How Much SSS Contribution Should I Pay?

The Social Security System (SSS) in the Philippines is a government-run social insurance program providing a safety net for private sector workers and their families. The SSS aims to offer financial protection against various life contingencies, including sickness, maternity, disability, old age, death, and unemployment. It provides replacement income and support to members and their beneficiaries.

Who Contributes to SSS

SSS coverage is mandatory for most private sector workers. Employees in the private sector, including household helpers (Kasambahays) under 60 years of age, are covered from their first day of employment. Their employers are responsible for registering them and remitting contributions.

Self-employed individuals, not over 60 at initial coverage, are also subject to mandatory SSS contributions. This category includes professionals, business owners, freelancers, and informal sector workers with an income of at least ₱1,000 per month. Overseas Filipino Workers (OFWs), both land-based and sea-based, are also mandatorily covered by SSS. Land-based OFWs are generally treated as self-employed for contribution purposes, while for sea-based OFWs, manning agencies often cover the employer’s share.

Individuals who were previously covered as employed, self-employed, or OFWs, and have at least one valid posted contribution, can continue their membership on a voluntary basis. This allows those no longer working in covered categories, such as separated employees or non-working spouses, to maintain their SSS benefits. Filipino permanent migrants in other countries may also be covered by the SSS on a voluntary basis.

Determining SSS Contribution Amounts

The amount of SSS contribution is based on a member’s Monthly Salary Credit (MSC). The MSC is a bracketed amount used as the compensation base for computing contributions and benefits, determined by mapping gross monthly compensation to the SSS salary credit table. For employed members, the MSC is derived from their total remuneration, including fixed allowances. For self-employed individuals, it is based on their declared monthly earnings, which can be adjusted, and for land-based OFWs, a minimum MSC of ₱8,000.00 is often applied, though they can declare a higher amount.

The total SSS contribution rate, effective January 1, 2025, is 15% of the MSC, not exceeding ₱35,000. For employed members, the employer contributes 10% of the MSC, while the employee’s share is 5%. Additionally, employers contribute to the Employees’ Compensation Program (ECP) for their employees, with a fixed amount of ₱10 for MSCs of ₱14,500 and below, and ₱30 for MSCs of ₱15,000 and above. Self-employed, voluntary, and OFW members pay the entire 15% themselves.

If the MSC is ₱35,000, the maximum MSC, the total contribution would be ₱5,250 (15% of ₱35,000). The employer’s share would be ₱3,500, and the employee’s share would be ₱1,750. For MSCs above ₱20,000 up to the maximum of ₱35,000, contributions are also credited to the member’s individual account under the Mandatory Provident Fund (MPF), also known as MySSS Pension Booster.

Methods for Remitting SSS Contributions

Remitting SSS contributions involves specific processes and channels. Employers are required to register with the My.SSS facility online and use a Payment Reference Number (PRN) for all contribution payments. The PRN is generated via the My.SSS portal or the SSS Mobile App, allowing employers to review their Electronic Collection List (e-CL) before payment. Generally, employers must remit both their share and the employee’s share on or before the last day of the month following the applicable month. For example, contributions for January are due by the end of February.

Self-employed, voluntary, and OFW members need a My.SSS account to generate their PRN before making payments. They can choose their membership type, applicable period, and desired monthly contribution amount when generating the PRN. The payment deadline for these individual members is on or before the 10th day of the following month. OFWs have the flexibility to pay their monthly contributions in advance for several months or even a year.

Various payment channels are available for all member types, including online and over-the-counter facilities. Online payment can be made through the My.SSS portal, the SSS Mobile App, or accredited payment partners supporting e-wallets, credit/debit cards, and bank transfers. Over-the-counter payments can be made at SSS branches, accredited banks, and non-bank collecting partners. A PRN is essential for all payment transactions.

Addressing Unpaid SSS Contributions

Failure to remit SSS contributions can lead to penalties and affect benefit eligibility. Employers who fail to remit on time are subject to penalties, surcharges, or interest imposed by the SSS. The Social Security Act of 2018 includes provisions for non-remittance penalties.

For members, non-payment or missed contributions impact eligibility for SSS benefits like retirement pensions, sickness, maternity, or disability, as these are tied to contributions posted. While members are entitled to benefits even if an employer fails to remit, unposted contributions can delay or complicate availing them.

To rectify missed contributions, self-employed, voluntary, and OFW members can make voluntary payments for past periods. However, limitations on retroactive payments exist, and advance payments might require settlement of underpayments due to policy changes. Members should regularly check their My.SSS account for contribution records and address discrepancies promptly to secure benefits.