is mandatory for employers, employed, self-employed, and OFW members. Voluntary members, such as non-working spouses, can choose to contribute.
Can Expats Pay SSS Contributions?
Yes, foreign residents can pay contributions once they obtain an SSS number by submitting valid identification documents.
Can My Family Member Contribute for Me?
Yes, you can designate a representative in the Philippines to make contributions on your behalf. Provide them with your PRN and payment details.
How to Update Membership Status?
Change your membership status via the My.SSS portal. For self-employed or non-working spouses, complete the Member Data Change Request Form.
Can I Change My Contribution Amount?
Yes, you can adjust your contribution amount as a voluntary, self-employed, OFW, or non-working spouse member through the My.SSS portal.
What to Do if My Payment Isn’t Posted?
If you are an employee, check with your employer. If you’re a voluntary contributor, you may need to wait. If unresolved after a month, contact the PRN Helpline.
How to Correct Wrong Contribution Amounts?
Visit the nearest SSS branch with valid ID and receipts to request verification and correction.
Can I Resume Payments After Stopping?
Yes, you can rejoin as a voluntary member if you previously contributed and are under 60.
What Happens if I Miss a Payment Deadline?
You may continue paying for future months but cannot make retroactive payments. Regularly monitor deadlines for contributions.
What to Do if My Employer Fails to Pay Contributions?
Discuss discrepancies with your employer first. If unresolved, file a non-remittance complaint at your local SSS branch with necessary documentation.
When Should I Stop Paying Contributions?
Stop once you make a final claim for total disability or retirement, but consider continuing to pay for a larger pension and to remain eligible for benefits and loans.
