How to Compute Your SSS Contribution: An Ultimate Guide

Last Updated on 07/09/2020 by FilipiKnow

Confused about how to compute and pay your SSS contributions properly?

Wondering why—in this digital age—the entire process of remitting contribution can’t be fully online? Frustrated with the late posting of your payments when it’s supposed to be instant?

Those are the birth pains of the implementation of the new Social Security Law and an SSS program for the real-time posting of contributions.

While it’s difficult to adjust to big changes, you can arm yourself with knowledge so you won’t waste time and effort when dealing with your SSS contributions.

Here’s everything you need to know about computing your SSS contribution using the latest SSS contribution tables.

Related: SSS Online Registration Guide: 4 Easy Steps

 

Who can pay SSS contribution?

All employees, self-employed individuals, non-working spouse, and OFWs up to age 60 with an existing SSS number can pay their SSS contribution to begin or continue their coverage.

Covered members are entitled to social security benefits upon illness, unemployment, childbirth/miscarriage, disability, retirement, or death.

Related: How to Apply for SSS Unemployment Benefit: An Ultimate Guide

Unemployed Filipinos can pay contribution as a voluntary member only if they’re previously covered as an employed, self-employed, or OFW member with at least one-month posted contribution.

The SSS doesn’t allow paying the contribution for the first time as a voluntary member without being registered before as an employed, self-employed, or OFW member. Voluntary members can only pay the contribution to continue their SSS coverage after they get separated from employment.

 

Why pay your contribution regularly?

Especially if you’re on a limited budget, your monthly SSS contribution seems like an added expense. However, you’ll realize its value when you’re sick, injured, laid off, short of cash, or retiring.

Paying SSS contributions forces you to save for the future. While you’re still earning income, it’s good to build your financial safety net for retirement by paying SSS contribution consistently.

Also, the SSS uses the total number and total amount of paid contributions as the basis for granting and computing a member’s benefit.

To qualify for an SSS benefit or loan, members must meet these requirements:

• Salary loan – At least six posted monthly contributions for the last 12 months with at least 36 total 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 – At least one-month posted contribution before the semester of disability.
• Retirement benefit – At least 120 posted monthly contributions before the semester of retirement to receive a monthly pension.
• Death benefit – At least 36 posted monthly contributions before the semester of member’s death, for the beneficiaries to receive a monthly pension.
• Unemployment benefit – At least 36 posted monthly contributions, 12 months of which should be within the 18-month period before the month the member loses his/her job.

 

How to compute your monthly SSS contribution.

The amount that members remit to the SSS depends on two factors:

1. Membership type – Employed, kasambahay, self-employed, voluntary, non-working spouse, and OFW members have different contribution amounts. Contributions of employees, kasambahays, and certain OFWs are deducted from their monthly salary and remitted to the SSS (along with the employer’s share of contribution) by their respective employers. Others have to pay their entire contribution.
2. Monthly salary credit (MSC) – The Social Security Law defines the MSC as “the compensation base for contributions and benefits“¹. The SSS uses the MSC to compute the required contribution for members based on their monthly income. The higher your monthly earnings, the higher your MSC is. The higher your MSC, the higher your contribution becomes. On the SSS contribution table, you’ll find the MSC that corresponds to your income range.

 

The new SSS Contribution Schedule.

Before you begin computing your contribution, understand first the key changes to the SSS Contribution Schedule following the Social Security Act of 2018 implementation.

Starting in April 2019, the contribution rate has increased from 11% to 12% of the MSC and will continue to rise by 1% every other year until it reaches 15% by 2025.

The new law has also increased the maximum MSC from Php 16,000 to Php 20,000.

What do these changes mean? Obviously, you’re paying a higher monthly contribution now. But this will also increase your SSS benefits since they’re computed based on a higher MSC.

Ultimately, the SSS contribution hike will extend the SSS fund life, which raises your chance of receiving retirement benefits in the future.

 

Table 1: SSS Contributions of Employed, Self-Employed, Voluntary Member, and Non-Working Spouse.

(Note: The SSS contribution table above and the succeeding ones can be used only from April 2019 to the end of 2020, as the contribution rate will increase again in 2021 onwards. You can also download a PDF copy of the 2019 SSS contribution table here.)

a. How much should employees and employers contribute?

Of the 12% contribution rate, the employee pays 4% through monthly salary deductions, while the employer shoulders the remaining 8%.

Additionally, employers pay the monthly contribution for the Employees’ Compensation (EC) Program, which is Php 10 per employee earning below Php 14,750 or Php 30 per employee earning Php 14,750 and above).

Employers are required to remit all those contributions to the SSS on time.

For employers and employees, here’s how to determine the monthly contribution using the SSS contribution table:

1. On the leftmost column (“Range of Compensation”), find the salary bracket where the current monthly income falls and its corresponding MSC on the Monthly Salary Credit column. For example, employees earning Php 19,750 and above have an MSC of Php 20,000.

2a. If you’re an employer: Find your share of contribution for a particular employee on the ER column corresponding to the employee’s MSC. Per employee with an MSC of Php 20,000, you must pay Php 1,600 for the SSS contribution plus Php 30 for the EC contribution. The total amount to pay out of the pocket is Php 1,630.

2b. If you’re an employee: Find your monthly deduction for SSS contribution on the EE column corresponding to your MSC. If your MSC is Php 20,000, your employer should deduct Php 800 from your monthly salary.

3. To know the total monthly contribution, look for the amount on the rightmost column under “Total Contribution.” For an employee with an MSC of Php 20,000, the total monthly contribution is Php 2,430 (Php 800 employee’s share + Php 1,600 employer’s share + Php 30 EC contribution). This is the amount the employer must remit to the SSS, which is posted on the employee’s SSS account after payment.

Another way to compute the monthly contribution is to use this formula: MSC x Contribution Rate.

Again, let’s use the maximum MSC of Php 20,000 as an example.

Employee’s share: Php 20,000 x 0.04 (4% contribution rate) = Php 800

Employer’s share: Php 20,000 x 0.08 (8% contribution rate) = Php 1,600 (plus Php 30 for the EC contribution)

Total contribution: Php 800 + Php 1,600 + Php 30 = Php 2,430

b. How much should self-employed members contribute?

If you’re currently registered as self-employed, the monthly earnings you declared on your Form E-1 or the latest Form E-4 will be the basis for your MSC and monthly contribution.

Using the SSS contribution table (Table 1) above, here are the steps to figure out how much your monthly contribution is.

1. On the leftmost column (“Range of Compensation”), find the range where your declared monthly income falls.

2. Under “Self-Employed, Voluntary Member, and Non-Working Spouse,” find your corresponding MSC on the “Monthly Salary Credit” column. For example, if your declared income is in the range of Php 19,750 and above, your MSC is Php 20,000.

3. Next to your MSC, find your contribution amount on the “SS Contribution” column. With an MSC of Php 20,000, your monthly contribution is Php 2,400.

Or use this formula:

MSC x Contribution Rate = Monthly Contribution Amount

Let’s say your MSC is Php 20,000 and the contribution rate is 12% (for 2019 to 2020), here’s how to compute your contribution as a self-employed member:

Php 20,000 x 0.12 = Php 2,400

c. How much should voluntary members contribute?

It’s tricky to determine the SSS contribution of voluntary members because their income is not fixed.

As such, the SSS only requires people who are paying their first contribution as a voluntary member to choose any MSC from the contribution table, regardless of their last posted MSC (as a former employed/self-employed/OFW member).

Your choice of MSC as a voluntary paying member depends on how much you receive on a certain month. Practically speaking, you can pay only what you can afford per month.

Here’s how to determine your monthly contribution as a voluntary member using the contribution table:

1. Under “Self-Employed, Voluntary Member, and Non-Working Spouse,” select your preferred MSC on the “Monthly Salary Credit” column.

2. Take note of the amount next to your chosen MSC (on the “SS Contribution” column). For example, if you choose Php 5,000 as your MSC, your monthly contribution is Php 600.

d. How much should a non-working spouse contribute?

A non-working spouse’s monthly contribution is based on 50% of his/her working spouse’s MSC.

Use Table 1 above to find out your monthly contribution as a non-working spouse. Here’s how:

1. Determine your spouse’s MSC. On the leftmost column (“Range of Compensation”), find your spouse’s salary bracket. For example, if your husband’s income is in the range of Php 19,750 and above, his MSC is Php 20,000.

2. Divide your spouse’s MSC by half. If your husband’s MSC is Php 20,000, half of it is Php 10,000.

3. Under “Self-Employed, Voluntary Member, and Non-Working Spouse,” find your spouse’s 50% MSC on the “Monthly Salary Credit” column.

4. Take note of the amount next to your spouse’s 50% MSC (on the “SS Contribution” column). If 50% of your spouse’s MSC is Php 10,000, your monthly contribution is Php 1,200.

If 50% of your spouse’s MSC doesn’t correspond to any MSC in the SSS contribution table, base your contribution on the next higher MSC.

For example, if your spouse earns Php 3,500 per month, 50% of his/her MSC (Php 3,500) is Php 1,750 (which is below the minimum MSC of Php 2,000). The next higher MSC is Php 2,000. Therefore, your monthly contribution is Php 240.

 

Table 2: OFW Members.

Related: How to Get Overseas Employment Certificate (OEC) Through BM Online

a. How much should OFWs contribute?

The following OFWs share SSS contribution with their employers:

• Sea-based OFWs
• Land-based OFWs in countries where the Philippines has bilateral labor agreements:
  • Austria
  • Belgium
  • Canada
  • Denmark
  • France
  • Germany
  • Japan
  • Netherlands
  • Portugal
  • Spain
  • Switzerland
  • The U.K. and Northern Ireland

These OFWs pay 4% of their MSC, while employers contribute 8% of their worker’s MSC plus the monthly EC contribution of Php 10 per OFW earning below Php 14,750 or Php 30 per OFW earning Php 14,750 and above.

Under the Social Security Act of 2018, manning agencies are considered employers of sea-based OFWs. Thus, manning agencies should collect and remit sea-based OFWs’ contributions to the SSS.

On the other hand, land-based OFWs in countries without bilateral labor agreements should pay the full contribution on their own.

Here are the steps to compute OFW monthly contribution using the SSS contribution table:

i. For sea-based OFWs and land-based OFWs with a bilateral labor agreement.

1. On the leftmost column (“Range of Compensation”), find your salary bracket and its corresponding MSC on the Monthly Salary Credit column. For example, if you’re earning Php 19,750 or higher, your MSC is Php 20,000.

2. Find your employer’s share of contribution in the ER column corresponding to your MSC. If your MSC is Php 20,000, your employer’s share is Php 1,600 plus the Php 30 EC contribution for a total of Php 1,630.

3. Find your share of contribution in the EE column corresponding to your MSC. Taking the example above (MSC of Php 20,000), your employee’s share is Php 800.

4. Under “Total Contribution,” find your total monthly contribution on the rightmost column. If your MSC is Php 20,000, your total monthly contribution is Php 2,430 (Php 800 employee’s share + Php 1,600 employer’s share + Php 30 EC contribution). This is the total amount your employer must remit to the SSS, which is posted on your SSS account after payment.

Another way to compute the monthly contribution is to use this formula: MSC x Contribution Rate.

Again, let’s use the maximum MSC of Php 20,000 as an example.

Employee’s share: Php 20,000 x 0.04 (4% contribution rate) = Php 800

Employer’s share: Php 20,000 x 0.08 (8% contribution rate) = Php 1,600 (plus Php 30 for the EC contribution)

Total contribution: Php 800 + Php 1,600 + Php 30 = Php 2,430

ii. For land-based OFWs without a bilateral labor agreement.

1. On the leftmost column (“Range of Compensation”), find your salary bracket.

2. Under “Land-Based OFWs Without Bilateral Labor Agreement,” find your corresponding MSC on the “Monthly Salary Credit” column. For example, if your income is in the range of Php 19,750 and above, your MSC is Php 20,000.

3. Next to your MSC, find your contribution amount on the “SS Contribution” column. With an MSC of Php 20,000, your monthly contribution is Php 2,400.

Or use this formula:

MSC x Contribution Rate = Monthly Contribution Amount

Let’s say your MSC is Php 20,000 and the contribution rate is 12% (for 2019 to 2020). Here’s how to compute your full contribution:

Php 20,000 x 0.12 = Php 2,400

 

Table 3: Household Employers and Kasambahay.

a. How much should household employers and kasambahays contribute?

For house helpers with a monthly salary below Php 5,000, the Kasambahay Law requires household employers to pay the full monthly contribution.

However, kasambahays who receive Php 5,000 or higher have to share in their contribution payment (4% of their MSC), while their employer pays 8% of the MSC plus the EC contribution of Php 10 per worker earning below Php 14,750 or Php 30 per worker earning Php 14,750 and above.

Using the SSS contribution table for household employers and kasambahay, here’s how to compute your monthly contribution:

1. On the leftmost column (“Range of Compensation”), find the range where the current monthly income falls and its corresponding MSC on the Monthly Salary Credit column. For example, if the kasambahay‘s monthly salary is Php 3,500 (the current minimum wage in Metro Manila), his/her MSC is Php 3,500.

2a. If you’re a household employer: Find your share of contribution on the ER column corresponding to your kasambahay‘s MSC. Using the example above (MSC of Php 3,500), you must pay Php 420 for the SSS contribution plus Php 10 EC contribution for a total of Php 430.

2b. If you’re a kasambahay: Find your monthly deduction for SSS contribution on the EE column corresponding to your MSC. Taking the example above (MSC of Php 3,500), there should be no salary deduction for SSS contribution since your employer shoulders your entire contribution. But if you’re earning Php 5,000 monthly, for example, your employer should deduct Php 200 from your salary and remit it to the SSS along with your employer’s share.

3. To know the total monthly contribution, look for the amount on the rightmost column under “Total Contribution.” For example, if a kasambahay has an MSC of Php 5,000, the total monthly contribution is Php 610 (Php 200 employee’s share + Php 400 employer’s share + Php 10 EC contribution). This is the amount the employer must remit to the SSS, which is posted on the kasambahay‘s SSS account after payment.

Another way to compute the monthly contribution is to use this formula: MSC x Contribution Rate.

Again, let’s use the maximum MSC of Php 5,000 as an example.

Employee’s share: Php 5,000 x 0.04 (4% contribution rate) = Php 200

Employer’s share: Php 5,000 x 0.08 (8% contribution rate) = Php 400 (plus Php 10 for the EC contribution)

Total contribution: Php 200 + Php 400 + Php 10 = Php 610

 

Tips and Warnings.

1. Update your contact details with the SSS.

Updating the contact information in your SSS records allows you to receive not only a PRN every quarter but also notifications and reminders from the SSS. This helps you pay your contributions on time, so you can quickly avail of an SSS benefit or loan when you need it.

You have three options for updating your contact details: My.SSS portal, SSS mobile app, or over-the-counter at any SSS branch.

Related: How to Change, Correct, or Update Your SSS Membership Data

a. How to update your contact information via My.SSS.

1. Go to SSS Member Portal. Answer the captcha question and then click Submit. You have three portals to choose from. Select Member.
2. Log in to your My.SSS account.
3. Hover your cursor over the MEMBER INFO on the main menu. Click Update Contact Info.
4. Check the box/es corresponding to the contact info that you want to be changed/updated (see the screenshot above).
5. Click the Next button.
6. Review your edited contact info.
7. Click the Submit button.

b. How to update your contact information via the SSS mobile app.

1. Log in to your My.SSS account.
2. Tap the My Information icon > Update Information > Contact Details.
3. Edit your landline number, mobile number, and/or email address.
4. Tap the Submit button.

c. How to update your contact information at an SSS branch.

Fill out the Member Data Change Request Form (E-4) with your updated info.

Put a checkmark on the box next to “Updating of Contact Information” and the specific info for updating (Address/Telephone Number/Email Address/Mobile Number).

Submit your accomplished Form E-4 to any SSS branch. Or write down your new contact details when applying for a benefit, loan, or any other SSS program.

2. Always check if your records are correct and updated.

You may be paying your contributions regularly and on time but it doesn’t guarantee that you’ll get your benefits with no hassle.

Members with a discrepancy in their name, date of birth, civil status, gender, or list of dependents/beneficiaries often suffer from delays in the processing of their pensions or benefits. This could have been avoided had they updated their records with SSS the first time they discovered such discrepancy².

Therefore, its imperative that you submit the required forms and documents to change incorrect details in your personal data while you’re still not availing of any benefits. For example, a discrepancy in your date of birth may cause a significant delay in processing your pension as age is an important qualifying condition for retirement.

3. Pay your contribution during off-peak periods.

Expect to stand in long lines in an SSS branch on weekdays during lunch break, especially on the last day of the month when contribution payments are due.

At non-bank payment centers, queues can get long right after office hours and every 15th and 30th of the month, when people receive their salary and pay bills.

To avoid wasting time in long lines, pay contribution on an early weekday morning when fewer people are transacting, and you’re likely to be among the first in line.

4. Choose your payment channel wisely.

If you plan to avail of an SSS benefit or loan soon, it’s better to pay your contribution at an SSS branch since it will go directly to the system and will be processed faster. Your contribution may get posted within 24 hours. However, be ready to wait up to 3-4 hours in line when you visit the branch during a busy time.

Banks are not faring any better. Lines are perpetually long in major banks like BPI at any time of the day. Try your luck at a smaller bank like Security Bank where lines are usually short (or none at all), though you can pay only if you have a bank account there.

Lines are shorter at non-bank collecting partners, but posting can take longer. Choose this payment channel if you’re trying to save time, and when there’s no immediate need to apply for an SSS benefit or loan.

5. Consider making advance payments.

The SSS accepts advance contribution payments from all members (except for regular employers and employees) regardless of the number of months or years.

If you can afford it, like when you get a bonus or commission, pay your contribution in advance. This way, you won’t be tempted to spend your money on unnecessary expenses.

Another advantage of making advance payments is that you need only one PRN for the months or years you’ll pay ahead for. For example, if you’ll pay one year in advance, you’ll get a PRN and transact only once instead of getting 12 PRNs and transacting 12 times in a year.

However, if the SSS contribution rate increases again, your advance payments may result in underpayments. To avoid getting your advance contributions posted to a lower MSC, make sure to pay the difference immediately.

So you can pay in advance, edit your applicable period accordingly before generating a PRN on the My.SSS portal.

6. Always keep your payment receipts.

In case your paid contribution isn’t posted online, it helps to have your validated receipts ready to show proof of payment to the SSS and have the error corrected.

 

Frequently Asked Questions.

1. How and where can I pay my SSS contributions?

2. How can I view or check my SSS contributions?

3. Is paying SSS contribution mandatory?

4. Is PRN really required? Will my payment be accepted without it?

5. Should I get a new PRN each time I pay a contribution? Or is a PRN used in all payments?

6. Can expats pay SSS contribution?

7. Paying SSS contributions manually is such a big hassle! Can I pay through online banking instead?

8. As an OFW, can my family member in the Philippines pay contribution for me?

9. Should I convert to self-employed/voluntary/OFW/non-working spouse to start paying contribution on my own?

10. Can I change the amount of SSS contribution I’m paying?

11. Why is my latest payment not posted yet? What should I do?

12. How do I correct a wrong amount posted on my account?

13. I’ve stopped my SSS contribution payment. Can I continue paying now?

14. What happens if I miss a payment deadline? Can I pay for the previous month?

15. My employer is not paying my SSS contributions. What should I do?

16. When should I stop paying SSS contribution?

17. Can I withdraw my SSS contribution?

 

References.

1. Social Security System. Republic Act No. 11199, or the Social Security Act of 2018 (2018).
2. Ignacio, A. (2019). How to maximize SSS membership | Aurora C. Ignacio. Retrieved 3 July 2020, from https://businessmirror.com.ph/2019/10/02/how-to-maximize-sss-membership/